Archive for the 'Mortgage Stuff' Category
Twin Cities Buyers Seem to Have Borrowed Some More Time
October 30th, 2009 Categories: Mortgage Stuff, National Real Estate News, Real Estate News, Twin Cities Home Buyers, Twin Cities Real Estate Economy
Set to expire at end of November, plan will remain until end of April
My friend in the mortgage biz at Prime Mortgage sent me the latest news on the first-time home buyer credit:
Senators agreed Wednesday to extend a popular tax credit for first-time home buyers and to offer a reduced credit to some repeat buyers.
The tax credit provides up to $8,000 to first-time home buyers but is set to expire at the end of November.
Senators agreed to extend the existing tax credit for first-time home buyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.
The tax credits would be available to home buyers who sign purchase agreements by the end of April. They would have until the end of June to close on their new homes, said a congressional aide, who spoke on condition of anonymity because he was not authorized to publicly discuss the deal.
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Minneapolis Area Real Estate Trends for 2009 Revealed by Mark Allen, CEO of MAAR
January 13th, 2009 Categories: Mortgage Stuff, Real Estate News, Twin Cities Home Buyers, Twin Cities Real Estate Economy, Twin City Sellers
The market is what you make of it. There are always opportunities in every economic situation. History demonstrates that real wealth is made in the worst of times.
I read that somewhere and copied it. I keep it in my desk drawer whenever I start feeling down about the recent real estate market.
Yesterday was a learning day for me. I was fortunate enough to hear Mark Allen, CEO of the Minneapolis Area Association of Realtors, give us Realtors his take on the market for 2009 and beyond. The following are a few key points made by Mark. Read the rest of this entry »
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Move Over, Folwell (and a Few Other Neighborhoods in North Minneapolis), Hawthorne’s Got a New Plan!
January 11th, 2009 Categories: Minneapolis Home Buyers and Sellers, Mortgage Stuff, North Minneapolis, Real Estate News, Twin Cities Home Buyers
How many times do we hear of blighted neighborhoods trying to revitalize themselves only to fall back into the “we tried this and it didn’t work” mentality?
We may hear it again from some naysayers, but this time there is a VERY ATTRACTIVE incentive program that should raise a few eyebrows! The Hawthorne Neighborhood in North Minneapolis has just voted on the creation of a new program to assist home buyers with a purchase of a home in Hawthorne. It’s called the “Hawthorne Advantage”.
Here are the details without going into too much detail:
- You must live in the home after purchase (owner-occupied).
- 3% of the purchase price of the home will be granted to you and subtracted off the price of the home on the HUD-1 statement at the closing.
- An extra $1,000 will be granted to you if you purchase a previously foreclosed property.
What’s the downside? You will have to pay back the loan if you do not stay in the home for a minimum of five years to begin to “pay back” the loan up to ten years. After the ten years, the lien is removed and the loan is 100% forgiven. The idea is that you will want to stay and commit to the betterment of this community.
This program is brand spankin’ new, so it is not up on the Hawthorne website yet. Now is the time to start buying those diamonds in the rough in Hawthorne. Interest rates are at record lows, you can use grant money from the City of Minneapolis and, now, the Hawthorne Neighborhood’s Hawthorne Advantage.
Take advantage of it!
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Long Story Short: Short Sales Take a Long Time!
January 3rd, 2009 Categories: Mortgage Stuff, My Listings, Real Estate News, Twin Cities Real Estate Economy
Short sales are commonplace these days and they are a force to be reckoned with. To be honest, I don’t care to delve into these transactions, but every once in a while it is inevitable.
Currently, I have a beautiful “short sale” listing in Minnetonka that clearly states in the agent remarks of the MLS there is a third party negotiator and to call my co-lister for more information. There are a team of professionals who assist me in working with short sales as well as other tedious and difficult transactions.
Here are the nuts and bolts of a short sale:
- A short sale means that you will sell your home for less than your mortgage amount.
- Sometimes you can work out payments with your mortgage company or bank, sometimes not.
- Sometimes your mortgage lender will not agree to even process a short sale.
- Short sales will have a negative effect on your credit score, however, less destructive than a foreclosure.
- There are third party negotiators, in some cases, who will take over the administrative portion of the sale, such as, ordering a broker price opinion (BPO) and coordinating the purchase agreements that come in for the property. This is coordinated through your Realtor.
- The process can be very long and it is important to let the sellers and the buyers know that they had better have some patience if they want to keep the transaction together.
- Get a good Realtor who has a strong team behind her to make the transaction as smooth as possible.
Even though short sales are an ugly part of life, the process can be made a bit more palatable when you have the people working for you and keeping you abreast of what is happening every step of the way. We know what we’re doing and are here to help!
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Just a Little Christmas Present From Todd Bracher at Bell Mortgage, a “Best of 2008″ Inductee!
December 19th, 2008 Categories: Cool Guys, Mortgage Stuff, Real Estate News, Twin Cities Home Buyers
We’ve all just about have had it with the predatory lending fiasco. What with the TJ Waconia scandal, BC lending, etc. it’s time to focus on what is right in the world of home buying.
Yes, it’s going to be tougher to buy a home!
You’ll have to work a little harder and save a little more and maybe go to Mom and/or Dad for a loan. If you are ready to buy a home and have done the right things to get yourself to this point, read on!
Here’s a message from Todd Bracher, a top-notch mortgage lender at Bell Mortgage that I have recommended to my first time home buyers. He is reliable and trustworthy…a great combination! he also is on my
“We have had a incredible week in the markets with rates reaching 4.5% earlier in the week. We have come up off of those lows but remain just under 5% currently.
The market is perfect for those first time home buyers. Bell Mortgage has always had a purchases come first mantra. We will never lose sight of our bread and butter Realtor clients.
When the refinances disappear again, so will the brokers that concentrated only on the feeding frenzy that low rates can create in our world.
I will be working through the Holiday Season so if you are in need of any mortgage related help please do not hesitate to call.
Have a HAPPY HOLIDAY SEASON!!!
Todd C. Bracher
Mortgage Banker-Bell Mortgage Trusted Since 1880
Office: 952-591-1880
Cell: 612-221-4677
Fax: 952-591-9060
www.toddbracher.com<http://www.toddbracher.com/>”
Thank you, Todd, for all you’ve done for me and my clients this year! You are on my “Best Of 2008″ list. You rock!
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Thinking of Buying a Home in January? Take a Look at the New FHA Rules That Must Be Met
December 16th, 2008 Categories: Minneapolis Home Buyers and Sellers, Mortgage Stuff, Real Estate News, Twin Cities Home Buyers
First time home buyers, and any home buyer for that matter who chooses to take out an FHA loan, will have to save up a little more cash.
Beginning January 1, 2009 the Housing and Economic Recovery Act of 2008 changed the National Housing Act to read as follows: Read the rest of this entry »
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Twin Cities Area Real Estate Pending Sales 40% Above 2007
October 10th, 2008 Categories: Minneapolis Current Housing Statistics, Minneapolis Home Buyers and Sellers, Mortgage Stuff, Real Estate News, St. Paul Current Housing Statistics, Twin Cities Home Buyers, Twin Cities Real Estate Economy, Twin City Sellers
Pending sales skyrocket over 40 percent as prices decline
Here’s the latest from the Minneapolis Area Association of Realtors just out today:
Minneapolis, Minnesota (October 10, 2008) – Buyers flocked to the Twin Cities housing market in September to take advantage of attractive home prices and a sunsetting federal loan program, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.
There were 4,036 pending sales in September, which represented a whopping 42.2 percent increase over September 2007’s mark of 2,839. Closed sales, too, were up dramatically—34.9 percent higher for the same time period comparison. The last time there was a year-over-year pending sales increase even close to this large was in March of 1998 when the increase over March of 1997 was 38.6 percent.
“There really are some incredible buying opportunities out there and this is the surest sign yet,” said Kevin Knudsen, MAAR President. “But we also need to keep in mind that September of last year was extremely slow, which makes these figures pop a little more.”
Also adding to the influx of September buyers was “last call” activity before the October 1 dissolution of the FHA-sponsored seller-funded downpayment assistance program, which was the last of a dying breed of zero-down loan programs remaining on the market.
A hearty 41.6 percent of September’s pending sales were lender-mediated foreclosures and short sales, up from 17.5 percent in September 2007. The increased market share of these bargain-priced properties led to further declines in home prices. The overall September median sales price of $189,900 fell from last year by 15.6 percent. Lender-mediated homes posted a median sales price of $146,000, a decrease of 11.5 percent from last year. Traditional properties had a September median sales price of $212,500, a decrease of 8.6 percent.
Due to the decline in home prices and another downtick in mortgage rates, the October Housing Affordability Index jettisoned upward from last month to 159, which is 21.4 percent higher than this time last year, and back up at extremely healthy levels following a few years of unsustainably low affordability. While challenging for sellers, this means a more accessible market for potential home buyers, thus the resurgence in sales activity.
“With all the uncertainties in the economy, it’s hard to predict right now if the sales upturn will continue,” said Steve Havig, MAAR President-Elect. “But the affordability and inventory choice picture is still very attractive, which bodes well for our long-term picture.”
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What is TARP?
September 29th, 2008 Categories: Mortgage Stuff, Real Estate News, Twin Cities Real Estate Economy
Following are provisions compromise legislation is expected to incorporate, based on a draft bill and comments from lawmakers about the state of negotiations.
* The bill would create a Troubled Assets Relief Program (TARP) to purchase mortgage-related assets originated or issued on or before March 14, or any assets if needed to promote financial stability.
* $700 billion overall to be authorized in installments of $250 billion. That could be increased to $350 billion upon notification to Congress by the president.
* Assets could be purchased from any financial institution having significant operations in the United States.
* Government to get warrants for equity in participating companies as a way of protecting taxpayers and allowing them to benefit from any profit gains.
* Foreclosure mitigation for Americans at risk of losing home. However, a provision House Democrats had sought to help save homes in bankruptcy proceedings has been dropped.
* Restrictions on executive compensation at companies that participate.
* Incorporates House Republican proposal to allow for private-sector funded mortgage insurance program as an option for Treasury secretary.
* Financial Stability Oversight Board comprised of the chairmen of the Federal Reserve, Securities and Exchange Commission and Federal Deposit Insurance Corp, and two members appointed by Congress to oversee activities of the program.
* Requires a government investigation into causes of crisis, with report delivered to Congress by June 2009.
* Regular and detailed reports on transactions and other activities under the rescue program.
* Establishes a congressional oversight panel that would also submit a report on regulatory reform no later than January 20, 2009, the date a new president takes office.
* Would direct 20 percent of any future profits from the bailout fund to the Affordable Housing Fund and the Capital Magnet Fund to meet U.S. housing needs. House Republicans, however, have made clear they oppose this provision.
* Authorizes a temporary money market mutual fund guarantee program for up to one year; requires U.S. Treasury to restore any funds to the Exchange Stabilization Fund that had been used for that purpose and prohibits their further use.
* Requires federal financial regulatory agencies to cooperate with federal law enforcement to investigate fraud or misrepresentation with respect to financial products.
* Investors who sold preferred stock in mortgage finance giants Fannie Mae and Freddie Mac, between January 1, 2008, and before September 7, 2008, to pay higher ordinary income taxes on any gains rather than the lower capital gains tax.
The government announced the seizure of Fannie Mae and Freddie Mac on September 7.
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It’s My Duty to Inform You - Why You Need to Buy a Home Now - Not Later!
March 6th, 2008 Categories: Mortgage Stuff, Real Estate News, Twin Cities Home Buyers, Twin Cities Real Estate Economy
While today’s market plays to their advantage, buyers, who should be swooping in to make the most of reduced housing costs and favorable interest rates, are sitting by, waiting.
It is up to me, as a competent and informed real estate agent, to mobilize my potential buyers to invest in home ownership now.
When the market turns, today’s bargains will be yesterday’s missed opportunities.
While it is conceivable that home prices may drop further, it is likely that these decreased prices will be accompanied by increased financing costs due to rate cuts by the Fed. This means that Read the rest of this entry »
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Minnesota Lawmakers Looking in to the Foreclosure Arena - What are Those Rascals Up to Now?
March 4th, 2008 Categories: Mortgage Stuff, North Minneapolis, Real Estate News, Twin Cities Home Buyers, Twin Cities Real Estate Economy, Twin City Sellers
Minnesota Lawmakers are working on assisting folks with their home foreclosures. Read the rest of this entry »| Discussion: No Comments »
