Federal Government Institutes New Reduced Home Loan Limit

The first of October marked the government’s nationwide loan limit reduction on conforming loans.  The restrictions apply to bank made loans that the government will buy or insure.  During the harshest moments of the recession, these limits were actually increased to spur the economy.  In higher cost states like California and New York, the increased ceilings helped stimulate the economy, though to a minimal degree.

The market is still fragile, but proponents of the new limits believe that only a select few will be impacted including large balance borrowers in California.  Those unsure of the new restrictions don’t understand why the government is placing any form of impediment in the way of the housing market recovery.

For more information on the current housing market, or buying or selling your property, contact us at housingassist.com

Fix the Housing Market – and the Economy Might Rise Again

The economy and the housing market are hurting.  They’ve been hurting for a while, and if this is news to you, welcome back from your six year hiatus from reality.  Though there are small signs that the economy and the housing market are both making a comeback, the truth is, there has yet to be any real progress made.

The housing market is more a driving force for the economy than you may think.  House prices affect our spending.  Data shows that for every $1,000 our home value falls, we spend $50 less dollars.  The more we spend, the better our economy.  So why not focus more efforts on the housing market?  Well, efforts have been made, by the likes of the Home Affordable Refinancing Program (HAMP), but those eligible to participate are turned off by the additional and seemingly hidden charges.

Though there have been certain attempts to spur the housing market, there have been limitations and restrictions set as well, disabling homeowners from making any progress.  Maybe when realize our economy will turn around when the housing market does, there will be greater attention paid to assisting homeowners.

Short sales in Beverly Hills?

Short sales in Beverly Hills?

By: Joshua C Anderson

Published: Tuesday, 2 Aug 2011

Afshar Properties Chief Correspondent

Over the past few years the housing market has taken a turn for the worst, even in affluent communities such as Beverly Hills, Bel Air and Malibu, to name a few. Homeowners are left with few options once their property value declines. In some cases, the homes are owned free and clear, but in most they carry high ticket mortgages that seem to balloon as the market declines. If a home goes into foreclosure and sells at auction, the neighborhood will be adversely affected. Often times when the property is underwater, a homeowner can choose to short sale it as long as there is a legitimate hardship, and in 90 percent of the cases, there are.

Los Angeles based Housing Assist of America knows the short sale market better than most. With over 200+ short sales under their belt and one of the biggest names in real estate backing them, they are a short sale powerhouse. Coldwell Banker brought them on board in 2011 and hasn’t looked back since. The secret to their success lies in their ability to negotiate effectively with hardball lenders, an attribute that separates Housing Assist from the distressed property expert.

Overall the short sale is a proven method to alleviate debt and get a fresh start, no matter what the property is worth or how much you owe. It is always advantageous to the seller in every aspect, however in some cases there could be tax ramifications. Whether it’s a 250k home in a modest community or 1.5 million dollar villa in Beverly Hills, the banks just want to cut there losses and move on, The process is exactly the same, but keep in mind no two short sales are alike. Avoiding foreclosure at all costs should be a top priority to sellers. And recent research has shown that lenders are approving more and more of these complex transactions. As of April 2011, bank of America has completed well over 23,500 short sales nationwide, with Wells Fargo and GMAC at 13,500 apiece and counting. JP Morgan Chase has even offered some owners as much as $30,000 as an incentive to short sale their property.

If you owe more on your property than its worth and it’s a financial burden to make the payment, the answer should be quite clear, short sale.

Mortgage Applications Continue To Slump

Mortgage Applications Continue To Slump

The amount of home buyers and refinancers who applied for mortgages this week was recorded at two percent less then the amount who applied the week before.  This is concerning considering   the spring real estate market has just began, and the numbers of applications for mortgages were thought to increase.  

Though the number of home purchasers has risen recently by nearly seven percent, the amount of people refinancing has dropped over six percent.  Though it seems like a turnaround when you consider those numbers, keep in mind that the these percentages reflect the same numbers from the 1997 levels…which isn’t saying much.  

Save Money…Buy A Foreclosed House!

Save Money…Buy A Foreclosed House!

If you’re in the market and looking to buy, you should definitely consider purchasing a foreclosed house.  Houses being offered as ‘short sales’ should not be overlooked.  When a lender agrees to accept less then what a homeowner owes on his house, the property is put on the market as a ‘short sale’.  Buying distressed properties is tedious, but if you’re dedicated and willing, it will prove worth your while.

So what makes buying a foreclosed house so stressful?  Well, you’ll be dealing with multiple third parties instead of a single agent, and so the process is entirely time consuming.  This is particularly tedious because each of their third parties has a separate agenda and code to adhere to.  As you can imagine, there’s a lot of back and forth talk.

But if you’re thick skinned and can take the angst, you should seriously consider buying a distressed property.  And now for a few suggestions to help you out.  When you make an offer bid low, but not insultingly low, as the houses are already priced to sell (seriously!) Also, make sure you are pre approved to be financed before you even discuss a negotiation.  And lastly, make sure you generate a contract that give you leeway to terminate the sale if the house is not in the condition you presumed it to be.  Now take these tips to the bank, and get ready for a new house at a fraction of the price 

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