5 Reasons to Buy a Home in 2011

Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:

▪ Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically.
▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.
▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.

Source: Investopedia, Michele Lerner (12/24/2010)

Top 3 Tips to Avoid Foreclosure if You’re Struggling to Pay Mortgage As you’re heading into the holiday season, you may have found some extra time to research how you can avoid foreclosure. I applaud your taking the first and most important step in improving your situation—seeking help! Here are the top three things you should focus on when exploring foreclosure alternatives:

1.     Create a Budget: When seeking an arrangement with your lender you must prove the monthly income shortfall that keeps you from making your mortgage payments. Create an itemized list detailing your monthly income and expenses. Pull together bank statements and check stubs for the last three months.

2.     Know your Options: It’s important to know you have several options to consider so you take advantage of the solution that is best for your specific situation. Find out more about your options on my website here: www.Dennis-Sells-Homes.com

 3.     Contact an Experienced Agent: A licensed agent who has undergone specialized training is vital to successfully navigating foreclosure avoidance. I’m extensively trained to provide you with the information you’ll need to execute a strategy tailored to your situation.  

Most major lenders have granted a two-week foreclosure holiday from December 20-31. The sooner you call me, the more options you’ll have to prevent foreclosure and get back on track for a prosperous 2011!

Roseville Home Pricing To Remain Flat in 2011

Roseville home sellers will get a break from falling home price, this coming year of 2011. Economists from CAR (California Association of Realtor) projected this earlier this year at a SAR (Sacramento Association of Realtor) monthly meeting and felt that this flat pricing will be consistent throughout Sacramento County also. See article below.

Economists Predict Flat Home Prices
Twenty-three economists surveyed this month by CNNMoney.com expect home prices to be flat in 2011. Five of the economists expect prices to fall in 2011 and then climb only 2.2 percent in 2012.

The problem is unemployment. John Ryding, chief economist of RDQ Economics, says the working-age population grew by 4 million in the last three years, adding to the depth of the problem. Most of them aren’t represented by unemployment statistics, he says, because they are working part time or have given up looking for a job.

Source: CNNMoney, Chris Isidore (12/22/2010)

Will Roseville Foreclosures get a Break?

There are stall many homes for sale in Roseville that are facing foreclosures. To a small degree those Roseville homes that are facing foreclosure will be getting to break from the pressure of foreclosure during the holidays. See the article below.

No Foreclosures Over the Holidays

Fannie Mae and Freddie Mac are freezing all foreclosure evictions on the mortgage loans they own or back from Dec. 20 through Jan. 3.

“If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays,” says Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.

Most of the large banks, including Bank of America, J.P. Morgan Chase, and Wells Fargo, already observe a moratorium through the New Year, unless the foreclosure involves an investor who chooses not to observe the holiday policy.

Source: CNNMoney, Les Christie (12/03/2010)

Is it the time of the year or is it a market trend? Nationally new home sales are down, but Roseville homes, Roseville new homes are holding there own. Each week many of the major builders who have been ideal over the last couple years, are picking up their hammers as starting to build. 

If you would like more information on Roseville Home builders and the  models that they are building, give me a call or email me at Homes@DennisReibold.com.

Below is an article that I found interesting.

New-Home Sales Slide

Sales of new homes took another dip in October, sliding 8.1 percent to a seasonally adjusted annual rate of 283,000, the U.S. Department of Commerce reported last week. New-home sales are down 28.5 percent compared to October 2009.

The pace was inconsistent across the country with sales in the South rising 3.1 percent, while sales in the Northeast fell 12.1 percent. They fell 20.4 percent in the Midwest and 23.9 percent in the West.

The media sale price for a new home declined 9.4 percent to $194,000 compared to last year and was just $800 higher than it was in October 2003. The inventory of new homes for sale slid 0.5 percent to 202,000, an eight-month supply. A six-month inventory is considered good.

Source: The Wall Street Journal, Meena Thiruvengadam and Jeff Bater (11/24/2010)

Making Sense of Mortgage Modification

There has been much in the news in the past few weeks about mortgage modifications for homeowners who are having trouble making their house payments. Many are having difficulty qualifying for modifications, and so far the Home Affordable Modification Program (HAMP) has had disappointing results.

The Washington Post recently reported that “troubled homeowners who receive housing counseling are 60% more likely to avoid foreclosure and have their mortgage payments lowered significantly than borrowers who navigate the process themselves.” I can help homeowners facilitate the process of loan modification and discuss other alternatives to foreclosure if a modification is not an option.

As a CDPE, I feel it’s my duty to help anyone I can during these hard times. If you would like to know more about mortgage modifications and whether or not you might qualify, please feel free to contact me.

Big Banks Fixing Foreclosure Processes

Bank of America and J.P. Morgan Chase told the Senate Banking Committee on Tuesday that they were making changes in their foreclosure processes after reviews found areas that needed improvement.

Barbara DeSoer, president of Bank of America’s home loan business, said the company has set up a new form for creating foreclosure affidavits.These are documents that summarize the facts of a foreclosure case such as a borrower’s name and total amount owed.

Those documents, she said, “will be individually reviewed by the signer” and notarized. The company, she said is “carefully restarting” the foreclosure process.

The Congressional Oversight Panel, however, warned in a report Tuesday that the foreclosure document problems “may have concealed much deeper problems in the mortgage market that could potentially threaten financial stability.”

A Treasury spokesmen disputed that claim, saying that 11 federal agencies are investigating the issue and they don’t believe it represents a threat to the U.S. financial system.

Source: Associated Press, Alan Zibel (11/16/2010)

Are you looking to buy a home in Roseville or looking to refinance? Here is a good article about the stifting  of credit scores and how they may apply to you.

Credit Score Requirements Stifling Borrowers

Despite record-low interest rates, an increasing number of Americans can’t afford to buy a house.

The nation’s two largest mortgage lenders, Wells Fargo & Co. and Bank of America Corp., have raised the minimum required credit score on FHA-insured loans.

At Bank of America, its minimum credit scores are 620 for purchases and 640 for refinances.

Requiring a 640 credit score excludes about 15 percent of FHA borrowers, FHA commissioner David Stevens said.

Such a high limit will further delay a recovery in the real estate market, says Ron Phipps, president of the National Association of REALTORS®.

Source: Bloomberg, Jody Shenn and John Gittelsohn (11/17/2010)

Jumbo Loan are on their way Back

Many of my Roseville clients have stayed out of the real estate market because they could not find a jumbo loan to finance their home purchase. Recent trends are showing that jumbo loans are back and the upper end housing market is starting to move. If you or someone you know is looking to by or sell a home in the upper end market of Roseville and/or Granite Bay give me a call. Below is a recent article that I read that may be of interest.

Jumbo Loans Come Out of Hiding

Jumbo mortgages are more readily available than they have been for the last two years. Both small and regional banks are beginning to offer them again.

In the second quarter of this year, jumbo lending rose 30 percent compared to the first quarter, according to Inside Mortgage Finance Publication, which provides industry data.

J.P. Morgan Chase home lending unit has increased jumbo lending by 146 percent in the first six months of this year. Wells Fargo’s jumbo lending is up 47.5 percent in the same time period.

Securing these loans continues to be difficult. Borrowers need excellent credit scores, verification of income and a down payment of somewhere between 20 percent and 40 percent. Some borrowers report that approval time can be faster at smaller banks.

Source: The Wall Street Journal, M.P. McQueen (11/06/2010)