Posts Tagged ‘Money’
Bulk Foreclosure Sales Could Cause Bigger Bank Write-Downs
As government, federal regulators and big-money private investors try to figure out a plan for bulk sales of foreclosed properties, big banks are already making deals, but they are few and far between.
Record Low Mortgage Rates, Rising Pessimism on Housing
If more Americans can save more money by refinancing their mortgages (likely their single largest debt), and more Americans can potentially buy a home, given the low rates, then why are they so pessimistic about housing going forward as well as their personal finances?
Feds approve additional housing aid for Florida
Floridians who are struggling to make mortgage payments are getting additional help from the federal government’s Innovation Fund for the Hardest Hit Housing Markets. The Treasury Department this week approved a plan by the Florida Housing Finance Corp. to redirect $239 million in previously approved foreclosure-prevention assistance expand options for unemployed workers. Treasury also announced the state housing agency is getting $401 million more in Hardest Hit money to expand the reach of its programs. Assistant Treasury Secretary Herb Allison said the aid is being targeted to areas and states such as Florida, where unemployment and steep home price declines have been concentrated. AP Logo Copyright 2010 The Associated Press.
Bank of America urges funding for investors
Analysts from Bank of America have a unique proposal: Instead of further funding TARP to help distressed homeowners hold onto their properties, give the money to property management companies that would then buy property and turn it into rentals. In a recent research paper, Bank of America analysts suggested that the government spend as much as $400 billion to encourage property management companies to buy properties and rent them out. That, according to research, would bring the homeownership level to “a more natural level of 62 percent to 64 percent” from its current 67 percent. Under Bank of America’s recommendation, investors would be prevented from reselling the properties quickly. Source: The Wall Street Journal, Emily Peck
20-year mortgages cut interest significantly
Buyers with the ability to stretch a little might consider a 20-year fixed-rate mortgage instead of the traditional 30-year, suggests CBS Money Matters’ financial adviser Ray Martin. Martin points out that a $200,000 mortgage with a 30-year term and an interest rate of 4.75 would have a monthly payment of $1,043 and the total interest over the life of the loan would be $175,600. The same mortgage with a 20-year term at 4.5 percent would have a monthly payment of $1,265 with total interest over the life of the mortgage of $103,670. Young homebuyers planning to have children will have their 20-year mortgage paid off by the time their kids enter college, a big financial advantage, Martin points out. Source: CBS, Ray Martin
Decision on Fannie and Freddie May Come Soon
Government and banking experts meet next week to decide the future of Fannie Mae and Freddie Mac. The likeliest solution is a complex one. The Mortgage Bankers Association is proposing a system where risk-based fees on a class of mortgage-backed securities would be charged in exchange for a government guarantee against losses. Whatever the outcome, it is unlikely that Fannie and Freddie will be able to pay back the nearly $150 billion in taxpayer bailout money that they have received since 2007. Source: Reuters News (08/12/2010)
Mortgage Banking Takes a Beating
Independent mortgage bankers are making a lot less money on each loan they originate these days, and they're originating a lot fewer loans on top of that.
The Obama Mortgage Plan – Are You Close to Losing Your Home?
Due to the recession, there has been a long period of unemployment, which has caused many families to live in fear of losing their homes. There are many other factors that can also lead to financial distress. Many Americans have been put in a situation where they can not make their mortgage payments. What many people do not realize, is that the $75 Billion that was released from Congress can also help to keep you from foreclosure. This created a program call the Obama mortgage plan that began to give incentives to banks to help you keep your home from foreclosure. Fact: Assistance is available to save your home through the Obama mortgage plan. The government is aware of the problems that so many people are experiencing. There have been billions of dollars set aside to assist homeowners in making their mortgage payments. Fact: Banks are now getting incentives to help you from going into foreclosure with your home. Fact: After congress released stimulus money to bail American out, many people have been able to keep their homes out of foreclosure. Why do American' s have a higher chance of keep their homes after the stimulus bill was passed? After Congress released $75 Billion to bail America out in the housing industry, banks were given incentives to encourage them to help you keep your home. This means that the Obama is working to help Americans keep their residence. Hence, the name "The Obama mortgage Plan". There have been over four million families who have had success through the Obama mortgage stimulus plan. The plan helps people who are living in fear of foreclosure by restructuring loans. Families are able to make their house payments, and can stop worrying about loosing their homes. Fact: There is no reason to lose your home when $75 Billion has been spent to help you keep your residence. The Obama mortgage refinance plan is set up to make sure that mortgage payments will not exceed 38% of the homeowners income. Money is available to help reduce payments so that homeowners can also pay other bills and keep food on the table. These reductions can last for up to five years. There are private American companies that are joining the effort to help, by making legal assistance available for those who need it. If you are a financially concerned US citizen, you should take advantage the great opportunities available to help you save your home from foreclosure. You can Save Your Home They are a private company that gives free info on how to save your home. There is no charge. Just enter your email address. Click Here find out what Obama's program entails.
Things That Buyers Might Not Know About Bank REO Properties
Homes become bank REO properties once they fail to sell at auction. The good thing about REOs is that buyers can deal directly with the bank if they want to buy one of these properties. Most real estate owned homes are also free of existing liens and have a legitimate title which sometimes can be a problem with other types of foreclosed dwellings. Longer Time to Close A buyer of an REO home might not get hold of the property until after a month or two. Closing the deal is not as fast as purchasing a house from an auction or directly from the homeowner. In evaluating buyers' offers, several officials of the bank are involved and if one of them rejected the deal or found something missing, the buyer needs to start all over again. For people who are looking for an immediate place to live in, REOs might not be the best choice. If buyers expect to occupy the home right after the agreement is signed, then they are mistaken. The process can drag on for weeks and even months and buyers will not be able to take over the property until all areas of the transaction have been worked out. Repair Needs Might Be More There is a general perception that bank REO properties are cheap and are easy to acquire because banks are eager to sell them off. The primary danger for a buyer lies in the potential to spend more than they expect on repairing the property to make it habitable. Buyers should remember that bank foreclosures are sold in an "as is" condition and that banks will not willingly let buyers in on the secret of how much repair is needed for the property. Buyers who do not hire a licensed home inspector and who do not have the necessary skill to evaluate the structural condition of a residential property might find themselves spending a lot of money on repairs that they did not expect or planned for. If a buyer is considering buying bank REO properties, he should seek the help of professionals like home inspectors, real estate agents and even a real estate lawyer. The fees that would be paid to them will be worth it if the buyer is able to avoid purchasing a home in a poor condition. Joseph B. Smith has been educating buyers on the finer points of bank REO properties at BankOwnedHome.net for over five years. Contact Joseph B. Smith through BankOwnedHome.net if you need help finding information about bank REO properties.
Buying Pre-Foreclosures Or Short Sales
Pre-foreclosures are properties that are just a step away from being repossessed or retrieved by the institution that lent the money to enable people to buy them in the first place. At this stage, you still own the property completely. However, if you don't settle pending payments, the financial institution (lender) will take the real estate from you. If you do settle any outstanding payments at this time, you avoid foreclosure. The Benefits of Pre-Foreclosure Properties If you are a buyer then it would interest you to know that buying property at the 'pre foreclosure' state can be profitable. However, even though short sales are one of the best ways to buy a home many miss the boat, so to speak. This is because not many know the pre foreclosure state and just how beneficial it can be. As you can imagine, pre foreclosure properties have a nice or better price tags on them. It is not surprising at all to find real estate at HALF their present market value. Due to the fact that the owner of the property is in desperate need for cash, he or she will likely receive any offer a potential buyer will put forth. To be a bit blunt, what's the alternative for him? If he doesn't accept the offer for his property, he will end up losing everything. In the end, it's better to at least get something for it, right? As such, engaging in short sales can be very beneficial for you. Another benefit to buying real estate in pre foreclosure is that you get to transact with the property owner directly. No agents or brokers need be involved, making it easier to purchase the property. So how do you find pre foreclosure property? The process is pretty much looking at foreclosed property listed by banks and other lenders. All you need to do is check your local paper, online or even contact certain lenders in your area directly. Once you find your dream home presented as a short sale, grab the opportunity! It's very rare to find great homes at great prices so do your research well. Now you may ask, why not just look at foreclosed properties? Why not just wait for the listings rather than actively seek them? This is why: there are LESS people hunting or looking at pre foreclosures. This means you get a better chance at the property of your dreams because there are less people wanting to purchase the same real estate. So if you are looking for a new home or want to invest in property, look at pre foreclosures. You just might find exactly what you need. Don Cramer has been selling real estate in the North Port, Port Charlotte Florida and surrounding areas for over 10 years. Visit our website at: http://www.bestchoicerealty.net/. Are you looking for more info to help you with buying your home? Just go to: Buying A Home Article Source: http://EzineArticles.com/?expert=Don_Cramer
