Housing starts in January reached their highest rate in four months, increasing more than analysts expected, the Commerce Department reports. Housing starts jumped 14.6 percent to a seasonally adjusted annual rate of 596,000 units.
Housing starts in January were helped by a 77.7 percent jump in multi-family homes. Single-family home construction, on the other hand, fell 1 percent.
Meanwhile, new home completions dropped to a record low of 512,000 units in January, falling 9.5 percent from the previous month.
And after housing permits surged in December by 15.3 percent, housing permits for future housing projects sank in January. New building permits dropped 10.4 percent to a 562,000-unit pace in January--mostly pulled down by a drop in multi-family and single-family unit permits.
Showing posts with label housing. Show all posts
Showing posts with label housing. Show all posts
Tuesday, February 22, 2011
Monday, January 24, 2011
The Top Ten Packing Tips for your Next Move
Packing is not an activity that many people enjoy or gladly anticipate. In fact, packing can be downright laborious and stressful. However, with the right amount of planning and forethought, this dreaded activity can actually be completed without too many headaches.
Here is your game plan for easing up your packing stress:
1. Start early – The absolute best thing to do is start packing early. Even if the move is several months away, there are a number of tasks you can begin taking on regarding packing so that you don’t find yourself short on time and in over your head packing at the last minute.
2. Take it slow – Starting early gives you the opportunity to take the packing process slowly. Tackling one room each week, for example, is a sensible goal, as you can really take the time to sort through your belongings and decide what stays and what goes.
3. Hold a garage sale – Speaking of things that go, consider holding a garage sale to get rid of unwanted belongings and housewares. A garage sale is also a great idea for earning extra cash to cover your moving costs and expenses!
4. Consider what you can’t take with you – One of things that every seller should consider is where they are moving and what they can and cannot take with them. For example, it may make sense to take measurements of the rooms in your new home to get a better idea of how your furniture will fit into the space. If you can’t accommodate all your furniture, it makes more sense to get rid of it now and avoid taking it with you.
5. Donate or gift – If you can’t bring all your belongings with you, consider gifting or donating them.
6. Use a dot system – Head to your local office supply store and pick up different colored dot stickers. Allocate a color for each room and stick it on the appropriate box. The stickers will be easily seen so you can be sure you are directing the packed boxes to the appropriate area of your new home.
7. Hit your local liquor store – Liquor stores have loads of boxes and, because they are constructed to hold heavy liquor bottles, you can be sure they are strong enough for your packing needs.
8. Keep your valuables safe – Instead of packing up your belongings and leaving them for the movers, ask a close friend or family member to hold onto your valuables until you move.
9. Avoid overpacking – If you can’t pick up a box once it is packed, it is overpacked!
10. Consider what to not pack – Don’t forget that you and your family will need a certain number of personal effects during the move, so make sure you don’t accidentally pack them.
Here is your game plan for easing up your packing stress:
1. Start early – The absolute best thing to do is start packing early. Even if the move is several months away, there are a number of tasks you can begin taking on regarding packing so that you don’t find yourself short on time and in over your head packing at the last minute.
2. Take it slow – Starting early gives you the opportunity to take the packing process slowly. Tackling one room each week, for example, is a sensible goal, as you can really take the time to sort through your belongings and decide what stays and what goes.
3. Hold a garage sale – Speaking of things that go, consider holding a garage sale to get rid of unwanted belongings and housewares. A garage sale is also a great idea for earning extra cash to cover your moving costs and expenses!
4. Consider what you can’t take with you – One of things that every seller should consider is where they are moving and what they can and cannot take with them. For example, it may make sense to take measurements of the rooms in your new home to get a better idea of how your furniture will fit into the space. If you can’t accommodate all your furniture, it makes more sense to get rid of it now and avoid taking it with you.
5. Donate or gift – If you can’t bring all your belongings with you, consider gifting or donating them.
6. Use a dot system – Head to your local office supply store and pick up different colored dot stickers. Allocate a color for each room and stick it on the appropriate box. The stickers will be easily seen so you can be sure you are directing the packed boxes to the appropriate area of your new home.
7. Hit your local liquor store – Liquor stores have loads of boxes and, because they are constructed to hold heavy liquor bottles, you can be sure they are strong enough for your packing needs.
8. Keep your valuables safe – Instead of packing up your belongings and leaving them for the movers, ask a close friend or family member to hold onto your valuables until you move.
9. Avoid overpacking – If you can’t pick up a box once it is packed, it is overpacked!
10. Consider what to not pack – Don’t forget that you and your family will need a certain number of personal effects during the move, so make sure you don’t accidentally pack them.
Tuesday, November 16, 2010
3 Reasons to Sell a Home Soon
What do you tell a client who asks whether to sell a house now or wait? Steve McLinden, real estate adviser with Bankrate.com, offers these three good reasons not to wait, even though the holidays are approaching:
1. The market is improving. Most markets have either turned or are close to turning.
2. All real estate is local. Homes in great locations are always in demand.
3. Spring is coming soon. Many potential buyers are starting their online searches right after the holidays, making mid- to late February a great time to start marketing.
Source: Bankrate.com, Steve McLinden
1. The market is improving. Most markets have either turned or are close to turning.
2. All real estate is local. Homes in great locations are always in demand.
3. Spring is coming soon. Many potential buyers are starting their online searches right after the holidays, making mid- to late February a great time to start marketing.
Source: Bankrate.com, Steve McLinden
Sunday, November 14, 2010
Realtors' report says Dallas-Fort Worth home prices rose slightly in third quarter
Dallas-Fort Worth home prices were up by a small margin in the third quarter, and most of the increase was probably due to more sales of higher-priced homes.
The National Association of Realtors reported Thursday that median home sales prices in the D-FW area were up 1.6 percent from third quarter 2009.
The small gain here came as nationwide prices were basically flat, the Realtors said.
"Even with swings in home sales, prices this year have been changing very little from year-ago readings," Realtors' chief economist Lawrence Yun said in the report. The Realtors are forecasting flat home prices in the year ahead.
The just-released national data lines up with local figures that show median home prices in North Texas are up 1 percent year-to-date.
Of the 155 metropolitan areas that the Realtors track each quarter, 76 markets showed price declines.
Home sales in North Texas have slowed dramatically since federal housing tax credits expired at the end of April. But the bulk of the decline has been for lower- and moderate-priced homes. High-end home sales are still rising in many neighborhoods.
"Now that the tax credits have expired, we have seen a real drop-off in the activity at the lower end of the price spectrum," said Ted Wilson, a housing analyst with Dallas-based Residential Strategies Inc. "As a result, the median price has climbed."
David Brown of MetroStudy Inc. agreed: "The average and median prices have increased over the last year because of the surge in sales of homes priced over $500,000."
The National Association of Realtors reported Thursday that median home sales prices in the D-FW area were up 1.6 percent from third quarter 2009.
The small gain here came as nationwide prices were basically flat, the Realtors said.
"Even with swings in home sales, prices this year have been changing very little from year-ago readings," Realtors' chief economist Lawrence Yun said in the report. The Realtors are forecasting flat home prices in the year ahead.
The just-released national data lines up with local figures that show median home prices in North Texas are up 1 percent year-to-date.
Of the 155 metropolitan areas that the Realtors track each quarter, 76 markets showed price declines.
Home sales in North Texas have slowed dramatically since federal housing tax credits expired at the end of April. But the bulk of the decline has been for lower- and moderate-priced homes. High-end home sales are still rising in many neighborhoods.
"Now that the tax credits have expired, we have seen a real drop-off in the activity at the lower end of the price spectrum," said Ted Wilson, a housing analyst with Dallas-based Residential Strategies Inc. "As a result, the median price has climbed."
David Brown of MetroStudy Inc. agreed: "The average and median prices have increased over the last year because of the surge in sales of homes priced over $500,000."
Monday, November 1, 2010
Sales volume of Texas homes down in third quarter, flat year-to-date
According to the Texas Quarterly Housing Report released today, the volume of real estate sales in Texas decreased in the third quarter of 2010, but was essentially flat year-to-date, due to an early peak in the market driven by the expiration of federal homebuyer tax credits.
For the period of July through September 2010, sales of existing single-family homes decreased 20% to 48,625 compared to the same quarter of the prior year. Year-to-date, home sales are esentially flat at 158,699, down less than one percent compared to 2009. The median price home in Texas remained virtually unchanged in 2010-Q3 at $152,000, and the months of inventory of Texas homes edged upwards to 8 months.
Bill Jones, chairman of the Texas Association of REALTORS®, commented on the results, "If you view these results only within the third quarter, they appear discouraging. However, the expiration of homebuyer tax credits distorts the picture. When evaluated on a broader year-to-date basis, it becomes clear the market is performing consistently compared to 2009. It's also encouraging to see how Texas real estate is holding its value."
Chairman Jones continued, "This year, Texas is withstanding the economic storm that has ravaged other parts of the country, in large part because the leaders of our state made the protection of private-property rights a priority. As we approach the upcoming legislative session, it's important for lawmakers to continue to support public policies that keep Texas on the leading edge of the economic recovery."
The Texas Association of REALTORS® works in partnership with lawmakers to promote policies that protect property rights and homeowners throughout the state. Currently, Texas ranks 41st out of 50 states in homeownership. Electing lawmakers who advocate on behalf of Texas homeowners is crucial to opening the path of homeownership — and the wealth-building opportunities it creates — for more Texans.
Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, noted, "This is a difficult time to compare statistics because we're comparing two very different markets — one with substantial support from the federal government in the form of tax credits and one without that support. Thus, year-to-date sales volume is a more meaningful figure to evaluate the current condition and that is still on pace with 2009."
Gaines added, "Although it's hard to predict where the market is headed, if you look at the long-term trends that determine real estate growth, Texas is in a good position. As a state, we are still adding population and we've experienced positive employment growth since almost the first of the year, which is key to rejuvenating our economy overall."
The Texas Quarterly Housing Report is issued four times a year by the Texas Association of REALTORS® with multiple listing service (MLS) data compiled and analyzed by the Real Estate Center at Texas A&M University.
For the period of July through September 2010, sales of existing single-family homes decreased 20% to 48,625 compared to the same quarter of the prior year. Year-to-date, home sales are esentially flat at 158,699, down less than one percent compared to 2009. The median price home in Texas remained virtually unchanged in 2010-Q3 at $152,000, and the months of inventory of Texas homes edged upwards to 8 months.
Bill Jones, chairman of the Texas Association of REALTORS®, commented on the results, "If you view these results only within the third quarter, they appear discouraging. However, the expiration of homebuyer tax credits distorts the picture. When evaluated on a broader year-to-date basis, it becomes clear the market is performing consistently compared to 2009. It's also encouraging to see how Texas real estate is holding its value."
Chairman Jones continued, "This year, Texas is withstanding the economic storm that has ravaged other parts of the country, in large part because the leaders of our state made the protection of private-property rights a priority. As we approach the upcoming legislative session, it's important for lawmakers to continue to support public policies that keep Texas on the leading edge of the economic recovery."
The Texas Association of REALTORS® works in partnership with lawmakers to promote policies that protect property rights and homeowners throughout the state. Currently, Texas ranks 41st out of 50 states in homeownership. Electing lawmakers who advocate on behalf of Texas homeowners is crucial to opening the path of homeownership — and the wealth-building opportunities it creates — for more Texans.
Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, noted, "This is a difficult time to compare statistics because we're comparing two very different markets — one with substantial support from the federal government in the form of tax credits and one without that support. Thus, year-to-date sales volume is a more meaningful figure to evaluate the current condition and that is still on pace with 2009."
Gaines added, "Although it's hard to predict where the market is headed, if you look at the long-term trends that determine real estate growth, Texas is in a good position. As a state, we are still adding population and we've experienced positive employment growth since almost the first of the year, which is key to rejuvenating our economy overall."
The Texas Quarterly Housing Report is issued four times a year by the Texas Association of REALTORS® with multiple listing service (MLS) data compiled and analyzed by the Real Estate Center at Texas A&M University.
Thursday, October 28, 2010
5 Traits of Today's Home Buyers
A survey by American Lives, a consumer research firm in California, conducted a study for the trade magazine Builder to answer that question. Here are their conclusions:
· They are young. Most are under 45. Half said they had annual household incomes of $75,000 or less. Two-thirds are married.
· They are frugal. They consistently told surveyors they were eager to live a simple lifestyle.
· They are concerned about their financial future. About 70 percent said the economy is “not so good” with 27 percent saying it was getting worse and 27 percent saying it was getting better, and two-thirds saying it would get better in a year. Some 55 percent said they were concerned that they might lose their jobs.
· They see themselves as energy efficient but not necessarily “green.” About 32 percent said they’d pay extra for energy-efficient features but only 16 percent said they’d pay extra for recycled or renewable construction materials.
· Neighborhood is important. Ninety-five percent said they thought the community was as important as the home itself. Seventy-nine percent wanted the most square footage they could afford, but 69 percent said they’d consider a smaller home in the right neighborhood.
Source: Inman News, Mary Umberger (10/27/2010)
· They are young. Most are under 45. Half said they had annual household incomes of $75,000 or less. Two-thirds are married.
· They are frugal. They consistently told surveyors they were eager to live a simple lifestyle.
· They are concerned about their financial future. About 70 percent said the economy is “not so good” with 27 percent saying it was getting worse and 27 percent saying it was getting better, and two-thirds saying it would get better in a year. Some 55 percent said they were concerned that they might lose their jobs.
· They see themselves as energy efficient but not necessarily “green.” About 32 percent said they’d pay extra for energy-efficient features but only 16 percent said they’d pay extra for recycled or renewable construction materials.
· Neighborhood is important. Ninety-five percent said they thought the community was as important as the home itself. Seventy-nine percent wanted the most square footage they could afford, but 69 percent said they’d consider a smaller home in the right neighborhood.
Source: Inman News, Mary Umberger (10/27/2010)
Tuesday, October 26, 2010
Get Credit Score in Order Before Applying for Credit
If your mailbox is starting to fill up again with credit card offers and you're tempted to apply, be realistic about your chances of qualifying.
Increased credit card solicitations are an indication that things have gotten much better for card issuers, with declines in defaults and delinquencies, said Bill Hardekopf, CEO of LowCards.com and author of "The Credit Card Guidebook."
"They are once again aggressively pursuing new customers, but this time around, they seem to really be focusing on those with good or excellent credit scores," he said.
Consumers may have to jump through more hoops than before to get a credit card today. But it's not impossible to get a card.
Before you apply for a credit card, get a copy of your credit report and your FICO credit score, the dominant score used by lenders, which uses a score range of 300 to 850.
Use your credit score as a guide to what kind of credit card you should apply for.
If your score is lower than you expected, check your credit report for errors and correct them before you apply for credit. If your score is too low, be prepared to pay.
"If your FICO score is 750 or above, you should apply for the cards specifically offered for excellent credit," Hardekopf said. "A score of 720 or above is considered good credit; 660 to 720 is acceptable."
If your score is below 650, you could find yourself in the subprime category, and you could have a tough time getting approved, he said.
"Anything below a 650 FICO score seems to be the dividing line between prime and subprime," agreed John Ulzheimer, president of consumer education at Credit.com.
The scary thing is that as of April, 35.2 percent of consumers had FICO scores below 650, according to the company that produces the influential number.
"Scores below 650 are there for a reason," Ulzheimer said. "It's negative information, such as late payments, foreclosures, bankruptcy, tax liens, hitting your credit report and excessive credit card debt."
According to Hardekopf, "consumers should not waste their time and apply for a card for which they are not qualified. If you apply for too many credit cards at once, this is a red flag and may actually cause your score to drop."
Some credit card issuers will give you some guidance as to what your credit level is.
For example, Capital One considers you to have excellent credit if you've had a loan or credit card for at least five years, have a credit limit of more than $10,000, have never been more than 60 days late on a credit card, medical bill or loan payment and have never declared bankruptcy.
You have average credit in Capital One's eyes if you have a credit card limit of less than $5,000 or you may have been late on more than one credit card, medical bill or loan payment in the past six months.
How you pay your credit card bill also should determine what kind of card you apply for.
If you pay off your card each month, you should look for a card with a good rewards program, Hardekopf said.
But if you carry a balance each month, you want a card with the lowest annual percentage rate and then work your tail off to pay off the card as quickly as possible.
"You really need to decide before you apply for a card what kind of credit card customer you are," Hardekopf said.
(c) 2010, The Dallas Morning News.
Increased credit card solicitations are an indication that things have gotten much better for card issuers, with declines in defaults and delinquencies, said Bill Hardekopf, CEO of LowCards.com and author of "The Credit Card Guidebook."
"They are once again aggressively pursuing new customers, but this time around, they seem to really be focusing on those with good or excellent credit scores," he said.
Consumers may have to jump through more hoops than before to get a credit card today. But it's not impossible to get a card.
Before you apply for a credit card, get a copy of your credit report and your FICO credit score, the dominant score used by lenders, which uses a score range of 300 to 850.
Use your credit score as a guide to what kind of credit card you should apply for.
If your score is lower than you expected, check your credit report for errors and correct them before you apply for credit. If your score is too low, be prepared to pay.
"If your FICO score is 750 or above, you should apply for the cards specifically offered for excellent credit," Hardekopf said. "A score of 720 or above is considered good credit; 660 to 720 is acceptable."
If your score is below 650, you could find yourself in the subprime category, and you could have a tough time getting approved, he said.
"Anything below a 650 FICO score seems to be the dividing line between prime and subprime," agreed John Ulzheimer, president of consumer education at Credit.com.
The scary thing is that as of April, 35.2 percent of consumers had FICO scores below 650, according to the company that produces the influential number.
"Scores below 650 are there for a reason," Ulzheimer said. "It's negative information, such as late payments, foreclosures, bankruptcy, tax liens, hitting your credit report and excessive credit card debt."
According to Hardekopf, "consumers should not waste their time and apply for a card for which they are not qualified. If you apply for too many credit cards at once, this is a red flag and may actually cause your score to drop."
Some credit card issuers will give you some guidance as to what your credit level is.
For example, Capital One considers you to have excellent credit if you've had a loan or credit card for at least five years, have a credit limit of more than $10,000, have never been more than 60 days late on a credit card, medical bill or loan payment and have never declared bankruptcy.
You have average credit in Capital One's eyes if you have a credit card limit of less than $5,000 or you may have been late on more than one credit card, medical bill or loan payment in the past six months.
How you pay your credit card bill also should determine what kind of card you apply for.
If you pay off your card each month, you should look for a card with a good rewards program, Hardekopf said.
But if you carry a balance each month, you want a card with the lowest annual percentage rate and then work your tail off to pay off the card as quickly as possible.
"You really need to decide before you apply for a card what kind of credit card customer you are," Hardekopf said.
(c) 2010, The Dallas Morning News.
Sunday, October 24, 2010
What You Should Know Before Buying a Home
There are so many things to understand as you embark on purchasing a home, especially if it's your first purchase. Learn the basics as you get started and understand everything you need to know as it relates to financing.
Here are 10 tips about financing:
1. Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions and mortgage bankers make home loans; mortgage brokers process them. The lenders will take an application, process the loan documents, and see the loan through to the funding stage.
2. If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. A lender should be able to advise you on whether your credit history will prevent you from qualifying for a home loan.
3. You will need a down payment. Down payment requirements vary depending on the type of loan. Many down payment assistance programs exist. These programs may loan or grant you the funds necessary for the down payment. Consult with a lender about programs available in your area.
4. You will need funds for closing costs. Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to:
* Escrow fees charged by the company handling the transaction
* Title policy issuance fees charged by the title insurance company
* Mortgage insurance fees
* Fire and homeowners insurance
* County Recorder fees for recording your deed
* Loan origination fees
Consult your lender for an actual estimate of these costs, as well as information about loan programs which can assist in financing your closing costs
5. Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate they constitute the yield on your loan for the lender. Some lenders charge a higher interest rate to compensate for charging no points. It is important to comparison shop lenders to make sure your loan is at a competitive yield.
6. Should you select a mortgage with a fixed rate or an adjustable rate? The answer to this question depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. If rates are high, an adjustable rate might be attractive since subsequent rate drops could reduce your monthly payments. Additionally, lenders may offer a low rate during the first few years of an adjustable mortgage to make it appealing to you. If interest rates are low you might want to take a fixed rate to protect yourself against the possibility of rising interest rates.
7. Be aware of the two main types of loan categories.
* Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Some loans may require mortgage insurance.
* Government Loans. These include Federal Housing Administration (FHA) fixed and adjustable rate mortgage loans, and Veterans Administration (VA) fixed rate mortgage loan
8. If you are a low or moderate income home buyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies, like the California Housing Finance Agency (CalHFA). Most lenders specializing in real estate mortgage loans are aware of these types of loan programs.
9. Why might I have to pay mortgage insurance? Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Generally, conventional loans that require larger down payments do not require mortgage insurance. Mortgage insurance is always required on FHA mortgage loans.
10. Many organizations offer home loan counseling to prospective home buyers. These organizations provide classes for homebuyers to cover the steps to homeownership. They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down payment, and other important pieces of information. Many first-time home buyer programs require homebuyers to attend this type of class to be eligible for selected programs.
Here are 10 tips about financing:
1. Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions and mortgage bankers make home loans; mortgage brokers process them. The lenders will take an application, process the loan documents, and see the loan through to the funding stage.
2. If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. A lender should be able to advise you on whether your credit history will prevent you from qualifying for a home loan.
3. You will need a down payment. Down payment requirements vary depending on the type of loan. Many down payment assistance programs exist. These programs may loan or grant you the funds necessary for the down payment. Consult with a lender about programs available in your area.
4. You will need funds for closing costs. Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to:
* Escrow fees charged by the company handling the transaction
* Title policy issuance fees charged by the title insurance company
* Mortgage insurance fees
* Fire and homeowners insurance
* County Recorder fees for recording your deed
* Loan origination fees
Consult your lender for an actual estimate of these costs, as well as information about loan programs which can assist in financing your closing costs
5. Some loans have "points" and some do not. A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate they constitute the yield on your loan for the lender. Some lenders charge a higher interest rate to compensate for charging no points. It is important to comparison shop lenders to make sure your loan is at a competitive yield.
6. Should you select a mortgage with a fixed rate or an adjustable rate? The answer to this question depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home. If rates are high, an adjustable rate might be attractive since subsequent rate drops could reduce your monthly payments. Additionally, lenders may offer a low rate during the first few years of an adjustable mortgage to make it appealing to you. If interest rates are low you might want to take a fixed rate to protect yourself against the possibility of rising interest rates.
7. Be aware of the two main types of loan categories.
* Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Some loans may require mortgage insurance.
* Government Loans. These include Federal Housing Administration (FHA) fixed and adjustable rate mortgage loans, and Veterans Administration (VA) fixed rate mortgage loan
8. If you are a low or moderate income home buyer, there are special programs designed to help you. These loans are available through private lenders, as well as local and state housing agencies, like the California Housing Finance Agency (CalHFA). Most lenders specializing in real estate mortgage loans are aware of these types of loan programs.
9. Why might I have to pay mortgage insurance? Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Generally, conventional loans that require larger down payments do not require mortgage insurance. Mortgage insurance is always required on FHA mortgage loans.
10. Many organizations offer home loan counseling to prospective home buyers. These organizations provide classes for homebuyers to cover the steps to homeownership. They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down payment, and other important pieces of information. Many first-time home buyer programs require homebuyers to attend this type of class to be eligible for selected programs.
Saturday, October 23, 2010
Survey: Economy Driving People Out of the Housing Market
Nearly two-thirds of Americans say the current economic situation is making them less likely to buy a house, according to a new national survey by FindLaw.com (http://www.findlaw.com), a popular legal information website.
Sixty-three percent of American adults say they are less likely to buy a house because of the current state of the economy. Despite record-low mortgage rates and an abundance of houses available on the market, only 8 percent of people say the current economic situation makes them more likely to buy a house. About a quarter of people – 28 percent – say they are neither more likely nor less likely to buy a house because of the economy.
In particular, the current economy is driving lower-income individuals and families out of the market. People with annual incomes less than $50,000 were significantly more likely to say they are less inclined to buy a house than people with higher incomes.
"The current economic situation has greatly changed the dynamics of the housing market," said Stephanie Rahlfs, an attorney and editor with FindLaw.com. "Although mortgage rates are near record lows, stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures. Together, these factors are causing many people to shy away from the idea of buying a house. Buying a home, selling a home and owning a home are all becoming more complicated, and it's important to know the ins and outs of contracts, finances and your rights as a buyer, seller or owner."
Free Internet resources such as the FindLaw Real Estate center (http://realestate.findlaw.com/) can provide helpful information on buying, selling and owning a home, including obtaining a loan, borrowers' rights, finding the best mortgage, homeowners' rights, avoiding foreclosure and more. It also has useful information for renters, including negotiating a lease, tenants' rights, and fair housing and discrimination laws.
The FindLaw.com survey was conducted using a demographically balanced telephone survey of 1,000 American adults and has a margin of error of plus-or-minus 3 percent.
Sixty-three percent of American adults say they are less likely to buy a house because of the current state of the economy. Despite record-low mortgage rates and an abundance of houses available on the market, only 8 percent of people say the current economic situation makes them more likely to buy a house. About a quarter of people – 28 percent – say they are neither more likely nor less likely to buy a house because of the economy.
In particular, the current economy is driving lower-income individuals and families out of the market. People with annual incomes less than $50,000 were significantly more likely to say they are less inclined to buy a house than people with higher incomes.
"The current economic situation has greatly changed the dynamics of the housing market," said Stephanie Rahlfs, an attorney and editor with FindLaw.com. "Although mortgage rates are near record lows, stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures. Together, these factors are causing many people to shy away from the idea of buying a house. Buying a home, selling a home and owning a home are all becoming more complicated, and it's important to know the ins and outs of contracts, finances and your rights as a buyer, seller or owner."
Free Internet resources such as the FindLaw Real Estate center (http://realestate.findlaw.com/) can provide helpful information on buying, selling and owning a home, including obtaining a loan, borrowers' rights, finding the best mortgage, homeowners' rights, avoiding foreclosure and more. It also has useful information for renters, including negotiating a lease, tenants' rights, and fair housing and discrimination laws.
The FindLaw.com survey was conducted using a demographically balanced telephone survey of 1,000 American adults and has a margin of error of plus-or-minus 3 percent.
Sunday, October 10, 2010
8 Tips to Getting Your Loan Modification Application Reviewed
Many homeowners seeking a loan modification to lower their monthly mortgage payments and avoid foreclosure continue to find the application process a complex web, often causing them to give up before their application is ever reviewed by their mortgage company.
Certified housing counselors for CredAbility, a national nonprofit credit counseling and education agency, speak daily with hundreds of homeowners seeking a loan modification or other solutions to keep their homes. The organization has several tips for people that will help them increase the chances that their application is reviewed as quickly as possible.
"A homeowner needs to collect and send several documents that tell the mortgage company why you need a modification, and it needs to be done in a timely, organized manner," said Michelle Jones, senior vice president of counseling for CredAbility. "Once a homeowner has submitted these documents, they need to stay in regular contact with the company. With hundreds of thousands of applications under consideration, homeowners must take matters into their own hands to make sure their application gets to the right person at the company."
Here are CredAbility's recommendations for homeowners seeking a loan modification:
Speak With a Nonprofit Housing Counselor to Understand Investor Rules for Your Loan. Every homeowner's mortgage loan is different, so don't rely on information you may have heard from your neighbor or your sister-in-law, even if they received a loan modification. For example, if your 30-year, fixed interest rate loan is owned by one investor, and your neighbor's is owned by another investor, the rules governing a loan modification may be quite different. A certified counselor at a nonprofit credit counseling agency can help you find the investor who owns your mortgage and determine your options.
Submit All Documents That Prove Your Current Income. Income verification is critical, but homeowners sometimes don't provide their mortgage company with recent documents. If you lost a job in June, don't provide pay stubs from March. In addition to recent pay stubs and other traditional income sources, homeowners should also provide a document called a "contribution letter." This letter explains the source of any household income that is not easily verified. For example, a servicer will want to know the total household income of a married couple, even if only one person's name is on the loan. The letter could also include income verifying that you have a roommate that pays rent.
Submit Current Bank Statements. Recent bank statements allow your mortgage company to verify your income and expenses. This information enables the mortgage company to see your monthly expenses for food, utilities and other expenses and determine whether you will have enough money to make your mortgage payment.
Mail Your Documents to the Mortgage Company. Many people prefer to send all of their documents by fax or scan their documents and send them via email. However, postal mail is usually more reliable, especially if it's addressed to the person you spoke with at the mortgage company. Faxes often get lost.
Label Each Page With Your Name and Loan Number. One of the most common complaints among homeowners is that the mortgage company loses their documents. You can help your own cause by writing your name and loan number on each page of every document.
Fully Explain Any Recent or Unique Income Changes. For example, a bank deposit may show various one-time transactions, such as an asset sale, cash gifts from family members or a bonus. Unless you explain this one-time increase in income, the servicer may not understand it and use this information to deny your loan modification.
Include a Timeline in Your Hardship Letter. Every application for a loan modification must include a "hardship letter" that explains the reasons for your request. But the letter must have specific dates explaining when an income loss has occurred. If your spouse lost her job on July 15 and your family income will decrease by $3,000 beginning in August, your letter needs to provide these details.
Call Your Mortgage Company Every Week. Many homeowners work extremely hard to submit all of their paperwork to the servicer - and then wait for weeks before picking up the telephone to call them about the status of their application. This is a mistake for several reasons: the person handling your application may quit; the application may be transferred to another person; the company may need more information. You get the picture.
Certified housing counselors for CredAbility, a national nonprofit credit counseling and education agency, speak daily with hundreds of homeowners seeking a loan modification or other solutions to keep their homes. The organization has several tips for people that will help them increase the chances that their application is reviewed as quickly as possible.
"A homeowner needs to collect and send several documents that tell the mortgage company why you need a modification, and it needs to be done in a timely, organized manner," said Michelle Jones, senior vice president of counseling for CredAbility. "Once a homeowner has submitted these documents, they need to stay in regular contact with the company. With hundreds of thousands of applications under consideration, homeowners must take matters into their own hands to make sure their application gets to the right person at the company."
Here are CredAbility's recommendations for homeowners seeking a loan modification:
Speak With a Nonprofit Housing Counselor to Understand Investor Rules for Your Loan. Every homeowner's mortgage loan is different, so don't rely on information you may have heard from your neighbor or your sister-in-law, even if they received a loan modification. For example, if your 30-year, fixed interest rate loan is owned by one investor, and your neighbor's is owned by another investor, the rules governing a loan modification may be quite different. A certified counselor at a nonprofit credit counseling agency can help you find the investor who owns your mortgage and determine your options.
Submit All Documents That Prove Your Current Income. Income verification is critical, but homeowners sometimes don't provide their mortgage company with recent documents. If you lost a job in June, don't provide pay stubs from March. In addition to recent pay stubs and other traditional income sources, homeowners should also provide a document called a "contribution letter." This letter explains the source of any household income that is not easily verified. For example, a servicer will want to know the total household income of a married couple, even if only one person's name is on the loan. The letter could also include income verifying that you have a roommate that pays rent.
Submit Current Bank Statements. Recent bank statements allow your mortgage company to verify your income and expenses. This information enables the mortgage company to see your monthly expenses for food, utilities and other expenses and determine whether you will have enough money to make your mortgage payment.
Mail Your Documents to the Mortgage Company. Many people prefer to send all of their documents by fax or scan their documents and send them via email. However, postal mail is usually more reliable, especially if it's addressed to the person you spoke with at the mortgage company. Faxes often get lost.
Label Each Page With Your Name and Loan Number. One of the most common complaints among homeowners is that the mortgage company loses their documents. You can help your own cause by writing your name and loan number on each page of every document.
Fully Explain Any Recent or Unique Income Changes. For example, a bank deposit may show various one-time transactions, such as an asset sale, cash gifts from family members or a bonus. Unless you explain this one-time increase in income, the servicer may not understand it and use this information to deny your loan modification.
Include a Timeline in Your Hardship Letter. Every application for a loan modification must include a "hardship letter" that explains the reasons for your request. But the letter must have specific dates explaining when an income loss has occurred. If your spouse lost her job on July 15 and your family income will decrease by $3,000 beginning in August, your letter needs to provide these details.
Call Your Mortgage Company Every Week. Many homeowners work extremely hard to submit all of their paperwork to the servicer - and then wait for weeks before picking up the telephone to call them about the status of their application. This is a mistake for several reasons: the person handling your application may quit; the application may be transferred to another person; the company may need more information. You get the picture.
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