Bidding wars? Time on market less than 2 weeks? February continued to indicate that the housing market is gaining strength. For the 3rd straight month, both Pending and Settled listings were at a 4-year high. Pending listings were 29% higher than the previous year for the 2nd straight month, while Settled listings were more than 10% higher. Furthermore, the housing affordability index has broken the 200 mark, meaning the typical family has roughly double the income needed to purchase a median-priced home. The problem for Buyers will occur at the peak of the spring market. In most neighborhoods in the Philadelphia suburbs, there will be a few weeks or a month this spring when the greatest flurry of Buyers will be buying. For that period demand will exceed supply. You will know it is happening when every house you look at sells quickly and most have multiple offers on them (already beginning to happen). During that period prices will peak and Buyers will be forced to pay a premium. Good Hunting!
Avoid Home Improvement Contractor Scams
Contractors are required to be registered with the commonwealth of Pennsylvania. Click here to screen and verify that you will be working with a reputable contractor.
Foreclosure prevention funding application deadline is Sept. 16
There’s still time for homeowners facing foreclosure to apply for the Emergency Homeowners’ Loan Program (EHLP) through the PA Housing Finance Agency (PHFA). The deadline to apply for EHLP assistance is September 16.
Pennsylvania received $105 million to aid homeowners facing foreclosure through the U.S. Department of Housing and Urban Development (HUD). This foreclosure prevention program is intended to help families in danger of losing their homes due to involuntary unemployment, under-employment or for medical reasons. [Read more...]
A Little Known Strategy for Cutting Mortgage Payments – “Recasting”
Recently the New York Times printed an interesting article on the concept of “recasting” as a means of lowering mortgage payments. From the article:
“A little-known strategy, called “recasting,” or “re-amortization,” is available through some mortgage lenders and servicers. It involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms. The lump sum reduces the principal, so your new monthly payments decrease slightly and you save on interest paid over the life of the loan.”
One of the primary appeals of recasting is that it typically involves no (or a small) fee and doesn’t require the credit requirements of refinancing.
To learn about recasting (and perhaps help some of your clients who may be looking for ways to lower payments) check out the full article here.
(If the link is not working, cut and paste the following in your browser: http://nyti.ms/fdHPlN)
Fannie Mae offers option to save home from foreclosure – “Deed for Lease”
Government-controlled mortgage company Fannie Mae is going to give borrowers on the verge of foreclosure the options of renting their homes for a year. The change announced Thursday could give a temporary break to thousands of homeowners, but critics question whether it will only add to the mushrooming losses at the company, which has received billions in taxpayer money. The new “Deed for Lease” program allows homeowners to transfer title to Fannie Mae and sign a one-year lease, with potential month-to-month extensions after that. It also helps to save money because the lender does not need to complete the often lengthy and time-consuming foreclosure process. Fannie Mae executives said the rental program is designed to help delinquent homeowners who do not qualify for a loan modification, but still want to stay in their home. Click here for more information.
Why You Shouldn’t Keep a Mortgage Just for the Tax Deduction
This is a post from CJ at WiseMoneyMatters.com. This post represents CJ’s viewpoints, which are not necessarily my viewpoints. (Although I, too, hope to pay off my mortgage early.)
I think this logic is misguided. Let me show you why. [Read more...]