Tuesday, June 30, 2015

Mortgage Performance Improves Across the Board For Eight National Banks Team Thayer Real Estate News

www.teamthayer.com  Approximately 94.2 percent of first-lien mortgages serviced by eight national banks were current and performing at the end of the first quarter, an improvement of more than a full percentage point from a year earlier, according to the Office of the Comptroller of the Currency's Q1 2015 Quarterly Mortgage Metrics Report released Thursday.
The eight national banks covered in the OCC's report are (alphabetically) Bank of America, JPMorgan Chase, Citibank, HSBC, OneWest Bank, PNC, U.S. Bank, and Wells Fargo. The mortgages covered in the OCC's report comprised 43.9 percent of all outstanding residential mortgages in the country, which total 22.7 million loans and approximately $3.8 trillion in unpaid principal balance.
Mortgage performance improved across the board for the eight national banks in Q1. The share of performing first-lien mortgages improved from 93.1 percent up to 94.2 percent, the share of mortgages that were 30 to 59 days overdue declined by 7 percent year-over-year in Q1 down to 1.9 percent, and seriously delinquent mortgages (60 or more days overdue or held by bankrupt borrowers who are more than 30 days past due on their payments) made up 2.6 percent of the portfolio in Q1, a year-over-year decline by 16.4 percent, according to OCC.
Foreclosure activity declined substantially year-over-year in Q1. The number of properties in the process of foreclosure as of the end of the quarter dropped down to 299,424, a decline of 30.8 percent from the same quarter a year earlier. The nearly 300,000 loans in the process of foreclosure during Q1 comprised about 1.3 percent of the loans in the portfolio. Foreclosure starts declined year-over-year by 8.6 percent in Q1, down to 83,058, while foreclosure completions dropped by 31.5 percent year-over-year down to 38,509. The OCC cites improved economic conditions and foreclosure prevention actions as the reason for the substantial decline in foreclosure activity during Q1.
Home retention actions such as modifications, trial-period plans, and shorter-term payment plans totaled 188,816 in Q1, a decline of 20.6 from the same quarter a year earlier. More than 89 percent of loan modifications reduced monthly principal and interest payments, and more than 55 percent of modifications reduced monthly payments by 20 percent or more. Borrowers saved an average of $271 per month on mortgage payments with modifications in Q1, according to OCC. Meanwhile, home forfeiture actions such as completed foreclosures, short sales, and deeds-in-lieu of foreclosure totaled 47,430 during the quarter.
According to OCC, out of the nearly 3.7 million modifications implemented from a seven-year period from January 1, 2008 through December 31, 2014, approximately 53 percent of them were active as of the end of Q1 2015 while 47 percent of them had exited the portfolio through either payment in full of the mortgage, involuntary liquidation, or a transfer to a servicer that was not part of the portfolio. Out of those 53 percent of active modifications at the end of Q1, totaling approximately 1.97 million mortgages, 72.2 percent of them were current and performing, 22.4 percent of the loans were delinquent, and 5.5 percent of them were in the process of foreclosure, the OCC reported.
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Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Friday, June 26, 2015

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Real Estate Sales Hit Six-Year High Team Thayer Real Estate News

home-for-sale-sign-threeAs first-time buyers enter the housing market, the total number of existing-home sales saw the largest increase in May than it has in nearly six years, according to a report by the National Association of Realtors (NAR). May home sales experienced a growth spurt following April's decline and are now at their highest pace since November 2009. All major regions experienced sales increases in May, led by the Northeast.
According to NAR, total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums, and co-ops, increased by 5.1 percent to a seasonally adjusted annual rate of 5.35 million in May from an upwardly revised 5.09 million in April. Sales have now seen increased year-over-year for eight consecutive months and are 9.2 percent (4.90 million) above a year ago.
"Solid sales gains were seen throughout the country in May as more homeowners listed their home for sale and therefore provided greater choices for buyers," said Lawrence Yun, NAR’s chief economist. "However, overall supply still remains tight, homes are selling fast and price growth in many markets continues to teeter at or near double-digit appreciation. Without solid gains in new home construction, prices will likely stay elevated—even with higher mortgage rates above 4 percent."
Total housing inventory increased by 3.2 percent to 2.29 million existing homes available for sale at the end of May, and is 1.8 percent higher than the 2.25 million homes for sale a year ago, the report says. Meanwhile, unsold inventory dropped down to a 5.1-month supply at the current sales pace for May, down from 5.2 months in April.
Single-family home sales increased by 5.6 percent to a seasonally adjusted annual rate of 4.73 million in May from 4.48 million in April, and are and now 9.7 percent above the 4.31 million pace a year ago, the report says. The median existing single-family home price was $230,300 in May, up 8.6 percent from May 2014.
"The return of first-time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low downpayment programs," said Yun. "More first-time buyers are expected to enter the market in coming months, but the overall share climbing higher will depend on how fast rates and prices rise."
Chris Polychron, NAR president and executive broker with 1st Choice Realty in Hot Springs noted that Realtors overwhelmingly support the Consumer Financial Protection Bureau's proposal of a two-month delay for the implementation of the new TILA-RESPA Integrated Disclosure, or TRID, regulation.
"NAR has long advocated the need to avoid implementing the new regulation during the peak buying season," Polychron said. "With interest rates on the rise, many families wanting to buy are looking to lock-in at current rates and move into their new home before the school year starts. Holding off on TRID implementation through the summer helps these buyers avoid any disruption or delays in closings that could develop once the regulation goes into effect."

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Monday, June 22, 2015

Freddie Mac Offers Homeowners In Foreclosure Guide to Alternatives

foreclosure-notice-fourFreddie Mac is now offering distressed homeowners a complete guide to foreclosure and how to avoid it, from assessing your situation to what to do when your home has been foreclosed on, as part of anew website launched this week as a one-stop resource for homeowners.
The "MyHome by Freddie Mac" site offers homeowners a number of options under the "Foreclosure and Alternatives" tab that tell a borrower who to contact for help as well as non-foreclosure solutions that include both home retention and home forfeiture options.
Freddie Mac first discusses the importance of taking stock of your financial situation and determining what a borrower can and cannot pay for as far as home-related expenses, such as major and minor repairs. If a borrower cannot pay for these things, or is incurring another major expense that will keep them from paying the mortgage, Freddie Mac recommends reaching out to the lender as soon as possible.
"Your lender wants to help you with your mortgage," Freddie Mac said on the site. "They do not want your home or the expenses that come with foreclosure."
Borrowers are warned to watch for the warning signs of foreclosure and to seek help if they look familiar. If a borrower is in need of help avoiding foreclosure, Freddie Mac lists several options to contact for help: the lender, housing counselors, Freddie Mac borrower help centers, and house finance agencies.
Home retention solutions that can be worked out for eligible borrowers are forbearance, reinstatements, repayment plans, and modifications, including the government's Home Affordable Modification Program (HAMP). Non-foreclosure solutions in which the home is forfeited include short sales or deeds-in-lieu of foreclosure. The site provides several resources for the borrower to understand all of these options and how to prepare your financial information to meet with your lender.
When foreclosure cannot be avoided, Freddie Mac gives the borrower a list of what to expect after foreclosure that includes how it affects the borrower's credit, how to rebuild credit, finding a home after foreclosure, and re-entering the housing market (recent research from TransUnion indicated that about 1.5 million "boomerang buyers" negatively affected by the housing crisis will re-enter the housing market in the next three years).
The site includes other options for homes lost to foreclosure. Freddie Mac encourages borrowers to find out who acquired the home after the foreclosure to increase options available; for example, if Freddie Mac acquired the home, options may include renting the home while it's being marketed for sale, receiving "cash for keys," or purchasing the home back.

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Real Estate Investors Most Avoid These 5 Mistakes Team Thayer Real Estate News

Regardless of what endeavor you undertake, you always want to succeed. However, the harsh reality is people do fail in spite of the hard work they put in. Some of the reasons for failure are negligence, silly mistakes and being complacent.
Failure is quite common to real estate investors and sometimes it can be so severe that these investors can get bankrupt. But why do real estate investors fail? What are the mistakes that they make? Here are the five major reasons:
Real Estate Investors
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1. Too Many Risks

It all starts with risks which is inherent in investment. But when the risk gets so high that you have to pull out equity or refinance other properties, it means you are heading to bankruptcy.
Risk is involved in any kind of investment, including real estate investment. However, it is important to understand the different ways to navigate through these risks in order to succeed. Future is indeed unknown. Thus, it is best to keep a track of potential threats, keep reliable people along and as far as possible avoid getting close to problems.

2. Lack of Knowledge and Experience

It is very important to first understand what real estate market is all about and only then plunge into it. Don’t start buying properties because you think that’s the right decision. Understand how effective it would be to buy property, where to buy the property, what kind of property to buy and where to look for financing.
Gain enough knowledge prior to make informed purchase decision. Do your groundwork by reading books, magazine and online articles, real estate news and talk to knowledgeable professionals who are well versed in real estate investment.

3. Legal Issues

Often lack of legal knowledge leads to problems while drawing up contracts. So, as an investor, you should always have a knowledgeable and reliable lawyer at your side who know real estate laws of the state you are making the purchase in.
Let your lawyer handle the legal aspects of the purchase, but make sure you are in the know. This will ease your burden and allow you to focus on what you do best – real estate investment.

4. Finding Tenants or Buyers

Once you buy the property, next step is to do something lucrative out of it. The best is to sell it off to make profit or rent it. However, investors often find it difficult to do so. In such a situation, it is best to build up a network of prospective buyers and be in regular touch with them. If you can’t do it yourself, employ an assistant to do it for you. Timely communication is the key! If you get calls from prospective buyers, don’t delay.
Remember you will have to spend money to upgrade the property so that it becomes attractive for prospective buyers and tenants.

5. Economy

Whether we agree or not, economy too has a big role to play in the success or failure of real estate investors. People wait till the economy is perfect and prefer not to take risks. However, this can mean an endless wait.
Remember economy is recurring. Hence, you should be looking to buy properties when they are priced low and selling them when the market demand is higher than the supply. This will allow you to make a tidy little profit on your investment.

The Bottom Line

A careful analysis is the crux of all successes and failures and this holds true for real estate investors, as well. Your math and analyses should be correct while investing since the future is not known. This means you need to do lot of analysis of every aspect of the real estate market. Evaluate the deal, legalities, risks, the economy and everything else you can think of before investing. This way you can’t go wrong.

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Now Is The Time To Sell Team Thayer Real Estate News

If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market.
Jonathan Smoke, the chief economist of realtor.com, in a recent article revealed:
“Our preliminary review of April activity on realtor.com shows that traffic, searches, and listing views are up more than 35% over last year. With 3 million jobs created and close to 1.5 million new households formed in the past 12 months, many more people want a new home of their own, and they want it bad. Their patience will be tested with tight supply—indeed, the No. 1 impediment of active shoppers in April was not being able to find a home that meets their needs.”
In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies.

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Sunday, June 21, 2015

Foreclosure activity hits 19-month high Team Thayer Real Estate News

 Default notices, scheduled auctions and bank repossessions — were reported on 126,868 U.S. properties in May 2015, up 1% from the previous month and up 16% from a year ago to a 19-month high, according to the latest report from RealtyTrac.
The U.S. foreclosure rate in May was one in every 1,041 housing units with a foreclosure filing.
The increase in May was driven primarily by a jump in bank repossessions, which at 44,892 were down 1% from the previous month but up 58% from a year ago, and a 5% year-over-year increase in scheduled foreclosure auctions.
REOs increased on a year-over-year basis for the third consecutive month, and scheduled foreclosure auctions have increased on a year-over-year basis in four of the last eight months. May REOs were 56% below the peak of 102,134 REOs in September 2013 but still nearly twice the average monthly number of 23,119 in 2005 and 2006 before the housing bubble burst in August 2006. (Also see special methodology note on REO data collection below.)
“May foreclosure numbers are a classic good news-bad news scenario, with the number of homeowners starting the foreclosure process stabilizing at pre-housing crisis levels but the number of homeowners actually losing their homes to foreclosure still well above pre-crisis levels and on the rise,” said Daren Blomquist, vice president at RealtyTrac. “Lenders and courts are pushing through stubborn foreclosure cases that have been languishing in foreclosure limbo for years as options to prevent foreclosure are exhausted or left untapped.” 
Following the national trend, 38 states and the District of Columbia posted year-over-year increases in REOs, including New Jersey (up 197%), New York (up 116%), Ohio (up 114%), Georgia (up 108%), Pennsylvania (up 106%), Florida (up 63%), Michigan (up 63%), Maryland (up 62%), and California (up 31%). 
“Even though national foreclosures increased a tad and REOs in California jumped we saw an expected settling in the Los Angeles metro numbers,” said Mark Hughes, chief operating officer with First Team Real Estate, covering the Southern California market. “As we settle back into more stable markets we will see some areas up and some down in foreclosure starts but overall we are settling back towards pre-boom distress percentages as a part of the overall market.  There’s still more inventory to clean up but all indicators are these are the final and in some cases the toughest distressed properties to move through the system.  A drop in distressed inventory adds even more upward pressure on pricing as inventory still lags behind good buyer interest across the region.”

Team Thayer Real Estate News Eugene Oregon
Team Thayer Real Estate News
(Source: RealtyTrac)
“As available housing inventory begins to increase, we are noticing slight increases in foreclosure activity across Ohio — particularly, in Columbus for homes priced under $200,000, which appears to be driven by Home Equity Lines of Credit maturity loans, as well as an aging population of homeowners not understanding opportunities available to them from increased area prices,” said Michael Mahon, president at HER Realtors, covering the Cincinnati, Dayton and Columbus markets in Ohio. “As income has not kept up with growing medical costs and credit expenses, many of these same homeowners are now in negative cash flow and equity situations. These homeowners should reach out to a neighborhood real estate or mortgage professional immediately to find out what options are available to them.”
A total of 51,414 U.S. properties started the foreclosure process for the first time in May 2015, down 1% from the previous month but up 4% from a year ago after four consecutive months of year-over-year decreases. Despite the increase, U.S. foreclosure starts are still below pre-crisis levels from 2005 and 2006 when they averaged 52,279 a month before the housing price bubble burst in August 2006.   
Twenty-five states posted year-over-year increases in foreclosure starts, including New Jersey (up 73%), Virginia (up 39%), Missouri (up 19%), Massachusetts (up 14%), and Washington (up 11%).
A total of 49,413 properties in May were scheduled for a future foreclosure auction (scheduled foreclosure auctions are foreclosure starts in some states), up 6% from the previous month and up 5% from a year ago. U.S. scheduled foreclosure auctions so far this year are running about 40% higher than their pre-crisis levels from 2005 and 2006. 
Twenty-six states posted increases in scheduled foreclosure auctions from a year ago, including New York (up 118%), Illinois (up 23%), New Jersey (up 22%), and Maryland (up 11%).
Driven by a 63% annual increase in REOs, overall foreclosure activity in Florida increased 4% from the previous month and was up 7% from a year ago in May, and the state’s foreclosure rate ranked No. 1 for the month with one in every 409 housing units with a foreclosure filing.
Other states with foreclosure rates among the top 10 highest nationwide included New Jersey (one in every 483 housing units with a foreclosure filing), Maryland (one in every 531 housing units), Nevada (one in every 590 housing units), Ohio (one in every 763 housing units), Illinois (one in every 765 housing units), Indiana (one in every 963 housing units), and South Carolina (one in every 987 housing units).
Among the nation’s 20 largest metropolitan statistical areas, 13 posted an annual increase in foreclosure activity in May, including Dallas (up 64%), St. Louis (up 56%), Baltimore (up 35%), New York (up 34%), Philadelphia (up 28%), Atlanta (up 27%), Detroit (up 27%), San Francisco (up 25%), Houston (up 18%), Miami (up 17%), and Seattle (up 10% from a year ago).
“The increase in foreclosure activity in the Seattle area doesn’t concern me at this time,” said Matthew Gardner, Chief Economist at Windermere Real Estate, covering the Seattle market. “Given the growth in home values in our region, I believe that it’s fairly safe to assume that this increase is primarily a function of banks starting foreclosure proceedings after having delayed taking action for some time. I would not be surprised to see the annual rate continue to remain elevated for a while as we get through the pipeline.”
Of metro areas with a population of over 200,000, those with the highest foreclosure rates were Atlantic City, New Jersey (one in every 230 housing units with a foreclosure filing), Lakeland, Florida (one in every 331 housing units), Ocala, Florida (one in every 335 housing units), Miami, Florida (one in every 347 housing units) and Jacksonville, Florida (one in every 348 housing units).

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Saturday, June 20, 2015

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Foreclosure Alternatives Outpace Completions Five to One Team Thayer Real Estate News

Non-foreclosure solutions continued to outpace completed foreclosures by a rate of approximately five to one in April while serious delinquencies continued their steady decline, according to data released on Wednesday by HOPE NOW, an industry-created private sector alliance of mortgage servicers, investors, counselors, and other mortgage market participants.
The number of non-foreclosure solutions, which include loan modifications, short sales, deeds-in-lieu of foreclosure, or other workout plans) completed by the industry totaled 153,000 for April, compared to 32,000 completed foreclosure sales during the month, according to HOPE NOW.
April's total of non-foreclosure solutions represented a slight increase over the monthly average for the first quarter (148,000). April's total of foreclosure sales was unchanged from the Q1 three-month average of 32,000.
"HOPE NOW continues to see declines in overall serious delinquencies each month," HOPE NOW executive director Eric Selk said. "In 2010, at the peak of the housing crisis, there were more than four million families behind on their mortgages. That number has been more than cut in half as the industry continues to provide viable mortgage solutions. Loan mods are outpacing foreclosure sales and total non-foreclosure solutions are outpacing those sales by a five to one margin. As many markets continue to recover, HOPE NOW’s members and partners are focused on the regions that are still plagued by large numbers of delinquent borrowers. We have also shifted our efforts to assisting communities with post-crisis issues such as abandoned properties and blight."
About 44,000 of the non-foreclosure solutions offered in April were of the permanent loan modification variety, according to HOPE NOW, with about 29,000 of those completed through proprietary programs and about 15,000 completed through the government's Home Affordable Modification Program (HAMP). Since HOPE NOW began reporting the data in 2007, the number of non-foreclosure solutions offered by the industry is approaching 24 million, with 7.5 million of those coming via permanent loan modification.
Foreclosure starts declined by about 24 percent from March to April (from 78,000 down to 59,000), according to HOPE NOW. The number of seriously delinquent mortgages declined by about 2 percent from 1.81 million down to 1.78 million during that same period.

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Estimated 1.5 Million ‘Boomerang Buyers’ to Re-Enter housing Market Team Thayer R.E News

Team Thayer Real Estate News
An estaimated 1.5 million "boomerang buyers" – those negatively affected by the housing crisis – could re-enter the housing market at some point in the next three years, according to a study released byTransUnion on Wednesday.
Boomerang buyers include those who are 60 or more days delinquent on a mortgage loan, have had a mortgage loan modified, or have lost a home through foreclosure, short sale, or deed-in-lieu of foreclosure. TransUnion estimates that about 700,000 boomerang buyers could re-enter the mortgage market in 2015, and another 2.2 million could re-enter the market over the next five years.
"Based on our study findings, the burst had a significant and dramatic impact on many consumers' ability to re-enter the mortgage market after suffering through the downturn," said Joe Mellman, vice president and head of TransUnion's mortgage group. "It's been over seven years since the beginning of the mortgage crisis; this is significant because many derogatory items, such as foreclosures and short sales can prevent consumers from qualifying for a new mortgage for a period of time. The timing of that challenge can vary: for example, four years must pass after a short sale and seven years must pass after a foreclosure. As consumers responsibly manage their credit and pass these milestones, we anticipate a tide of newly mortgage-eligible consumers entering the market."
In order to determine consumers' ability to re-enter the mortgage market, TransUnion's study analyzed the credit-active population in the United States during a three-year period from the end of 2006, which was the end of the housing bubble, until the end of 2009, which was the end of the housing bust and in 2014.
The study found that only about 18 percent, or 1.3 million, out of the 7 million impacted consumers had recovered enough by December 2014 to meet agency credit underwriting guidelines. The study also determined, however, that 2.2 million of the remaining 5.7 million consumers could potentially meet those underwriting guidelines over the next five years.
TransUnion found that about 42 percent of those 1.3 million consumers who have recovered currently have a mortgage, while 58 percent of consumers who have recovered do not."As boomerang buyers who experienced foreclosures or other negative impacts become eligible to re-enter the mortgage market, they may not immediately do so if they are not aware they are eligible again, or feel daunted by their prior experience," Mellman said. "Lenders can help consumers ease this transition with credit education programs addressing consumer eligibility, and help them better understand their borrowing options."
The study also examined the impact of the mortgage crisis on consumer credit scores and found that about 39 million consumers dropped at least one credit score tier during that three-year period between the end of the bubble and the end of the bust. By the end of 2014, less than half of those (16 million) had recovered enough to be in the same risk tier they were in prior to the housing bust.
Certain credit risk score tiers have shown marked improvement in scores, however, according to Trans Union. About 7 million consumers moved into the prime or better risk categories between 2009 and 2014 (meaning they have a Vantage Score 3.0 credit score of 661 or higher ) while an additional 8 million moved from the subprime risk tier (credit score of 660 or lower with VantageScore 3.0) into a higher risk tier during that period.
"An important question lenders face is when to re-engage with consumers who have been challenged managing credit in the past. Despite the negative impact of the mortgage crisis on many consumers, we're seeing promising recovery as consumers shift to lower risk tiers," said Ezra Becker, VP of research and consulting in TransUnion's financial services business unit. "The pronounced decline in the number of subprime consumers indicates that time has diminished the impact of Burst-era derogatory items on consumer credit. While some lenders may be hesitant to offer loans to these impacted consumers, our data show these consumers are becoming better credit risks. Our study puts a framework around the re-engagement question relative to the mortgage crisis, and that's good news for both lenders and consumers alike."

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Wednesday, June 17, 2015

Double Down On Your Strengths Idiot. Team Thayer Official #Success #Lifehack

Why your not lucky. Team Thayer Official Life Hack #lifehack

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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New home infested with snakes, family sues realtor. Team Thayer Real Estate News.

Caught on cam: Bullsnake bites man!

Caught on cam: Bullsnake bites man!
Here is an excellent reason you should hire a trusted referred buyers agent.  Check out this story as reported by HLN this morning.

A family is suing after moving into a home they claim is infested with black rat snakes.  Jeffrey and Jody Brooks purchased a home in Annapolis, Maryland to live in with their 4-year-old son and infant daughter. Before completing the purchase, the Brookses claim they asked the realtor about a possible snake problem and were told there was no problem. The family also says they had the home inspected, but since it was the winter, the snakes were not easy to detect.
The Brookses closed on the property on December 29th and a few months later started finding snakes in the home, according to the lawsuit. The family says they brought in an expert who ripped open walls and ceilings, revealing dozens of snakes in the home. According to the lawsuit, the snakes ranged from 6 inches to 7 feet in length. 
The exterminators determined that snakes had been living there for years and found the home to be “uninhabitable and worthless,” according to the lawsuit.
The Brooks family filed a multi-million dollar lawsuit against the realtor, the realty company, and the former homeowner claiming breach of contract, intentional misrepresentation, and fraud. 
Attorneys for the defendants told HLN they had no comment on this pending lawsuit.

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When buying a home, it’s important a top buyer’s agent is chosen.  A top buyer’s agent can help point out many of these red flags to potential home buyer’s while viewing a property. Elizabeth Thayer is a highly rated Buyer's agent with 17 years experience in Eugene Oregon.
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Tuesday, June 16, 2015

Freddie Mac Speaks on Importance of Consumer’s Credit in Homebuying. By Team Thayer Real Estate News


Since a borrower's credit score influences a lender's decision on whether or not to give that borrower a single family mortgage loan, the importance of having a good credit score when buying a home cannot be underestimated, according to Freddie Mac's blog on Monday.
According to Freddie Mac, the best way to earn a high credit score is to pay debts on time that include credit cards, car payments, or student loan payments. Since a recent survey by TransUnionfound that three out four consumers know their credit score is important but are unaware of the critical role the score plays when they are seeking a mortgage loan, on Monday Freddie Mac published a list of helpful hints (as reported by financial-education company Financial Finesse) to consider for consumers who are trying to build a solid credit score or consumers who may not know of its importance.
A credit score between 661 and 780 is generally considered good, with 700 being the "sweet spot," according to Freddie Mac; a credit score between 781 and 850 is considered excellent. Those with lower credit scores who do get accepted for mortgage loans (and other types of loans) will almost certainly pay higher interest rates than those with higher credit scores; therefore, those with higher credit scores pay less over the life of the loan due to paying less interest.
Freddie Mac encourages borrowers not just to stop at getting one credit score, but to obtain credit scores from all three of the main credit bureaus – Equifax, Experian, and TransUnion. Different actions that affect a consumer's credit are sometimes scored differently between the bureaus, which might cause a great deal of variation in that consumer's overall credit score.
Contrary to popular belief, Freddie Mac said transferring credit card balances to a card with a lower interest rate will not help, and could in fact hurt a consumer's credit. Freddie Mac encourages consumers to pay their existing accounts rather than opening new ones. Consumers are encouraged to track their scores regularly so that they might catch and correct any issues early, according to Freddie Mac.

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Monday, June 15, 2015

Negative Equity Rate Falling, But 4 Million Borrowers May Be Trapped Underwater Team Thayer Real Estate News

Justin Lee Thayer Eugene Oregon
Justin Lee Thayer / Eugene Oregon

The number of borrowers who owe more money than their home is worth is slowly decreasing; however, more than half of these borrowers are stuck in an underwater free fall with little to no hope of resurfacing.
According to Zillow’s first quarter Negative Equity Report released today, although the negative equity rate is falling, about 4 million homeowners owed at least 20 percent more than the worth of their home. In order for these underwater homeowners to even come close to breaking a sale, their homes would have to appreciate by more than the percentage at which they are underwater.
"It's great news that the level of negative equity is falling, but what really worries me is the depth of negative equity,” said Dr. Stan Humphries, Zillow’s chief economist. “Millions of Americans are so far underwater, it's likely they may not re-gain equity for up to a decade or more at these rates," "And because negative equity is concentrated so heavily at the lower end, it throws a real wrench in the traditional housing market conveyor belt.”
Zillow reported that the U.S. rate of negative equity among mortgaged homeowners was 15.4 percent in first quarter of 2015, a decrease from 16.9 percent last quarter. A year ago, this rate was 18.8 percent. The rate of underwater homeowners was much higher among the homes with the least value.
Negative equity improved in all of the 35 largest housing markets in the first quarter, Zillow says. This could be a sign that the country is steadily recovering from the lax lending rules and subsequent housing market bust of the last decade.
More than 15 million homeowners owed more on their mortgages than their homes were worth, placing them in negative equity at the peak of the real estate crisis, the report says. Foreclosures, short sales, and rapidly rising home values saved 7.9 million of these homeowners from the pool of negative equity by the end of the first quarter. Those that remain underwater are expected to be the most severe cases to repair.
Spring and summer are the busiest buying and selling seasons, Zillow says in the report. This year, there has been a high demand for homes in the bottom third of the market. However, a disproportionate number of those homeowners can not afford to sell to buyers looking for homes in their price range. Zillow found that more than 25 percent of those who own the least valuable third of homes were upside down, compared to about 8 percent of the most valuable third of homes.
“Potential first-time buyers have difficulty finding affordable homes for sale because those homes are stuck in negative equity. And owners of those homes can't move up the chain because they're stuck underwater in the entry-level home they bought years ago. The logjam at the bottom is having ripple effects throughout the market, and as home value growth slows, it will be years before it gets cleared up. In the meantime, we'll be left with volatile prices, limited inventory, tepid demand, elevated foreclosures, and a whole lot of frustration."
Home values are forecast to continue rising, but at a slower pace than recent years, Zillow says. Quicken Loans, reported on Tuesday that the difference between appraiser and homeowner perceptions of home values continued to increase for the fourth consecutive month in May. For the first time in 22 months, appraiser opinions of home values were 1.15 percent lower than homeowner estimates, according to Quicken Loans’ national Home Price Perception Index (HPPI).
“The HPPI, more than anything, is a reminder that there is no such thing as a national housing market,” said Bob Walters, Quicken Loans chief economist. “Every city, and every neighborhood, moves in different directions based on local factors. Consumers need to remember to watch their local area closely to understand the direction their market is heading.”

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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Saturday, June 13, 2015

Freddie Mac Auctions Extended Timeline Pool Offering of NPLs. Team Thayer Real Estate News

seal-on-moneyFreddie Mac announced Thursday that it sold 157 deeply delinquent non-performing loans (NPLs) totaling about $31 million in aggregate unpaid principal balance (UPB) in its first-ever Extended Timeline Pool Offering (EXPO) sale on June 3.
EXPOs differ from Freddie Mac's Standard Pool Offerings in that the loans include smaller pool sizes and a longer marketing period. Freddie Mac is targeting smaller investors with its EXPO auctions, which are intended to give these investors extra time to secure funding to participate in the NPL sales.
Freddie Mac began marketing the pool of loans on April 21 and encouraged private investors, minority- and women-owned businesses, non-profits, and neighborhood advocacy funds to bid in the auction, subject to meeting bidder qualification requirements. Those requirements include: the bidding servicer must be approved by and in good standing with GSEs; the servicers must prioritize loan modifications over non-home retention solutions and encourage sales to owner occupants and non-profits; servicers must comply with the Treasury Department's Making Home Affordable Programs, including the Home Affordable Modification Program (HAMP), and must evaluate eligible borrowers for those programs; servicers must evaluate borrowers for proprietary modifications when they are deemed non-HAMP eligible; and servicers must honor all completed modifications.
The winning bidder for the single pool of loans was Corona Asset Management XII, LLC. The cover bid price, the second highest bid, was in the high 80s percent of UPB. The weighted average of broker price opinion, loan-to-value was 80 percent; the average loan size of the 157 loans was $199,079; and the note rate was 5.6 percent.
The loans in the pool were an average of four years delinquent, meaning the loans have either been previously evaluated or are in various stages of loss mitigation or are in foreclosure. Approximately 22 percent of the aggregate pool balance was made up of loans that were previously modified and later became delinquent, according to Freddie Mac.
Wells Fargo Securities and the Williams Capital Group acted as advisors to Freddie Mac for the transaction. The transaction is expected to settle in late July 2015.

Justin Lee Thayer is Lane counties expert in market analysis for real estate investors. Call Justin @ 541-543-7287
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