U.S. homebuyers are less likely to purchase a foreclosed property today than they were a year ago, according to a recent survey by Trulia & Realty Trac. Some 45% of U.S. homebuyers say they are at least somewhat likely to purchase a foreclosure today, compared with 55% who said that same a year ago.
Only 1% of homeowners who carry a mortgage say walking away from their home would be their first option if they are unable to pay it, while 59% say they would not consider walking away no matter how much their mortgage was underwater. More than 2/3 of homeowners, (69%), say modifying their loan terms would be their first choice if they aren’t able to pay their mortgage.
The survey also finds that fewer homeowners have a negative view toward foreclosure properties this year, (78%), compared with last year 85%. Homeowners who believe there are negative aspects to purchasing a foreclosed home say they are most concerned that there will be hidden costs, 68%, that the process is risky 49%, and that the home could lose value, 35%.
Fannie Mae “Five Step” Guides
Fannie Mae recently released three “Five Step” guides offering information to current homeowners, those considering the purchase of a home, and homeowners at risk of default. Each guide include: “Actions to Take Before Buying a Home”, “How Housing Counselors Can Help”, and Protect Yourself from Mortgage Modification Scams”. Find the guides at www.FannieMae.com/kb/index?page=home&c=fivesteps
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HUD’s “First Look” Program
Nonprofit groups and state and local governments participating in the Department of Housing and Urban Development’s (HUD’s) Neighborhood Stabilization Program will receive preferential opportunity to purchase REO’s from the agency’s inventory. The program, called “First Look”, grants these organizations the opportunity to purchase REO properties during the period from conveyance of the property to 14 days, when they are listed per HUD procedures. “First Look” buyers also will receive a 10-percent discount off of the appraised value. The program is effective through May 31, 2013.
Great information from the Calif. Association of Realtors Sept.2010 magazine
California is imposing a 90-day moratorium on housing foreclosures under a new law that takes effect Monday, June 15th.
The law is expected to make lenders try harder to keep borrowers in their homes.
Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.
But supporters acknowledge the California Foreclosure Prevention Act won’t stop thousands of foreclosures from eventually happening.
There have been more than 365,000 foreclosures in California since early 2007.
Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor
www.BrianRipp.com serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.
Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp
