By: Glenn Kelman

Posted: Monday, August 16th, 2010, 4:58 pm

Redfin just published MLS data from seven counties across the U.S. on the likelihood that a listing activated in 2009 sold by August of 2010. It turns out that the listing agent got a sale 47% of the time, a number that seemed surprisingly low to us, particularly since staging, photographing and marketing costs can add up…

via BloodhoundBlog.com | Batting Averages for Listing Agents | National real estate marketing and technology blog | Realtors and real estate, mortgage and investment news.

If you’re unemployed and can no longer afford your mortgage, a new Making Home Affordable loan modification program might offer some relief.

The new Unemployed Program (UP) starts August 1, 2010, and it requires lenders to reduce or suspend payments for at least three months for eligible borrowers. It is at the lender’s discretion to extend the forbearance, and the program ends once the borrower gets a new job.

According to Supplemental Directive 10-04, mortgage servicers are required to offer an Unemployment Program forbearance plan to a borrower who meets the following criteria:

1. The mortgage loan is secured by a one- to four-unit property, one unit of which is the borrower’s principal residence.

2. The mortgage loan is a first-lien mortgage originated on or before January 1, 2009.

3. The current unpaid principal balance of the mortgage loan is equal to or less than $729,750 for a single-family property. Higher loan amounts apply to two- to four-unit dwellings.

4. The mortgage is delinquent or default is reasonably foreseeable.

5. The mortgage loan has not been previously modified under the Home Affordable Modification Program (HAMP) and the borrower has not previously received an UP forbearance period.

6. The borrower must make a request before the first mortgage lien is seriously delinquent (before three monthly payments are due and unpaid).

7. The request for the Unemployment Program may be made by phone, mail, or email. Loan servicers must document the date of the request in the servicing file and confirm receipt of the request with the borrower via email or return mail within 10 business days.

8. The borrower must be unemployed at the date of the request and can document that he or she will receive unemployment benefits in the month of the forbearance period effective date even if unemployment benefits will expire before the end of the forbearance period.

via Finance Blog – Real Estate: Unemployed? The New HAMP Loan Modification Program Might Help You Keep Your House.

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Finance experts partner with credit reporting powerhouse to create online consumer finance resource

Atlanta, GA (Vocus)

Equifax announced the launch of the Equifax Personal Finance Blog earlier this week. The Equifax blog aims to inform and educate consumers about personal finance topics and features weekly insights and practical information from top consumer finance experts— Ilyce Glink (Real Estate), Daniel Solin (Investment), Eva Rosenberg (Tax) and Linda Rey (Insurance), as well as a team of Equifax subject matter experts covering select credit-related topics.

The Equifax Personal Finance Blog marks the company’s latest Web 2.0 effort to further engage with consumers and transform its website, www.equifax.com, into a trusted consumer resource and destination for topical personal finance information. Equifax also boasts an iPhone app, a Facebook Fan Page, and a new Twitter profile (@EquifaxPFB).

“Now, more than ever, consumers are searching for information and answers about their credit and finances,” says Trey Loughran, President, Equifax Personal Information Solutions. “We created the Equifax Personal Finance Blog as a destination for consumers to find sensible, straightforward information and insights to help them make informed decisions about their day-to-day finances.”

Every day on the blog, consumers will find new posts and helpful answers on topics like:

* 4 Myths About Your Credit History

* Tax Talk Before Marriage

* To Convert to Roth IRA or Not: That is the Question

* 7 Ways to Save on Auto Insurance

* No More Home Buyer Tax Credits: Is Now a Good Time to Buy a Home?

“Credit touches almost every part of our financial lives and can be confusing, explains award-winning real estate writer and author Ilyce Glink. “The consumer finance experts who write for the Equifax Personal Finance Blog will combine our real-world experience and expertise to create original, easy-to-digest content about the five pillars of personal finance—credit, tax, insurance, investment/retirement, and real estate—that breaks through the misinformation in the market to help consumers make smarter decisions with their money.”

via Equifax Launches New Personal Finance Blog.

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By Christopher L. Gardner, J.D. Print Article

July 16, 2010

The screaming and cursing you hear in unit 404 isn’t coming from Mr. Armbrister’s television—Armbrister has just learned that another potential sale of his condominium unit fell through due to the buyer’s inability to obtain financing. In this case, the buyer wanted to purchase Armbrister’s condo unit with an FHA loan—Armbrister’s homeowners association, however, had neglected to obtain FHA approval.

FHA loans, which are mortgages insured by the Federal Housing Administration, accounted for a mere 1.7% of new mortgages as recently as 2006. Today, almost half of all new mortgages are FHA—yet there are still many misconceptions associated with their use and their benefits.

Due to the elimination of ‘spot approval’ in February 2010, an entire condominium development must now apply to the Department of Housing and Urban Development (HUD) and be granted FHA approval before someone can purchase or refinance a unit using an FHA loan. Before its elimination, spot approval allowed an FHA buyer or refinancer to conduct a transaction in a specific condominium unit located in an unapproved complex.

Management companies and homeowners associations constantly ask why their condominium developments should seek FHA approval. A recent survey of more than 12,000 home buyers conducted by the Home Buying Institute indicated that the vast majority of respondents (87%) planned to use an FHA loan for their purchase. Given the prevalence of FHA loans in today’s housing market, the simple answer is that unit sellers in an association without FHA approval are severely limiting the pool of potential buyers. Thanks to the law of supply and demand, fewer possible buyers mean units will often sit on the market for longer periods and sell for lower prices. Even non-sellers are affected as lower sales prices for neighboring units often result in lower appraised values for all units.

Why have we seen such a surge in FHA borrowing? First, the general unwillingness of today’s lenders to extend credit and an almost complete withdrawal of private capital from the home mortgage sector forced HUD and FHA to take action. They ultimately crafted policies to increase FHA availability in order to help stabilize the housing market. FHA loans encourage lenders to lend, assuring them that they will be paid back by the federal government in case of default.

Second, as many residential real estate agents know all too well, the sudden and inevitable collapse of the high-risk subprime mortgage industry left a tremendous void in the marketplace for those buyers that did not have the 20% downpayment typically required when obtaining a conventional loan. This void is nicely filled by FHA loans, which require as low as a 3.5% down payment.

Finally, the significant increase in the maximum FHA loan limits from $362,790 to $793,750, means that an FHA loan is now relevant and appropriate for a much greater percentage of home purchases and refinances than ever before.

In addition to the benefits discussed above, there are other features inherent to FHA loans that help explain their newfound popularity. Credit requirements are less stringent than is the case with conventional loans. Also, FHA loans are fully assumable, meaning that a seller with a current FHA loan can offer the financing and terms to a buyer during resale. Assumability will be a great benefit to a future seller when interest rates turn higher.

Despite FHA’s easier down payment and credit qualifying guidelines, associations should not fear that FHA loans are risky and real estate agents should feel comfortable suggesting them as an option to their clients. “Full documentation” requirements ensure borrowers are fully vetted for their ability to afford the property in question. With the required income and asset reporting demanded by FHA, foreclosure rates have been historically lower than for those with any other type of loan—a fact that should give homeowners associations peace of mind.

Associations and management companies should further investigate and consider all of the benefits that FHA loans provide. Real estate agents should be prepared to help their clients navigate the process, as it will only help increase sales in a tricky market.

via Associations Can No Longer Ignore FHA Approval | RISMedia.

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As the existing home buyer tax credit winds down (purchases must be under contract by April 30th and closed by June 30, 2010), many are wondering if there will be another extension.

As of now, the only extension has been granted to certain members of the military, the foreign service and the intelligence community.

For qualified service members who are ordered on a period of official extended duty, the tax credit dates are extended for one year. The purchase contract must be dated by April 30, 2011 and closed by June 30, 2011.

Also, this extension applies to a service member who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of official extended duty outside the U.S.

A “Qualified Service Member” is a member of the Armed Forces of the U.S. military, a member of the U.S. Foreign Service or a member of the intelligence community.

via Home Buyer Tax Credit Extension for Some Military Members, Foreign Service Members and Intelligence Community – The Trump Blog.

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Image by Lagravier Real Estate via Flickr

Prices bottom, mortgage rates increase, and foreclosures move upstream

By LUKE MULLINS

Posted: December 21, 2009

Is 2010 the year to buy a house? It certainly looks that way: After a steep run-up in prices during the first half of the decade, home values have plummeted back to 2003 levels. Fixed mortgage rates are sitting near record lows. And the foreclosure epidemic

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