WASHINGTON – Oct. 25, 2011 – The homeownership rate is at its second-highest level on record, only behind the record high set in 2000, according to the U.S. Census Bureau, which began collecting homeownership data in 1890.
By region, the homeownership rate is:
• Midwest: 69.2 percent
• South: 66.7
• Northeast: 62.2
• West: 60.5
Nearly every metro area had more homeowners than renters in 2010. The metro areas with the highest homeownership rates were in Michigan and Florida. Monroe, Mich., had the highest percentage of owner-occupied units at 79.8 percent, followed by Punta Gorda, Fla., at 79.7 percent.
While the national homeownership rate remained high, the decrease in the rate from 2000 to 2010 by 1.1 percent – to 65.1 percent overall – is the largest decrease since the 1930 to 1940 period, the Census Bureau reported.
States with highest housing inventory
Meanwhile, housing inventory soared 13.6 percent to 15.8 million units from 2000 to 2010, growing the fastest in the South and West. The states with the largest percentage increase in housing units were:
Nevada: 41.9 percent
Arizona: 29.9
Utah: 27.5
Idaho: 26.5
Georgia: 24.6
Florida: 23.1
North Carolina: 22.8
Colorado: 22.4
Texas: 22.3
South Carolina: 21.9
Source: U.S. Census 2010 and “Homeownership Near Record,” Investors.com (Oct. 20, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Tuesday, October 25, 2011
Monday, October 10, 2011
30% of buyers denied or give up on mortgage
WASHINGTON – Oct. 10, 2011 – Credit has gotten tighter, and more buyers are being left out – or becoming so frustrated they give up. Last year, more than 2 million people were turned down for mortgages, according to the Federal Financial Institutions Examination Council.
About 30 percent of buyers are either denied a mortgage, or they drop out of the application process, the Mortgage Bankers Association estimates.
Biggest reasons for rejection:
• Insufficient income: Buyers cannot afford a $1 million home if they make $50,000 per year.
• Credit details. There are a lot of rules, and it’s not easy to understand what a bank wants. Overtime income, for example, only counts if documented for at least two years to some lenders. Rental income may only count if the borrower has a 30 percent equity stake in the building.
• Bad credit. If a credit score is somewhere around 620 to 660, depending on the bank, lenders say no almost automatically.
• Appraisals. If an appraisal is lower than an agreed-upon selling price, the lender balks.
• External problems. A lender could nix an application if the homeowners’ association has issues or the neighborhood has problems.
• Incomplete information. Paperwork problems – incomplete information, missing forms, etc. – bog down about 12 percent of applications.
And “it’s common to get turned down if you have a gap in employment history over the last two years,” says Erin Lantz, director of the Zillow Mortgage Marketplace.
Source: “Triggers for Rejection,” The New York Times (Oct. 6, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
About 30 percent of buyers are either denied a mortgage, or they drop out of the application process, the Mortgage Bankers Association estimates.
Biggest reasons for rejection:
• Insufficient income: Buyers cannot afford a $1 million home if they make $50,000 per year.
• Credit details. There are a lot of rules, and it’s not easy to understand what a bank wants. Overtime income, for example, only counts if documented for at least two years to some lenders. Rental income may only count if the borrower has a 30 percent equity stake in the building.
• Bad credit. If a credit score is somewhere around 620 to 660, depending on the bank, lenders say no almost automatically.
• Appraisals. If an appraisal is lower than an agreed-upon selling price, the lender balks.
• External problems. A lender could nix an application if the homeowners’ association has issues or the neighborhood has problems.
• Incomplete information. Paperwork problems – incomplete information, missing forms, etc. – bog down about 12 percent of applications.
And “it’s common to get turned down if you have a gap in employment history over the last two years,” says Erin Lantz, director of the Zillow Mortgage Marketplace.
Source: “Triggers for Rejection,” The New York Times (Oct. 6, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Thursday, September 15, 2011
10 States With the Highest Foreclosure Rates
DAILY REAL ESTATE NEWS | THURSDAY, SEPTEMBER 15, 2011
For the 56th straight month, Nevada continued to have the highest foreclosure rate in the country, where one in every 118 homes received a foreclosure filing during August, according to the latest figures from RealtyTrac.
Nationally, 1 in every 570 households received a foreclosure filing in August.
Meanwhile, five states accounted for 53 percent of the foreclosure activity in August, led by California. In California, 59,383 properties received foreclosure filings last month. The state saw a 55 percent month-over-month increase in default notices.
The following are the states that posted the highest foreclosure rates in August, according to RealtyTrac’s latest report:
1. Nevada
One in every 118 households received a foreclosure filing during August.
Total foreclosure filings in August: 9,677
2. California
One in every 226 households
Total foreclosure filings in August: 59,383
3. Arizona
One in every 248 households
Total foreclosure filings in August: 23,569
4. Georgia
1 in every 346 households
Total foreclosure filings in August: 11,743
5. Idaho
1 in every 348 households
Total foreclosure filings in August: 1,860
6. Michigan
1 in every 349 households
Total foreclosure filings in August: 13,016
7. Florida
1 in every 376 households
Total foreclosure filings in August: 23,569
8. Illinois
1 in every 424 households
Total foreclosure filings in August: 12,493
9. Colorado
1 in every 439 households
Total foreclosure filings in August: 4,933
10. Utah
1 in every 450 households
Total foreclosure filings in August: 2,119
By REALTOR® Magazine Daily News
Read More
Mortgage Defaults Soar 33%, Biggest Monthly Gain in 4 Years
For the 56th straight month, Nevada continued to have the highest foreclosure rate in the country, where one in every 118 homes received a foreclosure filing during August, according to the latest figures from RealtyTrac.
Nationally, 1 in every 570 households received a foreclosure filing in August.
Meanwhile, five states accounted for 53 percent of the foreclosure activity in August, led by California. In California, 59,383 properties received foreclosure filings last month. The state saw a 55 percent month-over-month increase in default notices.
The following are the states that posted the highest foreclosure rates in August, according to RealtyTrac’s latest report:
1. Nevada
One in every 118 households received a foreclosure filing during August.
Total foreclosure filings in August: 9,677
2. California
One in every 226 households
Total foreclosure filings in August: 59,383
3. Arizona
One in every 248 households
Total foreclosure filings in August: 23,569
4. Georgia
1 in every 346 households
Total foreclosure filings in August: 11,743
5. Idaho
1 in every 348 households
Total foreclosure filings in August: 1,860
6. Michigan
1 in every 349 households
Total foreclosure filings in August: 13,016
7. Florida
1 in every 376 households
Total foreclosure filings in August: 23,569
8. Illinois
1 in every 424 households
Total foreclosure filings in August: 12,493
9. Colorado
1 in every 439 households
Total foreclosure filings in August: 4,933
10. Utah
1 in every 450 households
Total foreclosure filings in August: 2,119
By REALTOR® Magazine Daily News
Read More
Mortgage Defaults Soar 33%, Biggest Monthly Gain in 4 Years
Friday, September 9, 2011
Where Home Prices Have Dropped the Most
California cities have seen their home values drop by the largest percentage in the last five years, with some metro areas posting losses of up to 67 percent in that time period. California cities occupied six of the top 10 metro areas with the largest drops, according to a recent Zillow study based on its home-value estimates and Zillow Home Value Index.
Overall, "there will be many ups and downs in home values before this is over, and we continue to expect a true bottom in 2012, at the earliest,” says Stan Humphries, Zillow’s chief economist. “There are still hazards in the form of a full foreclosure pipeline, high negative equity, and fluctuations in demand."
The following are seven cities that have seen home values drop the most since the housing boom, according to Zillow:
1. Merced, Calif.
July 2011 Zillow Home Value Index: $106,514
Zillow Home Value Index 5 Years ago: $328,813
Value difference (by percent): -67.6%
2. Modesto, Calif.
July 2011 ZHVI: $128,777
ZHVI 5 Years Ago: $352,599
Value difference: -63.5%
3. Stockton, Calif.
July 2011 ZHVI: $150,061
ZHVI 5 Years Ago: $404,036
Value difference: -62.9%
4. Las Vegas
July 2011 ZHVI: $117,084
ZHVI 5 Years Ago: $303,656
Value difference: -61.4%
5. Vallejo, Calif.
July 2011 ZHVI: $190,521
ZHVI 5 Years Ago: $468,071
Value difference: -59.3%
6. Salinas, Calif.
July 2011 ZHVI: $282,289
ZHVI 5 Years Ago: $664,404
Value difference: -57.5%
7. Daytona Beach, Fla.
July 2011 ZHVI: $95,193
ZHVI 5 Years Ago: $220,436
Value difference: -56.8%
See what other cities made it in the top 10 list.
Source: “Five Years After Housing Market Peak, Bumpy Road Toward Stabilization Underway As Home Values Show Recent Rise in Many Markets,” Zillow (Aug. 9, 2011) and “10 Real Estate Markets With the Largest 5-Year Drop in Home Values,” Inman News (Sept. 8, 2011)
Read More
Zillow: Market to Reach Bottom Possibly by 2012
Overall, "there will be many ups and downs in home values before this is over, and we continue to expect a true bottom in 2012, at the earliest,” says Stan Humphries, Zillow’s chief economist. “There are still hazards in the form of a full foreclosure pipeline, high negative equity, and fluctuations in demand."
The following are seven cities that have seen home values drop the most since the housing boom, according to Zillow:
1. Merced, Calif.
July 2011 Zillow Home Value Index: $106,514
Zillow Home Value Index 5 Years ago: $328,813
Value difference (by percent): -67.6%
2. Modesto, Calif.
July 2011 ZHVI: $128,777
ZHVI 5 Years Ago: $352,599
Value difference: -63.5%
3. Stockton, Calif.
July 2011 ZHVI: $150,061
ZHVI 5 Years Ago: $404,036
Value difference: -62.9%
4. Las Vegas
July 2011 ZHVI: $117,084
ZHVI 5 Years Ago: $303,656
Value difference: -61.4%
5. Vallejo, Calif.
July 2011 ZHVI: $190,521
ZHVI 5 Years Ago: $468,071
Value difference: -59.3%
6. Salinas, Calif.
July 2011 ZHVI: $282,289
ZHVI 5 Years Ago: $664,404
Value difference: -57.5%
7. Daytona Beach, Fla.
July 2011 ZHVI: $95,193
ZHVI 5 Years Ago: $220,436
Value difference: -56.8%
See what other cities made it in the top 10 list.
Source: “Five Years After Housing Market Peak, Bumpy Road Toward Stabilization Underway As Home Values Show Recent Rise in Many Markets,” Zillow (Aug. 9, 2011) and “10 Real Estate Markets With the Largest 5-Year Drop in Home Values,” Inman News (Sept. 8, 2011)
Read More
Zillow: Market to Reach Bottom Possibly by 2012
Thursday, August 25, 2011
White House Weighs Mass Refinancing Plan
DAILY REAL ESTATE NEWS | THURSDAY, AUGUST 25, 2011
The White House is considering a housing proposal that would allow millions of home owners with government-backed mortgages to refinance into lower interest rates, The New York Times reports.
“A wave of refinancing could be a strong stimulus to the economy, because it would lower consumers’ mortgage bills right away and allow them to spend elsewhere,” an article in The New York Times notes.
Many home owners have been unable to take advantage of today’s low interest rates — which are averaging around 4 percent — because they don’t qualify for refinancing at the best rates since they owe more on their home than it is currently worth or because of poor credit. The refinancing plan is still under discussion of how it would work, The New York Times said.
“This is the best stimulus out there because it doesn’t increase the deficit, it accomplishes monetary policy, and it reduces defaults in housing,” Christopher J. Mayer, an economist at the Columbia Business School, told The New York Times.
The White House is also considering other options to try to stimulate the housing market or save home owners from foreclosure. Such options include more changes to its refinancing programs so more home owners can participate or a home rental program to that would rent out foreclosures instead of putting them for sale so foreclosures would stop weighing down overall home prices.
Source: “U.S. May Back Refinance Plan for Mortgages,” The New York Times (Aug. 24, 2011)
Thursday, July 28, 2011
Bank: ‘We’ll reduce your loan, you share future appreciation'
NEW YORK – July 28, 2011 – Ocwen Financial Corp., a servicer of residential mortgages, launched a new loan modification program to reduce the principal on a mortgage for delinquent borrowers, but the borrowers must agree to let loan investors share in future appreciation of the home’s value when the market recovers.
Through the Shared Appreciation Modification program (SAMs), Ocwen will write down the principal of the loan to 95 percent of the home’s current market value. The amount written down will then be forgiven in one-third increments over a three-year timespan, as long as the homeowner remains current on the modified mortgage.
Then, “when the house is later sold or refinanced, the borrower must share 25 percent of the appreciation with the investors that own the loan; borrowers keep 75 percent of the gain,” the company notes.
Loan modifications will be available only to homeowners in negative equity.
“Like all modifications, SAMs help homeowners avoid foreclosure. But they also restore equity,” says Ocwen CEO Ronald Faris in a public statement about the program. “That’s a significant benefit to the customer and, we believe, the economy and housing market. Psychologically, it’s important too. Our analytics tell us that an underwater mortgage is one-and-a-half to two-times more likely to default than one with at least some positive equity.”
The program, which is expected to be rolled out into 33 states, is one of the first principal reduction programs started by a private company.
Source: “Ocwen Unveils New Principal Reduction Program,” HousingWire (July 26, 2011) and “Ocwen Offering Mortgage Modifications That Restore Equity for Underwater Borrowers,” GlobeNewswire (July 26, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Through the Shared Appreciation Modification program (SAMs), Ocwen will write down the principal of the loan to 95 percent of the home’s current market value. The amount written down will then be forgiven in one-third increments over a three-year timespan, as long as the homeowner remains current on the modified mortgage.
Then, “when the house is later sold or refinanced, the borrower must share 25 percent of the appreciation with the investors that own the loan; borrowers keep 75 percent of the gain,” the company notes.
Loan modifications will be available only to homeowners in negative equity.
“Like all modifications, SAMs help homeowners avoid foreclosure. But they also restore equity,” says Ocwen CEO Ronald Faris in a public statement about the program. “That’s a significant benefit to the customer and, we believe, the economy and housing market. Psychologically, it’s important too. Our analytics tell us that an underwater mortgage is one-and-a-half to two-times more likely to default than one with at least some positive equity.”
The program, which is expected to be rolled out into 33 states, is one of the first principal reduction programs started by a private company.
Source: “Ocwen Unveils New Principal Reduction Program,” HousingWire (July 26, 2011) and “Ocwen Offering Mortgage Modifications That Restore Equity for Underwater Borrowers,” GlobeNewswire (July 26, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Monday, July 11, 2011
Second chance for owners who lost homes
WASHINGTON – July 11, 2011 – More than 2 million homeowners who were foreclosed on or were in the process of a foreclosure during 2009 or 2010 can now ask for a review of their case, banking regulators announced this week. Banking regulators say ex-homeowners who might be eligible will receive a letter from their lender explaining their rights.
The move is to help identify homeowners who may have been improperly foreclosed upon, Julie Williams, chief counsel of the Office of the Comptroller of the Currency, said at a congressional hearing.
Homeowners who ask for the review will receive a letter explaining their rights.
Mortgage servicers will hire independent auditors to conduct reviews of the cases and determine if homeowners should receive financial compensation if the foreclosures were not done properly. They will also look for borrowers who were denied loan modifications when they may have been eligible for one.
The reviews are part of the mortgage servicer requirements called for by regulators after an investigation last fall revealed improper foreclosure practices by banks. Banks have until Wednesday to submit plans to the OCC on how they plan to revamp foreclosure practices.
Source: “Foreclosed Home Owners May Seek Case Reviews,” USA Today (July 8, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
The move is to help identify homeowners who may have been improperly foreclosed upon, Julie Williams, chief counsel of the Office of the Comptroller of the Currency, said at a congressional hearing.
Homeowners who ask for the review will receive a letter explaining their rights.
Mortgage servicers will hire independent auditors to conduct reviews of the cases and determine if homeowners should receive financial compensation if the foreclosures were not done properly. They will also look for borrowers who were denied loan modifications when they may have been eligible for one.
The reviews are part of the mortgage servicer requirements called for by regulators after an investigation last fall revealed improper foreclosure practices by banks. Banks have until Wednesday to submit plans to the OCC on how they plan to revamp foreclosure practices.
Source: “Foreclosed Home Owners May Seek Case Reviews,” USA Today (July 8, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
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