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John Murphy's Trulia Blog

Real Estate Insight and Analysis for the Minneapolis Area

By John Murphy - 763-443-9821 | Agent in Plymouth, MN
  • Banks Foreclose on 20,000 Active Duty, Retired and Reserve Military Vets

    Posted Under: Home Selling in Minneapolis, Financing in Minneapolis, Foreclosure in Minneapolis  |  February 7, 2011 2:43 PM  |  1,875 views  |  2 comments

    This really is a stunning story that there aren't more protections given our military personnel.  It is an obvious hardship when they get called away to active duty.  I don't know how the banks should be dealing with this, but it doesn't seem right that they get foreclosed upon in this situation.

    Perhaps there's a way to somehow suspend the payments or put them on the back end of the mortgage.

    The new Consumer Financial Protection Bureau has stepped in and asked the banks not to foreclose.

    Visit Short Sale Minnesota or John Murphy Reports for more information.

  • 10 Reasons to Be Bullish on Housing

    Posted Under: Market Conditions in Minneapolis, Home Buying in Minneapolis, Home Selling in Minneapolis  |  February 7, 2011 12:46 PM  |  208 views  |  No comments

    Andrew Jeffrey from Minyanville and published on Yahoo! Finance had an excellent piece worth considering for all of those thinking about buying and/or selling residential real estate for your personal residence or for an investment.  (I know, I'm biased as I sell real estate, but the news has been so bad for so long, can you blame me for posting something so positive?).

    Mr. Jeffrey elaborates on each one of these points, but for those of you in a hurry, here are his main points:

    1. Jobs.

    2. Jobs.

    3. Pent up demand among young adults.

    4. Foreclosures.

    5. Inflation.

    6. Higher rents and low interest rates.

    7. A booming apartment market.

    8. Investor appetite remains strong.

    9. The stock market.

    10. Confidence.

    He offers good insight on each one of these items.  For more information like this visit me at JohnMurphyReport.com.

  • Foreclosures to Reach New Highs 2011 Due to Shadow Inventory

    Posted Under: Home Buying in Minneapolis, Home Selling in Minneapolis, Foreclosure in Minneapolis  |  February 7, 2011 8:48 AM  |  1,815 views  |  No comments

    Two credit rating agencies came out with reports today that state there are likely to be record foreclosures in 2011 even after the record year that was 2010 according to this story running on Housing Wire.

    S&P expects it to take 49 months at this point to clear the market of foreclosures and short sales.  4 years is a long time.

    If you're struggling with your house payments, there is help and the opportunity to get out of your house with a short sale.  Every person's situation is different.  Contact us to see if we can help.

  • Who Pays the Real Estate Agents in a Short Sale?

    Posted Under: Market Conditions in Minneapolis, Home Buying in Minneapolis, Home Selling in Minneapolis  |  February 7, 2011 8:46 AM  |  1,857 views  |  No comments

    Often times upside down homeowners will be hesitant to even contact a real estate agent because they don't have the money to pay the commissions if they were to sell their house.

    In a short sale, the banks pays the real estate commissions and closing costs associated with closing the sale provided they approve the short sale.  There are some expenses the banks typically won't pay such as water bills, utility bills and HOA (homeowners association fees).  They also won't pay for home warranties.

    Now I say all of this with the caveat that we are seeing more and more people pursue short sales but they are employed and they still have some cash.  Sometimes the banks are requiring those people to come to the table with some cash and they may also ask them to sign a promissory note for a specified amount at zero percent interest or a very low interest rate.

    So if you're concerned that you don't have the money to pay the real estate commissions don't worry.  The biggest issue is to help you figure out what to do with your house.  If it's in your best interest to do a short sale, than get going with the short sale.

  • Short Sales Expected to Increase in 2011

    Posted Under: Market Conditions in Minneapolis, Home Buying in Minneapolis, Home Selling in Minneapolis  |  February 7, 2011 8:44 AM  |  1,799 views  |  No comments

    I've heard from more than a few sources that short sales are expected to continue to rise in 2011 and beyond.  Some are saying that short sales will overtake foreclosures.  I'm not sure that will happen in 2011 but it makes sense why the banks would want more short sales and fewer foreclosures...generally.

    Here's a link that shows the top states in the U.S. for short sale transactions.  Minnesota is not one of them, but they are growing in this state.

    Related Articles
    Coming Soon: A 300-Percent Increase in Foreclosures (reason.com)
  • Fannie Mae Guidelines on Short Sales, Deed-in-Lieu and Foreclosures

    Posted Under: Market Conditions in Minneapolis, Home Selling in Minneapolis, Foreclosure in Minneapolis  |  February 7, 2011 8:41 AM  |  2,925 views  |  No comments

    Struggling home owners need to get their heads around the impact their housing financial crisis will have on their future ability to get a mortgage.

    Fannie Mae is the 800 pound gorilla in the secondary mortgage market.  They drive everything.  They continue to stress the need for home owners to pursue other options besides foreclosure.  Basically, if you go all the way through foreclosure, it's likely going to take 7 years again to get a mortgage.  If you pursue a short sale or deed-in-lieu (DIL) you might be eligible 2 years after the completion of that action.  Bankruptcy is 4 years.  Click here for the most recent Fannie Mae guidelines.

    It's worth noting that bankruptcy seems to have less impact than a foreclosure.  Many people end up pursuing bankruptcy at some point during the short sale process - not everyone, but many do.  Sometimes home owners will pursue bankruptcy after they get an approval from the bank, but they won't release the seller's obligation for the debt owed.  At that point, depending upon the seller's circumstances, and with competent legal advice, they may decide to have the debt discharged through bankruptcy.

  • No New Housing Market Subsidies in President Obama's State of the Union Speech

    Posted Under: General Area in Minneapolis, Quality of Life in Minneapolis, Market Conditions in Minneapolis  |  February 7, 2011 7:59 AM  |  1,827 views  |  No comments

    Has the National Association of Realtors lost their power and influence?  President Obama announced lots of new initiatives, strategies and reorganizations, but there was no mention of helping housing except perhaps to consolidate 5 government agencies that have some involvement in housing.  Don't get me wrong, I don't think there should be any new initiatives for housing other than figure out what to do with Fannie Mae and Freddie Mac which are still big problems that at some point will have to be addressed by our lawmakers.

    One of the things the National Association of Realtors could do is to encourage a change to accounting rules and allow investors to be able to accelerate their depreciation for investment real estate.

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