Home prices are at their most affordable in many years, which has opened up homeownership to many who had been locked out during the housing boom. And now, the federal government -- and many states - are launching plans to hook up buyers of repossessed properties with very attractive terms.
The feds made nearly $6 billion available for the Neighborhood Stabilization Program, which intends to combat blight by reducing the number of foreclosed homes on the market.
The money, which has only started to flow during the past few weeks despite much of it being authorized last summer, will go to state and local housing authorities and non-profit organizations involved in providing housing for middle- and low-income families.
"The NSP was designed to help deal with all the properties in foreclosure around the nation," said Antonio Reilly, executive director of the Wisconsin Housing and Economic Development Authority (WHEDA), which will administrate the program in several counties in the state.
The bulk of the NSP funds will come from the $3.92 billion that was approved as part of the Housing and Economic Recovery Act of 2008 passed in August.
By regulation, these funds must be spent in communities with the highest incidences of foreclosures and subprime loans. They'll go to helping households earning no more than 120% of the median income of the local area, with 25% of the money going to families earning less than half the median.
All the home sales using these funds must be for primary residences.
Different plans
Much of the $121 million of the NSP funds allocated for Arizona will be used to purchase and rehabilitate foreclosed homes. The agencies involved will then sell the properties at discounts from their market values to middle- and low-income buyers.
In Wisconsin, WHEDA will use the money to subsidize mortgage loans for people buying foreclosures. They can either use it to buy down interest rates, for downpayments or to pay closing costs. Reilly said there could also be grants to homebuyers to make needed repairs.
In the Charleston, S.C., area, the Lowcountry Housing Trust, a non-profit organization, has $7.4 million to acquire and redevelop about 70 properties with 10 for quick resale. The others will be used for rentals.
In Las Vegas, the Department of Neighborhood Services will split the initial NSP funds three ways. About half of the $14 million it receives will go to a home buyer assistance plan that will provide downpayment and closing costs assistance, and pay for some repairs. All told, a buyer may receive as much as $50,000 in assistance, according to its director, Stephen Harsin, though he expects the average to be about $30,000.
There will also be a lease-to-own program. And there'll be a program in which the department will buy and rehab housing, mostly single-family homes and condos, to rent out to low-income families. All told, about 300 homes will be put back on the market in Las Vegas.
In some hard-hit towns, such as Cleveland and Detroit, where many of the vacant foreclosed houses have already be so damaged by vandalism and nearby home values are extremely low, authorities want to use the money to demolish derelict houses. The lots will go into a land bank for later development when neighborhoods recover.
Little movement yet
Nationwide, the program has gotten off to a slow start and money is only now beginning to be spent.
Part of the lack of speed is conforming to all the rules and regulations governing the use of funds, according to Las Vegas' program manager Tim Whitright. Following federal guidelines, like filing RSPs (request for proposals), which draw ideas from community groups and other interested parties, have "slowed down the time line," he said.
He said it's now taking staff approximately four to five months to get the systems in place to implement the plan. Now, the first phase is ready to be launched.
One issue that slowed the implementation process for the Lowcountry Housing Trust were environmental regulations, according to Tammie Hoy, its executive director Before the group could use the NSP funds to buy up and rehab properties, it had to have studies performed outlining any environmental impact the deals might have.
It has completed that phase and now expects to begin buying properties by July 30.
More funds coming
Even before the first round of spending has filtered down to help many families buy homes, a second round of NSP funding is is poised to enter the pipeline. This money was approved as part of the Recovery and Reinvestment Act of 2009 (stimulus plan) that was signed into law in February.
It provides $1.93 billion to be allocated on a competitive basis. Potential grantees will be non-profits like community development organization certified by the U.S. Treasury Department.
They'll be judged on, among other things, their abilities to execute projects, how well they can leverage the money and how well the plans they offer can work to stabilize neighborhoods.
A third allocation, called NSP-TA, of $50 million provides cash to pay for technical assistance in running programs funded by the first two rounds of cash.
Tuesday, June 30, 2009
MORTGAGE RATES MOSTLY FLAT AMID MIXED ECONOMIC NEWS
in which the 30-year fixed-rate mortgage (FRM) averaged 5.42 percent with an average 0.7 point for the week ending June 25, 2009, up from last week when it averaged 5.38 percent. Last year at this time, the 30-year FRM averaged 6.45 percent.
The 15-year FRM this week averaged 4.87 percent with an average 0.7 point, down from last week when it averaged 4.89 percent. A year ago at this time, the 15-year FRM averaged 6.04 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.99 percent this week, with an average 0.7 point, up from last week when it averaged 4.97 percent. A year ago, the 5-year ARM averaged 5.99 percent.
One-year Treasury-indexed ARMs averaged 4.93 percent this week with an average 0.7 point, down from last week when it averaged 4.95 percent. At this time last year, the 1-year ARM averaged 5.27 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Mixed economic reports on the state of the housing market helped hold mortgage rates fairly flat this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Existing home sales rose for the second consecutive month in May by 2.4 percent, slightly less than the market consensus forecast; however the median sales price was 16.8 percent below that of the same time last year, according to the National Association of Realtors® (NAR). In contrast, new home sales fell 0.6 percent and the median sales price was only 3.4 percent lower than May 2008.
"On a more positive note, the inventory of unsold homes has lessened from a year ago, which may help cushion further house price declines. The number of existing homes for sale was 15.3 percent below that of May 2008, and new homes for sale fell by 35.9 percent. In addition, distressed properties accounted for only about one-third of existing home sales in May, down from over a half in March, according to the NAR.”
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
The 15-year FRM this week averaged 4.87 percent with an average 0.7 point, down from last week when it averaged 4.89 percent. A year ago at this time, the 15-year FRM averaged 6.04 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.99 percent this week, with an average 0.7 point, up from last week when it averaged 4.97 percent. A year ago, the 5-year ARM averaged 5.99 percent.
One-year Treasury-indexed ARMs averaged 4.93 percent this week with an average 0.7 point, down from last week when it averaged 4.95 percent. At this time last year, the 1-year ARM averaged 5.27 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Mixed economic reports on the state of the housing market helped hold mortgage rates fairly flat this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Existing home sales rose for the second consecutive month in May by 2.4 percent, slightly less than the market consensus forecast; however the median sales price was 16.8 percent below that of the same time last year, according to the National Association of Realtors® (NAR). In contrast, new home sales fell 0.6 percent and the median sales price was only 3.4 percent lower than May 2008.
"On a more positive note, the inventory of unsold homes has lessened from a year ago, which may help cushion further house price declines. The number of existing homes for sale was 15.3 percent below that of May 2008, and new homes for sale fell by 35.9 percent. In addition, distressed properties accounted for only about one-third of existing home sales in May, down from over a half in March, according to the NAR.”
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
What’s Up With The “We Buy Houses” Signs?
There are many companies in Phoenix, AZ that offer the services of “We buy houses”. In fact, one would easily notice the large amounts of street signs that state We Buy Houses in Phoenix throughout major roads. These companies have become very popular these days due to the tough real estate market. With over 50,000 homes currently for sale on the MLS, selling your home fast is a very difficult task. Because of the long wait, many homeowners are starting to see the value of using a company the pledges We Buy Houses in Phoenix.
Businesses that state We Buy Houses in Phoenix have some definite advantages. We Buy Houses companies will typically pay with cash, close fast and many don’t charge any commissions or fees. Although these companies do not pay market value for your home, they will buy your home in as is condition. Many homeowners these days simply don’t have the money to repair or fix up their homes before selling.
The company that advertises We Buy Homes in Phoenix can actually save homeowners money. Frustrated homeowners often give up and abandon their homes. An abandoned home can be an invitation for neighborhood kids and transients to enter. Vandalism, graffiti, and theft can be present with an abandoned home. Furthermore, the stress on a homeowner who has a vacant home can be enormous.
Many people see the value in calling a We Buy Houses company in Phoenix. We Buy Homes in Phoenix companies can close on the home quickly. They usually don’t charge any fees and will buy the home in as is condition. Selling a damaged home in a tough market can be huge relief of stress for a homeowner.
There are many We Buy Houses companies in Phoenix, AZ. With that in mind, homeowners who are looking for a We Buy Homes company to buy their house must make sure the business is legitimate. One way to verify the track record of a We Buy Houses company in Phoenix is to call the Better Business Bureau. Make sure to check and see how long the company has been in business, and how many complaints the company has received. Many companies that advertise We Buy Homes in Phoenix are highly reputable and honest businesses. But with that in mind, always do your homework before signing any documents.
Businesses that state We Buy Houses in Phoenix have some definite advantages. We Buy Houses companies will typically pay with cash, close fast and many don’t charge any commissions or fees. Although these companies do not pay market value for your home, they will buy your home in as is condition. Many homeowners these days simply don’t have the money to repair or fix up their homes before selling.
The company that advertises We Buy Homes in Phoenix can actually save homeowners money. Frustrated homeowners often give up and abandon their homes. An abandoned home can be an invitation for neighborhood kids and transients to enter. Vandalism, graffiti, and theft can be present with an abandoned home. Furthermore, the stress on a homeowner who has a vacant home can be enormous.
Many people see the value in calling a We Buy Houses company in Phoenix. We Buy Homes in Phoenix companies can close on the home quickly. They usually don’t charge any fees and will buy the home in as is condition. Selling a damaged home in a tough market can be huge relief of stress for a homeowner.
There are many We Buy Houses companies in Phoenix, AZ. With that in mind, homeowners who are looking for a We Buy Homes company to buy their house must make sure the business is legitimate. One way to verify the track record of a We Buy Houses company in Phoenix is to call the Better Business Bureau. Make sure to check and see how long the company has been in business, and how many complaints the company has received. Many companies that advertise We Buy Homes in Phoenix are highly reputable and honest businesses. But with that in mind, always do your homework before signing any documents.
Thursday, June 18, 2009
Philippines Real Estate
LIVING in the Philippines has never been this resilient. It is true that the real estate sector was the hardest and the first sector hit in the US financial crisis last year which rippled throughout the world but thankfully, the Philippines and the rest of the Southeast Asia remains strong.
It is because Southeast Asia's fiscal reforms have already been in place after the economic crisis that hit the region in 1997. And so we are cushioned from the ripples of the current global financial crisis.
What does it mean for the Philippines? It means people from the United States, Canada and Europe whose mortgaged houses were foreclosed can afford to run to the Philippines and buy real properties here. Why? It's because real estate here is so affordable along with the cost of living.
Buying real estate properties in the Philippines is not complicated even to a foreigner. We use a system similar to that of the United States. We also have licensed real estate brokers here for your convenience so there will be no more hassle for you to buy the house that you like.
An archipelago composed of 7,000 islands, the Philippines has lots of prime real estate locations. From uptown suburbs to midtown condos, it's up to you.
It is because Southeast Asia's fiscal reforms have already been in place after the economic crisis that hit the region in 1997. And so we are cushioned from the ripples of the current global financial crisis.
What does it mean for the Philippines? It means people from the United States, Canada and Europe whose mortgaged houses were foreclosed can afford to run to the Philippines and buy real properties here. Why? It's because real estate here is so affordable along with the cost of living.
Buying real estate properties in the Philippines is not complicated even to a foreigner. We use a system similar to that of the United States. We also have licensed real estate brokers here for your convenience so there will be no more hassle for you to buy the house that you like.
An archipelago composed of 7,000 islands, the Philippines has lots of prime real estate locations. From uptown suburbs to midtown condos, it's up to you.
Prevent Real Estate Closing Delays
It is a jarring experience to find that, after weeks of planning for a certain move-in date, that your new home's closing has been delayed for whatever reason. If you're already in this situation, well you know how frustrating it is to have to deal with whatever legal or other blocks to your finally setting up residence in your own home is! If you're not, here are some tips (no doubt you delayed home owners are groaning and nodding your heads) to avoid frustration and loss of money while you try to find a place to live and storage for your belongings.
Closing delays can happen for a variety of reasons, which is why it's hard to give general advice in dealing with them. We can only try to prevent undertaking a real estate transaction that is fraught with problems such as existing liens, prior claims to the houses - including ex spouses that seem to pop up at inconvenient times, miraculously materializing lawsuits and other charming situations that can tie up a home for years while people argue over who gets what.
One of the best ways to prevent from getting into a transaction that could be hard to pull yourself out of is to engage a real estate attorney to conduct your legal affairs. The expense of this is well worth it when you think of the money you could have to spend finding temporary lodging or fighting someone who decides not to sell at the last minute - it happens! A good attorney will look over all the paperwork and make sure that you are protected in case something untoward happens.
Ensure that your mortgage loan is aboveboard and has no problems with it. If you are preapproved, ask for a list of conditions that you need to remain so. Do not make large purchases in the weeks leading up to your home sale. Avoid making major changes in your life - it is best to schedule a home purchase well ahead of or well after weddings, births, job changes, etc. if you can manage it.
Make your purchase of the home contingent on it passing the recommended inspections. You don't want to be fighting with the owner over a case of mold or rot or some other unpleasant, expensive structural detail. Also, an inspection that shows some defects in the home may work in your favor when it comes time to bargain about price.
The final walk through should also be a part of the home's sale. Don't close the sale until you have ascertained that everything that was to be removed - including the former homeowner - is removed and the home is in the same condition that it appeared to be when you decided to buy it. Make the sale contingent upon the successful completion of the walk through.
The best way to prevent delays in closing is to be prepared and do all your homework beforehand. Many closings are delayed through the failure of a person to prepare for their purchase of their home and to guard against actions by the seller that could materially affect their taking possession.
Closing delays can happen for a variety of reasons, which is why it's hard to give general advice in dealing with them. We can only try to prevent undertaking a real estate transaction that is fraught with problems such as existing liens, prior claims to the houses - including ex spouses that seem to pop up at inconvenient times, miraculously materializing lawsuits and other charming situations that can tie up a home for years while people argue over who gets what.
One of the best ways to prevent from getting into a transaction that could be hard to pull yourself out of is to engage a real estate attorney to conduct your legal affairs. The expense of this is well worth it when you think of the money you could have to spend finding temporary lodging or fighting someone who decides not to sell at the last minute - it happens! A good attorney will look over all the paperwork and make sure that you are protected in case something untoward happens.
Ensure that your mortgage loan is aboveboard and has no problems with it. If you are preapproved, ask for a list of conditions that you need to remain so. Do not make large purchases in the weeks leading up to your home sale. Avoid making major changes in your life - it is best to schedule a home purchase well ahead of or well after weddings, births, job changes, etc. if you can manage it.
Make your purchase of the home contingent on it passing the recommended inspections. You don't want to be fighting with the owner over a case of mold or rot or some other unpleasant, expensive structural detail. Also, an inspection that shows some defects in the home may work in your favor when it comes time to bargain about price.
The final walk through should also be a part of the home's sale. Don't close the sale until you have ascertained that everything that was to be removed - including the former homeowner - is removed and the home is in the same condition that it appeared to be when you decided to buy it. Make the sale contingent upon the successful completion of the walk through.
The best way to prevent delays in closing is to be prepared and do all your homework beforehand. Many closings are delayed through the failure of a person to prepare for their purchase of their home and to guard against actions by the seller that could materially affect their taking possession.
Subscribe to:
Posts (Atom)