Taken from responses to the question "When will it end?" by other Realtors.
1) As long as the banks are involved in real estate transactions which they know nothing about, it probably won't end for years to come. These banks are unbelievable. They just sent us a short sale package back saying that the word "Phoenix" was abbreviated "Phx" and it need to be spelling out on the listing contract. Once it was corrected, it took them two weeks to come back and demand that all parties sign the listing contract. Say what? Since when does a buyer get to look at listing contracts between the seller and broker?
Problems like this one are occurring every day. Yes, I wonder too, when will it end?
2) It will end when the large prevelent foreclosures and short sales end. I agree with (above), each bank/company has their own rules for these properties. It is not a matter of understanding how to deal with the foreclosure, because it is almost impossible to learn all the different rules.
3) Good question! I definitely agree with both (of the above), but would add that until unemployment abates and jobs open up or are created, we will continue to have issues.
4) There is also the perception by consumers that the market is in complete disarray and they are waiting for it to return to "normal." There are almost no buyers in the market because they think prices will continue to drop. Potential sellers know they are going to take a beating if they try to sell. They all think that, at some point, the market will return to where it was. Until consumers realize that this, in many ways, is the new normal, buyers and sellers will continue to sit on the sidelines.
Then there is the issue of financing. But I'll leave that for another commenter.
ED Comment: These are the views of four Realtors that offer reflection of where the market is and when will we see some stability return. "Normal" is not a return to our past, it is where we are today and for the foreseeable future. If you are sitting on the fence, waiting will not provide a better time to act for several years to come.
Denis
Showing posts with label concerns. Show all posts
Showing posts with label concerns. Show all posts
Thursday, February 24, 2011
Wednesday, September 8, 2010
Improve Your Credit Score Before Searching for a Home
From RISMEDIA via Lowes -
Improve Your Credit Score Before Searching for a Home
By Paige Tepping
RISMEDIA, September 8, 2010--Many prospective homeowners find out the hard way the importance of a good credit score when they apply for a home mortgage, especially after the subprime loan crisis. If you are considering buying a home in the near future, it is a good idea to give your credit score a check-up and then take positive steps to improve your credit score if you find problems. Ideally, it is best to begin working on improving your credit score at least six months before you plan to start shopping for a home.
According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.
The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.
By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.
Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.
If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.
Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.
After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.
It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.
By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.
Lowe's Customer Care(CON8) 1065 Curtis Bridge Rd. Wilkesboro, NC 28698.
© 2010 by Lowe's®. All rights reserved.
Improve Your Credit Score Before Searching for a Home
By Paige Tepping
RISMEDIA, September 8, 2010--Many prospective homeowners find out the hard way the importance of a good credit score when they apply for a home mortgage, especially after the subprime loan crisis. If you are considering buying a home in the near future, it is a good idea to give your credit score a check-up and then take positive steps to improve your credit score if you find problems. Ideally, it is best to begin working on improving your credit score at least six months before you plan to start shopping for a home.
According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.
The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.
By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.
Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.
If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.
Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.
After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.
It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.
By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.
Lowe's Customer Care(CON8) 1065 Curtis Bridge Rd. Wilkesboro, NC 28698.
© 2010 by Lowe's®. All rights reserved.
Tuesday, June 16, 2009
Real Estate Outlook
From Realty Times of June 16, 2009
Real Estate Outlook: Mortgage Rates and Inflation
by Kenneth R. Harney
Most of the key economic indicators for real estate continue to be at least moderately positive -- home sales are up, prices are stabilizing or up, unsold inventories are down, and even new unemployment filings are down slightly.
But there's a storm cloud looming on the near horizon that everybody needs to keep an eye on: Mortgage rates have been moving up -- fast. Bond market investors are spooked by the federal government's massive borrowings to pay for the stimulus and the deficit.
They're worried that serious inflation may be coming and they're demanding higher rates on the ten year Treasury bonds that are the benchmark used to price mortgages.
But let's focus first on the positive side of the ledger: A key housing price index released last week suggests that the long-awaited turnaround may be underway. The Integrated Asset Services Index - which is based on data from 15,000 local market segments around the U.S. -- went flat on a national basis in May for the first time in a year.
Prices in the Northeast were up by six tenths of a percent for the month. In the Midwest they rose by one tenth of a percent, they were down slightly in the South, and flat in the Western region.
Now that might not impress you, but David McCarthy, CEO of the research and services firm, said flat means bottoming out - and in his words, "that's encouraging (for housing) for the long term."
In some California markets that had experienced severe hits during the darkest days of the bust, the price changes for the month were larger than the national numbers.
San Bernadino prices gained 1.1 percent between April and May. Monterey saw a 3.7 percent increase and Sacramento homes were up four tenths of a percent.
Meanwhile, ZIP Realty's monthly national survey of unsold housing inventories found the number of MLS listings in 28 major markets down by 4 percent in May, and by 24 percent from year-earlier levels.
Now on to the sobering news on mortgage rates: No one can predict precisely how high rates are headed, but in the past two weeks they've jumped by more than a percentage point. The Mortgage Bankers Association reports that last week alone average 30-year fixed rate jumped to 5.6 percent from five and a quarter the week before.
Some analysts project rates to hit and surpass the 6 percent mark if current trends continue.
Bottom line: Given that house prices have turned around, and interest costs are soaring, value-conscious shoppers need to get their contracts and loan applications in -- quick!
Copyright © 2009 Realty Times. All Rights Reserved.
Real Estate Outlook: Mortgage Rates and Inflation
by Kenneth R. Harney
Most of the key economic indicators for real estate continue to be at least moderately positive -- home sales are up, prices are stabilizing or up, unsold inventories are down, and even new unemployment filings are down slightly.
But there's a storm cloud looming on the near horizon that everybody needs to keep an eye on: Mortgage rates have been moving up -- fast. Bond market investors are spooked by the federal government's massive borrowings to pay for the stimulus and the deficit.
They're worried that serious inflation may be coming and they're demanding higher rates on the ten year Treasury bonds that are the benchmark used to price mortgages.
But let's focus first on the positive side of the ledger: A key housing price index released last week suggests that the long-awaited turnaround may be underway. The Integrated Asset Services Index - which is based on data from 15,000 local market segments around the U.S. -- went flat on a national basis in May for the first time in a year.
Prices in the Northeast were up by six tenths of a percent for the month. In the Midwest they rose by one tenth of a percent, they were down slightly in the South, and flat in the Western region.
Now that might not impress you, but David McCarthy, CEO of the research and services firm, said flat means bottoming out - and in his words, "that's encouraging (for housing) for the long term."
In some California markets that had experienced severe hits during the darkest days of the bust, the price changes for the month were larger than the national numbers.
San Bernadino prices gained 1.1 percent between April and May. Monterey saw a 3.7 percent increase and Sacramento homes were up four tenths of a percent.
Meanwhile, ZIP Realty's monthly national survey of unsold housing inventories found the number of MLS listings in 28 major markets down by 4 percent in May, and by 24 percent from year-earlier levels.
Now on to the sobering news on mortgage rates: No one can predict precisely how high rates are headed, but in the past two weeks they've jumped by more than a percentage point. The Mortgage Bankers Association reports that last week alone average 30-year fixed rate jumped to 5.6 percent from five and a quarter the week before.
Some analysts project rates to hit and surpass the 6 percent mark if current trends continue.
Bottom line: Given that house prices have turned around, and interest costs are soaring, value-conscious shoppers need to get their contracts and loan applications in -- quick!
Copyright © 2009 Realty Times. All Rights Reserved.
Sunday, February 22, 2009
Top 10 People to Blame for the Financial Crisis
Get your dartboards out - here are the names of those to put on the target!
From National Realty News of Thursday, February 19, 2009 - By Stefan Swanepoel:
TOP 10 PEOPLE
.
From National Realty News of Thursday, February 19, 2009 - By Stefan Swanepoel:
.
Wednesday, February 18, 2009
Inside the Meltdown
Last night I watched a 1 hour show on the Public Broadcast System's "Frontline" called "Inside the Meltdown".
It was, without question, the most comprehensive explanation I have seen of why we are in the economic mess facing us today. I urge you to spend the nearly 1 hour viewing the show to better understand the mistakes that were made and where we are headed now. It clearly explains why lending for homes came to a screching halt, what toxic loans are, and why we must not let this ever happen again.
We regrettably have now begun to nationalize the nation's financial structure as we now own, as citizens, or as our government if you prefer, the 2 largest financial firms in the world, Fannie Mae and Freddie Mac and a percent of the dozen major banking firms.
You can view the show on your own computer and develop your own opinions on how to deal with what the future holds by going to
FRONTLINE
and clicking on "Inside the Meltdown". It takes a few minutes to load - then click on the Green Arrow and turn up your sound.
You are given the opportunity to download the video by mowing your cursor around the page and playing the program in Real Player at your own pace if you prefer. I also suggest you close any open pages on your browser to ensure a clean viewing of the program.
Folks, IT IS WORTH THE TIME! The better we understand how and why this happened, the better we can individually deal with it - and perhaps even help to prevent our grandchildren from facing this terrible ordeal again!
.
It was, without question, the most comprehensive explanation I have seen of why we are in the economic mess facing us today. I urge you to spend the nearly 1 hour viewing the show to better understand the mistakes that were made and where we are headed now. It clearly explains why lending for homes came to a screching halt, what toxic loans are, and why we must not let this ever happen again.
We regrettably have now begun to nationalize the nation's financial structure as we now own, as citizens, or as our government if you prefer, the 2 largest financial firms in the world, Fannie Mae and Freddie Mac and a percent of the dozen major banking firms.
You can view the show on your own computer and develop your own opinions on how to deal with what the future holds by going to
and clicking on "Inside the Meltdown". It takes a few minutes to load - then click on the Green Arrow and turn up your sound.
You are given the opportunity to download the video by mowing your cursor around the page and playing the program in Real Player at your own pace if you prefer. I also suggest you close any open pages on your browser to ensure a clean viewing of the program.
Folks, IT IS WORTH THE TIME! The better we understand how and why this happened, the better we can individually deal with it - and perhaps even help to prevent our grandchildren from facing this terrible ordeal again!
.
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