Wednesday, February 22, 2012
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Foreclosure filings up or down? Whose report is right?

Feb. 21, 2012 Miami, FL - Mortgage Lending News: If you were paying attention on Thursday, you saw two different stories about the housing market: The Mortgage Bankers Association said delinquencies and foreclosures fell in the fourth quarter of 2011 while RealtyTrac said foreclosure filings rose in January.

One simple way to account for the difference: They’re looking at different points in time. But it’s also worth noting that the reports are generated using two different methodologies.

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Reverse mortgages on the rise.

Feb. 21, 2012 Miami, FL - Mortgage Lending NewsConverting home equity into cash has been a challenge for homeowners since the real-estate downturn, but a growing number of lenders are quietly reviving a loan for seniors that does just that: the reverse mortgage.

Reverse mortgages allow homeowners who are at least 62 years old to draw down on their home's equity in exchange for cash in several ways, including one lump sum, a line of credit or monthly payments.

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Mortgage foreclosures and delinquencies hit three-year low

Feb. 16, 2012 Miami, FL - Mortgage Lending News: The percentage of mortgages at least one payment past due fell in the fourth quarter of 2011 and fewer loans entered the foreclosure process, reflecting improvement seen in the economy, the Mortgage Bankers Association reported on Thursday.

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The current housing crisis may determined this year's election.

Feb. 17, 2012 Miami, FL - Mortgage Lending News:The housing market has never been a major factor in a presidential election.  Sometimes, the topic has hardly garnered more than a passing mention by either political party. 

Right now, housing is not yet a front-and-center issue for President Obama or any of the Republican presidential hopefuls. But no less than five national surveys indicate that the issue is a top-of-mind topic among voters. Granted, the polls were undertaken by real-estate-centric organizations — Realtor.com, the National Association of Home Builders, HouseLogic, Yahoo Real Estate and Trulia. But the unanimity of their findings underscores just how worried current and future owners are about their homes.

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JP Morgan Chase, and UBS are threaten to be downgraded two levels by Moody's.

Feb. 16, 2012 Miami, FL - Mortgage Lending News: UBS AG, Credit Suisse Group AG (CSGN) and Morgan Stanley’s credit ratings may be cut by as many as three levels by Moody’s Investors Service, which is reviewing 17 banks and securities firms with global capital markets operations.

Goldman Sachs Group Inc. (GS), Deutsche Bank AG (DBK), JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) are among companies that may be downgraded by two levels, Moody’s said in a statement, adding that the “guidance is indicative only.” Moody’s today cut some European insurers’ ratings based on risks stemming from the region’s sovereign debt crisis.

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Federal Housing Administration will exhaust its reserves next year.

Feb. 16, 2012 Miami, FL - Mortgage Lending News:  The Federal Housing Administration will exhaust its reserves over the coming year, according to budget projections released Monday, which would require a Treasury infusion for the first time in its 78-year history.

But Obama administration officials said more recent developments, including fines that will go to the FHA from last week's $25 billion mortgage settlement with five major banks, could cover any shortfall and obviate the need for taxpayer funding.

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San Francisco officials finds foreclosures riddled with errors

An audit by San Francisco county officials of about 400 recent foreclosures there determined that almost all involved either legal violations or suspicious documentation, according to a report released Wednesday.

Anecdotal evidence indicating foreclosure abuse has been plentiful since the mortgage boom turned to bust in 2008. But the detailed and comprehensive nature of the San Francisco findings suggest how pervasive foreclosure irregularities may be across the nation.

The improprieties range from the basic — a failure to warn borrowers that they were in default on their loans as required by law — to the arcane. For example, transfers of many loans in the foreclosure files were made by entities that had no right to assign them and institutions took back properties in auctions even though they had not proved ownership.

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Model homes can be a visual illusion PDF Print E-mail
REO News
Friday, 01 July 2011 10:37

New-home marketing has changed drastically over the last few years. But one thing remains constant, the model home.

Builders aren't putting up as many of them as they did when the market was flourishing. Nowadays, one model might suffice when three or even four were necessary a decade ago to showcase a builder's wares. After all, sample homes are expensive to carry, let alone outfit, and construction money is tough to come by these days.

Still, more often than not, models are decorated to the hilt. As highly furnished specimens of the builder's best work, they are designed to let a potential owner's imagination run wild.

Many buyers, however, they are an optical illusion — giving the impression that the place offers far more space than is actually there. And with the trend toward smaller houses, it's easy for unwary buyers to be fooled into thinking they are getting more for their money than they really are.

After peaking at 2,530 square feet in 2007, the average size of the typical new house has fallen to 2,367 feet, according to the latest figures from the Commerce Department. And a National Assn. of Home Builders survey indicates that the slide will continue. By 2015, respondents predicted the average size would drop to 2,152 square feet.

Areas of the home likely to shrink as a total share of overall space  are the entry foyer, living room and dining room, according to Rose Quint, who heads the NAHB's research section.

Consequently, the assignment for interior designers is not only to make model homes appealing; it's also to make them seem larger.

One design "trick" is to use scaled-down furniture rather than full-size couches and tables. Another is to opt for glass tops and chairs with thin, spindly legs (as opposed to more bulky recliners) so the untrained eye sees right through them.

And all too often, would-be buyers let their hearts rule rather than their heads, and they wind up with a place in which their own furniture just doesn't work. Worse, it may not even fit. So unless you were planning to redecorate anyway, that could be a costly miscue.

That's why savvy purchasers buy from the inside out. After all, the same house is often offered in a choice of facades. But no matter which front you choose, the floor plan usually remains the same.

To make sure that the houses you are considering work for you and your family, carry a pad and pencil or camera on your tour.

Above all, hang on to the builder's brochure. It will be your greatest resource when you get home. Even if you took pictures, the floor plan in the brochure will be your only visual representation of each room's dimensions and how they relate to one another.

Once you're past the excitement of finding a house you like above the others, take a good, hard look at the plan. First, count the rooms, note their size and mentally place your furniture where you think you would like it.

Count the closets too, making sure that each bedroom has a decent-sized one, the foyer has a place for coats, and the linen closet is near the bathrooms.

Now look at the juxtaposition of all the rooms to one another and figure out the traffic patterns. Make sure that you don't have to go through the living room every time you head to the kitchen, for example, or that you don't have to traipse through the family room to get to the stairs.

Next, look closely at every room, paying particular attention to window placement and the electrical outlets. These are so important that it's worth another trip to the model just to know exactly where they are.

If there aren't enough outlets, or if they're not in the right place, you could end up with extension cords all over the place. And good window placement makes for good furniture placement, so you'll need enough solid interior wall space for the dresser and headboard in each bedroom. Otherwise, you may have to sleep with the bed up against or under a window.

If you've gotten this far, chances are you're smitten with a particular floor plan. So your next step should be to make a scaled drawing of each room on graph paper, making sure that you note electrical outlets, light switches, heating and air conditioning vents, windows and whether doors open to the right or left.

Now measure the width, depth and height of your furniture, make scale drawings of each piece and cut them out. Then put each item in its appropriate room, and move the items around until you have a satisfactory arrangement.

Even if you expect to buy a houseful of new furnishings, it is a good idea to go through this exercise to avoid getting stuck with pieces that don't fit. And you don't have to be a Rembrandt to do it.

Several companies offer home-design kits with to-scale vinyl or magnetic symbols for virtually every building component and furnishing item. Generally, there are enough pieces to lay out a 6,000-square-foot, five-bedroom house.

By: Elizabeth Martinez, Editor
Mortgage Lending News, LLC
http://www.mortgagelendingnews.com
Miami, FL
Tel. (305) 280-7400

 

 

 



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Last Updated on Friday, 01 July 2011 14:39
 

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