Parade of Homes
Fond du Lac
2012 Parade of HomesTM
April 27 - 29 & May 4 - 6
Thank you for attending the 2011 Fall Parade!
Click on Builder's name below for Home Description
1. Winfield Homes N6018 Wild West Lane, Fond du Lac
2. Signature Homes by Adashun Jones, Inc. N5507 DeNevue Lane, Fond du Lac
3. Winfield Homes 26 Country Lane, Fond du Lac
4. Signature Homes by Adashun Jones, Inc. 447 N. Country Lane, Fond du Lac
5. Signature Homes by Adashun Jones, Inc. 1215 Spring Lake Dr., Fond du Lac
6. Nett Construction, Inc. N7664 Redtail Lane, Malone
7. Smith Builders, Inc. N7734 Redtail Lane, Malone
8. Burg Homes & Design, Inc. N7838 Braun Drive, Malone
Posted from: http://homebuildersfdldodge.com/paradeofhomes.html
Tuesday, February 14, 2012
Thursday, February 2, 2012
Home Affordable Modification Program Expanded - HAMP
Obama Extends Foreclosure Prevention Program Aid
Daily Real Estate News | Monday, January 30, 2012
The Obama administration will be expanding eligibility requirements for its foreclosure prevention program, the Home Affordable Modification Program (HAMP), to help more struggling home owners participate.
The program will expand its eligibility requirements for those who may qualify for a loan modification, including how the debt ratio of mortgage borrowers is calculated as well as extending the program to owners of rental properties too.
HAMP will also triple the incentives it pays banks in order to get more banks to reduce the principal on loans, and it would offer incentives to Fannie Mae and Freddie Mac to reduce loan principals for those who participate in the program (previously only private lenders and banks were eligible for the incentives).
However, the Federal Housing Finance Agency, which oversees Freddie and Fannie, says that while it will consider the HAMP changes, in a recent analysis it found "that principal forgiveness did not provide benefits that were greater than principal forbearance" -- a possible sign the GSEs may not support reducing the mortgage principal on loans, housing experts speculate.
HAMP was first launched in 2009 and set out to help some 4 million struggling borrowers modify their loans, yet it has fallen short from its original goal. To date, HAMP has helped fewer than 1 million home owners.
Some housing experts are optimistic that the changes to HAMP will allow more home owners to take part in the program, and that HAMP will help more “responsible home owners lower their costs and stay in their homes," Gene Sperling, the director of the National Economic Council, at a press conference.
The new changes to the program will take effect at the end of April. Also, the program has been extended to December 2013.
Source: “Obama Administration Expands Foreclosure Prevention Program,” CNNMoney (Jan. 27, 2012)
Read More
Beating the Odds on Short Sales
Federal Agencies Crack Down on HAMP Fraud
Daily Real Estate News | Monday, January 30, 2012
The Obama administration will be expanding eligibility requirements for its foreclosure prevention program, the Home Affordable Modification Program (HAMP), to help more struggling home owners participate.
The program will expand its eligibility requirements for those who may qualify for a loan modification, including how the debt ratio of mortgage borrowers is calculated as well as extending the program to owners of rental properties too.
HAMP will also triple the incentives it pays banks in order to get more banks to reduce the principal on loans, and it would offer incentives to Fannie Mae and Freddie Mac to reduce loan principals for those who participate in the program (previously only private lenders and banks were eligible for the incentives).
However, the Federal Housing Finance Agency, which oversees Freddie and Fannie, says that while it will consider the HAMP changes, in a recent analysis it found "that principal forgiveness did not provide benefits that were greater than principal forbearance" -- a possible sign the GSEs may not support reducing the mortgage principal on loans, housing experts speculate.
HAMP was first launched in 2009 and set out to help some 4 million struggling borrowers modify their loans, yet it has fallen short from its original goal. To date, HAMP has helped fewer than 1 million home owners.
Some housing experts are optimistic that the changes to HAMP will allow more home owners to take part in the program, and that HAMP will help more “responsible home owners lower their costs and stay in their homes," Gene Sperling, the director of the National Economic Council, at a press conference.
The new changes to the program will take effect at the end of April. Also, the program has been extended to December 2013.
Source: “Obama Administration Expands Foreclosure Prevention Program,” CNNMoney (Jan. 27, 2012)
Read More
Beating the Odds on Short Sales
Federal Agencies Crack Down on HAMP Fraud
Wednesday, July 13, 2011
New FHA Foreclusure Relief for Unemployed
Unemployed FHA Homeowners Get 12 Month Payment Holiday
July 12th, 2011
There is now an additional benefit for homeowners with FHA financing. HUD has implemented a program that allows unemployed borrowers to remain in their homes for an extended period of time without having to make a mortgage payment.
The FHA has always taken exceptional steps to assist borrowers who have become delinquent in their loan payments. For example, borrowers who have fallen behind in payments are urged to contact a HUD approved housing counselor. There are a variety of programs available to help delinquent homeowners. The HUD housing counselor can provide specific guidance to each delinquent homeowner on the best course of action to take.
Commencing in August, the FHA will make changes to its Special Forbearance Program. Loan servicers will be required to extend a 12 month forbearance period to all unemployed homeowners. The current guidelines allow only a 4 month forbearance period, but were extended due to the fact that 45% of the unemployed have been out of work for over six months.
Under a mortgage forbearance, the lender agrees to suspend the legal right to foreclosure for a specific period of time. In turn, the borrower agrees to bring the mortgage payments current under a structured repayment plan. The past due payments are typically added to the mortgage balance and are paid off once the borrower begins to make payments again. Lenders have generally agreed to forbearance plans when the borrower could not make payments due to short term problems that were expected to be cured relatively soon.
Under the new guidelines, the FHA’s Special Forbearance Program gives borrowers up to a year to find employment without having to worry about making a mortgage payment. After the one year payment holiday, the FHA reviews the borrower’s financial condition to determine what future course of action to take.
Whether or not the expanded assistance by the FHA will prevent borrowers from losing their homes remains to be seen. Anyone out of work for a year is likely to fall behind on other debt obligations. After an extended period of unemployment, it will be difficult for borrowers to resume making mortgage payments if savings have been depleted and other payments are in arrears. If the borrower eventually finds a new job, but at lower pay, the borrower may quickly wind up in default again.
Ultimately, the biggest benefit of the FHA Forbearance Plan could result from buying time and living in the home for an extended period of time with zero mortgage payments. Most FHA homeowners have negative equity due to the very small down payment made when the home was purchased. In addition, as home prices continue to spiral downward, negative equity continues to increase.
If making the payment is difficult and the mortgage balance is substantially larger than the value of the home, the smartest financial choice for many homeowners will be a strategic default. The FHA Forbearance Plan will stop the foreclosure clock for a year. Once the foreclosure process actually begins, it could take years to complete. Homeowners who chose to strategically default could wind up living in the home, payment free, for many years before they are finally evicted (see You Walk Away – Intelligent Strategic Default).
The FHA Forbearance Plan may wind up benefiting FHA borrowers in a way the FHA never contemplated.
http://fhamortgagemag.com/
July 12th, 2011
There is now an additional benefit for homeowners with FHA financing. HUD has implemented a program that allows unemployed borrowers to remain in their homes for an extended period of time without having to make a mortgage payment.
The FHA has always taken exceptional steps to assist borrowers who have become delinquent in their loan payments. For example, borrowers who have fallen behind in payments are urged to contact a HUD approved housing counselor. There are a variety of programs available to help delinquent homeowners. The HUD housing counselor can provide specific guidance to each delinquent homeowner on the best course of action to take.
Commencing in August, the FHA will make changes to its Special Forbearance Program. Loan servicers will be required to extend a 12 month forbearance period to all unemployed homeowners. The current guidelines allow only a 4 month forbearance period, but were extended due to the fact that 45% of the unemployed have been out of work for over six months.
Under a mortgage forbearance, the lender agrees to suspend the legal right to foreclosure for a specific period of time. In turn, the borrower agrees to bring the mortgage payments current under a structured repayment plan. The past due payments are typically added to the mortgage balance and are paid off once the borrower begins to make payments again. Lenders have generally agreed to forbearance plans when the borrower could not make payments due to short term problems that were expected to be cured relatively soon.
Under the new guidelines, the FHA’s Special Forbearance Program gives borrowers up to a year to find employment without having to worry about making a mortgage payment. After the one year payment holiday, the FHA reviews the borrower’s financial condition to determine what future course of action to take.
Whether or not the expanded assistance by the FHA will prevent borrowers from losing their homes remains to be seen. Anyone out of work for a year is likely to fall behind on other debt obligations. After an extended period of unemployment, it will be difficult for borrowers to resume making mortgage payments if savings have been depleted and other payments are in arrears. If the borrower eventually finds a new job, but at lower pay, the borrower may quickly wind up in default again.
Ultimately, the biggest benefit of the FHA Forbearance Plan could result from buying time and living in the home for an extended period of time with zero mortgage payments. Most FHA homeowners have negative equity due to the very small down payment made when the home was purchased. In addition, as home prices continue to spiral downward, negative equity continues to increase.
If making the payment is difficult and the mortgage balance is substantially larger than the value of the home, the smartest financial choice for many homeowners will be a strategic default. The FHA Forbearance Plan will stop the foreclosure clock for a year. Once the foreclosure process actually begins, it could take years to complete. Homeowners who chose to strategically default could wind up living in the home, payment free, for many years before they are finally evicted (see You Walk Away – Intelligent Strategic Default).
The FHA Forbearance Plan may wind up benefiting FHA borrowers in a way the FHA never contemplated.
http://fhamortgagemag.com/
Friday, April 29, 2011
Preparing to sell...
If you are thinking of selling but are feeling overwhelmed by the work that still needs to be done to the home prior to putting it up for sale the following website may be a big help!!!
http://www.angieslist.com
- see customer reviews on local qualified contractors
This is a consumer driven site and may be a really big help!
http://www.angieslist.com
- see customer reviews on local qualified contractors
This is a consumer driven site and may be a really big help!
Tuesday, April 26, 2011
Still the most stable investment for your future...
Home buyers today have affirmed a long-term view of home ownership, the typical seller is experiencing positive returns and the vast majority of home owners see their property as a good investment, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2010 REALTORS® Conference & Expo.
The 2010 National Association of REALTORS® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers.
Although typical sellers had been in their previous home for eight years, up from seven years in the 2009 study, first-time buyers plan to stay for 10 years and repeat buyers plan to hold their property for 15 years.
NAR 2010 President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said the pattern of home buyers taking a long-term view has solidified over the past few years. “This underscores two simple facts – home ownership encourages stability, and the longer you own, the better your investment.”
Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent.
“Sellers who purchased at the top of the market and had to sell in a short time frame were hurt by the price correction, but the vast majority who are able to stay for a normal period of home ownership generally built enough equity to make a trade-up purchase,” Golder said. “Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property.”
House flipping is virtually nonexistent in today’s market. “The primary exception is for experienced investors, many of whom pay cash and are making renovations or improvements after a careful study of properties, neighborhoods and market demand,” Golder explained. “The house flipping and quick gains which occurred during the boom period were abnormal, driven by risky, easy-money financing that should never have been allowed in the market.”
In the 2006 study, covering sellers during the close of the housing boom, 6 percent of sellers had owned their property for less than a year and a total of 30 percent had owned for three years or less. In the 2010 study, only 3 percent had owned their home for less than a year and a total of 11 percent had owned for three years or less.
Paul Bishop, NAR vice president of research, said the lion’s share of buyers view their home as a good investment. “Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks,” he said. “Even with the turmoil created by the housing boom and bust, this indicates the long-term view of home ownership as a fundamental goal and value remains sound. In fact, the single biggest reason most people buy a home is the simple desire to own a home of their own, cited by 31 percent of respondents, including 53 percent of first-time buyers.”
The next biggest reasons for buying, identified by all home buyers, were desire for a larger home, 9 percent; a change in family situation and the home buyer tax credit, cited by 8 percent each; a job-related move, 7 percent; and the affordability of homes, 6 percent. Twelve other categories were 5 percent or less.
The number of first-time home buyers rose to a record high 50 percent of all home sales from 47 percent in the 2009 study, building on success of the home buyer tax credit which began in 2009. The previous cyclical high for first-time buyers was 44 percent in 1991; records date back to 1981.
The profile shows the median age of first-time buyers was 30 and the median income was $59,900. The typical first-time buyer purchased a 1,540 square foot home costing $152,000, with 93 percent using the first-time buyer tax credit.
First-time buyers who made a downpayment used a variety of sources: 74 percent used savings, 27 percent received a gift from a friend or relative, typically from their parents, and 9 percent received a loan from a relative or friend. Eight percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-five percent chose a fixed-rate mortgage.
The shares of entry-level buyers receiving a gift or loan were modestly higher than 2009 when 22 percent received a gift and 6 percent a loan from a relative or friend. “It appears more parents were motivated to help their children to take advantage of the home buyer tax credit and very favorable affordability conditions,” Bishop said.
Fifty-six percent of entry level buyers financed their purchase with an FHA loan, while another 7 percent used the VA loan program. Forty-two percent said financing their first home was more difficult than expected and 9 percent had been rejected by a lender.
Fifty-eight percent of all buyers are married couples, 20 percent are single women, 12 percent single men, 8 percent unmarried couples and 1 percent other.
Bishop noted that women buyers have accounted for roughly one out of five transactions since the late 1990s, and single men have been at the one in 10 level since 1981. “A modest increase in the share of single men buyers may result from the home buyer tax credit, but this is the highest share for single men in the history of the study,” he said.
Buyers searched a median of 12 weeks and viewed 12 homes. Fourteen percent of buyers own two or more homes.
The typical repeat buyer was 49 years old, earned $87,000, and purchased a 2,000 square foot home costing $215,000.
The median downpayment of all home buyers was 8 percent, ranging from 4 percent for first-time buyers to 14 percent for repeat buyers.
The median age of home sellers was 49 and their income was $90,000. Sellers moved a median distance of 18 miles and their home was on the market for 8 weeks, down from 10 weeks in the 2009 survey. Half traded up in size, 28 percent bought a comparably sized home and 21 percent traded down.
Sixty-four percent of sellers chose their agent based on a referral or had used the same agent in the past. Reputation was the most important factor in choosing an agent, cited by 35 percent of respondents, followed by trustworthiness at 23 percent. Eighty-four percent of sellers are likely to use the same agent again or recommend to others.
Forty-four percent of sellers offered incentives to attract buyers, such as home warranties or assistance with closing costs. The typical home sold for 96 percent of the listing price, compared with 95 percent in the 2009 profile.
Home buyers thought the most important services agents offer are helping find the right house, and negotiating sales terms and price. Buyers also most commonly choose an agent based on a referral from a friend, neighbor or relative, with trustworthiness and reputation being the most important factors.
Buyers use a wide variety of resources in searching for a home: 89 percent surf the Internet, 88 percent use real estate agents, 57 percent yard signs, 45 percent attend open houses and 36 percent look at print or newspaper ads. Although buyers also use other resources, they generally start the search process online and then contact an agent.
When asked where they first learned about the home purchased, 38 percent of buyers said the Internet; 37 percent of buyers from a real estate agent; 11 percent a yard sign or open house; 6 percent from a friend, neighbor or relative; 4 percent home builders; 2 percent a print or newspaper ad; 2 percent directly from the seller; and less than 1 percent from a home book or magazine.
Eighty-five percent of home buyers who used the Internet to search for a home purchased through a real estate agent, while 70 percent of non-Internet users were more likely to purchase directly from a builder or from an owner they already knew in a private transaction.
Local metropolitan multiple listing service websites were the most popular Internet resource, used by 59 percent of buyers; followed by Realtor.com, 45 percent; real estate company sites, 43 percent; real estate agent websites, 42 percent; other websites with real estate listings, 41 percent; and for-sale-by-owner sites, 15 percent; other categories were smaller.
Seventy-seven percent of all buyers purchased a detached single-family home, 9 percent a condo, 8 percent a townhouse or rowhouse, and 6 percent some other kind of housing.
Commuting costs continue to factor strongly in buyer decisions, with three-quarters of buyers saying transportation costs were important.
Environmentally friendly features remain a significant factor: 88 percent of buyers said that heating and cooling costs were important, 71 percent desired energy efficient appliances, and 69 percent wanted energy efficient lighting.
Fifty-two percent of all homes purchased were in a suburb or subdivision, 18 percent were in an urban area, 17 percent in a small town, 11 percent in a rural area and 1 percent in a resort or recreation area. The median distance from the previous residence was 12 miles.
Not surprisingly, for-sale-by-owner transactions reached a record low, accounting for 9 percent of sales in the 2010 study, down from 11 percent in 2009. The share of homes sold without professional representation has trended down since reaching a cyclical peak of 18 percent in 1997. “In a market as challenging as today, it’s clear most home sellers need professional assistance,” Bishop said.
As seen in previous studies, many FSBO properties were not placed on the open market. Factoring out private sales between parties who knew each other in advance such as family or acquaintances, the actual number of homes sold on the open market without professional assistance was a record low 5 percent – the rest were unrepresented sellers in private transactions. The market share of open-market FSBOs is half of what it was six years ago – 10 percent were sold on the open market in 2004.
The median home price for sellers who used an agent was $199,300 vs. $140,000 for a home sold directly by an owner, but there were important differences. The median income of unassisted sellers was $64,000, in contrast with $93,200 for agent-assisted sellers. Unassisted sellers were much more likely to be selling a somewhat smaller home, and they were more likely to be in a rural area. Combined, these factors suggest a lower value for FSBO properties.
The most difficult tasks reported by unrepresented sellers are getting the right price, preparing and fixing the home for sale, understanding and performing paperwork, and selling within the planned length of time.
NAR mailed an eight-page questionnaire in July 2010 to a national sample of 111,004 home buyers and sellers who purchased their homes between July 2009 and June 2010, according to county records. It generated 8,449 usable responses; the adjusted response rate was 7.9 percent. All information is characteristic of the 12-month period ending in June 2010 with the exception of income data, which are for 2009. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section.
The 2010 National Association of REALTORS® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers.
Although typical sellers had been in their previous home for eight years, up from seven years in the 2009 study, first-time buyers plan to stay for 10 years and repeat buyers plan to hold their property for 15 years.
NAR 2010 President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said the pattern of home buyers taking a long-term view has solidified over the past few years. “This underscores two simple facts – home ownership encourages stability, and the longer you own, the better your investment.”
Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent.
“Sellers who purchased at the top of the market and had to sell in a short time frame were hurt by the price correction, but the vast majority who are able to stay for a normal period of home ownership generally built enough equity to make a trade-up purchase,” Golder said. “Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property.”
House flipping is virtually nonexistent in today’s market. “The primary exception is for experienced investors, many of whom pay cash and are making renovations or improvements after a careful study of properties, neighborhoods and market demand,” Golder explained. “The house flipping and quick gains which occurred during the boom period were abnormal, driven by risky, easy-money financing that should never have been allowed in the market.”
In the 2006 study, covering sellers during the close of the housing boom, 6 percent of sellers had owned their property for less than a year and a total of 30 percent had owned for three years or less. In the 2010 study, only 3 percent had owned their home for less than a year and a total of 11 percent had owned for three years or less.
Paul Bishop, NAR vice president of research, said the lion’s share of buyers view their home as a good investment. “Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks,” he said. “Even with the turmoil created by the housing boom and bust, this indicates the long-term view of home ownership as a fundamental goal and value remains sound. In fact, the single biggest reason most people buy a home is the simple desire to own a home of their own, cited by 31 percent of respondents, including 53 percent of first-time buyers.”
The next biggest reasons for buying, identified by all home buyers, were desire for a larger home, 9 percent; a change in family situation and the home buyer tax credit, cited by 8 percent each; a job-related move, 7 percent; and the affordability of homes, 6 percent. Twelve other categories were 5 percent or less.
The number of first-time home buyers rose to a record high 50 percent of all home sales from 47 percent in the 2009 study, building on success of the home buyer tax credit which began in 2009. The previous cyclical high for first-time buyers was 44 percent in 1991; records date back to 1981.
The profile shows the median age of first-time buyers was 30 and the median income was $59,900. The typical first-time buyer purchased a 1,540 square foot home costing $152,000, with 93 percent using the first-time buyer tax credit.
First-time buyers who made a downpayment used a variety of sources: 74 percent used savings, 27 percent received a gift from a friend or relative, typically from their parents, and 9 percent received a loan from a relative or friend. Eight percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-five percent chose a fixed-rate mortgage.
The shares of entry-level buyers receiving a gift or loan were modestly higher than 2009 when 22 percent received a gift and 6 percent a loan from a relative or friend. “It appears more parents were motivated to help their children to take advantage of the home buyer tax credit and very favorable affordability conditions,” Bishop said.
Fifty-six percent of entry level buyers financed their purchase with an FHA loan, while another 7 percent used the VA loan program. Forty-two percent said financing their first home was more difficult than expected and 9 percent had been rejected by a lender.
Fifty-eight percent of all buyers are married couples, 20 percent are single women, 12 percent single men, 8 percent unmarried couples and 1 percent other.
Bishop noted that women buyers have accounted for roughly one out of five transactions since the late 1990s, and single men have been at the one in 10 level since 1981. “A modest increase in the share of single men buyers may result from the home buyer tax credit, but this is the highest share for single men in the history of the study,” he said.
Buyers searched a median of 12 weeks and viewed 12 homes. Fourteen percent of buyers own two or more homes.
The typical repeat buyer was 49 years old, earned $87,000, and purchased a 2,000 square foot home costing $215,000.
The median downpayment of all home buyers was 8 percent, ranging from 4 percent for first-time buyers to 14 percent for repeat buyers.
The median age of home sellers was 49 and their income was $90,000. Sellers moved a median distance of 18 miles and their home was on the market for 8 weeks, down from 10 weeks in the 2009 survey. Half traded up in size, 28 percent bought a comparably sized home and 21 percent traded down.
Sixty-four percent of sellers chose their agent based on a referral or had used the same agent in the past. Reputation was the most important factor in choosing an agent, cited by 35 percent of respondents, followed by trustworthiness at 23 percent. Eighty-four percent of sellers are likely to use the same agent again or recommend to others.
Forty-four percent of sellers offered incentives to attract buyers, such as home warranties or assistance with closing costs. The typical home sold for 96 percent of the listing price, compared with 95 percent in the 2009 profile.
Home buyers thought the most important services agents offer are helping find the right house, and negotiating sales terms and price. Buyers also most commonly choose an agent based on a referral from a friend, neighbor or relative, with trustworthiness and reputation being the most important factors.
Buyers use a wide variety of resources in searching for a home: 89 percent surf the Internet, 88 percent use real estate agents, 57 percent yard signs, 45 percent attend open houses and 36 percent look at print or newspaper ads. Although buyers also use other resources, they generally start the search process online and then contact an agent.
When asked where they first learned about the home purchased, 38 percent of buyers said the Internet; 37 percent of buyers from a real estate agent; 11 percent a yard sign or open house; 6 percent from a friend, neighbor or relative; 4 percent home builders; 2 percent a print or newspaper ad; 2 percent directly from the seller; and less than 1 percent from a home book or magazine.
Eighty-five percent of home buyers who used the Internet to search for a home purchased through a real estate agent, while 70 percent of non-Internet users were more likely to purchase directly from a builder or from an owner they already knew in a private transaction.
Local metropolitan multiple listing service websites were the most popular Internet resource, used by 59 percent of buyers; followed by Realtor.com, 45 percent; real estate company sites, 43 percent; real estate agent websites, 42 percent; other websites with real estate listings, 41 percent; and for-sale-by-owner sites, 15 percent; other categories were smaller.
Seventy-seven percent of all buyers purchased a detached single-family home, 9 percent a condo, 8 percent a townhouse or rowhouse, and 6 percent some other kind of housing.
Commuting costs continue to factor strongly in buyer decisions, with three-quarters of buyers saying transportation costs were important.
Environmentally friendly features remain a significant factor: 88 percent of buyers said that heating and cooling costs were important, 71 percent desired energy efficient appliances, and 69 percent wanted energy efficient lighting.
Fifty-two percent of all homes purchased were in a suburb or subdivision, 18 percent were in an urban area, 17 percent in a small town, 11 percent in a rural area and 1 percent in a resort or recreation area. The median distance from the previous residence was 12 miles.
Not surprisingly, for-sale-by-owner transactions reached a record low, accounting for 9 percent of sales in the 2010 study, down from 11 percent in 2009. The share of homes sold without professional representation has trended down since reaching a cyclical peak of 18 percent in 1997. “In a market as challenging as today, it’s clear most home sellers need professional assistance,” Bishop said.
As seen in previous studies, many FSBO properties were not placed on the open market. Factoring out private sales between parties who knew each other in advance such as family or acquaintances, the actual number of homes sold on the open market without professional assistance was a record low 5 percent – the rest were unrepresented sellers in private transactions. The market share of open-market FSBOs is half of what it was six years ago – 10 percent were sold on the open market in 2004.
The median home price for sellers who used an agent was $199,300 vs. $140,000 for a home sold directly by an owner, but there were important differences. The median income of unassisted sellers was $64,000, in contrast with $93,200 for agent-assisted sellers. Unassisted sellers were much more likely to be selling a somewhat smaller home, and they were more likely to be in a rural area. Combined, these factors suggest a lower value for FSBO properties.
The most difficult tasks reported by unrepresented sellers are getting the right price, preparing and fixing the home for sale, understanding and performing paperwork, and selling within the planned length of time.
NAR mailed an eight-page questionnaire in July 2010 to a national sample of 111,004 home buyers and sellers who purchased their homes between July 2009 and June 2010, according to county records. It generated 8,449 usable responses; the adjusted response rate was 7.9 percent. All information is characteristic of the 12-month period ending in June 2010 with the exception of income data, which are for 2009. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section.
Thursday, April 8, 2010
Mortgage Relief Expanded
Obama expands mortgage modification effort
By Tami Luhby, senior writer March 26, 2010: 3:44 PM ET
NEW YORK (CNNMoney..com) -- Under fire to do more to stop the foreclosure crisis, the Obama administration announced new mortgage modification steps on Friday to help the unemployed and those who are "underwater" with a bigger loan than their home is worth.
The centerpiece of the expanded program addresses the steep decline in property values by requiring banks to consider reducing loan balances, a move a growing chorus of experts say is essential to righting the housing market. Banks, however, have been very reluctant.
Also, lenders will now be required to temporarily reduce -- or even suspend -- payments for eligible unemployed borrowers. The forbearance assistance would last up to six months, after which the borrower would be evaluated for a loan modification.
The expansion of the president's signature $75 billion loan modification program will begin in the fall and be paid for with money from the Troubled Asset Relief Program.
Expanding assistance
Principal reduction: The new initiative encourages servicers to reduce loan principal for delinquent borrowers when that is more advantageous to mortgage investors than reducing interest rates.
While lowering balances would remain optional, many servicers are required by contract to do what is in the investor's best financial interest.
Servicers and second-lien holders would receive financial incentives to write down principal.
Principal reduction would be available for HAMP-eligible borrowers who owe more than 115% of their home's current value. The balance would be forgiven as long as the homeowner makes timely payments for three years.
FHA refinance: Some borrowers who are current on their mortgages but have seen their property values drop could refinance into Federal Housing Administration loans worth no more than 97...75% of their home's price. If the borrower has a second lien, the total mortgage debt could not exceed 115% of the property's value.
Homeowners, however, must meet FHA's qualifications and have a credit score of at least 500. Their new monthly payments would be no more than 31% of their monthly income.
Some $14 billion has set aside to provide incentives to encourage servicers and second lien holders to participate in the FHA program.
The unemployed: Servicers would be required to offer forbearance plans to all qualified jobless borrowers for at least three and as long as six months. Under the plan, the unemployed could see their monthly payments reduced to 31% of income or less -- or even suspended entirely.
Borrowers must meet HAMP eligibility requirements as well as submit evidence that they are receiving unemployment benefits. They must also be in their first 90 days of delinquency.
After the assistance period ends, homeowners would be evaluated for a loan modification or foreclosure alternatives, such as short sales, in which a bank agrees to sell the property for less than what is owed.
An administration official declined to comment whether interest or fees would be charged during the forbearance period.
Separately, the government will double the incentive to servicers to complete a HAMP modification, to $2,000, and provide more funds to second-lien holders that release borrowers from their debt. It will also double relocation assistance to borrowers who cannot afford to stay in their homes to $3,000.
While banks have steadfastly avoided reducing mortgage principal, Bank of America has taken the first tentative step to cutting balances. It announced Wednesday it would lower the mortgage principal of a limited number of borrowers if they remained current for five years.
The new Obama administration initiative follows a smaller effort announced last month that would provide $1.5 billion to housing finance agencies in five states to develop programs to assist the unemployed and underwater.
Reducing loan balances, however, is very controversial. Some experts fear the benefit will go to those who don't truly need or deserve it, the so-called "moral hazard" argument. And it's likely to anger those who continue to make timely mortgage payments every month.
Faltering loan modifications
The expansion of the president's loan modification effort comes on the heels of two blistering government watchdog reports, which slammed the administration for poor implementation of the program, and raised doubts that it would reach the initial goal of helping 3 to 4 million troubled borrowers stay in their homes.
The program, which calls for reducing borrowers' monthly payments to 31% of their pre-tax income, has led to only about 170,000 long-term modifications so far.
The low figure has prompted consumer advocates and industry experts to call the program -- which focuses on adjusting interest rates and loan terms to bring monthly payments to affordable levels -- a failure.
Meanwhile, the nation is sinking deeper into the mortgage crisis. The share of seriously delinquent loans in the fourth quarter jumped 21% over the previous quarter, regulators said Thursday.
By Tami Luhby, senior writer March 26, 2010: 3:44 PM ET
NEW YORK (CNNMoney..com) -- Under fire to do more to stop the foreclosure crisis, the Obama administration announced new mortgage modification steps on Friday to help the unemployed and those who are "underwater" with a bigger loan than their home is worth.
The centerpiece of the expanded program addresses the steep decline in property values by requiring banks to consider reducing loan balances, a move a growing chorus of experts say is essential to righting the housing market. Banks, however, have been very reluctant.
Also, lenders will now be required to temporarily reduce -- or even suspend -- payments for eligible unemployed borrowers. The forbearance assistance would last up to six months, after which the borrower would be evaluated for a loan modification.
The expansion of the president's signature $75 billion loan modification program will begin in the fall and be paid for with money from the Troubled Asset Relief Program.
Expanding assistance
Principal reduction: The new initiative encourages servicers to reduce loan principal for delinquent borrowers when that is more advantageous to mortgage investors than reducing interest rates.
While lowering balances would remain optional, many servicers are required by contract to do what is in the investor's best financial interest.
Servicers and second-lien holders would receive financial incentives to write down principal.
Principal reduction would be available for HAMP-eligible borrowers who owe more than 115% of their home's current value. The balance would be forgiven as long as the homeowner makes timely payments for three years.
FHA refinance: Some borrowers who are current on their mortgages but have seen their property values drop could refinance into Federal Housing Administration loans worth no more than 97...75% of their home's price. If the borrower has a second lien, the total mortgage debt could not exceed 115% of the property's value.
Homeowners, however, must meet FHA's qualifications and have a credit score of at least 500. Their new monthly payments would be no more than 31% of their monthly income.
Some $14 billion has set aside to provide incentives to encourage servicers and second lien holders to participate in the FHA program.
The unemployed: Servicers would be required to offer forbearance plans to all qualified jobless borrowers for at least three and as long as six months. Under the plan, the unemployed could see their monthly payments reduced to 31% of income or less -- or even suspended entirely.
Borrowers must meet HAMP eligibility requirements as well as submit evidence that they are receiving unemployment benefits. They must also be in their first 90 days of delinquency.
After the assistance period ends, homeowners would be evaluated for a loan modification or foreclosure alternatives, such as short sales, in which a bank agrees to sell the property for less than what is owed.
An administration official declined to comment whether interest or fees would be charged during the forbearance period.
Separately, the government will double the incentive to servicers to complete a HAMP modification, to $2,000, and provide more funds to second-lien holders that release borrowers from their debt. It will also double relocation assistance to borrowers who cannot afford to stay in their homes to $3,000.
While banks have steadfastly avoided reducing mortgage principal, Bank of America has taken the first tentative step to cutting balances. It announced Wednesday it would lower the mortgage principal of a limited number of borrowers if they remained current for five years.
The new Obama administration initiative follows a smaller effort announced last month that would provide $1.5 billion to housing finance agencies in five states to develop programs to assist the unemployed and underwater.
Reducing loan balances, however, is very controversial. Some experts fear the benefit will go to those who don't truly need or deserve it, the so-called "moral hazard" argument. And it's likely to anger those who continue to make timely mortgage payments every month.
Faltering loan modifications
The expansion of the president's loan modification effort comes on the heels of two blistering government watchdog reports, which slammed the administration for poor implementation of the program, and raised doubts that it would reach the initial goal of helping 3 to 4 million troubled borrowers stay in their homes.
The program, which calls for reducing borrowers' monthly payments to 31% of their pre-tax income, has led to only about 170,000 long-term modifications so far.
The low figure has prompted consumer advocates and industry experts to call the program -- which focuses on adjusting interest rates and loan terms to bring monthly payments to affordable levels -- a failure.
Meanwhile, the nation is sinking deeper into the mortgage crisis. The share of seriously delinquent loans in the fourth quarter jumped 21% over the previous quarter, regulators said Thursday.
Tuesday, February 23, 2010
Maximize your Tax Returns
You’ve heard it before: Your home is probably the biggest investment you’ll ever make. It’s also probably the biggest tax write-off you’ll ever have. Follow these tax tips for homeowners to ensure that you receive all of the tax deductions and tax credits to which you’re entitled for the 2009 tax year.
Home-related tax deductions, from mortgage interest to real estate taxes, can add up. If you’re married filing jointly with taxable income of $100,000, an extra $5,000 in deductions would lower your tax bill by $1,250. Tax credits, for such things as energy efficiency and homebuying, are even more valuable because they increase your refund (or decrease what you owe) dollar for dollar.
Give yourself a day to organize paperwork and fill out tax forms. Need help? IRS Publication 17, “Your Federal Income Tax,” has the answer to just about any question you can think of, and it’s free. Basic tax software starts at $29.95, and H&R Block charges $187, on average, to prepare a tax return. Full-service accountants charge more, depending on the complexity of a return.
Tax deductions for non-itemizing homeowners
The last thing taxpayers want to hear is that the IRS has come out with yet another form. But this time the news is good, especially for homeowners. The new Schedule L allows homeowners who don’t use Schedule A to itemize returns to deduct real estate taxes and certain disaster-related losses. Only about one-third of filers itemize, according to the IRS.
Non-itemizers are usually entitled to a standard deduction, which for 2009 is $11,400 for married couples filing jointly ($5,700 for singles). Schedule L allows homeowners to increase the standard deduction by as much as $1,000 ($500 for singles and married filing separately) to account for any state or local real estate taxes paid during the year.
Losses from federally declared disasters can also be added to the standard deduction. First, affected homeowners need to complete Form 4684 to determine the amount of the net disaster loss. Then, the amount of the loss needs to be reported on Schedule L to determine the new standard deduction. Only losses from official federally declared disasters, as opposed to ordinary casualty losses suffered during non-declared disasters, can be added to the standard deduction.
Mortgage-related deductions
Generally, the interest you pay on the mortgage for your main home and a second home is tax deductible. To qualify for the mortgage interest deduction, the loan must be secured by a qualified home, and you must itemize your tax return. Even a house trailer or boat can count as a qualified home, as long as there are sleeping, cooking, and toilet facilities.
The interest you pay on second mortgages, home equity loans, and home equity lines of credit (HELOCs) can also be deducted. Generally, you can deduct the interest on up to $1 million—$500,000 if you’re married filing separately—in home loans used to buy, build, or improve a home. If a home loan was used for other purposes, such as buying a car or paying tuition, you can only deduct interest on the first $100,000 ($50,000 for married filing separately). Read IRS Publication 936.
“Points,” certain fees paid to a lender to obtain a home loan, might be deductible too. The general rule for points that you pay on refinanced loans is that those points aren’t deductible in full immediately, but are spread across the life of the new loan. In limited circumstances, if you pay the full amount of those points at the refinancing closing, you might be able to deduct the points in full immediately. The mortgage insurance premiums you pay on loans issued or refinanced after 2006 also can be deducted, though income limits apply.
Energy-efficiency tax credits
Home improvements made during 2009 aimed at lowering your energy bills could lower your tax bill as well. Uncle Sam is offering energy-efficiency tax credits equal to 30% of the cost of qualifying projects. Claim your residential energy tax credits on IRS Form 5695.
The tax credit for some energy-efficiency improvements, such as new windows and insulation, is capped at $1,500. More ambitious projects, such as solar panels and geothermal heat pumps, have no upper limit on the amount of the credit. Restrictions apply to both capped and uncapped credits—second homes may or may not qualify, and labor costs are excluded in some cases—so be sure to familiarize yourself with the energy tax credit rules.
Homebuyer tax credits
If you bought a home in 2009, you might be eligible for a homebuyer tax credit. First-time buyers who made a purchase between Jan. 1 and Nov. 6, 2009, can get a tax credit worth up to $8,000. Income restrictions apply. Purchases made after Nov. 6 2009 and before June 30th 2010 are subject to more generous income limits as well as an $800,000 cap on home prices. A first-time buyer is defined as someone who didn’t own a home for three years prior to purchase.
The tax credit isn’t limited to first-time buyers. Longtime homeowners who’ve lived in their principal residences for five consecutive years out of the last eight can qualify too. This tax credit, worth up to $6,500, is good on home purchases made after Nov. 6. There are income and price restrictions.
Claim your homebuyer tax credits on IRS Form 5405. Because the IRS requires additional paperwork to verify the home purchase, you can’t file electronically. The homebuyer tax credits were extended into 2010. A signed contract needs to be in place by April 30, and settlement needs to occur before July 1. Credits earned in 2010 can be taken on 2009 or 2010 returns.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.
Mike DeSenne is Online Managing Editor for taxes, finances, and insurance at HouseLogic.com, and the former Executive Editor of SmartMoney.com.
Home-related tax deductions, from mortgage interest to real estate taxes, can add up. If you’re married filing jointly with taxable income of $100,000, an extra $5,000 in deductions would lower your tax bill by $1,250. Tax credits, for such things as energy efficiency and homebuying, are even more valuable because they increase your refund (or decrease what you owe) dollar for dollar.
Give yourself a day to organize paperwork and fill out tax forms. Need help? IRS Publication 17, “Your Federal Income Tax,” has the answer to just about any question you can think of, and it’s free. Basic tax software starts at $29.95, and H&R Block charges $187, on average, to prepare a tax return. Full-service accountants charge more, depending on the complexity of a return.
Tax deductions for non-itemizing homeowners
The last thing taxpayers want to hear is that the IRS has come out with yet another form. But this time the news is good, especially for homeowners. The new Schedule L allows homeowners who don’t use Schedule A to itemize returns to deduct real estate taxes and certain disaster-related losses. Only about one-third of filers itemize, according to the IRS.
Non-itemizers are usually entitled to a standard deduction, which for 2009 is $11,400 for married couples filing jointly ($5,700 for singles). Schedule L allows homeowners to increase the standard deduction by as much as $1,000 ($500 for singles and married filing separately) to account for any state or local real estate taxes paid during the year.
Losses from federally declared disasters can also be added to the standard deduction. First, affected homeowners need to complete Form 4684 to determine the amount of the net disaster loss. Then, the amount of the loss needs to be reported on Schedule L to determine the new standard deduction. Only losses from official federally declared disasters, as opposed to ordinary casualty losses suffered during non-declared disasters, can be added to the standard deduction.
Mortgage-related deductions
Generally, the interest you pay on the mortgage for your main home and a second home is tax deductible. To qualify for the mortgage interest deduction, the loan must be secured by a qualified home, and you must itemize your tax return. Even a house trailer or boat can count as a qualified home, as long as there are sleeping, cooking, and toilet facilities.
The interest you pay on second mortgages, home equity loans, and home equity lines of credit (HELOCs) can also be deducted. Generally, you can deduct the interest on up to $1 million—$500,000 if you’re married filing separately—in home loans used to buy, build, or improve a home. If a home loan was used for other purposes, such as buying a car or paying tuition, you can only deduct interest on the first $100,000 ($50,000 for married filing separately). Read IRS Publication 936.
“Points,” certain fees paid to a lender to obtain a home loan, might be deductible too. The general rule for points that you pay on refinanced loans is that those points aren’t deductible in full immediately, but are spread across the life of the new loan. In limited circumstances, if you pay the full amount of those points at the refinancing closing, you might be able to deduct the points in full immediately. The mortgage insurance premiums you pay on loans issued or refinanced after 2006 also can be deducted, though income limits apply.
Energy-efficiency tax credits
Home improvements made during 2009 aimed at lowering your energy bills could lower your tax bill as well. Uncle Sam is offering energy-efficiency tax credits equal to 30% of the cost of qualifying projects. Claim your residential energy tax credits on IRS Form 5695.
The tax credit for some energy-efficiency improvements, such as new windows and insulation, is capped at $1,500. More ambitious projects, such as solar panels and geothermal heat pumps, have no upper limit on the amount of the credit. Restrictions apply to both capped and uncapped credits—second homes may or may not qualify, and labor costs are excluded in some cases—so be sure to familiarize yourself with the energy tax credit rules.
Homebuyer tax credits
If you bought a home in 2009, you might be eligible for a homebuyer tax credit. First-time buyers who made a purchase between Jan. 1 and Nov. 6, 2009, can get a tax credit worth up to $8,000. Income restrictions apply. Purchases made after Nov. 6 2009 and before June 30th 2010 are subject to more generous income limits as well as an $800,000 cap on home prices. A first-time buyer is defined as someone who didn’t own a home for three years prior to purchase.
The tax credit isn’t limited to first-time buyers. Longtime homeowners who’ve lived in their principal residences for five consecutive years out of the last eight can qualify too. This tax credit, worth up to $6,500, is good on home purchases made after Nov. 6. There are income and price restrictions.
Claim your homebuyer tax credits on IRS Form 5405. Because the IRS requires additional paperwork to verify the home purchase, you can’t file electronically. The homebuyer tax credits were extended into 2010. A signed contract needs to be in place by April 30, and settlement needs to occur before July 1. Credits earned in 2010 can be taken on 2009 or 2010 returns.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.
Mike DeSenne is Online Managing Editor for taxes, finances, and insurance at HouseLogic.com, and the former Executive Editor of SmartMoney.com.
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