For those that say we are out of this housing crisis I'd really like to hear what makes a person think so...
Here is why I feel we have a long road ahead of us still:
1.) In May the "private business" sector added 13,000 across 50 states. That is 260 private sector jobs per state.
2.) The number of applications for mortgages to purchase homes continued to decrease last week (6-21-12 thru 6-25-10), down 3.3 percent compared to the previous week on an adjusted basis, according to the Mortgage Bankers Association weekly survey. On an unadjusted basis, the purchase index declined 3.8 percent and was down 36 percent from the same week a year ago. This was the seventh out of eight weeks purchase applications have declined, keeping the purchase index at 13-year lows.
3.) The number of pending home sales for May 2010 was down 43% from one year ago.
4.) With the massive government spending, interest rates are going to have to start going back up again. The spending is unstainable.
Lastly, this is something heard very little about. 1 in 6 homeowners is currently behind on their mortgage in the US. The GDP has risen 2.7%, a corrected figure after was originally reported at 3.3%.
What happens once the homeowners who are no longer paying a mortgage, and spending the money at the mall, have to pay rent or a mortgage again? Are we really experiencing economic growth? What is going to happen to consumer spending and growth.
I am concerned about where we are headed and have a heard time believing those who say we are through this recession and down real estate market.
Chances are, you or someone you know in Burnsville, Lakeville, Apple Valley, Eagan, Bloomington, Shakopee, Elko New Market, Rosemount, or South Metro is facing the possibility of foreclosure. But you need to understand that you are not alone.
Today, 1 out of every 6 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.
Through my experience handling distressed properties at Realty Executives, I've found that homeowners today have more questions than answers about their circumstances. I have created this site to help you understand the possible solutions to foreclosure, as well as provide a detailed explanation of short sales, which may be the best course of action for some homeowners.
You may also have noticed that I'm offering you a FREE Report to explain your options and help you decide on a course of action. Visite www.BigHauseHelps.com The idea of losing a home can be overwhelming, and I feel it is vital for you to have all the facts necessary to make an informed decision.
As an agent with the CDPE® Designation, I have a strong and unique appreciation of the factors affecting the market, and know that there are options available to you.
If you would like to know more about your options, please call me at 952-457-9864 or www.BigHauseHelps.com.
I am here to help ... in any way I can.
What's affordable about this program? Is it really a modification program or just another program that's delaying the inevitable.
More than 85 percent of mortgage loans are now covered by the Obama administration's Home Affordable Modification Program. A total of 47 loan servicers were participating in the HAMP program at the end of August, up from 38 in July, and the program is on track to meet a goal of 500,000 loan modifications by November, the Treasury Department said in releasing its latest report on the performance of participating loan servicers.
The reality of HAMP... What this program does is modify people's payments for 6 months, typically reducing them by 30-40%. Then in 7th month the homeowner has a large balloon payment due.
I met with a homeowner today and she has been making a modified payment in the amount of $581 on the HAMP program. Now in month 7 she has a balloon payment of over $11,000 due. So where is someone who was headed into foreclosure and now on a modification program supposed to come up with over $11,000?
So are the number of foreclosures really going down or being delayed? What happens in 8-9 months owith all these modifications when the balloon payments come due? We are going to have a big surge of foreclosures once again. How is this helping anyone or the housing market to recover? The banks are trying to get as much out of down and out homeowners as possible.
The seven tips come from an analysis of academic research, multiple listings service data, and from information posted on various Web sites.
1. Don't overprice your property. According to a 2002 academic study of 3,490 listings, homes without a price reduction sold for 97 percent of the initial list price, whereas homes with a price reduction sold for 88 percent of the initial list price.
2. Set your price to show up in Web searches. A September 2007 study analyzed how online search filters affect traffic to a listing. Because real estate sites filter on price in $25,000 or $50,000 increments, listings priced at or below these thresholds - $250,000 rather than $251,000, or $325,000 rather than $326,000 - get as much as 7.1 percent more online visits.
3. Debut on Friday. A December 2007 analysis of online traffic for 119,079 listings across seven markets found that listings that debut on Friday get on average 7.7 percent more visitors in their first seven days than those that debut on the worst day, Thursday.
4. Get sellers engaged with your agent. According to several academic studies, motivated, active sellers are able to sell their property as much as 30 percent faster.
5. Market the property online. Promoting a listing on Web sites beyond the local Multiple Listing Service can drive a significant number of new online visits to a property. A December 2007 analysis found that promoting the listings on Craigslist resulted in an average of 6.8 online visits to the property for each Craigslist promotion.
6. Have sellers stay put. The study of 3,490 listings, cited earlier, found that vacant homes were 9.5 percent more likely to undergo a price reduction.
7. Wait to list your property until neighboring foreclosures are off the market. According to a November 2007 report from the Center for Responsible Lending, a foreclosure costs neighboring home owners an average of $5,000 when listing their property.
With the current financial crisis and foreclosures becoming more prevalent their are many people that don't know where to turn, but there are options.
In August lenders performed roughly 79,000 loan modifications for home owners to help keep them in their homes. So lenders are trying to be more pro-active in preventing foreclosures. Lenders take a hit on average of $100,000 per property that goes through foreclosure (Reuters News and The Associated Press - 10/02/08). So being able to work out loan modifications benefits both home owners, lenders, and the economy as a whole.
One of the main things when a homeowner needs assistance with doing a loan modification, it's extremely important to consult a professional with experience in dealing with lenders. This last month I assisted five families in working out loan modifications, enabling them to stay in their homes. For those did not qualify I was able to explain to them, options to avoid foreclosure.
If you have questions and are not sure where to turn, I'm here to help. E-mail me at MattEbbighausen@RealtyExecutives.com.
I inform, equip, connect, and serve my clients so they are empowered to make well informed decisions about the buying and selling process.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
