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Bank of America – Short Sale Relocation Assistance Offer

Marian Velez — Fri, 18 May 2012 18:40:00 +0000

Short Sale Relocation Assistance Program:
Bank of America announced that for a limited time, they are offering enhanced relocation assistance payments in which qualified homeowners who initiate a short sale without an offer could be eligible to receive $2,500 – $30,000 in relocation assistance and owe no more on their mortgage with the sale of their property.
The relocation assistance payment is calculated based on the appraised value of the homeowner’s property. The total amount will be no less than $2,500, but no more than $30,000.
The payment will be delivered at the time of closing if the homeowner complies with all terms and conditions of the Short Sale Agreement, which includes but are not limited to the following:
         1.    A full walk-through appraisal must be completed and the homeowner
                must satisfy all junior liens and provide clear title for the property
               (the relocation assistance payment can be used to clear those liens).
         2.    The short sale must close by September 26, 2013.
If the homeowner does not comply with all terms and conditions of the Short Sale Agreement, they will not receive the relocation assistance payment.
The amount of any deficiency and relocation assistance will be reported to the Internal Revenue Service (IRS) on the appropriate 1099 Form or Forms. We suggest that the homeowner contact the IRS or their tax preparer to determine if they have any tax liability.
Don’t miss this limited-time offer to get the help needed by initiating a preapproved price short sale today.
Determining eligibility is easy:
Once the short sale is initiated Bank of America will evaluate the homeowner for this offer quickly to determine if they qualify for the enhanced relocation assistance.
The homeowner must participate in one of the preapproved price short sale programs, such as:
         1.    HAFA (Home Affordable Foreclosure Alternatives) or
         2.    Bank of America’s proprietary program.
Specific investor participation and eligibility criteria do apply to these programs.
Have an active pre-approved price short sale?
Bank of America is reviewing all current, in-process pre-approved price short sale agreements to determine who is eligible for this limited-time offer. Eligible homeowners actively participating in a preapproved price short sale program (such as HAFA or Bank of America’s proprietary program) will receive a letter if they qualify for the additional relocation assistance. The relocation assistance will be paid at closing.
The bottom line is… If your home is worth less than you owe, you may still sell it via a short sale — without bringing any money to closing and you might even get money to move!
Legal Notice and Disclaimer: The information presented or referenced are intended for informational use only and does not constitute the rendering of legal or tax advice or services. The accuracy of all information regardless of source is deemed reliable, but is not guaranteed. Always independently verify through personal inspection by and/or with the appropriate professionals. This information is not a substitute nor constitutes the rendering of legal, tax or other professional services. State, national and international laws vary, as do individual circumstances; so always consult legal, tax and/or appropriate professionals.  This is not intended as a solicitation if your property is currently listed with another agent. These materials may contain information and contain links to sites on the Internet owned and operated by third parties. We are not responsible for the availability of, or the content located on or through, any such third-party sites. We do not endorse the recommendations of any third party nor guarantee the information provided is complete or correct. Information is provided “as is” without warranty of any kind, either expressed or implied. The user assumes the entire risk as to the accuracy and the use of this information. We will not be liable for any damages of any kind arising from the use of this information, including, but not limited to direct, indirect, incidental, punitive, and consequential damages.

Income to qualify for mortgage well-below U.S. median

Brad Dotson — Fri, 18 May 2012 01:34:00 +0000

The amount of income needed to qualify for a mortgage is well below the median income in most parts of the U.S., according to NAR data.
NAR found that the national median family income was $61,000 in the first quarter. If a buyer wanted to purchase a home at the national median price, he or she would need an annual income of $34,700 if making a 5 percent down payment. A 10 percent down payment would lower the requirement to $32,900, while a 20 percent down payment requires about $29,300.
The information on qualifying incomes to purchase a median-priced single-family home on a metropolitan area basis assumes a favorable credit rating and an interest rate of 4 percent with 25 percent of gross income set aside for principal and interest.
The NAR report also found that 32 percent of home purchases paid all-cash in first quarter 2012, and investors, who make up the bulk of cash purchasers, accounted for 22 percent of all transactions in the first quarter.

http://www2.realtoractioncenter.com/site/R?i=DFYToH2b6pFEPFlcFm8E9Q

Higher foreclosure rates increase serious delinquencies

Mark Daya — Fri, 18 May 2012 01:30:00 +0000

According to a report from Foreclosure-Response.org, the serious delinquency rate, which includes loans 90 or more days past due plus foreclosures, increased for the first time after a downward trend between December 2009 and June 2011.
Serious delinquencies rose from 9.2 percent in June 2011 to 9.7 percent in December 2011 for the nation’s 100 largest metropolitan areas. While the 90-plus delinquencies component of the percentage is flat at 3.8 percent and has remained largely unchanged for the past four quarters, foreclosure rates continue to rise and now stand at 5.9 percent. In June 2011, the foreclosure rate was 5.5 percent.
Analysis with the data suggested the build-up of foreclosed homes in judicial states is the main reason behind the rising foreclosure rate.
Metros located in judicial states had foreclosure rates averaging 7.2 percent in December 2011 compared with 4.7 percent for metros in non-judicial states.
Also, when separating metro trends in judicial states from non-judicial, the foreclosure rate in judicial areas has actually increased since March 2009, when Foreclosure-Response.org began tracking the data, while the rate has been roughly flat in non-judicial metros for the last five quarters.
Nearly half, or 46, of the 100 largest U.S. metro areas are located in judicial states.

http://www2.realtoractioncenter.com/site/R?i=iEo9QuAEyhY-KJ1Sje-0vA

S&P: 46 months to clear shadow inventory

Stacie Lopez — Fri, 18 May 2012 01:26:00 +0000

Estimates by Standard & Poor’s Rating Services, based on first quarter 2012 data, show that it will take 46 months to clear the market’s supply of distressed homes, or the shadow inventory.
The agency’s latest estimate came in one month shy of the liquidation timeline determined in the fourth quarter of 2011.
While national residential mortgage liquidation rates appeared stable over the first three months of this year, these rates varied widely between local markets, which prevented any significant reduction in S&P’s months-to-clear estimate, the agency explained in its report.
Regional variations in how quickly servicers can clear the backlog of nonperforming loans are primarily due to differences in foreclosure procedures, judicial vs. non-judicial.
As of first-quarter 2012, S&P says its months-to-clear estimate in judicial states was almost two and half times as long as non-judicial states.
S&P includes in the shadow inventory all outstanding properties on which the mortgage payments are 90 or more days delinquent, properties in foreclosure, and properties that are REO. The agency also includes 70 percent of the loans that became current, or “cured,” from 90-day delinquency within the past 12 months because S&P says these loans are more likely to re-default.

http://www2.realtoractioncenter.com/site/R?i=2tlc77M2XTRRPk_hNzPxEw

Housing affordability reaches all-time high in Q1 2012

Jodi Martinez — Fri, 18 May 2012 01:22:00 +0000

Housing affordability in California set a new record high in first quarter 2012 rising to 56 percent, according to C.A.R.’s first quarter Housing Affordability Index. The increase can be attributed to record-low interest rates and stabilization in home prices.
The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California rose to 56 percent in the first quarter of 2012, up from 55 percent in fourth-quarter 2011 and from 53 percent in first quarter 2011, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The index was the highest since C.A.R. began tracking this statistic in 1988.
Home buyers needed to earn a minimum annual income of $55,688* (based on fourth quarter 2011 income data) to qualify for the purchase of a $276,040 statewide median-priced, existing single-family home in the first quarter of 2012. The monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $1,392, assuming a 20 percent down payment and an effective composite interest rate of 4.16 percent. The effective composite interest rate in fourth-quarter 2011 was 4.30 percent and 4.90 percent in the first quarter of 2011.
In the San Francisco Bay Area, housing affordability rose or remained stable in all counties except Contra Costa County, where affordability declined by one percentage point. At 78 percent, San Bernardino County was the most affordable, while San Francisco County was the least affordable, with only 29 percent of households able to purchase the county’s median-priced home.

http://www2.realtoractioncenter.com/site/R?i=CE1ucBz9rmSAyYpEfNj4oQ