Foreclosure Risk Lessens

Foreclosure Risk Lessens

As Borrowers Regain Equity:

A new industry report shows 69 percent of all homes in foreclosure are underwater, and nearly half—48 percent—are deeply underwater, meaning the borrower owes at least 25 percent more on the mortgage than the home is currently worth. 

 Those numbers may sound pretty big, but RealtyTrac, which conducted the study, says negative equity has been steadily declining. rising #home prices resulting in falling negative equity, which in turn is giving millions of homeowners a lifeline to avoid foreclosure when they encounter a trigger event.” read more

Price Tags Rise as Homes Get Costlier to Build

Price Tags Rise as Homes Get Costlier to Build
Single-family home construction costs are at the highest levels since 1998, according to a new report by the National Association of Home Builders. Costs were significantly higher in 2013 when compared to 2011 average construction costs—$246,453 in 2013 versus $184,125 in 2011. 
Report: Home Prices End Year Strong: According to the company’s index, home prices nationwide (including distressed sales) increased 11.8 percent in November compared to the year prior. On a monthly basis, prices moved more or less sideways, coming up an estimated 0.1 percent from October’s revised numbers. read more

Banks Aim to Clear Foreclosure Backlogs

Banks Aim to Clear Foreclosure Backlogs

Banks are trying to capitalize on rising home prices by selling seized homes more quickly.

“Lenders know there’s now a much better chance they can get those properties sold, so they’re moving to do that,”

But now that prices are rising in most markets, the backlog of bank-owned homes is being trimmed quickly. With tight inventories of homes for-sale in many cities, banks are seeing opportunity in getting repossessed homes back on the market faster for a quick sale, analysts say. #Homes' Days-on-Market Remain Low in November. read more

Sun Belt the Center of Population Shift

Sun Belt the Center of Population Shift

More people are moving to the Sun Belt region, with many #home owners are choosing to head South and West rather than to the Northeast and Midwest.  

The Sun Belt includes “places that are newer, have more opportunities for job growth, and are less costly to live. Online TechnologyLikely to Play Larger Role in #Mortgage Process:

Buy-and-rent investors get squeezed

Buy-and-rent investors get squeezed

Home prices have risen faster than rents and it’s chipping away at investors’ returns on investment, according to a new report.

Investors are finding it more difficult to buy up foreclosures in bulk and then rent them out for a sizable profit. 
Following the housing crash, investors were buying up foreclosed homes in bulk at bargain level prices and cashing in on rental profit returns. In some areas of the country, the strategy is proving still profitable, but in a growing number of areas, investors are seeing their profits aren’t what they once were due to rising home prices. Investors are finding it more difficult to buy up #foreclosures in bulk and then rent them out for a sizable profit.Buyers Get Extended Offer Period onREOs, Fannie, Freddie give non-investor home buyers 'first look'.

Housing Market Is Stabilizing 'Mortgage Rates' Up

Housing Market Is Stabilizing 'Mortgage Rates' Up
Contracts to buy new homes leveled off in November, ticking up slightly by 0.2 percent, the National Association of REALTORS® reports. Pending home sales — which reflect contracts and not closings — were 1.6 percent below year-ago levels.Pending #home sales in November posted the largest gains in the South and West, rising 2.3 percent and 1.8 percent month-over-month, respectively. Total existing-home sales are expected to end the year with nearly a 10 percent gain over 2012.  In this video, NAR Chief Economist Lawrence Yun talks about November pending home sales and gives a forecast for 2014.

Buyers Get Extended Offer Period on REOs

Buyers Get Extended Offer Period on REOs
Fannie, Freddie give non-investor home buyers 'first look' period: 
Mortgage giants Fannie Mae and Freddie Mac announced an extension of their “first look” programs, granting buyers seeking a primary residence a full 20 days to submit offers on REO properties ahead of investor competition.The expanded 20-day program took effect for HomeStep listings on or after Dec. 17. Fannie Mae’s First Look HomePath program is effective for properties listed on or after Jan. 2, 2014. The programs are designed to promote owner-occupancy in communities, which the mortgage giants believe contributes to neighborhood stabilization. Some second home purchases are also eligible for HomeSteps First Look program. However, purchases of investments or rental properties are not eligible.