(March 22, 2011) Home sales for the first two months of the year are just 1.1 percent behind the same period last year

suggesting a strong start for the central Ohio housing market according to the Columbus Board of REALTORS® (CBR). 

There were 2,178 homes closed in January and February compared to the 2,202 closings during the first two months of 2010.

February home sales dipped slightly to 1,128, just 1.3 percent less than the 1,143 homes sold during the same month one year

ago.

"Why are we pleased at the small decrease in sales this year" asks Rick Benjamin, CBR President? "At this time last year, the

first-time home buyer tax credits were significantly impacting our sales volume. To remain at nearly the same level without that

incentive is a positive sign of a strengthening market."

"Additionally, there were 1,812 residential homes put in contract in February which is 18.7 percent more than February of 2010

(1,527). This also bodes well for March closing activity."  

Franklin County saw 658 homes sell last month and 1,637 more listed for sale, while 137 homes sold and 302 homes were listed

in Delaware County.

The City of Columbus topped the charts with 423 sales and 1,023 new listings. Other cities which saw higher sales and listing

activity include Dublin, Hilliard, Westerville, Gahanna and Pickerington.

School districts experiencing higher sales and listing volume in February included Columbus, South-Western, Olentangy, Hilliard,

Westerville, and Dublin.

"Although, the actual numbers of sales and listings for these districts were higher, we're fortunate to have many strong school

districts in central Ohio, several of which showed larger activity gains when compared to last year," adds Benjamin. "Every area is

different so it pays to ask a REALTOR® to help you interpret the data." 

Click here to view the February housing market report.

I have been looking with my buyers for a few weeks.  A few days ago I ran across a new listing that seemed to offer everything that they are looking for.  The property was being offered by a Fannie Mae Homepath agent that I closed two transactions with last year.  I knew my people would be very excited about this home.  As I looked further I noticed that the A2A remarks stated that all offers on this property had to go through www.Realtybid.com

My clients loved the house.  As I looked into placing the bid I realized a few alarming facts...

•1.        Right off the bat a 5% premium would be added to my clients offer and thus the final bid amount.  It was called an "Internet Transaction Fee" $2000 or 5% of the purchase price whichever was greater.

•2.       Although my clients planned to finance the property the purchases would notbe contingent on financing and if the financing falls through the 5% or $2000.00 would not be returned and would be used to cover damages.

•3.       The seller would not assist with any closing costs

•4.       Buyer agent Commission would be 1%

I am amazed that Fannie Mae would deal with a company that clearly does not have the best interest of the consumer in mind.  The premium is clearly a profit source that does not serve to benefit the consumer in any way.   As agents we need to make sure that we are making our clients aware of sites like this and the potential for them to lose their hard earned money. This is especially relevent since I have read that several lenders are planning to offer their REO properties though this site or sites like this one.

After 10 months of operations the well intended HAFA (Home Affordable Foreclosure Alternatives) program designed to help with foreclosure alternatives including short sales, has qualified less than 700 short sales.  A far cry from the success many expected from this agency.  Finally the  Treasury Department has decided to loosen the requirements to try to qualify more families in need of the short sale option.  The new guidelines go into effect Some of the highlights include:

• The subject property must either be owner occupied, OR it can be vacant for up to 12 months preceding the date of the HAFA Short Sale Agreement if the sellers can provide documentation that the property was their primary residence prior to moving out. This is huge.   There was always confusion before about sellersoccupying the home, vs. not occupying the home. Some  loan servicers (aka, short sale lenders) argued that the home absolutely had to be currently occupied by the seller. There are often circumstances that forced homeowners to leave the house.  Sometimes they leave so that they can secure new housing in the same school district so that they do not have to move their kids to a different district.  Relocation for new jobs or to care for sick relatives are common reasons owners move out as well.  Fortunatelly with the new rules, as long as a seller can prove they did live in the house during the previous 12 months, they will still qualify for a HAFA short sale (where they may have been rejected before). Proof could be a copy of a utility bill, for example. Unfortunately, investment property still does not qualify for a HAFA short sale - though it will potentially qualify for a non-HAFA short sale.

• Loan Servicers will no longer be restricted as much when paying off second mortgage holders. Many of believed that the cap was 3% as told to us time and time again by short sale lenders.  As it turns out the cap was actually 6% and now has been lifted so that a maximum of $6000 dollars can be paid to satisfy a subordinate loan. (Could make all the difference with second mortgages.)

• Loan Servicers will have 30 days to send a borrower a HAFA short sale   includes the list price or the acceptable net proceeds amount from a sale. Furthermore, once a purchase contract has been accepted by the sellers and submitted to the loan servicer for final approval, the loan servicer then have 30 days to approve or reject the transaction. Under the current guidelines there is no imposed timeframe on the loan servicer.  (This is the Best News!)

• Loan Servicers may not deduct third party vendor expenses from commissions paid to real estate brokers, nor may they charge sellers. In addition, agents negotiating HAFA short sales may not charge the seller or other parties to the transaction a third party negotiating fee. This is great! Occasionally loan servicers will retain third parties to process paperwork in connection with short sales, and charge an additional fee that is either deducted from the agent commissions or paid by the seller - so now that is not allowed. Also, some short sale listing agents (NOT ME, by the way) hire separate negotiators and pass that cost along to the seller...they are no longer allowed to do that in connection with a HAFA short sale. (Great News!)

For more details on the new guidelines click HERE

As you can see there are big changes coming for 2/1/2011 and if all goes well we should be able to work short sales more efficiently and effectively.  If you or someone you know has questions or need help with a short sale please email me at vanessa.simmons@realliving.com or call me at 614-273-6406.

All condominiums starting December 7, 2011 financed with FHA loans will need to be re-certified for FHA lending.  The time frame for recertifications are approximately 4-6 weeks according to what HUD has stated.

The following documentation is required for FHA Reviews on "Established" Condo Project:

Fully completed and executed Condominium Project Certification. Lender's form.
Condominium project Budget and Financial Statements (Profit & Loss and Balance Sheet)
Management Contract, if agent managed
HOA Master Insurance Policy (Hazard, Liability, Fidelity and Flood)
FEMA Flood Map (HMG Condo Group will obtain)
Condominium project Recorded Legal Documents: Declaration/Master Deed and By-Laws, Amendments, Plat Map and Site Plans, Articles of Incorporation of HOA, and if available Rules & Regulations.
Attorney's Opinion is required if the legal documents contain "Right of First Refusal"
FHA Concentration Limit (Will be determined by FHA)

The bottom line is when a contract for condos is written  and the buyer is financing with FHA, we must allow enough time in the contract to allow for the recertification.  

We will have to wait and see how this all plays out.  Sometimes the items needed are difficult to obtain and some management companies charge a fee to release these which is passed on to the buyer.    

This has been quite a year of challenges and changes with FHA but I will do my best to keep you informed on the updates.  If you are looking to buy or sell real estate in Central Ohio please give me a call at 614-273-6406 or email me at vanessa.simmons@realliving.com. 

As the old saying goes, real estate is all about location, location, location.  But, there is a lot more to it than just plain geography when it comes to finding your perfect home.  There are a lot of things to consider during the search because, for most, a home is the most significant purchase they will ever make.

Choose A Good Area

When searching for your perfect home, the obvious place to start is with the selection of a location.  If you have children, you may want to choose a home that is close to good schools and is also located in a family-oriented neighborhood.  Many people also look for a home that offers a short commute to and from work.  If you are shopping within a specific price range, you can also narrow the choices by finding an area that offers the best value for your dollar.

Select A Style

The perfect home for you is one that has all of the elements that you want.  Whether it's a garage, basement, extra bedroom or bath, a large kitchen, fireplace or open floor plan, choosing the style of home that you want is an important first step in finding the perfect place to hang your hat.  You may also want to consider whether you prefer a single-level or two-story home.  Many home buyers also factor in floor plans when searching for a house, including those that offer an open and flowing design.

Get Pre-Qualified

Now that you know what you want and where you want it, it's important to find out how much of a home you can afford.  Pre-qualification is not the same as pre-approval.  With pre-qualification, your lender will request specific information relating to your income and expenditures and will offer a possible price range for you to keep in mind while shopping.  Pre-qualification does not guarantee that you will receive an approval, but it does give you a good indication of how much you can afford based on your current situation.

Talk To A REALTOR®

Nobody knows the real estate business like a REALTOR®, so let them help you in your search for the perfect home.  They can answer questions relating to the neighborhood, recent inspections on a particular home and any needed repairs.  Because a REALTOR® has access to a number of area homes, they have the ability to show you various choices within your preferred area and price range.

Ask About Amenities

One of the most significant concerns of any home buyer is what a home has to offer.  Utilities, such as water, sewer, cable, phone and electricity are just a few of the things to consider.  If the home is in a subdivision that requires the payment of association dues, how will these funds be used?  What amenities does the home owner's association offer?  These are all questions to ask your REALTOR® when shopping for the perfect home.

In conclusion, you should know that the search for your perfect home is a journey.  It may be either long or short and with or without some bumps along the way, but the greatest satisfaction will be at the journey's end and your future's beginning.

When you are ready to find that perfect home give me a call.  I take great pride in finding the very best home for your budget.  Call me at (614) 273-6406 or email me at  www.vanessa.simmons@realliving.com.

When it comes to buying a home, having bad credit is not the end of the world.  Your future doesn't have to be defined by your past.  Whether you have suffered from a bankruptcy, foreclosure or some type of financial hardship that resulted in late or missed payments, there are lenders who specialize in financing for those with less-than-perfect credit.  You will likely have to produce a larger down payment and/or pay higher interest rates than someone who has good credit, but the important thing to know is that buying a home is an option for you.

Bankruptcy & Foreclosure

If either a bankruptcy or foreclosure is on your credit report, it could take some time before you can qualify for a good interest rate on a mortgage.  FHA loans, which are especially desirable for those with past credit problems and first-time home buyers, are backed by the government and offer a low down payment and interest rate option for those who qualify.  Although the notation remains for up to 10 years, individuals with a bankruptcy or foreclosure on their credit report may qualify for an FHA loan after two years.  Some mortgage lenders may approve a loan sooner, but the interest rates will be higher and the required down payment may be as much as 35 percent of the purchase price of the home.

Cleaning Up Your Credit

Even if you have bad credit, it's important to check your credit report from each of the three major credit reporting agencies - TransUnion, Equifax and Experian - before applying for a loan.  If anything is inaccurate, file a dispute with the reporting agency and request a correction.  You can request a free copy of your credit report every 12 months.

In addition to correcting any inaccuracies on your credit report, it's important that you know what can help or hurt your chances of obtaining a loan.  You can start improving your credit by avoiding the temptation to apply for new credit right before submitting a mortgage application.  Multiple inquiries will cause your FICO score to drop, and lenders will rely on this information when deciding whether or not to issue your loan and how to calculate your interest rates.  With past credit problems, most lenders will want to see that you have rebuilt your credit history with 1-3 major credit cards and timely payments over a two-year period.

Money Matters

When it comes to obtaining a home loan, a healthy bottom line will help the lender to see you as being creditworthy.  It's important that you have sufficient income, along with the ability to prove steady employment for at least one year (longer is better) preceding your loan application.  Most lenders will request a copy of your tax returns for the two most recent years, along with current pay stubs.  If you have money for a down payment, this will also work in your favor.

Creative Financing

In some cases, a conventional mortgage loan may not be available no matter how hard you try.  Owner financing is one way that individuals, who may not otherwise qualify for a traditional mortgage loan, can purchase a home.  This type of financing is offered by the owner and may include interest rates comparable to other loans, flexible down payment options and no credit check.  I can assist you in finding homes that offer alternative financing options.

Call me Vanessa V. Simmons at 614-273-6406 or email me at Vanessa.simmons@realliving.com.

Home values continue to rise which is good news for central Ohio. The average sale price for the first nine

months of the year is $161,204 up 7.4 percent from the beginning of 2010 according to the Columbus Board

of REALTORS®.

There were fewer homes listed for sale last month than is customary for September. Over the last five years,

there was an average of 3,710 homes added to the market during the month of September. However, last

month only 2,997 residential homes were added to the already elevated inventory in central Ohio.

Although slightly lower than August, the total residential listings in September (16,728) was still higher than

it's been since August of 2008 when the inventory level rose to 16,975.

"Inventory levels had come down over the last year and a half - which is what we were working towards," said

Sue Lusk-Gleich, President of the Columbus Board of REALTORS®. "When inventory levels are too high, the

increased competition forces some homeowners to sell at prices that are too low which in turn often affects

the values of other neighboring homes."

"In order to re-balance the market, we either need the inventory to decrease or the number of buyers to increase.

And since the tax credit incentives brought many buyers into the market earlier than we would have seen

otherwise, we have a smaller pool of potential home buyers to absorb the inventory now."

Home sales were down 28.4 percent in September and the number of homes that went into contract was also down

almost 25 percent which doesn't bode went for October home sales.

"When comparing sales figures to the previous year, we need to remember that home sales have been elevated

since April of 2008 due to the tax credits," adds Lusk-Gleich. "Even so, sales are still up four percent year to date."

If you ar looking to take advantage of this exceptional market please call Vanessa V. Simmons at 614-273-6406 or email me at vanessa.simmons@reallving.com

If  you are a  buyer considering a purchase with FHA financing, it may be to your advantage to act sooner rather than later

On September 1st, FHA officially posted the mortgagee letter describing changes to the FHA MIP program. Effective for FHA loans for which the case number is assigned on or after October 4, 2010, FHA will lower its upfront mortgage insurance premium simultaneously with an increase to the annual premium which is collected on a monthly basis. This policy change will decrease upfront premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.   The new Up front premium is 1.00%, reduced from 2.25%   Although the up front premium has been reduced, the monthly premium has increased significantly. The new annual premium is .85% for LTVs less than or equal to 95% & .90 for LTV higher than 95%.   There is no change to the upfront premium for 15 year term with LTV less than 90%. The annual premium for that term with an LTV higher than 90% is .25.   Overall this will represent a payment increase for FHA borrowers obtaining case numbers on or after 10/4/2010. One More Reason to Buy today Without Delay!!

By Alejandro Lazo

RISMEDIA, September 17, 2010--(MCT)--Big banks pushed fewer U.S. households into foreclosure for the seventh consecutive month in August, a real estate firm reported, though repossessions of properties already ensnared in the process hit a record.

The continued convergence of the two trends - fewer notices of default filed on homes but more properties sold at courthouse steps - indicates that major lenders are meting out foreclosures in a systematic way so as not to flood the housing market with a wave of steeply discounted properties, RealtyTrac said.

RealtyTrac Chief Executive James J. Saccacio called the trends "a clear indication that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers."

A total of 94,469 properties received default notices in August, a 1 percent decrease from July and a 30 percent decrease from August 2009. On the other end of the process, lenders seized 95,364 properties in August, the highest monthly total in the history of RealtyTrac's report, an increase of 3 percent from July and a 25 percent jump from August 2009.

Lenders are working through a backlog of properties that developed last year after many foreclosures were frozen by moratoriums and slowed by trial mortgage modification attempts.

(c) 2010, Los Angeles Times.
Distributed by McClatchy-Tribune Information Services.

Reprinted with permission from RISMedia, the leader in real estate information and real estate news. Copyright 2010. All Rights Reserved

By Paige Tepping

RISMEDIA, August 26, 2010--You wouldn't buy a house without shopping around first, right? Then why would you commit to the loan you use to buy that house without making sure you're getting the best deal possible? From the experts at LendingTree, here are six reasons why it's essential to take a few minutes to browse before you borrow:

1. To get the best interest rate possible
Over the life of a $200,000, 30-year fixed rate loan, a one-tenth of a point difference in interest rate could save or cost you thousands of dollars.

2. To pay lower loan fees
Once your loan application is accepted, the lender will get back to you with a good-faith estimate (GFE), including an itemized list of all the costs associated with the loan. If there are any parts of the GFE that you don't understand, don't be afraid to ask the lender to explain each fee that is listed.

3. To avoid a prepayment penalty
In these transient times, it seems no one stays in their home long enough to pay down their mortgage the old fashioned way: in monthly increments over a period of decades. So you'll want to be clear on whether the terms of your loan include a penalty if you pay off your mortgage early-either because you move or refinance.

4. To find a lender you feel comfortable with
You don't want any surprises popping up at closing time. Get a lender who is responsive to your questions and is willing to give you the details in writing.

5. To find a lender that specializes in your situation
Recent volatility in the mortgage markets means that people with bad credit or little money for a down payment might have to look a little harder to find a lender.

6. To get the rate lock period you want
Once you've found the lender offering the best mortgage rate and terms, you'll want to get a written commitment, known as a "lock" that puts in writing that the lender will make the loan to you at that the specified interest rate. The length of the lock can vary from 30-90 days, but many lenders will charge a fee for a rate commitment of longer than a month. Negotiate the lock period that is right for you, depending on when you plan to close on your new home and if interest rates are expected to creep higher during that time.

Reprinted with permission from RISMedia, the leader in real estate information and real estate news. Copyright 2010. All Rights Reserved.