Fannie Offers Closing Cost Help for REOs

Daily Real Estate News | April 13, 2011

Fannie Offers Closing Cost Help for REOs 

Fannie Mae is trying to lure more buyers to its foreclosure properties by offering to cover 3.5 percent in closing costs for home owners who close by June 30 on its HomePath properties.

Fannie’s HomePath program provides low down payment financing on REO property sales and has no requirements for mortgage insurance or appraisals.

During the fourth quarter of last year, Fannie offered closing cost assistance and was able to recoup 55 percent of unpaid principal balance on defaulted mortgages through the sales.

Source: “To Move REO, Fannie Offers Deals to Consumers,” National Mortgage News (April 12, 2011)

FSBOs Vanish, Sellers Turn to Real Estate Pros

Daily Real Estate News | February 15, 2011

FSBOs Vanish, Sellers Turn to Real Estate Pros 

For-sale-by-owners are rare nowadays. In fact, the number of FSBOs dropped to record lows over the past year.

Unrepresented sellers make up just 11 percent of the market, down from 13 percent in 2009, according to the 2010 National Association of REALTORS® Profile of Home Buyers and Sellers.

With today’s more complex transactions--such as with short sales and foreclosures and frequent changes in mortgage lending--more sellers are finding comfort in the help of real estate professionals to guide them through the process.

FSBOs once were lured to try to sell themselves because they thought they could save on commission fees, but now sellers are realizing that if they don’t use an agent, it’ll likely cost them more in the long run, experts say.

"Selling by owner does not guarantee the seller will put 5 [percent] to 6 percent more in his or her pocket in trade for doing all the work and taking on potentially costly liabilities,” Margaret Woda, associate broker with Long & Foster in Crofton, Md., told The Washington Times. “On the contrary, prospective FSBO buyers have their eyes on that 5 percent to 6 percent as well. It's more likely the buyer will win this negotiation in a buyer's market with a huge price reduction--probably even larger than the saved commission."

Some FSBO sellers also often make the mistake of listing their home at a higher price than the market warrants. But even if they do find a buyer for that price, unless it’s a cash purchase, the home has to be appraised and many deals can then fall apart.

Source: “Fewer Sellers Going Do-it-Yourself Route,” The Washington Times (Feb. 11, 2011)

I really see this a lot in my market. For-Sale-By-Owner houses are pretty much nonexistent. It's true that there are a lot of factors going into deals nowadays and there are plenty of ways things can go wrong. As an agent, I deal with these factors on a daily basis, so I can easily deal with things and diffuse certain situations. Know someone looking to sell their home? Now is an ideal time to get it on the market to beat the spring rush. Have them contact me today at 708-307-9616 or sales@ashleywydra.com. 

Ashley

Buyers Try to Clear Out Bad Vibes

Daily Real Estate News | January 14, 2011

Buyers Try to Clear Out Bad Vibes 

Foreclosed homes may have a lot of negative energy lurking, from missing appliances, dirty carpets, cracked walls, and any number of other problems from not being cared for properly from the previous home owner.

The foreclosure crisis has sparked an increase in an unusual business: More buyers are asking for ritual house cleansings before they move in to rid the home of it’s bad auras.

Witches, psychics, priests, and feng shui consultants are being asked to come in to homes to bless or exorcise the homes of their bad spirits. Sellers are joining in too, in the hopes of trying to sell their home faster.

One buyer in Salem, Mass., two weeks before closing had a witch and warlock visit his three-story home to clang bells and spray holy water to cleanse the bad aura and break up the negative energy in the home. They poured kosher salt on doorways and raised iron swords at windows to keep evil spirits away.

"It's not entities or ghosts that we're dealing with anymore," Julie Belmont, who refers to herself as an intuitive, told The Wall Street Journal. "With foreclosures, a lot of it is energy imprints from past discussions, arguments, money problems. All of that is absorbed by the house."

Real estate pro Tamara Dorris in Sacramento, Calif., is a believer in feng shui for speeding up the sale of a property. For example, she placed a jade plant, which is believed to bring financial luck, in a designated “prosperity corner” in one home.

"Within two weeks, I had two offers," she says. "Most homes have at least one or two prosperity flaws. Foreclosed homes have five or six flaws."

Source: “The Housing Slump Has Salem on a Witch Hunt Again -- Buyers Worried About Bad Vibes From Foreclosed Homes Seek a Cleansing,” The Wall Street Journal (Jan. 13, 2011)

Although I've never experienced anything like this personally, I wanted to share it because I found it very interesting. What are your thoughts on these "cleansing" rituals? Would you have one done to your new home?

- Ashley

Lenders May Be Not-So-Fast to Foreclosure

Daily Real Estate News | January 11, 2011

Lenders May Be Not-So-Fast to Foreclosure 

After a pivotal court ruling last Friday in Massachusetts, lenders are likely to be more willing to help home owners who are struggling to make their mortgage payments.

Last Friday, the Massachusetts Supreme Judicial Court ruled that two foreclosures in the case were invalid because the banks didn’t follow proper steps to show they had the authority to foreclose on the homes.

The case likely has set a precedent for the rest of the nation’s lenders to follow: Before you foreclose on a home owner, make sure you have authority to do it.

“What banks are going to have to do is make sure they’ve dotted their I’s and crossed their T’s before going through with a foreclosure,” says Stuart Rossman, director of litigation at the National Consumer Law Center.

This could mean an even slower pace for foreclosures as banks take extra caution on their paperwork, says Roy D. Oppenheim, senior partner at Oppenheim Law in Weston, Fla.

Experts say the court ruling was a positive for home owners who are in the middle of the foreclosure process, those trying to work out modifications, refinance, or do a short sale. They say that reaching a deal with lenders may become easier.

“I am expecting the banks to do fewer foreclosures and to engage in serious conversation in pre-foreclosure with borrowers,” Oppenheim says. “We’re already seeing [some] modifications that included for the first time principal reduction.”

Source: “Foreclosure Ruling May Be Good News for Homeowners,” MarketWatch (Jan. 11, 2011)

I think it will be interesting to see what this year brings with short sales and foreclosures. I know that I personally deal with a lot of short sales and it seems like they really dominate the market. I feel that buyers are starting to shy away from these types of sales because of the length of some of the processes. Anyways, only time will tell what happens with these properties and the market we're in now!

- Ashley

Couple Found Squatting in Upscale Foreclosure

Daily Real Estate News | January 7, 2011

Couple Found Squatting in Upscale Foreclosure 

An Orange County, Calif., couple has been arrested on charges stemming from squatting in a foreclosed home in a luxurious Newport Beach neighborhood, city prosecutors say. The couple squatted for more than three months before they were discovered, authorities say.

Chis Wayne Duncan, 42, and Robin Ann Duncan, 36, face charges of second-degree burglary, among other charges.

Prosecutors say the couple hired a private investigator to locate foreclosed and vacant homes in Orange County. They then had fake leases drafted so utility companies would change utility bills to put it under their name as renters, authorities say. After an appraiser tried to enter the home, prosecutors say the couple had the locks changed.

Source: “DA: Couple Squatted in Ritzy Newport Beach Foreclosure, Put Utilities in Their Name,” Associated Press (Jan. 6, 2011) 

I think it's crazy that they got away with it for so long! I just had to share this story with you!

- Ashley