Refinancing Home Loans Now Easier

The government announced enhancements to a refinance program that will enable homeowners whose mortgage balances are higher than their home values to refinance at today's low interest rates. Here's the skinny on what the program revisions mean to consumers.The Home Affordable Refinance Program was launched in March 2009 as part of the Obama administration's Homeowner Affordability and Stability Plan. But the program has fallen well short of helping the 4 million to 5 million borrowers originally projected largely because many of the prospective recipients have seen their home values plummet over the past few years.So the Federal Housing Finance Agency announced that equity requirements are being eliminated from the program. The regulator had previously limited the loan balance to 125 percent of a home's appraised value. The program changes will be implemented by Fannie Mae and Freddie Mac by Nov. 15. The two secondary lenders buy loans from banks and mortgage bankers, package and sell the loans to investors, and guarantee the payments to investors. Downside is that Lenders aren't required to participate in the program, so there are no deadlines in place for when the program might be available at a particular lender. Eligible borrowers are advised to contact their existing lenders or any other mortgage lender offering HARP refinances.I recently achieved Certification as a Distressed Properties Expert do if you know of anyone who has concerns about their mortgage or getting into a default situation, have them contact me. Judy@JudyPierson.com or call 505-220-9193.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

RIO RANCHO SET FOR GROWTH

Construction of Presbyterian Medical Services’ Rio Rancho Medical Center is half complete. With opening set for October 2011, the $190 million, 66-bed facility is expected to be the anchor for new activity in southwest Rio Rancho, says Tom Swisstack, Rio Rancho mayor.
That new development near the hospital includes a retail and office project, The Village at Rio Rancho, on a 75-acre tract immediately north of the Presbyterian project. The Village will be designed in an outdoor, urban-street environment. A $50 million retail and medical office development called Petroglyph Plaza will be constructed on 20 acres across Unser Blvd. from the hospital.
In July, Swisstack told metro Albuquerque developers that the city is moving to deal with the legacy of its development history. Within the city limits Rio Rancho has more than 20,000 half-acre lots without infrastructure and owned by people around the world. These lots are part of more than 77,000 lots created by Rio Rancho’s initial developer. To start, the city will pursue modifications to the Metropolitan Redevelopment Act during the 2011 legislature, Swisstack said.

WHERE HAVE ALL THE BUYERS GONE????

The real estate market is dead, dead, dead. And the rates and deals are abundant. What's wrong with this picture???? Here's latest article from national association of realtors: Home sales and the job market - two key aspects to our continued recovery - are also areas we need to see change in an improving direction. Last week, the NAHB Housing Market Index came in a bit worse than expectations and showed housing to be at a 17-month low. It can be argued that the tax credits actually hurt the housing market by not adding any sales, just pushing them up. This has now resulted in a void or softer period in the market, potentially wasting billions of dollars. Housing Starts and Building Permits were also reported lower than expected last week. Clearly, demand for housing has slowed over the past few months, due to the expiration of the Home Buyer Tax Credit and persistently high unemployment.Speaking of unemployment, awful is the only way to describe last week?s Initial Jobless Claims report. According to the report, 500,000 people filed to receive unemployment benefits for the first time, which was well higher than the lofty 475,000 expected and the highest reading since November 2009. In addition, between Continuing Claims and people receiving Emergency Unemployment Compensation or EUC, the combined total of people receiving unemployment benefits now equals 9.25 Million people. The bottom line is this: The labor market is the foundation of our economy. Job growth and confidence is the best and most sustainable way for our economy to recover. The present anti-business regulatory environment is pushing Initial Claims, a leading indicator on the health of the labor market, in the wrong direction. But home loan rates, meanwhile, continue to remain at historic low levels. Though keep in mind, inflation is the arch enemy of Bonds and home loan rates, which means it can cause both to worsen. Both the Producer Price Index (which measures inflation at the wholesale level) and the Consumer Price Index were recently reported hotter than expected. If rates do start to rise, they will likely do so quickly.

LOWEST MORTGAGE RATES IN HISTORY!

This just in from our Realtors Association:
Mortgage applications to purchase homes rose 0.3 percent on an adjusted basis last week, virtually unchanged from the previous week, according to the Mortgage Bankers Association weekly survey.On an unadjusted basis, purchases decreased 0.3 percent compared with the previous week and were 34.1 percent lower than they were the same week a year ago.This trough in purchases comes despite the fact that 30-year fixed rate mortgages are at the lowest level they’ve been since the MBA began keeping track: 30-year fixed-rate mortgages decreased to 4.57 percent from 4.60 percent. 15-year fixed-rate mortgages decreased to 3.95 percent from 4.03 percent. 1-year ARMs decreased to 7 percent from 7.10 percent.

ALBUQUERQUE, NM REAL ESTATE UPDATE

Our news isn't as bad as elsewhere in the US and that's the good news! If activity on our website is any indicator which it usually is, we are seeing up to 3-4 inquiries a day. Granted some are related to out-of-state investors wondering about selling their investment rental homes and others are looking for good deals on foreclosed properties. Our foreclosure rate is still very low at less than 5% although that may get worse.
What we do see are people moving here for one reason or another. HP is starting to ramp up in Rio Rancho in anticipation of their new site there so we are seeing some early movers. People are just wanting to move here and who can blame them.
Our housing market has seen some decline in listings to below 7000 at the end of October so that is increasing the activity on those that are still listed. We still have about a 10 month supply, but compare that to 2-3 years elsewhere. Our median home value has gone down about 6% year to day compared to over 25% elsewhere. What we do expect to decrease is the number of realtors who have to quit by year end or pay large association dues. Many thought real estate was an easy game and rushed in two years ago. Those of us who have been in the business awhile know better and we will still be here. Our business, in fact is up 5% since last year so guess we will be staying. Of course we will!

CLARIFICATION ON DECLINING MARKETS

This just in from one of my readers.......Declining-market surcharge droppedFannie and Freddie reverse the policy that made buyers cough up bigger down payments in certain locales.By Kenneth R. Harney, Washington Post Writers Group May 25, 2008 WASHINGTON -- Could the controversial mortgage industry practice of listing hundreds of local real estate markets as "declining" -- and restricting lending through higher down payments or credit scores -- be scrapped?The two biggest players in the home mortgage field, Fannie Mae and Freddie Mac, did precisely that on May 16. Reversing its policy of penalizing buyers in troubled real estate markets with 5% higher down payments, Fannie Mae switched to a nationally uniform policy of charging borrowers the same minimum down payments irrespective of location. A spokesman for Freddie Mac, Brad German, said his company would be "suspending" its declining markets policy indefinitely as well.Starting June 1, mortgage applicants who are underwritten by Fannie Mae's automated system online will qualify for 3% minimum down payments, wherever the property is located.Borrowers whose applications require "manual" underwriting will pay 5% minimum down payments.Under Fannie Mae's prior system, applicants buying in designated declining markets had to contribute 5% extra in upfront equity compared with borrowers in nondeclining market areas.Freddie Mac's policy, which never employed a list of areas designated as declining, relied instead on lenders to flag applications using appraisal data or home price indexes. Freddie's policy also required 5% higher equity contributions upfront.Critics -- including the National Assn. of Realtors and consumer advocacy groups -- had charged that Fannie Mae's policy served to further depress sales and real estate values in areas tainted as declining.They also argued that many metropolitan markets experiencing price decreases contain sub-markets performing relatively well, and they do not deserve to be underwritten as high risk.Marianne Sullivan, Fannie Mae's senior vice president for single-family credit and risk management, said the policy reversal was possible because of improvements to the company's automated underwriting system, allowing it to "assess each loan more precisely."The change was welcomed by national real estate and housing groups. Dick Gaylord, president of the National Assn. of Realtors, said the termination of a policy that "stigmatized" certain communities will "help stabilize the credit markets." David Berenbaum, executive vice president of the National Community Reinvestment Coalition, said his group hopes the revised policies at Fannie Mae and Freddie Mac will prove to be "a model for others to follow."Whether that happens any time soon, however, is far from certain. Private mortgage insurers, who provide loss protection to lenders on loans with low down payments, have virtually all adopted highly restrictive policies affecting ZIP Codes or metropolitan areas they designate as declining.MGIC, the largest-volume insurer, recently expanded its list of distressed markets along with a series of cutbacks on specific types of low-equity loans. As of June 1, MGIC will not insure condominium mortgages in the state of Florida. It also has abandoned cash-out refinancings and loans on investment properties.PMI Group, another major underwriter, has banned cash-out refis or investor loans in areas it judges to be distressed. Genworth Financial will not consider applications on second homes anywhere in Florida. AIG United Guaranty no longer will write insurance on condominiums in any of hundreds of ZIP Codes around the country that are on its declining markets list.Asked whether his firm might reevaluate its declining markets restrictions in light of the abrupt changes at Fannie Mae and Freddie Mac, Terry Souers, a spokesman for Genworth Financial's mortgage insurance unit, said: "We're aware of their actions and will take them into consideration to see if additional steps are necessary."But Michael J. Zimmerman, senior vice president of investor relations for MGIC, shot down hopes for any quick abandonment of declining markets restrictions at his firm. "We're not contemplating any changes," he said. MGIC, which reported a $1.4 billion loss for the fourth quarter of 2007 and a $34 million loss for the first quarter of this year, has been hit hard by claims following foreclosures and extended delinquencies in once-booming housing markets.What's the trend line here? Fannie Mae's and Freddie Mac's policy switches should open the door to some additional low-down-payment mortgages -- and home sales -- in local areas once tagged as declining.However, without the participation of private mortgage insurers -- who report solely to stock market investors rather than to Congress -- many borrowers will likely have to turn to the Federal Housing Administration, which accepts 3% down, does not have declining markets restrictions and whose loans can be purchased by Fannie Mae and Freddie Mac. Ken Harney can be reached at kenharney@earthlink.net.

CREDIT SCORES TAKE CENTER STAGE

As a realtor, lenders have always been my friends, but many are now infuriating. With much of the blame for the housing crisis being laid at the feet of the lenders, they are in heightened defense mode. In reality nothing much has changed --- rates are about the same "mas o menos" 6%, buyers with good credit can get loans, appraisers are following their independent process to establish value --- but buyers are scared off and lenders will hang up a closing in that dark pit called Underwriting for days with no compunctions. Sure there were a few bad lenders giving credit or too much credit to marginal buyers. For myself, I will not accept offers on my listings from the marginal brokers, but then I always did that. Buyers who are marginal in their credit history, I send to lenders who will coach them to a good score before I take them out to look at houses. Disappointing for them? Yes. Realistic and professional? Yes. Not all realtors did that so they share blame for this crisis too. Now is a good time to buy, but not for everyone.
Credit scores have become almost an obsession with buyers so here are some interesting aspects. The LA Times (yes, I still read it but am over any other addiction I once had with Los Angeles except perhaps for the Lakers and good jazz!) had an article missed by our local news on the largest-ever class action lawsuit which promises free access to credit data. We will all be able to get our credit scores with no strings attached under a settlement with TransUnion Corp. Good timing, as we all need to take more heed about how we spend our money. I have a full article in my Legacy Outlook Newsletter this month on what makes for a good credit score. Turns out payment history and debt account for two-thirds of the score. Of that, credit card debt matters the most and balances affect the score as much as payment history. Keeping credit balances to 10% of the limit on any card will boost your scores. For the complete article, drop me an email.
So it is a good time to buy or sell, but the unqualified or too aggressive lenders and borrowers will have to jump through higher hurdles now, and that's just fine. It makes the whole real estate market stronger for all of us.

RIO RANCHO IN GOOD STANDING NOW

One of my readers just informed me that the status of Rio Rancho as a Declining Market as designated by lenders has been rescinded. Thank you, Loran. I am double checking with Jason Pike at Countrywide to make sure. We sold one of our listings in Rio Rancho today that had been on the market for months and are seeing more activity there so our on the ground sense is that things have turned a corner. Not just in Rio Rancho, but all over the Greater ABQ/RR area. Although Memorial Weekend was deader than a doornail, things have picked up this week and we had four closings this week. Ahhh, money again. It's great. Keep those comments coming......

RIO RANCHO A DECLINING MARKET

The Albuquerque MSA which includes Rio Rancho has been designated as a Category II for declining market. This has been the case for the past six months. As far as financing is concerned, it is business as usual UNLESS the appraiser indicates the property is in a declining market OR oversupplied OR the marketing time is over six months. IF the appraiser identifies the property as such, then the loan-to-value must be reduced by 5%. Again, SOME lenders require additional information. This does NOT mean that the borrower cannot buy the home. If the borrower is putting 10% or more down, it does not make any difference !!!! IF the borrower is only putting 5% down, we would require an additional 5% down. To date I have not had one issue.