The U.S. Treasury released statistics the end of July, 2010 for the Home Affordable Modification Program (HAMP) program. The statistics showed that loans that have been permanently modified had a re-default rate to be around 2% – 5.9% 60 or more days past due after modification and 1.7% 90 or more days delinquent. When those statistics came out, they received a huge outcry from analysts questioning the validity of these statistics.
The Treasury pulled the numbers and re-evaluated the statistics after retaining a third-party consultant to provide independent validation. A few weeks later, they corrected the re-default assessments as follows: 10% of six month old permanent modifications are 60+ days delinquent and 6% are 90+ days delinquent.
Analysts say that’s still too low and the rates will surely go higher the longer the program is in place. Up until six months ago, permanent modifications had been offered to only about 434,716 borrowers. The Treasury has cancelled the temporary modifications of 616,839 borrowers.
The analysts at Barclays are predicting a 60% re-default rate and Fitch Ratings projects 55-75%.
http://www.dsnews.com/articles/print-vie…
We have received questions from many concerned sellers on what is required of them when preparing their home for prospective buyers. Due to the current economy we are seeing a large increase in the number of short sale homes available for sale. Sellers in a short sale situation are concerned about the costs to prepare their home for sale so that it doesn’t sit on the market for a long time. They also ask what needs to be done in order to fix their home up for sale for the least amount of money.
Here are a few inexpensive tips that will help you stage and sell your home more quickly:
- Wipe down all of the walls and outlets of dirty fingerprints
- Shampoo Carpeting
- Wash the Windows and Screens
- Vacuum and Dust often
- Remove all books from bookcases
- Pack up the knickknacks
- Clean off everything on kitchen counters
- Put items used daily in a small box that can be stored away when not in use
- Re-Organize Closets and Pantry
- Make Minor Repairs – Touch up any holes, scratches or damage to the walls and if you have touch up paint laying around, touch up these areas
- Keep Lawns Mown and Watered
- Trim Shrubs & Plant Colorful Flowers
- Air out House of Musty or Pet Odors
- De-Personalize – Pack up personal photos and heirlooms. Buyers can’t see past personal artifacts and you want them to see the home.
- De-Clutter – If you don’t need it, sell it, donate it or throw it away
- Get a head start on packing, you will eventually need to do it anyway
Where is this week’s hot market???? It seems to be Laguna in Elk Grove. This past week we had two listings in the Laguna Area of Elk Grove that were almost SOLD faster than we could get them posted in the Multiple Listing Service and Internet.
There are some great deals out there for the price and size of the homes available. The homes were 2333 sq ft for $224,950 and 3161 sq ft for $310,000. There aren’t many areas where you can pick up a home for under $100 per sq ft. for a newer home.
If you are sitting on the fence waiting for your dream home in these areas, you need to move quickly. The first home received SEVEN offers within 3 days and the larger home received THREE offers in the 1st day and SOLD in 1 day.
Don’t miss out on your dream home. You need to be extremely active in your home searching and get out and see the homes the first day they come on the market as they may not be available tomorrow.
The Obama Administration said that through the existing Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets, the US Treasury will make $2 billion of additional assistance available to housing finance agencies in 17 states to implement local programs for unemployed homeowners struggling to make their mortgage payments. Yesterday the US Treasury Dept added $476.2 million to a $64 million state program. California received the largest share of the $2 billion awarded.
California Housing Finance Agency “CalHFA” will be the administrator of this program as the state’s affordable housing bank. In the capital region, unemployment has soared to 12.4 percent and the State of California has more than 42,000 laid off homeowners.
Beginning on November 1, 2010, the government will help those QUALIFIED individuals help make their mortgage payments (up to $1,500 month) while they look for another job. They aim to help 19,000 make a few months of mortgage payments between November and next July and 23,000 will receive help in the next two years.
Qualifications for this program:
- Homeowners must be out of work
- Eligible for unemployment benefits
- Live in the home tied to the problem
- They must be FEWER than 90 days behind on mortgage
- Meet LOW & MODERATE income guidelines (generally less than $70,000 for couples in El Dorado, Sacramento & Placer counties
- EXCEPTION: Loan must be purchase money mortgage and NOT a refinance
To find out additional information at the KEEP YOUR HOME website at http://www.keepyourhomecalifornia.com/ or call (916) 373-2585.
In the past 32 years working in the real estate industry, I have not experienced a 4-1/2 % interest rate on a 30-year fixed rate loan. It is time to give a lot of thought to purchasing a home in this market.
Are you concerned that home values may decline?
Sure, it is possible but will you ever see 4-1/2% again? That equates to $450 for every $100,000 in the purchase price of your home. Can you rent for that monthly payment? I doubt it. Lets also not forget the tax benefits of owning your own home and the freedom of making your house a home for you and family.
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