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14July

First Preston HT Leaders Sponsor Benefit Concert for Fire Fighters

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First Preston HT’s community outreach extended this past weekend to Palo Pinto County, Texas in response to wildfires that ravaged 3.5 million acres in Texas so far this year.  We were a key sponsor of the first Buckets & Boots Benefit Concert for firefighters. Over 4,000 people attended and the event netted over $425,000 for equipment, repairs and training.

Concert headliners included Lee Ann Womack, Pat Green, Stoney LaRue, Randy Rogers, and Wade Bowen—a who’s who of country artists.  They rocked the crowd at the “Rocker B Ranch” with performances that lasted well into the night.

Craig James, Nancy Richards, Lance Byrd and Mike Patterson were the four board members behind Saturday’s Buckets and Boots fundraising concert.

Photo courtesy of MineralWellsIndex.com

For Chief Ronnie Ranft and all area fire fighters, April was a month of unimaginable devastation and disruption.

Those who battled the flames had to perform “way beyond their resources. It changed our community, said the Chief, but it also brought us together.”

In the aftermath of such devastation, silver linings are illusive. The Buckets and Boots Benefit Concert honored area fire fighters, encouraged local residents and delighted fans. It was a star-studded boost of morale for a recovering region. Read more»

29June

Emergency Homeowners Loan Program – A Lifeline for Unemployed Homeowners

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Do you know someone for whom a recent pink slip may lead to foreclosure? For 35,000 distressed and unemployed homeowners, help is on the way.

On Monday, June 20th HUD and NeighborWorks America announced a program designed to “buy time” for unemployed homeowners in jeopardy of foreclosure.

Congress appropriated one billion dollars for HUD to implement the Emergency Homeowners Loan Program (EHLP). It is part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

“The program will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment, underemployment due to economic conditions or a medical condition.” Qualified applicants could receive an interest free loan for use in paying a portion of their mortgage for up to two years or a maximum of $50,000.00.

Get the Word Out

The challenge is getting the word out to those who need it.  As a real estate professional, it pays to know about options such as this. The deadline is looming, so add value in your community by sharing the news in your social networking and newsletters.

Application Deadline

The deadline to apply is July 22, 2011. For full details and a screening worksheet refer homeowners to www.FindEHLP.org or 855-FIND-EHLP (346-3345).

Under the program, 27 States and Puerto Rico are eligible. The program’s predecessor the “Hardest Hit Fund” targeted 18 states with the most severe unemployment hardships.

For a list of the 27 eligible states, follow this link to the official HUD press release or check here for a DSnews.com overview.

Find out more about First Preston HT and real estate industry news, visit us at FirstPrestonHT.com or find us on Facebook.

24June

HUD Grant Reduces Homelessness – Reunites Families

“It’s heartbreaking to realize that thousands of children live in foster care or forced to live with other families simply because their parents can’t afford a home,” said HUD Secretary Shaun Donovan. “The funding provided today will keep thousands of families together under one roof.”

On June 2, 2011, HUD announced that it will release 1,931 Housing Choice Vouchers to families who are in jeopardy of being forcibly separated because the parents cannot afford adequate housing. Many families have already fallen victim to such separations. HUD’s Family Unification Program (FUP) seeks to reunite “nearly 3,500 children with their parents.”

The program will also provide rental funding for young adults (ages 18-21) who have “aged out” of the foster care system—but have no place to live.

The plan makes practical and financial sense. According to statistics from the National Center for Housing and Child Welfare, the annual cost to place one family into foster care is $56,892 per year as compared to $14,000 per year to provide rental assistance and supportive services.

By reuniting 3,500 children with parents, HUD expects to generate a savings of $74 million in annual foster care operating expenses.

Click here for program details and to learn which states received the funding.

Find out more about First Preston HT and real estate industry news, visit us at FirstPrestonHT.com or find us on Facebook.

22June

It’s Hurricane Season – Are You Prepared?

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The Atlantic hurricane season began Wednesday, June 1st. According to the National Hurricane Center (NHC) this will be an “above average” season featuring “12-18 named storms, six to 10 hurricanes and three to six major hurricanes”—at a category 3 or above.

As you can tell by watching the news, it’s also “tornado season.”  For the record, it began in April and runs through July—“May and June are peak months.” So for at least the next month, until the end of tornado season, depending on location, many are facing double jeopardy on the severe weather front.

According to NHC spokesman, Dennis Feltgen, “we need to be preparing right now.”

Real estate agents spend a lot of “windshield time” checking properties. If you found yourself in the car showing properties (or leaving soccer practice) and you spotted a tornado on the ground, what would you do?

The Ohio Committee for Severe Weather Awareness (OCSWA) recommendation is below:

“If you’re driving and spot a tornado, seek shelter in a sturdy well constructed building if at all possible, or find a ditch or culvert to climb into, covering your head.  Don’t stay in your vehicle or seek shelter under an overpass, which are among the worst places to be if a tornado strikes.”

If you are inside– (OCSWA) recommends that you follow the “DUCK” principle.

D: Go down to the lowest level.

U: Get under something.

C: Cover your head.

K: Keep in shelter until the storm has passed.

Action Assignment:

Emergency preparedness experts recommend a Family Disaster Plan from the National Hurricane Center.

 

10June

HomeTelos Celebrates 10th Anniversary

What do HomeTracker, BidSelect, and Lender Center have in common?

They are smart technology systems which have revolutionized the way REO Assets are managed and sold. They were all developed, launched and brought to market by one company– HomeTelos.

They were the first to deliver an online real estate marketplace, making it possible to both showcase and purchase properties online 24/7.

Today, Friday, June 10th 2011, HomeTelos, a First Preston HT Company is celebrating its 10th year of innovative leadership in the field of asset management and intelligent technologies.

The company was founded by real estate professionals who needed solutions for online real estate asset and workflow management and marketing that did not exist. It has since become known for a cutting edge suite of scalable solutions and services designed to manage real estate assets from pre-foreclosure through REO listing and final disposition.

So, to the selling agents who have submitted over 1,000,000 offers, and to all of the homebuyers who are glad they did; thank you for making HomeTelos first 10 years—truly remarkable.

1June

Declining Market Creates Obstacle Course for Military

Imagine you are a member of the military who purchased a home before July 2006, and you and your family love the home.  Now, in the middle of a housing slump, you receive orders to relocate.

You immediately place your house on the market only to learn that it will not sell for enough to cover the balance on its mortgage.  You feel you cannot afford to “bring funds to the table to close the transaction.”  What would you do?  Would you lease the home—and trust a tenant to cover the note and handle the upkeep?  Would you leave your family in the house, make the mortgage payment and rent an apartment at your new destination?  Would you walk away from the mortgage and risk losing your security clearance and damaging your credit?

These options are being faced daily by servicemen and women who find that they “can’t afford to sell their home but they have orders to relocate,” says Katie Savant, Government Relations Deputy Director for the National Military Family Association.

In 2009, Congress and the Department of Defense devised a “mortgage assistance program” to address these issues.  However the program is financially overburdened by the sheer volume of requests for assistance. Such cases are especially prevalent in Nevada, California and Florida—where real estate markets deflated the most when the “housing bubble” burst.

What solutions do you feel are the most viable for military personnel and others caught in the growing problem of shrinking values?

20May

Smart Money is Chasing Real Estate – Lawrence Yun, NAR Chief Economist

“A huge volume of cash sales, supported by the recovery in the stock market, shows that smart money is chasing real estate,” according to Lawrence Yun, Chief Economist with the National Association of Realtors (NAR).

A recent report from economists at NAR indicates that both REO Sales and Short Sales are expected to continue on an “upward, albeit uneven, track through this year and next…” Yun provides a positive forecast for distressed property sales for the remainder of this year and next, projecting 5.3 million existing home sales this year, up from 4.9 million in 2010.  He expects 2012 sales of about 5.6 million.

Yun indicates the current makeup of buyers shows “sizable pent-up demand” from those characterized as traditional buyers who need mortgage financing in order to purchase a home.  Yun projected if mortgage standards/credit requirements were “returned to normal, safe standards,” home sales will expand by 15 percent to 20 percent.

Review the forecast and study results, and then let us know if you agree with these assessments and forecasts in your marketplace.

19May

Distressed Property Sales Up Over Prior Quarter

Distressed properties in the first quarter sold at a pace 8.3 percent higher than during the previous quarter.  A recent study by the National Association of Realtors reported that previously owned homes sold at the annual rate of 5.14 million units during the first quarter of 2011, an impressive 8.3 percent growth quarter-over-quarter.

Sales of distressed properties (REO and Short Sales) as a percentage of total market sales grew from 36 percent the prior year to 39 percent by quarter’s end.  The trend was recorded in 49 of 50 states and includes the District of Columbia.  The State of Vermont was the “outlier” with a reported 7.1 percent decline in sales of existing homes.

Average home prices declined from $166,400 in Q1 of 2010, to $158,700 in Q1 of 2011. The 4.6 percent price decline has sparked an uptick in sales.

The mix of home buyers included these categories:  repeat buyers, 47 percent; first-time home buyers, 32 percent; and investors, 21 percent.  The presence of “cash purchasers” grew from 27 percent to 33 percent quarter-over-quarter.

13May

The Most Affordable Homes in America: Top 10 Bargain Cities for Homebuyers

You have no doubt heard it said that cities with the fastest price appreciation are now the cities with the greatest deflation in home prices.  This holds true for many of the cities in the list below.  For example, Atlanta, GA “led the nation in new construction during the 10 year run-up before the bubble burst;” according to a newly released report by Deutsche Bank.  Atlanta, Georgia now has the “most affordable homes in America.”

Huge Advantages to Purchase vs. Rent

The study shows Atlantans who rent are now paying 151 % more per month than they could be paying if they purchased the equivalent property.  The median home price in Atlanta declined by 33% during the 2006-2010 housing crisis.  February 2011 sales indicate an additional 14% price drop versus the previous year.

Top 10 Best Cities for Homebuyers

1.      Atlanta, GA

2.      Orlando, FL

3.      Rochester, NY

4.      Cleveland, OH

5.      Tampa-St. Petersburg, FL

6.      Las Vegas, NV

7.      Jacksonville, FL

8.      St. Louis, MO

9.      Buffalo, NY

10.   Memphis, TN

Quality Report

There are many “Top 10” reports that leave us scratching our heads, but this report provides thorough documentation on how each city earned its spot on the list.  It also assesses how much money is being “left on the table” by those who choose to ‘rent vs. buy’ in each market.  This is a great time to ensure the rent versus buy statistics are part of our marketing efforts.

HUD-Owned Home Perks

Remember that qualified FHA borrowers (owner occupants) can close with only 3.5% down. Better still, some markets feature the “$100 Down Payment” program.  Ask your real estate professional for details. And last but not least, most FHA mortgages are assumable loans—which can be a huge future selling advantage if interest rates continue to climb. Check with your Lender for details.

Visit our website for more information about available properties or about buying and selling affordable homes.

11May

Fannie Mae’s Energy Improvement Program

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While it’s no secret that gas prices have escalated, less has been said about escalating housing costs in the form of high utility bills.  If you have wished for a way to reduce monthly energy bills — a new Fannie Mae energy improvement mortgage add-on program may be the answer you’ve been looking for.

Fannie Mae’s new energy improvement feature can be used to make energy improvements to existing homes. For qualified applicants, instead of offering a separate loan/mortgage for energy upgrades or retrofits alone, Fannie Mae’s new program  feature allows the upgrade of an existing home through a purchase or re-finance mortgage at current interest rates. It alleviates the need for two separate mortgages/loans.  The principal can be repaid with the energy savings generated by the improvements.

It folds the cost of the improvements capped at up to 10 percent of the estimated market value of the home– following the energy efficiency enhancements—into the mortgage amount itself. The new program is available through participating lenders across the country.  The program requires an energy audit by a certified Home Energy Rating Systems (HERS) specialist.  The audit is to ensure that the proposed energy upgrades are legitimate and truly cost-justifiable.

The features of the new Fannie Mae product are:

The financing of energy improvements found by a RESNET Home Energy Rating to be cost-effective of up to 10% of the as-completed appraisal.  This amount is subject to standard Fannie Mae LTV, CLV and HCLTV ratios.

  • The cost of the home energy rating can be included as the cost of the energy improvements.
  • Appraisers will be responsible to determine the as-completed value of the home based upon the energy improvements that were made.
  • Appraisers will also be responsible for verification that the energy improvements being financed were completed.
  • Only single family homes qualify.
  • Manufactured houses and cooperative units are not eligible.