Real Estate Information Archive

This just in from HUD:

Fannie Mae and Freddie Mac to Streamline Short Sales to Help Borrowers and Communities

New Timelines Take Effect in June

Washington, DC – The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to develop enhanced and aligned strategies for facilitating short sales, deeds-in-lieu and deeds-for-lease in order to help more homeowners avoid foreclosure. The effort will come in stages with the first taking place this June. The new, aligned timelines include the requirement that mortgage servicers review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer.

"FHFA and the Enterprises are committed to enhancing the short sales and deeds-in-lieu process as additional tools to prevent foreclosure, keep homes occupied and help maintain stable communities," said FHFA Acting Director Edward J. DeMarco. "These timeline and borrower communication announcements set minimum standards and provide clear expectations regarding these important foreclosure alternatives."

With the alignment, servicers will be required to do the following:

1. review and respond to requests for short sales within 30 calendar days from receipt of a short sale offer and a complete borrower response package;
2. provide weekly status updates to the borrower if the short sale offer is still under review after 30 calendar days;
3. make and communicate final decisions to the borrower within 60 calendar days of receipt of the offer and complete borrower response package.

By the end of 2012, Fannie Mae and Freddie Mac will announce additional enhancements addressing borrower eligibility and evaluation, documentation simplification, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance. 

This is a good move in the right direction and if other mortgage lenders would follow the uncertainty for many homeowners and their communities will improve.” 

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When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

We are all acutely aware of the looming overhang of distressed properties. Since the beginning of the year, we've been saturated with stories of millions of foreclosed and REO properties that are just waiting to hit the market as soon as the banks can complete the paperwork.

We came across some persuasive musings at Calculatedriskblog.com that lead us to believe that the distressed properties market might not be as bad as all that.

The author references Lending Processing Services data, which show about two million properties in the foreclosure process and another 1.7 million loans 90 days or more delinquent. Many of these loans, though, are in judicial states. They will still take considerable time to work through the courts, the author reasons. In other words, it's hard to imagine a huge wave of foreclosures, if anything it will be more like a sustained high tide in many judicial foreclosure areas.

There are also other extenuating factors at work that are often overlooked: we have lenders offering cash incentives to do short sales; government-sponsored rent-to-own programs that allow banks to hold properties as rentals; and HARP 2.0, which allows underwater borrowers to refinance and stay in their homes.

Distressing news always outsells uplifting news. The good news is the distressing news is rarely as distressing as it first appears. Remember the disaster that was supposed to occur on the huge Option ARM reset a few years ago? If you don't, don't worry; neither do a lot of other people.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

All good things really do end, and that includes optimism. Home builder sentiment had been improving measurably for the past seven months, until this month when the NAHB/Wells Fargo Housing Market Index fell three notches to score 25 compared with March's 28.

Many home builders had expected the volume of signed contracts to pick up at a faster pace by this time of year. Unfortunately, that hasn't been the case. Recent economic data over the past month point to a sputtering, if not stalled, economy.

The latest housing starts data, no doubt, impacted home builder sentiment. Starts dipped 5.8 percent in March after decreasing 2.8 percent in February. The March pace of 654,000 annualized units fell far below market expectations for 700,000 units. March's drop was driven by a nearly 20 percent decline in multifamily starts. Home builder sentiment might be down on volume, but it should be up on price. We were all somewhat concerned on the direction prices were taking at the beginning of the year, but that appears to have changed for the better in many markets. According to RE/MAX's latest price report, home prices in the 53 largest cities it follows increased 5.8 percent year-over-year, with the median sales price rising to $184,525, in March.

It's worth noting that RE/MAX CEO Margaret Kelly shares our sentiment on markets and prices, in that real estate markets are local, wholesale price declines are behind us, and prices are stabilizing and improving. Ms Kelly says, "Although we don't expect home prices to rise in every market at the same rate, the worst is definitely behind us, and a slow, steady recovery is taking hold." We couldn't agree more.On the other hand, we don't necessarily agree with many of our colleagues on mortgage lending rates. Rates have been volatile and mostly lower over the past two weeks. Rates are again near an all-time low. This has created another spurt of refinancing. Rising interest rates shook many borrowers back to reality. When rates dropped, borrowers didn't want to miss an opportunity that could prove fleeting.

Taking advantage of these low lending rates is a smart move. We've laid out a case over the past couple months on why we think interest rates will head higher, at least in the long term. No new data have convinced us otherwise.

Admittedly, it's impossible to predict interest rates with certainty in the near term, but a few factors are worth considering: We've seen a marked increase in rate volatility that has moved the market back to a sideways trend. To be sure, rates could be higher or lower over the next month, but given their proximity to all-time lows and their unwillingness to move lower, we think there's more risk than reward in waiting for still lower rates.

Last month, lending rates shot up nearly 50 basis points, which shocked many borrowers. Those who thought they missed the boat got lucky, but they might not be so lucky on the next lending rate spike.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Whether you are moving across town or across the country most Central Pennsylvania home buyers are looking for up to date information in the areas that you are moving to. We now have an continuous guide for many of the areas in Central Pennsylvania that we hope you will find beneficial when relocating. Please enjoy and let us know of any recommendations you want us to consider. The following Central Pennsylvania counties are included in this guide; Adams County, Cumberland County, Dauphin County, Franklin County, Fulton County, Huntingdon County, Juniata County, Lancaster County, Lebanon County, Perry County and York County. 

Welcome Home. The relocation guide to Central Pennsylvania!

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

It will be another month before anyone can take a look at the Gross Domestic Product for quarter one of 2012. Current information reveals that the last quarter of 2011 held a 3% clip for GDP, but the early indicators are revealing that there is a slight slippage from that pace. The economy’s ability to expand or grow, without kicking off inflation is thought to be around 2.8% GDP. However, as Chairman Bernanke points out, there needs to be considerably stronger growth for at least a little while, if the unemployment rate is to decline significantly.

According to the Chicago Federal Reserve National Activity Index – (an economic gauge which uses some 85 indicators to determine if the economy is growing faster or slower than its ‘potential’) – came in at a diminutive negative -0.09 for February 2012; down from a relatively brisk +33 in January. With the use of these figures, this puts GDP growth just shy of 2.8% for the month. 

In February, orders for durable goods moved to 2.2% higher. This positive news was a tad below economic expectations, and was not as much of an anticipated recovery from the 3.6% decline in January. However, it is very common to see swings from negative to positive and back again in durable goods ordered, while the current percentage holds its own.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Just as anticipated, mortgage rates have settled back a bit after its recent upward movement of fifteen basis points over the last two weeks. Widespread upward economic movement fostered the rise, but a more realistic approach to the economy’s forward momentum seems to be creeping back in.

Rates have bumped off a little from their historic bottoms of February, but the modest movement should not create any additional disturbance or turbulence for the housing market. Even in the worst-case scenario, the eighth percentage point increase in a loan’s interest rate is probably not enough to ruin most deals. Especially since that slight increase could be ‘brought down’ through the payment of approximately a half-point fee, perhaps less.

It should be no surprise to anyone who has applied for a loan recently that banks are being much more careful. A new repost indicates just how tight conditions have become – and how even borrowers with favorable credit profiles are being denied. Loans closed by banks and mortgage lenders in February had borrowers with an average credit score of 750; this average is up from 740 six months earlier, and an average loan-to-value ratio of 76%, with the average denied loan having a credit score of 699 and a loan-to-value ratio of 83%.

While there is no hard downshift in economic activity, research shows that essentially, with the new spring housing season approaching, we are in the same boat, just with more favorable mortgage rates. An accumulation of February data and early data available for March suggests that activity is stabilizing with a softer trend beginning. Federal Chairman Bernanke’s reassurance about the direction of interest rates doesn’t hurt either, in terms of trimming any upward pressure for current rates. 

Recent weekly data is reinforcing the notion that a cooler economic climate is in formation. Claims for new unemployment benefits moved downward in January to a rate which is the lowest it has been in 4 years. However, the unemployment benefits rate does not incorporate in statistics about workers who are under-employed. Approximately 9.3 million workers are considered underemployed as defined by the Bureau of Labor Statistics. That number is up from just over 8 million in July 2011, but down from a peak of approximately 9.5 million in September 2010. Overall, employment gains for March will be no better nor no worse than February.

Courtesy of Jessica Regan.

Search all Harrisburg PA homes for sale.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.