This informative article was Written by: Steve Cook on Wed, January 25, 2012 Beyond Today’s News, Crisis Programs, Housing Crisis

In his State of the Union speech last night, President Obama announced he will push for legislation that will significantly expand the newly revised HARP program that allows underwater homeowners who are to refinance at today’s historically low rates.

Obama’s expansion would allow all borrowers, not just those whose loans are held by Fannie Mae and Freddie Mac to refinance. Fannie and Freddie hold about 60 percent of the nation’s mortgages. The New York Times quotes a “senior government official” who estimated that the program could benefit two million to three million homeowners who have loans that are not guaranteed by the government, and that the program’s cost would not exceed $10 billion. When announced last September, the revised Home Affordable Refinance Program (HARP 2.0) was projected to help one million homeowners.

The President’s announcement comes after the HARP 2.0 program has been in effect only seven weeks. Initial reports suggested that key lenders-including certain megabanks-have been slow to implement changes to service borrowers applying for the program and they are also facing capacity constraints due to the ongoing mini-refinancing boom. Final rules were not announced until Novembers and reportedly many consumers and servicers were confused about whether they qualified and how to apply.

Concerns have been growing that the program would fall short of its million loan goal. The program is due to expire at the end of this year. Federal Reserve chairman Bernanke has suggested that the program be changed to mandate lenders to write down principal as well as interest . Others are recommending additional changes to reduce refinancing fees and “put-back” risk on the loans. Meanwhile, California Democrats in Congress are calling on President Obama to replace Federal Housing Finance Agency acting director Edward DeMarco, who has opposed writing down the principal of mortgages held by Fannie and Freddie.

However, recent reports suggest that interest is picking up. One source reports that 70 percent of the new loan applications at a major bank are HARP 2.0 loans. The HARP 1.0 program allowed borrowers to refinance up to 125% of the current value of the home but the HARP 2.0 will do away with that 125 percent limit.

“I’m sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage, by refinancing at historically low interest rates. No more red tape,” said President Obama last night. The program would be paid for by a new fee on banks, but details have yet to be announced and until they are, the outlook in Congress is difficult to forecast.

My spin on this is It sounds like a very sound idea but there is no guarantee Congress will adopt a plan like this in an election year. And the big Banks have to agree to this. Hmmm, not very likely. So while it makes great press, the possibility of it becoming a reality might be less that good.

This story was written by ANDREW SCOGGIN and appeared on housingwire.com as a Featured Article on Friday, January 13th, 2012. It is another positive perspective of the Real Estate Market for 2012. It does look like it could be a Strong Year.

The housing sector will likely take incremental steps forward in 2012, though total originations will fall on fewer refinances, according to economists at Fannie Mae.

The second half of the year should outpace the first six months in terms of growth, though fiscal policy and political uncertainty in Washington will likely drive consumer and business activity, the mortgage giant said.

Chief Economist Doug Duncan said positive consumer activity and challenges in housing and the global economy will equate to moderate growth for the year.

“We’re entering 2012 with decent momentum, especially on the employment side, which is fostering positive household and consumer behavior,” Duncan said in a release. “Unfortunately, we expect this momentum to slow as we move through the first half of the year.”

The report released Friday forecast total home sales to increase 3.5% to about 4.74 million in 2012 from 2011 with another 5% gain in 2013 to nearly 5 million. New home sales could jump 10.4% for 2012.

The Federal Housing Finance Agency home sales price index, excluding refinances, could dip 1.1% for 2012 from a year before, according to the forecast. Economists predicted the 2011 index would finish 4.6% lower than 2010.

Mortgage originations as dollar volume could see a decline as well in 2012, largely on a steep drop in refinances. The Fannie report said total originations will fall to $1.01 trillion in 2012 from a predicted final 2011 tally of $1.36 trillion. Economists expected refinancing to plummet to $540 billion from $894 billion.

Purchase mortgages, however, will rise to $471 billion in 2012 from a estimated 2011 total of $464, according to the report.

Total single-family outstanding mortgage debt will likely drop 1.3% to $10.14 trillion in 2012.

For the U.S. economy as a whole, Fannie researchers predicted real GDP would increase 3.3% in the fourth quarter to finish the year at 1.7% growth. Economists forecast 2.3% GDP growth for 2012 and 2013.

The following article was found on the Freddiemac web page and tells the story of how Home Loan Mortgage rates are at an All Time Low. What a wonderful time to buy a home.

MCLEAN, Va., Jan. 5, 2012 /PRNewswire/ — Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates starting the year at or near their all-time lows. The 30-year fixed averaged 3.91 percent matching its all-time record low amid recent data showing signs of improvement in the housing market and manufacturing industry. This marks the fifth consecutive week the 30-year fixed has averaged below 4.00 percent.

News Facts

30-year fixed-rate mortgage (FRM) averaged 3.91 percent with an average 0.8 point for the week ending January 5, 2012, down from last week when it averaged 3.95 percent. Last year at this time, the 30-year FRM averaged 4.77 percent.

15-year FRM this week averaged 3.23 percent with an average 0.8 point, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 4.13 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.86 percent this week, with an average 0.7 point, down from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 3.75 percent.

1-year Treasury-indexed ARM averaged 2.80 percent this week with an average 0.6 point, up from last week when it averaged 2.78 percent. At this time last year, the 1-year ARM averaged 3.24 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

“Fixed mortgage rates started the year a little lower this week just as recent data reports indicate the housing market and manufacturing industry are showing signs of improvement. Pending existing home sales in November jumped 7.3 percent, nearly five times greater than the market consensus forecast, to its strongest pace since April 2010. In addition, construction spending rose 1.2 percent in November, supported by the residential sector which exhibited its fourth consecutive monthly increase. Similarly, manufacturing expanded in December at the fastest pace in six months.”

Get the latest information from Freddie Mac’s Office of the Chief Economist on Twitter:@FreddieMac

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.

SOURCE Freddie Mac

This great article was published on Realtor.org and contains some great information about the Recovery of the Real Estate Market. In Charleston, we are slightly ahead of the National Curve. Locally we are seeing Strong buyer presence and great mortgage loan rates for qualified buyers. We are also seeing a very improved turn around time for Banks responding to Short Sale contracts. It is a Fantastic Time to be a buyer. And there are remedies available now for the first time for any home seller that is upside down on their mortgage. All they need to do is ask a qualified Realtor for help.

Washington, DC, January 05, 2012

Stabilizing and restoring the health of the housing market is critical to a broader economic recovery, according to a white paper released yesterday by the Federal Reserve Board. Many of the issues and recommendations outlined in the paper support key principles established by the National Association of Realtors® to help revitalize the housing industry and economy.

The white paper, The U.S. Housing Market: Current Conditions and Policy Considerations, calls for increased lending to creditworthy home buyers and more loan modifications, mortgage refinancings, and short sales to reduce the rising inventory of foreclosed homes and help stabilize and revitalize the housing industry; an approach long recommended by NAR to help spur the housing market recovery.

“As the nation’s leading advocate for homeownership and housing issues, NAR knows that a strong housing market recovery is key to the nation’s future economic strength,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “Improving access to affordable mortgage financing for qualified home buyers and investors and aggressively pursuing more loan modifications and short sales is necessary to help reenergize the housing market and spur an economic recovery.”

The pendulum on mortgage credit has swung too far following the housing downturn. According to the 2011 NAR Member Profile, 34 percent of Realtors® reported that the most important factor in limiting their clients’ ability to buy a home was difficulty in obtaining a mortgage. While NAR supports responsible and strong underwriting standards, unnecessarily tight credit restrictions are keeping many qualified home buyers from purchasing homes, which could help absorb excess inventories of homes in foreclosure.

“Creditworthy consumers continue to have difficulties securing affordable financing despite their proven ability to afford the monthly payments,” said Veissi. “Expanding financing opportunities to qualified buyers could help reduce distressed property inventories, minimize the negative impact those homes have on local markets and restore vibrant housing markets and neighborhoods.”

To prevent further foreclosure inventory increases, NAR also urges lenders to take more aggressive steps to modify loans and keep struggling families in their homes. Significantly reducing monthly mortgage payments will help more families remain current on their mortgage and allow them to remain in their home, reducing the impact of foreclosures on local home prices.

For homeowners who are unable to meet their mortgage obligations, NAR has urged lenders and servicers to quickly approve reasonable short sale offers so these people can avoid foreclosure. The short sale process can be time-consuming and inefficient, and many would-be buyers end up walking away from the transaction.

“Loan modifications and short sales help stabilize home values and neighborhoods, and limit the losses incurred by lenders, the federal government and taxpayers, which is good for everyone,” said Veissi.

The Fed paper also addresses converting foreclosed properties into affordable rentals. NAR supports reducing the barriers that prevent owner-occupants and small investors from accessing financing, such as opening the Federal Housing Administration 203(k) program to investors. NAR also believes these efforts are best made by local entities that understand the challenges of the local community and will respond to renters’ needs.

In addition, NAR is concerned about proposed bulk sales of distressed properties and believes that every effort should be made increase liquidity for consumers and small investors since bulk sales will likely result in greater losses for taxpayers and have a more negative impact on housing values.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

RE/MAX Agents See a Recovering Housing Market in the New Year.

Denver, CO – The U.S. housing market will continue a slow recovery in 2012,led by stabilizing home prices and increasing sales. Those are among the key findings of a year-end survey of one thousand RE/MAX real estate agents who say housing’s vital signs are gaining strength.

The quarterly RE/MAX Market Insights survey provides analysis of the national housing market from the perspective of active RE/MAX agents around the country.

Improving Numbers

The majority of RE/MAX agents surveyed say housing prices will stay the
same, or increase in 2012. Projections are the strongest for the Southern U.S. where 49.6% say prices will stabilize and 26.7% anticipate an increase. Agents in the Northeast see the biggest challenges, with 47.5% concluding that prices will decrease, 44.6% expecting prices to remain at 2011 levels, and only 7.9% anticipating an increase.

Nationwide, RE/MAX agents reported a 10.7% increase in their home sales in
2011, and project an increase of 29.3% in 2012. Asked to measure the strength of home sales, 62.1% of agents predict good to very good sales in 2012. Survey results are also available in an online infographic.
“A sense that home prices and sales are improving indicates that the housing market is positioned for a gradual recovery in 2012,” said RE/MAX Chief Executive Officer Margaret Kelly. “These agents have the best perspective on industry trends since they average more home sales than agents with any other national firm.”

Obstacles Remain

The major obstacles to the housing recovery cited by agents include sagging consumer confidence, followed by lack of economic growth, unemployment, concerns of more price declines and bank procedures.
Agents report that 52% of closings were significantly delayed in 2011, with bank procedures cited as the cause in 23% of the cases, followed by financing and appraisals. For sales that were canceled, bank procedures again was the leading reason, while financing, sales price and appraisals also were factors. The majority of agents say such delays and cancellations were higher in 2011,than in 2010.

Buyers and Sellers More Realistic

Asked to grade buyers and sellers on how realistic they are about home prices, RE/MAX agents gave both groups a B-. That compares with a C+ for buyers and a C- for sellers at the start of 2011. Common misconceptions reported by RE/MAX agents are sellers thinking their home is still worth as much as it was four or five years ago before the housing slump, and buyers believing that extremely low offers will eventually be accepted.

“It’s certainly a positive trend that buyer and seller perceptions are changing to adjust to current conditions,” Kelly said. “Those who are misinformed and try to time the market, rather than address immediate housing needs, can lose valuable opportunities.”

Other findings of the RE/MAX Market Insights survey, conducted Dec. 7-19
among randomly selected agents, include:

• Market bottoming out: Thirty-nine percent said their markets have already hit bottom; 34% say prices will stop dropping in 2012; 27% says prices will reach their lowest point in 2013 or beyond.

• What government can do to help housing market recover: 1) Streamline shortsale process; 2) Focus on job creation; 3) Increase refinancing help for underwater home owners; 4) Standardize lending practices; 5) Release
foreclosed properties more aggressively.

• Five most common buyer incentives that agents are seeing: 1) Reduce sales price; 2) Pay closing costs; 3) Make repairs; 4) Buy home warranty; 5) Pay origination fees or points.

• Distressed sales: RE/MAX agents project that 20.3% of their home sales in 2012 will consist of foreclosures and short sales. That compares with 17.1% in 2011 and 15% in 2010.

RE/MAX agents have sold more real estate in the U.S. than any other company since 1998. They averaged 13.1 sales per agent in 2010. To find an agent or view homes for sale, go to www.remax.com.

Online survey of 1,004 U.S. RE/MAX agents specializing in residential real estate, conducted in December 2011. ©2012 RE/MAX, LLC. Each office independently owned and operated

Over the years, I have met and become friends with a number of Real Estate Investors and Developers. They all have different objectives but a common goal; to make a reasonable profit.

One investor likes to buy homes that are in need of a very large renovation. A job that is beyond the scope of most home buyers seems to fit his goals best. He does an upscale renovation job and brings the home back to or exceeds the level of the neighborhood. Then we market that property. It is most rewarding to sell a property like his. It is a win-win for everyone. The Real Estate market sees one more home that was in bad shape brought back and sold at a reasonable price. This, we feel, helps to stabilize our market.

Another investor really likes to buy properties in neighborhoods that are undersized and dated. He then adds square footage and updates the properties to a level that each neighborhood can support. So now we have great homes being created using vision and capital to produce a new and desirable home in a neighborhood where demand is high for this type of product and supply is low. Again this is a rewarding sale from my perspective and one that keeps me looking for the right kind of product.

A third investor looks for lower priced homes in stable neighborhoods that need a medium level scope of work. She loves to make things desirable again. And selling her end product is always a treat.

A forth investor really wants to find duplexes in need of work. Again, finding the right product in the right neighborhood that produces the right cash flow is a challenge but we have worked well as a team and that is a good thing. His objective is to find properties in need of renovation that can cash flow to make a profit after the renovation. Then he is faced with a decision. Should I sell or keep this one? Such a problem.

Keeping these investors/developers in product is what I do best. The search for REO properties and Foreclosure properties and then the acquisition of those properties is a rush. Bringing them back to the market is also a great feeling.

So it really is not the same old Real Estate market anymore. Providing a service to my investors and helping bring stability to our local market is a very good thing.

If you are in Investor looking for a Realtor to assist you in finding the right property, let’s talk about your objectives.

If you are a Realtor with some listing inventory that is in need of renovation, let’s talk about a match for your listings with my investors.