May 10

Fannie Offers Spur to Avoid Foreclosure
Posted on May 10th, 2010 at 5:30 AM by socar

Fannie Mae will make it easier for some struggling homeowners to buy houses in the future if they avoid foreclosure in the present.

Under rules released this month that will take effect in July, some troubled borrowers who give up their homes by voluntarily transferring ownership through a “deed in lieu of foreclosure” or by completing a short sale, where a home is sold for less than the amount owed, will be eligible in two years to apply for a new mortgage backed by Fannie.

Currently, borrowers who complete a deed-in-lieu of foreclosure must wait four years before they can take out a loan that Fannie is willing to purchase.

 The new policies from Fannie, a government-backed mortgage-finance company that together with Freddie Mac backs about half of the U.S. mortgage market, don’t relax waiting periods for borrowers who go through foreclosure.

In 2008, Fannie lengthened that waiting period to five years from four.

To quality for the reduced waiting period, most borrowers will need to make a down payment of at least 20%, although borrowers with extenuating circumstances, such as a job loss, will be required to put down just 10%.

Even if waiting periods are shortened, many borrowers may be unlikely to repair their credit that quickly in order to get a loan in the first place. Foreclosures and short sales generally have the same effect on a borrower’s credit score and can stay on a credit report for up to seven years.

The new rules are designed to make foreclosure alternatives more attractive to borrowers at a time when the Obama administration is ramping up its effort to encourage banks to consider alternatives such as short sales. That program sets pre-approved terms for short sales and offers financial incentives to borrowers and lenders to complete such sales.

Freddie Mac requires borrowers to wait five years after a foreclosure and four years after a short sale or deed-in-lieu.

Those periods can fall to three years for a foreclosure or two years for a short sale when borrowers show extenuating circumstances.

Officials at the Federal Housing Administration, the government mortgage insurer, say they are considering changes to their rules, which require borrowers with a foreclosure to wait at least three years before becoming eligible for an FHA-backed loan.

“We are beginning to think about post-recession, how you address borrowers who became unemployed through no fault of their own … and now deserve the right to re-enter the housing-finance system,” said FHA Commissioner David Stevens.

But some worry that policies enabling defaulted borrowers to more quickly resume homeownership could encourage more people to default.

“We don’t want to say that there’s a ‘get out of jail’ card during recessions to walk away from your house,” Mr. Stevens said.

In December, the FHA unveiled rules for borrowers who completed a short sale.

Those who have missed payments prior to completing a short sale or who didn’t face a hardship and simply took advantage of declining market conditions to buy a new home must wait three years.

April 27

Homebuyers living in rural areas to obtain affordable mortgages
Posted on April 27th, 2010 at 7:41 PM by socar

The continued availability of government guaranteed mortgages for rural homebuyers was virtually assured yesterday when the House Financial Services Committee voted to approve H.R. 5017 . The unanimous vote will send the Rural Housing Preservation and Stabilization Act of 2010 to the full House of Representatives where sources said it was fast tracked for a vote as early as next week. If passed, the bill will correct the Section 502 Single Family Housing Guaranteed Loan Program to make it self-funding. Section 502 assists homebuyers living in rural areas to obtain affordable mortgages guaranteed by the Department of Agriculture (USDA). These loan guarantees have become enormously popular during the financial crisis and consumer demand has tripled the annual number of loans that are typically (READ THE FULL POST)

 More from MND:

If you have trouble viewing , you can read the full post at http://www.mortgagenewsdaily.com/04232010_rural_loan_guarantees.asp

April 27

More Money for the USDA Loans
Posted on April 27th, 2010 at 7:37 PM by socar

USDA is on the fast track to receiving Congressional approval for more funds.  I’m shocked to say this but Congress appears to be working quickly to avoid a lapse of funds this year.  As it stands right now, the House FSC unanimously passed the bill and it’s cleared to be considered by the full House of Representatives early next week.  The way this is progressing, I would recommend to buyers to keep on applying for USDA loans.  They are not out of money yet and it appears Congress may not let them run out of money.  I’ve listed a link to the press release below and attached a copy of the bill. http://www.house.gov/apps/list/press/financialsvcs_dem/pressKanjo_04222010.shtml   

Here are a few changes to the USDA program that are inside this bill. 

Funding fee increased from 2% to 3.5%

  • Currently there is no monthly PMI, but the new bill would authorize 0.50% PMI per year

April 27

Posted on April 27th, 2010 at 7:34 PM by socar

Another Down Payment Assistance Program is coming back online April 19th and Monarch Bank is one of the Community Banks that is permitted to participate in the program. 

•  $1,000,000 available to Monarch Bank for down payment and closing cost assistance

•  5 to 1 matching funds up to $7500. 

•  Example:  Buyer puts in $1500, DPA matches $7500, $9000 total available for down payment and closing cost assistance.

•  Buyer must have $500 minimum in the transaction

•   Income limit (80% of median income)

•  No geographical boundaries

 Money went fast last year so please contact me early.  Please call for more information. 

I am available this weekend for mortgage questions or scenarios for you and your clients,

 704.607-1497 mobile. 

Ritchie Love

7900 Matthews Mint Hill Rd, Ste 115

Charlotte, NC  28227

704.573.4288 x 102

704.545.5930 Fax

rlove@monarchmtg.com  www.monarchmtg.com/rlove

April 27

Hot New Mobile Technology!! MOBILE AGENT 704.269.4121
Posted on April 27th, 2010 at 5:26 PM by socar

Just Released!! HOT NEW Mobile Technology for our area. It so easy and IT FREE. Just Dail the MOBILE AGENT Phone Number and you can enter the House Number(Address #) of any home Listed for sale or enter the MLS Number. You will then have all the Info on the property Right From Your Phone. It’s that simple…Give It  A Try…

MOBILE AGENT  #  704.269.4121

*ANY Home *ANY Phone* ANY Time*

mobile_agent

February 16

We Are Selling Homes!! Call Us if you need you home SOLD
Posted on February 16th, 2010 at 11:06 AM by socar

We have seen a huge increase in the market for Stanly County. Last month we sold 9 homes and this month we are working on 8 that are due to close. March is already shaping up to be the same. I have taken 12 listings and we have already sold a few of those and are showing buyer clients everyday. This is the best time to buy and also sell. The price points have dropped but property is moving and we are moving properties. call us if you are thinking of buying or selling and let us help you make your move with Southern Carolina Realty Inc. We are her for YOU!!

January 13

The Market is coming back!!
Posted on January 13th, 2010 at 6:30 PM by socar

Get ready Stanly County, Our Real Estate Market is coming back. Just this week we have been busy selling and listing all price points. What a great sign. We are Closing 8 properties this month and this is a good thing!! Happy New Year and lets all work together to get our market back in 2010!!

Call us if you have property to sell or if youare looking to buy in 2010!!

Angela Abbatiello

June 26

Why Is My House Not Selling?
Posted on June 26th, 2009 at 8:15 AM by socar


Why is my house not selling?
I found this really great article and I wanted to post it on my Blog….
Information provided by :
Davis Farrell on: Tuesday, May 26, 2009, 12:40:43 AM davisfarrell

If you’ve been watching the news at all in the past year, you know that in most areas, the real estate market isn’t in great shape. To say that it’s a buyer’s market right now is like saying the Pacific Ocean has some water in it.
But what, exactly, is going on, and what does it mean to you & your house? I’m going to demystify this for the average home seller, so you know what you’re up against. Here’s a hint… it’s mostly about the banks.
We all know that getting a mortgage is very difficult these days, and what this means is that the only people who can buy right now are folks that banks consider to be virtually zero risk. On its face, this isn’t a terrible thing, considering how crazy things got a few years ago. But it means a whole lot of buyers have been eliminated. Let’s consider:
1) Real estate investors, or anyone who owns rental property.At first, you might be thinking, “this doesn’t apply to me — my house isn’t in an area with a lot of rentals.” But realize that if investors can’t buy, that means that a lot of the “deals” out there aren’t being snapped up, and regular buyers are going for them (i.e. foreclosures, short sales, etc). That leaves many conventional sellers on the outs, waiting for the “deals” to go away. With no banks lending to investors, there’s nobody to buy them.
On top of that, regular people who happen to own a rental property or two are out in the cold. Why? Because these days, banks aren’t “counting” rental income towards the bottom line, and so if there’s a mortgage on any of the rental properties, the banks are counting it against the person’s debt/income ratio without counting the income! That makes it difficult (or impossible) for those buyers to get a mortgage, even if they have good credit/income/assets.
2) “Move up” buyersBuyers who already own a home can no longer get the type of “bridge” financing they used to be able to get, and further, if they decide to lease their current house so they can buy another, see above … the banks won’t count the rental income! That leaves them stuck.
So if you own a house in the “move-up” market (typically $300-500k), this is killing you right now. Potential buyers are hamstrung because they themselves have a house they can’t sell.
So, who’s left? Basically the only person who can get financing these days is a conventional buyer who has no existing mortgage. This means they either own their current home outright, or are renting. By and large, this means first-time home buyers.
First-time home buyers are normally timid, but even doubly so these days. Even though in many areas, this is the best buyer’s market we’ve seen in a long time, first-timers are worried about potentially losing their job, or buying before the market hits bottom. So many are sitting on the sidelines, or out looking, but being extremely picky.
If you’re selling right now, you might have noticed that buyers are nitpicking virtually everything. Here is why. Buyers have so many homes to choose from (partially because there’s no competition from investors right now) so they figure they can wait until they find the Taj Majal for $99k.
If you’ve read this far, you’re probably pretty depressed. It’s indeed very ugly out there right now, and unless you have a flawless property at a great price, it’s challenging to sell in this climate. But don’t despair… things will get better, and possibly sooner than later.
Banks have to start lending eventually. Right now, banks are making all their money on refinances… one after another. Demand is high and risk is low. But eventually rates will rise or demand will slow (or both). And then they are in a pickle. And somewhere, some smart banker will realize that there is massive investor demand and slowly the spigot will open for responsible, creditworthy investors.
When this happens, competition will become fierce for the “deals,” and conventional buyers will have fewer homes to choose from. At that point, more of the “first-time” market will start to turn, and eventually the “move-up” market. And once other banks start seeing their competition making money on responsible investor loans, it’ll snowball.
So in a sense, this is a cautionary tale for buyers … don’t wait too long. And if you’re a seller with a good house at a reasonable price, you will sell.

Angela Abbatiello
Owner / Broker / Realtor
Southern Carolina Realty Inc.
704-888-6699
www.southerncarolinarealty.com
www.mylocust.com
www.mylocusthomes.com
www.commercialbuildernetwork.com

January 27

BANK FORECLOSURES
Posted on January 27th, 2009 at 7:27 PM by socar
LOOK FOR THE MARKET TO CHANGE– MORE FORECLOSURES COMING

Congress to break up REO “Listing Agent” Monopoly
From national correspondent: Ms.Catarina Huntington
That’s the headline Realtors can only hope for at this point in time. A more proportioned assignment of REO (bank foreclosures) listings would dramatically enhance the financial landscape for the struggling Realtor industry. However, as of January 2009, less than 1/3 of 1% of Realtors continue to maintain a stranglehold on REO markets, while the rest of the industry sinks in despair. For now, the “80-20 Rule” (20% of Realtors accounting for 80% of business) is a distant memory. “It seems like the new rule should be changed to the “80-1 Rule”, where less than 1% of the agents are closing 80% of the deals” says Julie Tveit a real estate Broker for LaRue Realty in Minnesota.
An investigation into the facts surrounding the REO listing market is interesting….
2 million foreclosures up for grabs
Nationwide the “private club” (as they’re called) of REO Agents currently monopolizes about 1.7 million active REO listings. In 2009, 2.0 million more properties will foreclose and according to a recent report by “Credit Suisse” the US market will be averaging 2 + million foreclosures over each of the next 4 years.
Estimates are that 150,000 Realtors nationwide, provided the pertinent education, would be very qualified listing agents of REO properties. There are no specific prerequisites to become an REO Agent. Qualified Realtors simply need to possess a willingness to enter the REO arena and be thoroughly educated on the unique aspects of listing bank owned foreclosures.
Hence, there are 150,000 active full time Realtors in the United States with 2 million foreclosure listings “up for grabs”. If divided equally each Realtor would close 13 REO listings per year for the next 4 years.
REO Agents Dominate Market
Instead roughly 5800 Realtors Nationwide sold 1.6 million REO homes in 2008. That translates into an average of 22 closed listings per REO Agent per month. That certainly doesn’t sound like a “spread the wealth” philosophy does it? My research indicates that the REO industry’s current model provides for a single beneficiary: REO Listing Agents,

and unfortunately this model comes at the expense of the lenders themselves, frustrated buyers and the tens of thousands of agents left out to dry.
The vast majority of REO Agents are overwhelmed with inventory and under staffed. Realtors “in the field” showing REO properties tell me that they understand this all to well. “I am to the point now, in working with buyers, that I have to pre-screen listing agents that have REO listings. If I know that the listing agent is going to be difficult to work with, on any level, then I pass that information along to my buyers. There are too many properties on the market to waste time with difficult transactions” say Ms. Tviet.
The systemic problem within the REO Agent “underground” appears to have a multitude of negative consequences which result in longer market times and lower sale prices, say numerous industry sources. Ms. Tviet, “It’s just common sense, if your marketing is poor, your correspondence with other Realtors is marginal and you have a reputation as difficult to work with, it inevitably effects the lenders bottom line”.
Private enterprise is fixed on changing the dynamic
In a brief telephone interview I conducted with Ms. Simona Miu a spokeswoman for the ForeclosureU.com a private educational institute established in 2005, Miu stated:
“ForeclosureU is committed to changing all of that in 2009. Stating that ForeclosureU.com is going “at the establishment head on”. Miu says that ForeclosureU is launching a national advertising campaign in various targeted media outlets promoting the importance of their “Certified Foreclosure Specialist Designation and Training for Realtors”.….“In 2009 our sole focus will be dedicated to educating and arming 25000 Realtors to earn their fair share and rights to the REO pie……Graduates of the “CFS” Training will receive everything required to meet their career goals and seize these emerging markets”.
Miu went on to provide some of the ways ForeclosureU intends on accomplishing that challenging feat:

“CFS” graduates are provided unprecedented (a) training on listing REO property but it doesn’t stop there (b) “CFS” graduates are entered into the National Database of “CFS” agents (c) which will be facilitated by an aggressive print/electronic and Internet marketing campaign (promoting its “CFS” agents) targeting the entire default (REO) industry (d) In addition a proprietary list of “REO asset managers” and their direct contact information will be made available to all “CFS” graduates.”
Miu stated that ForeclosureU is filling the gapping holes left by local, state and national educational platforms that have failed Realtors miserably in providing current educational requirements.
Conclusion
If ForeclosureU and companies like them truly step up and provide Realtors the tools they need there is little doubt that, at least in this columnists opinion, Realtors can surely change the course of their careers and maybe even the course of the foreclosure debacle as a whole.
On a personal note, I am pulling for ForeclosureU and any innovative new business that has the capacity to help this beleaguered economy. Small business and product/service innovation is the only viable macro solution to this countries economic downward spiral. Realtors are a part of that solution. Getting our political leaders to understand this is a whole other conundrum.

Keep a check on all the market is doing in your area. Please contact us with any questions you might have.

SOUTHERN CAROLINA REALTY INC. www.southerncarolinarealty.com

704-888-6699

Statistical data and additional content provided thanks to: Real Estate Trac, City Data Co, U.S. Association of Real Estate Agents, Foreclosure University, LaRue Realty, Zillow Blog