There are many homes on the market today – which is ideal for people who are looking to buy. With more to choose from, there’s more opportunity to find a good deal.
Fixer-uppers can be found in most communities, even wealthier neighborhoods. Fixer-uppers can be a great deal for someone who doesn’t mind investing a little sweat equity; however, you want to be sure that the house you buy doesn’t have major issues, like structural problems, so a home inspection is essential.
You may want to look at homes that merely need some cosmetic work, like adding new appliances or a fresh coat of paint. In fact, in some instances sellers may offer an allowance to cover all or part of the repair as an incentive to buy.
Whether you are looking for a fixer-upper, new construction, or anything in between, when looking for a home, the best place to start is always with a trusted real estate professional.
Shadow inventory of residential homes fell to 1.7 million in April, down from 1.9 million the previous month, according to CoreLogic. This represents a five months’ supply of shadow inventory and accounts for 29 percent of total housing supply. Of the 1.7 million units, 790,000 are seriously delinquent, 440,000 are in some stage of foreclosure and another 440,000 are already REO.
In addition to the current shadow inventory, there are 2 million current negative equity loans that are more than 50 percent, or at least $150,000, upside down. These current underwater loans have an increased risk of entering the shadow inventory if the owners’ ability to pay is impaired while significantly underwater.
information from CRS Member Connect on-line newsletter
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
Foreclosure filings, including default notices, scheduled auctions and bank repossessions, were reported on 315,716 U.S. properties during January, a 10 percent decrease from December but still 15 percent higher than January 2009, according to the latest RealtyTrac figures released today. One in every 409 U.S. homes received a foreclosure filing during the month.
REO activity fell 5 percent from the previous month, but was up 31 percent from a year ago. Default notices were down 12 percent in January, but were up 4 percent from January 2009, while scheduled auctions were down 11 percent for the month but were 15 percent higher than a year ago.
RealtyTrac’s CEO James J. Saccacio says the January foreclosure data is similar to a year ago, when a double-digit jump in foreclosure activity in December 2008 was followed by a 10 percent drop in January 2009. “If history repeats itself, we will see a surge in the numbers over the next few months as lenders foreclose on delinquent loans where neither the existing loan modification programs or the new short sale and deed-in-lieu of foreclosure alternatives works,” Saccacio says.
Nevada continues to lead the country in foreclosure activity with one in every 95 households receiving a foreclosure filing during January, more than four times the national average. Arizona was second with one in every 129 households receiving a foreclosure filing.
Las Vegas had the highest metro foreclosure rate in the country, with one in every 82 households receiving a foreclosure filing during the month, despite a decrease of 2 percent in foreclosure activity from the previous month and 21 percent drop in activity from a year ago. Phoenix was the only metro area among the top 10 to post a month-over-month increase (4 percent) in foreclosure activity.
Brian Ripp, CRS
info from; CRS connect e-mail update
There are many homes on the market today – which is ideal for people who are looking to buy. With more to choose from, there’s more opportunity to find a good deal.
