The Mortgage Bank Association reports that loan applications went up by 23% last week.  This is an overwhelming increase but it does not come as a surprise considering the extremely low interest rates.  The rates are at a record low of close to 3% on a 30-year fixed mortgage, in most cases.  In 1981, rates were typically closer to 20%!   While these rates are favorable to buyers, the group that’s taking the most advantage of the situation are current homeowners hoping to refinance.  According to the MBA “the vast majority of the applications — 82.2% — were to refinance existing loans rather than purchase new ones”.  Experts agree that while these conditions can be taken advantage of by both groups, the low rates can deter prospective buyers who are waiting in the hopes that rates will decrease even further.  It may take an increase in rates to get those that are on the fence to take action- they wouldn’t want to miss out before they climb too far back up, even if higher rates do indicate an improvement in the economy.

If you’ve been considering buying, also be aware that you’ll be competing with investors who are out there taking advantage of low home prices and paying with cash.

Buyers and homeowners alike still have to qualify in able to benefit from low interest rates, which has not been easy in the past couple years.  However,  distressed homeowners are expected to find hope when the Obama administration changes the rules for the Home Affordable Refinance Program so that many more people will qualify for a refinance.  Stay tuned for further updates on changes to the program!

Courtesy of CNN Money and Mecury News

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According to a recent report from RealtyTrac (a foreclosure listing firm), foreclosure rates are at their lowest since 2007. “Total filings, including default notices and bank repossessions were down 33% for the year to 2.7 million”.  In 2011, 1.9 million homes were filed for foreclosure last year which is a good improvement from 2010 (down 20%), and even better in comparison to the amount of filings in 2007.  While this may come as good news, RealtyTrac also points out the fact that the banks have not caught up with the amount of foreclosure paperwork.  They’ve taken more precaution due to the “robo-signing” scandal of 2010, and therefore the entire process has been delayed.  The listing firm predicts that when the banks do catch up, the result will be a higher foreclosure rate for 2012.  However, rates aren’t expected to be as drastic as they were in 2010.

Low prices in the housing market will also continue to be a challenge for homeowners, as many of them will lack the home equity that might otherwise be available as emergency money.  On the flip side, low mortgage rates are making it possible for many people to refinance their homes, in the hopes of avoiding any future financial troubles.

The areas hit hardest by foreclosure remain California (with 7 cities in the top 10), Arizona, and Nevada.

With over 6 years of experience in the short sale process and an instinctive ability to understand the needs of her clients, Angel Lynn is your trusted real estate expert. Whether you’re a buyer, a seller, or one of the millions currently in danger of foreclosure,  contact us today!  We’re here to help!

Courtesy of :

msnbc.com

Yahoo Finance

CNN Real Estate

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Filed under: Around The Area, Facing Foreclosure?, Miscellaneous, Short Sale Process, Short Sales Info
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If you’ve been thinking about doing a short sale on your home, you now have more motivation to get the ball rolling.  On December 31st, 2012 the Mortgage Forgiveness and Debt Relief Act is scheduled to expire.

Congress passed the act in 2007 for the purpose of helping distressed home owners.  Before the act was passed, any forgiven debt on a primary residence was considered taxable income.  The act states that if you borrow up to $2 million and the lender forgives the debt, such as in the case of a short sale, you are not responsible for the taxes owed on the forgiven amount.  When a short sale is processed, the lender is responsible for providing a Form 1099-C to the IRS, which indicates the amount of debt that is being forgiven.

If the act is not extended, the tax liabilities on borrowers could cause even more of a financial burden for those that are already struggling.  Hopefully there will be an extension but there’s no guarantee, so don’t delay!

You can view the details of the Mortgage Forgiveness and Debt Relief Act here:  http://www.irs.gov/individuals/article/0,,id=179414,00.html

With over 6 years of experience in the short sale process and an instinctive ability to understand the needs of her clients, Angel Lynn is your trusted real estate expert. Whether you’re a buyer, a seller, or one of the millions currently in danger of foreclosure,  contact us today!  We’re here to help!

Courtesy of:

nevada.realestaterama.com

mattandrandy.com

Filed under: Facing Foreclosure?, Miscellaneous, mortgage, Short Sales Info
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Those shopping for more than just toys this Holiday Season are in luck! Mortgage rates have hit record lows, once again. Based on Freddie Mac’s survey, the average rate on a 30-year fixed mortgage rate is at 3.9% this week.  According to CNN Real Estate, that’s “down from 3.94% last week, and is the lowest in the 40-year history of the survey”.  This is also good news for existing home sales and existing home owners. Frank Nothaft, NAR chief economist, notes that existing home sales  increased for a second month in a row.  That’s more last month than they have sense January.  And the Mortgage Bankers Association claims, “about 80% of all mortgage applications last week came from existing homeowners looking to refinance their old loans into more affordable ones”.

Rates are best in the West, averaging 3.85% with a 30-year mortgage.  The highest rates are  in the Southern states at an average of 3.97%.

Courtesy of nasdaq.com and CNN Money

Angel Lynn Realty wishes you a safe and happy holiday!  Don’t forget that we are still taking donations in the office for the Sacramento Food Bank!  So clean out your pantry of all the non-perishables  and give to those who need it more than you!

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