Florida Still Highest Among Foreclosures

Posted by Duke Rountree on

Florida Still Highest Among Foreclosures

Almost 1 in 4 mortgages are either past due or already in foreclosure during the second quarter, according to Mortgage Bankers Association. We also have the highest inventory of homes in foreclosure currently at 14.4%. The national average delinquency rate was 8.44% in the second quarter and up slightly from the first quarter.

Foreclosures continue to be found in just a few states, with ONLY five states accounting for 52 percent of the foreclosure inventory in second quarter.

1. Florida (14.4%)

2. Nevada (8.2%)

3. New Jersey (8%)

4. Illinois (7%)

5. Maine and New York (5.5%)

 

Source: Realtor Magazine August 23, 2011 http://realtormag.realtor.org/daily-news/2011/08/23/which-state-has-highest-foreclosure-inventory

USDA Still has NO Downpayment Loans

Posted by Duke Rountree on

USDA still has No Down Payment loans.

U.S. department of agriculture has 11.2 Billion, yes billion, earmarked for mortgage loans thanks to funding from federal programs. Called a Section 502 loan, the loan is one of the few zero down products available in the mortgage market.

In years past money would run out during the summer and buyers would have to wait for more money to be available. Most low to middle income Florida residents can qualify for the USDA Loan if they live in rural, small town cities.

The program will change slightly after Oct. 1, when buyers will be required to pay a 0.3 percent premium for mortgage insurance monthly; however, the cost of upfront mortgage insurance will be reduced to 2 percent from its current 3.5 percent.

For more information, visit the USDA’s website or Call/Text me to find a local lender to answer all of your questions.

“Until Next Time”

John Wayne “DUKE” Rountree

 

 

 

What Happens After Foreclosure? How Long Before You Can Qualify For Mortgage?

Posted by Duke Rountree on

Can You Say Tricky Question?

With so many people struggling to find work and therefore, keeping their mortgages current. Foreclosure and Short Sales are at an all time high for our country. The question posed above is not really tricky, but has many variables. The New York Times notes that a past foreclosure will result in the longest wait before you can buy again. Fannie Mae and Freddie Mac properties have a 3 year waiting period after filing foreclosure and 2 year waiting period following a short sale, deed in lieu of foreclosure & discharge or dismissal of bankruptcy. However, there may be certain circumstances, job loss or transfer from job, that may reduce the wait period to qualify for mortgage.

FHA loans also have 3 year waiting period for foreclosure / short sale and 2 years for bankruptcy as well, but note there are plenty of exceptions. Based on New York Time article and example would be, if a borrower was current on payments for year prior to short sale there may be not waiting period and might even qualify for FHA loan immediately.

In conclusion, none of these rules are steadfast or set in stone. With such a large number of people struggling and facing loss of their homes(at the time of this post there are over approximately 1,000,000 properties foreclosed or in the process), poor credit ratings and lack of jobs, lenders will need to take into account circumstances that may have lead to default. I firmly believe these standards will change in years to come. Fannie Mae spokesman says, ” The key is to avoid foreclosure”  and “That is what will help you be eligible for the shorter period.”

“Until Next Time”

 

 

Source: “The Post-Foreclosure Wait,” The New York Times (June 23, 2011)

Ocala, Marion Market Report 1st Quarter 2011

Posted by Duke Rountree on

Ocala homes for sale and they always will be! How is that for a bold prediction.

Now for the meat of this blog post. What is our local housing market doing and which direction are we going?

Well, we are taking a beating in Ocala with the median home price at $75,400, compared to U.S. at $157,933. However this does mean Ocala is probably one of the most affordable cities to live in(BRIGHT SPOT!) 1 year Appreciation is at -18.8% and 3 years sits at -48.2% or a negative housing equity gain of -$70,100. If you’ve owned own your home for  7 years the Housing Equity Gain(?) is -$20,800. IN SHORT, the recent correction in local home prices wiped out most of the 7 years of gained equity.

Why the drastic drops?

Unemployment has lead to tremendous number of foreclosures on the market not just locally but throughout the state. The State of Florida foreclosure rate is around 14% with the National Average around 5%. Marion Counties current unemployment rate hovers around 12.5% compared to 8.8 nationally, both numbers are down slightly from one year ago which is a good sign.

What to expect?

Well I am surely no professional analyst soon to be hired by Fox or one of the alphabet channels, but I do study and know what’s happening locally. My lovely wife, the appraiser, says the market is still being adjusted at approx. -2% per month and our month to month comparisons from 2010 to 2011 reflect the same trend. Many experts think the end of 2011 will be the stabalizing point for the housing market. The best part about real estate is there is always a good market, for someone, whether its buyers or sellers. Do you know, or have you heard about shadow inventories?

For The Full Report: http://www.realtor.org/files/research/localmarket/fl_ocala.pdf

UNTIL NEXT TIME.

What is REO? What Effect Will REO Have on Housing Recovery?

Posted by Duke Rountree on

Real estate owned or REO…is a class of property owned by a lender typically a bank, government agency, or government loan insurer, after an unsuccessful sale at a foreclosure auction[1]. When a lender/ beneficiary finishes the foreclosure process the property can then be listed as an REO property.That is the technical definition, however most people know them as foreclosures. Most of the larger banks and government institutions have REO/Asset Management companies who handle departments that field bids and offers, oversee upkeep, and handle sales. Most REO properties are listed with local MLS(Multiple Listing Services by REALTORS for marketing properties.) Bank properties are typically in need of repair and/or maintenance and the cost of these items is the responsibility of the mortgage servicer(bank or government agency.)

What Effect Will REO Have on Housing Recovery?…The nation’s largest banks and mortgage holders currently own over 872,000 homes which were repossessed through foreclosure or other means. That is nearly 2x the amount foreclosed on in 2007, when the financial crisis began. Unfortunately, that may not be the worst news because the same lenders are ready to repossess over 1,000,000 more homes according to RealtyTrac reports. The huge number of currently banked owned foreclosures and the large pending amount are causing economist to fear a double dip in the real estate market. According to Treep, a leading real estate research firm, will force the lender-owned homes to sell for deep discounts over the next 2 years and at a cost of almost $40 billion in losses. The opinion of REALTORS is that lenders are overwhelmed with the huge inventory which many times the homes are outdated, often overpriced by 10% or more and lenders take to long to accept or reject the offer. The largest problem is it takes over 400 days to foreclose and on average 176 days to sell.

My personal opinion is we are a long way from a housing recovery being done and it will continue to be a buyers market for some time to come. Marion County has some of the best prices in the state. Many can buy a home for less than the cost to rent in the area. Want to learn more or have questions, please call, text, chat or email me.

“Until Next Time”


[1] William Roark (2006), Concise Encyclopedia of Real Estate Business Terms ISBN 0-7890-2341-5

Source; “As Lenders Hold Homes in Foreclosure, Sales Are Hurt, New York Times May 23,2011

“Go Green, Live Rich”

Posted by Duke Rountree on

” Go Green, Live Rich”

by David Bach describes his “50 Simple Ways to Save the Earth & Get Rich Trying.” The book provides many ideas that make you say, “hmmm, that makes sense!” But the idea we  have come to a “tipping or turning point”, I believe is “false!” The sky is not falling and we can all, through education, learn how to live smarter and for less money out of pocket. One of my favorite lines in the book is “GOING GREEN IS ABOUT OUR KIDS, OUR FAMILIES, OUR LIVES.” Whether you believe in the “GREEN” movement, or not. How bad could it be if we could all learn use less, like water! Do you know how many gallons per minute your current shower head uses? You can look on the threaded part of faucet for GPM. Federal regulations recently mandated all faucets by 2.5 GPM or less. A 5 minute shower at 2.5 GPM would use approx. 7-8 gallons of water depending on the water pressure. If you use older shower head(say 4 GPM) you could be using between 20-25 gallons of water per 5 minute shower. Imagine filling up 20 one gallon jugs and placing them in our bathroom, thats a lot of water. We waste 2-3 gallons leaving the water running while brushing our teeth. Aerators can also be installed on all faucets to reduce water usage as well. Can you guess how many gallons of water your toilet uses every time you flush? I’m not going to answer that one(for now), and hope to hear your guesstimates. The worst abuse(my own personal opinion) of water usage is all to “Grow a Greener Lawn or Prettier Plant” and Mr. Bach’s book states up to 7 BILLION, yes 7,000,000,000, gallons of water a year is used on landscape irrigation and accounts for a third of all residential water usage.

In conclusion, water is cheap(many times less than a penny a gallon) and Americans take it for granted, and waste a lot of it. Note: 70 percent of the Earth is covered in water and only 1% is available for human use. We all worry about saving gas because we see the direct result every time we fill up. If you pay for city or community water, by the gallon, it could be possible to use up to 35% less water by making some fairly simple changes in your home. If we all are using less water or any resources, it just makes sense because we can see potential savings. Until next time.