Home sales to rise?
According to projections from residential mortgage insurance and credit enhancement product provider The PMI Group (PMI), national homes sales are expected to rise 10% year-over-year basis during the Q409, but the sharp drop in sales earlier in 2009 will keep yearly sales on par with ‘08 levels. The report projects that the oversupply of housing inventory will drop median housing prices 12.5% by the end of 2009, but that a boost in the second half of 2010 not only stabilize prices but increase sales of existing homes by 9.4% and new home sales by 21.6%. PMI anticipates that Federal Reserve policies will remain constant and short-term interest rates should remain close to current levels, although long-term rates will “edge upward” next year. According to the report, “ultimately, both long- and short-term rates will rise substantially once the Fed begins to tighten in earnest – with the yield curve beginning to flatten at that time.” The report also projects a 33% increase over last year in mortgage originations by the end of 2009. As purchase mortgages decrease 6.1%, there will be a projected increase in the share refinance mortgages to 66% of all mortgages originated in the year, but that will shift in 2010. PMI projects that origination will decline by 22%, but purchase activity will take a 15% greater share of the market, and the refinance share will drop to 50%.
FDIC details mortgage payment reductions
Yesterday I mentioned an “urging” by the Federal Deposit Insurance Corporation (FDIC) directed at its loss-share partner institutions to consider temporary mortgage payment reductions for unemployed borrowers. A spokesman for the FDIC offered further clarification: “Servicers may provide the borrower with at least six months of payment relief…The term [of] forbearance may vary based on the borrower’s circumstance.” The program reaches out to both the unemployed and the underemployed, and applies to borrowers who suffer a reduction in household income due to decreased hours, loss of job, or a qualifying pay cut. Acquirers of failed insured institutions who agree to a loss-share arrangement must abide by the FDIC Mortgage Loan Modification program for any assets purchased from the failed bank.
The program provides loan modifications by reducing the borrower’s monthly housing debt to income ration (DTI ratio) to no more than 31%. “The FDIC has a loss share monitoring program responsible for surveillance and compliance monitoring of the assets covered in the shared-loss agreement,” the spokesperson said. “In this oversight capacity the FDIC will review loss share servicers forbearance policies and ensure compliance with the shared-loss agreement.”
Modified mortgages still defaulting
Tens of thousands of homeowners who were hoping for lower payments are discovering that lenders roll late fees, back taxes or other costs into the principal, sometimes turning a difficult payment into an impossible one. That’s one reason many reworked mortgages are sliding back into default. Monthly payments, on loans modified from Jan. 1, 2008, through March 31, 2009, increased on 27% and were left unchanged on an additional 27.5% according to a recent report by banking regulators. Many modified mortgages fall delinquent — 25% to 40%, depending on the type of mortgage. It’s too early to know if this pattern will continue under the Obama administration’s $75 billion initiative to get lenders to reduce monthly payments for homeowners struggling to make their mortgages.
A total of 360,165 mortgage modifications are now in a three-month trial period under the government’s plan announced in March. But the initiative focuses on reducing interest rates rather than cutting principal. “Payments have [either] gone up [or] the payment relief can last for the first few years and then go up (again),” says Alan White, assistant professor of law at the Valparaiso University School of Law in Valparaiso, Ind.
Real Estate and Homes - Pocono Communities
The Poconos of North East Pennsylvania present a fantastic opportunity for home buyers. Whether you’re real estate needs are for full time residence or for a vacation home the area delivers.
The Pocono Mountains bring some of the most sought after recreational and amenity based living in the east. These Communities offer plenty of activities to keep even the most energetic of people busy. These activities include events such as: boating, skiing, indoor/outdoor pools, lakes, beaches and more. Most have gated entrances and security patrols to ensure a very safe environment for family living and family fun. Of course more traditional living situations are abundant as well if communities aren’t your thing. Pocono real estate opportunities are at an all time high.
Being that a large part of the Pocono home market is secondary and vacation homes it creates a very strong market with a lot of variety and choices, which is both good for REALTORS and consumers alike. Since second homes are more for vacation and fun rather then a necessity REALTORS get to enjoy the higher resale rate of the second home market. And consumer benefit by having a great deal of variety of homes to choose from which also helps keep the average market price down.
With the natural beauty, a rural feel and over 150 lakes our area is the first choice for people from our adjoining states for a vacation get away. Our friends from New York and New Jersey and others states have come to appreciate the lower than average market price on homes in the Pocono area of Pennsylvania. With commutes of only 1 to 3 hours the area offers a great place to escape from the hustle and bustle of city life.
As you can see The region of Pennsylvania offers tremendous variety in real estate homes starting at around $100,000 for the cozy A-frame cabin to upwards of $1,000,000 for the fabulous ultra modern lake front. The Poconos have something for everyone, quality day to day living, a fantastic second home market with many recreational and amenity based lake communities and so many area attractions. So if you ever feel the need to get away or just need a change of scenery, be sure to visit the Poconos.
Pocono Real Estate http://www.poconohomesource.com
Hideout Real Estate http://www.poconohomesource.com/hideout.html
Lake Wallenpaupack Real Estate http://www.poconohomesource.com/lakewallenpaupack.html
Article Source: http://EzineArticles.com/?expert=David_Kovaleski
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Cool Online & Mobile Real Estate Tools
If you just can’t get enough of cool online applications then you will love today’s selection. Get ready to bookmark or save these to your favorite list because they are as useful as they are trendy….not to mention each can save you time or money while you are off building your short sale empire.
Google Foreclosure Finder
Use it anytime, anywhere plus it’s free and oh so simple to use. Just go to the main Google maps search engine page (www.Google.com/maps) then type in your desired zip code or city into the search bar. Use the drop down to indicate the search is for “real estate” then click on “foreclosure” to filter the results. Not only will you have a list of foreclosures, photographs and a map to each property but it’s possible to take a virtual tour of the neighborhood for many areas.
Zillow iPhone Real Estate Search App
Zillow is on the go with this new iPhone real estate search that allows users to tap into the Zillow.com database of nearly 90 million listings throughout the nation. Combine with a GPS enabled iPhone, the Zillow data makes easy work of finding previously elusive information like tax data, former sales and nearby listings while on the go. Better yet, get notified when new results come in, filter by bedrooms/bath etc or email it all to a friend. Try it for yourself by visiting http://www.zillow.com/iphone/.
Mint.com Money Minder
Voted a Top Pick by Money Magazine, Kiplingers, and other leading journals. Finance on the Go. Manage your money minus the headache with the help of mint.com. Each and every day your transactions and balance is automatically downloaded and updated while creating graphs, balance, net worth and much more. It’s a great way to keep track of all those business related expenditures.
Obopay
Pay instantly by cell phone without the need to worry about lost wallets, credit cards or other inconveniences. Send or receive funds by signing up at obopay.com. Keep a contract on hand and put an earnest money deposit straight into their hands to leave a lasting impression!
What’s the Walk Score?
Find out how walkable a property is before buying by visiting www.walkscore.com and typing in any address. It will instantly show you what is nearby and provide a walkable rating…great for going green and highlighting amenities.
A Simple Measure
Sick and tired of running to the hardware store only to realize you forgot a measurement? Tired or re-measuring the same old window only to misplace the scrap of paper? Leave it all behind thanks to A Simple Measure (www.asimplemeasure.com). Measure once and store it forever. Access the information anytime via cell or online. Includes more than mere measurements, faucets, fixtures and much more will all be available anytime, anywhere.
