Sept. 1 (Bloomberg) -- The number of contracts to buy previously owned homes rose more than forecast in July and increased for a record sixth consecutive month, reinforcing signs that the housing market is steadying.
The index of signed purchase agreements, or pending home sales, gained 3.2 percent after a 3.6 percent rise in June, the National Association of Realtors said today in Washington. The index level of 97.6 was the highest since June 2007. Compared with July 2008, pending sales climbed 13 percent.
The rest of the article can be read at Bloomberg.
Wednesday, September 2, 2009
Monday, August 31, 2009
How to Increase Your Gross Commission Income
There are only three ways to increase your gross commission income.
1. Increase the number of units you sell.
2. Increase the sale price of the units you sell.
3. Increase the fees that you charge.
Read the rest of the story at Realty Times.
Tuesday, August 4, 2009
SHORT SALE VS FORECLOSURE: WHICH IS BETTER?
Losing a home to foreclosure can be one of the most difficult things a homeowner can ever have to face and the decision on what options the homeowner should take should be examined very carefully.
As 1.8 million more people approach the dreaded default on their mortgage, the question many will face is; what are the consequences of a Foreclosure versus a Short Sale?
The first thing homeowner’s think of when considering the benefits of one over the other is the impact to their FICO score. Contrary to popular belief, a homeowners FICO score takes a similar hit with a Short Sale as it would if the property was foreclosed. However the major difference between Short Sale and Foreclosure is the ability to obtain a loan to repurchase a home in the future.
The effect of a Short Sale versus Foreclosure will in many cases determine how soon in the future a home buyer can purchase another home. According to Fannie Mae Guidelines, there is a minimum of 5 years before a homeowner is able to qualify for a mortgage and only on a primary residence after foreclosure. With a short sale, a homeowner can qualify for a new loan in as few as 2 years under the same guidelines.
Because Fannie Mae is one of the largest purchasers of mortgages in the secondary mortgage market they are also the standard to which most banks and financial institutions abide by. We have listed below the most recent guidelines issued by Fannie Mae and also included a link to their report showing the exact guidelines in detail.
www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf
FANNIE MAE (FNMA) GUIDELINES
Fannie Mae Guidelines changes as of June 25, 2008 with Announcement 08-16.
Foreclosure:
· 5 years time period from foreclosure completion date.
· Minimum of 10% down & 680 credit score until 7 years after completion date.
· Principal residences only, no second homes or investment property loans for 7 years.
· 3 year exception for extenuating circumstances.
Short Sale:
· Requires a 2 year waiting period after the sale, with acceptable re-established credit.
· No other requirements necessary
Deed-in-Lieu:
· Minimum waiting period of 4 years.
· Minimum of 10% down required for 7 years.
· 2 year exception for extenuating circumstances.
Bankruptcy:
· Chapter 7 requires a 4 year waiting period, but there is a 2 year exception for extenuating circumstances.
· Chapter 13 is 2 years from discharge date or 4 years if the Chapter 13 is dismissed (not completed).
As 1.8 million more people approach the dreaded default on their mortgage, the question many will face is; what are the consequences of a Foreclosure versus a Short Sale?
The first thing homeowner’s think of when considering the benefits of one over the other is the impact to their FICO score. Contrary to popular belief, a homeowners FICO score takes a similar hit with a Short Sale as it would if the property was foreclosed. However the major difference between Short Sale and Foreclosure is the ability to obtain a loan to repurchase a home in the future.
Why Short Sale Is the Best Option
The effect of a Short Sale versus Foreclosure will in many cases determine how soon in the future a home buyer can purchase another home. According to Fannie Mae Guidelines, there is a minimum of 5 years before a homeowner is able to qualify for a mortgage and only on a primary residence after foreclosure. With a short sale, a homeowner can qualify for a new loan in as few as 2 years under the same guidelines.
Because Fannie Mae is one of the largest purchasers of mortgages in the secondary mortgage market they are also the standard to which most banks and financial institutions abide by. We have listed below the most recent guidelines issued by Fannie Mae and also included a link to their report showing the exact guidelines in detail.
www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf
FANNIE MAE (FNMA) GUIDELINES
Fannie Mae Guidelines changes as of June 25, 2008 with Announcement 08-16.
Foreclosure:
· 5 years time period from foreclosure completion date.
· Minimum of 10% down & 680 credit score until 7 years after completion date.
· Principal residences only, no second homes or investment property loans for 7 years.
· 3 year exception for extenuating circumstances.
Short Sale:
· Requires a 2 year waiting period after the sale, with acceptable re-established credit.
· No other requirements necessary
Deed-in-Lieu:
· Minimum waiting period of 4 years.
· Minimum of 10% down required for 7 years.
· 2 year exception for extenuating circumstances.
Bankruptcy:
· Chapter 7 requires a 4 year waiting period, but there is a 2 year exception for extenuating circumstances.
· Chapter 13 is 2 years from discharge date or 4 years if the Chapter 13 is dismissed (not completed).
Thursday, July 23, 2009
WORST L.A. ZIP CODES
Greatest Home Value Falls Since 2008
1. East Los Angeles (90022)-44.3%
2. Los Angeles/August F. Saw (90059)- 46.7%
3. Lancaster (93534)- 47.7%
4. Los Angeles/Boyle Heights (90033)- 47.8%
5. Beverly Hills (90212)- 47.9%
6. Compton (90220)- 48.2%
7. Pasadena (91106)- 48.6%
8. Hawaiian Gardens (90716)- 50.1%
9. Santa Monica (90402)- 50.6%
10. Maywood (90270)- 51.8%
11. Inglewood (90302)- 53.1%
12. Long Beach (90802)- 53.4%
13. Little Rock (93543)- 54.5%
14. Los Angeles/City of Commerce (90040)- 56.9%
15. Beverly Hills (90210)- 57.1%
16. Palmdale (93591)- 57.5%
17. Los Angeles/Firestone PK (90001)- 59.0%
18. Los Angeles (90004)- 59.7%
19. Llano (93534)- 60.5%
20. Malibu (90265) -73.9%
1. East Los Angeles (90022)-44.3%
2. Los Angeles/August F. Saw (90059)- 46.7%
3. Lancaster (93534)- 47.7%
4. Los Angeles/Boyle Heights (90033)- 47.8%
5. Beverly Hills (90212)- 47.9%
6. Compton (90220)- 48.2%
7. Pasadena (91106)- 48.6%
8. Hawaiian Gardens (90716)- 50.1%
9. Santa Monica (90402)- 50.6%
10. Maywood (90270)- 51.8%
11. Inglewood (90302)- 53.1%
12. Long Beach (90802)- 53.4%
13. Little Rock (93543)- 54.5%
14. Los Angeles/City of Commerce (90040)- 56.9%
15. Beverly Hills (90210)- 57.1%
16. Palmdale (93591)- 57.5%
17. Los Angeles/Firestone PK (90001)- 59.0%
18. Los Angeles (90004)- 59.7%
19. Llano (93534)- 60.5%
20. Malibu (90265) -73.9%
FORECLOSURE RATE LIKELY TO INCREASE AS THE FEDERAL RESERVE RAISE THE UNEMPLOYMENT FORECAST ONCE AGAIN
Federal Reserve policymakers are projecting the unemployment rate to hit the 10.1 percent mark by 2010. That’s an increase from their latest projections in April. The fed predicted the unemployment rate will reach between 9.2 and 9.8 percent by the fourth quarter of 2009. However, what is alarming is that in June, the actual rate had already reached 9.5 percent, causing many officials to raise their forecast. Even Vice President Joe Biden and the rest of the Obama Administration admit to have “misread how the bad the economy was” and that a 9.5 percent unemployment rate “is much too high.” Some Fed officials had the forecast going as high as 10.6 percent by next year.
In a recent conference with the UCLA Anderson Forecast, the L.A. Times reports the jobless rate will reach 10.5 percent next year and an astonishing 11.9 percent in California by the middle of 2010. The nation has not seen this high of an unemployment rate in 26 years, when it hit 10.8 percent at the end of 1982.
Federal Reserve officials did predict the economy to shrink between 1 and 1.5 percent, an improvement from their latest predictions of 1.3 and 2 percent downfall. However, that just means that it will take longer for the economy to recuperate. The fed reported that although unemployment will continue to soar within the next two years, the economy on the other hand will begin to improve very slowly by the end of this year. In fact, it won’t fully recover for about five or six more years according to officials.
Many predict the same for Real Estate financials. The recovery of credit markets and banking institutions will improve gradually. The rate of the recovery will be sluggish until the end of 2010 and begin to see growth by 2011.
What does this all mean for homeowners? Well if more people are going to be out of a job that means more homeowners won’t be able to afford their payments. The Obama Administration launched a program in March that assisted nine million homeowners to avoid foreclosure by refinance or loan modification, lowering their monthly payments. However, even if payments are lowered, without a job nobody will be able to make any payments.
Even though the real estate market saw an increase of sales, 51.1 percent of those sales were foreclosures. In fact, between 1.5 and 1.8 million homeowners fell behind in their loans and were threatened to losing their homes this year. Almost four percent of homeowners are in foreclosure nationwide. California accounts for a stunning 135,431 homeowners with notices of default in the first quarter, an increase of 11% from the earlier peak in the second quarter of 2008, according to real estate information service MDA DataQuick.
In a recent AP analysis, the relationship between rising unemployment and foreclosures is growing, more than 3,100 U.S. counties found a much stronger link between foreclosure rates and unemployment this year than in 2007. The highest unemployment rates are seen in the state of California, cities like Merced, Modesto and Fresno.
In a recent conference with the UCLA Anderson Forecast, the L.A. Times reports the jobless rate will reach 10.5 percent next year and an astonishing 11.9 percent in California by the middle of 2010. The nation has not seen this high of an unemployment rate in 26 years, when it hit 10.8 percent at the end of 1982.
Federal Reserve officials did predict the economy to shrink between 1 and 1.5 percent, an improvement from their latest predictions of 1.3 and 2 percent downfall. However, that just means that it will take longer for the economy to recuperate. The fed reported that although unemployment will continue to soar within the next two years, the economy on the other hand will begin to improve very slowly by the end of this year. In fact, it won’t fully recover for about five or six more years according to officials.
Many predict the same for Real Estate financials. The recovery of credit markets and banking institutions will improve gradually. The rate of the recovery will be sluggish until the end of 2010 and begin to see growth by 2011.
What does this all mean for homeowners? Well if more people are going to be out of a job that means more homeowners won’t be able to afford their payments. The Obama Administration launched a program in March that assisted nine million homeowners to avoid foreclosure by refinance or loan modification, lowering their monthly payments. However, even if payments are lowered, without a job nobody will be able to make any payments.
Even though the real estate market saw an increase of sales, 51.1 percent of those sales were foreclosures. In fact, between 1.5 and 1.8 million homeowners fell behind in their loans and were threatened to losing their homes this year. Almost four percent of homeowners are in foreclosure nationwide. California accounts for a stunning 135,431 homeowners with notices of default in the first quarter, an increase of 11% from the earlier peak in the second quarter of 2008, according to real estate information service MDA DataQuick.
In a recent AP analysis, the relationship between rising unemployment and foreclosures is growing, more than 3,100 U.S. counties found a much stronger link between foreclosure rates and unemployment this year than in 2007. The highest unemployment rates are seen in the state of California, cities like Merced, Modesto and Fresno.
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