Posts

Showing posts from October, 2009

Forclosures Are More Profitable Thank Loan Modifications, According To New Report

Image
Mortgage companies are more likely to foreclose on homeowners than modify their loans because they make more money off foreclosures, argues a new report by a consumer advocacy group. While homeowners, lenders and investors typically lose money on a foreclosure, mortgage servicers do not, says report author Diane E. Thompson, of counsel at the National Consumer Law Center . Servicers are the companies that manage the mortgages and collect payments. "Servicers may even make money on a foreclosure," she writes. "And, usually, a loan modification will cost the servicer something. A servicer deciding between a foreclosure and a loan modification faces the prospect of near certain loss if the loan is modified and no penalty, but potential profit, if the home is foreclosed." Thompson attributes this to a system of perverse incentives created by lawmakers and rulemakers in the market, like credit rating agencies and bond issuers. The private rulemakers typically dictate how

Are You Qualified for a Mortgage Modification, or Is Refinancing Your Best Route?

Image
The Government loan modification progress reports inspire institutions to take the foreclosure prevention program more seriously. Find out if you are one of the many that qualifies for a mortgage modification, or if refinancing is a better option. The Home Affordable Modification Program was launched in March 2009 to help qualified home owners receive a lower monthly payment and avoid foreclosure. The United States Treasury Department recently reported only 9 percent of home owners eligible for the government's $75 billion loan modification program have been offered help. This equates to just 235,247 loans that were at least two months delinquent. The government hopes to help up to 4 to 5 million financially distressed home owners modify their mortgages and has promised to reach 500,000 home owners by November 1st. In order to fast track these goals, the government has cracked down on the institutions participating in this program and will be supplying the public with monthly p

Apartment sales soar 31% in Queens, 29% in Bklyn

After seven consecutive quarterly declines, apartment sales in Brooklyn and Queens picked up in the third quarter, according to a new industry report. Apartment sales in Brooklyn and Queens picked up in the third quarter, despite a rise in unemployment and the ongoing credit crisis, according to the latest industry report released Thursday. Mirroring results reported last week in Manhattan, apartment sales in both boroughs rose from the previous quarter. In Brooklyn, the number of sales surged 29.4% in the third quarter from the previous quarter. In Queens, they did even better, soaring 31%. The sharp upticks are the result of pent up demand and an increase in confidence, noted Jonathan Miller, chief executive of Miller Samuel. “People on the fence made a decision to buy,” said Mr. Miller (from Miller Samuel Inc., appraisal firm). “I think one primary catalyst is that the stock market went up (so strongly) in the third quarter.” Despite the recent rise, the report underscored that acti

FIRST-TIME HOMEBUYER TAX CREDIT FAQ's

Image
Frequently Asked Questions In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale. For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009 . Tax Credits – The Basics 1. What’s this new homebuyer tax incentive for 2009? The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009 . 2. W

Real Estate Market Recap

Image
The U.S. economy continues on its path to salvation. Retail sales, an arbiter of economic activity, declined 1.5% in September, which would seem a step back at first glance. On second glance, the numbers suggest sales are improving nicely. Stripping out autos (which everyone knew would decline after the “cash-for-clunkers” program expired) and volatile gasoline and building materials, sales actually increased 0.5%, building on the 0.7% increase in August. Just as important, people are not just buying more here, but abroad too. World trade is accelerating, evinced by the dollar value of exports, which rose 0.2% in August. Signs of an upward turn in world trade are good news for us, because they will spur an increase in production and hiring in exporting sectors that are plagued by high unemployment. Unemployment remains “the” ongoing concern, but concerns are also rising over housing's ability to deflate an inflating economy. Integrated Asset Services reported house prices decl

Mortgage Rates from William Raveis Real Estate, Mortgage & Insurance

Here is William Raveis weekly email that provides a current view of interest rates for some of our popular mortgage products. Please feel free to contact me for help or questions about our mortgage products or any other of your Real Estate needs. Mortgage Rates for CT Product Interest Rates Annual Percentage Rate 15 YR Fixed Conforming 4.375% 4.520% 15 YR Fixed Jumbo 4.875% 5.247% 30 YR Fixed Conforming 4.875% 5.027% 30 YR Fixed Jumbo 5.250% 5.527% 30 YR Fixed Super Jumbo 5.500% 5.654% 5/1 YR ARM Conforming 3.625% 3.618% 5/1 YR ARM Jumbo 4.250% 3.557% 5/1 YR Portfolio Arm 4.250% 3.557% Mortgage Rates for NY Product Interest Rates Annual Percentage

44 Strawberry Hill Ave, Unit 4J, Stamford, Connecticut

Image
Elegant remodeled spacious 2Beds/2Baths unit with modern just painted tasteful colors, gorgeous brand new hardwood floors throughout, gourmet kitchen with granite countertops, stainless-steal almost new appliances, new cabinets, and marble floors. This unit also offers several very large closets and lots of storage space. You can also enjoy almost never ending city views, from a screened in porch overlooking south. This great complex also offers a 24/7 concierge service, a garage space (plus extra outside spaces available for a fee), more storage in basement, in-building laundry. The common fees include central air, heating and hot water. It is located within walking distance of (or near) several shops, grocery stores, mall, restaurants, train station, parks, hospital, health clubs, public transportation, and so much more. Click here for the listing info: 44 Strawberry Hill Ave, Unit 4J, Stamford, Connecticut MLS # 98440145 Click here for the listing info: 44 Strawberry Hill A

Manhattan Real Estate Market Report - 3rd Quarter 2009

Significant findings in Q3 2009 CLOSING PRICES CONTINUE TO DECLINE FROM A YEAR AGO . Condo and co-op resale median prices have declined since last quarter and are still significantly down from a year ago. The overall average Manhattan sale price (which includes: condo resales, co-op resales, and new development closings) decreased by 2.3% to $1.254M since last quarter, and by 16.4% since last year. Similarly, the overall median Manhattan sale price declined by 0.3% since last quarter to $760K, and by 11.6% since last year. Condo resale median prices increased by 5.3% since last quarter to $937,500, but decreased by 14.6% since last year. Average price ($1.471M) is up 11.1% for the quarter but down 26.2% since last year. Co-op resale median prices decreased by 2.1% to $575K compared to last quarter and by 11.5% since last year. Average sales price ($878K) decreased by 4.3% since last quarter and by 21.3% since the prior year. New Developments m

Bailout can help you buy a home

President Barack Obama's economic stimulus plan includes strategies to help homebuyers and stimulate the U.S. housing market. The primary feature of the housing portion of the 2009 Obama economic stimulus package features an $8,000 first-time homebuyer refundable tax credit for qualifying buyers who purchase a home between Jan. 1, 2009 and Dec. 1, 2009. The total tax credit a homebuyer can get in this initiative is equal to 10 percent of the purchase price, or a maximum of $8,000 -- to get the full $8,000 credit, the property must cost at least $80,000. This is a refundable tax credit, which is far better than a tax deduction. If the total taxes you owe the IRS for the year -- whether withheld from your pay or not -- are less than $8,000, you will get a refund for the balance. As an example, if you buy a house as a first-time buyer for say $85,000, you are entitled to an $8,000 tax credit. If your total tax owed for the year is $10,000 and you've already paid in $6,000 (still o

Rates tumble for 6th week

Mortgage rates fell for the sixth week in a row, to a level last seen in the spring. The benchmark 30-year fixed-rate mortgage fell 3 basis points to 5.22 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.34 discount and origination points. One year ago, the mortgage index was 6.2 percent; four weeks ago, it was 5.4 percent. The benchmark 15-year fixed-rate mortgage fell 4 basis points to 4.6 percent. The benchmark 5/1 adjustable-rate mortgage fell 3 basis points to 4.66 percent. The 30-year fixed has been below 6 percent all year in Bankate's weekly survey. It rose as high as 5.95 percent in early June, not long after hovering at 5.2 percent or lower for four weeks in a row in March and April. There was a minor refinancing boomlet back then, and another one now. According to the Mortgage Bankers Association, loan applications spiked 16.4 pe