Charlottesville Homeowners with 2nd Mortgages and the options they have.
You probably know that Charlottesville bankruptcy judges do NOT have the
power to reduce the principal of a first mortgage in the event you file for bankruptcy personally.
There was a move to change this. But the powerful lobby for the big elite banks defeated it in congress.
But are there cases where filing a Charlottesville bankruptcy can wipe out a mortgage?
Regarding 2nd Charlottesville mortgages...I have read that the US bankruptcy code section 6 allows for wiping out a second mortgage in a situation where the 1st mortgage loan amount is greater than the current value of the home.
Such that the second mortgage becomes an unsecured debt and subject to the bankruptcy provisions.
Is this true or even possible in your experience?
In a personal Charlottesville bankruptcy, if the second mortgage has no
equity coverage, the judge can turn the second mortgage into a personal loan and you can discharge it in bankruptcy.
Let's look at an example.
Say you owe $200,000 on a first and $100,000 on a second.
And say your Charlottesville house is worth $150,000.
The second has no equity at all.
The judge can turn the second into an unsecured loan, upon a motion that you bring in Charlottesville bankruptcy court.
The loan is then handled like a credit card or medical bill.
It is unsecured and can be discharged.
But don't think you have to file for bankruptcy in order to handle a second mortgage this way.
You can do a short sale, and often pay the second a few thousand dollars and get a release of liability.
But what if the second won't give that release to you?
You may be able to negotiate a small note for the second.
Or just let it go and hope they don't come after you.
If they do come after you, you can always file for bankruptcy later.
Oftentimes, a second mortgage can be handled by paying them a small amount and doing the Charlottesville short sale, and then just putting things off.
What you can put off until later will often be much easier to handle.
You probably can settle these left-over second mortages for a fraction of what you originally owe, quite often.
Without a Charlottesville bankruptcy.
And while improving your FICO score.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Wednesday, July 22, 2009
Charlottesville Homeowners with 2nd Mortgages
Charlottesville Homeowners with 2nd Mortgages and the options they have.
You probably know that Charlottesville bankruptcy judges do NOT have the
power to reduce the principal of a first mortgage in the event you file for bankruptcy personally.
There was a move to change this. But the powerful lobby for the big elite banks defeated it in congress.
But are there cases where filing a Charlottesville bankruptcy can wipe out a mortgage?
Regarding 2nd Charlottesville mortgages...I have read that the US bankruptcy code section 6 allows for wiping out a second mortgage in a situation where the 1st mortgage loan amount is greater than the current value of the home.
Such that the second mortgage becomes an unsecured debt and subject to the bankruptcy provisions.
Is this true or even possible in your experience?
In a personal Charlottesville bankruptcy, if the second mortgage has no
equity coverage, the judge can turn the second mortgage into a personal loan and you can discharge it in bankruptcy.
Let's look at an example.
Say you owe $200,000 on a first and $100,000 on a second.
And say your Charlottesville house is worth $150,000.
The second has no equity at all.
The judge can turn the second into an unsecured loan, upon a motion that you bring in Charlottesville bankruptcy court.
The loan is then handled like a credit card or medical bill.
It is unsecured and can be discharged.
But don't think you have to file for bankruptcy in order to handle a second mortgage this way.
You can do a short sale, and often pay the second a few thousand dollars and get a release of liability.
But what if the second won't give that release to you?
You may be able to negotiate a small note for the second.
Or just let it go and hope they don't come after you.
If they do come after you, you can always file for bankruptcy later.
Oftentimes, a second mortgage can be handled by paying them a small amount and doing the Charlottesville short sale, and then just putting things off.
What you can put off until later will often be much easier to handle.
You probably can settle these left-over second mortages for a fraction of what you originally owe, quite often.
Without a Charlottesville bankruptcy.
And while improving your FICO score.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
You probably know that Charlottesville bankruptcy judges do NOT have the
power to reduce the principal of a first mortgage in the event you file for bankruptcy personally.
There was a move to change this. But the powerful lobby for the big elite banks defeated it in congress.
But are there cases where filing a Charlottesville bankruptcy can wipe out a mortgage?
Regarding 2nd Charlottesville mortgages...I have read that the US bankruptcy code section 6 allows for wiping out a second mortgage in a situation where the 1st mortgage loan amount is greater than the current value of the home.
Such that the second mortgage becomes an unsecured debt and subject to the bankruptcy provisions.
Is this true or even possible in your experience?
In a personal Charlottesville bankruptcy, if the second mortgage has no
equity coverage, the judge can turn the second mortgage into a personal loan and you can discharge it in bankruptcy.
Let's look at an example.
Say you owe $200,000 on a first and $100,000 on a second.
And say your Charlottesville house is worth $150,000.
The second has no equity at all.
The judge can turn the second into an unsecured loan, upon a motion that you bring in Charlottesville bankruptcy court.
The loan is then handled like a credit card or medical bill.
It is unsecured and can be discharged.
But don't think you have to file for bankruptcy in order to handle a second mortgage this way.
You can do a short sale, and often pay the second a few thousand dollars and get a release of liability.
But what if the second won't give that release to you?
You may be able to negotiate a small note for the second.
Or just let it go and hope they don't come after you.
If they do come after you, you can always file for bankruptcy later.
Oftentimes, a second mortgage can be handled by paying them a small amount and doing the Charlottesville short sale, and then just putting things off.
What you can put off until later will often be much easier to handle.
You probably can settle these left-over second mortages for a fraction of what you originally owe, quite often.
Without a Charlottesville bankruptcy.
And while improving your FICO score.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Charlottesville Foreclosure Projections
Charlottesville Foreclosure Projections
If the majority of Wall Street economists are right, the U.S. recession will end this quarter and the global recovery won't be far behind. And our window of opportunity for once in a lifetime deals is here, but not for long. (Read on below.)
On Wednesday, the International Monetary Fund is expected to nudge up its forecast for 2010 global growth from the current estimate of 1.9 percent, primarily because fears of a more serious economic setback have not materialized.
That makes for a brighter backdrop to this week's meeting of leaders from the Group of Eight major industrial nations in Italy, where the economic outlook is top of the agenda.
As you have noticed lately in the skittishness of the stock market, recovery will not be a smooth process. As Bank of America Securities economist, Drew Matus, put it, this quarter marks a "new beginning with some nagging reminders of the past."
First, the good news.
1. The U.S. housing slump appears to be near an end after 3-1/2 years of decline. That, combined with a strong stock market performance in the second quarter, should stop the bleeding in household wealth. (Read more about housing bottom news here.)
2. Government stimulus money is flowing in the United States and other major economies including Japan, China and Germany.
3. Global manufacturing surveys show output expanding after a year-long period of contraction. In the United States, the pace of new orders is improving while inventories keep shrinking, so production may need to pick up soon to meet demand.
4. Figures due on Thursday are expected to provide a good illustration of that. Economists polled by Reuters think U.S. wholesale inventories dropped 1.1 percent in May, while sales were flat.
Those are among the reasons why Matus recently raised his U.S. economic outlook to show an above-consensus 2.7 percent jump in 2009 gross domestic product.
Now for the bad news.
1. Wednesday's report on U.S. consumer credit bears close watching for more evidence that Americans are paring their credit card debt as banks clamp down on lending and consumers rethink attitudes toward borrowing and spending.
2. Job losses are likely to keep piling up at least through the end of the year. Last week's disappointingly weak June employment report served as a reminder of that. The data showed employers cut a net 467,000 positions last month, far more than expected and considerably more than in May.
The White House expects unemployment to climb to 10 percent in the next two to three months, far higher than it envisioned back in January when it was pushing for its $787 billion economic stimulus package.
"The heavy loss of jobs in June is a warning that the road to recovery will be bumpy, but doesn't yet indicate that we have gone off the track," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.
If there is a bright side to stubbornly high unemployment, it would be that it helps keep inflation at bay even after the recovery gets going.
That takes some of the heat off the U.S. Federal Reserve and its central bank counterparts in Europe and Japan to raise interest rates once the recovery begins.
Those low rates and even lower home prices are making affordability at levels not seen since the 1970s.
It's absolutely time for you to buy below todays already low prices, from very motivated sellers, and then quickly sell and put profits in your bank today. This window of opportunity is here now, but it is hard to say for how long.
All the key indicators show how Charlottesville housing is not only stabilizing, but improving.
Just today the Pending Charlottesville home sales show a sustained upward trend, rising for the fourth month in a row, from our very favorable housing affordability and a first-time buyer tax credit boosting activity.
The Pending Charlottesville Home Sales Index based on contracts signed in May, increased 0.1 percent from an upwardly revised reading in April, and is 6.7 percent higher than May 2008.
The last time there were four consecutive monthly gains was in October 2004.
Wow, the Charlottesville real estate market is really heating up.
And if you haven't already jumped in to get your Charlottesville foreclosure deals, you need to do that NOW.
Regional Breakdown:
Northeast rose 3.1 percent May over April and is 6.8 percent above May 2008.
Midwest slipped 1.3 percent May over April, but is 11.4 percent above May 2008.
South declined 1.7 percent May over April, but is 7.9 percent higher than May 2008.
West rose 2.2 percent May over Apri, and is 0.7 percent above May 2008.
NAR’s Housing Affordability Index remains at historic highs.
The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970.
“Under these conditions the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” NAAR's chief economist, Yun said.
A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest.
Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford.
The affordable price was significantly higher than the median existing Charlottesville single-family home price in May, which was $172,900.
The first-time buyer tax credit also is benefiting the market.
“Strong activity by entry level Charlottesville home buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.
Pending home sales is a forward looking report.
Therefore you should see existing-home sales continue to trend up through the rest of the year. Even with all the new Charlottesville foreclosures hitting the market, with builders not building, supply is shrinking.
In some parts of the country, like California, housing supply is less than a 4 month supply.
That is great news for us, as you will see multiple offers when you price your houses right on the resale.
And at the same time, there is a ton of inventory from the banks that has NOT hit the market, but they own it and need to sell it.
That is what we call "phantom inventory" and you absolutely want to work those leads for bottom picking deals.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
If the majority of Wall Street economists are right, the U.S. recession will end this quarter and the global recovery won't be far behind. And our window of opportunity for once in a lifetime deals is here, but not for long. (Read on below.)
On Wednesday, the International Monetary Fund is expected to nudge up its forecast for 2010 global growth from the current estimate of 1.9 percent, primarily because fears of a more serious economic setback have not materialized.
That makes for a brighter backdrop to this week's meeting of leaders from the Group of Eight major industrial nations in Italy, where the economic outlook is top of the agenda.
As you have noticed lately in the skittishness of the stock market, recovery will not be a smooth process. As Bank of America Securities economist, Drew Matus, put it, this quarter marks a "new beginning with some nagging reminders of the past."
First, the good news.
1. The U.S. housing slump appears to be near an end after 3-1/2 years of decline. That, combined with a strong stock market performance in the second quarter, should stop the bleeding in household wealth. (Read more about housing bottom news here.)
2. Government stimulus money is flowing in the United States and other major economies including Japan, China and Germany.
3. Global manufacturing surveys show output expanding after a year-long period of contraction. In the United States, the pace of new orders is improving while inventories keep shrinking, so production may need to pick up soon to meet demand.
4. Figures due on Thursday are expected to provide a good illustration of that. Economists polled by Reuters think U.S. wholesale inventories dropped 1.1 percent in May, while sales were flat.
Those are among the reasons why Matus recently raised his U.S. economic outlook to show an above-consensus 2.7 percent jump in 2009 gross domestic product.
Now for the bad news.
1. Wednesday's report on U.S. consumer credit bears close watching for more evidence that Americans are paring their credit card debt as banks clamp down on lending and consumers rethink attitudes toward borrowing and spending.
2. Job losses are likely to keep piling up at least through the end of the year. Last week's disappointingly weak June employment report served as a reminder of that. The data showed employers cut a net 467,000 positions last month, far more than expected and considerably more than in May.
The White House expects unemployment to climb to 10 percent in the next two to three months, far higher than it envisioned back in January when it was pushing for its $787 billion economic stimulus package.
"The heavy loss of jobs in June is a warning that the road to recovery will be bumpy, but doesn't yet indicate that we have gone off the track," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.
If there is a bright side to stubbornly high unemployment, it would be that it helps keep inflation at bay even after the recovery gets going.
That takes some of the heat off the U.S. Federal Reserve and its central bank counterparts in Europe and Japan to raise interest rates once the recovery begins.
Those low rates and even lower home prices are making affordability at levels not seen since the 1970s.
It's absolutely time for you to buy below todays already low prices, from very motivated sellers, and then quickly sell and put profits in your bank today. This window of opportunity is here now, but it is hard to say for how long.
All the key indicators show how Charlottesville housing is not only stabilizing, but improving.
Just today the Pending Charlottesville home sales show a sustained upward trend, rising for the fourth month in a row, from our very favorable housing affordability and a first-time buyer tax credit boosting activity.
The Pending Charlottesville Home Sales Index based on contracts signed in May, increased 0.1 percent from an upwardly revised reading in April, and is 6.7 percent higher than May 2008.
The last time there were four consecutive monthly gains was in October 2004.
Wow, the Charlottesville real estate market is really heating up.
And if you haven't already jumped in to get your Charlottesville foreclosure deals, you need to do that NOW.
Regional Breakdown:
Northeast rose 3.1 percent May over April and is 6.8 percent above May 2008.
Midwest slipped 1.3 percent May over April, but is 11.4 percent above May 2008.
South declined 1.7 percent May over April, but is 7.9 percent higher than May 2008.
West rose 2.2 percent May over Apri, and is 0.7 percent above May 2008.
NAR’s Housing Affordability Index remains at historic highs.
The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970.
“Under these conditions the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” NAAR's chief economist, Yun said.
A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest.
Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford.
The affordable price was significantly higher than the median existing Charlottesville single-family home price in May, which was $172,900.
The first-time buyer tax credit also is benefiting the market.
“Strong activity by entry level Charlottesville home buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.
Pending home sales is a forward looking report.
Therefore you should see existing-home sales continue to trend up through the rest of the year. Even with all the new Charlottesville foreclosures hitting the market, with builders not building, supply is shrinking.
In some parts of the country, like California, housing supply is less than a 4 month supply.
That is great news for us, as you will see multiple offers when you price your houses right on the resale.
And at the same time, there is a ton of inventory from the banks that has NOT hit the market, but they own it and need to sell it.
That is what we call "phantom inventory" and you absolutely want to work those leads for bottom picking deals.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Charlottesville Foreclosure Projections
Charlottesville Foreclosure Projections
If the majority of Wall Street economists are right, the U.S. recession will end this quarter and the global recovery won't be far behind. And our window of opportunity for once in a lifetime deals is here, but not for long. (Read on below.)
On Wednesday, the International Monetary Fund is expected to nudge up its forecast for 2010 global growth from the current estimate of 1.9 percent, primarily because fears of a more serious economic setback have not materialized.
That makes for a brighter backdrop to this week's meeting of leaders from the Group of Eight major industrial nations in Italy, where the economic outlook is top of the agenda.
As you have noticed lately in the skittishness of the stock market, recovery will not be a smooth process. As Bank of America Securities economist, Drew Matus, put it, this quarter marks a "new beginning with some nagging reminders of the past."
First, the good news.
1. The U.S. housing slump appears to be near an end after 3-1/2 years of decline. That, combined with a strong stock market performance in the second quarter, should stop the bleeding in household wealth. (Read more about housing bottom news here.)
2. Government stimulus money is flowing in the United States and other major economies including Japan, China and Germany.
3. Global manufacturing surveys show output expanding after a year-long period of contraction. In the United States, the pace of new orders is improving while inventories keep shrinking, so production may need to pick up soon to meet demand.
4. Figures due on Thursday are expected to provide a good illustration of that. Economists polled by Reuters think U.S. wholesale inventories dropped 1.1 percent in May, while sales were flat.
Those are among the reasons why Matus recently raised his U.S. economic outlook to show an above-consensus 2.7 percent jump in 2009 gross domestic product.
Now for the bad news.
1. Wednesday's report on U.S. consumer credit bears close watching for more evidence that Americans are paring their credit card debt as banks clamp down on lending and consumers rethink attitudes toward borrowing and spending.
2. Job losses are likely to keep piling up at least through the end of the year. Last week's disappointingly weak June employment report served as a reminder of that. The data showed employers cut a net 467,000 positions last month, far more than expected and considerably more than in May.
The White House expects unemployment to climb to 10 percent in the next two to three months, far higher than it envisioned back in January when it was pushing for its $787 billion economic stimulus package.
"The heavy loss of jobs in June is a warning that the road to recovery will be bumpy, but doesn't yet indicate that we have gone off the track," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.
If there is a bright side to stubbornly high unemployment, it would be that it helps keep inflation at bay even after the recovery gets going.
That takes some of the heat off the U.S. Federal Reserve and its central bank counterparts in Europe and Japan to raise interest rates once the recovery begins.
Those low rates and even lower home prices are making affordability at levels not seen since the 1970s.
It's absolutely time for you to buy below todays already low prices, from very motivated sellers, and then quickly sell and put profits in your bank today. This window of opportunity is here now, but it is hard to say for how long.
All the key indicators show how Charlottesville housing is not only stabilizing, but improving.
Just today the Pending Charlottesville home sales show a sustained upward trend, rising for the fourth month in a row, from our very favorable housing affordability and a first-time buyer tax credit boosting activity.
The Pending Charlottesville Home Sales Index based on contracts signed in May, increased 0.1 percent from an upwardly revised reading in April, and is 6.7 percent higher than May 2008.
The last time there were four consecutive monthly gains was in October 2004.
Wow, the Charlottesville real estate market is really heating up.
And if you haven't already jumped in to get your Charlottesville foreclosure deals, you need to do that NOW.
Regional Breakdown:
Northeast rose 3.1 percent May over April and is 6.8 percent above May 2008.
Midwest slipped 1.3 percent May over April, but is 11.4 percent above May 2008.
South declined 1.7 percent May over April, but is 7.9 percent higher than May 2008.
West rose 2.2 percent May over Apri, and is 0.7 percent above May 2008.
NAR’s Housing Affordability Index remains at historic highs.
The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970.
“Under these conditions the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” NAAR's chief economist, Yun said.
A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest.
Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford.
The affordable price was significantly higher than the median existing Charlottesville single-family home price in May, which was $172,900.
The first-time buyer tax credit also is benefiting the market.
“Strong activity by entry level Charlottesville home buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.
Pending home sales is a forward looking report.
Therefore you should see existing-home sales continue to trend up through the rest of the year. Even with all the new Charlottesville foreclosures hitting the market, with builders not building, supply is shrinking.
In some parts of the country, like California, housing supply is less than a 4 month supply.
That is great news for us, as you will see multiple offers when you price your houses right on the resale.
And at the same time, there is a ton of inventory from the banks that has NOT hit the market, but they own it and need to sell it.
That is what we call "phantom inventory" and you absolutely want to work those leads for bottom picking deals.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
If the majority of Wall Street economists are right, the U.S. recession will end this quarter and the global recovery won't be far behind. And our window of opportunity for once in a lifetime deals is here, but not for long. (Read on below.)
On Wednesday, the International Monetary Fund is expected to nudge up its forecast for 2010 global growth from the current estimate of 1.9 percent, primarily because fears of a more serious economic setback have not materialized.
That makes for a brighter backdrop to this week's meeting of leaders from the Group of Eight major industrial nations in Italy, where the economic outlook is top of the agenda.
As you have noticed lately in the skittishness of the stock market, recovery will not be a smooth process. As Bank of America Securities economist, Drew Matus, put it, this quarter marks a "new beginning with some nagging reminders of the past."
First, the good news.
1. The U.S. housing slump appears to be near an end after 3-1/2 years of decline. That, combined with a strong stock market performance in the second quarter, should stop the bleeding in household wealth. (Read more about housing bottom news here.)
2. Government stimulus money is flowing in the United States and other major economies including Japan, China and Germany.
3. Global manufacturing surveys show output expanding after a year-long period of contraction. In the United States, the pace of new orders is improving while inventories keep shrinking, so production may need to pick up soon to meet demand.
4. Figures due on Thursday are expected to provide a good illustration of that. Economists polled by Reuters think U.S. wholesale inventories dropped 1.1 percent in May, while sales were flat.
Those are among the reasons why Matus recently raised his U.S. economic outlook to show an above-consensus 2.7 percent jump in 2009 gross domestic product.
Now for the bad news.
1. Wednesday's report on U.S. consumer credit bears close watching for more evidence that Americans are paring their credit card debt as banks clamp down on lending and consumers rethink attitudes toward borrowing and spending.
2. Job losses are likely to keep piling up at least through the end of the year. Last week's disappointingly weak June employment report served as a reminder of that. The data showed employers cut a net 467,000 positions last month, far more than expected and considerably more than in May.
The White House expects unemployment to climb to 10 percent in the next two to three months, far higher than it envisioned back in January when it was pushing for its $787 billion economic stimulus package.
"The heavy loss of jobs in June is a warning that the road to recovery will be bumpy, but doesn't yet indicate that we have gone off the track," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.
If there is a bright side to stubbornly high unemployment, it would be that it helps keep inflation at bay even after the recovery gets going.
That takes some of the heat off the U.S. Federal Reserve and its central bank counterparts in Europe and Japan to raise interest rates once the recovery begins.
Those low rates and even lower home prices are making affordability at levels not seen since the 1970s.
It's absolutely time for you to buy below todays already low prices, from very motivated sellers, and then quickly sell and put profits in your bank today. This window of opportunity is here now, but it is hard to say for how long.
All the key indicators show how Charlottesville housing is not only stabilizing, but improving.
Just today the Pending Charlottesville home sales show a sustained upward trend, rising for the fourth month in a row, from our very favorable housing affordability and a first-time buyer tax credit boosting activity.
The Pending Charlottesville Home Sales Index based on contracts signed in May, increased 0.1 percent from an upwardly revised reading in April, and is 6.7 percent higher than May 2008.
The last time there were four consecutive monthly gains was in October 2004.
Wow, the Charlottesville real estate market is really heating up.
And if you haven't already jumped in to get your Charlottesville foreclosure deals, you need to do that NOW.
Regional Breakdown:
Northeast rose 3.1 percent May over April and is 6.8 percent above May 2008.
Midwest slipped 1.3 percent May over April, but is 11.4 percent above May 2008.
South declined 1.7 percent May over April, but is 7.9 percent higher than May 2008.
West rose 2.2 percent May over Apri, and is 0.7 percent above May 2008.
NAR’s Housing Affordability Index remains at historic highs.
The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970.
“Under these conditions the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” NAAR's chief economist, Yun said.
A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest.
Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford.
The affordable price was significantly higher than the median existing Charlottesville single-family home price in May, which was $172,900.
The first-time buyer tax credit also is benefiting the market.
“Strong activity by entry level Charlottesville home buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.
Pending home sales is a forward looking report.
Therefore you should see existing-home sales continue to trend up through the rest of the year. Even with all the new Charlottesville foreclosures hitting the market, with builders not building, supply is shrinking.
In some parts of the country, like California, housing supply is less than a 4 month supply.
That is great news for us, as you will see multiple offers when you price your houses right on the resale.
And at the same time, there is a ton of inventory from the banks that has NOT hit the market, but they own it and need to sell it.
That is what we call "phantom inventory" and you absolutely want to work those leads for bottom picking deals.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Tuesday, July 21, 2009
Mortgage Rates Charlottesville and Central Virginia
Charlottesville and Central Virginia Daily Mortgage Rate Information and Suggestions from Dominion Trust Mortgage and Leonard Winslow
Tuesday's bond market initially opened in negative territory but has since rallied well into positive ground. The stock markets are mixed with the Dow up 60 points and the Nasdaq down 3 points. The bond market is currently up 19/32, which will likely improve this morning's mortgage rates by approximately .250 - .375 of a discount point.
Today's bond rally is the result of Fed Chairman Bernanke's semi-annual testimony to Congress on the status of the economy and monetary policy. He stated that the economy's slowdown has slowed significantly, meaning the recession may be ending relatively soon. But he cautioned that there is uncertainty ahead for the economy and strengthening may be gradual. He also sated that the labor market remains weak and that the unemployment rate will likely remain higher than they would prefer until 2012 or later.
The weak employment and housing markets should help keep inflation under control in the near future, making long-term securities such as mortgage-related bonds more attractive to investors. This led to the surge in bond prices this morning and pushed today's mortgage rates lower. And if bond prices continue to rise, we may even see more improvements in rates later today. In other words, today's events were extremely favorable to mortgage shoppers.
Mr. Bernanke will repeat this act tomorrow to the Senate Banking Committee, likely with little change to his prepared testimony. Therefore, his words are not expected to have much of an impact on the markets unless an answer to a Senator's question surprises traders or contradicts something portrayed today.
There is no relevant economic data scheduled for release tomorrow to influence bond trading or mortgage rates. This should be good news for mortgage rates as today's rally may continue into tomorrow's trading with nothing on the calendar that has the potential to derail it.
The next monthly econo mic data comes from the National Association of Realtors Thursday morning when they post June's Existing Home Sales figures. This report gives us a measurement of housing sector strength and mortgage credit demand, but it is not considered highly important and often has a minimal impact on mortgage rates. Current forecasts are calling for an increase from May's sales totals. A smaller than expected increase or a decline in sales would be considered good news for bonds and mortgage rates because a weak housing sector would make it difficult for the economy to recover anytime soon. However, unless this data varies greatly from forecasts it probably will not lead to much of a change in rates.
If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Tuesday's bond market initially opened in negative territory but has since rallied well into positive ground. The stock markets are mixed with the Dow up 60 points and the Nasdaq down 3 points. The bond market is currently up 19/32, which will likely improve this morning's mortgage rates by approximately .250 - .375 of a discount point.
Today's bond rally is the result of Fed Chairman Bernanke's semi-annual testimony to Congress on the status of the economy and monetary policy. He stated that the economy's slowdown has slowed significantly, meaning the recession may be ending relatively soon. But he cautioned that there is uncertainty ahead for the economy and strengthening may be gradual. He also sated that the labor market remains weak and that the unemployment rate will likely remain higher than they would prefer until 2012 or later.
The weak employment and housing markets should help keep inflation under control in the near future, making long-term securities such as mortgage-related bonds more attractive to investors. This led to the surge in bond prices this morning and pushed today's mortgage rates lower. And if bond prices continue to rise, we may even see more improvements in rates later today. In other words, today's events were extremely favorable to mortgage shoppers.
Mr. Bernanke will repeat this act tomorrow to the Senate Banking Committee, likely with little change to his prepared testimony. Therefore, his words are not expected to have much of an impact on the markets unless an answer to a Senator's question surprises traders or contradicts something portrayed today.
There is no relevant economic data scheduled for release tomorrow to influence bond trading or mortgage rates. This should be good news for mortgage rates as today's rally may continue into tomorrow's trading with nothing on the calendar that has the potential to derail it.
The next monthly econo mic data comes from the National Association of Realtors Thursday morning when they post June's Existing Home Sales figures. This report gives us a measurement of housing sector strength and mortgage credit demand, but it is not considered highly important and often has a minimal impact on mortgage rates. Current forecasts are calling for an increase from May's sales totals. A smaller than expected increase or a decline in sales would be considered good news for bonds and mortgage rates because a weak housing sector would make it difficult for the economy to recover anytime soon. However, unless this data varies greatly from forecasts it probably will not lead to much of a change in rates.
If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Mortgage Rates Charlottesville and Central Virginia
Charlottesville and Central Virginia Daily Mortgage Rate Information and Suggestions from Dominion Trust Mortgage and Leonard Winslow
Tuesday's bond market initially opened in negative territory but has since rallied well into positive ground. The stock markets are mixed with the Dow up 60 points and the Nasdaq down 3 points. The bond market is currently up 19/32, which will likely improve this morning's mortgage rates by approximately .250 - .375 of a discount point.
Today's bond rally is the result of Fed Chairman Bernanke's semi-annual testimony to Congress on the status of the economy and monetary policy. He stated that the economy's slowdown has slowed significantly, meaning the recession may be ending relatively soon. But he cautioned that there is uncertainty ahead for the economy and strengthening may be gradual. He also sated that the labor market remains weak and that the unemployment rate will likely remain higher than they would prefer until 2012 or later.
The weak employment and housing markets should help keep inflation under control in the near future, making long-term securities such as mortgage-related bonds more attractive to investors. This led to the surge in bond prices this morning and pushed today's mortgage rates lower. And if bond prices continue to rise, we may even see more improvements in rates later today. In other words, today's events were extremely favorable to mortgage shoppers.
Mr. Bernanke will repeat this act tomorrow to the Senate Banking Committee, likely with little change to his prepared testimony. Therefore, his words are not expected to have much of an impact on the markets unless an answer to a Senator's question surprises traders or contradicts something portrayed today.
There is no relevant economic data scheduled for release tomorrow to influence bond trading or mortgage rates. This should be good news for mortgage rates as today's rally may continue into tomorrow's trading with nothing on the calendar that has the potential to derail it.
The next monthly econo mic data comes from the National Association of Realtors Thursday morning when they post June's Existing Home Sales figures. This report gives us a measurement of housing sector strength and mortgage credit demand, but it is not considered highly important and often has a minimal impact on mortgage rates. Current forecasts are calling for an increase from May's sales totals. A smaller than expected increase or a decline in sales would be considered good news for bonds and mortgage rates because a weak housing sector would make it difficult for the economy to recover anytime soon. However, unless this data varies greatly from forecasts it probably will not lead to much of a change in rates.
If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Tuesday's bond market initially opened in negative territory but has since rallied well into positive ground. The stock markets are mixed with the Dow up 60 points and the Nasdaq down 3 points. The bond market is currently up 19/32, which will likely improve this morning's mortgage rates by approximately .250 - .375 of a discount point.
Today's bond rally is the result of Fed Chairman Bernanke's semi-annual testimony to Congress on the status of the economy and monetary policy. He stated that the economy's slowdown has slowed significantly, meaning the recession may be ending relatively soon. But he cautioned that there is uncertainty ahead for the economy and strengthening may be gradual. He also sated that the labor market remains weak and that the unemployment rate will likely remain higher than they would prefer until 2012 or later.
The weak employment and housing markets should help keep inflation under control in the near future, making long-term securities such as mortgage-related bonds more attractive to investors. This led to the surge in bond prices this morning and pushed today's mortgage rates lower. And if bond prices continue to rise, we may even see more improvements in rates later today. In other words, today's events were extremely favorable to mortgage shoppers.
Mr. Bernanke will repeat this act tomorrow to the Senate Banking Committee, likely with little change to his prepared testimony. Therefore, his words are not expected to have much of an impact on the markets unless an answer to a Senator's question surprises traders or contradicts something portrayed today.
There is no relevant economic data scheduled for release tomorrow to influence bond trading or mortgage rates. This should be good news for mortgage rates as today's rally may continue into tomorrow's trading with nothing on the calendar that has the potential to derail it.
The next monthly econo mic data comes from the National Association of Realtors Thursday morning when they post June's Existing Home Sales figures. This report gives us a measurement of housing sector strength and mortgage credit demand, but it is not considered highly important and often has a minimal impact on mortgage rates. Current forecasts are calling for an increase from May's sales totals. A smaller than expected increase or a decline in sales would be considered good news for bonds and mortgage rates because a weak housing sector would make it difficult for the economy to recover anytime soon. However, unless this data varies greatly from forecasts it probably will not lead to much of a change in rates.
If I were considering financing/refinancing a home, I would.... Float if my closing was taking place within 7 days... Float if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
Charlottesville and Central Virginia Short Sale Information - Commission
The most common concerns and questions regarding a short sale is commission. Who pays the commission?
In a short sale, the bank pays everything at closing from the cost of the termite inspection all they way to the recordation fee. This includes the commission. The listing agent should be in contact with the bank on behalf of the seller and the contract. The listing agent is resposible to negotiate the overall commission with the bank. THE SELLER (HOMEOWNER) DOES NOT HAVE TO PAY THE COMMISSION. Most banks will pay anywhere between 4% and 6%. Depending on the listings agent and their ability to negotiate, I have seen commissions as high as 8%. Of course, the larger banks have their SOP, or Standard Operating Procedure. Can't really negotiate that, but the smaller, more local banks can generally be pursuaded a little bit more.
In conclusion, if you or anyone you know is in trouble of losing their home, tell them to short sale before they get foreclosed on. A short sale is way better for the individual than a foreclosure is. There are certified people in the Charlottesville and Central Virginia area that can help. Visit www.charlottesvilleshortsale.com for more information or to save your home!
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
In a short sale, the bank pays everything at closing from the cost of the termite inspection all they way to the recordation fee. This includes the commission. The listing agent should be in contact with the bank on behalf of the seller and the contract. The listing agent is resposible to negotiate the overall commission with the bank. THE SELLER (HOMEOWNER) DOES NOT HAVE TO PAY THE COMMISSION. Most banks will pay anywhere between 4% and 6%. Depending on the listings agent and their ability to negotiate, I have seen commissions as high as 8%. Of course, the larger banks have their SOP, or Standard Operating Procedure. Can't really negotiate that, but the smaller, more local banks can generally be pursuaded a little bit more.
In conclusion, if you or anyone you know is in trouble of losing their home, tell them to short sale before they get foreclosed on. A short sale is way better for the individual than a foreclosure is. There are certified people in the Charlottesville and Central Virginia area that can help. Visit www.charlottesvilleshortsale.com for more information or to save your home!
Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com
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