Minnesota Realty Blog n News

According to RIS Media, the latest drop in interest rates are a sign of things to come. As they said, the Federal Reserve served notice that more unconventional actions probably are ahead as it fights to reverse the nation’s economic woes.

The rates are at historic lows but as we’re remarked before –that’s good new for lenders with good credit ratings. Banks are no longer interested in lending money to homebuyers without excellent ratings.

Original post by Buyers Real Estate Group

According to RIS Media, the latest drop in interest rates are a sign of things to come. As they said, the Federal Reserve served notice that more unconventional actions probably are ahead as it fights to reverse the nation’s economic woes.

The rates are at historic lows but as we’re remarked before –that’s good new for lenders with good credit ratings. Banks are no longer interested in lending money to homebuyers without excellent ratings.

Original post by Buyers Real Estate Group

Word on the street is that the Feds are considering a proposal to force 30-year fixed-rate mortgages to 4.5 percent. That’s obviously great news for buyers.

So people have been asking me – when should I buy? Are things going to get better or worse? Well, I wish I knew. What I can tell you is that especially for first time home buyers now is a good time to buy.

It’s a rough time to sell and that’s an opportunity for first time buyers. Can you get the big loans of years past – no. But that’s a good thing. It’s smart to buy a home you can afford and the more stringent loan requirements are helping people buy homes they can afford.

There are a number of incentives out there for first time homebuyers. We just helped placed a couple is a home using federal support this fall. We keep up on the opportunities that are out there. It’s our job as buyer agents to know every advantage to you in the market.

The holiday time is a great time to let your family know you’re thinking about a home purchase. Maybe you can get help with the down payment this year instead of a new tie!

Original post by Buyers Real Estate Group

Fannie Mae and Freddie Mac have issued a notice to its loan servicing organizations and retained foreclosure attorneys directing them to suspend foreclosure sales on occupied single-family properties as well as the completion of evictions from occupied single-family properties scheduled to occur from November 26, 2008 until January 9, 2009.

Not only will this give homeowners a break for the holidays, the suspension will help mortgagers to implement the Streamlined Modification Program and hoepfully to give servicers more time to help borrowers avoid foreclosure.

Fannie’s streamlined modification program is aimed at the highest risk borrower who has missed three payments or more, owns and occupies the primary residence, and has not filed for bankruptcy. The program creates a fast-track method for getting troubled borrowers into an affordable monthly payment through a mix of reducing the mortgage interest rate, extending the life of the loan or even deferring payments on part of the principal.

Freddie Mac servicers and foreclosure attorneys were told to contact as quickly as possible an estimated 6,000 borrowers with foreclosure sales scheduled between November 26, 2008 and January 9, 2009. If the property is occupied, the servicers and foreclosure attorneys will halt the sale. This temporary suspension of foreclosure sales will not apply to vacant single family properties.

Original post by Buyers Real Estate Group

Yesterday, the U.S. Housing and Urban Development Secretary Steve Preston announced that the HOPE for Homeowners approved changes to the program to help more distressed borrowers refinance into affordable, government-back mortgages. The changes will reduce the program costs for consumers and lenders alike while also expanding eligibility by driving down the borrower’s monthly mortgage payments.

Modifications to HOPE for Homeowners include:

• Increasing the loan to value ratio (LTV) to 96.5 percent for some H4H loans;
• Simplifying the process to remove subordinate liens by permitting upfront payments to lienholders; and
• Allowing lenders to extend mortgage terms from 30 to 40 years.

HOPE for Homeowners will continue to only offer affordable, government-insured fixed rate mortgages. Further, this program will maintain FHA′s long-standing requirement that new loans be based on a family’s long-term ability to repay the mortgage. Only owner-occupants are eligible for FHA-insured mortgages.

You can learn more on the HUD web site.

Original post by Buyers Real Estate Group

FHA is the Depression-era home loan insurance agency that still offers 3 percent down, 30-year fixed-rate mortgages with consumer-friendly credit standards, even on jumbo loans in high-cost areas of California and the East Coast. They are gearing up to help current and future homeowners.

Anyone who is in danger of losing their home should look into their HOPE for Homeowners program.

The HOPE for Homeowners (˔H) program was created by Congress to help those at risk of default and

foreclosure refinance into more affordable, sustainable loans. ˔H is an
additional mortgage option designed to keep borrowers in their homes.

The program is effective from October 1, 2008 to September 30, 2011.

As many as 400,000 homeowners could avoid foreclosure through this
program over the next three years. If you are having trouble making your
mortgage payments, HOPE for Homeowners may be able to help you, by refinancing
your loan into a new 30-year fixed rate loan with lower payments.

Original post by Buyers Real Estate Group

Original post by Buyers Real Estate Group

For better or for worse, there’s a lot of foreclosed property out there. Buying now can make sense if you have the ready cash and the personality to weather the storm – but few people do. To see if you have what it take, check out the quiz for folks thinking about buying foreclosed property. It a great, entertaining way to get a glimpse of what buying foreclosed property can be like.

Original post by Buyers Real Estate Group

No word on the presidential signature yet – but he is still expected to sign. Here’s the latest on the Act from Minneapolis Realtor!

Congress has passed The Housing and Economic Recovery Act of 2008, providing some much-needed stimulus to the housing market. The President is expected to sign the bill on Tuesday, July 29.The comprehensive bill includes GSE and FHA reforms, an FHA foreclosure rescue, a homebuyer’s tax credit, limits on seller-funded down payment assistance programs, temporary increases in VA loan limits, and establishment of a National Affordable Housing Trust Fund, and many other provisions. The bill includes various effective dates for these provisions, so studious review is required.

As with most Congressional actions, this bill is not without some controversy. Some members are not happy about the new limits on seller-funded down payment assistance; others see the program as a bailout for homebuyers who accepted risky loans or used their home equity carelessly.That said, the bill offers some welcome
assistance and could be the kick-start the market needs to push potential homebuyers into action. It will surely be the talk of the town in the coming days.

Original post by Buyers Real Estate Group

Original post by Buyers Real Estate Group

Think about it, record amounts of loans, record amounts of foreclosures. See a pattern here? Some of those foreclosures are because of buyers getting in over their heads (i.e. trying to buy too much house without sufficient financial wherewithal, relying on being able to refinance, etc.). But, much of the reason for the foreclosures is also because of fraudulent activities on the part of many real estate investors. A very prominent scam was illuminated here in the Twin Cities this year. That fraud caused foreclosures for some 130 or more houses in one Minneapolis neighborhood alone!

Original post by Buyers Real Estate Group

Know someone who is in trouble or just want more information on mortgages?
St. Paul and the Minnesota Home Ownership Center are sponsoring a series of foreclosure prevention workshops for people who are concerned about making mortgage payments.
Mortgage lenders and community-based organizations will be available to offer free advice and answer questions, and attendees will be able to hear short presentations on legal rights and the foreclosure process.
Future scheduled workshops:• May 20: 4:30–8:30 p.m., Discovery Elementary School, 301 Second Av NE, Buffalo• June 5: 4:30–8:30 p.m., Eagan Community Center, 1501 Central Pkwy, Eagan
Call the Home Ownership Center at 651.659.9336 or go to http://www.hocmn.org/ for more information. St. Paul mortgage foreclosure prevention counselors are available at 651.266.6626 or www.stpaul.gov/foreclosure. Renters with foreclosure questions can call HOME Line at 612.728.5767.

Original post by Buyers Real Estate Group

1. Loan number and recent payment history

2. A brief explanation of their circumstances. Are their financial problems temporary (for example, a cut in job hours or the illness of a family member) or permanent?

3. Recent income documentation, including pay stubs or tax returns

4. A list of household expenses — utility bills, food, insurance

5. A list of other debt obligations — credit cards, car loans

Get more info

Original post by Buyers Real Estate Group

1. Loan number and recent payment history

2. A brief explanation of their circumstances. Are their financial problems temporary (for example, a cut in job hours or the illness of a family member) or permanent?

3. Recent income documentation, including pay stubs or tax returns

4. A list of household expenses — utility bills, food, insurance

5. A list of other debt obligations — credit cards, car loans

Get more info

Original post by Buyers Real Estate Group

The Wall Street Journal just ran an interesting article (Playing the Housing Slump) that outlines three ways to make the most of today’s housing market. Be forewarned, these are generally tips for homebuyers, not investors.

Trading up. Now is a good time to trade up to a new house. Sure, you might not get top dollar for your home but you won’t be spending top dollar either.

Doubling down. Now is a great time to buy a second home or vacation home – especially if that doesn’t require selling current property. The prices are low and mortgage rates are low.

Helping hand. Now is a good time to help adult children into their own homes. If they are currently renting, it will help them financially to make the investment. If they are living in your basement, it just might be a nice time to help them out of the nest.

Submitted by Susan Hofflander

Original post by Buyers Real Estate Group