NAR pushes bill for quicker response on Short Sales
Inside a professional Realtor's mind on Short Sales...
Short sales have been on the rise in the real estate marketplace over the last couple of years. The biggest problem that we Realtors have faced is that the banks have not been prepared to handle these transactions efficiently. Now, when I say "we Realtors", understand that "we Realtors" are in the business of serving buyers and sellers. Without consistency and standards, it is nearly impossible to assist our clients in the expert manner that they deserve. Though most clients understand that certain things are beyond our professional control, we are continuously striving to better our industry and so our ability to serve our clients (whether they know it or not).
There have been many improvements to the Short Sale process as of late, but the biggest problem still remains... response time.
Why is that a problem?
Well, when a seller is in a position to NEED to sell, time is not exactly on their side. More often than not, sellers who seek a Short Sale are doing so in an effort to avoid a forclosure. What ends up happening is that the banks take too long to approve each aspect of the transaction. The main example being the offer to purchase. It is not unusual for lenders to recieve an offer to purchase and not respond to it for 6 months or longer. As you can imagine, this results in the frustration of both buyers and sellers. Many buyers walk away simply over the lack of any kind of timely response.
NAR (The National Association of Realtors) represents over 1.1 million members and is by far the loudest "voice of real estate". It's members, myself included, can tell you how important it becomes to sellers that they be able to sell their properties in these already stresfull situations. Homeowners may now find that relief could be on its' way thanks to the efforts of our National Association. The legislation, H.R. 6133, “Prompt Decision for Qualification of Short Sale Act of 2010,” was offered yesterday in Congress by U.S. Reps. Robert Andrews (D-N.J.) and Tom Rooney (R-Fla.). The bill would require lenders to respond to consumer short sale requests within 45 days... something Realtors have been advocating for their clients for quite some time.
I'll let you know how it turns out...
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
Direct: 405.412.5452
www.TheVIPofOKC.com
Wednesday, September 22, 2010
Tuesday, September 14, 2010
Changes for Reverse Mortgages
Housing Regulator Prepares Changes for Reverse Mortgages
By Mary Ellen Podmolik Print Article
RISMEDIA, September 14, 2010—(MCT)—The Federal Housing Administration isn’t talking publicly about it, but the agency may be getting ready to lessen the upfront costs of reverse mortgages for some borrowers. The agency also, however, may be reducing the amount seniors can borrow from their homes.
In a recent conference call with industry participants, FHA officials said they were finalizing plans to offer a home-equity conversion mortgage with almost no upfront mortgage insurance premium attached, according to the National Reverse Mortgage Lenders Association. The FHA may also tinker with the traditional product in a way that increases the overall borrowing costs.
“HUD is looking at options to provide a lower-priced home-equity conversion mortgage option,” said Lemar Wooley, a spokesman for the U.S. Department of Housing and Urban Development. “We are still working out the details. Our basic plan is to make the product more attractive, while limiting FHA’s exposure to risk.”
A home-equity conversion mortgage is a federally guaranteed reverse mortgage designed to let homeowners 62 or older tap into the equity in their homes. The loans and accrued interest don’t have to be repaid until the owner sells the home, dies or fails to live there for one year, but the loans have traditionally carried significant upfront and annual expenses.
According to participants on the conference call, home-equity conversion mortgages would be split into two products this fall: a “standard” loan and a “saver” loan.
The saver loan would have an upfront mortgage insurance premium of 0.01% of a home’s value, but the amount of funds that could be borrowed, known as the principal limit, would be reduced by at least 10%, lowering the risk to the FHA, which guarantees the loans. Because a smaller amount could be borrowed, the saver loan could be marketed as an alternative to a home equity line of credit to seniors on fixed incomes who can’t make the monthly minimum interest payments required on such lines of credit.
Under the standard loan, the upfront mortgage insurance premium charged by the FHA would remain 2% of the property value (or a max of 2% of the FHA maximum loan limit of $625,500), and the principal limit would be cut by 1-5% of a home’s value, depending on the borrower’s age. The upfront mortgage insurance premium would remain 2%, said industry participants briefed on the plan.
For both loans, the monthly mortgage insurance premium, which is 0.5% of the mortgage balance for a traditional home equity conversion mortgage, would increase to 1.25%.
“For someone who needs a chunk of money, but not a huge chunk, we believe this will significantly broaden the appeal,” said Peter Bell, president of the National Reverse Mortgage Lenders Association. “They’re very smart changes.”
In the past few months, several reverse mortgage lenders decreased origination fees and closing costs, partly in a bid to increase demand for the product and partly to pass along some of the profit they’ve made as investors scooped up the loans on the secondary market. The saver product would further reduce the upfront borrowing costs.
The National Council on Aging, which has advocated the development of a more flexible reverse mortgage product for some time, views the coming changes as welcome news that the industry is moving past the one-size-fits-all mentality.
However, the advocacy group also sees potential pitfalls.
“The more flexibility there is, the more chance there is to be talked into something that doesn’t make sense,” said Barbara Stucki, vice president of home equity initiatives for the National Council on Aging.
In the past year, consumer advocates have voiced concerns about the marketing techniques used to tout reverse mortgages to seniors, a potentially vulnerable class of consumers.
Beginning Sept. 11, consumers interested in home equity conversion mortgage will have to undergo expanded counseling to better understand their options.
Stucki urges seniors to take full advantage of those expanded counseling efforts.
“Go talk to a counselor before you talk with a lender,” she said. “Don’t wait until you’ve talked with a lender and been talked into something. This counseling is something that can be an extraordinary teachable moment.”
(c) 2010, Chicago Tribune.
Distributed by McClatchy-Tribune Information Services.
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
Direct: 405.412.5452
By Mary Ellen Podmolik Print Article
RISMEDIA, September 14, 2010—(MCT)—The Federal Housing Administration isn’t talking publicly about it, but the agency may be getting ready to lessen the upfront costs of reverse mortgages for some borrowers. The agency also, however, may be reducing the amount seniors can borrow from their homes.
In a recent conference call with industry participants, FHA officials said they were finalizing plans to offer a home-equity conversion mortgage with almost no upfront mortgage insurance premium attached, according to the National Reverse Mortgage Lenders Association. The FHA may also tinker with the traditional product in a way that increases the overall borrowing costs.
“HUD is looking at options to provide a lower-priced home-equity conversion mortgage option,” said Lemar Wooley, a spokesman for the U.S. Department of Housing and Urban Development. “We are still working out the details. Our basic plan is to make the product more attractive, while limiting FHA’s exposure to risk.”A home-equity conversion mortgage is a federally guaranteed reverse mortgage designed to let homeowners 62 or older tap into the equity in their homes. The loans and accrued interest don’t have to be repaid until the owner sells the home, dies or fails to live there for one year, but the loans have traditionally carried significant upfront and annual expenses.
According to participants on the conference call, home-equity conversion mortgages would be split into two products this fall: a “standard” loan and a “saver” loan.
The saver loan would have an upfront mortgage insurance premium of 0.01% of a home’s value, but the amount of funds that could be borrowed, known as the principal limit, would be reduced by at least 10%, lowering the risk to the FHA, which guarantees the loans. Because a smaller amount could be borrowed, the saver loan could be marketed as an alternative to a home equity line of credit to seniors on fixed incomes who can’t make the monthly minimum interest payments required on such lines of credit.
Under the standard loan, the upfront mortgage insurance premium charged by the FHA would remain 2% of the property value (or a max of 2% of the FHA maximum loan limit of $625,500), and the principal limit would be cut by 1-5% of a home’s value, depending on the borrower’s age. The upfront mortgage insurance premium would remain 2%, said industry participants briefed on the plan.
For both loans, the monthly mortgage insurance premium, which is 0.5% of the mortgage balance for a traditional home equity conversion mortgage, would increase to 1.25%.
“For someone who needs a chunk of money, but not a huge chunk, we believe this will significantly broaden the appeal,” said Peter Bell, president of the National Reverse Mortgage Lenders Association. “They’re very smart changes.”
In the past few months, several reverse mortgage lenders decreased origination fees and closing costs, partly in a bid to increase demand for the product and partly to pass along some of the profit they’ve made as investors scooped up the loans on the secondary market. The saver product would further reduce the upfront borrowing costs.
The National Council on Aging, which has advocated the development of a more flexible reverse mortgage product for some time, views the coming changes as welcome news that the industry is moving past the one-size-fits-all mentality.
However, the advocacy group also sees potential pitfalls.
“The more flexibility there is, the more chance there is to be talked into something that doesn’t make sense,” said Barbara Stucki, vice president of home equity initiatives for the National Council on Aging.
In the past year, consumer advocates have voiced concerns about the marketing techniques used to tout reverse mortgages to seniors, a potentially vulnerable class of consumers.
Beginning Sept. 11, consumers interested in home equity conversion mortgage will have to undergo expanded counseling to better understand their options.
Stucki urges seniors to take full advantage of those expanded counseling efforts.
“Go talk to a counselor before you talk with a lender,” she said. “Don’t wait until you’ve talked with a lender and been talked into something. This counseling is something that can be an extraordinary teachable moment.”
(c) 2010, Chicago Tribune.
Distributed by McClatchy-Tribune Information Services.
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
Direct: 405.412.5452
Friday, September 10, 2010
9 Things to do to Prepare for Fall
Whether you're preparing a home for sale, holidays, or just the cold winter months, here's your punch list!
9 Things to do to get your Home ready for Fall
Consider taking some time now to prepare and you won't be caught off guard when you have unexpected guests or find yourself working outdoors during the colder Oklahoma months.
1.) The Yard/Garden:
•· Prepare your lawns and gardens now for below-freezing temperatures. Pull weeds, seed and fertilize the lawn, and plant any spring-blooming bulbs. In areas where the ground is likely to freeze, you should consider mulching flower beds. The mulch will help to insulate the roots, protecting them when the weather gets cold. Potted plants and container gardens should be moved indoors or you can protect them outdoors by wrapping them in burlap. Cover or wrap outdoor faucets.
2.) The Patio:
•· Clean outdoor patio furniture and equipment with mild soap and water. If possible, bring them indoors for the winter. If you don't have the storage space, wrap them tightly with a tarp or other cover that will protect them from harsh weather and the damaging rays of the sun.
3.) Storage Areas:
•· Store outdoor fun and camping gear in the back (since they won't be needed again until next year) and move the fall sporting (footballs, etc) and yard equipment (rakes & leaf blowers) to the more accessible areas of the storage space. This way you won't have to fight with unnecessary items when you're getting ready to run off to football practice or to rake leaves.
4.) Entry Areas:
•· In the cooler temperatures you'll need warmer jackets and heavier shoes. Don't let these items clutter up the entryway. Organize a space near the doorway to store them. If you don't have a coat closet nearby, consider hanging coat hooks and setting out baskets for shoes, scarves, hats & gloves.
5.) Clothes Closets:
•· Go through your family's closets. Store summer dresses and tops to make room for fall wardrobes. Make sure school clothes are organized and ready for the children to grab on mornings when they're hurrying to school.
6.) In the Kitchen:
•· Things can get pretty hectic during the school weeks. Be sure to stock the cabinets and pantries with healthy afternoon snacks and ingredients for quick & easy meals so that you can quickly make dinners that are good for your family.
7.) In the Living Room:
•· Give the living room a quick mini-makeover for fall with just a few simple changes. Pillows, throws and slipcovers in rich fall fabrics or colors are easy ways to give it a new look. Consider an arrangement of autumn flowers to bring the mood of the seasonal changes indoors.
8.) In the Bedrooms:
•· Falling temperatures also mean cool autumn nights. It's time to pull out the heavier blankets that you stored away in the spring. Give your bed a new seasonal look with a throw at the end of the bed in an autumnal color or rich fabric.
9.) In the Bathrooms:
•· As everyone is rushing to get to school or work, the bathroom becomes one of the busiest rooms in the house. Streamline the process and avoid headaches by assigning everyone a shelf, drawer, or other storage spot where they can keep their morning essentials. No more hunting around for someone's hairbrush. Everything they need is in their assigned place and easy to reach.
Get more tips like these on The VIP Team website.
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
405.412.5452
Natalie@TheVIPofOKC.com
www.TheVIPofOKC.com
9 Things to do to get your Home ready for Fall
Consider taking some time now to prepare and you won't be caught off guard when you have unexpected guests or find yourself working outdoors during the colder Oklahoma months.
1.) The Yard/Garden:
•· Prepare your lawns and gardens now for below-freezing temperatures. Pull weeds, seed and fertilize the lawn, and plant any spring-blooming bulbs. In areas where the ground is likely to freeze, you should consider mulching flower beds. The mulch will help to insulate the roots, protecting them when the weather gets cold. Potted plants and container gardens should be moved indoors or you can protect them outdoors by wrapping them in burlap. Cover or wrap outdoor faucets.
2.) The Patio:
•· Clean outdoor patio furniture and equipment with mild soap and water. If possible, bring them indoors for the winter. If you don't have the storage space, wrap them tightly with a tarp or other cover that will protect them from harsh weather and the damaging rays of the sun.
3.) Storage Areas:
•· Store outdoor fun and camping gear in the back (since they won't be needed again until next year) and move the fall sporting (footballs, etc) and yard equipment (rakes & leaf blowers) to the more accessible areas of the storage space. This way you won't have to fight with unnecessary items when you're getting ready to run off to football practice or to rake leaves.
4.) Entry Areas:
•· In the cooler temperatures you'll need warmer jackets and heavier shoes. Don't let these items clutter up the entryway. Organize a space near the doorway to store them. If you don't have a coat closet nearby, consider hanging coat hooks and setting out baskets for shoes, scarves, hats & gloves.
5.) Clothes Closets:
•· Go through your family's closets. Store summer dresses and tops to make room for fall wardrobes. Make sure school clothes are organized and ready for the children to grab on mornings when they're hurrying to school.
6.) In the Kitchen:
•· Things can get pretty hectic during the school weeks. Be sure to stock the cabinets and pantries with healthy afternoon snacks and ingredients for quick & easy meals so that you can quickly make dinners that are good for your family.
7.) In the Living Room:
•· Give the living room a quick mini-makeover for fall with just a few simple changes. Pillows, throws and slipcovers in rich fall fabrics or colors are easy ways to give it a new look. Consider an arrangement of autumn flowers to bring the mood of the seasonal changes indoors.
8.) In the Bedrooms:
•· Falling temperatures also mean cool autumn nights. It's time to pull out the heavier blankets that you stored away in the spring. Give your bed a new seasonal look with a throw at the end of the bed in an autumnal color or rich fabric.
9.) In the Bathrooms:
•· As everyone is rushing to get to school or work, the bathroom becomes one of the busiest rooms in the house. Streamline the process and avoid headaches by assigning everyone a shelf, drawer, or other storage spot where they can keep their morning essentials. No more hunting around for someone's hairbrush. Everything they need is in their assigned place and easy to reach.
Get more tips like these on The VIP Team website.
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
405.412.5452
Natalie@TheVIPofOKC.com
www.TheVIPofOKC.com
Thursday, September 9, 2010
Market & Interest Rates Updates
Applications to purchase homes increased 6.3 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.
On an unadjusted basis, purchases rose 4 percent compared to the previous week, but were down 38.8 percent from the same week a year ago.
Mortgage rates rose slightly last week:
30-year fixed-rate mortgages increased to 4.5 percent (from 4.43 percent).
15-year fixed-rate mortgages increased to 4 percent (from 3.88 percent).
1-year ARMs increased to 7 percent (from 6.95 percent).
What will the economy and the real estate market be like a month from now?
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
Natalie@TheVIPofOKC.com
www.TheVIPofOKC.com
On an unadjusted basis, purchases rose 4 percent compared to the previous week, but were down 38.8 percent from the same week a year ago.
Mortgage rates rose slightly last week:
30-year fixed-rate mortgages increased to 4.5 percent (from 4.43 percent).
15-year fixed-rate mortgages increased to 4 percent (from 3.88 percent).
1-year ARMs increased to 7 percent (from 6.95 percent).
What will the economy and the real estate market be like a month from now?
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
Natalie@TheVIPofOKC.com
www.TheVIPofOKC.com
Wednesday, September 8, 2010
The Value of a Buyer's Agent
The value of a Buyer's Agent
Buyer Myth #1:
"If I call the Realtor off the sign, he has more information about the property and will be able to negotiate a better price for me."
The truth:
"That simply isn't true. First of all, any adverse conditions about the property are REQUIRED to be disclosed by the Seller upfront. Then you can have inspections to tell you what the seller didn't know. As for other information, ALL Realtors have tools and resources at their disposal to obtain additional information. A Realtor who is representing you should use these tools to put you in a good bargaining position. If you are talking about a seller's motivation, Realtors are required NOT to disclose motivation without a sellers written permission, which means the Realtor representing you could just as easily obtain that information... if not moreso, because your expert will know the right types of questions to ask to determine the sellers LEVEL of motivation. Which takes us to a 'better price'... No, as a matter of fact, you will obtain the best deal by using the best negotiator. Take into consideration, the listing Realtor is representing the Seller and will have an obligation at the very least to be 'fair' to both you and the seller. On the other other hand, by utilizing a Realtor that specifically represents you and your interests, you are allowing for a more assertive negotiation on your behalf."
- There is no better motivation than doing the right thing. That doesn't always result in a commission check , but the Karma is priceless. I am a Real Estate geek and I would have to say that one of my favorite aspects of being a Realtor is negotiating. I get pumped up about it and just love it! When I negotiate for my clients, I am often underestimated, which plays to our advantage. It's almost like a David & Goliath scene. The other side ends up scratching their head and saying "What happened?". No wonder car salesmen don't like me! It's a gift.
Natalie Flaming
Realtor - Broker Associate
405.412.5452
The VIP Team
Metro First Realty
www.TheVIPofOKC.com
Serving Buyers and Sellers of Oklahoma City, Edmond, Bethany, and Warr Acres for over 10 years.
Buyer Myth #1:
"If I call the Realtor off the sign, he has more information about the property and will be able to negotiate a better price for me."
The truth:
"That simply isn't true. First of all, any adverse conditions about the property are REQUIRED to be disclosed by the Seller upfront. Then you can have inspections to tell you what the seller didn't know. As for other information, ALL Realtors have tools and resources at their disposal to obtain additional information. A Realtor who is representing you should use these tools to put you in a good bargaining position. If you are talking about a seller's motivation, Realtors are required NOT to disclose motivation without a sellers written permission, which means the Realtor representing you could just as easily obtain that information... if not moreso, because your expert will know the right types of questions to ask to determine the sellers LEVEL of motivation. Which takes us to a 'better price'... No, as a matter of fact, you will obtain the best deal by using the best negotiator. Take into consideration, the listing Realtor is representing the Seller and will have an obligation at the very least to be 'fair' to both you and the seller. On the other other hand, by utilizing a Realtor that specifically represents you and your interests, you are allowing for a more assertive negotiation on your behalf."
- There is no better motivation than doing the right thing. That doesn't always result in a commission check , but the Karma is priceless. I am a Real Estate geek and I would have to say that one of my favorite aspects of being a Realtor is negotiating. I get pumped up about it and just love it! When I negotiate for my clients, I am often underestimated, which plays to our advantage. It's almost like a David & Goliath scene. The other side ends up scratching their head and saying "What happened?". No wonder car salesmen don't like me! It's a gift.
Natalie Flaming
Realtor - Broker Associate
405.412.5452
The VIP Team
Metro First Realty
www.TheVIPofOKC.com
Serving Buyers and Sellers of Oklahoma City, Edmond, Bethany, and Warr Acres for over 10 years.
Tuesday, September 7, 2010
The VIP News - OK 2nd Qtr Sales Stats
In parts of the country, home values have fallen as much as 57%. Yes, the bubble has burst, but Oklahoma boasts a stable economy with some of the lowest unemployment rates in the US which are reflected in a minor loss in home values. The proof is in the numbers.
Currently, the bulk of the Buyers in the Oklahoma City and surrounding areas are the "2nd-time Homebuyers" or those upgrading from the sale of their previous home to those first-time Homebuyers that sought the tax credit incentives that ended in April. Now is the time to sell if you have a home in the value range of $150,000 - $300,000. Those experienced buyers are savvy enough to know the interest rates combined with home prices are the only incentive they need to buy.
Keep up the good work Oklahoma!
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
www.TheVIPofOKC.com
The OK State Fair is here!
The Oklahoma State Fair this year will be Sept 16th - 26th.
Regular Gate Admission will be $8.
Ages 6-11 will be $5.
Children 5 and under are FREE.
On opening day (Sept 16th), Gate Admission will be $1!
On Tues, Gate Admission will be $2, except for members of the Armed Forces & their Spouses - which will get in FREE!
Enjoy the fun & the food at the Fairgrounds in Oklahoma City!
You can get more info on the upcoming State Fair, the shows, and attractions here:
OK STATE FAIR
Take a break and have a great time!
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
www.TheVIPofOKC.com
Regular Gate Admission will be $8.
Ages 6-11 will be $5.
Children 5 and under are FREE.
On opening day (Sept 16th), Gate Admission will be $1!
On Tues, Gate Admission will be $2, except for members of the Armed Forces & their Spouses - which will get in FREE!
Enjoy the fun & the food at the Fairgrounds in Oklahoma City!
You can get more info on the upcoming State Fair, the shows, and attractions here:
OK STATE FAIR
Take a break and have a great time!
Natalie Flaming
Realtor - Broker Associate
The VIP Team
Metro First Realty
www.TheVIPofOKC.com
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