Comments for Advantage Title Blog

Comment on Investors to the rescue of housing market by Investors to the rescue of housing market « Duane's World

Investors to the rescue of housing market « Duane's World — Mon, 18 Jul 2011 17:32:09 +0000

[...] Investors to the rescue of housing market [...]

Comment on Freddie Mac economist sees sunny economy in second half by Freddie Mac economist sees sunny economy in second half « Duane's World

Freddie Mac economist sees sunny economy in second half « Duane's World — Tue, 28 Jun 2011 20:53:02 +0000

[...] Freddie Mac economist sees sunny economy in second half June 28, 2011 at 8:33 AM | Categories: News | URL: http://wp.me/pPoVF-7u by JON PRIOR, http://www.housingwire.com/ Monday, June 27th, 2011 Freddie Mac Chief Economist Frank Nothaft said the overall economy should begin to accelerate in the second half of 2011 with an improved housing market close behind. Nothaft said with the continued support of the Federal Reserve, monthly job gains will continue, bringing the unemployment rate toward 8.6% by the fourth quarter, according to his blog post Monday. Mortgage rates, he said, should remain between 4.5% and 5% over the rest of the year and recent price drops pushed affordability even higher. Economic indicators sagged this spring. Unemployment inched up to 9.1% in May. Consumer confidence hit a six-month low and existing home sales plummeted 15.3% that same month. Confidence among small businesses and homebuilders lingers at historically low levels. Nothaft said consumers uncertain about the overall economy are holding back on purchasing “big-ticket items” such as homes. “Some potential buyers who have the means to buy are awaiting clearer signs that home values have firmed,” Nothaft said. When that occurs remains in question. The Standard & Poor’s/Case-Shiller Home Price Index officially double-dipped this spring. Research from Altos Research said values should bounce up and down for an extended period of time. And Capital Economics analysts said a lack of demand should keep prices from a consistent rise until 2014. But Nothaft said the rental sector is a lone bright sign in today’s housing market. The National Multi Housing Council reported new debt and equity financing became more available. Vacancy rates on buildings with at least five apartments dropped over the past year and monthly rents rose. “Even though near-term concerns over income and sales growth are restraining consumer spending, business hiring, and new building, a number of positive signs in the economy indicate that growth will continue and is likely to accelerate in the second half of this year,” Nothaft said. Anthony Sanders, a professor of real estate finance atGeorge Mason University, said with tumultuous changes coming to the housing market such as tightened purchasing standards and heightened guarantee fees at Fannie Maeand Freddie Mac, the future for housing remains cloudy. “Mortgage rates are very low. House price declines are slowing in many areas of the country and level if not increasing in others. Mortgage delinquencies have slowed down,” Sanders said. “But the economy is in a ‘soft patch’ and it is unclear how long that will last.” Nothaft remains optimistic, pointing to the encouraging signs in the rental market and noting home sales remain above last year’s pace when tax credits first began to dry up. “Look for a gradual improvement in housing activity in the coming year,” Nothaft said. [...]

Comment on 2 Big Banks Exit Reverse Mortgage Business by 2 Big Banks Exit Reverse Mortgage Business « Duane's World

2 Big Banks Exit Reverse Mortgage Business « Duane's World — Mon, 20 Jun 2011 17:45:50 +0000

[...] 2 Big Banks Exit Reverse Mortgage Business | By TARA SIEGEL BERNARD New York Times June 17th 2011 [...]

Comment on Home sellers court risks with last-resort loans by Were you foreclosed? Real Estate Seller financing. « Cotati Notary Public

Were you foreclosed? Real Estate Seller financing. « Cotati Notary Public — Wed, 15 Jun 2011 00:08:43 +0000

[...] Financing provided by sellers is making a comeback, but there are plenty of pitfalls By Prashant Gopal updated 6/12/2011 12:23:36 PM ET Sue and Douglas Reed knew no bank would give them a mortgage—not with a bankruptcy and two foreclosures fresh in their credit history. They turned to Hilarie Walters, whose childhood home on 15 acres in Marshall, Mich., had been on the market since 2009, a year after she inherited it. Walters agreed in December to sell the property to the Reeds for $105,000. She also consented to a risky payment plan that in effect makes her the couple’s mortgage lender. “They’re paying me interest every month, but I’d rather have the money and be done with it,” says Walters, an unemployed single mother who is using their payments to cover the mortgage on her Battle Creek (Mich.) residence. “It does make me nervous.” Financing provided by sellers, popular in the 1980s when mortgage rates reached 18 percent, is making a comeback in markets such as Michigan that have been hit hard by foreclosures and where tightening lending standards and years of economic distress have drained the pool of creditworthy buyers. For a small but growing number of people, it’s the only way to get a deal done. “Anytime the market is in this much trouble, people have to find ways to get it to function,” says Dennis Capozza, a professor of finance at the University of Michigan in Ann Arbor. Capozza has direct experience with seller financing: He purchased a friend’s foreclosed home a couple of years ago and then allowed him to buy it back in installments. Last year 52,991 U.S. homes were purchased with owner financing, up 56 percent from 2008, according to Realtors Property Resource, citing data collected from county record offices. Such deals accounted for 1.5 percent of all transactions in 2010. Michigan, which has a 10.3 percent unemployment rate, leads the nation with about 1,600 home listings that advertise seller financing, followed by Florida, Ohio, California, Wisconsin, Minnesota, and Texas, according to property website Trulia. The risks in such deals are significant for both buyer and seller, says Jason P. Hoffman, a Faribault (Minn.) real estate attorney. “Each of them is seeking an advantage in an otherwise difficult situation, and they’re hoping everything will work out as envisioned,” Hoffman says. “It’s an act of faith.” The Reeds, who put $25,000 down, make monthly payments of $565, reflecting a 7 percent interest rate, with the full balance due in five years. “This is the American dream, and we’re going for it no matter what,” says Sue, 56, who sells snacks from a trailer at estate auctions and going-out-of-business sales. “We’ll either make it or it will break us.” The riskiest deals involve sellers who have bank loans on the properties, Hoffman says. Most mortgages contain a “due on sale clause,” meaning the lender can call the loan if the home is transferred. While community banks sometimes grant exceptions, many homeowners take their chances, hoping lenders won’t ask questions as long as the payments stream in, he says. Some investors see seller financing as a marketing tool. Mark Cook, 30, a real estate agent in Lake City, Fla., says he sees an untapped market in people who have had their credit ruined by a foreclosure or short sale. Cook is working with a Canadian investor who bought and renovated four homes in Florida’s Cape Coral and Fort Myers areas since September, selling them to buyers who needed financing. One more is for sale now, another is under renovation, and they have contracts to buy another handful of homes. More at Advantage Title [...]

Comment on Existing Home Sales Fall Unexpectedly In April by Existing Home Sales Fall Unexpectedly In April « Cotati Notary Public

Existing Home Sales Fall Unexpectedly In April « Cotati Notary Public — Tue, 24 May 2011 03:34:04 +0000

[...] Existing Home Sales Fall Unexpectedly In April advantagetitle | May 23, 2011 at 8:46 AM | Categories: News | URL: http://wp.me/pPoVF-72 [...]

Comment on Bill Sets Up Private Firms To Back Mortgages by Bill Sets Up Private Firms To Back Mortgages « Duane's World

Bill Sets Up Private Firms To Back Mortgages « Duane's World — Mon, 16 May 2011 19:41:00 +0000

[...] Bill Sets Up Private Firms To Back Mortgages [...]

Comment on House GOP Unveils Bills To Speed Closure of Fannie, Freddie by House GOP Unveils Bills To Speed Closure of Fannie, Freddie « Duane's World

House GOP Unveils Bills To Speed Closure of Fannie, Freddie « Duane's World — Mon, 16 May 2011 19:40:47 +0000

[...] House GOP Unveils Bills To Speed Closure of Fannie, Freddie [...]

Comment on Banks lending, consumers borrowing by Banks lending, consumers borrowing « Duane's World

Banks lending, consumers borrowing « Duane's World — Tue, 10 May 2011 17:20:46 +0000

[...] Banks lending, consumers borrowing May 10, 2011 at 8:40 AM | Categories: News | URL: http://wp.me/pPoVF-6G [...]

Comment on California hopes to stave off foreclosures through Keep Your Home program by Homes in orange county

Homes in orange county — Thu, 03 Mar 2011 09:14:19 +0000

Its a nice post. Nice write upon it. thanks for the post and sharing.

Comment on Foreclosures make up 26% of home sales by Foreclosures make up 26% of home sales « Duane's World

Foreclosures make up 26% of home sales « Duane's World — Thu, 24 Feb 2011 20:31:33 +0000

[...] Foreclosures make up 26% of home sales [...]