Housing trend for 2011 highlights Housing News

The consumer outlook for U.S. home prices improved again in January, extending a recent upward trend in housing market sentiment, according to mortgage market firm Fannie Mae.
For its monthly reading, Fannie Mae said respondents in its January survey predicted home prices will rise by 1% over the next year, up from the 0.8% gain forecast in December. To read full article http://blogs.wsj.com/developments/2012/02/07/fannie-mae-outlook-for-home-prices-rises-again/#

Will we be able to refinance out of high interest rate mortgages, and secure a lower payment? This is the latest and greatest.

President Obama on Wednesday announced a string of proposals aimed at helping to rejuvenate the sagging housing market, including one plan that would allow responsible homeowners to take advantage of historically low interest rates. Click to read full article

Obama pushes plan to help homeowners with underwater mortgages - TheHill.com

Planning to retire in 2012? You could be starting off at a disadvantage – financially, at least – if you live in one of these 10 states.

TopRetirements.com, a guide to retirement destinations and communities, recently published its list of the 10 worst states for retirement, looking primarily at financial considerations. In specific, the site evaluated each state in terms of its fiscal health, property taxes, state income taxes and cost of living. (The survey also included climate as a yardstick, under the assumption that most retirees “have a bias toward places with warmer winters.”)

The 30-year fixed-rate mortgage averaged 3.98% for the week ended Thursday, up from 3.88% the previous week, though below 4.8% a year ago. Rates on 15-year fixed-rate mortgages averaged 3.24%, up from 3.17% last week and below 4.09% a year earlier. Click to read full article-

http://blogs.wsj.com/developments/2012/01/26/mortgage-rates-rise-on-stronger-housing-reports/#

Per WSJ dated 1/19/2011--There were fewer homes listed for sale at the end of 2011 than in any of the previous four years, a positive sign for the housing sector.......Still, some real-estate agents aren’t celebrating because there’s a large backlog of potential foreclosures that haven’t yet been taken back and listed by banks. The inventory declines are particularly pronounced in certain states where banks have sharply slowed down foreclosures to correct document-handling abuses.
Read Full article http://blogs.wsj.com/developments/2012/01/19/housing-inventory-ends-year-down-22/#

Congressional Democrats are expected to continue pushing a federal housing regulator to write down mortgage principal for government-backed loans if a settlement with banks doesn't help out enough homeowners.
The federal government is "very close" to an agreement with mortgage servicers that could help about a million homeowners, Housing and Urban Development Secretary Shaun Donovan said this week.
The deal, which also includes states' attorneys general, would require the nation's five largest banks — Bank of America, JPMorgan Chase, Citigroup, Wells Fargo and Ally Financial — to spend upward of $25 billion to help borrowers caught up in so-called robo-signing practices where servicers signed-off on foreclosure paperwork without properly reviewing documents. ... to read more click link below

Dems push Fannie, Freddie regulator on mortgage write-downs - The Hill's On The Money

Starting soon, nearly all home buyers and refinancing households throughout the nation will pay higher mortgage loan fees. Congress has made it law.
13 months ago, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress enacted a one-year cut to FICA payroll taxes.
FICA stands for Federal Insurance Contributions Act. Taxes collected under FICA fund such programs as Social Security and Medicare.
The stimulus plan temporarily lowered tax rates for salaried workers from 6.2% to 4.2%; and for self-employed persons from 12.4% to 10.4%. Effective January 1, 2012, “regular” tax rates were to return.
That is, until late-December 2011. In one of its last moves of the year, Congress passed a temporary, two-month extension to the payroll tax cut, extending it through February 29, 2012. The expected cost to the U.S. Treasury is $33 billion.
To recoup those costs, Congress has turned to Fannie Mae, Freddie Mac and the FHA.
Each entity has been ordered to collect news fees on each new mortgage is backs, and has been told to forward said fees to U.S. Treasury directly. There’s no “workaround” allowed or forgiveness applied — each new loan is subject to the payment.
The rules are listed on page 17 of the law’s final draft, in a section unambiguously titled “Title IV — Mortgage Fees and Premiums”.
According to the law :
Fannie Mae and Freddie Mac must collect an average fee of no less than 10 basis points (0.1%) per new loan
The FHA must raise its monthly mortgage insurance premiums 10 basis points for all new loans
The expected cost to consumers is no less than $10 monthly per $100,000 borrowed. Some analysts, however, expect Fannie Mae and Freddie Mac to collect more than is minimally required. This could add an additional $30-50 to your monthly mortgage payment per $100,000 borrowed.
Therefore, if you’ve been shopping for a home or for mortgage rates, take advantage. Within days, lenders are expected to start collecting Payroll Tax Extension fees from mortgage applicants — a move that will cost you money.
Lock today to avoid the big fees. Save yourself money.

No matter what life brings- we all need to remember one thing- no matter if you are buying a home, selling a house, or working as the professional in the transaction we must stay positive. Our market has the best price with historical interest rates, you can't ask for more then that. If you remember the cliche"Good things don't come Easy" then your outlook will change and at the end we can all agree IT WAS WORTH IT.

I think we all tell ourselves once in our lives - "If only I could make a little more money , I would be happier" Professors from Princeton University have found an income that shows participants happier. In the study it was found that there is a number where people had an increase in day-to day happiness and less stress. That magic number appeared to be $75,000 a year in income. That income created a lower stress factor and making money was no longer a large issue in day-to- day life. So, would more money make one even more happier- NO- happiness did not increase at income levels more than $75,000. It shows that it leveled off, so more money does not equal more happiness. Instead of making your goals unachievable, why not obtain what is achievable and have happiness along the way?

Wrapping Up 2011 YOU Magazine - December 2011

You may have heard that President Obama plans to open up refinancing to more homeowners who are underwater . If you are wondering what this means...and if you can benefit...here are some facts to consider. To read more click Great News for Underwater Homeowners

Job Hunting Dos and Don'ts

We all job search in different manners. Here are a few tips to help you.

FHA has decided to lower their loan limits. This is critical for those of us that are looking to buy a home with a lower down payment at a higher sales price. The new loan limit of Clark county, Nevada is $287,500. So, what? Well one of my clients wanted to utilize this great opportunity and purchase a home at $350,000, he told me today his dreams have been destroyed because now he can not buy in the neighborhood he desires. He tells me he only has two option: to save more money for the down payment to go Conventional financing or to lower his purchase price and look in a different neighborhood. I state no that is not true... everyone in the purchasing pool above the $287,500 needs to know this great secret. Conventional loan products NOW offered can be equivalently to the FHA loan product. I made this clients day and now he is back looking.

Please take time to take a look at a life changing short video.
Four Assumptions. Click on my name now: Sheila

FHA Loan Limits to change.....Success Stories

Stop Paying Your Landlord's Mortgage!

Credit Scores: Why Should I Care?

WOW... Financing Specials that show Las Vegas is coming back. Portfolio products to rave about.

• 100% Financing
• BUY 1 year out of Bankruptcy
• BUY 1 year out of Short Sale

Products are available to those who qualify, so contact me for more information.

The Road to TOTAL Recovery along one. Total recovery meaning back to those unbelievable values that were unrealistic to begin with. According to CNN Money the homes in Vegas will not reach there pre-recession values til 2032. That does not mean the market will not recover, it means we will not see super quick inflation. A client bought his house in 2002 at $200,000 and in 2006 his appraisal was well over $700,000. That created false expectations that our home prices would continue to rise at unhistorical rates. Normal inflation is about 1-3% yearly. Vegas was lucky to see homes triple in value overnight and one can not expect that to happen for decades. Why would it or why should it? Who really knows what is in store for Vegas we are still the fast growing and most entertaining city there is.

What is the point of APR?
The point of calculating APR is to let the consumer know the actual cost of financing...read more... Annual Percentage Rate

Let me give you the gift of saving money.... please read more by clicking on Gift .

An important link of information.... Why not own? Click link: Stop Paying Your Landlord's Mortgage!

Hello- FHA mortgage insurance changing....please click on FHA CHANGES for more info...FHA CHANGES

The economy has sure thrown us all for a loop this year, how many have had your credit impacted and want to know what can or can not be done. Credit is all we talk about these days, so look at the video and see the top 10 myths of what people say and do. Click on my name to see a short video- Sheila

Choosing a loan can be simple- you need to ask yourself what is my 5, 15 or 30 year plan? Am I going to live here for a few years, is my family size going to grow or decrease, am I retiring, or unsure what your going to be doing. One thing is for sure banks are scared of getting burned with crazy mortgage options, but choices are still available with a conservative approach.

• If you know you will be moving in less than 5 years- a 5/1ARM would still be your best option. This loan is fixed for the first 5 years but will jump if you don't sell by the 5th year. This loan is still a risk in a shaky market so have a cash cushion just in case.
• If you want to build equity faster and may be retiring- a 15 year fixed rate loan is your best option. Not only do you get a break in the interest rate but you save big in long run. You can save an estimated $177,000 on a loan of $300,000.
• If you have little down and uncertain of future plans - a 30 year fixed rate loan is the best option.. these loans allow you to pay a comfortable mortgage payment and allow lower down payments- FHA loan allows borrowers to put down as little as 3.5%. This loan currently is the most popular option.

So as your shopping for your loan ask for a comparison of what your options are and discuss what is right for you. Be educated and make a choice that fits your mortgage needs.

Throw 2

Watch this ... wow we thought the banks were still winning- here is the proof....Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

Is the Market REALLY in repair...End of January Report Indicates:

11,406 Homes currently available on the Market -
39% are non distressed owners, 17% are REO, and 44% are Short Sales

10,917 Homes are in Contingent Status - 78.5% are Short sales- will these change into to Foreclosures- let's hope not.

Will the market change, let's hope all sales are approved and close- maybe with the current numbers, the banks will be opt to release more homes on the market . Creating more inventory and some options. Recovery TRUE OR FALSE? (you decide)

Weeks before the FTHB tax credit expires, FHA is making some changes.On April 5th , FHA will increase the up-front mortgage insurance by 0.50%. All though the up-front mortgage insurance is financed into the loan- it can add an extra $965 to your loan amount. The Spring also warrants a change in seller concessions. The amount now a seller is allowed to contribute to buyers closing cost is 6% and that will change to 3%- creating more money out of pocket for buyer. If a buyer buys a house at $100,000 they will get $3000 instead of the $6000- so buyers will have to come up with the extra cost.Buyers the only way to avoid the changes is to buy now and have a mortgage application submitted by the last week in March.

I have been saying to everyone that the market in Las Vegas is booming... here are the comparison numbers from October and November 2005 compared to present:

2005 October - Sales Volume = 2,574
2005 November - Sales Volume = 2,441

2009 October - Sales Volume = 3,535
2009 November - sales Volume = 3,117

We are selling more homes in Vegas than the real estate boom... get your share of the pie.

According to reports by Applied Analysis the current real estate market looks like such:
Homes available are at a low of 11372 and 39% of sellers are non distressed owners.
Homes that have contracts and are waiting to clear the contingency are at an all time high of 11033 with 74% being short sales probably awaiting approval from the banks.
The market seems to rebounding back but will the short sales be approved or will they be place back on the market as bank owned. This market makes for interesting conversation. How many cities can say sales are up and inventory is down.. let's see if it is a phase or are we getting back on track.
It is a good time to buy, prices are great, interest rates are low and you get a tax credit. Don't pass up this opportunity, the market appears to be changing. call me to get your maximum buying power.

Fannie Mae will allow homeowners lease back their homes and stay in them for a year or more.

The "DEED for Lease" Program will let borrowers transfer their homes to Fannie Mae in exchange for a lease. The borrowers will be expected to pay market rents, which will be lower than the current mortgage in most cases. These borrowers will be the ones who don't qualify for loan modification and wish to remain in the home.

Borrowers will have to provide decline of loan modification, proof they can afford to pay the rent, and willing and able to move out when lease is not renewed.

This will definitely help stabilize the housing market!

Primaries in early November.- may be the reason that the extension has not be announced. Hopefully we will hear something in the next couple of weeks.If someone hasn't identified a house by now, closing by Nov 30th will be a difficult task. If I had to guess I'd say June 2010 extension, $8k for ALL buyers (except investors) JUST MY LOGIC!! Again, I also think there will be some legislators running for goodwill just prior to the primaries so we'll see if and what they say. . .

Meeting with clients today, feeling like everyone has the same uncertainty about the real estate market. The prices are great and the interest rates are low. Why not buy? If you don't own you are paying someones mortgage.Why not pay your own? Think about it, if you are going to pay the same as you would to rent, what are you waiting for? Uncertain or have questions contact me- professional advice always free....

The $8000 tax credit is shortly coming to an end. There is still plenty of time to close your home and take advantage of this great opportunity.
Are you in the military- this may be extended for you:
HR 3590 will allow eligible military personnel and foreign service and intelligence officers to apply for the $8,000 tax credit for one year beyond its current November 30 deadline. Those meeting the underlying requirements for the credit must also be serving overseas or have spent at least 90 days deployed outside of the country during the current calendar year. It is expected that about 350,000 military personnel and an unknown number of federal employees may be affected by the new law.
This is more than like to pass through the Senate...

Pending sales rose once again for the seventh consecutive month across the United States. The NAR states that the contracts signed and placed in off market status was up 6.4 percent to 103.8, the longest month to month gain since 2001. Most were expecting a rise in home sales but it was estimated to be not more than 1 percent. This is definitely showing a steady amount of home buyers returning to the market and newcomers joining homeownership.

Las Vegas set a record in June of home sales- at a record of 4,702 properties sold. Wow!
In addition to that great news the median price of single-family homes sold in June was $140,000 which was the same in May. So we did not have a decrease in value. This is showing signs we are on the way to recovery. Yes, to all you skeptics out there.. we do have a wave of foreclosures that need to be released....but we are currently in a BOOM!!!

Refinancing Options for Most:

Do you have a FHA Mortgage- then you can refinance with out an appraisal, with low documentation. Refinance only if you save a point or more.

Do you have a Conventional Mortgage-you can refinance up to 105% of the value.

Do you have a Reverse Mortgage-get a lower rate, get more money, and provide little documentation.

Do you have Two Mortgages- you can still refinance and lower your payment.

Refinancing options are changing daily. Keeping up with your options . Call me to save money.

The Information shows the Single Family Homes 1st Qtr Sales Volume for the past 5 years. (January, February, March)

WOW LOOK AT LAS VEGAS NOW!!!!

Year #of sales
2005 7150
2006 6086
2007 4409
2008 3559
2009 7391

Great prices, great interest rates and possible tax credit- Buy Now before it is to late.

$8000 Tax Credit is being given to those who purchase a home.

• Must be Owner Occupied- primary residence.
• Must be a First time Buyer-A first home buyer is defined as anyone who has not had ownership interest in a property in the past 3 years.
• Must meet income restrictions.
• Credit given with Taxes.
• Must buy by December 2009.

Fannie Mae Loan Program now available for as little as 5% down with no mortgage insurance for primary residents and 10% down with no mortgage insurance for second homes and investors. The features and benefits are:

• 1 to 4 unit Properties
• NO Appraisal Required
• Low Credit Score
• Up to 6% Contributions
• NO Mortgage Insurance
• Up to 10 Financed Properties
• Flexible Terms

Many of you are asking me about the $100 Down program- you need to come in to qualify but the general terms are as follows:

• 1 to 4 Unit Properties are Eligible
• Must be a approved HUD Home
• Max Loan Amount is $400,000
• Low Credit Scores
• $100 Down Payment

The loans are available in Las Vegas and are ready for owner occupied borrowers

I've been asked 100's of times if Loan Modification is a scam. I recommend you do your research on the company providing it, ask for references of people whom they actually helped and try not to pay to much money upfront. Modifying your loan can be done by you with a little patience and persistence the bank will assist you if you qualify. Be prepared to provide your bank a financial snapshot, letter of hardship, bank statements, and pay check stubs. I find it to be worth a try before you shell out big bucks to get the same result.

New Year, Many Changes. Like most of us we watch the news and wonder what is really going on. Here are the most important items that you should be aware about for today's market.

• Loan Limits in Nevada for FHA has decreased to $287,500
• FHA requires a minimum of 3.5% Down
• Down Payment can be a gift- ( soon look for the government to pass HR600- seller assisted DPA)
• Interest rates REALLY at an all time LOW
• LOAN MODIFICATION- principle reductions are happening
• INVEST, BUY- but try not to sell at this point-(competition very tough)

Need more information you contact me.

Most of you have read that the government has approved a refinance program to assist those who need to refinance and are under water. The H4H program is where you get a FHA 30-year fixed loan at 90% of the current market value. So let's say your home is now selling for $200,000- you would refinance at a new loan of $180,000. So what is the catch- well your lender must agree to a short refinance loan and you have to agree to share future equity. If you want more information on this program visit www.HUD.gov .

Why should you refinance now- well if you have an FHA loan you can refinance with next to nothing- all you need is a few signatures and you will get a lower rate and a lower payment- with no hassle to you. Do you need extra money to fix up your home- it is now available with your FHA refinance- MANY QUALIFY....

As a Sr. Mortgage Consultant, of course I want to help people achieve the American dream and help them get a loan to buy a home. But… if it means getting them into a risky loan and putting their financial future at stake, I will not do it. I say it pays to make sure you can really afford it. I have adopted the idea of having a budget and living on less than you make. This is the way to ensure you have great financial security and can keep your investment.

Well as we all have ready-seller assisted down payment assistance is ending in a few weeks- so say good bye to Nehemiah and Ameridream- DON'T FORGET ABOUT OTHER GRANT PROGRAMS THAT ARE AVAILABLE...On the flip side focus on the positive of the $7500 tax rebate loan for buyers who purchase a home- This $7500 is an interest free loan that has to be paid back in 15 years at $500 a year- what a GREAT ADVANTAGE to collect the cash upfront to do with what you please- like home modifications and enhancements.

First let me say this document is over 700 pages and has a lot of clarification that needs to be done and interpretation from the associated agencies involved. I will summary a few points:

• Loan Limits will increase to $625,500 for Fannie and Freddie loan products.
• First Time Home buyers tax refund will be $7500 which is actually a loan that is paid in $500 increments per year for 15 years.
• A ban on Down Payment Assistance for FHA Borrowers
• FHA down payment will go up to 3.5%.
• Hope for Homeowners- assist people in a foreclosure situation by providing bonds.

I am certain there is more that meets the eye and I will keep you all update as more is decided upon and implemented.