http://pro.truliablog.com/industry-2/rising-home-prices-coming-to-a-market-near-you-2/?ecampaign=anews&eurl=pro.truliablog.com%2Findustry-2%2Frising-home-prices-coming-to-a-market-near-you-2%2F

Buyers if you are waiting for any reason other than you can not qualify right now, then you are missing the boat for sure.   No telling how much time there is, but waiting is no longer an option.  Interest rates WILL start to push up with signs of the housing markets recovering.  So you will lose every way possible — you will be paying more for the same thing each month, and you will have higher interest rates (= higher payment), and you will have more competition for the fewer number of homes that are on the market because there are always more buyers in the spring and summer than at any other time!     YOU Snooze, YOU Lose!

Trulia has just posted info that homeownership is more affordable than renting in 98 out of 100 major metor areas (not in San Franciso and Honolulu).    Denver is middle-ish at #59 out of 100.    But as home prices push up it will become harder/more costly to own each and every month.  Find a home and let’s get you started to home ownership!

    Colorado is supposed to get $73.3 million in funds to facilitate loan modifications for current home owners who are underwater.  You are supposed to be notified in the next 6-9 months if you are eligible but I am already hearing that you should be proactive and contact your lender if it is one of those in the settlement and get in line as soon as possible for the funds.  Channel 4 news says they have updated info on their website for those with loans now and for those who have been foreclosed upon during this 3 year period of time at:  www.cbsDenver.com

       Keep your eyes and ears open but don’t hold your breath, as with all things that have government involvement the wheels of progress turn very slowly and they are saying it will take 30-60 days just to “get systems in place” for handling all of this whole process.  But as I always tell folks foreclosure is usually never the best option.  And now there will be another way to try to get confidential and dignified help.  

One of the reasons the 2/3s of the complexes are not FHA approved for buyer loans is because too many investors own units in the complexes.   So we now have a vicious cycle that will take years and years to work out of.  First we need a strong economy to start working out of this messy cycle to raise the currently absurdly low prices of the condos.  Great opportunity for investors in condos … not so much for most first time home buyers.  Investors this is called a buying opportunity, but it’s one you’ve got to figure on holding for at least 5 years or more.

Condos have a legal description that identifies the condos by “unit” number.  Townhomes on the other hand are not affected by this situation and they have a legal description that identifies the unit by a lot number.   That’s what you buyer owner occupants should be looking for, and a good real estate agent working on your behalf can help you with that.

This will also impact current condos owners who need to sell as thepool of buyers just got smaller and whe the pool gets smaller prices go down.  Unfortunately many sellers will need to take a big bath or look at doing a short sale I fear.

                                                      Red Flags on Condos  Loans

Here are some of the specifics that FHA requires for a loan on a condo.  (Conventional loans have even higher owner occupant requirements!)

 Is the entire complex  50%  or greater owner occupied?

 That no more than 10% of units are owned by one investor or entity.

 That no more than 15% of the units are 30 days past due on their monthly assessments.  (There are complexes with a delinquency rate over 40%!)

 That at least 10% of the association’s budget be set aside for capital expenditures and deferred maintenance.  (This is tough for many HOAs to do right now!)

 The FHA also looks at special assessments and pending litigation, two other areas that can raise red flags. Be aware that nearly all pending litigation makes the entire complex un-financeable.  (A typical “pending litigation” is lawsuits to collect HOA fees!)

      Got to be careful though when interpreting news on home values in the Denver area.  One national real estate market watch group, CoreLogic, just reported that single family homes rose .2% in 2011, BUT you need to know that includes ALL sales, even distressed sales! When you exclude distressed sales, prices rose 1% in 2011 from 2010.  Denver was one of only 19 large cities that posted any price increase!  And actually, some areas and price points such as homes under $200,000 have seen wonderful increases from 1/1/11 to 1/1/12:  up to $85,000, were up 18%!!!;  $85,000 – $135,000, up 8%; and $135-$210,000, up 5%.

     Homes over $460,000 lost 11% and have 20 months worth of inventory on the market (4-5 months is excellent).   Cherry Hills Village in general had a 13% average price drop over the last year, while little ol’ Federal Heights saw a 13% increase!

      Calling all home buyers in the Denver metro area over $450,000, can you say “Everything is on sale right now which means Buy, Buy, Buy!”?  Interest rates aren’t going to get any lower so there is no point to waiting.

This means no more sitting on the fence buyers… you aren’t likely to get a much better “deal” for most types of homes, AND home loan interest rates went DOWN AGAIN! last week to more new lows.  It’s like stealing now!   Buyers, you can not miss this opportunity that you have right now.  You can’t lock in an really low interest rate until after you have a home under contract.  This could take you weeks or a month or month.  No telling where interest rates will be then, so ACT NOW, please.

Economic experts say they are seeing “a light at the end of the tunnel” and they  expect slow but steady growth this year. What is causing this optimism?

·       Strong retail sales

·       A slight increase in building permits

·       Stabilizing home prices

·       A strong rise in business leaders’ confidence in the 4^th quarter according to the Leeds Business Confidence Index.

·       Tom Clark, CEO of the Metro Economic Development Corporation says 2012 in Colorado will be “solid, maybe even exciting.”

Posted: 12 Jan 2012 09:37 AM PST

Effective Feb. 1, Freddie Mac (and now Fannie Mae too) is giving mortgage servicers expanded authority to provide six months of forbearance (not making payments with prior approval) to unemployed mortgage holders without prior approval, and an additional six months (12 months total) with prior approval. This new policy essentially doubles the previously offered forbearance period.

It’s important to note:

• This applies to FannieMae/Freddie Mac-owned or guaranteed loans only.
• There is ACTION required. The homeowner must contact the servicer to request the forbearance.
• Delinquent borrowers in an existing short-term forbearance plan can be evaluated for an extended forbearance term under the new policy. Again, homeowners will need to contact their servicer to apply.

To find out if your loan is a Fannie or a Freddie try the links below:

Fannie Mae Loan Lookup
http://loanlookup.fanniemae.com/loanlookup/

Freddie Mac Loan Lookup
https://ww3.freddiemac.com/corporate

Our lifestyle was a huge factor for many relocating here with our low cost of living and year round out door activities topping the list of many new folks to the Denver area.  Also his chart showed that our median home prices over the last ten years does NOT show a collapse, like many other areas, but that is was a “correction” — in otherwise a soft landing.   (Even though it hasn’t felt that way to many homeowners who have been here for 10 years or more.)

Low loan interest rates and a huge demand for rentals also increase our desirability.   When you need info on investing, I’ve got a couple of dynamite tools that can zero in on opportunities faster than almost any one else in town.   Best type of properties right now are single family homes and four or less attached “plexes”.   Give me a shout today for your investing needs.