Visit MultnomahForeclosures.com for the notice of default lists (Homes in Foreclosure) for Multnomah County and other Oregon counties.
Stewart Group Realty Inc.
It’s getting close to that time of year again — time to have a garage sale at your home!
Here are a few tips to help you have your most successful garage sale ever.
Advertise Your Sale In Local Newspapers And Online
Many of the habitual Saturday morning garage sale patrons use the paper to plan their treasure hunts.
They do this to make sure they hit all of the sales in certain neighborhoods.
In the ad, mention your home address, date and time of your garage sale and any big or popular items you’ll be selling.
Open Your Sale Early
It’s best to open early, such as around seven in the morning a sales tend to taper off in the afternoon.
Don’t disappoint early shoppers who are typically your best buyers.
They have a busy schedule and a lot of stops to hit.
Open on time or even a few minutes before the time you advertised.
Make Plenty Of Signs To Guide Customers In
If your yard is difficult to see or is not on a main road, be sure to post signs pointing the way.
If allowed, attach a few balloons to it which will catch the attention of passing motorists.
Have Everything Labeled With Reasonable Prices
You’ll get some customers who try to haggle, but for most customers, not knowing the prices is a quick way to have them moving on to another sale.
Keep in mind that these shoppers are looking for a bargain and price accordingly.
You can individually label each item, or use an easily readable color-coded chart.
For instance, a blue sticker means 25 cents, red stickers mean 50 cents and yellow stickers mean $1.
Offer Specials At Different Points During The Garage Sale
You can offer a 2-for-1 sale or a twenty percent off special.
At the end of the day, you may want to have an unadvertised special such as fill a bag for $1 to get rid of as much as possible.
It’s always a good idea to have a “free box” for items that are already low-priced and don’t move during the first half of the sale.
Make your life easier and do something for others by donating any items that don’t sell.
If you plan carefully, you can schedule a pick up by your local charitable organization at the end of your garage sale.
Garage sales are a great way to get the clutter and unused collection of items out of your house while recycling them at the same time.
Using these tips, you’re well on your way to having your best garage sale ever.
As of April 08 2013 there were about 8,039 single family and condo homes listed for sale in Portland Oregon. The median asking price of these homes was approximately $274,000. Since this time last year, the inventory of homes for sale has decreased by 24.4% and the median price has increased by 9.6%.
|April 08, 2013||Month/Month||Year/Year|
|Median Asking Price||$274,000||+3.4%||+9.6%|
|Date||Single Family & Condo
The median asking price for homes in Portland peaked in April 2007 at $354,740 and is now $82,790 (23.3%) lower. From a low of $239,125 in February 2011, the median asking price in Portland has increased by $32,825 (13.7%).
Housing inventory in Portland, which is typically highest in the spring/summer and lowest in the fall/winter, peaked at 23,354 in July 2008. The lowest housing inventory level seen was 7,938 in April 2013.
|Date||Single Family & Condo
The Department of Numbers contextualizes public data so that individuals can form independent opinions on everyday social and economic matters.
Buying real estate for the first time is a very exciting step in life.
It is likely to be one of the biggest financial commitments that you make, so it’s very important to navigate the purchasing process wisely.
Many first-time home buyers make rookie mistakes that bring on negative consequences and a lot of frustration.
Outlined below are common errors home buyers make, so you can learn from their missteps and avoid them yourself.
1. Buying More Than What You Can Truly Afford
Just because the bank says that you qualify a certain amount for a mortgage doesn’t mean that you have to choose a house at the very top of this price range.
Many people get carried away and buy the most expensive house that they qualify for.
If something unexpected happens, they may find it difficult to keep up with their monthly mortgage payments later on.
Remember that you will also have student loan payments, vehicle costs, credit card bills, health insurance, groceries, retirement savings and other expenses, so make sure that your mortgage payments will comfortably fit within your budget.
2. Failing To Get A Home Inspection
Before buying a house, you should always have a professional inspection done. Not doing so is a big mistake.
You don’t want to get stuck with hidden damage that could saddle you with the expense of ongoing repairs.
Hiring a professional to assess the home’s condition is absolutely essential before making your final decision.
3. Disregarding Your Future
When you are buying real estate, don’t just think about how the home will work for you in the immediate future.
Also consider what your needs will be five, ten or even 20 years from now.
Find out the development plans for the neighborhood.
Look for reputable schools if you intend to start a family.
And consider whether the street’s home values are likely to increase or decline in the future.
Your Next Steps
Don’t let the home-buying process overwhelm you!
Learn from these common first-time home buyers’ mistakes, so you can avoid them.
A great next step toward planning for your first home purchase is to consult with a trusted, licensed mortgage professional who is trained in providing the best advice on how a new home will affect your budget.
The Portland Historic Landmarks Commission voted to approve the landmark designation of Washington High School on January 14, 2013. This designation is the first step in Venerable’s ultimate goal of rehabilitating the 1923 brick building. Landmark designation brings with it local incentives for historic preservation, in addition to further regulation including historic design review and restrictions against demolition.
The designation document makes a strong case for Washington High School local significance, as the property helps tell the story of Portland’s changing education system during the first half of the 20th century. This period was marked by the need for expanded school facilities; growing concerns around health and safety, with a particular focus on fire prevention; and school designs that offered optimal learning environments as espoused by education experts at the time.
Below is an excerpt from the landmark nomination, explaining the building’s historical significance and the ways in which Washington High School’s design and construction embodies the priorities, values, and challenges of its time:
The construction of Washington High School began in 1923 after a fire destroyed much of the 1906 Washington High School in the year prior. The new building fully utilized “fireproof” construction techniques of the time. It is a significant example of a building constructed with a structural system entirely of concrete including slabs, columns, and beams. The exterior was faced with red brick and the walls were constructed of plaster-cement-finished clay masonry. There is very little wood in the building. Even the stairs and flooring are concrete.
The new Washington High School was constructed amidst an established campus of buildings that included the original Hawthorne School (1897-1900, demolished), Manual Training Building (1908, demolished), Gymnasium (1911, demolished) and a Boiler Building (1912, extant). Construction was completed and Washington High School opened its doors to students in 1924.
The Washington High School campus was and still is a prominent feature in the Buckman neighborhood. Buckman is a dense early-20th-Century streetcar suburb that grew significantly in response to the building of bridges over the Willamette River, the development of streetcar lines that connected to downtown Portland, and the population explosion that occurred as a result of the 1905 Lewis and Clark Centennial Exposition. Buckman was home to a rapidly growing middle class in Portland, which included families with school-age children.
The 1906 Washington High School was an immediate response to Buckman’s changing demographics. The 1924 Washington High School continued the tradition of a landmark building at the corner of SE Stark and Morrison after the former school burned, further expanding capacity while incorporating design principles idealized at the time. Namely, it was organized around a central auditorium and had many specialized spaces included a library, science labs, music room, and cafeteria. In addition, Washington High School also maintains one of the most substantial compositions of Classical Revival detailing on Portland’s eastside, as evidenced in the symmetry of windows and vertical elements, Classical details and reliefs in terra cotta, and a monumental entrance vestibule. It is interesting to note that the classical symmetry of the exterior maintains such primacy that stairwell landings occur in the middle of window openings. The inspirational quality of the Classical Revival design is further enhanced by six quotes featured on the building exterior in glazed terra cotta panels.
The building’s large twelve-over-one wood windows are not only a key feature of the architect’s Classical composition, but the windows are clustered in groups of three or four to optimize the amount of daylight that could enter each classroom space. “Breeze shields” are found in the classrooms, which could be placed in front of an open window, forcing the airflow in an upward direction rather than horizontally across a desk.
Washington High School’s significance as a Classical Revival high school is not only a reflection of the ideals of educational facility design during this period, but reflects the expertise of its architects Luther Lee Dougan and Chester A. Houghtaling. While the first Washington High School featured Romanesque design influences, Houghtaling & Dougan pursued the more monumental Classical Revival style for the building’s replacement—a style they had executed previously in Portland with much success.
Portland Public Schools hired Houghtaling & Dougan because they were without a district architect during the time period of 1920 to 1924. Floyd A. Naramore had recently resigned in 1919 to work as Seattle’s school architect. He was originally hired in 1912 when the District recognized the need for in-house expertise to deal with the design of fireproof masonry buildings. In the aftermath of Naramore’s departure, Portland Public Schools had to briefly rely on outside architects to design and manage much of the new construction, including Washington High School. The firm Houghtaling & Dougan was considered to be a versatile team and they designed many different types of buildings ranging from industrial warehouses to schools to major civic buildings such as the Elks Temple.
In 1978, Washington High School merged with Monroe High School—an all-girls polytechnic sister school to Benson Polytechnic High School—and the school then became known as Washington-Monroe High School. Not long after, the school experienced declining enrollment and closed its doors in 1981. Two years later the facility was reopened as the Children’s Service Center. This multipurpose facility served multiple tenants that included a day care center, a vocational program for Native American youth and the district’s continuing education center for at-risk pregnant girls. The Children’s Service Center closed in the 1990s and the building has been largely vacant since that time.
Notable alumni of Washington High School include Steven G. Bradbury, attorney, United State Department of Justice; Bill Naito, longtime Portland businessman and civic leader; and Linus Pauling, two-time Nobel Prize winner. Pauling was awarded his diploma in 1962, 45 years after leaving Washington High School prior to graduating in order to attend Oregon State University.
Contact Venerable: 503-224-2446
Staging is the art of preparing your home for sale before showing it to prospective buyers.
The point of staging is to highlight the house’s strengths, downplay its weaknesses and make it more appealing.
With the right decorating techniques, you can win buyers over the moment they step through the door.
Below are a few staging tips to help make your house irresistible to potential buyers.
Put Everything Away
The first step is to put away anything that is not essential. This will open up the house so that it appears more spacious.
Even if you have to rent a storage unit, finding a new home for all of your family’s projects and collections should clear some space and help buyers imagine their own belongings in your home for sale.
Pay special attention to entryways and narrow hallways to improve your prospective buyer’s sense of spaciousness.
Get Rid Of Clutter
Be sure to clear off the things that gather on kitchen counters and surfaces, such as old magazines and stacks of mail.
Also, emptying out your closets of half of the things inside them will make them look much roomier.
Use this time as an opportunity to thin the number of largely unused items that your family has collected over the years.
And look on the bright side; moving into a new house will be much easier after you have donated your unneeded items to a charity.
Fresh Scents Make Sense
You would be surprised by how much the sense of smell comes into play when buyers are viewing a house.
To avoid turning buyers off with pet or smoke odors, make sure you give each room a deep clean, including the air vents and carpeting.
Just covering up stale odors with air fresheners won’t do the job.
Let In The Light
Buyers are looking for spacious rooms with a lot of natural light, so make sure you open the blinds and turn on all the lights.
If you have rooms that are a bit dark, you can add floor lamps to make them brighter or flowers to suggest sunlight.
Home staging can make a big difference in how potential buyers see your home for sale, so make sure you set the mood to make it as attractive as possible.
Although the financial markets have tightened lending guidelines and financing requirements over the last few years, the right advice when applying for your loan can make a big difference.
Not all loans are approved. And even when they aren’t approved immediately, it doesn’t have to be the end of your real estate dreams.
There are many reasons why a mortgage loan for the purchase of your real estate could be declined.
Here are a few things to understand and prepare for when applying for a mortgage:
The loan-to-value ratio (LTV) is the percentage of the appraised value of the real estate that you are trying to finance.
For example, if you are trying to finance a home that costs $100,000, and want to borrow $75,000, your LTV is 75%.
Lenders generally don’t like a high LTV ratio. The higher the ratio, the harder it normally is to qualify for a mortgage.
You can positively affect the LTV by saving for a larger down payment.
Your credit score can be affected negatively, which in turn affects your mortgage loan if you have a high credit-to-debt ratio.
The ratio is figured by dividing the amount of credit available to you on a credit card or auto loan, and dividing it by how much you are currently owe.
High debt loads make a borrower less attractive to many lenders.
Try to keep your debt to under 50% of what is available to you. Lenders will appreciate it, and you will be more likely to get approved for a mortgage.
No Credit or Bad Credit
Few things can derail your mortgage loan approval like negative credit issues.
Having no credit record can sometimes present as much difficulty with your loan approval as having negative credit.
With no record of timely loan payments in your credit history, a lender is unable to determine your likelihood to repay the new mortgage.
Some lenders and loan programs may consider other records of payment, like utility bills and rent reports from your landlord.
Talk to your loan officer to determine which of these issues might apply to you, and take the steps to correct them.
Then, you can finance the home of your dreams.
Moving everything in your house to your new |Oregon| home can be an overwhelming task.
You never realize how much stuff you actually own until you try to fit it all into boxes and move it somewhere new.
When you are packing up your things to relocate, here are some helpful tips to make your moving experience much easier:
Start Packing In Advance
You don’t have to wait until the day before you move to start packing everything in your house!
As soon as you find out that you are moving, you can start packing the items you don’t often use, such as your seasonal decorations, photo albums and family keepsakes.
If you pack a few items per week, you’ll have almost everything packed by the time you are ready to go except for the essentials you use every day.
Establish A System
Rather than randomly throwing every item you see into a box, think ahead and create a logical plan for your packing.
Before you start, develop a simple record-keeping system.
Give every box you pack a number and write a corresponding list detailing the items in that box.
This way, when you arrive you will know exactly where to find each item.
You will want to keep all of the items from each area of the house together so they can be unpacked easily.
For example, keep all of the boxes of kitchen supplies together and then put them straight into the kitchen when you arrive at your new home.
You could even designate a color for each room in the house and put colored stickers on the boxes so that the movers or anyone helping you can easily determine in which room a box belongs.
Bonus Tip: Sometimes Less Is More
One final consideration that can make your move easier is to use your move as an opportunity to pare down your unused belongings.
Plus, you won’t be left wondering why you decided to move things from one home to another once you start unpacking.
As with many things, the more organized you are when packing, the less stressful it will be when you arrive and at your new house.
This past week, several reports were released, all of which showed that declining home inventory is affecting sales. This decline is creating a seller’s market in which multiple bids are being made to purchase homes. According to the National Association of Realtors, existing home sales fell 1% in December, but were still at the second highest level since November, 2009. Inventory of homes for sale fell 8.5 from November, the lowest level since January of 2001, and are down 21.6% from December of 2011.
Following that lead, pending home sales dropped 4.34% in December to 101.7 from 106.3 in November, yet was 6.9% higher than December, 2011, according to the National Association of Realtors. The Chief Economist at NAR stated that “supplies of homes costing less than $100,000 are tight in much of the country, especially in the West, so first time buyers have fewer options”. Mortgage ratesare still low, affordability is still there, but the available homes are dwindling. In the meantime, home prices are increasing at a faster pace. According to the latest S&P/Case-Shiller index for November, property values rose 5.5% from November of 2011 which was the highest year over year increase since August of 2006.
The cause of the low inventory can be attributed to several factors. For the week ending January 18th, loan applications increased 7.0% on a seasonally adjusted basis, according to the Mortgage Banker’s Association. The Refinance Index rose 8% with refinances representing 82% of all applications. The seasonally adjusted Purchase Index rose 3%, the highest level since May, 2010. Many homeowners have chosen a mortgage refinance instead of moving to another home which is one reason that inventory is down. In addition, many underwater homeowners have refinanced through the HARP program which is available for loans that were sold to Fannie Mae or Freddie Mac prior to June 1, 2009. These homeowners may not yet be in a position to sell their homes until they have gained back enough equity. As home prices increase, this will eventually happen. The same can be said for those who refinanced through the FHA streamline program which is offering reduced fees for loans that were endorsed prior to June 1, 2009. Refinancing through these two government programs, both available until the end of 2013, hit all time highs in 2012.
Home builders are busy, but not currently building new homes at the rate that was seen during the housing boom. According to the Census Bureau and the Department of Housing and Urban Development, total new homes sales in 2012 hit the highest level seen since 2009 and were up 19.9% from 2011. There was much progress made in 2012, but sales for new homes fell 7.3% in December.
On the down side, the Census Bureau reported that homeownership fell 0.6% to 65.4% during December, down from 65.5% at the end of October and 66% at the end of 2011. Homeownership reached a peak of 69.2% in 2004 and has been falling since that time. The latest Consumer Confidence index dropped to 58.6 which is the weakest since November of 2011. It was previously at a revised 66.7 in December. This fell more than expected and is due to the higher payroll tax that is taking more out of the pockets of consumers.
The housing market, which is still in recovery, remains fragile. The lack of inventory and the rise of home prices may affect its progress this year. As home prices increase, fewer consumers will be able to qualify for a home loan. Existing homeowners may choose to refinance remain where they are instead of purchasing another home. While jobless claims have fallen, there are still many consumers who are out of work or are working lower paid jobs. The housing market is dependent on jobs, not just for salaries, but for consumer movement from one area to another.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at about a 1 point origination fee.
As a home buyer , you can get a feel for whether a home’s systems and appliances are in working order. However, you can’t know for certain until after the home’s been inspected.
By definition, a home inspection is a top-to-bottom check-up of a home’s physical condition and systems, including a review of the structure, and its plumbing and electrical systems. Home inspections are not the same as a home appraisal, which is a valuation of the property.
When you commission a home inspection, you should be present for it. Here are 3 reasons why :
Seeing For Yourself There’s a big difference between reading a report and seeing “live” what may be right or wrong with a home. With first-hand knowledge of a potential issue, you’ll be in a better position to determine whether a problem warrants contract cancellation, or whether it’s an additional negotiation point.
Discovering The Home Via a home inspection, you will learn where the systems reside within a home (e.g.; boiler room, garage), and how to operate them. This is a valuable educational opportunity and most inspectors are happy to share what they know. It’s also a chance to ask questions about maintenance and upkeep.
Better Understanding A home inspector’s job is to review and disclose the condition of the home. The inspector’s report, however, is just a summary on paper. In being present for the inspection, a buyer will be able to visualize and understand the report’s conclusions more clearly. This can make for more effective re-negotiations with the seller, in the event that damage or distress is identified.
So, what should you do during the home inspection? Your primary tasks are to watch, listen, learn and ask questions. A professional home inspector will welcome your participation in the process.
HUD announced in a recent Mortgagee Letter that temporary provisions have been made to the condominium project approval guidelines. These new provisions took affect September 13, 2012 and will stay in place through August 31, 2014.
-Relaxed HOA certification forms,
-Allowance for mixed-use developments,
-Updates to the definition of “Under Construction”,
-Developers/Investors may own up to 50% of the total units at the time of approval.
Share the benefits of FHA with your clients today!
For more information on FHA changes to condo lending, check out these sources:
FHA eases restrictions on condo lending – Chicago Tribune
Real estate industry welcomes changes to FHA condo rules – Inman News
PRM, Your Solution Based Lender
Mortgage bond prices finished the week higher which pushed rates lower. Rates were lower throughout most of the week as the majority of economic data releases showed continued economic weakness. The weaker than expected New York Fed’s Empire Manufacturing Report started rates moving lower. This was followed by weaker than expected housing starts, higher than expected weekly jobless claims, and weaker than expected Leading Economic Indicators data. Existing home sales did surprise to the upside but did not move the market much. Mortgage interest rates finished the week better by about 1/2 of a discount point.
MLO – 40033
4949 Meadows Road
Lake Oswego, OR 97035
In a ruling the Oregon Supreme Court will soon review, the Oregon Court of Appeals on July 18 issued a major decision.The case, Niday v. Mortgage Electronic Registration Systems Inc., et al, held that MERS, when acting as a nominee for a named lender, is not a beneficiary under Oregon law. The practical effect of the holding is that any trust deed naming MERS the beneficiary may not be foreclosed in the name of MERS by the more expedient nonjudicial method.
A little context is in order.
In 1959, to remain competitive for loan dollars, Oregon adopted the Oregon Trust Deed Act to establish trust deeds as a real estate security instrument. For lenders needing to foreclose, the act created a summary, nonjudicial procedure that bypassed the courts and allowed no redemption rights for borrowers. Foreclosure previously was a judicial process taking two years or more to complete; now it could be done in six months with the summary procedure.
Lenders were happy because the time to liquidate a non-performing loan was substantially reduced. Borrowers benefited because there was no right to a deficiency if the debt exceeded the value of the property and borrowers could cure defaults during the foreclosure process by paying only the amount in arrears rather than the full loan balance.
Trust deeds quickly became the favored real estate security instrument.
In 1993, in part to respond to a growing practice wherein lenders were bundling loans secured by trust deeds and selling them in secondary markets, a group of mortgage industry participants formed MERS and the MERS system.
Anytime a loan is sold from one member of the MERS system to another, the sale is tracked using the MERS system. MERS, the named beneficiary as nominee for the original lender and its assigns, remains the beneficiary as the loan is sold and becomes an agent of the new note owner. With no change to the named beneficiary, there is nothing to publicly record, an administrative convenience accomplishing a central purpose of MERS.
As MERS grew in acceptance, so did its popularity. Nationwide, there are more than 3,000 lender members of MERS that account for approximately 60 percent of all real estate secured loans nationwide.
The onslaught of the Great Recession resulted in a tremendous spike in foreclosure activity. To defend foreclosure proceedings, borrowers challenged the authority of MERS, in its own name, to foreclose non-judicially.
Because the trust deed is a creature of statute, the statutory elements allowing a nonjudicial foreclosure must be followed strictly. One such element is the requirement that the name of the beneficiary and any assignee be in the public record. Niday argued that the lender, not MERS, was the beneficiary. MERS countered that it was the named beneficiary in the trust deed and had the contractual right to foreclose as nominee of the lender and its assigns.
The court sided with Niday, holding that MERS is not a “beneficiary” as defined by the act. The court wrote that the beneficiary is “the person to whom the underlying, secured obligation is owed.” It reasoned that because the lender is owed the money, that party is the beneficiary. Only the person to whom the obligation is owed and whose interest is of record may legally prosecute a nonjudicial foreclosure.
What does all of this mean? Maybe nothing if the Supreme Court finds that the Court of Appeals defined “beneficiary” too narrowly.
Short of that, many issues arise. What is the effect on completed nonjudicial foreclosures of MERS trust deeds? Such sales may be void, in which case the ownership and right to possession of thousands of foreclosed properties fall into legal limbo. Perhaps the sales are only voidable, requiring a lawsuit by the borrower within a limited time to challenge the foreclosure sale.
Titles may now be in doubt for people who bought properties either at a foreclosure sale or further along the line. Also, no market may exist for these properties if title insurers choose not to insure titles until there is some clarity.
Going forward, will MERS lenders do business in Oregon? And if so, at what cost? Loans may be more expensive to administer because they either require that all assignments be documented and recorded or foreclosure via the more expensive judicial method. As such, loans in Oregon could demand higher interest rates.
The Legislature could step in to fix the issue by clarifying the definition of “beneficiary” to include a nominee of the lender, such as MERS. But is there political will to legislate a solution that, on the surface, seems to benefit lenders?
A practice that for many years roamed freely under the radar has suddenly exploded to the surface, leaving the mortgage industry in limbo. Quick answers to the numerous issues now pending are imperative to restore certainty to real estate markets.
Chris Diaz is the founder of Charis Financial, Inc. He has over 15 years experience in helping homeowners with their mortgages and has closed hundreds of short sales over the last 4 years. His website is http://www.charisfinancialinc.com. Send questions to firstname.lastname@example.org; reference ³Short Sales² in the subject line.
I was recently approved for a short sale by (my bank). The loan was in escrow and ready to close within a few days. I then got a letter from (the bank) denying my short sale due to “quality review”. My approval letter wasn’t set to expire for another two weeks and nobody in (the bank) could give me a valid reason as to why I received this denial. Have you seen this scenario before and do you have any suggestions for me as I really don’t want to lose my home to foreclosure?
Yes, the out of the blue “QA Review” denial. This one is a difficult one because of the lack of explanation from your bank. It’s difficult to accept that one can have an approval in hand, with an expiration date that hasn’t yet expired, and still get a denial for a reason that is unexplained. However, this is a reality and it does happen, albeit somewhat infrequently.
Even though your lender has accepted responsibility for their part in one of the largest instances of mortgage fraud on record with the robo-signing incident, they have a QA team that dedicates a great deal of time and effort in making sure that their company is free from other purveyors of fraud. As well they should because there are lots of unscrupulous people trying to steal a buck instead of earn one.
One recent incident, in which a bank was victimized, was where short sale negotiators were doctoring up fake approval letters along with a fake bank account to have funds wired to, and stealing money that way. The FBI said that three California men probably netted $10 million doing that.
Here are two of the main reasons that we’ve been told as to why a QA department would deny your file and what you can do to reverse or overturn the decision:
1. Buyer information is incorrect. Sometimes QA will deny a deal if the buyer’s preapproval has inaccuracies like the wrong NMLS number, broker number, or property address. This can also happen if the buyer’s “proof of funds” is determined to be fraudulent or doctored in any way. We have also seen it happen where the buyer is getting a loan but has enough money in the bank to pay for a property in cash. Even though they could’ve bought the house in cash, because there was no preapproval letter for a loan, QA denied the short sale until we provided that letter. This has happened even if we weren’t specifically asked for the letter.
2. The Equator account being used to process the short sale has been flagged. Some banks use an automated processing system called Equator to handle their short sales. Equator centralizes all communication for all files that a real estate licensee is working on with them. Sometimes, a licensee can involve themselves in schemes like I described above, or can just be guilty of shoddy work and upload documents from files incorrectly. If the QA team catches either of these two things they may flag that file or all of the files of that particular agent. Once that happens they would contact the agent for an explanation. However, if they feel that there are deliberate inaccuracies in the file an agent can be suspended from doing any further deals with that bank. If that happened your deal could be denied even if there was nothing fraudulent done on yours.
If a QA team has denied your short sale, have your agent address these two situations first as they are the most common. So long as you’re dealing with someone who is ethical, there is probably just a minor oversight of buyer info that the bank needs to have satisfied. Have your agent submit the complete buyer info first and then call to have the decision reversed.
There’s been a lot of interesting housing-related news over the past week, with some good and some bad.
The first bit is that economists finally believe the national housing bottom is near.
Yes, we’ve heard that before, several times, but per Zillow, the economists surveyed are all “largely” on-board this time.
So that’s good news. The bad news is that more than half of the same respondents believe the homeownership rate will continue to fall from the 65.4% level seen in the first quarter.
In fact, one in five think homeownership will be at or below 63% in coming years, which will test the all-time low established in 1965.
For the record, some areas of the nation have already appeared to bottom, and are actually up quite a bit.
Meanwhile, future home appreciation isn’t looking as good as it once was.
Back in June 2010, Zillow-surveyed economists expected cumulative appreciation of 10.3% from 2012 to 2014.
Now, the experts only see home prices appreciating a paltry 3.5% for the same period.
That’s $1.25 trillion less in housing wealth than previously expected. Yikes.
So expect an “L” shaped recovery…in other words, a steep decline, followed by many, many flat years. Sure, it may a be “squiggly L” with little ups and downs, but an “L” nonetheless.
That said, make sure you actually like the place you buy, don’t just buy it because you think you’re going to make a killing off it as an investment.
The good news is mortgage rates continue to be absurdly low, with the 30-year fixed matching a record low 3.48% this week, per Zillow.
I didn’t see rates falling that low, so I’ll start eating my hat now.
If you’re wondering why the housing market won’t bounce back immediately, you merely need to consider all the ineligible buyers.
There aren’t many people this lucky, especially now that lenders actually document income.
Then there are those who still haven’t gone through foreclosure yet, but are hanging on by a thread.
There are plenty who still haven’t been displaced, but will be in the next several years. So there’s a ton of shadowy shadow inventory yet to materialize.
Even those who received loan modifications are in serious trouble. A recent study released by credit bureauTransUnion found that a scary 60% of those who received loan mods re-defaulted just 18 months later.
So there’s a lot of bad news that just isn’t making it to the presses, largely because we are riding the “good news train” right now in the housing world.
All of these former homeowners will also have difficulty qualifying for a mortgage in the future, so they’re essentially out of the mix.
Let’s not forget the millions that are unemployed…they obviously won’t be able to buy a home either, so this explains the dip in homeownership as well.
And it doesn’t bode well for home prices going forward. Consider that as home prices rise, more would-be home sellers will list their properties. This should keep downward pressure on prices for a long time.
It also makes one question if the bottom is really as close as some think, or even for real. We saw misleading upticks with the homebuyer tax credit too, so it’ll be interesting to see if this latest rally has legs