Forbearance to Help Foreclosures 0
We all know someone who has lost their job and/or is having trouble finding gainful employment because of the battered economy. This can be a challenging and scary situation to be in when you are a homeowner. Many borrowers are embarrassed and are unsure of their options if they are having trouble making their payments. Luckily, there is some good news for borrowers in this situation.
Fannie Mae and Freddie Mac recently announced that they are modifying their forbearance policy as of Feb. 1, 2012 to include unemployed borrowers. Here are the facts:
Low rates….but low inventory as well 4
It’s no surprise that we are enjoying historically low interest rates. However, at least here in the Denver area, we are also dealing with very low inventory levels as well. If you follow www.insiderealestatenews.com you may have read a recent article from John Rebchook where he talks about the decrease in the number of released deeds in 2011. A recent report released by the Colorado Division of Housing shows a decrease from 251,861 in 2010 to 235,749 in 2011. In short, release activity falls as home purchases and refinances drop.
So why have low interest rates not correlated into an increase in recent market activity? “Ten years ago, even a small decline in the mortgage rate would have produced quite a bit of new refinance and sales activity. But since 2008, tighter lending standards and a drop in the number of eligible buyers has prevented a sizable surge in new activity in spite of record-low rates,” said Ryan McMaken, spokesperson for the Colorado Division of Housing.
As we look forward to inventories rising in the spring there may be some good opportunities right now. With the imbalance of low inventory and the number of buyers right now there is great potential for new listings. I’ve heard realtors saying that they’ve shown their clients everything that’s currently on the market and their waiting for new listings to become available. I’ve also seen numerous instances lately where a listing receives 3-4 strong offers as soon as it hits the market. This could be a great opportunity to help homeowners that are currently upside-down to list their properties. With limited competition, there’s potential to receive offers that could help them get out from under their current property and shop for something else.
The other positive spin is that there was an increase in released deeds of 15.5% from the 3rd to 4th quarters of 2011. “Real estate activity perked up a bit during the fourth quarter, which would reflect some very recent growth in employment and some mild increases in home prices,” McMaken said. With many qualified borrowers waiting for more listings to hit the market hopefully this trend can carry into 2012.
Let Mark or me know if you have any questions or if we can help with your mortgage needs. Thank you, Joel Houwer.
We also have to tell you that here in Colorado we are regulated by the division of real estate and now you know.
More on the G-Fees 0
A few days ago Joel posted an article on G-Fees or Guarantee Fees and how rates on Conventional loans will be going up due to the fact that Mortgage borrowers are being saddled with paying the Temporary Payroll Tax Cut Continuation Act of 2011. Interesting how a “tax cut” is still costing someone money and that someone could be you if you are looking to buy or refinance soon. Now they not be calling this a tax increase but since you may have to pay more money for a government action, it is the same thing as a tax hike to you. In addition, even though the Payroll Tax Cut Continuation is being called “Temporary”, I doubt if this increase in G-Fees will be “Temporary”. A wise man once said “There is nothing more permanent then a temporary tax”. At any rate, in that article Joel correctly pointed out that there will be interest rate hikes of around one eighth or one quarter percent on conventional loans but no interest rate hikes on FHA loans.
However, after a little more research we have come to find out that even though FHA rates are not going up, It looks as though FHA Mortgage Insurance Premiums may rise to help pay for this Temporary Tax Cut. I do not have any specifics at this time but as soon as I do, I will get them posted.
The bottom line is that if you are looking for a home or are thinking if refinancing, it would be better to do it sooner then later.
More to come.
Let us know if we can answer any questions.