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My Blog
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Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.
The GSEs issued new guidelines Tuesday that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales. Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA). Addressing real estate practitioners No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions. The GSEs new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies traditional short sale programs or a completed Borrower Response Package (BRP) requesting short sale consideration, whether its through the federal governments Home Affordable Foreclosure Alternative (HAFA) program or a GSE program. If more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the BRP or offer was received.
Read the full story here.
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Perilous to Tinker with Home Ownership Programs, Voter Survey Finds A National Association of Home Builders survey has pinpointed one area where likely voters agree: home ownership and many of the programs that support it are important enough to affect elections.
No matter how you slice the political pie, about 70% of voters say a Congressional candidate who wanted to eliminate the home mortgage interest deduction likely wouldnt get their vote.
NAHB earlier this year asked 1,500 people whether theyd be more likely or less likely to vote for a candidate who opposed the mortgage interest deduction:
67% of Tea Party supporters said theyd be less likely to vote for that candidate.
70% of Tea Party opponents would be less likely to vote for that candidate.
69% of independents, 68% of Democrats, and 68% of Republicans would be less likely to vote for that candidate.
The poll uncovered other surprising nuggets:
Even people whose homes have lost value think home ownership is worthwhile. An incredible 84% of those who owe more on their mortgage than their home is worth say theyre happy with their decision to own a home, and 69% of them would tell a close friend or family member just starting out to buy a home.
A majority of likely voters wants the federal government to continue to doing what it can to make home loans available and affordable especially if discontinuing federal support would mean higher mortgage interest rates for consumers.
60% of voters think dealing with mortgage and foreclosure issues is key to stabilizing the economy, including 57% of Republicans and 66% of Democrats.
58% of voters say stabilizing and restoring the nations housing market should be an absolute high priority for the federal government.
With the 2012 election season in full swing, candidates running for the White House and Congress would be wise to heed the will of the American voters, who have expressed broad support for government policies that encourage home ownership and oppose efforts to make it more difficult to get a home loan and to tamper with the mortgage interest deduction, said Celinda Lake, president of Lake Research Partners, a Democratic polling firm that conducted the survey with Republican polling firm Public Opinion Strategies.
Source: Dona DeZube, Houselogic.com
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The Michigan Association of REALTORS® is partnering with the Michigan State Housing Development Authority (MSHDA) on the Step Forward campaign to prevent home foreclosure. MSHDA has more than $500 million available in the Helping Hardest Hit Homeowners fund, and we are working together to preserve the dream of homeownership in Michigan. Please join us! Spread the word that at-risk homeowners can learn more about this valuable program at MSHDAs Web site, www.stepforwardmichigan.org
Source Michigan Association of Realtors
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Neighborhoods, cities, regions and states across America are taking notice of how important "place" is in the economic development equation.
Michigan is no exception.
To revitalize Michigan we must examine our state through a new lens, taking into account the types of places where New Economy workers, entrepreneurs and businesses want to locate, invest and expand.
This approach is commonly described as a "sense of place" or just "placemaking." Its a simple concept really, based on a single principle -- talented and young people settle in places that offer the amenities, social and professional networks, resources and opportunities to support thriving lifestyles. Michigan can attract and retain talent-based workers by focusing on how best to utilize our regional communities' unique placemaking assets such as squares, plazas, parks, streets, green spaces and waterfronts.
Our job begins by working together to build and maintain quality places in each region of Michigan that will reinvent our state for the 21st century.
Dont just take our word for it. Ask Cynthia Kay, founder of a high-definition media production and communications consulting company.
Kays six-person firms clients include multinationals like Herman Miller, Amway Global, Siemens Industry, Novartis, Wiley Publishing, as well as educational institutions like Michigan State University, Grand Valley State University and Hope College.
She could have opened her state-of-the-art shop anywhere. Kay chose Grand Rapids because of her belief that a vibrant community is vital to success -- not just to her corporate bottom line but to the quality of life her family, employees and neighbors proudly enjoy.
"Our downtown is a place where people want to be," she says. "Youll find students, young professionals, entrepreneurs and corporate types out and about networking and socializing, in cafes, restaurants and parks. We get to rub shoulders, rub ideas together, and the magic that results is good for business.
"And the arts scene in Grand Rapids is a big part of it all. From museums to Art Prize, its an energizing environment where things can and do happen. When youre a part of a community like this, you want to become a part of it and give back -- thats why we donate our services to many nonprofits. Its part of the cycle that brings people and ideas together."
The Small Business Association of Michigan (SBAM) and the Michigan State Housing Development Authority (MSHDA) share Cynthia Kays belief: placemaking matters.
Together, we are helping Michigans state and local governments eliminate barriers to placemaking, leverage private investment, promote diverse housing choices and mixed-use development, spur alternative transportation, embrace cultural activities and cultivate green spaces. The best thinking about successful communities and regions points to one conclusion. Creating vibrant, attractive public spaces is not just a winning economic strategy. Placemaking is picture-perfect for Michigans return to prosperity.
Learn more about Michigan placemaking at the new, groundbreaking site miplace.org which will be unveiled at the Communities Conference April 23-25.
Source - MetroMode
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The upfront insurance premium charged on FHA-insured mortgages for home purchases will increase from 1 percent to 1.75 percent on April 9, and the annual FHA mortgage insurance premiums will rise by one-tenth of a percentage point. The cost of a $200,000 FHA mortgage will rise by about $24 a month, assuming the borrower includes the upfront charge in the amount financed through a 30-year mortgage; a fee increase for jumbo loans and some 15-year loans will be added June 11. The fourth fee increase in the last three years should boost the FHA's reserves by more than $1 billion through 2013, according to HUD. Source National Association of Realtors
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Matthew and Carina Hensley offered $10,000 more than the asking price for a three-bedroom house in suburban Seattle, then lost out to one of seven other bidders. Their $270,000 proposal last month came with a family portrait and a letter introducing the couple, their eight-month- old daughter, Harper, and their desire to build a family in the Renton, Washington, house with a yard backing onto a woody hillside.
Bidding wars, absent from most parts of the U.S. residential market since its peak in 2006, are erupting from Seattle and Silicon Valley to Miami and Washington, D.C. The inventory of homes hovers close to a six-year low, while an increase in jobs and record affordability are tempting more buyers. The number of contracts to buy previously owned homes jumped 14 percent in February from a year earlier, the National Association of Realtors reported yesterday.
Read the full story here.
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Investors are making it a practice to endure through obstacles that come with the discounted price of short sales and pursued them at a greater pace in February compared to previous months, according to the latest results of the monthly Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.
The percentage of investors buying homes climbed from 20.9 percent of all transactions in September 2011 to 24.2 percent of all transactions in February 2012, according to the survey. The investor share of short sales also rose, going from 25.9 percent to 30.6 percent during the same six-month period. In contrast, the number of short sale purchases from homeowners has waned since September. This trend is largely driven by long-approval times from mortgage servicers and unpredictable closing dates, according to the survey. The share of distressed properties in the market climbed with distressed homes as represented by the HousingPulse Distressed Property Index (DPI) reaching a near-record of 48.7 percent when using a three-month moving average. The reported figure was the second highest level ever recorded by HousingPulse and the 25th consecutive month that the DPI hovered above 40 percent. The proportion of short sale transactions has also increased, and over the past six months the number has climbed from 17 percent to 19.8 percent, according to the survey. Cash-for-keys is one factor that makes short sales more attractive to homeowners, with cash payments often at $3,000 or 1 percent of the homes value, according to the survey. One Virginia-based agent surveyed said, Approximately one-third of my short sale transactions are qualified for the cash for keys program. Another agent in California surveyed said, Short sales are definitely motivated by cash for keys. Typically they are receiving $3,000-5,000 on homes between $300k to $500k. I have seen $15,000 on $1 million homes. The survey includes about 2,500 real estate agents nationwide each month and provides up-to-date intelligence on home sales and mortgage usage patterns.
Source DS News
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Today, the Michigan Senate voted 38-0 in support of legislation providing a fair process when it comes to their property taxes.
Senate Bill 349, sponsored by Senator Dave Hildenbrand (R-Lowell) creates two Principal Residence Exemption (PRE) filing dates; one on June 1st, and the other on November 1st. Additionally, this legislation allows bank-owned properties to retain their PRE so that buyers can qualify at the lower rate of taxation. This is particularly important since foreclosures have flooded the market in recent years.
Senate Bill 349 now heads over to the House for consideration. The MAR greatly appreciates the hard work that was put forth in crafting this legislation, and is pleased that Senators on both sides of the aisle unanimously supported its passage. The MAR will continue to keep the membership updated as this bill makes its way through the legislative process. Provided Courtesy of the Michigan Association of Realtors
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If you're waiting for home prices to go up, then you're missing signs the troubled housing market has finally turned around.
FORTUNE Over the past few months, many economists have concluded that that the U.S. housing market has reached a turning point and is healing. This may sound hard to believe, since home prices have continued their downward trend. In 2011, prices fell by 4% following nearly a 30% decline since the property bubble paeked in June 2006. They ended the year at a 10-year low. Indeed, prices aren't likely going to rise for a while. But this might not necessarily mean the housing market isn't on the mend. Perhaps we're looking at the recovery all wrong, says Paul Dales at Capital Economics. In a report to clients recently, the economist said higher prices won't be the sign that tells us there's a real recovery under way. Rather, the recent pick-up in sales is what we should pay attention to. After all, prices tend to be a lagging indicator. It could take six months for any improvements to show in the market, if not longer.
Read the full story here.
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In a region where unemployment hovers around 10.1 percent and some industries are still struggling, the restaurant business seems to be on an upswing. More than a dozen high-profile restaurants from modest diners to upscale venues that are a throwback to more prosperous times in Detroit have opened in the past few months and at least 20 more are slated to open in 2012.
Read the full story here.
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