Homeownership: The American Dream

July 19, 2012 By Bill Barbin Leave a Comment

Posted: 18 Jul 2012 04:00 AM PDT

As a real estate professional, it’s important to understand, and remind yourself, that homeownership really is the American Dream and your job is be the guardian and guide to make that dream a reality. This is especially important in a market where some people may be misinformed about the benefits and possibilities of buying a home.

The good news is 96% of homeowners see homeownership as a positive experience and 88% of renters aspire to own a home. This is true in the United States more than any other country. Owning a part of our country has always been the American Dream and as an agent you are instrumental in this dream. It’s your job to help guide people to their ultimate goal of homeownership.

The first thing you must realize is that homeownership is NOT about the money. In fact, if we look at Fannie Mae’s quarterly National Home Survey, as far back as we can go, the top four reasons for buying a home are the same. The top four reasons people buy a home are:

It means having a good place to raise children and provide them with a good education
To have a physical structure where their family feels safe
It allows for more space for their family
It gives them control over what they do with their living space including renovations and updates.

Homeownership means something more to people and their families than just financial considerations. It’s up to you to be ready to communicate ALL the advantages to homeownership, not just the financial ones.

In tomorrow’s post, we will address more advantages of homeownership.

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

Short Sales: The Mortgage Originators Role in the Process

May 10, 2012 By Bill Barbin Leave a Comment

Posted: 10 May 2012 04:00 AM PDT

A key component to the success of a short sale involves working with a Mortgage Originator who is well versed in the short sale process. The short sale negotiation process is a patience testing task. The complications are many, however if the buyer is securing mortgage financing and is working with an originator that understands that short sale process the buyer and seller can be rest assured, in most circumstances, that the transaction will get to the closing table.

There a 5 key questions to ask when choosing an Mortgage Originator for the purchase of a short sale transaction.

1.) Are they versed in the Anatomy of the Short Sale process?

The proper mortgage origination process pertaining to a short sale purchase is a bit different than a normal non-distressed property purchase. However, it is always my belief that in order to lead the cavalry one must have sat in the saddle. Putting this in terms of the short sale process, in order to originate a loan for a buyer who is interested in a short sale, one must understand the entire anatomy of the short sale process. This includes the challenges that the sellers faces regarding financial difficulty and hardship, the challenges that the selling agents face regarding listing and negotiating the short payoff and most importantly the strict timelines that come along with a short sale transaction.

2.) Will they issue a “TRUE” pre-approval prior to Short Sale approval?

A complete short sale package should include a mortgage pre-approval for the buyer if the buyer is securing mortgage financing to purchase the property. The originator should have taken a full mortgage application, documented income, assets, reviewed the buyers credit and submitted the file through the appropriate automated underwriting service (ex DU,LP) prior to issuing a pre-approval letter to the buyer.

The pre-approval process for a short sale transaction should not be any different than the pre-approval process in a non-distressed sale. Having said this, we have closed over 2500 short sale transactions nationwide. Many times, because of the long timeframes that are involved in a short sale, originators are not properly pre-qualifying the buyer prior to short sale approval. Originators are waiting until the short sale is approved by the short selling bank to submit the client profile to underwriting and is some cases to even issue a complete pre-approval. That is too late! In every circumstance the pre-approval process should be done thoroughly before the short sale approval.

3.) Will they order the appraisal prior to Short Sale approval?

In a non-distressed sale typically, once the purchase contract is signed, the Mortgage Originator or their processing team will then order the appraisal for the property so that it may be reviewed by underwriting. Underwriting will then make sure the property is acceptable as collateral based upon the loan that is being applied for.

This process should hold true if the buyer is buying a short sale. Many times however, the appraisal is not ordered until the short sale is approved by the short selling bank. Often, this will delay the closing timeframes. Also, consider this, if the short selling bank based upon their appraisal, counters they buyer with a higher price, the buyer who has already had their appraisal done will have the ability to issue a rebuttal based on their appraisal. The Buyer’s/Lender’s appraisal is a great tool to negotiate value disputes with short selling banks.

4.) Will they communicate with the Short Sale Negotiator?

There is one line of communication that is a must during a short sale. This is the communication between the Short Sale Negotiator and the Mortgage Originator. The Mortgage Originator should be in touch with the negotiator on a weekly or bi weekly basis to obtain the status of the negotiation. It is imperative that the originator be informed of such deadlines as closing dates, approval expirations, BPO time lines, contract changes etc.

5.) Will they keep the Buyer engaged throughout the process?

In a non-distressed sale the timelines are usually short from pre-approval to closing. The potential buyer will obtain a pre-approval for mortgage financing; they will shop for a home, make an offer and then close on the property. Most cases this process takes between 30-60 days.

In contrast, the short sale purchase timeline could take the normal 30 to 45 days of shopping but, from the time a buyer puts an offer on a property to the time they actually close could take 90-120 days. During this time frame, the mortgage originator must keep the buyer engaged. The information gathered in the pre-approval process meaning paystubs, bank statements etc. will need to be updated appropriately so that when the short sale bank issues their approval the buyer is ready to close on time and within the approval guidelines. All too often short sale negotiators are asked to obtain short sale approval extensions from the short selling bank because the buyer could not close on time. Most of this stems from the Mortgage Originator scrambling to obtain last minute documentation that could have been avoided if the buyer’s credit file was routinely updated throughout the entire short sale process.

In closing, with the abundance of short sale transactions permeating the marketplace, it is imperative that all interested parties to a short sale work with a Mortgage Professional that understands this segment of the marketplace. By keeping the 5 questions above in mind, you may alleviate the possibility of a short sale transaction failing because of buyer financing falling apart.

Short Sales: The Mortgage Originators Role in the Process.

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 condo, Bartlett NH real estate, jackson nh real estate, North Conway NH foreclosures, North Conway NH ski house, Tamworth NH foreclosure

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

Bank Owned Conway NH home – 384 Eaton Road – Sold Sept. 30 2011

August 15, 2011 By Bill Barbin Leave a Comment

This foreclosed home on 1.9 acres just outside of Conway Village in the White Mountains of NH NEEDS WORK! This NH foreclosure property is an older home (1930s) with plenty of deferred maintenance issues.

Sold Sept. 30 2011!

However, it is a short drive to Crystal Lake in Eaton NH, Conway Lake, Dolloff Pond, The Saco River, Cranmore Mountain Resort and Fitness Center, King Pine Ski Area and all of the other things that make the Mt. Washington Valley a great place to call home or your vacation destination.


Listing Price: 64900
Address: 384 Eaton Rd.
City: Conway
State: NH
ZIP: 03818
MLS # (if any): 4085791
Square Feet: 1425
Bedrooms: 3
Bathrooms: 1
Basement (full, 1/2, finished, unfinished): partial-unfinished