HUD offers services to public in 175 languages

January 21, 2012

HUD recently announced the launch of the HUD Language Line, a telephone language service pilot that will offer live, one-on-one interpretation services in more than 175 languages. Accessible throughout the nation, the language line will help HUD staff to better communicate with Limited English Proficient (LEP) individuals and families about HUD housing programs, services, and activities.

The pilot program will run through September 2012. HUD staff across the nation will be able to use the HUD Language Line to provide non-English-speaking individuals and families with information about fair housing, homeownership, lead abatement, housing assistance, and other HUD programs and services. When a person with limited English proficiency contacts the Department, the HUD staff person taking the call will contact the Language Line and speak with a live operator, who will connect the caller and HUD staff person with an interpreter who speaks the caller’s language.

HUD also offers a Limited English Proficiency website to promote equal access to housing programs by providing important HUD documents in 18 different languages. HUD’s expanded LEP website features factsheets, housing brochures and other HUD forms in Amharic, Arabic, Armenian, Cambodian, Chinese, Creole, Farsi, French, Hmong, Khmer, Korean, Lao, Polish, Portuguese, Russian, Spanish, Tagalog, and Vietnamese, in addition to English.

The site offers brochures on fair housing, model lease agreements, information about HUD’s Housing Choice Voucher Program (Section 8), and Resident Rights and Responsibilities. The larger LEP initiative is in response to Executive Order 13166, which requires all federal, local and state agencies that receive federal funding to ensure that people with limited language skills have meaningful access to government programs and services.

: Real Estate News
: , , , ,

Behind The Housing Starts Headlines, The Story That Matters

January 20, 2012

Housing Starts 2010-2011

When it comes to housing data, sometimes you have to look past the headlines. December’s Housing Starts data offers a terrific illustration of why.

Each month, the Census Bureau tallies Housing Starts for the month prior. A “housing start” is a home on which construction has started.

The Housing Starts report is separated by property type. There is a count for single-family homes; a count for 2-4 unit homes; and a count for buildings of 5 units or more, a category including apartments and condominiums.

In December, as reported by the government, Housing Starts fell 4 percent nationwide overall. This runs contrary to recent strength in housing and the story was quickly picked up by the press :

Now, although these headlines are factually true, they’re also are a little bit misleading.

Housing Starts did fall 4 percent last month but that was for all Housing Starts, across all three property types. Data like this is somewhat irrelevant to home buyers in California or anywhere else nationwide.

Few buyers purchase 2-4 unit homes, and almost nobody purchases an entire apartment building. Rather, it’s the Housing Starts reports’ “single-family” tally that matters because that’s the home type that the majority of home buyers purchase.

In December, for the fourth straight month, Single-Family Housing Starts increased.

Single-family housing starts climbed 4 percent last month to 470,000 units on a seasonally-adjusted, annualized basis. This is the highest number of Single-Family Housing Starts since April 2010 — the last month of last year’s home buyer tax credit.

The Single-Family Housing Starts data is the latest in a series of data that point to a housing rebound nationwide. New Home Sales, Existing Home Sales, Pending Home Sales and Homebuilder Confidence has each posted multi-month highs and all are poised for strong gains into 2012.

If you’re planning to buy a home in 2012, consider buying in between now and March rather than at some point later. San Diego home prices — and mortgage rates- are likely to move higher.

: Carlsbad Real Estate, Housing Analysis, Oceanside Real Estate
: , ,

Foreclosure Filings Fall To 49-Month Low

January 18, 2012

Annual Foreclosure Change, Top 10 States, December 2011

Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac.

In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.

The drop does not appear to be seasonal, either.

Last month’s foreclosure filings were down 20 percent from December 2010 with “foreclosure filing” defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. As a result of a unexpectedly strong year-end, 2011′s annual foreclosure rate was the lowest in 4 years.

One reason why the year may have closed so strongly is that Nevada, California, Michigan and Arizona — four states typically associated with high rates of foreclosures — each posted big drops in foreclosure filings between November and December, plus double-digit drops between December 2010 and December 2011.

In fact, among the country’s top 10 states for foreclosure activity, nine showed an annual foreclosure filing reduction.

Only Delaware worsened.

It’s also noteworthy that just 4 states accounted for half of last month’s total foreclosure filings.

  • California : 25.8 percent of all foreclosure filings
  • Florida : 12.0 percent of all foreclosure filings
  • Michigan : 6.4 percent of all foreclosure filings
  • Illinois : 6.2 percent of all foreclosure filings

Foreclosures are heavily concentrated, in other words. By contrast, the last 1% of activity is spread across 14 states.

As a Oceanside home buyer — first-timer or investor — foreclosures can be a great way to find value.

According to the National Association of REALTORS®, distressed homes typically sell at “deep discounts“ as compared to like, non-distressed homes. However, when you buy a foreclosure home from a bank, it’s different from buying a home from a “person”. Purchase contract negotiations are different and months may pass before your closing is approved.

If you’re buying foreclosure, therefore, seek the help of a professional real estate agent. Real estate agents have experience working in the process-heavy world of foreclosures and can help you come out ahead.

: Carlsbad Real Estate, Housing Analysis, Oceanside Real Estate
: , , , , , , ,

Will Home Values Rise This Year

January 13, 2012

Will your home gain value over the next 12 months? Nobody can know for sure, of course, but should recent housing trends continue, there’s concrete cause for optimism.

The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down. 

Mortgage rates are down, too, and that’s good news for buyers in Carlsbad. The combination of low rates and low prices has led home affordability to an all-time high. As you’ll hear in this 4-minute interview with NBC’s The Today Show, carrying a mortgage costs 25% less per month as compared to just 3 years ago.

Some other notes from the interview include :

  • There are more buyers out looking for homes today, which leads to more sales
  • The housing market is expected to get gradually better, month-by-month, in 2012
  • Foreclosures will continue to be a big part of the housing market

With housing supplies shrinking, buyers throughout California may find their best “deals” today — before the Spring Buying Season begins in February.

However, we can’t forget that housing markets are local — not national. Each town and neighborhood has its own market drivers and prices where you live may have already started to climb.

For accurate, up-to-date data on the housing market, talk with a local real estate agent. 

: Personal Finance
: , ,

Fed Minutes Show An Improving U.S. Economy Threatened By The Eurozone

January 12, 2012

FOMC Minutes December 2011The Federal Reserve has released the minutes from its most recent Federal Open Market Committee meeting. The Fed Minutes are a detailed meeting recap; the companion piece to the more brief, more well-known press release.

As a comparison, the minutes of the last FOMC meeting contained 60 paragraphs and 7,027 words. The post-meeting press release was just 5 paragraphs and 382 words.

December’s Fed Minutes shows Fed members with a positive, cautious, take on the economy.

Recent data suggests that the U.S. economy is expanding, the Fed said, but “strains” in global financial markets pose “significant risks” to the downside. This tell us that the Fed believes its economy-stimulating programs are working, but that officials remained concerned by events in the Eurozone.

The U.S. economy could be impacted by fallout.

Other meeting consensus included :

  • On growth : The economy is expanding, despite slowing in “global economic growth”
  • On housing : Data suggests the “depressed” market “could be improving”
  • On inflation : Prices are stable, and remain within tolerance levels

The Fed’s analysis was of little surprise to Wall Street, and going forward, Fed Chairman Ben Bernanke wants to keep it that way. The Fed Minutes contained a passage regarding market communication, and how the Fed will be more pro-active about it in the future.

With the release of its minutes, in a section called “Market Policy Communications”, the Federal Reserve showed its plans to release 4 times annually its economic forecasts, and plans for the Fed Funds Rate. This signals in a shift in Federal Reserve transparency.

The Federal Reserve will begin including the forecast in its economic projections beginning after its next policy meeting, January 24-25, 2012.

Mortgage rates in California were little changed after the release of the Fed Minutes.

: Federal Reserve
: , ,

Home Affordability Set To Worsen On Thursday’s Retail Sales Data

January 11, 2012

Retail Sales Growth (2008-2011)

Consumer spending continues to rise nationwide, fueled by jobs growth and a rosier outlook for the U.S. economy. Unfortunately for mortgage rate shoppers |*STATE in % STATE**|, it may also lead to higher mortgage rates later this week.

Thursday morning, the Census Bureau will release its U.S. Retail Sales data for December. The report is expected to show an 18th consecutive monthly increase, with analysts projecting sales volume higher by 0.4 percent from November.

This would be double the increase from last month, which saw a 0.2 percent increase in Retail Sales.

The Retail Sales report tallies receipts collected by retail and food-service stores nationwide. When the sum of these receipts rise, it puts pressure on mortgage rates to do the same. The connection is straight-forward.

Retail Sales are the largest part of “consumer spending” and consumer spending accounts for the majority of the U.S. economy — up to 70 percent, by some estimates.

As the economy goes, so go mortgage rates.

Remember: today’s ultra-low mortgage rates have been partially fueled by weak economies — both domestic and abroad — going back 4 years. Stock markets have sold off as economies have faltered worldwide, leading investors to seek refuge in the relative safety of U.S.-backed mortgage bond market. The new-found demand for mortgage-backed bonds has helped drop mortgage rates to levels never seen in history.

When economic recovery is apparent, therefore, we should expect a mortgage rate reversal, and should expect for it to happen quickly. Stock markets should rise; bond markets should fall. Mortgage rates will climb. Rate shoppers will lose.

Last week’s strong jobs report sparked hope for the U.S. economy. If Thursday Retail Sales data reveals similar strength, the risk in “floating” your mortgage rate may be too great. The safer play is to lock your rate today.

The Retail Sales report will be released at 8:30 AM ET.

: The Economy
: , , ,

Lock Your Mortgage Rate New Loan Fees Expected Within Days

January 10, 2012

Payroll tax fees for new loansStarting soon, nearly all home buyers and refinancing households throughout California and nationwide will pay higher mortgage loan fees. Congress has made it law.

13 months ago, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress enacted a one-year cut to FICA payroll taxes.

FICA stands for Federal Insurance Contributions Act. Taxes collected under FICA fund such programs as Social Security and Medicare.

The stimulus plan temporarily lowered tax rates for salaried workers from 6.2% to 4.2%; and for self-employed persons from 12.4% to 10.4%. Effective January 1, 2012, “regular” tax rates were to return.

That is, until late-December 2011. In one of its last moves of the year, Congress passed a temporary, two-month extension to the payroll tax cut, extending it through February 29, 2012. The expected cost to the U.S. Treasury is $33 billion.

To recoup those costs, Congress has turned to Fannie Mae, Freddie Mac and the FHA.

Each entity has been ordered to collect news fees on each new mortgage is backs, and has been told to forward said fees to U.S. Treasury directly. There’s no “workaround” allowed or forgiveness applied — each new loan is subject to the payment.

The rules are listed on page 17 of the law’s final draft, in a section unambiguously titled “Title IV — Mortgage Fees and Premiums”.

According to the law :

  • Fannie Mae and Freddie Mac must collect an average fee of no less than 10 basis points (0.1%) per new loan
  • The FHA must raise its monthly mortgage insurance premiums 10 basis points for all new loans

The expected cost to consumers is no less than $10 monthly per $100,000 borrowed. Some analysts, however, expect Fannie Mae and Freddie Mac to collect more than is minimally required. This could add an additional $30-50 to your monthly mortgage payment per $100,000 borrowed.

Therefore, if you’ve been shopping for a home or for mortgage rates in Oceanside , take advantage. Within days, lenders are expected to start collecting Payroll Tax Extension fees from mortgage applicants — a move that will cost you money.

Lock today to avoid the big fees. Save yourself money.

: The Economy
: , , ,

How To Clean Your Microwave Without Harsh Chemicals

January 9, 2012

Clean microwaves, organicallyMicrowaves are often well-worn. Spills and splatters dot their ceilings; splattered food stuffs line their walls.

To clean your microwave, you can use the harsh chemicals on sale at supermarkets and hardware stores, or you can apply an all-natural approach which yields the same results, with only slightly more preparation time.

The extra time may be worth it, too, considering that the chemicals of an over-the-counter cleaner may seep into your foods over time.

To keep your microwave fresh and clean, using organic materials only, here’s what to do :

  1. Unplug your microwave from the wall for safety.
  2. Gather a microwave safe bowl; 1 1/4 cups of water; a lemon; baking soda; white vinegar; and cleaning cloths.
  3. Slice the lemon and place the slices into your bowl. Add the water.
  4. Heat the bowl in the microwave for 7 minutes. Leave the microwave door closed for an additional 5 minutes.
  5. Remove the bowl (CAUTION : Bowl will be hot).
  6. Remove the microwave’s glass cooking surface and wheel system. Hand wash and set aside to dry.
  7. Dip a clean cloth in the lemon water mixture.
  8. Wipe down the microwave’s exterior and interior surfaces, remoistening the cloth as required.
  9. Moisten a clean cloth with vinegar. Wipe down the microwave door’s interior surface.
  10. Replace glass and wheel system, and plug the microwave back in to the wall.

If you find lingering stains in your microwave, mix baking soda with water to form a thick paste. Dip a corner of your cleaning cloth into the paste and apply it to the stain directly, gently rubbing in a circular motion until the stain is gone.

Microwaves should be cleaned at least once weekly for optimal performance.

: Around The Home
: , ,

FHFA revises HARP to help more borrowers

January 8, 2012

The Federal Housing Finance Agency, along with Fannie Mae and Freddie Mac,  announced changes to the Home Affordable Refinance Program (HARP) to help more borrowers.

The program will continue to be available to borrowers with loans sold to Fannie Mae and Freddie Mac on or before May 31, 2009, with current loan-to-value (LTV) ratios above 80 percent.

The new program enhancements address several other key aspects of HARP including:

-Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers
-Removing the current 125 percent LTV ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac
-Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac
-Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises
-Extending the end date for HARP until Dec. 31, 2013, for loans originally sold to the Enterprises on or before May 31, 2009.

Fannie and Freddie plan to issue guidance with operational details about the HARP changes to mortgage lenders and servicers by Nov. 15. Since industry participation in HARP is not mandatory, implementation schedules will vary as individual lenders, mortgage insurers and other market participants modify their processes.

: Loan Modification, Real Estate News, San Diego Real Estate
: , , , , , , ,

Congress reinstates FHA loan limit

January 8, 2012

The U.S. Congress passed a “minibus” appropriations measure that will continue to fund the government and includes a provision to reinstate the FHA loan limit in high-cost areas for two years.  President Obama signed the measure into law Friday.

The higher Fannie Mae, Freddie Mac, and FHA conforming loan limits of $729,750 expired Oct. 1, when it was reduced to $625,500.  The passage of H.R. 2112 provides for an extension of FHA-insured mortgages at the higher level through December 2013.  It also provides for a short-term extension of the National Flood Insurance Program (NFIP) through Dec. 16, 2011.  C.A.R. and NAR strongly urge Congress to work on a five-year NFIP reauthorization bill to provide certainty and avoid further disruption to real estate markets.

“C.A.R. is pleased the Senate and House were able to come to a reasonable compromise on extending the FHA loan limit to ensure affordable home financing for middle-class buyers,” said 2012 C.A.R. President LeFrancis Arnold.  “However, we are disappointed that the Senate and House could not agree on increasing the loan limits for Fannie Mae and Freddie Mac, especially since the Senate bill included a premium on high-cost loans that protected U.S. taxpayers from footing the costs.”

C.A.R. and the NAR have long advocated making permanent higher loan limits. The San Diego conforming loan limit is currently at $546,250. If you are looking to get pre-qualified for a San Diego home loan, contact me for a reputable lender referral or visit my preferred lender through our Summit Realty Group portal HERE.

: Carlsbad Real Estate
: , , , ,
Bombax Theme designed by itx