Fixed-mortgage rates fall below 5%

Fixed-mortgage rates fall below 5%
The average interest rate on 30-year, fixed-rate mortgages for the week ending Jan. 9, decreased to 4.89 percent from 5.07 percent, according to the most-recent survey from the Mortgage Bankers Association.

Credit restrictions, negative or minimal amounts of home equity, and high levels of outstanding debt have resulted in the denial of nearly 70 percent of borrowers’ applications to refinance.

To read the full story, please click here:
http://www.chicagotribune.com/business/chi-biz-mortgage-rates-below-5-percent-jan15,0,7714045.story

Source: CAR.org 1/15/09

Scamming Again!

ATTENTION COLDWELL BANKER REAL ESTATE PROFESSIONALS: It has come to our attention that various Internet solicitations have appeared with increased frequency on such posting boards as Craigslist.com encouraging consumers to deposit escrow funds to secure an apartment via payment through Western Union payable to www.coldwellbanker.com.  Please  be advised that Coldwell Banker Real Estate LLC and coldwellbanker.com are not in any connected to this solicitation which is in fact fraudulent.  Craigslist, Western Union and law enforcement are being advised.  We encourage you to share this notice with your customers to minimize confusion and loss of funds. Thanks in advance for your cooperation. William J. Groble General Counsel Coldwell Banker Real Estate LLC (p) 973-407-7155 William.groble@realogy.com

Get ready to buy in 2009

Get ready to buy in 2009
2008 marked a year of rising home sales, falling home prices, a record number of foreclosures, the conservatorship of Fannie Mae and Freddie Mac, rising unemployment, and the official declaration of a recession that began in December 2007.  Unfortunately higher rates of unemployment mean more foreclosures, which could continue to drive down home prices, making 2009 a great time to purchase a home.

MAKING SENSE OF THE STORY FOR CONSUMERS

 

·       Consumers considering the purchase of a home should first get their credit and finances in order.  Reducing spending, limiting credit card balances to no more than 25 percent of the available balance, and monitoring credit reports are highly recommended by most financial experts.  Even borrowers with less than ideal credit scores and credit histories still may qualify for a home loan.  Some lenders will be more forgiving if the borrower has started meeting monthly debt obligations in the last six to 12 months.  Consumers can view their credit reports from Experian, Equifax and Transunion by visitingwww.annualcreditreport.com.  The free credit reports will provide a borrower’s credit history, but not the credit score.  The credit score can be purchased for approximately $10 from Equifax.

·      Good credit doesn’t mean simply paying bills on time; it also can mean job stability.  Most lenders require borrowers to have worked for the same employer for at least one year, possibly longer before they will approve the home loan application.  For self-employed individuals, most lenders will want at least two years of tax returns before approving a conventional loan.

·      It’s very important that borrowers know early on in the homebuying process how much house they can afford, and there are various ways to determine this. Borrowers can visit a local lender to get prequalified or preapproved for a loan; or go online.  Lenders will review the borrower’s income, debt, assets and liabilities to determine the maximum mortgage payment the borrower can afford.  Web sites, such as www.bankrate.com, also can help determine this. 

·      The services of a REALTOR® should be used in every real estate transaction. REALTORS® can provide an overview of current market conditions, coordinate home tours, and assist with making offers and counteroffers, as well as help with the myriad of details involved in every real estate transaction.

·      Reviewing the purchase contract and loan documents also is extremely important, especially if purchasing a property through a short sale or foreclosure.  If the property is owned by the bank, the home-buying process could take much longer than a traditional transaction.  It is recommended that borrowers ask their attorney, or broker to explain anything in the contract and/or loan documents that the borrower doesn’t understand.  

Source: CAR

Where Buyers Are Picking Up Housing Bargains

Where Buyers Are Picking Up Housing Bargains 
Smart investors in all parts of the country are picking up fabulous housing bargains.

Bill Leon, president of Florida’s Broward (County) Real Estate Investors Association, has been buying and selling investment property for years, but he thinks today’s deals are unprecedented. “People are afraid not to sell because they don’t know where the bottom of the market is,” he says.

David Dweck, a hard-money lender, believes the best buys are in what he calls “workforce housing,” aging bungalows on small lots. They are selling for as little as 10 cents on the dollar compared to what they were going for in 2006, he says, then fixed up and resold or rented quickly. 

"People have been beaten down by fear, negativity, constant media bombardment," says Dweck. "There is a silver lining. The future looks bright."

Sheresa Pompay, an associate with Hunt Real Estate ERA in Chandler, Ariz., says bad publicity is good for real estate investors. "I love the people who read about all the gloom and doom, because they stay on the sidelines and go, 'It hasn't hit bottom.' Whatever. By the time everyone jumps back in, we'll be out and doing something else."

Fortune magazine predicts that these will be the 10 worst-performing real-estate markets – and the best places for finding bargains – in 2009:

Los Angeles, down -24.9 percent
Stockton, Calif., -24.7 percent
Riverside, Calif. -23.3 percent
Miami-Miami Beach, -22.8 percent
Sacramento, -22.2 percent
Santa Ana-Anaheim, Calif., -22 percent
Fresno, Calif., -21.6 percent
San Diego, Calif., 21.1 percent
Bakersfield, Calif., -20.9 percent
Washington, D.C., -19.9 percent

10 Cities to Look at If You're Looking for Work

10 Cities to Look at If You're Looking for Work 
If you’re looking for a job, try Madison, Wis. It tops the list of places where jobs are plentiful, according to a survey by Ajilon Professional Staffing.

Ajilon researchers relied on statistics from the U.S. Bureau of Labor to identify places with a low unemployment rate and a high number of new jobs created in the last six months. Then it compiled information from its own professionals to find the cities with the best job opportunities.

Madison has a wide range of industries, plus it is the seat of state and county government. 

Here are the top-10 cities where employers are hiring:

Madison, Wis.
Washington, D.C.
Boston, Mass.
Richmond, Va.
Milwaukee, Wis.
Pittsburgh, Pa.
Baltimore, Md.
Seattle, Wash.
Houston, Texas
Dallas, Texas

Source: Forbes, Tara Weiss (01/05/2009)

GREEN TIP OF THE WEEK: USE BEFORE RECYCLING

GREEN TIP OF THE WEEK: USE BEFORE RECYCLING
Collect 8.5- by 11-inch paper that's been printed on one side by your printers and fax machines, designate a paper drawer on each printer, or as many printers as practical, for this paper, and use it to print drafts

FHASecure Shut Down at Year-End

Despite pleas from consumer advocates and trade groups, HUD will end its FHASecure program on Dec. 31, explaining that continuing the program, which insured refinancings for delinquent borrowers, would hurt the FHA financially. 

FHASecure is a refinancing option that gives home owners with non-FHA mortgages the ability to refinance into a FHA-insured mortgage. With FHASecure, the lender will not automatically disqualify home owners because they are delinquent on their loan, and the lender may offer a second mortgage to make up the difference between the value of their property and what you owe. 

The cost of keeping the initiative in place "would have to be offset by either substantial across-the-board single-family program premium increases or the suspension of FHA's single-family insurance programs altogether," according to Federal Housing Commissioner Brian Montgomery. 

In a joint letter to HUD, consumer advocacy groups, along with the Center for Responsible Lending, insisted that the FHASecure program is more helpful than the Hope for Homeowners program because the absence of legislation governing the effort enables it to "adequately adapt to market evolutions." 

The groups had hoped to win FHASecure an extension at least through 2009. 

Source: American Banker (12/30/08) Marc Hochstein

GREEN TIP OF THE WEEK: TELECONFERENCE ONLINE AND SAVE

GREEN TIP OF THE WEEK: TELECONFERENCE ONLINE AND SAVE
Log in and save money, drive time, and gasoline when a face-to-face meeting is not necessary. There are many ways to conference online, including using Skype, which offers free calls and free conferencing. If visuals are required, try GoToMeeting , a provider of online meeting and collaboration software.