New Short Sale Bill Submitted to Congress

U.S. Representative Robert Andrews (D-N.J.) and Tom Rooney (R-Fla) offered up new legislation to Congress last week.  H.R. 6133, "Prompt Decision for Qualification of Short Sale Act of 2010," is an effort from Congress to help keep potential buyers from walking away from short sales, simply because lenders take months to respond to their offers.  This legislation aims to "require the lender or servicer of a home mortgage, upon a request by the homeowner for a short sale, to make a prompt decision whether to allow the sale."



In this bill, the terms "short sale" means the sale of the dwelling or residential real property that is subject to the mortgage, deed or trust, or other security interest that secures a residential mortgage loan that:

• will result in proceeds in an amount that is less than the remaining amount due under the mortgage loan; and
• requires authorization by the securitization vehicle or other investment vehicle or holder of the mortgage loan, or the servicer acting on behalf of such a vehicle or holder.

Ms. Golder continued, "Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time. Potential homebuyers are walking away from purchasing short sale property because the lender has taken many months and still not responded to their request for an approval of a proposed short sale price. Many consumers have mentioned that the delay in short sale price approval exceeds 90 days, and in many cases never arrives."
Hopefully, if this bill passes into law, homeowners will find relief from their mortgage woes, and will be able to sell their home without having to be foreclosed upon.

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Consensus: Denver-area housing holds value

It’s an opinion shared by many in the residential real estate industry – the local housing market is better off than most of the country.  The U.S. Census Bureau recently released data that indicates they are correct.  


The median value of a home last year in the Denver-area, described as the Denver-Aurora-Broomfield Metro Area by the Census Bureau – was $248,500 in 2009 - only a 0.48% drop from the median price of $249,700 in 2008.  By contrast, the U.S. median price fell about 5.9% in 2009 to $185,200, from $196,700..   


“I think it is fair to say that home values in the Denver MSA (metropolitan statistical area) did hold their values better than the U.S. did, as our market sustained a very small drop, while the U.S. overall, fell far more,” said Patty Silverstein,  principal of Economic Development Research Partners and chief economist for the Metro Denver Economic Development Corp.


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August Denver-metro home statistics

3,079 home sales closed in the metro area in August 2010


23,615 homes in inventory

6.4 Months of inventory, meaning we are in a buyer's market


- Prices have remained fairly stable. The median price for homes sold in August was $239,900, compared with $240,000 in July and $227,000 in August 2009.


- The median price of condos sold rose to $130,000 in August from $129,000 in July but is down from a median sales price of $144,500 a year ago.
 
Sales have slowed down alot since the tax credit expired, but that is just making seller's more desperate to sell, and giving buyers more leverage to buy, especially at 4% interest rates, which will save you about $25,000 over the life of the loan... much more than $8,000.
 
Click here for more trends!!

5 things you must know about homeowners insurance

1. Loyalty is overrated - check InsWeb.com and NetQuote.com for better deals. Consider moving your auto policy too; bundling home and auto coverage can cut your total premiums by 5% to 15%. 

2. You may have too much coverage - For now, pass on inflation protection and adjust your coverage amount to a more realistic figure.
3. A bad rep can cost you - Insurers check national databases to see what claims you've filed in the past. Those records can be full of errors.  Check your insurance report for mistakes.

4. Small claims can cost you, too - Go with the highest deductible you can afford and bank the savings to cover the cost of minor repairs. Filing a claim for every broken window or leaky pipe can drive up your premiums by 10% to 15%. Increasing your deductible from, say, $500 to $1,000 can lower your annual premium by as much as 25%, according to the Insurance Information Institute.

5. A home's history matters - In the market for a new house? It may seem unfair, but claims associated with the property before you buy it can result in your paying more than you would otherwise. "Certain locations [such as those vulnerable to flooding] may be more prone to claims," explains Kiran Rasaretnam, CFO of InsWeb.  To get info on past claims, ask for a copy of the seller's CLUE disclosure report (see No. 3). Yes, you're stuck with the history of the house you buy, but you can use what you find to negotiate a lower price with the seller.

-Money Magazine
http://money.cnn.com/2010/09/02/pf/homeowners_insurance.moneymag/index.htm

Short Sales Soar in Denver Metro

In the first seven months of 2010, short sales in the Denver metro area rose by 48%, compared with the same period in 2009, according to an analysis of data by InsideRealEstateNews.  During this time period there were 2,270 completed single-family home short sales, almost a 42% increase from the 1,610 a year ago, according to Metrolist.  Most of the short sales were for single-family, detached homes.  Condo short sales skyrocketed 88%, although the actual numbers were much smaller – 476 in January through July this year, compared with 253 a year ago.  

Month	2009 SF	2010 SF	2009 Condos	2010 Condos
January	102	244	12	51
February	127	257	32	72
March	236	331	29	71
April	237	373	47	72
May	253	337	42	53
June	308	457	32	96
July	338	271	59	61
TOTAL	1601	2270	253	476

What this means for you: 
-Buyers: If you have the time and PATIENCE to purchase a short sale, it could be a good investment. If you do not have the time and TONS of patience (the deal could last 8 months and all fall apart at the end), stay AWAY from short sales. 
-Sellers: Your biggest competition is any short sale in your area, since they will usually be lower priced then yours. Make sure your realtor markets your home as "NOT a short sale", and "quick possession" on the MLS so people will know they won't have to wait to purchase your house.
-Owners in default: A short sale is probably the best decision for you if you are behind on your payments and cant catch up, and cant get a loan remodification. It will be easier on your credit, and you will be able to get another loan for a home even 2 years after your short sale and you repair your credit. And it's totally free (dont use anyone who charges you). 
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