Foreclosures Sink To 4-Year Low

Foreclosure activity continues to slow.

According to RealtyTrac, a national foreclosure-tracking firm, the number of foreclosure filings nationwide fell 35 percent as compared to July 2010, a statistic suggesting that the housing market continues to improve.

"Foreclosure filing" is a catch-all term encompassing default notices, scheduled auctions, and bank repossessions.
Filings fell to a 44-month low in July 2011.

For all the improvement, though, activity remains concentrated in just a few states. More than half of all bank repossessions last month occurred in just a handful of states.

In July, 6 states accounted for 52% of activity.

1. California : 19% of all repossessions
2. Georgia : 8% of all repossessions
3. Florida : 7% of all repossessions
4. Texas : 6% of all repossessions
5. Michigan : 6% of all repossessions
6. Arizona : 6% of all repossessions

At the other end of the spectrum is Vermont. With just 11 repossessions for all of July, Vermont accounted for 0.016% of repossessions nationwide.

Distressed homes are in high demand with today's home buyers. According to the National Association of REALTORS®, they account for 30% of all home resales. That's no surprise, either.
Distressed homes typically sell at 20 percent discounts as compared to non-distressed ones.

But, if buying a foreclosure is in your agenda, be sure to do your homework. Buying bank-owned homes is different from buying from "people". The contracts are different, the negotiations are different, and the homes are sometimes sold with defects.

If you plan to purchase a foreclosure in the New York, Long Island and the surrounding counties , be sure to speak with a licensed real estate agent first. There's plenty of available information online but when it's time to buy, have an experienced agent on your side.

I will say it again. BUYER BEWARE when purchasing Distressed Properties. The deals are out there, but not for the faint of heart. Cash buyer's top all, and the process can be slow.

So what are you waiting for, go get that property.

Till next time

The New York Real Estate Nurse

First-Aid Guide For Furniture to my Buyer's

I want to thank all you new home owners. I hope your transition into your new living space is not too stressful. I know you had a lot of fun shopping
for that new furniture. Don't be yelling at the kids to stay off it. Be prepared for the usage.

When furniture arrives in your home, it's factory-issued, perfect and clean. From that day forward, however, accidents can happen, causing damage to your pieces. Sometimes the damage is permanent.

Know how to react when the inevitable spill or scratch occurs and you can "save" your furniture and extend its useful life.
From Martha Stewart, these "first-aid for furniture" tips should come in handy.

Wood

• Moisture "rings" : Pour table salt on the white rings/haze and cover with a terry cloth. Apply hair dryer on low setting until rings are gone.
• Alcohol spills : Blot spills immediately, do not rub. Apply small amounts of ammonia to damage.
• Wax spills : Allow to cool and harden, then freeze the wax with an ice cube in a sandwich bag. Use a butter knife to gently scrape off wax.

Fabric

• Red wine stains : Cover wine with table salt and let sit until salt has wicked up the wine. Vacuum salt and repeat, as necessary. Blot remaining stains with damp cloth and dish soap.
• General spills : Repeatedly blot with a damp white cloth. Use white cloths to prevent dye transfer.
• Oil spills : Cover spill with baking soda and vacuum once absorbed. Blot remaining stains with rubbing alcohol

Leather

• General stains : Blot with all-purpose household cleaner. To prevent fading in the upholstery, avoid products with bleach or bleach alternatives.
• Scratches : Apply saddle soap to a damp cloth and rub the scratch to help it "blend in". It won't go away.

The tips on leather furniture also makes mention that you should never bother with touch-up kits or colored markers. It's nearly impossible to match leather colors and your repair work will only make the scratch more noticeable.

I am just full of tips. What can I say. Go lay on that couch.

Till next time

The New York Real Estate Nurse

Mortgage Rates Make New 2011 Lows

Mortgage rates in New York plunged to new 2011 lows this week.

According to Freddie Mac's weekly Primary Mortgage Market Survey, the national, average 30-year fixed rate mortgage fell to 4.39% this week -- the lowest 30-year fixed reading since November 18, 2010.
The 0.16 drop from last week is the largest one-week rate drop in more than 2 years, and, although the 30-year fixed remains above its all-time lows from November 2010, two other benchmark products made new records this week.

Both the 15-year fixed rate mortgage and the 5-year ARM are reporting lower than at any time in recorded history.

Freddie Mac puts those average rates at 3.54% and 3.18%, respectively.
Mortgage rates are dropping for several reasons, including :

• U.S. economic growth is slower-than-expected
• The U.S. government plans to curb its spending
• Global investors seek the safety of U.S.-backed bonds

The first two items are unfavorable for business and, as a result, stock markets have sold off all week. The Dow Jones Industrial Average posted an 8-day losing streak and Thursday it made its biggest one-day loss since 2008.

When equities lose, bonds tend to gain. This leads mortgage rates lower.
Mortgage rates also fell on "safe haven" buying; bond buys made because of their relative safety to risky assets.
Mortgage bonds are considered "safe" so when economies and geopolitics are uncertain, mortgage rates improve.

Going forward, there are reasons for mortgage rates to fall again. The economy won't rebound overnight and neither will investor confidence. However, markets can be fickle and rates have been known to reverse quickly.
With rates as low as they've been history, it's an advantageous time to refinance your home loan, or purchase a new property.

Do you have the job, down payment and closing cost? Buy your home now.  Maybe by 2020, you will look back and say, 2009 and 2011 were great years to purchase a home, and glad I did.

Till next time

The New York Real Estate Nurse

Closing At The Start Of September? Watch Out For Labor Day.

Home sales have heated up, according to the National Association of REALTORS®. I am a member.

More homes are going under contract this summer than went during the winter or spring seasons. Many of these homes are scheduled for late-August/early-September closings. So follow the trend and watch the monthly statistics.

If your home is among them, plan ahead.

Like for the rest of the U.S. workforce, Labor Day is a popular vacation time in the real estate, title and mortgage industries. Closings come together more slowly when the parties involved are on holiday. In addition, when issues arise, they are often slower to resolve because not everyone is "present".
Therefore, if you're under contract to buy or sell your home, or have a refinance in-process with a lender, get proactive with your home and your loan. Finalize your approval as quickly as possible.
Here are some tips to help your loan clear faster:

1. Prepay your first year of homeowners insurance, effective your closing date. Provide proof of payment to your lender.
2. Document and deposit all gifts and retirement withdrawals to be used at your closing as early in the process as possible.
3. Get Power of Attorney forms signed by all parties, and lender-approved, if applicable.
4. When your lender makes a paperwork request, fulfill the request within 24 hours.
5. Always check with your Realtor because all States have different rules and regulations. 

There are steps you can take to make your closing go more smoothly, too.
First, if your transaction is purchase, don't leave your walk-through for the last-minute. Schedule it for as early as reasonable. This way, if there's an issue, there's ample time to resolve it. Remember, it's harder to solve problems when one or more parties to the transaction is away on vacation.

Second, if you have planned time off between now and your closing, make it known, and be reachable in the event of emergency by phone, email or both.

Lastly, if possible, avoid scheduling your closing for the Friday before Labor Day or the Tuesday after. Real estate, title and lender offices are notoriously short-staffed and overworked on these two days. Routine tasks take longer than usual.

You can't stop people from going on vacation, but you can plan for it. It would be foolish not to.

So it goes to be prepared.

Till next time

New York Real Estate Nurse

A Mortgage Rate Strategy For July's Jobs Report

At 8:30 AM ET Friday, the Bureau of Labor Statistics will release the July 2011 Non-Farm Payrolls report. Mark it in your calendar. If you've been watching mortgage rates fall to new all-time lows this week and fear a mortgage rate reversal, Friday could be the day.

The monthly Non-Farm Payrolls data can swing a big stick in mortgage markets.
More commonly called "the jobs report", Non-Farm Payrolls details the U.S. workforce, providing sector-by-sector analysis of workforce, as well as the national Unemployment Rate.
The jobs report affects mortgage rates because of how important jobs are to the U.S. economy.
When there are more working Americans:

1. There's more consumer spending, a boost to businesses
2. There's more tax collection, a boost to governments
3. There's more personal savings, a boost to households

In July, analysts anticipate 85,000 new jobs created. This would be a 4-fold increase from June's 18,000 figure.
The Unemployment Rate is expected to remain unchanged at 9.2%.
For rate shoppers and home buyers in new york , these Wall Street expectations can be as important as the actual data itself. Right now, traders placing bets, expecting 85,000 new jobs in July. If the final tally is more than 85,000, traders will load up on equities at the expense of bonds. This is because job growth is good for the economy.

When bonds sell off, rates rise.
Conversely, if jobs growth is less than 85,000, mortgage rates should drop.
Mortgage rates are near all-time lows this morning. By Friday, they could rise. The safe move is to lock your rate today. Rates may fall when the jobs report is released, but there's much more room for rates to rise.

It's always a crap shot. Don't roll the dice. Lock and load your historical mortgage rate.

Till next time

The New York Real State Nurse

16 of 20 Case-Shiller Cities Show Improvement In May

Standard & Poors released its May 2011 Case-Shiller Index this week. The index measures change in home prices from month-to-month, and year-to-year, in select U.S. cities.

May's Case-Shiller Index showed a 1 percent increase from April 2011. Home values rose in 16 of the Case-Shiller Index's 20 tracked markets. Only Detroit, Las Vegas and Tampa fell. Phoenix was flat.
Don't look too far into the findings, though. Like the FHFA's Home Price Index, the Case-Shiller Index is rife with flaws.

The first flaw of the Case-Shiller Index is its limited geography. Despite being positioned as a national housing index, Case-Schiller Index is sourced from just 20 cities nationwide. There are more than 3,100 municipalities nationwide. As I said before, its about location, location and location.

The Case Shiller Index's second flaw is that it ignores all home types excepts for single-family, detached homes in its findings. Condominiums, multi-family homes, and new construction are not included in the Case-Shiller Index. We have a lot of Condo and Co-Op Buildings.

In some markets, these excluded home types outnumber the included ones.

Furthermore, the Case-Shiller Index is flawed in that it takes 60 days to release.
The Case-Schiller Index reports on a housing market from 2 months ago -- hardly helpful for today's buyers and sellers in Queens, Brooklyn and the New York area , trying to make sense of today's real estate market data.

When you want real-time housing market data, therefore, for Queens or anywhere else, look past the Case-Shiller Index and talk to a real estate professional instead. It's where you'll get your best information.

The New York Real Estate Nurse has the Vital Statistics. Who's monitoring your Vital Signs?

Till next time

The New York Real Estate Nurse

What Will The Debt Ceiling Agreement Do To Mortgage Rates?

The United States is projected to reach its legal $14.294 trillion debt limit today. The limit was set by Congress February 12, 2010. The U.S. Treasury may not issue new debt beyond the debt ceiling.
Since April 2011, Congress has debated ways to remain below the nation's $14.292 trillion borrowing limit. The debate commenced with the passage of the 2011 U.S. Federal Budget which featured a $1.645 trillion deficit.
This multi-trillion dollar deficit ensured that the debt ceiling would be touched at some point during the current fiscal year.
That date was May 16. It took an intervention from the Treasury Secretary to temporarily extend the limits; an "extraordinary measure" meant to keep the U.S. government from defaulting on its debt.
With additional room to borrow, then, the U.S. Treasury's new debt ceiling date was moved to August 2. Congress has been debating the federal budget since mid-May with the dual-goal of (1) Remaining below the federal debt limit, and (2) Creating a budgetary surplus for the future.
An agreement is expected today.
For home buyers and rate shoppers in new york city , this is an important development. The debt ceiling agreement will influence mortgage markets and, as a result, require amendments to home affordability calculations. As mortgage rates change, your purchasing power does, too.
Unfortunately, we don't know in which direction mortgage rates will go.
Since the prospect of a deal was first hinted Friday, mortgage rates have been improving. Conforming, 30-year fixed rates are down nearly 0.250 percent, lowering a $150,000 mortgage payment by $22 per month.
The final deal terms of a deal, however, could lead rates higher.
As always, the safest play is to lock your mortgage rate if you are comfortable with its proposed payment. Yes, mortgage rates may move lower in the future but, then again, maybe they'll move higher.

Congress remains a mess, the bickering continues. Whats a country to do? VOTE!!!

Till next time

The New York Real Estate Nurse