Housing Market: Housing Prices continue to fall nationwide
The Washington Post reported that the median price for a house in the United States has declined 4.5%. Read it at ‘No Real Positive News’ Seen As Home Prices Continue to Fall – washingtonpost.com.
We talk with sellers on a regular basis that want to sell their house fast.
However, a home sellers expectation is sometimes the full price at last year’s market value.
Simply put, that’s not economically feasible for us.
How do we put a price on a house? It’s simple. We deal with people who know what they want. If that price is doable for us, its a fair price.
A house is worth what two people agree its worth when you have to sell your house fast.
If we can’t come to an agreement, but you still want to sell your house without an agent, visit our sister website – FISBO TIPS.
Written by - Visit ChrisBuysHousesVA.comHome Prices are Falling Faster Than Ever
Over at Get Flipping » Home Prices are Falling Faster Than Ever , the author points to statistics about the real estate market nationwide.
In a few weeks, the Virginia association of realtors will release their statistics for the Virginia market.
Written by - Visit ChrisBuysHousesVA.comExpensive Mortgages lead to Foreclosure
I have found this article today at another blog: Why mortgages have eaten Americans out of house and home | Wise Bread and thought it would be useful in the discussion on foreclosure.
At some point, people stopped calculating what they could afford long-term and started chasing what was just (or substantially) beyond reach, made possible by slim downpayments and variable-rate mortgages. On September 2, 2007, the New York Times quoted President Bush’s diagnosis, which was similar; he mentioned “both ‘excesses in the lending industry’ and unduly optimistic homeowners who took out ‘loans larger than they could afford,’ as reasons for the mortgage woes.”
The mistakes indeed do go both ways, with irresponsible lenders and uninformed buyers engaging in the dance of debt. The terrible irony is that now, even people who responsibly make their mortgage payments on time are confronted with declining equity; their neighbors are foreclosing, so their own house value is plummeting so quickly that they can’t resell.
The current foreclosure market, simplified, has two causes: people getting more they can afford, and lenders too willing to lend.
The result is a decline in home prices. . . . . . .
Written by - Visit ChrisBuysHousesVA.comFeature: Local Family Postpones Foreclosure.
Monday November 19, Dreams In Distress focused on a Chesterfield family that is facing foreclosure because of their subprime mortgage adjusting.
“They are among the estimated 14,000 Virginia households facing foreclosure this year.”
Their payment adjusted from $1,250 to $1,650, making the house no longer affordable. They are hoping for a loan modification, but there is no guarantee of success.
The only way out is to refinance, but options – as the Lovings discovered – are few.
. . . . . . . .
The Lovings tried repeatedly to get in touch with their lender. “Send more money, send more money,” they said they were told.
They got the subprime loan because their credit was damaged years ago when they went on a debt-management plan to pay off $30,000 in credit-card debt.
They were locked into their original mortgage because it carried a hefty prepayment penalty.
As soon as the penalty phase passed, they looked into refinancing. “At least a dozen lenders turned us down,” Scott said.
They found one taker. The payoff on the old loan — a combo ARM and fixed-rate mortgage – was $137,000.
They walked away with another ARM. This one was for $161,000, which increased their debt. It included $4,000 in cash. Fees and closing costs totaled $20,000.
“We didn’t feel we had any choice,” Scott said.
The new payment is $1,623, not much better than the $1,650 payment on the old loan. “But we had a fresh start,” he said.
The initial interest rate on the new loan is 9.8 percent, 0.1 percent better than the old loan. It, too, has a prepayment penalty — 5 percent of the loan amount. It resets next June.
The Lovings kept up with their new payments for a few months. Then one payment was put into escrow and the Lovings were one month behind.
Repeated calls to the lender solved nothing. When the couple received notice of a foreclosure sale, they turned to Housing Opportunities Made Equal.
“You can breathe,” they said their HOME counselor told them. She had been able to do what they couldn’t – open a line of communication with the lender.
“We’re in limbo,” Scott said, as they wait to find out if their lender will work with them. “We should find out right before Christmas if we can keep our house.”
A 60-day extension was secured on the foreclosure so the Lovings could ask the lender to modify the terms of the loan.
“Banks are really stepping up, but for many, it’s a day late and a dollar short,” said Ann Estes, vice president for ClearPoint Financial Solutions, a nonprofit consumer credit-counseling agency based in Richmond.
The Lovings hang on to the hope that it isn’t too late – that they can keep their house and make payments they can afford.
For others looking at a loan reset, get into a fixed-rate loan and do it today, Estes said. “Don’t put it off.”
Virginia’s foreclosure process is brutally fast. This is another reason the number appears to be so low. They are processed much quicker here than in other states.
If your house is falling behind in payments, we can help you sell your house quickly to avoid foreclosure.
Give us a call at 804/915-9475, or get your offers from us in 24 hours.
Written by - Visit ChrisBuysHousesVA.comRate of Foreclosures in Richmond
Investors need the facts – Real Estate – inRich.com
While the article focuses on investors, it does point out that the Richmond Times Dispatch is publishing nearly 145 trustee sales a week compared to 110 this time last year, a 31% increase.
Written by - Visit ChrisBuysHousesVA.comSurviving the Housing Slump
Newsweek puts up an article called Surviving the Housing Slump and offers 5 ways that homeowners can use.
Written by - Visit ChrisBuysHousesVA.comTrying to Refinance to avoid foreclosure? Here is a local mortgage broker’s opinion.
I received an email from Arie Brown this evening from ProActive Lending Solutions.
Written by - Visit ChrisBuysHousesVA.comAs you know the real estate market and mortgage lending has experienced some major changes during 2007, and will continue to see changes in the future as well. I want to share some information with you that I feel is important and I think you will too.
Due to recent market condition changes, many homeowners attempting to sell their home have not been successful. Some homeowners then decided to refinance their current mortgage to avoid the increased payments from their Adjustable Rate Mortgage. Others decided to refinance and update their current home verses buying a different home elsewhere. WOW – They where in for a BIG surprise.
Homeowners who had their property on the market For Sale By Owner or listed on the MLS have found it was almost impossible to secure a refinance. The reason being is that virtually every major lending institution implemented guideline changes and would not refinance a borrower’s mortgage if that borrower’s property was currently for sale, or has been offered for sale within the last 6 months.
The good news is that one of the nation wide lenders has just announced that they will do a refinance for owners who have recently had their properties offered for sale (conditions and limitations due apply).
Hopefully, as the market turmoil settles, we should see more lending institutions ease their standards and start offering more of the common sense-liberal mortgage products again. It usually takes one to lead the pack, and the reset slowly follow.
Governor Kaine Creates Virginia Foreclosure Prevention Task Force
Governor Kaine Creates Virginia Foreclosure Prevention Task Force was a press release issued today.
I’m glad that the State is getting involved in Foreclosure Prevention. Nearly 4 out of 5 loans in foreclosure in the state were sub-prime. And there are still many more looming on the horizon.
Virginia’s foreclosure process is brutally fast. This is another reason the number appears to be so low. They are processed much quicker here than in other states.
If your house is falling behind in payments, we can help you sell your house quickly to avoid foreclosure.
Give us a call at 804/915-9475, or get your offers from us in 24 hours.
Written by - Visit ChrisBuysHousesVA.comKeeping Your Home Online Course
There is a new nationwide course, available online and anonymous as well.
I have not had any experience with this course, but provide it as a resource to help educate you.
Some states have a foreclosure process that is very lengthy, some are up to a year, which gives homeowners time to work something out with the bank.
Virginia’s process is brutally fast. You may not have the time to delay your action much longer.
If you decide you want to sell your house quickly instead of working with your lender, we are here to help you. Give us a call at 804/915-9475, or get your offers from us in 24 hours.
Written by - Visit ChrisBuysHousesVA.comRichmond Real Estate Market Review October 07
Article from the Richmond Times Dispatch Nov 11, 2007:
Things looking better locally – Real Estate – inRich.com
It’s a positive headline, but doesn’t really focus on the challenges of selling a home these days.
Anecdotal evidence among my network of realtors, attorneys, and investors tell me of deals falling apart because the credit markets have really tightened up. Getting a mortgage is no longer as easy as it used to be.
Perhaps you can no longer wait to sell for the right buyer. Perhaps we can be the right buyer to sell your house quickly and you can move on in life. We’ve got creative tools to help you sell your house.
Give us a call at 804/915-9475, or Get offers from us in 24 hours.
Written by - Visit ChrisBuysHousesVA.com
