Short Sales to Get Faster With Fannie, Freddie.

Short Sales to Get Faster With Fannie, Freddie.

The Federal Housing Finance Agency announced Tuesday that it is issuing new guidelines that set out to more quickly qualify borrowers and speed up the short sales process.

Among the new guidelines, home owners with a mortgage backed by Fannie Mae or Freddie Mac will be able to sell their home in a short sale even if they are current on their mortgage, assuming they can prove a hardship. Eligible hardships often include death of a borrower or co-borrower, divorce, disability, or job relocation (such as a job transfer or new employment 50 miles away from their current home).

The new FHFA guidelines also permit mortgage servicers to speed up the processing of short sales for borrowers with eligible hardships without needing additional approval from Fannie Mae or Freddie Mac.

“These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities,” FHFA Acting Director Edward J. DeMarco said in a public statement.

Also among the new guidelines:

— Military service members who are being relocated will automatically be eligible for short sales, even if they are current on their mortgages.

— Fannie Mae and Freddie Mac will waive the right to pursue deficiency judgments for borrowers who short sale who have sufficient income or assets and can make a financial contribution or sign a promissory note.

— Freddie Mac and Fannie Mae will offer up to $6,000 to second lien holders in order to quicken the pace of a short sale. “Previously, second lien holders could slow down the short sale process by negotiating for higher amounts,” according to the FHFA.

The new short sales guidelines will go into effect Nov. 1.

The National Association of REALTORS® worked with the FHFA and the government-sponsored enterprises in creating the new short sales guidelines. NAR applauded the FHFA’s approval of the guidelines.

“REALTORS® appreciate the FHFA’s efforts to increase the number of short sale approvals, which limit the losses incurred by home owners, lenders, the federal government and taxpayers,” says Moe Veissi, NAR president. “We hope these new guidelines will allow many more hardworking American home owners that would have previously been denied a short sale to now be approved and avoid defaulting on their mortgage loan.”

For more information on the new guidelines, visit www.realtor.org/topics/short-sales.

Source: Federal Housing Finance Agency and the National Association of REALTORS®

Real Estate Investors Top 8 College Towns.

Real Estate Investors Top 8 College Towns

Real Estate Investors increasingly are eyeing college towns to snag properties at discounts and turn them into rental properties that could potentially offer steady cash flow with student tenants. But which college towns offer some of the best returns?

Realtor.com recently released its second annual list of the best college towns for Real Estate Investors, factoring in average monthly rental prices and comparing it to estimated mortgage payments of a median priced home.

The following are the top eight college towns for Real Estate Investors, according to this year’s report.

1. Boston

Median list price: $334,900

Average rent: $3,084

Mortgage payment estimate: $1,240

2. Princeton, N.J.

Median list price: $265,000

Average rent: $2,056

Mortgage payment estimate: $980

3. Chicago

Median list price: $194,000

Average rent: $1,630

Mortgage payment estimate: $720

4. Washington, D.C.

Median list price: $395,000

Average rent: $2,637

Mortgage payment estimate: $1,460

5. Houston

Median list price: $183,000

Average rent: $1,134

Mortgage payment estimate: $680

6. Philadelphia

Median list price: $234,900

Average rent: $1,475

Mortgage payment estimate: $870

7. Atlanta

Median list price: $174,900

Average rent: $1,187

Mortgage payment estimate: $650

8. Pittsburgh

Median list price: $140,000

Average rent: $1,122

Mortgage payment estimate: $520

Source: Realtor.com

Customer Satisfaction With Real Estate Companies Falling?

Customer Satisfaction With Real Estate Companies Falling?

A new J.D. Power and Associates study suggests that customer satisfaction with real estate companies is falling among home buyers and sellers. In fact, the study—in its fifth year—suggests that home buyer satisfaction with real estate companies, in particular, is at its lowest level recorded. Seller satisfaction is also down this year, according to the 2012 Home Buyer/Seller Satisfaction Study of more than 2,700 home buyers and sellers.

The study measures customer satisfaction with the largest real estate companies, factoring in views over the salesperson, office, and service.

So what’s gotten customers so unhappy lately? Some real estate companies may be taking the blame from sellers and buyers for the reality of the real estate market, in which qualifying for a loan is tougher, home values have fallen the last few years, and low inventories of for-sale homes are making the choices sometimes slim for buyers.

“Although home buyers and sellers are aware of continuing challenges in the real estate market, a key reason customer satisfaction is down is that customer expectations are not being met, either in terms of sellers having to compromise on their listing price, or for buyers who are compromising on the home’s condition and size,” says Christina Cooley, spokesperson at J.D. Power and Associates. “This is understandably frustrating all around. However, we also find that real estate companies that set themselves apart in terms of working closely with their customers and meeting their needs may plan an important role in both managing expectations, but more importantly, exceeding them.”

Not surprisingly, the study found that sellers tend to be most satisfied with real estate companies that were able to get them the greatest proportion of the list price when selling. According to the study, sellers reported receiving 89 percent of their list price.

Cooley says that high-performing companies also tend to make more effort to put customers’ at ease by taking the time to educate them about the realities of the market, such as by using comparable sales information, and by following up with them after closing thus creating more customer satisfaction.

Source: J.D. Power and Associates

REALTOR ® vs. FSBOs

Survey Reveals Success of REALTORS® vs. FSBOs

Survey Reveals Success of REALTOR ® vs. FSBOs

Home sellers are more than twice as likely to get their homes sold if they use a REALTOR ®, rather than trying to sell their home on their own, according to a new survey conducted by HomeGain of 400 home owners nationwide from July 31 to Aug. 10.

Seventy-three percent of the home owners surveyed said they used a REALTOR ®. On the other hand, 21 percent of those surveyed said they tried to sell their home themselves.

The survey found that 66 percent of the home owners who used a REALTOR ® were able to successfully sell their home compared to 30 percent of for-sale-by-owners.

What’s more, the survey found that 22 percent of the for-sale-by-owners eventually decided to use a REALTOR ® to try to sell their home. More than half of those who did were then able to sell their homes too, the survey found.

“The value of a REALTOR ® in a real estate transaction is made strikingly apparent in our 2012 FSBO verses REALTOR® survey of home sellers,” says Louis Cammarosano, general manager of HomeGain. “A qualified REALTOR® understands the dynamics of the market and can better assist home sellers in the pricing and preparation of their homes for sale.”

Source: HomeGain

Housing Permits at 4-Year High, Builders Still Cautious.

Housing Permits at 4-Year High, Builders Still Cautious

Housing permits — a future gauge for home building — reached its highest level since August 2008, rising 6.8 percent in July over the previous month, the U.S. Census Bureau reports. What’s more, Housing permits are up nearly 30 percent over year ago levels.

Still, companies are being cautious about overbuilding.

“While many builders believe that the outlook for housing is considerably brighter than it has been in years, we are being very careful about keeping inventories tight and not building ahead of demand,” says Barry Rutenberg, chairman of the National Association of Home Builders. “At the same time, builders are drawing more permits for new construction so we can accommodate buyers and renters as they return to the marketplace.”

Single-family housing permits in July posted their best pace since March 2010, rising 4.5 percent last month. Meanwhile, the at-times volatile multifamily market saw permits rise 11.2 percent in July.

While housing permits offered continued hope for a recovery in the home building industry, housing starts did fall slightly in July, dropping 1.1 percent compared to June, the Census reports. Last month, single-family housing starts dropped 6.5 percent. On the other hand, multifamily starts posted their strongest gain since February, rising 12.3 percent last month, the Census Bureau reports.

Source: The National Association of Home Builders

HARP Refinancing Continues to Surge.

HARP Refinancing Continues to Surge

About a third of all Fannie Mae and Freddie Mac loans refinanced in June went through the recently revamped Home Affordable Refinancing Program (HARP). That’s up from a 20 percent share in April.

Additionally, the number of HARP refinancing deals with high loan-to-value (LTV) ratios went up substantially. According to Mortgage News Daily, changes to the previous HARP program, such as removing the 125 percent LTV ceiling and eliminating fees, seem to be driving increased participation.

Freddie and Fannie refinanced 382,539 loans in June, 125,866 of which were though HARP. The total number of loans written under the restructured HARP in the first six months of this year totaled 422,969, exceeding the 400,024 written during 2011.

Source: “HARP Refinancing Continues to Surge, High LTV Share Skyrockets,” Mortgage News Daily

First-Time Home Buyers? The 5 Popular Markets.

First-Time Home Buyers? The 5 Popular Markets.

Loans backed by the Federal Housing Administration often are a lure to first-time home buyers with its low down payment requirements. In some areas, FHA-backed loans are more common than others, creating hot-spots for first-time home buyers.

Inman News recently identified the top housing markets for first-time home buyers, factoring in where FHA-backed loans are the highest and the lowest median housing costs.

The following five markets made its list for top first-time home buyers spots:

1.   Wilmington, Del.

Percent of total sales to first-time buyers with FHA loans: 31

First Quarter 2012 median sales price for new and existing homes: $170,000

2.   Charleston, West Va.

Percent of total sales to first-time buyers with FHA loans: 30.7

Median sales price for new and existing homes: $131,500

3.   Visalia-Porterville, Calif.

Percent of total sales for first-time buyers with FHA loans: 30.5

Median sales price for new and existing homes: $118,000

4.   Merced, Calif.

Percent of total sales for first-time buyers with FHA loans: 29.6

Median sales price for new and existing homes: $107,000

5. Fresno, Calif.

Percent of total sales for first-time buyers with FHA loans: 28.8

Median sales price for new and existing homes: $135,000

See what other cities made the list.

Source: “10 Best Housing Markets for First-time Home Buyers,” Inman News (July 12, 2012)

Retiring? How Long Should You Work?

Retiring? How Long Should You Work?

How much longer are you prepared to work in the real estate industry before retiring? A new study says that any employee should plan to work up until age 70 if they want to be comfortable in retirement.

About 51 percent of working households are at-risk if they are retiring at age 65, according to a study by the Center for Retirement Research at Boston College. Yet, 86 percent of households would be prepared if they are retiring by age 70, the study shows.

Alicia Munnell, director of the Center for Retirement Research at Boston College, says the goal should be to delay dipping into savings for retirement as long as possible.

“How Social Security payments are calculated in retirement plays an important part of the work-longer strategy,” USA Today reports on the study. “A [baby boomer] who starts taking Social Security benefits at age 70 would have roughly a 75 percent larger base benefit than if the same person started drawing Social Security retirement benefits at 62.” Age 62 is the earliest retirement age for Social Security benefits, but the study finds that only about 30 percent of households would be prepared to retire at that age.

Every year a person delays retiring and receiving Social Security up to 70, he stands to possibly get an extra 7 percent to 8 percent per year (for those born 1943 or later), according to the study.

Source: “Working Until 70 Could Ease Retirement Finances,” USA Today (July 4, 2012)