There’s a lot of hype about refinancing mortgages. You’ll hear, “Rates have never been lower!” or, “Refinance now to lock in your savings!” There are even special products like “streamlined” refinancing.
Like anything else, you need to determine if a refinance is right for you based on the specifics of your mortgage. Here are some guidelines to get you started:
Find out what Dave Ramsey says about refinancing your mortgage at daveramsey.com
One in 10 homeowners with a mortgage face foreclosure as government aid programs fall flat
By ALAN ZIBEL , Associated Press
One in 10 American households with a mortgage was at risk of foreclosure this summer as the government's efforts to help have had little impact stemming the housing crisis.
About 9.9 percent of homeowners had missed at least one mortgage payment as of June 30, the Mortgage Bankers Association said Thursday.
That number, which is adjusted for seasonal factors, was down slightly from a record-high of more than 10 percent as of April 30.
In a worrisome sign, the number of homeowners starting to have problems with their mortgages rose after trending downward last ..... read the complete artcile published in the Star Tribune
Even in the hardest hit markets, there are still properties priced well enough and in good enough condition to interest buyers. Those houses attract offers and sell. Houses that aren’t priced and staged competitively sit. It’s not complicated. It’s really that simple.
For your house to stand out from the crowd, you’ll have to listen to what buyers are telling you and make sure your house is priced well enough and in good enough condition to stand out from the competition.
Watch the video
Published by Jay Papasan, VP of Publishing and Executive Editor Keller Williams Realty
In general, sellers have gotten more realistic in pricing their homes than they were right after the housing bubble burst, but agents say that many still don't grasp how much they must concede to close a deal. And buyers are still spraying lowball offers around in hopes that sellers will be desperate enough to bite.
Go to CNNMoney.com to read the entire article by Beth Braverman.
Today, despite the array of federal programs, prices have declined almost 30% from their peak, the banks had their crisis, and, without a real estate bubble, housing is no longer a driver of GDP growth. The game of taking cash out of a refinancing during a bubble market is over, so housing is not likely to drive consumer spending.
Read more published in the Wall Street Journal
NEW YORK (CNNMoney.com) -- With home sales plunging to their lowest level in 15 years, economists warn that a double-dip in housing prices is just around the corner, threatening to further slow the overall recovery.
Existing home sales sank 27.2% in July, twice as much as analysts expected, to a seasonally adjusted annual rate of ..... read the entire article by Hibah Yousuf, staff reporter and published in CNNMoney.com
Related articles published in . .. .
WASHINGTON - Home prices in many parts of the country scream bargain, and mortgage rates haven't been this low for decades. So why are houses across the nation sitting on the market for so long?
Potential buyers are hesitating because they think home prices still have further to fall. Potential sellers — those with the stomach to put their homes on the market at all, anyway — are reluctant to lower their prices.
Predictions that home prices may drop into double digits continue to drag down sales. Bill Gross, managing director of the world's biggest bond fund, PIMCO remarked that the idea of a rebound anytime soon is "ludicrous."
NAR July Existing Homes Sales Fall 27.2%
U.S. Existing Home Sales in Record Plunge
published in BloombergNews.com
U.S. home sales plummeted in July as potential buyers stayed on the sidelines, spurring fears of renewed weakness in housing prices and the broader economy.
Existing-home sales declined 27% in July, spurring fears of renewed weakness in housing prices and the broader economy.
published in eCreditDaily.com
By ALAN ZIBEL
Sales of previously occupied homes plunged last month to the lowest level in 15 years, despite the lowest mortgage rates in decades and bargain prices in many areas.
July's sales fell by more than 27 percent to a seasonally adjusted annual rate of 3.83 million, the National Association of Realtors said Tuesday. It was the largest monthly drop on records dating back to 1968, and sharp declines were recorded in all regions of the country.
The plunge in home sales also magnified fears about the broader economy.
Adopting to Tighter Rules After Collapse, Scammers Turn to More Complex Plots
New data suggests that mortgage fraud—which got tougher to pull off after the collapse of the U.S. real estate market—is returning in a big way.
Data prepared for The Wall Street Journal by research firm CoreLogic, examining about seven million home loans made by hundreds of lenders, show that losses from mortgage fraud—ranging from falsified credit reports to identity theft—rose 17% last year after declining 57% in the two years after its 2006 peak.
In 2009, $14 billion in loans, or about 0.7% of all mortgage loans made in the U.S., were originated with fraudulent application data.
The figures are a fraction of the mortgage market, but the increase is sharp.
Read the complete story by ROBBIE WHELAN and published in the Wall Street Journal
The program is intended to help those at risk of foreclosure by lowering their monthly mortgage payments. Friday's report from the Treasury Department suggests the $75 billion government effort is failing to slow the tide of foreclosures in the United States, economists say.
More than 2.3 million homes have fallen into foreclosure since the recession began in December 2007, according to foreclosure listing service RealtyTrac Inc. Economists expect the number of foreclosures to grow well into next year.
"The government program as currently structured is .... to read the full story by MARTIN CRUTSINGER and published in Breitbart.com check here
With so many new agents coming into their first short sales, the following info could be helpful. Most of you already know these things, but take a run through this with your afternoon cup of coffee and there may be an item or two that raises a brow even with even the most experienced short sale listing agents.
1. If a property is foreclosed upon, borrower is released of all debt.
Borrower is only released of the debt if lender forecloses via advertisement. If lender forecloses via litigation, then borrower is still responsible for the debt. If there is a second or third mortgage, borrower is still responsible for those even after end of redemption period.
2. After the sheriff sale, the second mortgage is gone.
The second mortgage still has a lien on the property after the sheriff sale. The 2nd mortgage lien only goes away at the end of the redemption period. Therefore, if seller is redeeming from sheriff on foreclosing mortgage in a short sale, any other mortgage holder is entitled to the proceeds and must be negotiated for release of lien via short sale.
3. If a borrower has filed bankruptcy, the second mortgage “goes away”.
Even if the debt on all mortgages on the property were included in the bankruptcy, it is only the borrower’s obligation under the note that is forgiven. The lender(s) still hold their lien on the property and must be negotiated and/or settled to obtain a release of that lien in order for sale to go through.
4. If a short sale is approved and closed, seller doesn’t owe anything to the lender(s).
It depends on the terms and verbiage in the approval letter. The letter must state release of lien AND satisfaction of debt (or similar verbiage) or seller is still responsible for the deficiency balance.
5. If a short sale approval includes seller signing a promissory note, the seller can just “bankrupt” it later.
Seller may not be eligible for bankruptcy. And even if they are, they may not be able to bankrupt new note as they signed it with intention of never paying. New note may prohibit bankruptcy or may not be able to be included in bankruptcy. Seller should discuss with bankruptcy attorney before ever signing a new promissory note with that intent.
6. A seller can buy a new house while credit is still good and then just short sale the old house.
In order to obtain a mortgage on the new house, seller had to prove they can afford both house payments. They cannot now claim they can’t afford payment on the old house, therefore, in most cases, no hardship and short sale may likely be denied or approved with terms at high cost to seller.
7. It’s good to submit any short sale offer to lender to “get the ball rolling.”
Short sale negotiations are buyer specific. In most cases, when bad offer is rejected and new offer is submitted, the whole process starts over from the beginning.
8. A bad offer is better than no offer.
A bad offer still takes time to negotiate out. When bad offer is being worked on, showings diminish. When bad offer is rejected or countered at terms buyer won’t accept, your seller is now a couple of months closer to foreclosure and time has been wasted.
9. All short sale offers must be submitted to lender.
All offers must be submitted to the seller. Seller can reject any offer their agent feels will not be approved by lender, therefore, it is not submitted to the lender for the reasons above.
10. Deposit of earnest money isn’t important.
Get earnest money deposited as it shows buyer’s sincere intent to follow through with purchase. But most importantly, buyer and their agent will have to provide you with cancellation to get earnest money back, therefore, you and seller will know immediately if buyer has “walked.”
11. A seller will have to pay income taxes if a 1099 is issued after short sale.
It is common through tax law and/or seller insolvency that seller will not have to pay taxes on the income stated on the 1099. It is case by case and seller needs to consult tax professional.
12. A seller won’t get a 1099 if property goes through foreclosure.
Seller may receive a 1099 on lender’s loss via foreclosure. Same rules apply as in #11.
13. Bank of America is the worst lender to deal with in short sales.
Love the new Bank of America in short sales! They are easy to work with and time is down to about eight weeks plus investor. US Bank is the most difficult!
14. A realtor should refer out their short sale listings if they lack experience.
Don’t give away a part of your network. Get all the short sale education you can, it’s here to stay for years. Let your broker and Markve and Zweifel Attorneys help you. After completion of a successful short sale, you will have a referral source for life!!
Wendy Haisley
Markve & Zweifel, Attorneys at Law, PLLC
11106 86th Avenue North
Maple Grove, MN 55369
Phone: 763-450-1624
Fax: 763-420-7234
Email: wendy@mzlaw.us
"Solving the foreclosure crisis....one homeowner at a time"
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