About Rock County, WI

The Wisconsin housing statistics are now in for June of 2011. Here is an excerpt from what the Wisconsin Realtors Association (WRA) had to say:

As expected, the sale of existing homes in Wisconsin for June was below last year's pace, a consequence of artificially high sales a year ago due to the federal tax credit program, according to data released by the Wisconsin REALTORS^® Association (WRA). Home sales in June were 16 percent lower than that same month last year, and the median sales price was down 7 percent to $140,000.

"Actually these figures were a bit better than expected," said John Horning, Chairman of the WRA Board of Directors, noting the initial deadline set for the 2010 program required a signed contract by the end of April and a closing by the end of June. "The reality is that it's tough to compare these two months because so many buyers last year were scrambling to get their closings done by June 30," Horning said. "It will still be a couple of months before the distortions from the federal tax program work their way out of the data," he said.

Below are the number of Home Sales and Median House Prices for the state of Wisconsin, Rock County, and Dane County. These stats include Janesville and Madison. Feel free to contact me if you have any questions pertaining to these figures. If you would like some insight into how much your home is worth, I would be happy to provide you with a free comparative market analysis. This is a report that gives a close estimate to what your home might sell for in your current local Wisconsin real estate market.

Housing Statistics for the State of WI:

June 2011
Home Sales: 5,694
Median Home Price: $140,000

June 2010
Home Sales: 6,612
Median Home Price: $150,000

Housing Statistics for Dane County, WI:

June 2011
Home Sales: 629
Median Home Price: $210,000

June 2010
Home Sales: 855
Median Home Price: $207,000

Housing Statistics for Rock County, WI:

June 2011
Home Sales: 171
Median Home Price: $95,000

June 2010
Home Sales: 195
Median Home Price: $108,000

This information is courtesy of the WRA, Wisconsin Realtors Association. Please follow this link for further details: Wisconsin Housing Statistics

Short sales and bank owned properties can offer a great price point to the savvy buyer or investor. Typically though, these homes do require some amount of work and repairs. I've found that many properties just need some cosmetic ‘touch ups' like paint and landscaping. Others however may need significant remodeling, including drywall, roofing or windows.

In any event, having a mortgage available that gives you the option of financing these repairs is a huge advantage. The two most common options currently in the market are the FHA 203K and the HomePath loans. The Zillow article below goes over the differences in each.

Regards
Michael Collins, SFR
Short Sale & Foreclosure Resource

If you are in the market to buy a home, chances are that you have seen at least one property that is either a short sale or a bank-owned property.

And based on what I have seen, many short sales or properties that are currently owned by the bank are in need of a few repairs before anyone can live in them.

Which is why I get quite a few questions about two of the most popular loan programs designed to help homeowners finance needed repairs on a new home: the FHA 203k program and Fannie Mae's HomePath mortgage program.

One of the more common quick questions I hear when people are learning about these loan programs is:

"Which is better, the HomePath mortgage or the FHA 203k loan?"

The simple answer to this question is "it depends" and before I give you a simple formula that might help you choose between the two programs, here is a quick review of each loan program.

The FHA 203k and FHA Streamline 203k Loans

The FHA 203k loan program can be grouped into two different types of loans: the FHA Streamline 203k loan program and the FHA 203k loan. The FHA 203k streamline is designed to be a limited repair program and has simpler processes and no HUD consultant required like on the full FHA 203k loan. In my experience, the FHA 203k streamline is a more popular option since many of the needed repairs for bank-owned homes can be considered "cosmetic."

Highlights of the FHA 203k streamline loan include:

• It works very similar to a construction loan - it allows you to purchase a home that wouldn't qualify for FHA financing due to repair work being needed
• The loan amount is equal to the purchase price of the home plus the amount needed for repairs
• FHA 203k streamline program allows for repairs ranging from $5,000 and $35,000
• Qualifying for FHA 203k loans are the same as regular FHA loans
• Repair work cannot begin until loan closes and the money to pay contractors comes from an escrow account set up when the loan closed
• FHA 203k loans require UFMIP and MIP just like regular FHA loans
• Appraisal required
• Currently available for owner-occupied properties only although I have heard rumors of an "Investor 203k loan" coming soon.

Fannie Mae HomePath Renovation Loan

When the housing downturn began and Fannie Mae started owning more homes than ever before, one of the things Fannie Mae did to help move the homes to new owners was to design the HomePath mortgage program.

The HomePath mortgage program has two different programs within it - the HomePath loan and the HomePath Renovation loan.

For homes that are in need of repairs, the HomePath Renovation loan is the loan program that is often compared to the FHA 203k loan when weighing options.

HomePath Renovation loan highlights include:

• The property must be currently owned by Fannie Mae
• The loan amount is for both the home and the repairs required for the home
• Repairs can be up to 35% of the as-completed value, but not to exceed $35,000.
• Down payment requirements can be as low as 3%
• Fixed or adjustable rates are available
• No mortgage insurance required
• Investment properties or 2nd homes and investment properties are allowed
• No appraisal required
• Lenders can be difficult to find, not every lender is HomePath approved and many HomePath approved lenders do not offer the HomePath Renovation loans

HomePath Renovation Loan or FHA 203k Loan?

When deciding on financing for a home that is in need of repairs, the Fannie Mae HomePath Renovation loan program and the FHA 203k loan program are what most people are going to select.

Is there an easy way to select the "right" loan between the two?

Yes.

Which Loan Program Is Better?

Here is a simple way to choose the right loan program between the two if you are buying the home as your primary residence:

• Is the home owned by Fannie Mae?If yes, it probably makes the most sense to get a HomePath Renovation loan.
• Is the home owned by someone other than Fannie Mae? If so, then your best option is the FHA 203k loan.

While both the FHA 203k loan and the Fannie Mae HomePath Renovation loan programs are similar, I have found that for houses owned by Fannie Mae it usually makes more sense to go with the HomePath Renovation loan.

Which means the first question you may want to ask is:

Is this house owned by Fannie Mae?

And then you will have your answer.

> Use Fannie Mae Loan Lookup tool

Justin McHood works for Academy Mortgage and is based in Chandler, AZ. He is a contributor to Zillow Blog and has conversations about mortgages whenever he can. Learn more about Justin at http://www.mortgagecommentator.com.

This year I have been completing numerous BPO's for homes in my area. BPO is an acronym for Broker Price Opinion. Broker price opinions are a valuation service that real estate brokers can offer to banks. Performing these BPO's has only strengthened my ability to properly assess how much a property/home is worth in today's market conditions. Completing BPO's in local cities like Janesville, Milton, Beloit, Evansville, Elkorn and Madison has given me a unique view into the intricacies related to each market. I also have a better understanding of how the banks determine their home values when it comes to short sales, pre-foreclosure decisions and REO properties. The article below explains in greater detail what a broker price opinion is.

Regards,
Michael Collins - Broker
Short Sale & Foreclosure Resource

What is a Broker Price Opinion?

When a bank or asset manager obtains a new foreclosed listing to sell, they immediately need to know the home's value. Typically a bank will assign one to three agents to evaluate the approximate selling value of a home. These banks expect each agent to submit three comparable sold listings and three comparable active listings as well as an estimate of what the agent thinks the home will sell for.

A Broker Price Opinion is not as detailed as an appraisal and does not entail as much work. BPOs differ from Appraisals in a number of ways:

• Appraisals typically cost over $300. Most BPOs pay brokers between $50 and $100.
• Appraisals require detailed square footage measurements. BPOs rely on county assessors' recorded measurements.
• Appraisals use a standard format recognized and used by lenders and mortgage professionals for precise property valuations. BPO's are prepared in different formats and are used simply as decision making tools for asset managers of each bank.
• Appraisals are typically 15-20 pages long with detailed information on each aspect of a property. BPO's are usually 2 pages long with information pertaining only to a final selling price.

Why Do Banks need Broker Price Opinions?

Asset managers and bank personnel make decisions on several properties every day. Reading through a lengthy 20 page appraisal and filtering out the critical information is a waste of their time. These asset managers need concise, financial documents that make their choices easier. That's why BPOs are so critical to their job. In addition, a BPO saves the bank over $200 per property compared with a standard appraisal. That money adds up quickly and saves the bank thousands and thousands of dollars a year.

Another reason BPOs are preferred by banks is that the turnaround time is much quicker than appraisals. BPOs can usually be performed by agents in under 48 hours. Many appraisers visit the property within 48 hours, but then require another day or two to process the information and create the full report.

Article Source: http://EzineArticles.com/1844386
Author: Brian Anthony

Bank of America is offering...PRINCIPAL REDUCTIONS!

You read that right..the nations largest lender is now going to offer a program to bail out underwater owners...here are the details directly from BofA:

CALABASAS, Calif. - Bank of America, a leader in developing and carrying out programs to help financially distressed homeowners, is leveraging the federal government's Hardest Hit Fund (HHF) initiative to begin pilot programs of principal reductions for customers in Arizona who owe considerably more on their mortgage than their property is worth in today's depressed market.

The bank has become the first major mortgage servicer to send letters of interest to homeowners who may qualify for HHF-supported principal reductions in these states. Previously, Bank of America began testing and implementing new programs for unemployed homeowners in several other states receiving HHF support.

"Bank of America remains committed to helping distressed borrowers remain in their homes through a variety of programs," said Terry Laughlin, executive vice president.  "Since the Obama administration established the Hardest Hit Fund (HHF) initiative one year ago, Bank of America has worked closely with both the Department of Treasury and state housing agencies to design and implement the program to provide interim payment assistance to unemployed borrowers, as well as funding for loan modification assistance to delinquent borrowers. We are excited this program is coming to fruition."

Through the Arizona pilot program, Bank of America customers experiencing financial hardship may be eligible to have the amount owed on their mortgage reduced through matching contributions from the state and from participating mortgage investors. Bank of America has begun mailing letters to customers in those states who may qualify for the assistance based on state program and investor guidelines. The offers are being made proactively in conjunction with the solicitation process for the federal government's Home Affordable Modification Program.

Bank of America also is finalizing processes for a pilot principal reduction program with the Nevada Affordable Housing Assistance Authority and is in advanced discussions with the California Housing Finance Agency to begin a pilot program with that state.

Bank of America established its leadership in providing solutions for severely underwater homeowners last spring with an innovative principal forgiveness program for eligible customers under its own National Homeownership Retention Program. HHF will provide assistance to additional homeowners who, mainly due to drastic decreases in home values in the last three years, are upside-down on their mortgages.

The HHF unemployment program offers qualified borrowers mortgage payment assistance for up to 36 months while they are unemployed, depending on state program guidelines. Bank of America is currently involved in pilots of unemployment assistance programs in California, North Carolina, South Carolina, Ohio, Oregon, Lee County, Florida, and Washington, DC. Customers who are interested in these programs should work with their state housing finance agencies to determine their eligibility.

Bank of America will continue expanding these programs on a state-by-state basis as agreements are reached with interested housing finance agencies in other HHF-grant states.

All HHF programs are targeted to low- and moderate-income homeowners, and eligibility also depends on investor participation.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 57 million consumer and small business relationships with more than 5,800 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

www.bankofamerica.com

# # #

Reporters May Contact:

Dan Frahm, Rick Simon or Jumana Bauwens, Bank of America, 1.800.796.8448

pressroom@bankofamerica.com

With Independence Day just weeks away, many families are preparing for a night filled with loved ones, barbeques, and fireworks. However, even while our carefree celebrations will be occurring, thousands of military members will remain deployed over the holiday fighting so that we may maintain our freedom. If you have a loved one who is serving or has served in our nation's military, take the time this Independence Day to say thank you for serving by making sure they are aware of all the benefits they are eligible for.

In addition to health and pension benefits commonly associated with the military, veterans and active duty service members are also eligible for a host of other benefits, including the VA Home Loan, which can enhance the quality of a military member's life by making homeownership affordable and accessible.

What is a VA Home Loan?

The VA Home Loan is a mortgage loan that is partially guaranteed by the Department of Veterans Affairs. Because the VA insures a part of each loan, military borrowers are able to receive loan benefits that they would not be able to find with other traditional lending programs. In addition to low interests rates and flexible mortgage terms, VA loan benefits include:

• No required down payment

• High loan limits

• No Private Mortgage Insurance (PMI)

Who is Eligible for the VA Home Loan Program?

To make homeownership more accessible to veterans and active duty service members, the VA Home Loan Program has constructed very lenient eligibility requirements. To become initially eligible for a VA Home Loan, veterans and active duty service members must simply submit a Certificate of Eligibility, and:

• Have served for at least 3 months on active duty during war time or served for 181 days on active during peacetime

• Or have served 6 years in the Reserves or National Guard

In addition to VA home loans, active-duty service members have the benefit of knowing their home will remain in their possession while they are deployed. The Servicemembers Civil Relief Act (SCRA) was signed into law in 2003 to protect active duty service members against any pre-existing financial obligations. Military service is strenuous and often unpredictable. Upon deployment, a service member may have to place unnecessary financial burden on his or her family left behind as the family now must cover the costs of everyday life along with the rent or mortgage payment on their own.

SCRA was established to limit these personal and financial burdens created during deployment by providing mortgage relief in addition to other forms of relief such as:

• Termination of Leases

• Protection from Eviction

• 6 Percent Cap on Interest Rates

• Reopening of Default Judgments

• Stay of Proceedings

The last thing a military member should have to be concerned about when serving abroad is the home or family they have had to leave behind. The Servicemember's Civil Relief Act was created to lessen those concerns. A constantly worried service member isn't able to serve to the best of his or her abilities and could lead them to eventually put themselves unknowingly in harms way. So this holiday season, make sure the military members close to you know about the benefits that are there to both serve and protect them so that they may enjoy a high quality of life, and obtain the American Dream they fought so hard to protect.

Matt Polsky is guest author for Rock Realty from VA Benefit Blog, a blog focused on providing our veterans and service members with current news and information on the benefits they have earned through serving our country.

Homeowner Benefits to Veterans and Service Members