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Foreclosure Filings Down 19 Percent In One Year

Foreclosures Per Capita January 2012 

Foreclosure filings fell 19 percent last month versus one year ago, says foreclosure-tracking firm RealtyTrac. It’s yet one more signal that the U.S. housing market may have already climbed off its bottom.

According to RealtyTrac, a ”foreclosure filing” is any one of the following foreclosure-related events : (1) A default notice on a home; (2) A scheduled auction for a home; or, (3) A bank repossession of a home.

In looking at the January 2012 figures :

  • Default Notices were down 22% from January 2011
  • Scheduled Auctions were down 19% from January 2011
  • Bank Repossessions were down 15% from January 2011

On a monthly basis, however, the numbers weren’t so promising.

Default notices and scheduled auctions were mostly unchanged, but bank repossessions rose 8 percent. The rise in bank repossessions is likely because 2010′s robo-signing controversy has been rectified at the state and lender level.

This trend toward more bank-owned homes is expected to continue through 2012.

As in most months, January’s foreclosure activity was geographically concentrated. Nevada led the nation in Foreclosures Per Capita, followed closely by California. 13 states fared worse than the national average of 1 foreclosure per 624 households. 37 fared better.

The difference in foreclosure frequency among the two groupings was stark :

  • Top 13 Foreclosure States : 1 foreclosure per 435 households, on average
  • Bottom 37 Foreclosure States : 1 foreclosure per 5,101 households, on average

North Dakota had January’s lowest foreclosure rate nationwide. Just 1 in 63,500 homes was in some form of foreclosure in North Dakota last month.

As a first-time or seasoned buyer in Pleasanton , foreclosed homes can be enticing. They’re plentiful and cheap. However, just because a foreclosed home can be bought for a “steal”, that doesn’t mean it’s worth buying. The process of buying a foreclosed homes is different from the process of buying a non-foreclosed home.

The contract-and-negotiation process may be different with a foreclosed property, and foreclosed homes are often sold “as-is”. This means the home you buy at auction could be run-down and defective to the point where it’s uninhabitable.

If you plan to buy a foreclosed home, therefore, have a real estate professional on your side. The internet can teach you much about how the California housing market works, but when it comes to writing contracts, you’ll want an experienced agent on your side.

Filed Under: Housing Analysis Tagged With: , ,

How To Take Advantage Of The Foreclosure Settlement

Foreclosure auction signs

Starting March 1st the $25 billion Robo-Signing (or Foreclosure) settlement will begin to go into effect. The settlement, put together between the US government and five major banks (Ally Financial Inc/GMAC Mortgage, Bank of America, Citigroup, JP Morgan Chase and Wells Fargo), is designed to help relieve many borrowers who are either struggling to make payments, owe more than their home is worth or have already lost their home to Take Advantage of The Foreclosure Settlementforeclosure.

But how do you take advantage of this new settlement if you’re not a borrower in the above situations? What if you’re a new homebuyer, just starting to look for a home?

This settlement will encourage banks to deal with the delayed foreclosures they’ve been sitting on lately, and eventually speed up the foreclosure process.

As these foreclosures go through, there will be an increasingly large amount of available properties to be sold, all at extremely low prices, creating a great opportunity for new homebuyers and real estate agents alike to get homes at great deals!

If you want more information about the settlement or how you can take advantage, contact Robert Sinohue, Guaranteed Rate.

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Filed Under: Uncategorized

Make Your Own Organic Fruit Wash

Make your own organic fruit washHow clean are the fruits and vegetables you eat? Unless you pick your food straight from the farm, your food is likely more dirty than you think.

In addition to pesticide treatment made while food is still “on the vine”, fruits and vegetables you buy at a grocery are often coated in wax to preserve their “shelf life”; and you can never know how much dirt your food has rolled in.

Even organic foods are handled multiple times on the way to the grocery store. They may be pesticide-free, but they’re not dirt-free or free from human handling. 

This is why we wash fruits and vegetables before consumption — to wash off dirt. But, there are extra precautions you can take to make sure your food is truly “clean”.

One such method is to use a make-it-yourself, organic fruit wash. The recipe is basic and simple. All you need is a large, lidded pitcher for mixing, some everyday foods, and a spray bottle.

  1. In the large pitcher, pour 1 cup of water, 1 cup of white vinegar, and 1 tablespoon of baking soda.
  2. Add 25 drops of grapefruit seed extract. If you can’t find this at your local grocery, check with a natural food store or specialty store.
  3. Mix ingredients in the pitcher, and pour into a spray bottle

That’s it. 

Then, when you’re ready to clean fruits and vegetables, use your homemade spray wash and coat the food liberally. Let the food stand for 5 minutes, then rinse the spray wash from the food in the sink.

Expect dirt to roll off fruit and vegetables surfaces and for the spray’s vinegar component to neutralize pesticides. You’ll be left with cleaner, healthier natural foods.

To make the fruit wash should take less than 5 minutes. Each batch should last one month, depending on the amount of fruits and vegetables you consume.

Filed Under: Around The Home Tagged With: , ,

When Can I Buy A Home After Foreclosure, Bankruptcy, Or Short Sale?

A very common question in the mortgage industry lately is this; when can I buy a home after foreclosure, bankruptcy, or a short sale? With many people having to foreclose and file for bankruptcy in the past few years, this has become quite a common topic. Most people do not know how long they must wait before jumping back into the housing market. The length of time you need to wait before being able to qualify for a house is dependent upon which loan program, or product, you choose. Each loan program has a different answer.

The housing crisis that we have experienced recently has caused many rules and regulations to change, regarding these situations.

Here is the up to date breakdown for the waiting period:

  Foreclosure Short SaleDeed-In-Lieu Ch. 7 Bankruptcy Ch. 13 Bankruptcy
Fannie Mae 7 yrs from completion date. 2 yrs with max 80% LTV ratio.4 yrs with max 90% LTV ratio.7 yrs > 90% LTV. 4 years from discharge or dismissal date. 2 yrs from discharge date.4 yrs from dismissal date.
Freddie Mac 7 yrs from completion date.4-7 yrs max 10% down. 4 yrs from completion date for short sale.4 yrs for deed-in-lieu 4 years from discharge or dismissal date. 2 yrs from discharge date.
FHA 3 yrs from completion date. 3 yrs from completion date. 2 yrs from discharge date. 1 yr of the payout must elapse & payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage.
VA 2 yrs from discharge date. No specific information on this yet, assume foreclosure rule of 2 years. 2 yrs from discharge date. 1 yr of the payout must elapse & payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage.
USDA Rural 3 yrs from completion date. 3 yrs from completion date. 3 yrs from discharge date. 1 yr of the payout must elapse & payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage.

 

Once your waiting period is over you should begin looking at your credit report, and credit score. At least six months before you initiate any home buying transactions, you should be focusing on your credit report and score to make sure there are no discrepancies. A smart thing to do would be to contact a credit specialist, or your trusted mortgage advisor, to ensure you are on the right track. If you are interested in finding out more please call (925) 364-5210, or email rsinohue@guaranteedrate.com

Filed Under: Personal Finance, The Economy, Uncategorized

Are You Missing the Best Time to Buy a Home?

Homebuilder Confidence RisesFor the sixth month in a row, homebuilder confidence rose, climbing four points in February and reaching the highest mark the index has seen since May 2007! And it’s no wonder: with low rates, low down payment options and a recovering economy, there has been a lot of buyers looking at the market. It’s reported that there are two times the amount of buyers touring homes now than there were in September of 2011.

Home affordability is certainly at its best right now, and home builders can see what’s coming, which means that low home prices could be ending soon. Your best chance at getting your home for a low price, with a low interest rate could be right now. It could be too late 3 months from now!

Click here to get pre-approved so that finding your dream home is easier!

Filed Under: Uncategorized

Homebuilder Confidence Returns To Pre-Recession Levels

NAHB HMI index 2010-2012

New construction buyers in Pleasanton , look out. The nation’s home builders are predicting a strong 2012 for new home sales. It may mean higher home prices as the spring buying season approaches.

For the sixth straight month, the National Association of Homebuilders reports that homebuilder confidence is on the rise. The Housing Market Index climbed four points to 29 in February, the index’s highest reading since May 2007.

The Housing Market Index is now up 8 points in 8 weeks. The last time that happened was June 2003, a month during which the U.S. economy was regaining its footing, much like this month. It’s noteworthy that June 2003 marked the start of a 4-year bull run in the stock market that took equities up 54%.

The NAHB’s Housing Market Index itself is actually a composite reading. It’s the end-result of three separate surveys sent to home builders monthly.

The association’s questions are basic :

  1. How are market conditions for the sale of new homes today?
  2. How are market conditions for the sale of new homes in 6 months?
  3. How is prospective buyer foot traffic?

In February, builders reported marked improvement across all three areas. Builders report that current home sales climbed 5 points; that sales expectations for the next 6 months climbed 5 points; and that buyer foot traffic climbed 1 point.

Most notable of all of the statistics, though, is that the nation’s home builders report that there are now twice as many buyers setting foot inside model units as compared to just 6 months ago.

This data is supported by the monthly New Home Sales report which shows rising sales and a shrinking new home inventory.

Because of this, today’s new home buyers throughout California  should expect fewer concessions from builders at the time of contract including fewer price breaks on a home and fewer free upgrades. Builders are optimistic for the future and, therefore, may be less willing to “make a deal”.  

This spring may mark the best time of year to buy a new home. 60 days forward, it may be too late.

Filed Under: Housing Analysis Tagged With: , ,

More Borrowers Look to Shorten Their Loan Terms Last Quarter

According to Freddie Mac Quarterly Product Transition Report, released yesterday, more than 95% of refinance loans were fixed-rate mortgages. It is clear that refinancing borrowers are clearly taking advantage of the record lowBorrowers Looking To Shorten Loan Terms interest rates, preferring fixed-rate loans regardless of whether their original loan was or not.

“Fixed mortgage rates averaged well below long-term averages. It’s no wonder we continue to see strong refinance activity into fixed-rate loan,” Frank Nothaft, Freddie Mac’s Vice President and Chief Economist stated. “For borrowers motivated to refinance by low fixed-rates, they could obtain even lower rates by shortening their term.”

Borrowers already seem to be jumping on this trend, as an increasing share of refinancing borrowers chose to shorten their loan terms during the fourth quarter of 2011. Of borrowers who paid off a 30-year fixed-rate mortgage, 43% chose a 15- or 20-year loan, the highest since the first quarter of 2003.

If you’re interested in shortening your loan terms, contact us at Guaranteed Rate to see what your options are.

Filed Under: Uncategorized

With Retail Sales And Consumer Confidence Rising, Home Prices Are Expected To Follow

Consumer Confidence vs Retail Sales (2009-2012)

The U.S. economy continues to show signs of a rebound.

According to the Census Bureau, Retail Sales climbed to $329 billion last month on a seasonally-adjusted basis, excluding automobiles. January’s data marks the 18th time in 19 months that Retail Sales rose, a run that’s increased total sales receipts by 11 percent.

This is big news because Retail Sales accounts for close to 70% of the U.S. economy.

In addition, consumer confidence is rising.

In a separate, joint report from the University of Michigan and Thompson Reuters, it was shown that consumer attitudes toward the economy and the future are improving, primarily the result of recent job gains.  

The Survey of Consumers posted its highest value in 12 months.

It is not a coincidence that Retail Sales and consumer confidence both made multi-month highs — the readings are more than loosely linked. As consumers feel more confident about the economy and their personal prospects for the future, they’re more likely to spend money on goods and services, which leads to an increase in consumer spending.

For the housing market, the ramifications are two-fold.

First, from the financing side, an expanding economy is linked to rising mortgage rates. This is because Wall Street tends to chase risk in a growth economy and the bond market offers little in the way of risk. As demand for bonds drops, then, mortgage rates rise throughout California.

Second, rising consumer confidence can lead San Ramon home values higher, too.

Confident consumers are more likely than fearful ones to become home buyers. They’re more likely to stop renting and start buying; more likely to list their home and “move-up” to something bigger; more likely to “take the next step”.

So, as more buyers enter the market at a time when the national home supply is shrinking, the supply-demand balance in housing is shifting toward the sellers. This creates price pressures and should lead to higher home valuations in neighborhoods like Blackhawk.

If you have plans to buy a home in 2012, the best time to buy may be now. Today’s mortgage rates are low and so are the home prices — a combination that’s unlikely to last.

Filed Under: The Economy Tagged With: , ,

20 Documents You Need for a Smooth Home Purchase

Buying a home involves a variety of parts; many people, documents and tasks are needed in order to make your purchase go smoothly. It’s better to get organized as soon as possible, but what exactly do you need?

To start, you should get all the paperwork that will be required gathered and organized. Here’s a list of the paperwork you’ll need to buy a home, depending on what stage of the purchase process you’re at:

If you’re ahead of the game and still getting ready for your pre-approval or mortgage:Documents Needed for Home Purchase
1. Tax Returns (at least one year, if self-employed or commission typically 2 years)
2. W2s (last 2 years)
3. Pay Stubs (last 2 years with year-to-date earnings)
4. Bank Statements (last 2 months)
5. Investment Account Statements
6. Copy of Your Driver’s License or Photo ID
7. Credit Report

If you’re at the point of submitting an offer:
1. Copy of Your Pre-Approval Letter
2. Sales Contract (signed and dated)
3. Any Addendum

If you’re already at closing:
1. Sales Contract (signed by Buyers and Sellers)
2. Title
3. Title Insurance
4. Copy of Your Driver’s License or Photo ID
5. Deed
6. HUD-1 Statement
7. Survey
8. Proof of Home Insurance (if required by lender)
9. Proof of Required Repairs
10. Checks

Filed Under: Uncategorized

Fewer Jobless Claims Suggests Higher Home Prices Ahead

Initial jobless claims 2008-2012

Economists believe the strength of the 2012 housing market will be closely tied to jobs. If they’re right, the housing market is ripe for a boost. It spells good news for Danville home sellers and may mean the end of bargain-basement prices for buyers.

Since peaking in mid-2009, the number of U.S. workers filing for first-time unemployment benefits has dropped 44 percent. Over the same period of time, the U.S. economy has added more than 2 million jobs and the national Unemployment Rate is down more than 1 percentage point to 8.3%.

Employment’s link to the housing market of Ruby Hill is both economic and psychological.

To make the economic link is straight-forward. A person with a job earns verifiable income and such income is required in order to be mortgage-eligible. For conventional and FHA purchase loans, for example, mortgage lenders want a home buyer’s monthly income be more than double his monthly debts. 

For the formerly unemployed that have since returned to work, having a full-time income makes buying homes possible. It also supports higher home valuations nationwide because home prices are based on supply-and-demand. All things equal, when the number of buyers in a market goes up, prices do, too.

The psychological connection between housing and employment is a tad more complicated, but every bit as important. It’s not just out-of-work Americans that don’t look for homes — it’s fearful Americans, too. People with concerns about losing a job are just as unlikely to shop for homes as people actually without a job. The same is true for people unsure of their prospects for a better-paying job, or their own upward mobility.

A recovering job market can lessen those fears and draw out buyers — especially those who face a loss on the sale of an “underwater” home.

The Initial Jobless Claims rolling 4-week average is at its lowest level since 2008. Fewer Americans are losing jobs, and more are finding permanent placement.

It’s one more reason to be optimistic for this year’s housing market. 

Filed Under: The Economy Tagged With: , ,
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