Credit may be adversely affected regardless of the type of sale—foreclosure or short sale. Credit score declines can vary and the negative mark may remain on the credit report for seven years. Both foreclosures and short sales might affect the ability to quality for a loan to purchase another home. In some short sale cases ... [Read More]
Credit may be adversely affected regardless of the type of sale—foreclosure or short sale. Credit score declines can vary and the negative mark may remain on the credit report for seven years. Both foreclosures and short sales might affect the ability to quality for a loan to purchase another home. In some short sale cases where the seller may have even been current with mortgage payments but sold the home for less than the outstanding loan amount, the credit report could indicate that the debt was settled for less than what was owed and the impact may be less severe.
In the event of a foreclosure, a borrower may not be able to qualify for another home loan for seven years without any extenuating circumstances, or five years with extenuating circumstances, under current Fannie Mae guidelines. The wait may be less with short sales. If payments are in arrears in a short sale, buyers may qualify to purchase another home within about two years for a Fannie Mae backed mortgage, or approximately three years for a FHA loan. If payments were current, consumers may qualify for another loan immediately, but it can be difficult to find a lender.
Exceptions and additional considerations apply to the conditions discussed, depending on individual circumstances. For consumers facing these difficult choices, it is advisable to seek professional assistance from anattorney and/or an accountant who can evaluate your specific situation.
Five years after the housing bubble burst, America’s wealthiest families are now losing their homes to foreclosure at a faster rate than the rest of the country — and many of them are doing so voluntarily. Last year over 36,000 homes valued at $1 million or more were foreclosed on, or at least in ... [Read More]
Five years after the housing bubble burst, America’s wealthiest families are now losing their homes to foreclosure at a faster rate than the rest of the country — and many of them are doing so voluntarily.
Last year over 36,000 homes valued at $1 million or more were foreclosed on, or at least in default, according to data compiled by RealtyTrac, which tracks foreclosures. While that’s still a low percentage of all foreclosures, it is growing.
Out of all foreclosure activity, the share of foreclosures on properties valued at $1 million or more has risen by 115% since 2007 while the share of multi-million dollar foreclosures — or homes valued at more than $2 million — jumped by 273%. Meanwhile, the share of foreclosures on mid-range properties valued between $500,000 and $1 million fell by 21%.
Lenders are typically more willing to work with homeowners that have other resources. But with a recovery in the housing market still years away, foreclosure has turned out to be a worthwhile option after all. Saddled with bloated mortgages after a long run up in property values, many high-end homeowners have chosen to pursue a “strategic default.” Even though they can afford the monthly mortgage payments, they still decide to walk away from their home because they owe more on the property than it is worth.
In million-dollar homes, you’re looking at people who can afford it, but they have to make a business decision: Does it make sense to make payments on a mortgage when the home is worth less than they owe. In many cases, it often makes more financial sense to walk away.
This information obtained by the Calif. Asso. of Realtors, courtesy of CNN Money, Feb 23, 2012.
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Total number of units are delinquent (past 30 days late) on their assessments. Pending litigation exists AGAINST the association. One entity (individual, investment group, partnership or corporation) owns more than certain % of the total number of units. Commercial space makes up more than certain % of the total ownership (not total number of units) ... [Read More]
Total number of units are delinquent (past 30 days late) on their assessments.
Pending litigation exists AGAINST the association.
One entity (individual, investment group, partnership or corporation) owns more than certain % of the total number of units.
Commercial space makes up more than certain % of the total ownership (not total number of units) of the association.
No more than certain % of the total number of units can be rentals.
MBA President and CEO David Stevens urges Congress to reinstate the increased conforming loan limits that expired at the end of September; upon expiration, conforming loan limits in many high-cost areas fell from $729,750 to $625,000, which MBA said hampers the ability of many borrowers to obtain FHA- and government-sponsored enterprise-backed mortgages. “The reduction of ... [Read More]
MBA President and CEO David Stevens urges Congress to reinstate the increased conforming loan limits that expired at the end of September; upon expiration, conforming loan limits in many high-cost areas fell from $729,750 to $625,000, which MBA said hampers the ability of many borrowers to obtain FHA- and government-sponsored enterprise-backed mortgages.
“The reduction of the FHA and GSE loan limits formula from 125 percent to 115 percent of median area home price will impact approximately 593 counties in 42 states,” Stevens noted. “Additionally, the reduction of the limits in high-cost areas will affect approximately 75 counties in 13 states. The MBA urges the Senate to act quickly on this extension to prevent further damage to our nation’s housing market.”
The letter went to Senate Majority Leader Harry Reid, D-Nev.; Minority Leader Mitch McConnell, R-Ky.; Senate Appropriations Committee Chairman Daniel Inouye, D-Hawaii; and Committee Ranking Member Thad Cochran, R-Miss.
The Senate is expected to consider the appropriations bill later this week.
Pending home sales: Pending home sales in California increased in February, according to C.A.R.’s Pending Home Sales Index (PHSI)*. The index was 112.1 in February, rising 20.6 percent from January’s revised index of 93.0, based on contracts signed in February. The index was down 1.6 percent from February 2010, when the presence of housing tax ... [Read More]
Pending home sales:
Pending home sales in California increased in February, according to C.A.R.’s Pending Home Sales Index (PHSI)*. The index was 112.1 in February, rising 20.6 percent from January’s revised index of 93.0, based on contracts signed in February. The index was down 1.6 percent from February 2010, when the presence of housing tax credits played a strong role in home sales. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“The increase in pending sales is typical for this time of year, as we usually see a seasonal improvement in the spring,” said C.A.R. President Beth L. Peerce.
Distressed housing market data:
The total share of all distressed property types sold statewide increased in February to 56 percent, up from 54 percent in January and up from 55 percent in February 2010.
Non-distressed sales made up the remaining share at 44 percent in February, down from 46 percent in January and down from 45 percent in February 2010.
Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 33 percent in February, up from 32 percent in December, but was down from 36 percent in February 2010.
The statewide share of short sales increased to 23 percent in February, up from 22 percent in January and up from 19 percent in February 2010.
The median price of homes sold in the state differed dramatically depending on the property type, with non-distressed properties selling for much higher prices than short sales and foreclosures.
The statewide median price of non-distressed properties sold in February was $370,000, $95,000 or 34.5 percent higher than the short sale median price of $275,000 recorded in February, and $170,100 or 85.1 percent higher than the February REO median price of $199,900.
