Everybody Calm Down! The Sky Is NOT Falling

June 6, 2012 By Bill Barbin Leave a Comment

Posted: 05 Jun 2012 04:00 AM PDT

After weeks of continuous good news about the housing market, the naysayers jumped all over this month’s Pending Sales Report from the National Association of Realtors (NAR). Pending sales were down from the previous month. This must be proof that all that other positive news on real estate should be ignored – right? WRONG!!

It is true that this month’s numbers were down from last month. However, we must realize we are comparing the numbers to the best month in two years. The numbers are 14.4% higher than the same month last year. Below is a graph showing the pending sales numbers over the last two years. You can decide whether it is showing a recovering market or not.

Everybody Calm Down! The Sky Is NOT Falling.

Filed Under: Bartlett NH real estate, Jackson NH real estate, North Conway Foreclosures Tagged With: Bartlett NH, Bartlett NH condo, Bartlett NH Condos, Bartlett NH real estate, Bartlett NH ski chalet, jackson nh real estate, North Conway NH bank owned real estate, North Conway NH foreclosures

Vacant Homes Pose Risks for Agents by Inman News

June 5, 2012 By Bill Barbin Leave a Comment

Vacant homes pose risks for agents

Squatters — or worse — may be lurking in REOs

By Inman News, Tuesday, June 19, 2012.

Inman News®

<a href="http://www.shutterstock.com/pic.mhtml?id=28422466">Vacant home</a> image via Shutterstock.

Vacant home image via Shutterstock.

By DAVID W. MYERS

It was a typical balmy Southern California afternoon when veteran agent Stephanie Janeshak of Tarbell Realtors in Corona stopped by a modest-sized foreclosed home to give it a preview before showing it to one of her clients.

She had toured dozens of vacant properties before and was comfortable with the task — so much so that she brought her 2-year-old toddler with her because a babysitter wasn’t available.

The front of the home was in fairly decent shape, Janeshak recalls, so she retrieved the keys from the lockbox on the door and walked in. The kitchen looked OK, and so did the living room; there were no broken windows or graffiti on the walls, two tell-tale signs that the home might be occupied by squatters or drug dealers.

And then, she opened the door to the bedroom.

http://www.inman.com/news/2012/06/19/vacant-homes-pose-risks-agents

Filed Under: Bartlett NH real estate, Buying a NH home, Jackson NH real estate, NH Bank Owned, North Conway Foreclosures, North Conway NH bank owned, North Conway NH foreclosed real estate, North Conway NH real estate Tagged With: Bartlett NH Condos, Bartlett NH real estate for sale, Bartlett NH ski chalet, jackson nh real estate, North Conway NH bank owned real estate, North Conway NH commercial lease, North Conway NH Commercial real estate, North Conway NH condos, Tamworth NH foreclosure

Sales Are Up. Prices Still Have a Way To Go.

May 15, 2012 By Bill Barbin Leave a Comment

Posted: 15 May 2012 04:00 AM PDT

We believe the housing market is recovering. We believe that sales will be robust through the rest of the year. However, we also believe that the increase in demand will not impact prices in a big way as we think there will also be an increase in the supply of homes coming to the market. This increase in supply will offset the increase in demand. The increase in supply will be fueled by two categories of inventory:

Foreclosures entering the market as a result of the National Mortgage Settlement
Pent up supply of homeowners who have been unable to sell their homes over the last several years

There have been several recent headlines making strong statements about home values in the country. We must be sure to read the ENTIRE report – not just the headlines. Here are four headlines and the portion of the report that reflects the caution in their ‘cautious optimism’.

HEADLINE:

LPS Home Price Index Shows U.S. Home Price Increase of 0.2 Percent in February; Early Data Suggests Further Increase of 0.3 Percent is Likely During March

CAUTION:

“Reasons for caution are clear, as we’ve been here before. Non-seasonally adjusted prices increased for a few months in early 2009, 2010 and 2011 – trends that all ended by summer, after which all the gains – and then some – were lost. As is true this month, those temporary increases were on low sales volumes – about 30 percent lower than at any point since 1998. Furthermore, the inventory of distressed homes remains high, which will continue to put a drag on prices.”

HEADLINE:

Foreclosure hotspots show signs of housing turnaround

CAUTION:

“However, much will depend on the continued health of our economy, specifically job rates, and how lenders will release their foreclosure inventories now that the 49 state AG Agreement has been signed.”

HEADLINE:

Fiserv Expects Home Prices to Stabilize

CAUTION:

“On the other hand, nearly one-half of the metro areas, or 191, saw prices decrease by more than 2 percent, including double-digit losses in Atlanta (-12.8 percent), Reno, Nevada (-10.8 percent), and Tucson, Arizona (-10 percent).

In the fourth quarter of 2011, the average price of a U.S. single-family home fell four percent from the year-ago period, and Fiserv Case-Shiller projects a further decline of 0.8 percent by the end of 2012.”

HEADLINE:

Home Prices in March Show Monthly Gain: CoreLogic

CAUTION:

“Even with price gains above 5 percent for leading states and CBSAs, Capital Economics said in response to the CoreLogic report that over the year, prices are more likely to stabilize rather than make a dramatic climb.

“There are fears in some quarters, triggered by recent disappointing GDP and payrolls data, of a sharp slowdown in economic growth which could derail the fledgling improvement in the housing market,” said Paul Diggle, property economist for Capital Economics.”

Sales Are Up. Prices Still Have a Way To Go..

Filed Under: Bartlett NH real estate, Buying a NH home, Jackson NH real estate, NH Bank Owned, North Conway Foreclosures, North Conway NH bank owned, North Conway NH foreclosed real estate, North Conway NH real estate Tagged With: Bartlett NH, Bartlett NH condo, Bartlett NH real estate for sale, Bartlett NH ski chalet, jackson nh real estate, North Conway NH, North Conway NH bank owned real estate, North Conway NH Commercial real estate, North Conway NH homes for sale, North Conway real estate, Tamworth NH foreclosure

Finding a Short Sale Expert

May 12, 2012 By Bill Barbin Leave a Comment

Posted: 11 May 2012 04:00 AM PDT

This week, we have spoken about the importance of using an agent trained in the short sale process when selling or buying a home as a short sale. Today, we want to address how to identify those agents who are truly qualified. There are many local instructors who have done excellent work in this field. We appreciate their dedication and commitment. However, there are three designations recognized on a national basis. Here they are:

Certified Distress Property Expert (CDPE)

One of the first designations available in the field, CDPE has reached the milestone of 40,000 real estate professionals trained in foreclosure avoidance tools and strategies through the Certified Distressed Property Expert (CDPE) Designation course. CDPE is the fastest-growing independent designation in real estate industry history.

The CDPE designation is administered by the Charfen Institute which educates and trains real estate professionals and small business owners to find opportunities in chaos – either by providing solutions to the foreclosure crisis or empowering entrepreneurs with strategies to embrace their companies’ full potential.

The growth of the CDPE designation has been assisted by the support of top brokerages, including RE/MAX, LLC, Keller Williams Realty Inc, and Century 21 Real Estate LLC, as well as industry icons such as Chairman and Co-Founder of RE/MAX Dave Liniger, RealtyTrac, Realogy, Fannie Mae and Founder of Buffini & Company, Brian Buffini.

Short Sale and Foreclosure Resource Certification (SFR)

This is the designation offered by the National Association of Realtors (NAR). The SFR Certification is NAR’s short sale training program developed and continuously updated by industry leaders. The training covers both the seller and buyer side of the short sale transaction. Designed to prepare the agents for the short sale process from the first meeting with the seller through the marketing, contract writing and submission of the short sale package it has prepared over 50,000 REALTORS® across the country to successfully navigate the distressed property waters.

Short Sale Certified (SSC)

A newer entry into the field, the Short Sale Certified designation (SSC) focuses on local laws and trends in the agent’s footprint. The course was developed by Brandon Brittingham, a top producing agent who has personally completed several hundred short sales, and Gee Dunsten, a former national CRS president who has instructed and written short sale courses all over the country and is considered an industry expert.

SSC has just announced an alliance with the Leading Real Estate Companies of the World to offer short sale training to the 100,000+ agents in the network. This will include live training as well as distance learning.

Finding a Short Sale Expert.

Filed Under: Buying a NH home, NH Bank Owned, North Conway Foreclosures, North Conway NH bank owned, North Conway NH foreclosed real estate, North Conway NH real estate Tagged With: Bartlett NH, Bartlett NH condo, Bartlett NH Condos, Bartlett NH real estate, Bartlett NH real estate for sale, Bartlett NH ski chalet, jackson nh real estate, North Conway NH, North Conway NH bank owned real estate, North Conway NH real estate, Tamworth NH foreclosure

Are You a Buyer Looking to Purchase a Short Sale?

May 8, 2012 By Bill Barbin Leave a Comment

Are You a Buyer Looking to Purchase a Short Sale?

Posted: 08 May 2012 04:00 AM PDT

It seems that there is a significant amount of confusion when it comes to purchasing a short sale. There are many misconceptions when it comes to this type of transaction, so below I have provided some information to potential buyers of short sales. If you are looking to purchase a short sale, understand that it is not the same as a normal sale and the approach is very different. There could be several parties involved and issues that are unknown to the buyer and buyer’s agent that can affect the transaction. If you are looking to purchase a short sale here is some helpful information.

1. On average, to get a short sale approval, it can take 60-90 days.

There could be mortgage insurance and an end investor on the loan as well as the servicer, which means it has to go through three different processes. Bank of America could be the servicer on the loan but they do not actually own the loan, so, the short sale has to pass their guidelines, then go to the mortgage insurer if there is one, then to the end investor like Fannie Mae and Freddie Mac. If you are a buyer and can’t wait at least 60-90 days for an approval and then another 30 days to go to closing, then you need to look at other houses. The worst thing you can do is tie up a house that is in a short sale with no intention of being patient while waiting for a short sale approval. Approvals can come sooner than 60 days, but industry standard is at least 60 days to get an approval or denial.

2. There is a general assumption that you can purchase a short sale for 40-50% under its listed price. In a short sale the bank comes out and does a valuation of the property and will expect a slight discount, but will not accept a huge amount under the market value.

Hopefully, if the agent who is handling the sale is experienced, they will have already gotten an approved list price from the bank by the time you are interested in making an offer. The bank will usually be willing to negotiate on that price, but will not, in almost every case, take 40-50% off of that price. To that point, you may be able to get a reasonable deal on a short sale, though it will not be, in most cases, as much of a deal as you may be able to get on an REO (foreclosed property). Also to that point, most short sales will be in better condition than an REO. When you look at the potential repairs a comparable REO needs and the time and expense it can take to do those improvements vs. a short sale being sold at a slight market discount with improvements already made, the investment could even out. There are REO properties that can be picked up for a huge discount, but require massive repairs that a comparable short sale may not require.

3. Short sales are a very difficult process and it takes a qualified person to handle this type of transaction.

With this type of transaction it takes a very experienced agent on the listing side as well as the buying side. Make sure before you move forward on the transaction that the listing agent has ample experience dealing with these types of transactions, or you could be tied up in a contract for months that never goes to settlement. There are several different types of short sale processes and each bank’s process is somewhat different; it takes a professional who has had experience with all of these different types of short sales to help facilitate a successful transaction.

4. In most short sale transactions the properties are sold “as-is” and no repairs will be made.

Although there are some exceptions to this rule, speaking in general, short sales are sold “as-is” and no repairs will be made even if they are found during a home inspection. In most short sale transactions the bank will require both the buyer and the seller to sign an addendum that states the property is being sold “As-is” and no repairs will be made.

These are just a few short pointers for buyers who are looking to purchase a short sale as they are a reality in every market, and if you have the patience you may be able to get the home you are looking for at a discount!

Are You a Buyer Looking to Purchase a Short Sale?.

Filed Under: NH Bank Owned, North Conway Foreclosures, North Conway NH bank owned, North Conway NH real estate Tagged With: Albany NH real estate, Bartlett NH, Bartlett NH condo, Bartlett NH real estate, Bartlett NH real estate for sale, Bartlett NH ski chalet, jackson nh real estate, North Conway NH, North Conway NH bank owned real estate, North Conway NH commercial lease, North Conway NH commercial retail lease, North Conway slopeside condo

Short Sales Will Increase Dramatically in 2012

May 7, 2012 By Bill Barbin Leave a Comment

Posted: 07 May 2012 04:00 AM PDT

We believe that short sales will be a major part of the real estate market in 2012. That is why we have dedicated this entire week to posts exclusively on this subject. We hope that by the end of the week you have a better handle on the need for short sales and a better understanding of the process. – the KCM Crew

It seems that the banks have finally realized that a short sale is a better option than foreclosure for them, the homeowner and the neighborhood. It is for this reason we believe that 2012 will come to be known as the year of the short sale. CNN Money reported on this exact point:

“We believe 2012 could be a record year for short sales,” said Daren Blomquist, vice president at RealtyTrac.

Banks are showing signs of being more open and willing to approve the deals — even if it means accepting less money. The average sales price for a short sale was $174,120 in January, down 4% from December and 10% year-over-year.

Market Watch also addressed the short sale situation recently:

Fitch expects the increase in short sales to continue because of the potential benefits afforded to both lenders and borrowers. Some borrowers may prefer short sales because, though they cannot stay in the property, they often walk away with cash incentives from lenders and healthier credit reports unmarred by foreclosure. For lenders, short sales provide a more efficient and cheaper alternative to the increasingly lengthy and costly foreclosure process.

Why Are the Banks Now Leaning Towards Short Sales?

The simple answer is that the banks lose less money when doing a short sale. The CNN Money article mentioned above explains:

Typically, banks get about 20% less for a foreclosed home. Foreclosure can also take years to unload, during which expenses, like property taxes, insurance and other expenses, mount up.

The Market Watch report breaks it down further:

Short sales…are currently getting completed 20 months after the last payment made on the loan, approximately 10 months less than the average time to foreclose. Shorter timelines reduce lenders’ carrying costs (i.e. accrued loan interest and property taxes, insurance, and maintenance) and eliminate most of the legal expenses associated with foreclosure and liquidation. As a result, loss severities tend to be considerably lower. Historically, for loans with similar attributes, short sales have severities 10%-15% less than REO sales. As the proportion of short sales increases, we expect average loss severities to improve further.

How Many Short Sales Could Be Completed?

JPMorgan has projected that over 500,000 short sales will be done this year. Also, NECN.com recently reported:

RealtyTrac estimates that if the January numbers it found hold up, there would be about 105,000 “pre-foreclosure” sales of homes, most of them short sales, during the first quarter of this year, and at that rate something like 400,000 for the year.

How Long Will Short Sales Be a Major Part of the Market?

The NECN article shows us that short sales are here to stay for some time.

According to the Mortgage Bankers Association, there are nearly 3.5 million homeowners delinquent on their mortgages by at least one month, including 1.5 million who are 90 days or more behind on paying their mortgage. And there are 12.5 million homeowners still who are “underwater,” owing more on their mortgage than their home is worth. That suggests that at the current rates, barring some spectacular economic recovery, it would take years, even decades, for short sales alone to clean up the mortgage mess that remains.

Short sales are here to stay. We must accept this fact and work hard to learn the process and apply it where it makes sense.

Short Sales Will Increase Dramatically in 2012.

Filed Under: Buying a NH home, NH Bank Owned, North Conway Foreclosures, North Conway NH bank owned, North Conway NH foreclosed real estate, North Conway NH real estate Tagged With: Bartlett NH condo, Bartlett NH Condos, Bartlett NH real estate, Bartlett NH ski chalet, jackson nh real estate, North Conway NH bank owned real estate, North Conway NH real estate for sale, North Conway real estate, Tamworth NH foreclosure

What Is QM and Why Does It Matter?

May 6, 2012 By Bill Barbin Leave a Comment

Posted: 02 May 2012 04:00 AM PDT

We often discuss the difference between the PRICE and the COST of a home. We want buyers to realize, in many ways, the cost of a home is more important to them than the actual price. Obviously, price is part of the cost equation. The other piece, available financing, is also crucial. Soon, there will be major decisions finalized by the government regarding house financing moving forward. These decisions could negatively impact many buyers.

“QM” is a new term which stands for qualified mortgage. The new Bureau of Consumer Financial Protection (CFPB) will be responsible for defining QM thereby setting the consumer guidelines banks and lending institutions must follow before issuing a mortgage.

Richard Cordray, the Director of CFPB, plans to finalize the definition this summer. The Center for Responsible Lending quotes American Banker on this timeline:

“The Consumer Financial Protection Bureau will issue a final rule by the end of June defining what constitutes a ‘qualified mortgage’ that will be exempt from new rules compelling lenders to verify borrowers’ repayment ability.”

The fear of many is that the definition will be too ‘narrow’ resulting in many purchasers not being able to qualify for a mortgage under the QM definition. In a letter to Director Cordray, several industry organizations talk to this issue:

“Most economists and housing market analysts in government and in the private sector agree that today’s underwriting standards are tight and are contributing to a slow housing recovery. Our organizations believe that an unnecessarily narrow definition of QM that covers only a modest proportion of loan products and underwriting standards and serves only a small proportion of borrowers would undermine prospects for a housing recovery and threaten the redevelopment of a sound mortgage market…

We are convinced that the choices around this important rule, including in large measure the breadth of the QM standard, will affect sustainable homeownership for generations to come.”

What Could This Mean To a Home Buyer?

If a buyer does not qualify under the new ‘QM’ rules, the cost of financing a home will increase. As the letter mentioned above states:

“A narrowly defined QM would put many of today’s loans and borrowers into the non-QM market, which means that lenders and investors will face a high risk of an ability to pay violation and even a steering violation. As a result of these increased risks, these loans are unlikely to be made. In the unlikely event they are made, they will be far costlier, burdening families least able to bear the expense.”

Securing a mortgage before these new guidelines take effect may make sense to many buyers.

What Is QM and Why Does It Matter?.

Filed Under: Buying a NH home, NH Bank Owned, North Conway Foreclosures, North Conway NH bank owned, North Conway NH foreclosed real estate, North Conway NH real estate Tagged With: Albany NH real estate, Bartlett NH, Bartlett NH condo, Bartlett NH Condos, Bartlett NH real estate, Bartlett NH real estate for sale, Bartlett NH ski chalet, North Conway NH commercial lease, North Conway NH Commercial real estate, North Conway NH homes for sale, North Conway NH real estate, North Conway NH real estate for sale, North Conway NH ski house, radio station condo, Tamworth NH foreclosure

Prices: 1Q 2012 vs. 4Q 2011

May 4, 2012 By Bill Barbin Leave a Comment

Prices: 1Q 2012 vs. 4Q 2011

Posted: 04 May 2012 04:00 AM PDT

[InfoGraphic]

Prices: 1Q 2012 vs. 4Q 2011.

Filed Under: Buying a NH home, NH Bank Owned, North Conway Foreclosures, North Conway NH bank owned, North Conway NH foreclosed real estate, North Conway NH real estate Tagged With: Bartlett NH real estate for sale, Bartlett NH ski chalet, North Conway NH bank owned real estate, North Conway NH Commercial real estate, North Conway real estate, North Conway slopeside condo, Tamworth NH foreclosure

Foreclosures: What About the Children? (Part 1)

April 24, 2012 By Bill Barbin Leave a Comment

Posted: 24 Apr 2012 04:00 AM PDT

We were recently troubled by the findings of a research paper authored by Julia Isaacs of the Brookings Institute for the organization First Focus which was titled The Ongoing Impact of Foreclosures on Children. In the report, Ms. Isaacs quantified the number of children that have been impacted:

2.3 million children have already lost their homes to foreclosure
3 million additional children are at risk of losing their home

As a local broker that brings North Conway NH real estate to you through this site I see the problem here first-hand.

She also noted the four ways foreclosures may affect children negatively:

“First, and most obviously, families receiving foreclosure notices are much more likely to move than other families, and, … children who move frequently do less well in school.

Second, homeowners receiving a foreclosure notice are under a lot of financial and psychological stress, as they struggle to stay in their house, and if that fails, to find a new home quickly…parents under a lot of financial distress sometimes engage in harsher and less supportive parenting, which in turn can lead to negative behaviors on the part of children, making it harder for them to interact well with peers and in school.

Third, foreclosures and housing instability have a negative impact on physical as well as mental health, with studies finding higher rates of non-elective visits to emergency rooms and hospitals in ZIP codes with the highest foreclosure rates, as well as a strong association between housing instability and postponement of needed health care visits and necessary medications.

Finally, because foreclosures are often highly concentrated in certain neighborhoods, children living in or near foreclosed homes may suffer the consequences of living in neighborhoods with more vacant houses, higher crime rates, lower social cohesion, and a lower tax base.”

If you find that you are at risk of foreclosure, know your options. The new National Mortgage Settlement might give you a pathway to stay in your home.

You can get information on the opportunities the settlement offers here.

However, if you have exhausted all your options and now must decide between a short sale and foreclosure, analyze what is the best decision for you and your family. Tomorrow, we will discuss these choices.

Foreclosures: What About the Children? (Part 1).

Filed Under: Buying a NH home, NH Bank Owned, North Conway NH bank owned, North Conway NH foreclosed real estate, North Conway NH real estate Tagged With: Bartlett NH Condos, Bartlett NH real estate for sale, Bartlett NH ski chalet, North Conway NH bank owned real estate, North Conway NH Commercial real estate, North Conway NH commercial retail lease, North Conway NH condos, North Conway NH real estate, North Conway slopeside condo, Tamworth NH foreclosure

116 Ludwig Strasse Bartlett NH Ski Chalet

February 14, 2011 By Bill Barbin Leave a Comment

Swiss Style Chalet Buy this property if you own bathing suit, golf clubs, tennis racquet, skis, hiking boots and love life. Near North Conway Malls, central to year round activity, fully furnished move in condition. 1/2 acre near Story Land, [Read more...]