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.

 

6May

HUD’S “PowerSaver Program” Makes Energy Upgrades Affordable

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The U.S. Department of Housing & Urban Development (HUD) Secretary Shaun Donovan has announced a new energy upgrade program that offers creditworthy borrowers low-cost loans to finance energy improvements on
homes. The loans will be backed by the Federal Housing Administration (FHA). Under the program, qualified borrowers will be able to finance up to $25,000 in energy efficiency upgrades on a primary residence.
Energy Mortgages – The New Thing is Going GreenEnergy Cost
The announcement highlights the emergence of a new category of mortgage loans, referred to as ‘Energy Mortgages.’ Other major governmental entities have launched their own versions of ‘energy mortgages.’ Some target existing primary residences; others are for homes about to be purchased as primary residences. HUD’s program applies only to principal residences that are detached and single-family homes. PowerSaver offers preferential terms and “most participating lenders are expected to encourage owners to sign up for an energy efficiency analysis by a certified specialist.” The energy audit should help to document the projected amount of potential monthly savings.
More Details
The ‘energy audit’ should demonstrate a potential monthly energy savings sufficient to repay the amount of the loan. Borrowers must demonstrate creditworthiness. Qualifications include a minimum FICO score of “660,” and a debt-to-income ratio below 45 percent. Interest rates are currently between 5 percent and 7 percent, with up to a 20-year repayment period.
Positive Impact
It is estimated that the program will assist 30,000 homeowners and create 3,000 jobs. Many qualifying homeowners may see this as great way to lower energy bills and repay the loan with the savings earned.
Approved Lenders
Eighteen lenders have been selected to participate in the FHA “PowerSaver” pilot program. Click here for a FHA’s “PowerSaver” fact sheet.
4May

Accelerate Your Business By Successfully Selling HUD Homes!

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Are you interested in ramping up your business in 2011? The Federal Housing Administration (HUD) has one of the largest portfolios of affordable housing in the country. For savvy Realtors®, this represents a tremendous opportunity.
Join us for a FREE SEMINAR entitled “Successfully Selling HUD Homes.” Come and learn how to accelerate and re-energize your business while “Getting America’s Homeownership Back on the Road”.  The seminar will be held on Sunday, June 12, 2011 at the Omni Hotel in downtown Fort Worth, Texas. Registration for the REO course precedes this year’s REO- Expo, which begins June, 13. Attending the Expo is not required for “Successfully Selling HUD Homes” registration and attendance. The workshop will be hosted by HomeTelos and taught by nationally recognized instructor Margo McKay- Broughton, who has trained over 50,000 agents in 26 states. The course is comprehensive and will highlight latest updates from HUD and HomeTelos, HUD’s Asset Manager Contractor.
Join us for a high-energy, interactive seminar that can help to propel your business to the next level. Limited seating so register today! While attendance at REO Expo is not required to participate in this training, the planners of the conference have agreed to extend a $100 early registration discount until Tuesday, May 10th to those who do choose to attend. To get this discount, please use code HWFP when registering for the Expo.
4May

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

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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 recently released report by Deutsche Bank.  Atlanta now has the “most affordable homes in America.”


Huge Advantage 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 regarding 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 versus buy’ in each market.  This is a great time to ensure the rent-versus-buy statistics are part of our marketing efforts.

Added Incentive

Brokers and owner occupant buyers should visit www.homepath.com for details on the 3.5% home buyer incentive from Fannie Mae.  It’s nationwide.  Check the details to see if your dream home purchase qualifies.

Visit our website for more information about buying and selling homes of every style, size and price range.

21April

HUD Launches National Fair Housing Month

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The Housing Agency has announced National Fair Housing Month, a national media campaign with the theme of fair housing rights and responsibilities. Throughout the month of April the agency will engage in a series of community dialogues on a range of related topics.

Recently 108 nonprofits and fair housing agencies were awarded $41 million to educate the public and to work to prevent housing discrimination in mortgage lending, rental and sales practices. Many of the agencies will “test” real estate related professionals and/or landlords to insure that their business practices meet mandatory standards.  Others will investigate housing complaints and educate the public.

The education of immigrants and society in general is a major goal.  HUD conducted its first “Immigrant Housing Conference” in Omaha, Nebraska on April 14th.

The “Live Free” campaign will begin with print media. The goal of the campaign is to emphasize the importance of ensuring fair treatment of those in “protected classes.”  This year’s focus will be the prevention of discriminatory practices based on “national origin.”

Neighborhood listing brokers, this would be an excellent time for real estate professionals on your team to huddle to ensure that all team members are current and in compliance with  Fair Housing legislation as it relates to the practice of real estate. It’s central to best practices, it is good for business and it is the law.

Read more about grant awardees and their specialty functions and this month’s “Live Free” campaign.