With the rise of short sale, so to is the risk of fraud. Freddie Mac is sending out a warning to Realtor's & the public of the top four short sale fraud schemes.
Rigging sales & illegal flipping. In essence, a Realtor rigs the transaction to a low price & hides the better offer from the distress homeowner & from Freddie Mac. Once the home sells, the fraudster flips the home for a better price. By this concealment the distressed homeowner & tax payer loses.
Freddie Mac has a unit dedicated to short sale fraud. If you are a distress homeowner or a buyer of a short sale property, insist on signing an Arm's Length Affidavit. This affidavit is signed by all parties in the real estate transaction and states there are no hidden terms nor special agreements among the buyers, sellers and/or agents.
Showing posts with label distressed. Show all posts
Showing posts with label distressed. Show all posts
Wednesday, August 24, 2011
Thursday, July 28, 2011
This Month in Real Estate - July 2011
The U.S. housing market has shown increased stability in home sales during 2011 compared to the previous year. The trend has been an upward one since the expiration of the tax credit last summer. Home prices have softened, particularly earlier this year, due to a higher-than-normal number of distressed sales. However, both the percentage of distressed sales and the amount of time they spend on the market has decreased in recent months, a positive sign for the market moving forward. In fact, prices have steadily followed a positive monthly trend since February. Mortgage defaults have also declined lately.
While interest rates continue to break new record lows, the number of buyers who are able take advantage of these savings is restricted by tougher underwriting standards for mortgages. 40% of the banks surveyed by the Office of the Comptroller of the Currency tightened lending standards for mortgages within the past year. In his second press conference, Federal Reserve Chairman Ben Bernanke stated that a quicker foreclosure process and additional home price stabilization are key to boosting confidence in the market and bolstering a more robust recovery in the housing sector.
As the economy improves, stimulus efforts by the government and the Fed will most likely continue to wind down, which typically spurs rising interest rates to keep inflation in check. Although inflation has been the source of recent concern, the Fed appears confident it will remain in check for the near term. Meanwhile, buyers continue to benefit from historically favorable buying conditions, and sellers are encouraged by increased market stability.
Follow the embedded links if you would like to find out more on "This Month In Real Estate" or more about homes in your area.
While interest rates continue to break new record lows, the number of buyers who are able take advantage of these savings is restricted by tougher underwriting standards for mortgages. 40% of the banks surveyed by the Office of the Comptroller of the Currency tightened lending standards for mortgages within the past year. In his second press conference, Federal Reserve Chairman Ben Bernanke stated that a quicker foreclosure process and additional home price stabilization are key to boosting confidence in the market and bolstering a more robust recovery in the housing sector.
As the economy improves, stimulus efforts by the government and the Fed will most likely continue to wind down, which typically spurs rising interest rates to keep inflation in check. Although inflation has been the source of recent concern, the Fed appears confident it will remain in check for the near term. Meanwhile, buyers continue to benefit from historically favorable buying conditions, and sellers are encouraged by increased market stability.
Follow the embedded links if you would like to find out more on "This Month In Real Estate" or more about homes in your area.
Wednesday, July 20, 2011
Survey Reveals Significant Optimism Among Distressed Homeowners who Receive Housing Counseling
A growing number of government studies show that if a homeowner in distress seeks out housing counseling, the odds of the borrower receiving a loan modification or work out plan brings better and more sustainable terms. In a news release by HPF (Homeownership Preservation Foundation), an independent national nonprofit dedicated to helping distressed homeowners navigate financial challenges and avoid mortgage foreclosure released survey findings underscoring a surprising level of financial optimism among home buyers who call HPF for foreclosure prevention counseling.
Despite a majority (52%) of survey respondents reporting a significant decline in their household income compared to a year ago and 88% reporting anxiety around their ability to make payments on their debt, nearly three-quarters (71%) of survey respondents said they are confident that they will be in their home 12 months out. Nearly three-fifths of respondents (58%) said that they expect their personal financial situation to get better over the next year. An expected reduction in mortgage payments (41%), a new job (19%), or an increase in wages (12%) was the most common reason cited for the anticipated improvement to their personal finances.
The takeaway for homeowners, there is help for you. For a list of non-profit housing counseling in your area, you can visit HUD.gov.
To find out more about the market in your area, click here.
Despite a majority (52%) of survey respondents reporting a significant decline in their household income compared to a year ago and 88% reporting anxiety around their ability to make payments on their debt, nearly three-quarters (71%) of survey respondents said they are confident that they will be in their home 12 months out. Nearly three-fifths of respondents (58%) said that they expect their personal financial situation to get better over the next year. An expected reduction in mortgage payments (41%), a new job (19%), or an increase in wages (12%) was the most common reason cited for the anticipated improvement to their personal finances.
The takeaway for homeowners, there is help for you. For a list of non-profit housing counseling in your area, you can visit HUD.gov.
To find out more about the market in your area, click here.
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