Foreclosure Help Is Available

The Federal Reserve Board has reminded lenders that they must educate owners and offer counseling before a foreclosure takes place. If you are in a situation do try the counseling. Keep in mind lenders lend money they dont manage property or sell property...If all else fails talk to your lender about a short sale and see if that can help you find a reasonable way out. Your Property Path has a good follow article on this.

Foreclosure Help Is Available
GET HELP

There is a lot more assistance out there than there was even a few years ago. A credit counselor may be a good place to start. They will make those negotiation calls to the credit card companies and maybe even to your mortgagee. They are trained and know what to say and can remain emotionally detached during what can be some ugly conversations. There are some bad apples in the counseling business, however. Use one that is approved by the U.S. Department of Housing and Urban Development (www.hud.gov/counseling for a state by state list) or by the NeighborWorks® organization (www.nw.org.)

In some larger cities Freddie Mac (and maybe Fannie Mae) has teamed up with local housing groups and/or legal assistance organizations to form foreclosure avoidance projects. Where these are available community based housing organizations will be aware of them.

There are now a few funds out there to help people in precarious situations with their mortgages. NeighborWorks or local community housing organizations may be able to plug you in.

If you think your problems are the result of predatory lending practices or a fraudulent loan get in touch with the state consumer protection agency (call your state attorney general or secretary of state.)

Mortgage News Daily

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When the housing rebound comes
How will you know?

Because housing markets are intensely local, it won't do much good to check national figures. Instead, stay alert to leading indicators of recovery in your local market, such as: Inventory is decliningIn markets with fewer than 6.5 months of inventory, homes tend to be appreciating faster than inflation, says Mark Dotzour, chief economist at the Real Estate Center at Texas A&M; above 6.5, prices are lagging inflation.
1. Houses are selling faster than they used to
Generally, if the average house is selling in less than a month, it's a seller's market. By 90 days it may be a buyer's ball game.
2. Realtors are feeling better
3. Sellers are acting less desperate
All this should give you a hint, says Sacramento broker Elizabeth Weintraub. "If you're seeing no decrease in FOR SALE signs, balloons and banners and OPEN HOUSE signs, and the SOLD signs aren't popping up right away, that's pretty much telling you it's still a buyer's market."

CNN

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Metropolitan Area Existing-Home Prices and
State Existing-Home Sales

NAR releases statistics on state-by-state existing-home sales and metropolitan area median home prices each quarter. The state existing-home sales report includes single-family houses, condos and co-ops. The price report reflects sales prices of existing single-family homes by metropolitan statistical area (MSA)

National Association of Realtors

Apartment Markets Remain Strong According to NMHC Quarterly

“The apartment markets continue to enjoy largely favorable conditions,” noted NMHC Chief Economist Mark Obrinsky. “Although both owners and managers are well aware of the ‘shadow rental market’—condos and single-family homes originally intended for sale but being rented out instead—any supply spillover from the for-sale market has so far not exceeded the growing demand for apartment residences.”

One-third of respondents said that occupancy rates and/or rents rose during the first quarter of the year. As a result, the survey’s Market Tightness Index edged up slightly to 56. (For all four of the survey indexes, a reading above 50 indicates that, on balance, conditions are improving; a reading below 50 indicates that conditions are worsening; and a reading of 50 indicates that conditions are unchanged.) In most markets, conditions were largely unchanged according to 43 percent of respondents.

The long-term demographics favoring rental housing—namely the coming of age of the echo boomers and strong immigration level—make the sector a favorite among equity investors. Although the Equity Financing Index fell slightly to 53 from 56 in the last quarter, it was still the 15th straight over-50 reading. Equity capital for investment in apartments remains widely available as evidenced by the 71 percent of respondents who considered conditions unchanged compared to three months earlier.

National Multi Housing Council

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Mortgage Rates Reverse Downward Trend
Short-Term Rates Remain Mixed

McLean, VA Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.73 percent with an average 0.4 point for the week ending July 12, 2007, up from last week when it averaged 6.63 percent. Last year at this time, the 30-year FRM averaged 6.74 percent.

The 15-year FRM this week averaged 6.39 percent with an average 0.4 point, up from last week when it averaged 6.30 percent. A year ago, the 15-year FRM averaged 6.37 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.35 percent this week, with an average 0.5 point, up from last week when it averaged 6.29 percent. A year ago, the 5-year ARM averaged 6.33 percent.

One-year Treasury-indexed ARMs averaged 5.71 percent this week with an average 0.5 point, unchanged from last week. At this time last year, the 1-year ARM averaged 5.75 percent.

Freddie Mac

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Home Prices Expected to Recover in 2008 As Inventories Decline

Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, according to the latest forecast by the National Association of Realtors®.

Lawrence Yun, NAR senior economist, said a good buyers’ market has evolved. “Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,” he said. “But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state.”

Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last year. New-home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year.
Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800. The median new-home price should rise 2.2 percent to $245,400 next year following a 2.6 percent drop in 2007 to $240,100.

“Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,”

National Association of Realtors

East Coast, West Coast Markets Shrug off the Housing Slowdown

East Coast, West Coast Markets Shrug off the Housing Slowdown
By Lauren Baier Kim

New York Sales

New York's a big city, and it's prices just keep getting bigger: for the three months ending June 30, the median selling price for a Manhattan condo or co-op apartment was between $840,000 and $895,000, with the average price reaching about $1.3 million, according to estimates provided by three New York brokers, according to CNNMoney.com. Meanwhile, housing inventory saw a year-over-year decrease of 31.5%, and apartments are staying on the market 117 days on average, down about 10% from a year ago, CNNMoney.com says.

Seattle sales slow

It seems that even Seattle is showing signs of the housing slowdown. The metro, although tied with Salt Lake City as the strongest housing market in the U.S ., saw pending home sales in King County drop 9.4% year-over-year in June, while the number of homes for sale rose 53% year-over-year, according to a Seattle Times article. Although boosted by a strong job market, Seattle's housing market is being hurt by its high prices and lack of affordability, the Times says. But the outlook isn't all gloom and doom: "I'd still characterize the Seattle market as being healthy -- one of the few in the country," the paper quotes Lawrence Yun, senior economist for the National Association of Realtors, as saying.

Rising foreclosures in Atlanta

Atlanta, which has one of the highest rates of foreclosure in the U.S., may be a signal of what's to come for the U.S. housing market, says a New York Times article. The city's surge in foreclosures -- about 2.7% of the metro area's homes were in foreclosure at the end of 2006, versus about 1% of U.S. housing units -- has come despite a healthy local economy, the Times says. Attributed to the increase are "aggressive" low-interest-rate mortgages -- about half of them adjustable-rate mortgages -- taken out by area home buyers when home prices were rising, and a Georgia law that speeds up the foreclosure process, the Times says. Experts fear that such a trend will become apparent in the rest of U.S., as housing values fall and interest rates on loans reset. "Everybody thought if the home prices kept going up, the lenders will keep refinancing you," the newspaper quotes an economics professor from Georgia State University as saying.

Wall Street Journal

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Apartment Markets Remain Strong According to NMHC Quarterly Survey

The apartment markets continue to enjoy largely favorable conditions,” noted NMHC Chief Economist Mark Obrinsky. “Although both owners and managers are well aware of the ‘shadow rental market’—condos and single-family homes originally intended for sale but being rented out instead—any supply spillover from the for-sale market has so far not exceeded the growing demand for apartment residences.”
The long-term demographics favoring rental housing—namely the coming of age of the echo boomers and strong immigration level—make the sector a favorite among equity investors. Although the Equity Financing Index fell slightly to 53 from 56 in the last quarter, it was still the 15th straight over-50 reading. Equity capital for investment in apartments remains widely available as evidenced by the 71 percent of respondents who considered conditions unchanged compared to three months earlier.

National Multi Housing Council

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Mortgage Rates Reverse Downward Trend This Week

McLean, VA Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.73 percent with an average 0.4 point for the week ending July 12, 2007, up from last week when it averaged 6.63 percent. Last year at this time, the 30-year FRM averaged 6.74 percent.

The 15-year FRM this week averaged 6.39 percent with an average 0.4 point, up from last week when it averaged 6.30 percent. A year ago, the 15-year FRM averaged 6.37 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.35 percent this week, with an average 0.5 point, up from last week when it averaged 6.29 percent. A year ago, the 5-year ARM averaged 6.33 percent.

One-year Treasury-indexed ARMs averaged 5.71 percent this week with an average 0.5 point, unchanged from last week. At this time last year, the 1-year ARM averaged 5.75 percent.

Freddie Mac

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Why a Housing Recovery is Far Off

The key problem now is not the level of nominal mortgage rates, which are not particularly high by the standards of the past decade. Instead, buyers are backing off because the real mortgage rate has rocketed and continues to rise. At the peak of the boom, people essentially were being paid to buy a home. The average 30-year fixed mortgage rate in 2005 was a tax-deductible 5.9%. The Office of Federal Housing Enterprise Oversight says that home prices rose 10.7% that year.

As long as buyers expected prices to keep rising, the implied real mortgage rate -- home-price increase minus mortgage-interest rate -- was minus 4.8%. This was an enormous incentive to borrow heavily to buy real estate. Result: a bubble.

But recently, the average 30-year mortgage rate was 6.5%, so with home prices up just 3%, real mortgage rates are now 3.5%. And with most potential buyers well aware of the huge excess supply of homes, there's no reason to expect prices to rebound soon. A reasonable person might expect them to fall further, boosting the real mortgage rate further.

Over the past 30 years, there's been a very close association between our measure of real mortgage rates and the pace of home sales, adjusted for the U.S. population's expansion.

Barrons

Why a Housing Recovery is Far Off

Why a Housing Recovery is Far Off

The key problem now is not the level of nominal mortgage rates, which are not particularly high by the standards of the past decade. Instead, buyers are backing off because the real mortgage rate has rocketed and continues to rise. At the peak of the boom, people essentially were being paid to buy a home. The average 30-year fixed mortgage rate in 2005 was a tax-deductible 5.9%. The Office of Federal Housing Enterprise Oversight says that home prices rose 10.7% that year.

As long as buyers expected prices to keep rising, the implied real mortgage rate -- home-price increase minus mortgage-interest rate -- was minus 4.8%. This was an enormous incentive to borrow heavily to buy real estate. Result: a bubble.

But recently, the average 30-year mortgage rate was 6.5%, so with home prices up just 3%, real mortgage rates are now 3.5%. And with most potential buyers well aware of the huge excess supply of homes, there's no reason to expect prices to rebound soon. A reasonable person might expect them to fall further, boosting the real mortgage rate further.

Over the past 30 years, there's been a very close association between our measure of real mortgage rates and the pace of home sales, adjusted for the U.S. population's expansion.

Barrons

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If You Must Sell, Name Your Price Carefully
By Nancy Trejos

Fowler said sellers should consider giving the market another two years. "If you bought a house to live in, you're in pretty good shape," she said.

But if you do have to sell, be aggressive and hit the spring market as soon as you can, agents said.

"Put it on the market sooner rather than later and make sure it's priced correctly, and make sure it shows to its absolute best advantage," said Joseph Himali, a real estate agent at Best Address in Georgetown.

Agents said making sure a property looks its best is crucial. Keep every room clean, especially the kitchen and bathroom. Get rid of clutter and remove excess furniture. You might want to consider adding more lighting or plants. More important, make sure nothing needs repair. Buyers are now asking for inspections, which was not the case two years ago.

"Property in beaten-up condition or poor condition, which is not priced to reflect the poor condition it's in, will sit on the market," Worthington said. And be prepared to offer incentives, such as picking up the buyer's closing costs or the condo fees for a while.

Washington Post

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Where Housing Prices AreThe Most Likely to Fall
By Lauren Baier Kim

Here's a look at what's new in real-estate markets across the U.S. from around the Web. (Some links may require registration or subscriptions.)

Most overvalued U.S. markets

As the housing slowdown continues, which state has the greatest threat of experiencing home-price declines? California, according to a new report by National City Corp and Global Insight, a CNNMoney.com article says. The survey, which determines what housing prices should be using factors such as selling prices, population density, interest rates and income levels, ranks Bend, Ore., as having the most "overvalued" (i.e., overpriced) housing market. Overvalued markets -- where housing prices are most likely to fall -- tend to be in places that saw big price run-ups during the boom, including California, Florida, New York and Massachusetts, the article says. The survey, which looked at fourth quarter 2006 data for 317 top metro markets, found that 157 of the cities had seen price drops during that quarter. The report ranks Dallas as the most undervalued city in the U.S.; Texas lays claim to four of the most undervalued. For an interactive map of housing markets by median price and valuation, visit National City's Web site.

Wall Street Journal

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Existing-home sales drop to 4-year low

Sales of existing homes fell for a third straight month in May, dropping to the lowest level in four years as the median sales price declined for a record 10th consecutive month.

In a troubling sign for the future, the inventory of unsold homes shot up to the highest level in 15 years, meaning more downward pressure on prices in the months ahead until the inventory glut is reduced.

Sales fell by 0.3 percent in May to a seasonally adjusted annual rate of 5.99 million units, the National Association of Realtors reported Monday. Sales now stand 10.3 percent below where they were a year ago.

MSNBC

Efforts Made To Help Borrowers Avoid Foreclosure

CSBS Senior Vice President for Regulatory Affairs Michael Stevens said, "Servicers should provide information on when the recast will occur and how

much the monthly payment will adjust. Should the loan go into default, servicers should consider workout arrangements to prevent foreclosures."

Freddie Mac is also touting its foreclosure avoidance activities. The corporation, along with Fannie Mae, the Mortgage Bankers Association, and 20 other

mortgage industry leaders has established NeighborWorks America which is sponsoring a public service advertising campaign on television urging troubled homeowners to face their problems and seek help. Two of the ads can be viewed on the Freddie Mac website.

A Freddie-sponsored survey conducted by Roper Public Affairs and Media found that 74 percent of home mortgage borrowers were very interested in seeking the assistance of housing counselors in avoiding foreclosure yet only 64 percent had been aware of the existence of such counselors. Only 61 percent of borrowers who were already late on mortgage payments were even aware that there was help available to them.

Mortgage Daily News

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Regulators Tighten Rules For Sub prime-Lending
By Damian Paletta

Federal bank, thrift and credit-union regulators issued beefed-up guidelines Friday aimed at curbing weak underwriting standards for "subprime" mortgage loans.

The guidelines require more than 8,000 federally regulated lenders to underwrite loans based on a borrower's ability to make payments on a loan's adjusted rate, not just its low introductory rate. Roughly 75% of the subprime adjustable-rate mortgages offered last year were loans with a low flat or "teaser" rate for the first two or three years and then a higher, floating rate for the life of the 30-year mortgage. The guidelines are very similar to a March proposal, with two significant changes.

First, with limited exceptions, the guidelines expect lenders to collect much more information to prove that borrowers have the capacity to pay. Second, lenders are directed to give borrowers the option to refinance out of an adjustable-rate mortgage at least 60 days before the interest rate jumps to a higher level, without penalty.

Today's Rates
30 yr fixed mtg 6.26% 30 yr fixed jumbo mtg 6.49%
15 yr fixed mtg 5.97% $30K home equity loan 8.12%7/1 ARM 6.07% $30K HELOC 7.19%

"There is no doubt in my mind that anytime you put in more stringent standards you are likely to reduce the supply of credit," Comptroller of the Currency John Dugan said. "We don't do that lightly."

Wall Street Journal Online

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With Many Loan Options, Pick One That Fits Your Needs
By Benjamin Levisohn
New York Daily News via the Washington Post

"The majority of people don't realize that the right interest rate in the wrong product can cost them tens of thousands of dollars over time," said mortgage broker Lynn Rogers.

The 30-year fixed is the granddaddy of mortgages. It's simple: Get a good interest rate, send 360 payments to the bank and the house is yours. But you can get a lower payment with adjustable-rate and interest-only mortgages, at least in the beginning. That can work for you in many circumstances, but be sure you know what you're getting into. When the initial term ends, you could see payments spike unless you refinance, adding another expense. If your house has lost value, you've really got a problem.

But adjustables make sense for borrowers who know they may need to move in, say, five years, or think they can refinance at in a better rate later on.

Washington Post

New Scheme Preys on Desperate Homeowners

New Scheme Preys on Desperate Homeowners

The schemes take various forms and often involve promises to distressed homeowners of cash upfront, free monthly rent and a chance to retain their houses in the long run. But in the process, someone else takes over the deed, borrows as much as possible against the value of the house and pockets the cash. And, almost always, the homeowners still end up losing their homes.

There are no nationwide numbers on this common fraud, known as equity stripping, but it has turned up in almost every state. Seven states have passed laws to try to stop it. Still, with foreclosure rates rising rapidly, it will be a growing problem, consumer advocates say.

New York Times

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Steps to Modify Loans and Avert Foreclosures Draw Controversy
By Lingling Wei, Ruth Simon and James R. Hagerty

Foreclosures are rising fast partly because lenders in recent years rushed to make no-money-down loans to people with weak credit records and didn't always verify their income. At the same time, the decline in housing prices in much of the country makes it hard for borrowers who fall behind to sell their homes for enough money to pay off the loan.

When borrowers can't keep up, lenders typically consider whether it makes sense to offer a loan modification. Such workout deals, known as "mods," often involve lowering the interest rate or stretching out the term. Lenders have used mods for years, but the practice is expected to proliferate as defaults rise.

Wall Street Journal

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Tips From a Foreclosure Investor
By Off The Shelf

There's never been quite so many opportunities for individual investors to buy foreclosures. There are just so many of them. Before, the market was chiefly controlled by good old boy networks, through the banks' brokers.
All kinds of things, inside and out. Look at the doors, windows, roof, concrete -- everything. Properties that are in foreclosure aren't always in great condition. After all, the owners couldn't afford the mortgage payments. They probably couldn't pay for maintenance either. It's important to have a thorough, professional home inspection before buying. But if that's not possible, then you should at least inspect the outside of the property yourself -- all four sides.

Washington Post