Low rates influence housing market but there are some bumps in the road

Good news about the housing industry.

Realty Times reports-

Even with the home buying season behind us, housing data continues to show the influence of low mortgage rates. The National Association of Realtors reported that existing home sales increased 2.1% on a seasonally adjusted basis in October. This increase is 10.9% higher than the rate in October of 2011.

While conventional lenders are closely eyeing borrower's information-

On the other hand, HARP 2.0 is the non-traditional mortgage refinance program for borrowers who have loans that were sold to Fannie Mae or Freddie Mac prior to June 1, 2009. This program does not require an appraisal in most cases and documentation is kept to a minimum. HARP 2.0 has helped many underwater borrowers, especially those with more than 125% loan to value, refinance to historically low mortgage rates, thus, saving them a substantial amount of money and eventually giving them back equity at a faster pace. This whole process is helping not only the housing market, but the overall economic recovery. With many borrowers still eligible for HARP 2.0, the online form is available for submission without the need of a social security number. A response with more information is returned almost instantly.

Some negative news. 

FHA announced that the annual mortgage insurance premium will be increasing by 10 basis points or 0.1% which will add approximately $13 per month to the monthly mortgage payment for the average borrower. In addition, premium payments will no longer be able to be canceled as has been the case since 2001.

These changes are being made in order to shore up the agency's insurance fund which has taken a serious hit since the housing crisis began. Throughout this time FHA has kept mortgage rates both low and competitive with conforming mortgage rates, even sometimes lower. 

FHA closing costs (APR) are high due to various FHA fees and the upfront mortgage insurance premium, but these can often be added to the loan amount or paid with seller concessions as allowed by FHA guidelines. The FHA streamline with no cash out and drastically reduced upfront and annual mortgage insurance premiums is available until the end of 2013. This program is for existing borrowers who have loans that were endorsed prior to June 1, 2009. While an appraisal or other documentation is not required for the FHA streamline, borrowers must have a clean mortgage payment record with no late payments for the most recent twelve months.

Read the full story.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Hurricane Sandy - mortgage relief is on the way

The New York Times reports:

HOMEOWNERS reeling from the effects of Hurricane Sandy may find that their mortgage servicer is willing to ease some of the immediate financial burden. 

Both Fannie Mae and Freddie Mac — the mortgage finance giants that guarantee or own most residential mortgages — have authorized their servicers to grant a 90-day forbearance period to borrowers in federally declared disaster areas.

“The expectation is that your life has been disrupted and the house may have been damaged,” said Brad German, a spokesman for Freddie Mac, “or your place of employment may have been damaged and your job may be unavailable.”

What is forebearance?  At its most basic, the lender agrees not to take action against a delinquent homeowner.  In exchange the homeowner agrees to a payment plan that brings him current with the lender is a certain period of time.

What to do if you are in a disaster area and having difficulty making your mortgage payment?  Contact your loan servicer, you can find the contact information on your mortgage statement or its website and explain your situation.  Do not, I repeat, do not, wait for the servicer to contact you.

If you are not sure you are in a disaster area, go on-line to fema.gov/disasters.

Read the full article.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Naming that real estate development

As a lad I lived in Cameo Homes, a development of split level, ranch and, later on, bi-level homes in Monsey, New York.  It was carved out of farmland and woods in the late 1950s and early 1960s and was populated by World War II vets moving up from New York City apartments and other first-time homebuyers.  It was not a particularly pretty subdivision as almost every large tree that remained would soon die because of the changes to water levels, etc. brought about by large scale grading of the land.

Now I live in High Tor Estates in Essex County, New Jersey.  Our developer planted trees have grown well throughout most of the tract, but the railroad tie retaining walls designed to hold back the mountain (hence High Tor) on which we live is starting to show its age.

Cameo Homes and thousands of others throughout the country, have names with no relation to what one really finds on the ground.  The names are all about marketing, can't blame folks for that.  Here's a commentary on the subject from one of my favorite comics, Frazz.

What do you think?

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Hurricane Sandy delays loans

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We have received a letter from a local community bank of consequential size advising that all loans in the pipeline heading toward closing will be delayed until each property is inspected by an appraiser. The New York Times has picked up on this new challenge to getting a mortgage in New Jersey.

THE extensive power failures that have paralyzed the region in the wake of Hurricane Sandy have understandably delayed closings in mortgage deals that had otherwise been buttoned up. But lenders are adding to the logistical bottleneck by requiring that properties in affected areas be reinspected for damage.

“If you are in a FEMA-declared disaster area or emergency area,” said Jason Auerbach, a divisional manager for First Choice Loan Services, of Morganville, N.J., “banks are requiring an inspection of the home to affirm whether there was damage done. They are reinspecting properties to make sure it’s still a functional property that can be lived in.”

We have had one closing postponed because the borrower disclosed water damage to the property just as the loan was being scheduled to close.

For properties in areas that didn’t suffer extensive storm damage, the inspection may constitute no more than a drive-by. The delay in such cases may be no more than a few days.

Both buyer and seller may also be required to sign a form attesting that they agree the property suffered no storm-related damage. Regardless, buyers should do a thorough walk-through well before the day of closing, advises Scott Penner, a real estate lawyer in Milford, Conn.

If you are advised of a delay by your new lender, be sure to discuss the effect of the delay on your interest rate!

Read the full story here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Homeowners and the storm - exercise caution about insurance claims

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The New York Times Your Money column written by Ron Lieber has a cautionary report on reasons for homeowners to be wary until they have the insurance check in hand.

There is a sort of honeymoon period that occurs after a big storm like Hurricane Sandy, when insurance executives appear on the local news offering reassuring words. Their brightly painted vans pull into residential neighborhoods amid the standing water and debris. Everyone is hopeful. Handshakes and back-patting all around.

That period is about to end. Prices for roofers and construction materials will rise, disadvantageous parsing of policy language will commence and gangs of class-action lawyers will round up aggrieved clients who still have months of homelessness ahead of them. Many claims will take years to settle.

It happens every time, and so it will with this storm. That’s not to say that a majority of people with insurance claims won’t be satisfied with the check they receive or won’t get one quickly.

There are things to watch that people should watch out for:

• The insurance adjuster who doesn't work for you.
• Categorizing the damage from flood rather than wind.
• Replacement versus repair
• Compliance with building codes

Read the full story.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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