According to Trulia it is, in 70% of Americas 50 biggest cities.
How could it not be right now? The home prices are fantastic, the interest rates are amazing, the deductions are still there.
Case in point is one of my listings. Cheaper to buy than rent! Amazing. Still challenging to close escrow on something....but if you've got the patience, why the heck rent?
Renting ---- earning equity for the landlord
Owning ---- earning equity for yourself....
Not a hard choice.
Wednesday, August 17, 2011
Thursday, August 11, 2011
The Debt Downgrade For Mortgages
So, we all went into a bit of a miserable mode when we learned that our country went from AAA to just AA+. Felt like we were failing in 4th grade. And, I wondered if we'd be able to find some good in this announcement.
But, of course, I am the 'Glass is 1/2 Full' Witzy, so I knew there would be something that would come of it that is good for people buying/selling homes.
Interest rates are even lower. But, they probably won't stay that way for a long time. Just like when you buy a home, if your credit isn't so great, your interest rate is higher than the next guy. So, with our rating drop, our rates, as a country will go up. And, we, as the people, will pay that somehow. And, most likely, consumer interest rates will go up to assist in that pay-off.
CNNMoney article here:
But, of course, I am the 'Glass is 1/2 Full' Witzy, so I knew there would be something that would come of it that is good for people buying/selling homes.
Interest rates are even lower. But, they probably won't stay that way for a long time. Just like when you buy a home, if your credit isn't so great, your interest rate is higher than the next guy. So, with our rating drop, our rates, as a country will go up. And, we, as the people, will pay that somehow. And, most likely, consumer interest rates will go up to assist in that pay-off.
CNNMoney article here:
Although many do still consider that home values haven't quite hit bottom, I do believe that with these low rates, it is time to buy. If you wait for bottom, you may have interest rates that are closer to the top than you can't afford to pay.
Monday, August 8, 2011
Another Bank Talks About Principle Reduction Program
So, Ocwen Financial is now talking about principle reduction for underwater homeowners. Bank of America and Wells Fargo have been as well. Ocwen is taking an even more inventive approach. They want a share of the equity when the home value goes back up and the seller sells the home. Sounds fair to me.
If we can get more people to stay in their homes, we can get through this sooner. People that can afford to pay though, still seem to have to pay. People that are not able to pay are getting the breaks. Don't get me started on that opinion....
At any rate, it seems like this is going to be full steam ahead with more and more banks.
If you are underwater, always call your mortgage company and see if they will be able to modify your loan. THEN, ask them if they are considering a principle reduction program.
Great Luck out there !
Tuesday, August 2, 2011
30 Day Stats in Awesome Town!
When I look at the stats for Santa Clarita there will always be minor discrepancies. Generally input error, but I still keep up on the gist of what's happening even though truly I already know it as I'm out working with buyers and sellers daily.
Tuesday August 2, 2011 stats:
Active - 1182
Pending - 385
Back-Up - 489
Closed Escrow in last 30 days - 260
Still over 1/2 of each category is in distressed sales. Whether they are short-sales or bank-owned, that is what is carrying the majority of the inventory....still.
Not really news, is it? But, I like to keep you informed. Still status-quo. Still selling homes. Still lots to get through. But, we're still moving homes.
Tuesday August 2, 2011 stats:
Active - 1182
Pending - 385
Back-Up - 489
Closed Escrow in last 30 days - 260
Still over 1/2 of each category is in distressed sales. Whether they are short-sales or bank-owned, that is what is carrying the majority of the inventory....still.
Not really news, is it? But, I like to keep you informed. Still status-quo. Still selling homes. Still lots to get through. But, we're still moving homes.
Monday, August 1, 2011
I Moved!
Look for more blog posts coming this week.
Just letting you know I have moved to a different area in Awesometown !
Just letting you know I have moved to a different area in Awesometown !
Wednesday, July 27, 2011
Cash for Clunkers, Bulldozer's for Foreclosures
Here late at night thought I'd catch up on some reading. Came across a very interesting way to get rid of some of the backlog of foreclosed upon homes.
Some banks, in many states, are actually donating some of the bank owned homes. Then paying to DEMOLISH them. Give the land to the community and, of course, get a tax write-off. They say it will barely make a dent in the inventory. But, it makes some good sense. If the home is that uninhabitable, and would cost an astounding amount of money to make it salable, the costs out-weigh the benefits, right? I'd say so. And, in the long run, every little bit of inventory that we can dispose of, whether by REO sale or bulldozer.....is again, a faster (by molasses standards) recovery.
Some banks, in many states, are actually donating some of the bank owned homes. Then paying to DEMOLISH them. Give the land to the community and, of course, get a tax write-off. They say it will barely make a dent in the inventory. But, it makes some good sense. If the home is that uninhabitable, and would cost an astounding amount of money to make it salable, the costs out-weigh the benefits, right? I'd say so. And, in the long run, every little bit of inventory that we can dispose of, whether by REO sale or bulldozer.....is again, a faster (by molasses standards) recovery.
Bank of America is the leader, with Wells Fargo, Citigroup and Chase considering going along this road as well. Not a ton of homes, a few thousand only.
I certainly don't think the values here in Southern California have dropped enough to warrant a bulldozer driving down Valencia Blvd, but I do know there are certain areas in our country where this 'Cash for Clunkers' type of demo would benefit very well.
Sunday, July 24, 2011
Class Action Lawsuits For Auto Freeze of a HELOC?
A couple of years ago the banks started freezing Home Equity Line of Credit (HELOC) loans. They saw the values going down and just either froze them or reduced how much the homeowner could then borrow. A great article in the LA Times, that I read this morning, suggests that it would be challenging for any homeowners in the midst of remodeling their home to lose what they thought they had, without a complete valuation by appraisal, to pay the contractors, suppliers, etc. And, therefor the lawyers are considering filing lawsuits....and, quite possibly, that there will be enough claimants for a class action suit.
Yes, I agree that would be a huge challenge if you were in the middle of a remodel. However, I also would suggest that many homeowners that had HELOC's were used as a 2nd when they purchased their home in the height. They may have paid down some of that HELOC already and the banks certainly wouldn't want them using any more of it since they are most definitely upside down. Freeze.
I also would think that many homeowners had opened a HELOC in the presumption of doing work on their house, paying for college, buying a new car. That type of thing. And, many of those homeowners that may not have contracted yet, chose to pull the money out....indicating they were going to use it for remodeling and putting equity back into the home.....when, as the market fell......they may have chosen just to keep that cash. Freeze them too.
Full article here:
Yes, I agree that would be a huge challenge if you were in the middle of a remodel. However, I also would suggest that many homeowners that had HELOC's were used as a 2nd when they purchased their home in the height. They may have paid down some of that HELOC already and the banks certainly wouldn't want them using any more of it since they are most definitely upside down. Freeze.
I also would think that many homeowners had opened a HELOC in the presumption of doing work on their house, paying for college, buying a new car. That type of thing. And, many of those homeowners that may not have contracted yet, chose to pull the money out....indicating they were going to use it for remodeling and putting equity back into the home.....when, as the market fell......they may have chosen just to keep that cash. Freeze them too.
Full article here:
Now, mind you, I've got clients that are attorneys and I do believe they should fight for people that have been wronged. The good ones do. But, I do feel, all too often, we see legal situations where one party was really protecting themselves and another thinks there is a way to make a quick big buck. And, those attorneys? Me no likey.
If you think your value was high enough to keep your HELOC at the level it was, then fight for it, of course. If you are just going along with the 'bandwagon'? Think again. We've got enough troubles with the financial institutions now, don't we?
Subscribe to:
Posts (Atom)