Charlotte Real Estate, Foreclosures, Short Sales

New Buyer Seminar on Foreclosures, Short Sales, Auctions and NC Downpayment Assistance programs!  Click to talk with an online sales agent for more information.

According to DailyFinance.com, about 5.1 million mortgage holders will own a home that is worth 75% or less than what they owe on the home. A new study drawn by First American CoreLogic then given exclusively to the New York Times states that it would take $745 billion dollars to get mortgages to the point where no home loans in the United States were underwater. Ironically, that is somewhere around the amount that the banks received for their bailout???

RealtyTrac has recently estimated that there will be a rise from last year's foreclosure rate. They are estimated roughly 3 million homes will go into foreclosure in 2010. We are still waiting for the federal government for a long-term solution. Adding more money to this problem may not be an option since the federal budget deficit this fiscal year is projected to be nearly $1.6 trillion.

We will continue to see a sharp increase in short sales and foreclosures in Mecklenburg and the surrounding counties. As a Certified Distressed Property Professional, I am able to assist buyers and sellers navigate through the ups and downs of our housing market with less stress, more ease while keeping more money in your pocket. Call me today, Sandra Allen at (704) 559-5988 X5 for more information on buying short sales and foreclosures or if you are an owner of a distressed property.

Faced with criticism, the Treasury department outlined new guidelines to help streamline the loan modification process under the adminstration's Home Affordable Modification Program that started over a year ago.  The previous paperwork required an overwhelming amount of forms to include 2 year's tax returns, paystubs, hardship letters, etc.. The new guideline specifies that borrowers provide three items to loan services; a form requesting a loan modification, authorization for the servicer t seek tax returns from the IRS an evidence of income.

As of December 31, roughly 900,000 borrowers had been given trial modifications, but only 66,465 had been converted to a permanent loan modification.  As of September 30th, about 7.5 million households were behind on payments or in the process of foreclosure.

If you are a buyer looking for short sale properties in need of immediate or if you are a seller in need of avoiding foreclosure by short sale or if you are in need of loan modification information, please click here.

New records are being set daily according to recent RealtyTrac reports.  Foreclosures have increased 21% from this year last year and 120% from 2 years ago. Foreclosures have come in 3 waves. The first wave consisted of originated loans with bad lending practices coupled with overvalued homes. The 2nd wave of foreclosures which we are currently in is being caused by a down economy and job loss. The 3rd wave will be led by the adjusting of option ARMs and adjustable rate mortgages on homes that are worth less than their current loan.  A great amount of option ARM loans have an above average loan amount.

Foreclosures are expected to increase greatly in 2010.  Option ARM mortgage homeowners and homeowners experiencing job loss will probably not qualify for the HAMP program, Home Affordable Modification Program due to homeowners who will default this year with adjustable rate mortgages and job loss not meeting the program's guidelines and eligibility requirements.  For more information, please view the video below.

Many home buyers have found themselves at the closing table surprised at the difference in closing costs due from what was originally quoted to them.  A Good Faith Estimate(GFE) is just that, an estimate.  Mortgage brokers and lenders provide loan applicants with these figures within three days of making an application for a home loan.   New federal rules were adopted on January 1st regarding the GFE, driven by the Department of Housing and Urban Development.  These new rules mandated the redesign of a simplified Good Faith Estimate form. 

Previously, lenders had no standardized format on how these fees were explained.  "Fees were communicated in multiple ways, which adds to the confusion when comparing costs," says Keith Gumbinger, a vice president at HSH Associates, which tracks the mortgage market. Under the new rules, lenders will all be required to use the same form for their Good Faith Estimates - a three-page document issued by HUD.

There are also new rules capping increases in costs that are disclosed on the Good Faith Estimate and guidelines so that fees listed on the initial GFE reflect the actual cost at settlement. "Those fees on the GFE at the beginning of the process will be the same on HUD-1 form [final settlement statement] at the end of the process," says Mr. Gumbinger.

Here is the summary of information on what changes to expect with the new federal rules regarding good faith estimates:

1. Fees that cannot change from the original GFE to final settlement.

2. Fees that can increase up to 10% at settlement.

3. Fees that can change without limit.

Borrowers may see an increase in the overall costs that lenders charge to originate a loan.  These new rules will cost lenders in the way of new software, new documents and new training. 

 If you would like current mortgage information, please click here for more information.

Highest Record of Home Sales Since 2007!

More and more homebuyers are taking advantage of the federal homebuyer tax credit, creating a huge surge of home sales.  November home sales rose nationally by 7.4 percent and are the highest reported level of sales in nearly three years.  51 percent of homebuyers in November used the federal homebuyer tax credit.  The $8,000 tax credit was extended for the first four months of 2010 and expanded to grant a $6,500 credit to qualified current homeowners looking to buy a new home.  

"Things are stabilizing," said Pete Flint, chief executive of real estate Web site Trulia.com. "There is a significant amount of buyer interest out there."  The national association's chief economist, Lawrence Yun, said the tax credit buyers certainly helped inflate numbers in November, but he thinks it might be just the tip of the iceberg.

"This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead," Yun said.  He said he is hopeful that the market, which has been propped up by the federal government incentives would be self-sustaining by the second half of 2010.