buying in today's market / short sale facts
DESCRIPTION
Does the typical first-time homebuyer in today's market really understand what type of market we're in? Here is a different way to show this segment of the market that NOW is the right time to buy. Short sale facts and figures are reviewed in addition to a brief overview of the government's latest endeavor to streamline the short sale process. Miscellaneous items: - Title insurance rates are changing in Pennsylvania. Get the facts. - The latest Prudential Homesale commercial is presented. - Changes reviewed in the new PAR agreements for Vacant Land and New Construction. - Market statistics for Central PA for the month of April 2012.TRANSCRIPT
Why is now a good time to buy?
• Historically low interest rates• Wide selection of properties• Bottom of the market
“What does that mean for me?”
National Average Rent
Monthly Payment Analysis
Principal & Interest
Taxes ($2,800/yr.)
Insurance ($400/yr.)
PMI
Total Monthly Pymt.
$ 808.34
233.33
33.33
50.00
$ 1,125.00
$169,315
Listed Between $160K - $170K
Dauphin County: 84 homes available
Short Sales
• 1.5 million homeowners at least 90 days late on their mortgage
• 12.5 million homeowners ‘underwater’ in their home
SOURCE: Mortgage Bankers Association
Not Going Away Anytime Soon
Not Going Away Anytime Soon
Not Going Away Anytime Soon
Incentive to do Short Sales by Lenders
Short Sale Overhaul?!?!
New guidelines adopted by
designed to speed up process.
What’s Changed for Short Sales?
New guidelines effective on June 15
• Lender has 30 days to review and respond to short sale requests
• If lender needs more than 30 days, they must provide the borrower weekly updates and a final response within 60 days
What’s Changed for Short Sales?
• Program is usually used prior to putting the home on the market to establish an acceptable sales price
• Same guidelines apply
(Home Affordable Foreclosure Alternative)
What this Means for Short Sales?
• Make the process much more streamlined
• Make it more transparent
• Reduce excess inventory quicker
Penalties for Non-compliance?
• ‘Compensatory’ fees could be due borrowers
• Servicers will be evaluated under the Servicer Total Achievement & Rewards Program (STAR) Huh?
What this Means for Short Sales?
Will lenders really be able to change?
Revised PAR Agreements
New Construction Agreement
• Expanded broker blocks
• Updated deposit language
• Change in buyer’s financial status
• Multiple additional clauses to bring it in line with standard agreement of sale
Revised PAR Agreements
Vacant Land Agreement
• Expanded broker blocks
• Financing options
• Change in buyer’s financial status
• Multiple additional clauses to bring it in line with standard agreement of sale
NEW Title Insurance Rates
• State regulated rates changing
• Reissue Rate is no longer an option
• Different rates for sales vs. re-fi’s
• Rates will go into affect starting June 1, 2012
Absorption Rate Analysis3 Month Moving Average
February - April 2012
Settled UnitsYear-to-Date Comparison
through April
Average Sales PriceYear-to-Date Comparison
through April
Average Days on MarketYear-to-Date Comparison
through April