Foreclosure Update: Fannie Mae Disposed Of 13.3% More REO’s In 2nd Quarter 2011 But Believes Delays In Foreclosure Process Will “Delay The Recovery Of The Housing Market”

5 08 2011
  • Fannie Mae acquired 53,697 single-family real-estate owned (REO) properties, primarily through foreclosure, in the second quarter of 2011
  • This compared with 53,549 in the first quarter of 2011
  • Fannie Mae disposed of 71,202 single-family REO in the second quarter of 2011
  • This was a 13,3% increase over the 62,814 REO in the first quarter of 2011
  • As of June 30, 2011, the company’s inventory of single-family REO properties was 135,719
  • This represented a 11.4% decrease from the 153,224 REO as of March 31, 2011
  • The carrying value of the company’s single-family REO was $12.5 billion, compared with $14.1 billion as of March 31, 2011.

The changing foreclosure environment has significantly lengthened the time it takes to foreclose on a mortgage loan in many states, which has slowed the pace of Fannie Mae’s REO property acquisitions. The increase in foreclosure timelines also has increased Fannie Mae’s credit-related expenses and negatively affected its single-family serious delinquency rates. Fannie Mae believes these changes in the foreclosure environment will continue to negatively affect its foreclosure timelines, credit-related expenses, and single-family serious delinquency rates. Moreover, Fannie Mae believes these changes in the foreclosure environment will delay the recovery of the housing market because it will take longer to clear the housing market’s supply of distressed homes, which typically sell at a discount to non-distressed homes and therefore negatively affect overall home prices.

For more:  http://www.fanniemae.com/media/pdf/newsreleases/q22011_release.pdf;jsessionid=L4ZZUGKM20MSZJ2FQSISFGA

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Buying Foreclosed Homes: FHA 203k Renovation Loans Are The Only Financing Option For Owner-Occupant Homebuyers Who Need To Make Repairs To A Distressed Property

20 05 2011

 

  • FORECLOSED homes have maintenance issues that have been ignored
  • Lenders turn off the water and power to cut the cost of letting the place sit
  • Most purchase loans cannot fund homes that need repairs or have major deferred maintenance
  • Distressed properties are sold at a discount and make up 40 percent of resales in currently
  • This is why “all-cash sales” are at their highest level ever — 35 percent of total sales, according to the Realtors
  • Most cash buyers are often investors who don’t plan to live in the home
  • For would-be owner-occupants without cash, the federally insured FHA 203k loan is the main loan
  • Borrowers can roll projected rehab costs into the loan
  • Most R.E.O.’s are as is, and the heat, plumbing and electric are turned off frequently, a 203(k) loan is necessary to cover the borrower and the lender
  • Buyers must use the services of an independent consultant certified by the Federal Housing Administration to review contractor cost estimates and architectural plans
  • The F.H.A. appraiser takes the consultant’s report into account when reviewing a property and determining how big the loan can be
  • Not all R.E.O. properties are eligible, such as a partially built house that has never had a certificate of occupancy
  • F.H.A-certified consultants cost $500 to $1,200, depending on the extent of the repairs and the number of units in a property
  • The interest rate on a 203(k) loan is about a quarter of a percentage point higher than on a standard F.H.A.-insured loan
  • The buyer also can expect to pay at least 1 point
  • The down payment may be as low as 3.5 percent, and loan limits apply
  • High-cost area F.H.A. loans limits are currently $729,750. (Energy-efficient rehabs may be eligible for more.)

For more:  http://www.nytimes.com/2011/05/15/realestate/financing-foreclosed-homes-mortgages.html?_r=1&ref=realestate





Skip Schenker’s “Hot Dog Of The Week” Renovation Video Series Visits A Huntington Beach, CA 3-Unit Fixer That Will Shine While It Generates Cash With An FHA 203k Renovation Loan (Video)

9 05 2011

The Renovation Lending Institute will help you turn a bank owned foreclosure home from a dog into a dream home with an FHA 203k renovation home loan. Remodel any home with just 3.5% down and include money for all fix up costs including a new kitchen, bathrooms, flooring, paint , carpet, windows, doors, new roof, HVAC system. Call Skip Schenker at 800-385-3503 to learn how you can get government insured money to remodel your current or next home. Visit http://www.RenovationLendingInstitute.com to learn more. Multi unit properties with a small down payment.





“Poorly Maintained Bank-Owned Homes” Have “Destroyed Home Values In Minority Neighborhoods” Disproportionately According To Report On “Lender Discrimination In Treatment Of Foreclosed Homes” By National Fair Housing Alliance (NFHA)

14 04 2011

CLICK ON "NEIGHBORHOOD" TO VIEW REPORT





Boardwalk Properties In Long Beach, CA Markets REO Listing In Los Angeles Using “Electronic Property Listing Flyer” Featuring FHA 203k Renovation Financing From Skip Schenker Of iMortgage

28 03 2011
CLICK ON SKIP SCHENKER FOR MORE INFORMATION

“What are you doing to attract owner-occupant buyers?  Your client wants to know…”

 Check this out…

  • Pre-Inspection for FHA repairs and bid available to qualified buyers by a licensed contractor.
  • Digitally Enhanced “After” photo to help the buyer visualize what the home “COULD” look like fixed up.
  • Professional Electronic flyer with embedded links to your website, Google map of property location, email you with the click of a button.
  • Thumbnail version available to be linked to your website, posted on the MLS or emailed to your farm.
  • Flyer will be posted on the www.RenovationLendingInstitute.com national website
  • Will also be posted on active rain and numerous other blog sites.
  • Partnered with a skilled Renovation Loan officer who guarantees closing in 45 days or less.

 ALL THIS FOR THE LOW PRICE OF… $ FREE    (For the first 25 who respond by replying to this email)   Regular price is $107.00.  Call and ask about our volume discounts of 10 or more properties at a month. This is the cheapest and easiest way to show your clients what you are doing to attract “owner-occupant” buyers.  Get more accounts by using this unique “owner-occupied” marketing tool. 

800 385-3503





REOMAC President Ivan Choi Discusses “5-Million Unit Foreclosure Backlog” At Skip Schenker’s “Sell More Homes With Renovation Loans” Seminar On March 10 (Video)

19 03 2011

CLICK ON PICTURE TO WATCH VIDEO

REOMAC President Ivan Choi talks about the difficulty of submitting offers properties in the current market. He stated that there are about “five to seven million units that are in backlog and foreclosure that will come to the market as REO”. Buyers will be more difficult to come by and sellers will be very open to FHA 203k Renovation financing and other owner-occupant renovation financing.   

http://reomac.com/about-reomac-presidents-message.asp





First-time Homebuyers Are Competing With Investors With Cash To Purchase REO’s And Foreclosures That Are In “Poor Condition”; FHA 203k Renovation Loans Are The Ideal Financing Choice

11 03 2011

 

  • First time home buyers, real estate investors, and second home buyers are competing for REO’s
  • First-time Homebuyers must perform home inspections as property conditions can be poor
  • The FHA 203k loan has built-in safeguards for obtaining a thorough inspection and comprehensive list of repairs
  • Foreclosure homes can be damaged by evicted homeowners who often engage in violence against the home as a way to vent frustration toward the lender
  • It  is illegal to cause property damage or remove attachments such as windows, flooring, toilets, or tubs, but this does not stop people from doing it
  • Bank owned homes are in better shape than properties sold at foreclosure auction
  • Once banks regain ownership they often make required repairs to return the property to salable condition
  • Banks also remove any attachments, such as creditor judgments and tax liens that could interfere with title transfer
  • Because banks incur financial loss through the foreclosure process, along with costs of required repairs, they rarely accept offers for less than the purchase price
  • Many times banks may not accept offers unless they exceed the asking price
  • In some California areas, a shrinking housing inventory has resulted in REO purchase offers being rejected
  • Offers as high as 25-percent higher than the asking price are declined
  • Properties listed for 6 months or longer (called “stagnant” properties) are properties that banks are more likely to deal on