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Simply Property Management's Blog

Optimistic Real Estate & Property Management

By Greg Paielli | Property Manager in Las Vegas, NV
  • 3 Things You Need to Know about Fannie Mae’s First Look Program

    Posted Under: Home Buying in Las Vegas, Financing in Las Vegas, Foreclosure in Las Vegas  |  March 31, 2014 4:57 PM  |  357 views  |  No comments

    3 Things You Need to Know about Fannie Mae’s First Look Program

    If you’ve been on the fence about purchasing a foreclosure home, you may want to act fast. Especially if you found a sweet foreclosure deal on Fannie Mae’s HomePath resale marketing site. That’s because the “First Look” program is quickly coming to an end for qualified homebuyers to submit their offers. Here are 3 things you need to know about Fannie Mae’s First Look program.

    1.) Initially the First Look program is available to homebuyers first to disallow bids from investors on foreclosed homes during the first twenty days after being listed to cut back on the bid competition. But after that, investors are free to jump in. So at this point, everyone, from homebuyers to investors can get in on this deal.

    2.) Fannie Mae’s cash incentive First Look program is designed to save homebuyers cash as well as reduce their huge inventory of foreclosed homes flooding the market. As a result, Fannie Mae is temporarily offering qualified owner-occupant purchasers 3.5 percent of the purchase price toward closing costs.

    3) About 31,000 of these foreclosed properties are listed on Fannie Mae’s resale marketing site at www.homepath.com. But in order to take advantage of this new program, you have to act fast! Originally, to be eligible for the incentive, the initial offer must have been submitted before March 31 and closed on or before May 31. But thanks to a recent extension, the initial offer must now be submitted by April 30th and close on or before June 30th.

    Fannie Mae isn’t the only one offering foreclosed home buying incentives. Freddie Mac also has thousands of foreclosed home in their inventory available on their HomeSteps resale marketing site as well. Their First Look program offers an up to $500 homebuyer incentive.

    If you have questions about purchasing a foreclosed home in the Las Vegas area, please contact the Simply Property Management team.

    Greg Paielli

    Simply Property Management – Paielli Realty, Inc.

    www.lasvegaspropertymgmtservices.com

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  • New HARP Hope for Homeowners!

    Posted Under: Home Buying in Phoenix, Financing in Phoenix, Foreclosure in Phoenix  |  August 16, 2012 1:00 PM  |  364 views  |  No comments

    Fannie Mae and Freddie Mac, the two largest home loan companies in the US, recently unveiled lender instructions for the governments modified Home Affordable Refinance Program (HARP).  This revised program should allow more underwater homeowners nationwide the opportunity to refinance at today’s low mortgage rates.  According to www.fhfa.gov, HARP II is expected to reach millions of homeowners and cause a refinancing increase across Arizona and nationwide!  Now, borrowers who owe more on their home than it’s worth will have the opportunity to reduce their owed balance faster.  Here are some details you need to know to take advantage of this program.

    Meet the criteria:

    Lenders will begin taking HARP II loan applications before the end of the year.  However, applicants must meet basic criteria in order to apply.  The mortgage payment history must be perfect going back six months, and may not include more than one 30-day late payment going back 12 months.  Also, the existing mortgage must be guaranteed by Fannie Mae or Freddie Mac as well as securitized prior to June 1, 2009.

    Loan to value standards

    HARP II also contains loan to value (LTV) policies that must be met in addition to the basic criteria.  The unlimited LTV feature only applies to either fixed rate loans,  loans that are 30 years or less, or adjustable mortgage rates that are capped at 105% LTV.   

    Lower rates, lower payments:

    Once approved, applicants may receive dramatic loan-level pricing adjustments depending on the length of their loan term which can result in much lower mortgage rates.  Some applicants may even see lower mortgage rates than a typical conventional mortgage!

    These broader HARP changes are set to take effect December 1, 2011 and stay in effect until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009 which will give homeowners more time to qualify than in the original HARP policies.  HARP II will hopefully help more distressed homeowners stay in their homes, minimize the foreclosures in Phoenix,and bring some balance back to the struggling real estate market. 

  • Why Would-Be Home Buyers Are Renting

    Posted Under: Home Buying in Phoenix, Foreclosure in Phoenix, Rent vs Buy in Phoenix  |  August 16, 2012 12:57 PM  |  371 views  |  No comments

    Unless you’ve been hiding under a rock for the last few years, you’ve probably noticed the Arizona housing market desperately trying to stay afloat in our economy.  The increase of Arizona short sales and foreclosures has sent many homeowners packing in search for a rental property in Phoenix.  However, the tumultuous housing market has also brought on increased rental rates.  Many homeowners are left wondering what their options are after losing a property and many potential home buyers are wondering whether to rent or buy.  Here are three reasons why would-be home buyers are either choosing, or being forced, to rent.

    An increase of rental rates for AZ rental properties paired with home values that are dropping should immediately score one for buying a Phoenix property.  These days, a potential home buyer can save big bucks purchasing a short sale or foreclosure property in Arizona as their sale prices are usually listed thousands below the original asking prices.  So in theory, the market should be flooded with people trying to snatch up these valuable single family homes.  However, the real estate owned property influx is a double edged sword.  Though these properties are more affordable than ever, obtaining a loan to finance one is equally harder than ever!  Most lenders are reluctant to dole out funds to people without a sizable down payment and stellar credit and as a result, this has steered leery would-be homeowners right into the arms of renting.

    When rental rates increase, it makes it harder for those who want to buy to save up the down payment needed to purchase a property and as a result, many renters may feel trapped.  Despite the more affordable mortgage rates, most renters simply cannot afford to buy!  According to Trulia’s chief economist, Jed Kolko, "Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring homeowners face."

    In addition to uncertain housing trends, a shaky job market is another factor that keeps hopeful homeowners locked in an Arizona rental property or seeking a rental.  These days, few feel 100 percent secure in their careers and jobs and are afraid to commit to mortgage that could later become their debt filled downfall should they get laid off.

    Even if the statistics show that buying is cheaper than renting, many homeowners are still choosing to rent rather than buy.  If there’s one thing this uncertain economy is teaching, it’s that it never hurts to keep your options open either way. 

  • Will Homeowners Be Surfing A New Foreclosure Wave in 2012?

    Posted Under: Home Selling in Phoenix, Foreclosure in Phoenix, In My Neighborhood in Phoenix  |  August 16, 2012 12:56 PM  |  291 views  |  No comments

    When’s the last time you drove down the street and didn’t see signs for an Arizona short sale or a foreclosure property in Phoenix?  Or the last time you spoke to a neighbor or friend that wasn’t losing their home?  These days it’s a rarity, and an increasing number of AZ homeowners and Americans everywhere are feeling the pinch of unemployment and drowning in an underwater mortgage that they’re fighting to keep from foreclosure.  For every homeowner that saves a bundle on buying a short sale home or a foreclosure in Arizona and raising the home buying rates, it means another homeowner somewhere has just lost their home.  And while some experts insist that the foreclosure rates are slowly declining, most are still insisting that 2012 promises a new wave of foreclosures to prepare for.   Here are the reasons why:

    The wave of increasing 2012 Arizona foreclosures isn’t based solely on homeowner’s inability to pay their mortgages this year alone.  Due to the lengthy foreclosure process and noted “robo paperwork signing” scandal related to lenders in the past, some homeowners benefited by “squatting” in their homes without making mortgage payments for months, even years!  Even some renters that were renting a foreclosed home were able to dodge rent payments while the lender and homeowners hatched out the details.  But due to the recent 26 million dollar settlement, the nation’s five biggest mortgage lenders have agreed to speed up the foreclosure process for thousands of homes by creating new stringent guidelines that lenders must follow when repossessing homes. The revitalized standards of these new foreclosure programs will bring many of those previous pending foreclosure processes to a screeching halt this year and leave many homeowners little choice but to relocate an AZ rental property.

    To support this, Brandon Moore, CEO of RealtyTrac, recently stated that the "numbers point to a gradually rising foreclosure tide as some of the barriers that have been holding back foreclosures are removed."  Zillow also expects the resurgence in foreclosures this year, combined with excess inventory of unsold, bank-owned homes will contribute to a 3.7 percent national decline in prices before the market hits bottom in 2013 and stays there until 2016.  It’s hard to believe that the housing boom that started out with so much promise nearly ten years ago could burst and bottom out with so much backlash!  Yet here we are, trying to keep our heads above underwater mortgages and struggling to save our Arizona foreclosure properties.

  • Good News; Home Values Are Finally Rising Again!

    Posted Under: Home Buying in Phoenix, Foreclosure in Phoenix  |  August 16, 2012 12:38 PM  |  198 views  |  No comments

    Think you know the housing market?  You’re in for a pleasant surprise.  Not since the economic housing burst over five years ago, have we seen an increase of home values.  There has been more Arizona foreclosures, Phoenix short sales, and underwater properties than many could have ever anticipated.  However, recently there has finally been a break in the otherwise rock bottom home pricing pattern.  As of this last quarter, home values have been reported to be rising for the first time in five years according to Zillow.  Some very lucky sellers may actually be able to make a small profit on their Phoenix properties for sale, a feat that has been a rarity for many.

    Phoenix properties are reported to be the biggest gainer, with home values that have increased 12.1% year-over-year to a median of $136,200. These metro Phoenix home prices have continued to rapidly climb since May of 2012.  And the median sales price of a home in the region is up 32 percent from May 2011, according to the latest report from the W. P. Carey School of Business at Arizona State University.  It truly seems as though the region’s home prices have rebounded back, which is a great sign in this economy, despite the still low employment rates.

    So does this new increase of home values mean the housing market is quickly on its way to economic recovery?  Not necessarily.  Though home values and prices are gradually starting to rise, it doesn’t necessarily spell recession relief for the housing market just yet.  Pending Arizona foreclosures  and over 52% of homeowners owning more than their homes are worth have caused many to hold off on selling their homes right away.  More buyers and investors paired with fewer homes for sale is what is driving up the home values and causing this sudden rebound.  

    Only time will tell if this surge of housing values will continue and eventually level out the housing market once again.

 
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