Why Are Foreclosures Dropping?

Posted by Duke Rountree on

Is Foreclosure Crisis Finally Fading?

According to research by CoreLogic foreclosures decreased by 8.4% or 130,000 in 2011. Mark Fleming, chief economist with CoreLogic, says “This is the first time in a year that REO sales (those bank-owned properties) have outpaced completed foreclosures.” There were 103 sales of bank owned homes for every 100 homes in foreclosure inventory in December 2011. Compared to November 2010 when there were 94 REO sales for every 100 in the foreclosure process.

Banks are also doing more loan modifications to prevent the foreclosure process. Banks are also encouraging the use of short sales to try and help reduce the number of foreclosure. Another reason could be banks are stricter with credit conditions and choosier about approving loan applicants, reserving approvals for mostly low-risk borrowers with low chance of default and foreclosure.

Does This Mean the End to High Foreclosure Rates?

In my opinion only time will tell. If you drive around any neighborhood in Ocala, Marion County there are still many many vacant homes unkept and due to hit the market in the future. The banks are taking their time in processing these foreclosures and we should see a steady dose of them to come for any years. There are simply to many homes vacant to say we are even close to seeing a huge drop in foreclosures.

However! Any Drop in Foreclosure Numbers is a GOOD Thing for Owners, Sellers and Neighborhoods.

The negative effects from foreclosures is far reaching and I believe the banks will soon realize it is better to work with existing struggling homeowners to refinance and reduce the principal amount owed, to qualifying homeowners, rather than short sale or foreclose. How does it make sense to remove homeowners, who are willing to stay and pay their mortgage. ONLY, to sell the property for less money to a new buyer. Can we not figure out a better way, for folks who can qualify and afford the home now at a much reduced value. Common sense is gone in today’s business world. I’M just Sayin!

“Until Next time”

 

 

Source: “Homes in Foreclosure Decline by 130,000,” CNNMoney (Feb. 8, 2012)

© Copyright 2012 INFORMATION, INC. Bethesda, MD (301) 215-4688

Your Cell Phone can Save Your Life? Huh?

Posted by Duke Rountree on

It’s an app that could possibly keep you safe or maybe even save your life! What would you do if you were walking alone at night and see someone following you. If you dial 911, it can take up to 6 minutes for the police to track your location because they MUST get permission. That 6 minutes could make a huge difference in the safety of your well being.

StreetSafe was invented eliminate the time it takes for 911 services to respond. it uses GPS tracking and relays your position to the authorities, and transmits your identification information to the authorities age, physical description, etc.

How Does it work?

If you slide the red button, StreetSafe silently contacts your local 911. If your in danger, keep your finger on the red alarm button and tuck it in your pocket, if you slide the green button, your immediately connected to a call center staffed by trained safety advisors and off-duty police officers. This “green” button feature sets them apart because it allows users to talk with experts on safety tips before things get too serious.

What About Privacy?

Creator Tom Rissman of StreetSafe says the app is not a tracking device others can use against you. “Our information is kept solely to us and shared with the police and ONLY the police” in case of emergency, he said.

Cost?

Either $19.99 per month or save a few bucks and go for the one year subscription for $149.99 and includes the security service. visit www.streetsafe.com for more details.

“Until Next Time”

1 Million Homeowners May Get Mortgage Write-Downs

Posted by Duke Rountree on

Housing and Urban Development Secretary says about 1 million homeowners would get write-downs in the size of their mortgages under a proposed deal with banks over shady foreclosure practices and it could be reached in a few weeks. Using Donovan’s estimate, the settlement could provide a reduction of about $20k for each of the 1 million borrowers.

Prior efforts to jump-start the housing recovery have fallen short of how they were promoted. “Principal reduction can have a substantial impact on the housing market nationally,” Donovan said.

National decline in values hovers around 30% with Ocala, Marion County closer to 50% reduction in values since the boom times of 2004. Reports also show about 22 percent of U.S. homes have negative equity totaling about $750 billion, according to Core Logic.

Note: Any settlement would not apply to mortgages owned by Fannie Mae or Freddie Mac, which together  own or guarantee most of the U.S. mortgage  market. The reason is the cost to the taxpayers compared to other options. The White House will also lay out plans to convert foreclosure into rentals and start “Project Rebuild”, part of Obama’s American Jobs Act that aims to have construction workers rehab vacant properties. The estimated cost of $15 billion would creat 200,00 jobs and used to renovate thousands of vacant homes and properties nationwide.

Copyright © 2012 washingtonpost.com, Margaret Chadbourn; Aruna Viswanatha

In my opinion this will do little to help the housing arket nationwide but especially here in Marion County. The focus should be on banks and lending institutions to loosen lending practices. I do not think everyone who applies should get a mortgage, as has happened in the past(fog the mirror loans!!LOL) However, the challenges many good homebuyers face with banks is the largest problem. Credit score standards and income are to strict and oversight is needed to make loans more available to good borrowers.

“Until Next Time”

 

Are You Using Online Back-Up or Cloud Computing, Yet?

Posted by Duke Rountree on

If you have not checked out Google Apps, Apples iCloud or Microsofts Cloud it may be time to learn more?

First, What is Cloud Computing?

Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a metered service over a network (typically the Internet). This is a Wikipedia answer and a little confusing. It is simply using services, instead of programs(products) installed on your computer for your files, photos, videos, music and anything else you want to store.

Second, Why use Cloud Computing?

It is less expensive than on-line back up companies such as www.mozy.com or www.carbonite.com, which I have used both and they provide good services. These services range from $60 per year to upwards of couple hundred $$ and they only back up your data once a day. With “the Google cloud” it saves in real time as you work and integrates all of your tools(email, docs, pictures, calender, etc.) in one simple place. Plus you can access it from anywhere with an internet connection.

Third, What about Cost?

I recently upgraded my google account to 20GB od storage and it cost me a whooping $5.00. I have now saved 10,000 files, 500 songs, and thousands of pictures to my account. FOR ONLY $5.00

I have been using the free google apps applications for some time and recently decided to switch to google business apps. What does this mean and why does it matter? With Google Business Apps my yearly fee for all services is $50.00 per year and there is no need for any IT personnel. And, when I travel or visit family, I can share or access anything I need, all the time!

It can simplify your life in the computer world!

If I can help or answer any questions, please feel free to send me a text, email, or find me on the web.

“Until Next Time”

 

What are “The Code of Ethics” for REALTORS?

Posted by Duke Rountree on

The NATIONAL ASSOCIATION OF REALTORS Code of Ethics:

What Does it Mean for Consumers?

 

How does the Code of Ethics affect everyday real estate practices? 

If a REALTOR® represents you, whether you are buying or selling a home, you can count on that REALTOR® to:

1. Be honest with all parties in the transaction – not just with you, as his or her client, but also with the other real estate practitioner and his or her clients.
For example, if REALTORS® represent a buyer with a spotty credit history, they can’t be dishonest with sellers about this fact. At the same time, REALTORS® can help their buyer clients collect and assemble information, such as credit reports and audited tax returns, to demonstrate that the buyer has addressed the problem and improved their situation.

2. Put your interests ahead of his or her own, at all times. 
A REALTOR® makes every effort to understand the housing needs of his or her client, thoroughly researches available inventory, and shares all relevant information with the buyer so that he or she can make an informed decision. This service is provided regardless of the compensation available.

3. Disclose all pertinent facts regarding the property and the transaction to both buyer and seller.
If a REALTOR® believes information provided by a seller is questionable, the REALTOR® is obligated to investigate. REALTORS®should recommend that buyers consult their own experts, such as home inspectors, to address concerns. For example, if a home seller asks his or her REALTOR® to conceal the fact that the roof leaks, the REALTOR® cannot comply; if the seller insists, the REALTOR®should end the business relationship with that seller. 

4. Be truthful in all communications with the public.
When REALTORS® distribute newsletters, create Web sites, or place advertisements, they must be careful not to represent other real estate professionals’ work product as their own. If recently sold or listed properties in the community are publicized, it must be clear whether the REALTOR® was actually involved in the transaction, or whether that data came from the local multiple listing service or other source. This ensures that the public understands the REALTOR®’s experience and can make an informed decision when choosing real estate representation.

As a REALTOR I live by this code in every day of my career and my life. Our morals and ethics are all we have to assure we provide the education and services our buyers and sellers deserve. If you would like the full version of the “Code of Ethics” please visit http://www.realtor.org/realtororg.nsf/files/R_COE-Pledge-of-Performance.pdf/$FILE/R_COE-Pledge-of-Performance.pdf

 

“Until Next Time”

Florida Housing Market Bouncing Back….

Posted by Duke Rountree on

Florida Housing Market Bouncing Back….

Florida’s real estate market is entering 2012 on an upward trend, according to three leading U.S. economists. Florida Realtors Chief Economist Dr. John Tuccillo says, “Our sate is in a mini-recovery” and “sales are trending up, listing inventories have fallen, the supply of lender-related properties has stabalized, and we are seeing multiple offers on home in some local markets.”

In Fact…

Dr. Tuccillo says homes in Florida may be undervalued. “That may sound like a drastic statement,” he said. ” But a buyer who plans to own the home for 5-7 years can get some great bargains today.” Interesting statistic from South Florida I heard yesterday said at one point Miami had 9 years worth of inventory, now with decreased number of homes on the market and high buyer activity has dropped that number to less than one year. The South Florida economy is growing  based on relationships with Latin America and the Carribbean. Dr. Lawrence Yun says, “Don’t be surprised to see a gain in home prices in the Miami and Naples markets in the next 18 months.””From there, the recovery is likely to roll northward to Central Florida and then North Florida.”International buyers are driving the market in South Florida and other areas of the state.”

What about Ocala….

We are seeing positive signs locally including a drop in unemployment and reduced housing inventory. Banks are slowly releasing foreclosed/REO homes on the market and this is creating a negotiating competition between buyers. Many of the more inexpensive homes are only on the market for 1-2 weeks. We are still facing challenges getting buyers qualified for financing, however with the USDA loan programs and FHA there is great opportunity. Another key factor is the high price for rentals and availability. In todays market you can buy a home for the same or lower than you can rent. The benefits of buying to renting can create tax benefits, provide stability because there is no landlord who can ever raise your rent or sell the home without your approval.

If you are interested in receiving a monthly “Market Trend Report” please call, text, or email me anytime.

“Until Next Time”

Mortgage Applications Soar / December 2011

Posted by Duke Rountree on

12.8 % Increase in Mortgage Applications

There is large jump for 2 reasons. The first is consumers are taking advantage of historically low interest rates hovering in the 4% range. Second is the affordability of residential homes in Ocala, Belleview, Dunnellon, Salt Spring, Fort McCoy, Sparr, Anthony, Citra and several other areas.  Mortgage application can be a future gauge of home buying reported by Mortgage Bankers Association report for the week ending Dec. 2. Applications jumped 8. % from a week earlier while refinance soared to 15.3 %.

The reports  states 85.5 % were for fixed-rate 30 year loans.

“Coming out of the Thanksgiving holiday, applications increased significantly as mortgage rates dropped to their lowest levels in about two months,” Michael Fratantoni, MBA vice president of research and economics, said in a statement. “In particular, refinance applications increased sharply, with some lenders seeing refinance volume double. Despite this surge, aggregate refinance activity is still below levels reported two weeks ago. Some lenders indicated they are beginning to see an increase in HARP loans, but that increase is still a small portion of the move this week.”

Source: “Mortgage Applications Jump 12.8% as Refinancing Volume Soars,” HousingWire (Dec. 7, 2011)

“Until Next Time”

Ocala, Florida Area Local Market Report 2011 – 3rd Quarter

Posted by Duke Rountree on

TODAYS MARKET…. Median Price and Existing home Sales

All real estate is local and every market is unique. Remember that when you hear reports from the major new networks. We are seeing some positive signs in the Ocala / Marion County Market with the Median Home Price now at $80,900 with 1-year Appreciation at -1.6% and a 3 year Appreciation of a whooping -40.1%. This relatively recent correction in local home prices wiped out most of the equity gained over the last 7 years. State Existing Home Sales(2011 Q3 vs 2010 Q3) is at +10.6% for Florida and Nationally 17%.

FORECLOSURE info by type…

The market share of Foreclosures by type is 88.3% are Prime Loans, 5.1% are Sub-Prime Loans and 6.6% are Alt-A Loans. There has been a decline of both 60 and 90 day delinquency rates over the most recent 6-month period suggests a decline in local foreclosure rates in the near future.

AFFORDABILITY….

Based on Ratio of Local Mortgage Servicing Cost to Income, Ocala has typically been more affordable than most markets. For example the Monthly Mortgage Payment to Income for Ocala is 6.6% compared to 15.5% in the United States for 2010 and 5.7% locally for 2011 and 13.9% nationally with the historical average at 11.3% locally and 22% nationally. The price to income ratio has fallen as well and is below the historical average.

So what does this all mean?

Well it could mean we are close to reaching the bottom of the housing value slide. But it will take a strong economy and more local jobs for the housing market to continue gaining traction. There is less inventory on the market with an increase in buyer activity, compared to the same time last year. We are a long way from seeing appreciation in our homes but hopefully close to reaching the bottom and no more depreciation of value.

“Until Next Time”

3 Keys to Buying in Ocala Housing Market

Posted by Duke Rountree on

3 Keys to Buying in Ocala’s Housing Market

Buying a new or existing home can be a challenge for 1st time homebuyers and even for the experienced homebuyer. However, if you take a few steps and learn the process it can help ease some of the stresses that go along with your home purchase.

NUMBER 1 – REALTOR

Find a good, NO Great REALTOR! First, ask for a referral from a friend or family member. Word of mouth is the best way to find a REALTOR in your area to assist with the process. It can be simple(internet) or difficult(print advertising) to sit at your home, office or restaurant and search for hours looking at property listings. A local REALTOR will have the insight, knowledge and tools to make searching easier.

Example: How can 2 similar homes, one located in Silver Springs Shores(Under $100k) and another in the Magnolia Pointe(Under $200k) have such different price. It could be features, supply or most importantly LOCATION.

 NUMBER 2 – LOCATION

This is the first thing they teach you in real estate school. It determines everything! You can have the nicest house in all of Central Florida, but if the location is bad it will have a huge negative effect including lower price and overall salability of the property. Are your interested in certain schools, being close to work or recreation. Many REALTOR programs can be set-up to do auto searches for particular areas, price ranges and any other features you desire.

NUMBER 3 – LENDER

Interest rates are at an all time low with many 30 year mortgages hovering around 4% for those with great credit history. Here are a few loan products to chose from; USDA, Rural loan allows for up to 102% of appraised value to be financed; FHA is 3.5% Down with approx. another 3% in closing cost which can be paid by seller; VA is 0% down for active or retired military with funding fee paid at closing. There are many more options and loan products and finding a GREAT Mortgage Broker with years of experience can save you lots of time and money.

IN CONCLUSION

Finding a team of professionals to help in buying your next home, and finding them early can save you TIME and MONEY! If you need a GREAT REALTOR, please contact me at 352-572-1739 or duke@ocalarealtyonline.com. Looking for a GREAT LENDER? Contact me too.

 

“Until Next Time”