Buying in Today's Market / Short Sale Facts
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Transcript of Buying in Today's Market / Short Sale Facts
![Page 1: Buying in Today's Market / Short Sale Facts](https://reader037.fdocuments.in/reader037/viewer/2022110118/554e0e0fb4c90597278b56fd/html5/thumbnails/1.jpg)
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?”
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National Average Rent
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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
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Listed Between $160K - $170K
Dauphin County: 84 homes available
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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
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Not Going Away Anytime Soon
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Not Going Away Anytime Soon
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Not Going Away Anytime Soon
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Incentive to do Short Sales by Lenders
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Short Sale Overhaul?!?!
New guidelines adopted by
designed to speed up process.
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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
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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)
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What this Means for Short Sales?
• Make the process much more streamlined
• Make it more transparent
• Reduce excess inventory quicker
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Penalties for Non-compliance?
• ‘Compensatory’ fees could be due borrowers
• Servicers will be evaluated under the Servicer Total Achievement & Rewards Program (STAR) Huh?
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What this Means for Short Sales?
Will lenders really be able to change?
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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
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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
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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
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Absorption Rate Analysis3 Month Moving Average
February - April 2012
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Settled UnitsYear-to-Date Comparison
through April
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Average Sales PriceYear-to-Date Comparison
through April
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Average Days on MarketYear-to-Date Comparison
through April