“Ready4Remodel” And “DirectBuy” Sponsor Home Renovation Financing Seminar For Homebuyers On Nov 17 In Signal Hill, CA

8 11 2012

“Ready4Remodel” And “DirectBuy” Sponsor Home Renovation Financing Seminar For Homebuyers On Nov 17 In Signal Hill, CA

24 10 2012

“Ready4Remodel” And “DirectBuy” Sponsor Home Renovation Financing Seminar For Homebuyers On Nov 17 In Signal Hill, CA

28 09 2012

Homebuyers Should Not Avoid Short Sales But Have Patience And Few Contingencies With Purchase Financing

19 08 2011
  • Typically with a short sale, the homeowner is underwater and has experienced a financial hardship such as a job loss.  To limit the damage to his credit rating, a homeowner may attempt to work with his lender to negotiate a short sale.  Not only must the bank approve of the short sale itself, it also must agree to the price, since the bank will accept the difference as a loss.
  • Unlike foreclosures, in which the owner has walked away and the bank is looking to unload a vacant – and sometimes vandalized – property, a short sale isn’t a distressed home that will sell at an extremely low price.  According to data from RealtyTrac, short sales typically sold for nearly 10 percent less than the market price in the first quarter of 2011, whereas foreclosures sold at an average discount of 35 percent.
  • Home buyers wanting to purchase a short sale must have patience.  In most cases, when a buyer makes an offer on a house, he receives a response from the seller within a few days, or even hours.  With a short sale, the bank must approve of the sale and bank representatives are overloaded with cases.  It may take 30 days or longer for a buyer to receive a response from the bank.
  • In a traditional real estate transaction, it is common for a home buyer who currently owns his home to make his offer contingent on selling his current home.  In short sales, most banks will not approve an offer that is contingent on the buyer selling his current home, as too many things can go wrong.
  • Banks also typically won’t consider short-sale offers that have inspection contingencies in them, so buyers can either do an inspection prior to making an offer or forego an inspection altogether.
  • Even with the challenges associated with short sales, buyers should not avoid these transactions. 

For more:  http://realestate.aol.com/blog/2011/08/11/short-sales-are-they-worth-the-trouble/

U.S. Home Sales Fell 0.8% In June To Annual Rate Of 4.77 Million Homes As First-Time Homebuyers Fall To 31% Of Total And Purchase Cancellations Rise To Record 16% As Appraisals Come In Low

20 07 2011
  • Home sales fell 0.8% in June to a seasonally adjusted annual rate of 4.77 million homes
  • Economists say that 6 million homes per year represent a healthy housing market
  • The sales pace is behind last year’s 4.91 million homes sold — the weakest sales in 13 years
  • Sales have fallen in four of the past five years
  • A record number of homebuyers who signed contracts canceled deals last month, approximately 16%
  • First-time buyers fell to a very low 31% of purchase transactions (they represent 50% in a health market)
  • Declining home prices have kept many people from selling their houses and taking new jobs in growing areas
  •  They have also made people feel less wealthy and that has reduced the consumer spending that drives about 70 percent of economic activity
  • Bigger down payments, tougher lending rules, high debt and a shortage of desirable starter homes are keeping many would-be buyers away
  • Even some with good credit and enough money for a down payment are holding off because they are worried home prices will keep falling

For more:  http://finance.yahoo.com/news/Home-sales-fell-in-June-fewer-apf-154260181.html?x=0&sec=topStories&pos=1&asset=&ccode=

Home Price Expectations: June 2011 Fannie Mae Housing Survey Finds Most Americans Feel Home Prices Will Fall 0.5% In Next 12 Months; Mortgage Rates Expected To Be Steady

11 07 2011

U.S. Housing Market: Home Price Decline Is Bringing “Price-To-Rent” Ratio Back To Historical Norms Favoring Homebuyers In Long-Term

5 07 2011

Starting in 2000, rent growth did not keep pace with the steep home price appreciation, pushing the price-to-rent ratio well above the historic average. Many market observers have identified the dislocation between prices and rents as both an indicator of the housing bubble and as a tool for helping to understand the relative affordability of these two housing options.

Home prices have been declining since 2006, forcing the price-to-rent ratio to revert to its long-term average. As of the first quarter of 2011, the price-to-rent ratio is slightly below 1.0, suggesting that on the national level renting is essentially the same as buying economically, although the trend seems to be tilting toward buying going forward.

For more:  http://nreionline.com/finance/news/rent_versus_buy_home_0705/