By BRENT KENDALL
December 2011
The Justice Department faces the daunting task of tracking down more than 210,000 alleged victims and determining how to compensate them, following last week's $335 million fair-lending settlement with Bank of America Corp.'s Countrywide unit.
Minority borrowers who suffered the greatest harm from Countrywide's allegedly discriminatory mortgage-lending practices could be the most difficult to locate, observers say, because they are the victims most likely to have lost their homes to foreclosure and subsequently moved several times.
"It's going to be really difficult to find those families," said Janis Bowdler, a policy director at National Council of La Raza, a Latino civil-rights group.
The landmark case is also the first by the Justice Department that accuses a lender of steering borrowers to more costly mortgages, creating novel and possibly difficult questions on setting monetary payments for some victims. For example, how should the government compensate a family that both lost its home and was unfairly steered into a more costly subprime loan?
"It's not easy to calculate that kind of thing as a dollar amount," said Nina Simon, director of litigation for the Center for Responsible Lending. "No statistical model could compensate someone for that kind of harm."
The agreement, announced last Wednesday, was the largest residential fair-lending settlement in history. It resolved allegations that Countrywide and its subsidiaries engaged in a widespread pattern of discrimination against black and Hispanic borrowers from 2004 to 2008. If you think your are a victim Contact Bank of America...
Friday, December 30, 2011
Wednesday, December 7, 2011
Lengthy Time on Market Keeping Short Sale Inventory High
Lengthy Time on Market Keeping Short Sale Inventory High
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October 2011
By: Oscar Wei, Senior Research Analyst
California home sales declined slightly on a month-to-month basis, but continued to improve year-over-year for the third consecutive month in September. There were 487,940 sales of existing single-family homes in September, an increase of 4.1 percent from September of last year, but a decrease of 2.1 percent from 498,320 sales in August. The statewide median price dropped 3.2 percent from August and declined in year-to-year terms for the eleventh consecutive month, falling 8.3 percent from $313,460 to $287,440.
The supply of housing continued to be lean at the state level, with an unsold inventory index of 5.1 months for September, a slight increase from 5 months in August but a decline from 5.9 months in the same month of last year. However, inventory levels varied considerably across segments of the market. As discussed in last month’s article, inventory levels are tightest for Real Estate Owned (REO) properties, followed by equity or non-distressed sales, with short sale inventory considerably higher. In September, the unsold inventory index levels for these categories were 2.6, 5.9, and 7.9 months respectively. But with the short sale median price averaging nearly 40 percent higher than the REO median price since the start of the year, the question arises, why are short sale inventories so much higher than inventory levels for the other categories?
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October 2011
By: Oscar Wei, Senior Research Analyst
California home sales declined slightly on a month-to-month basis, but continued to improve year-over-year for the third consecutive month in September. There were 487,940 sales of existing single-family homes in September, an increase of 4.1 percent from September of last year, but a decrease of 2.1 percent from 498,320 sales in August. The statewide median price dropped 3.2 percent from August and declined in year-to-year terms for the eleventh consecutive month, falling 8.3 percent from $313,460 to $287,440.
The supply of housing continued to be lean at the state level, with an unsold inventory index of 5.1 months for September, a slight increase from 5 months in August but a decline from 5.9 months in the same month of last year. However, inventory levels varied considerably across segments of the market. As discussed in last month’s article, inventory levels are tightest for Real Estate Owned (REO) properties, followed by equity or non-distressed sales, with short sale inventory considerably higher. In September, the unsold inventory index levels for these categories were 2.6, 5.9, and 7.9 months respectively. But with the short sale median price averaging nearly 40 percent higher than the REO median price since the start of the year, the question arises, why are short sale inventories so much higher than inventory levels for the other categories?
Saturday, December 3, 2011
Renting VS Buying
Renting Versus Buying: 2011
This year California housing market conditions make a strong and compelling case for homeownership. With prices still well below the historic highs of just a few years ago and attractive mortgage rates, qualified buyers have a unique opportunity to own their own home.
The Monthly Savings of Buying Looks Enticing…
As seen to the right, a rigorous analysis of renting versus buying hears this conclusion out. As shown in the following chart, the monthly housing costs (principle, interest, taxes, and insurance or PITI) associated with buying a median-priced home of $301,430 is $1,590 (Fourth Quarter 2010 median priced home in California). This assumes the buyer is making a 20 percent downpayment and financing with a 30-year fixed rate mortgage at 4.62 percent. In comparison, the median rent on a three-bedroom two-bath apartment with renter’s insurance in California is $1,810. That means buying a home would save the homeowner $220 per month when compared to renting and the homeowner would save over $2,600 a year.
Renting Versus Buying in 2011
Renting Versus Buying Buying Median
Priced Home
Renting a
3Bdr/2Ba
Apartment
Mortgage Payment vs Rent $1,240 $1,790
Taxes & Insurance $350 $20
Total Monthly Housing Cost $1,590 $1,810
Monthly Housing Cost Savings Calculator
Out-of-Pocket Cost Savings of Buying
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Homebuyer Monthly Savings = $220
Homebuyer Annual Savings = $2,640
Homebuyer 5-Year Savings = $13,200
Assumes a 20% downpayment, a 30-yr FRM of 4.62%, and all
This year California housing market conditions make a strong and compelling case for homeownership. With prices still well below the historic highs of just a few years ago and attractive mortgage rates, qualified buyers have a unique opportunity to own their own home.
The Monthly Savings of Buying Looks Enticing…
As seen to the right, a rigorous analysis of renting versus buying hears this conclusion out. As shown in the following chart, the monthly housing costs (principle, interest, taxes, and insurance or PITI) associated with buying a median-priced home of $301,430 is $1,590 (Fourth Quarter 2010 median priced home in California). This assumes the buyer is making a 20 percent downpayment and financing with a 30-year fixed rate mortgage at 4.62 percent. In comparison, the median rent on a three-bedroom two-bath apartment with renter’s insurance in California is $1,810. That means buying a home would save the homeowner $220 per month when compared to renting and the homeowner would save over $2,600 a year.
Renting Versus Buying in 2011
Renting Versus Buying Buying Median
Priced Home
Renting a
3Bdr/2Ba
Apartment
Mortgage Payment vs Rent $1,240 $1,790
Taxes & Insurance $350 $20
Total Monthly Housing Cost $1,590 $1,810
Monthly Housing Cost Savings Calculator
Out-of-Pocket Cost Savings of Buying
SOURCE: CALIFORNIA ASSOCIATION OF REALTORS®
Homebuyer Monthly Savings = $220
Homebuyer Annual Savings = $2,640
Homebuyer 5-Year Savings = $13,200
Assumes a 20% downpayment, a 30-yr FRM of 4.62%, and all
Friday, December 2, 2011
Home Ownership is becoming less expensive than renting in some a growing number of cities
The Wall Street Journal
Stronger lure for prospective home buyers
With the monthly cost of owning a home more affordable now than at any point in the past 15
years, homeownership is becoming less expensive than renting in a growing number of cities.
Making sense of the story
The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the
nation’s largest metropolitan areas found that home values declined in all but five
markets compared with the second quarter, according to data from Zillow Inc.
Meanwhile, rent levels have risen briskly across the country and mortgage rates,
hovering around 4 percent, are the lowest in six decades.
As a result, monthly mortgage payments on the median priced home – including taxes
and insurance – are lower than the average rent levels in 12 metro areas, according to
data compiled by Marcus & Millichap.
Homeownership also is looking more affordable because after several years of declines,
apartment rents will rise approximately 4 percent this year, and rents are poised to pick
up even more momentum across the country next year, according to Marcus & Millichap.
Affordability could continue to improve as prices slide even lower in coming months.
Price declines are likely because the share of “distressed” sales, including bank-owned
foreclosures, tend to rise in the winter, when traditional sales activity cools
Stronger lure for prospective home buyers
With the monthly cost of owning a home more affordable now than at any point in the past 15
years, homeownership is becoming less expensive than renting in a growing number of cities.
Making sense of the story
The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the
nation’s largest metropolitan areas found that home values declined in all but five
markets compared with the second quarter, according to data from Zillow Inc.
Meanwhile, rent levels have risen briskly across the country and mortgage rates,
hovering around 4 percent, are the lowest in six decades.
As a result, monthly mortgage payments on the median priced home – including taxes
and insurance – are lower than the average rent levels in 12 metro areas, according to
data compiled by Marcus & Millichap.
Homeownership also is looking more affordable because after several years of declines,
apartment rents will rise approximately 4 percent this year, and rents are poised to pick
up even more momentum across the country next year, according to Marcus & Millichap.
Affordability could continue to improve as prices slide even lower in coming months.
Price declines are likely because the share of “distressed” sales, including bank-owned
foreclosures, tend to rise in the winter, when traditional sales activity cools
Wednesday, November 9, 2011
Short Sale - Exit your home gracefully and you may get paid $3000+
Exit Gracefully - Take Control of your Future
Loan modifications review at NO CHARGE...go direct to your lender at no cost to you.
You can take control of when homeownership is no longer affordable or the weight of homeownership has become too much to bear, MHA has a program that allows you to exit gracefully from the property Many lender pay $3,000+ in relocation assistance. Through Home Affordable Foreclosure Alternatives SM (HAFA SM), you won’t owe any more for the property after leaving, and you will be free from the threat of foreclosure. Learn more about this MHA program.
Each lender has their own Short Sale program and it is important to hire a informed Realtor to guide you through the process and avoid foreclosure.
When is a Short Sale is a situation in which the seller owes more money on the loan than the sale of the property will likely produce on the market and is unable or unwilling to bring money to closing.
If you have received a Notice of Default from your lender then you have formally began the foreclosure process. You can have a loan modiification and/or a short sale
Certified Short Sales Foreclosures Alternatives/Loan modifications AgentEmail me now: joy@joyelliott.com
Email me now: joy@joyelliott.com
Thank you for considering using Joy Elliott as your Realtor® Joy is a Certified Short Sale and Foreclosure Alternative agent.. Joy has been licensed with the State of California Department of Real Estate as a salesperson under the license number #01088147 since 1990. She has been a full time salesperson since 1998 experiencing all market conditions during her career, both good markets and bad markets. Although she as worked at other brokerages she has found a home at People's Choice Brokers because of its' progressive philosophy and web based tools. She also has the ability to totally control your transaction handling the sale, purchase, loan, 1031 exchange, probate and most especially First Time Buyers. She can competently handle your Short Sales transaction, or REO/Foreclosure sale and purchase; guide Investors and find foreclosured properties with her investment guidence and experience. Her communication is clear and complete believing that all transactions are a partnership with her clients, an an important one at that!
If you are seeking a personable, experience professional please choose Your "Joy" in Real Estate.....Joy Elliott .
Thank you for considering using Joy Elliott as your Realtor® Joy is a Certified Short Sale and Foreclosure Alternative agent.. Joy has been licensed with the State of California Department of Real Estate as a salesperson under the license number #01088147 since 1990. She has been a full time salesperson since 1998 experiencing all market conditions during her career, both good markets and bad markets. Although she as worked at other brokerages she has found a home at People's Choice Brokers because of its' progressive philosophy and web based tools. She also has the ability to totally control your transaction handling the sale, purchase, loan, 1031 exchange, probate and most especially First Time Buyers. She can competently handle your Short Sales transaction, or REO/Foreclosure sale and purchase; guide Investors and find foreclosured properties with her investment guidence and experience. Her communication is clear and complete believing that all transactions are a partnership with her clients, an an important one at that!
If you are seeking a personable, experience professional please choose Your "Joy" in Real Estate.....Joy Elliott .
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