Realty World – Success Plans, Inc.

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.
The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.
Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.
However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”
In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.
While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.
Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

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What next???  The interest rates are going to go up starting in March.  What else is going to happen to our real estate market?  The buyers? The sellers? 
We can never really predict what the market will do to our buying power.  We can only plan the best we can and jump through the hurdles put in front of us. 
I cannot express how important it is to line up all your “ducks” and ready them for when that right house comes, you are then in position to GO FOR IT.
With all the new legislations, rules and guidelines, buyers have to be better prepared before entering into this major purchase.  Buyers don’t have the time and money to waste.  TIME IS MONEY…in every meaning of the phrase.
Follow the ABC’s of buying and selling real estate and listen to your agent.

Here we are again.  It seems like every governmental agency has it’s favorites.  Remember the huge governmental bail outs, well here’s another example of government unfairness.  RESPA  seems to also have favorites too.  Is this really going to help consumers?
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In the past few weeks the real estate market showed multiple signs of a rebound of some sort.  In 20 metropolitan areas prices rose 0.2% in August but were still down 3.8% year over year.  This may all change soon.  In September, pending sales were down 4.6%.  Could this be another beginning of a triple dip?  With Freddie Mac requesting for another $6 billion of your tax money and holding about 60,000 REOs from the market, which will take approx. 15 years to sell off, I don’t think our country’s rebound in a lot of areas will happen anytime soon and hope that the triple dip is not too severe.
Some help is on the way.  The Federal Housing Financing Agency is trying to help change the market.  They are making a few changes to the Home Affordable Refinancing Program to attract more borrowers and stimulate the mortgage industry and helping more homeowners.  The National Association of REALTORS are also concerned with the state of our real estate market and has a 5 point plan that could get us out of this triple dip situation and stabilize the market.  With any change, it will take a while for the changes to make a difference.  Let’s hope that it won’t be too long.

There has been more then 610,000 foreclosures last month and represents a 1% increase then the previous quarter.  On average it took 336 days to complete the foreclosure process nation wide.  New York took 986 days to complete the process while Texas only took 86 days.  Wow, Texas seems to be doing something different. 
President Obama is expected to help struggling homeowners with their mortgage payments.  The Wall Street Journal reports,  ”The administration’s plan is expected to eliminate “appraisals and extensive underwriting requirements for most borrowers” who are up-to-date on their mortgage and want to refinance at a lower rate”.  This should help those who have been keeping up with their payments and were looking for assistance in avoiding foreclosure. 
While most the country is having foreclosure problems, there are areas that are still doing well.  These areas are the most expensive areas in the United States.  The economy today doesn’t seem to hurt these types of properties.  In fact, it seems to have increased the sales activity  in this  price range.