Diane Wolta

Reason #14 to Buy a Home in Denver NOW

dwolta — Mon, 20 Feb 2012 18:50:21 +0000

On Valentine’s Day CNNMoney ran a story of a survey of 1,000 single people and it found that over 33% of single women and 18% of men prefer to date a homeowner than a renter. Second, fewer than 5% of all singles would date someone who still lives in their parents’ home, for which Michael Corbett, a spokeman for Trulia said, “If you’re still living with your folks, you’re dead-on-arrival for dating.” This is a fun, but very pointed, piece of info for our local real estate market, from my friend and premier loan officer Lonnie Glessner, Cell: 303-881-6374, Lonnie@EndingFinancialInsanity.com. Thanks Lonnie!

Where’s my $2,000…..?

dwolta — Sun, 12 Feb 2012 18:31:02 +0000

On Feb. 9^th the U.S. government announced a largest settlement with an industry since the tobacco industry settlement in 1998. Folks who were homeowners between 1/1/08 and 12/31/11 and who lost their home to foreclosure during this period of time will be eligible for up to $2,000 from the U.S. government from this settlement with several of the largest banks: Ally Financial (formerly GMAC), Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.

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.

Red Flags on Loans for Condos

dwolta — Wed, 08 Feb 2012 17:04:07 +0000

I’ve posted on this topic before …. now come the evidence. Currently only about 1/3 of the condo complexes in the Denver metro area are on the FHA approved list according to recent review. Since most first time buyers use FHA loans to buy a condo, 2/3s of the condo complexes are not available for FHA buyer right now. Who can buy in these complexes? Cash buyers. Generally cash buyers are investors.

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!)

Denver Single Family Home Prices – Way Up and Way Down!

dwolta — Sun, 05 Feb 2012 18:01:34 +0000

Denver area real estate values and the market is a-changin’. As far as single family home sales are concerned the news is good for sellers, and buyers you need to get off the fence and take action NOW. Under $300,000 or so, it’s a seller’s market for Denver area single family homes. That’s good news for sellers, in terms of getting a pretty quick sale IF you are at a realistic price. But of course home values are nowhere near what they were 3 or 4 years ago, hence my caution that they must offered at a realistic current market price. It’s a seller’s market because there is a lack of inventory. This will help push home prices up but we aren’t getting back to market high values of 3 or 4 years ago over night. And amazingly, at least for right now, buyers are still rather picky when it comes to the type of home for which they will pay a princely sum!

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.

YES! on Denver’s Solid Economy!!!

dwolta — Mon, 16 Jan 2012 22:55:17 +0000

Everywhere I look I see signs and read things that tell us Denver is starting … maybe just with baby steps, but starting none the less … to get a handle on its economy which means the real estate market is most likely at a bottom.

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.”

Important Forebearance (Time out) Loan Info

dwolta — Fri, 13 Jan 2012 17:10:25 +0000

Freddie Mac Announces Up to 12-Month Forbearance for Unemployed and Fannie Mae did the same this week also.

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

Denver is #1 for Real Estate Investing!!!

dwolta — Fri, 06 Jan 2012 03:27:57 +0000

The stories keep coming about what a great market we have for investing in real estate. Just a week ago, Greg Rand of Own America appeared on Fox TV and touted Denver as the #1 city in the U.S. for investing in real estate. There were a multitude of reasons given such as, Denver is getting in-migration from all over the U.S. Our average age is only 31 years. Our foreclosure rate is now 1/2 of the national average.

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.

Fab SE Denver,Close2Lt.Rail,Updated!MoveIn…Tour

dwolta — Tue, 07 Sep 2010 15:57:58 +0000

Great location and views that no other home in the area has. This one is special and just waiting for personal touches —- under $285,000!

June Home Sale Stats r In ….

dwolta — Sun, 11 Jul 2010 04:52:04 +0000

as expected, not the best of news for anyone trying to sell a home right now….but buyers should be smiling.

Denver’s housing market frenzy fizzles after tax credit expires

By Steve Raabe
The Denver Post

Posted: 07/10/2010 01:00:00 AM MDT

Homebuyers stayed on the sidelines in June as the metro Denver market cooled off, absent the inducement of federal tax credits.

Properties under contract for sale fell 31 percent in June compared with the same month last year.

The slowdown was expected after a surge of activity earlier this year prompted by government incentives for first-time and move-up buyers.

Home purchasers had until the end of April to put a home under contract to qualify for an $8,000 federal tax credit for first-time owners or a $6,500 tax credit for move-up homebuyers.

The result was near-record activity in April. But the resulting hangover produced sharp drops in sales contracts in both May and June compared with the same periods a year earlier.

Properties under contract in June totalled 3,885 compared with 5,664 in June 2009. The number of properties closed in June was 4,046, down 3.3 percent from the previous year.

Denver real estate agent Gary Bauer, who compiles monthly statistics on market activity, said the June decline reflects the end of the tax credit-induced “frenzy” that characterized much of the past year’s market.

Despite the drop in sales, the median home price in metro Denver was up 2.7 percent to $244,000 compared with last June. In May, the median price was $230,000.

Realtor Rhonda Knop said several of her buyer clients chose not to rush into purchases to qualify for the tax credit, and they’re happy they waited because they’re not competing against April buyers.

Prospective purchasers have more choices. The inventory of homes listed for sale in June was 23,240, up from 22,016 in May and 20,853 in June 2009.

In addition, “people are seeing that we have the lowest interest rates in 50 years,” said Knop, broker manager of Distinctive Properties. “They can really buy up and see what the low rates can do for them.”

Steve Raabe: 303-954-1948 or sraabe@denverpost.com

http://www.denverpost.com/business/ci_15481354?source=email

DW 7/10/10

How's the Denver Real Estate Market?

dwolta — Wed, 07 Jul 2010 21:43:22 +0000

As usual, it depends on whether you are a buyer or seller. Consider, since the buyer tax credits went away: the number of homes under contract in the Denver metro area has plunged 41%; in April 2010 a record 6,616 homes were placed under contract—no shock there as the deadline (for all but active duty military) was April 30th; and May 2010 was the worst month for the number of homes under contract since March 2004.

I’m calling it a buyer’s market…what else can it be with many more homes on the market in most neighborhoods than there are buyers.

While one sale does not make a market, the same can be said for one huge down month of the number of homes under contract. But let’s get real, it will take a long time to come back from the heady heights we just saw driven by the tax credit — it will be months before it comes back, even with the extemely low interest rates we are seeing for home loans….and then it will be winter, which is our traditional slow time!

So what kind of market do you think we will see for the near future?