News on Real Estate Market and Finances in Minnesota

Home sales rise for 3rd time in 4 months

2010-12-25T17:32:00.001-06:00

More people bought previously owned homes in November, the third increase in four months after the worst summer season in more than a decade. Still, economists say it could take years for home sales to return to healthy levels. Buyers bought homes at a seasonally adjusted annual rate of 4.68 million, the National Association of Realtors said Wednesday. Even with the rise, this year is shaping up

The world's most over-valued housing markets !

2010-10-28T15:09:00.001-05:00

The Economist has compiled some interesting analysis on 20 housing markets across the globe. The data not only looks at house price trends but also compares current prices to their “fair value” which is calculated by looking at the historical average ratio of house prices to rents. Europe’s most over-valued housing market is Spain (+47.6), followed by France (+42.5%), Sweden (+41.5%) and the UK (

Local Housing Market Continues to Move at Sluggish Pace

2010-10-17T01:08:00.003-05:00

Minneapolis, Minnesota (October 11, 2010) –With the current round of figures, be mindful of the fact that we're entering a period of apples-to-oranges comparisons. Market activity was comparatively strong last year due to the approaching deadline for the 2009 tax credit. Combine that with a slowing sales season and buyers driven to enter contracts by April 30, 2010, and it becomes apparent that

Department of Real Estate Takes Aim at Short Sale Negotiator Fees

2010-10-10T13:22:00.000-05:00

On September 20, 2010 the California Department of Real Estate (DRE) posted on its website an update to its previously issued "Consumer and Industry Alert(s) Regarding Short Sales Fraud, and Related Issues." The latest discussion concerns "the growing, questionable, and sometimes unlawful practice of short sale negotiators ('SSN') requiring/compelling Buyers to pay the SSN's fee." The article

Mortgage Rates Hit Low of 4.54 Percent

2010-08-03T09:12:00.003-05:00

NEW YORK—Mortgage rates are the most affordable in decades for those who can qualify for a loan.For many, the opportunity to buy a home or refinance at this time is lost because of the tough economy and tight credit standards. But those who have secure jobs, superior credit, and strong finances could do even better than the 4.54 average rate that Freddie Mac reported

Senate votes to extend US home tax credit deadline

2010-06-17T08:35:00.001-05:00

June 16 (Reuters) - The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.The Senate, with a vote of 60-37, accepted an amendment by Democratic Leader Harry Reid that extends the closing deadline to Sept. 30 for buyers who met the April 30 deadline to

Soft housing demand imperils recovery

2010-06-15T14:26:00.002-05:00

Demographic terms bode well for the long-term health of housing markets, but the near term is fraught with uncertainty, according to a “State of the Nation’s Housing” report released today by the Joint Center for Housing Studies of Harvard University. With the economy finally adding jobs this spring and house prices down dramatically, “two essential conditions for a

2010-01-15T22:45:00.001-06:00

New tax credit will end April 30, 2010. Hurry if you are 1st time homebuyer

Few US mortgage modifications made permanent

2009-12-12T00:08:00.000-06:00

Less than 5 percent of homeowners whose mortgage payments were cut under an Obama administration aid plan have received a permanent reduction, the Treasury Department said on Thursday.The new data raised questions about the Home Affordable Modification Program's effectiveness. It showed that just 31,382 of the 728,408 active loan modifications at the end of November

Treasury sets guidance to simplify "short sales"

2009-12-09T08:00:00.001-06:00

The U.S. Treasury on 12/06/2009 set long-awaited guidance on a plan for mortgage companies to speed "short sales" of homes and other loan modification alternatives to stem a rising tide of foreclosures.The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which

Banks Start to Embrace Short Sales

2009-11-20T00:06:00.000-06:00

Even before the government put pressure on them to embrace short sales, more banks were starting to take their lumps, do the short-sale deals and move on.Three years into the housing meltdown, short sales have tripled to 40,000 in the first six months of 2009, compared to the same time period a year ago, according to data from the Office of Thrift Supervision and the Office of the Comptroller of

Fewer Short Sales Come Up Short

2009-10-24T00:08:00.000-05:00

While obstacles to short sales remain, real estate practitioners say the process is becoming more efficient. Rather than waiting six months or more to push through a deal, agents say banks are more willing to negotiate prices up front."My gut feeling is that short sales seem to be the preferred avenue for distressed property now," says Cindi Hagley of San Ramon, Calif.-based Windermere Welcome

Facing Foreclosure? 'Short Sale' Could Help

2009-09-11T00:04:00.001-05:00

As the national mortgage crisis threatens millions of Americans, more people than ever are choosing to short-sale their homes rather than face foreclosure. A short sale occurs when a lender agrees to allow a homeowner to sell the home for less than the mortgage owed on it. The lender either absorbs the difference or requires a borrower to pay it back in a lump sum

Should I consider buying a short sale?

2009-08-06T00:08:00.001-05:00

In today’s real estate market, there are a variety of opportunities for home buyers, including homes that are being sold by financially-distressed sellers. One such opportunity is to buy a “short sale”. A short sale is a home being sold for less than the bank is owed. Banks are willing to sell for less than they are owed because they are not in the business of owning property and would rather

Mortgage Rates Rise for Second Straight Week

2009-08-02T12:34:00.002-05:00

U.S. mortgage rates rose for a second consecutive week as Treasury yields climbed, a move that does not bode well for the hard-hit U.S. housing market. Interest rates on U.S. 30-year fixed-rate mortgages averaged 5.25 percent this week, up from last week's 5.20 percent, according

Recovery Signs in Housing Market Stir Some Hope

2009-07-30T00:23:00.002-05:00

After a plunge lasting three years, houses have finally become cheap enough to lure buyers. That, in turn, is stabilizing prices, generating hope that the real estate market is beginning to recover.Eight cities, including Chicago, Cleveland, Denver and San Francisco, showed price increases in May, up from four in April and one in March,

The Best Credit Card for You

2009-07-12T11:56:00.001-05:00

All credit cards are not created equal. Here are a few we like.Simmons First Visa Platinum Why: Very low rateIf you're looking for a low rate, you can't get much better than 7.25%, but you must have excellent credit to be approved. Bonus: There are no balance transfer fees, though transferred balances don't get a teaser rate -- they go right to 7.25%.Interest rate:

Which will hurt credit more, a bankruptcy or a foreclosure?

2009-06-24T15:04:00.002-05:00

Question: I am in a quandary. I don't know which will damage my credit score more, allowing my lender to foreclose on my house or declaring bankruptcy to buy myself a little more time. So my question is this: Which does more damage to a person's credit score, foreclosure or bankruptcy? And why? Answer: While certainly a sobering subject, this question is easier to

Preventing foreclosures

2009-06-22T09:32:00.002-05:00

WASHINGTON-- About 200,000 mortgage modifications have been worked out under the government's Making Home Affordable program, with 40,000 modification offers completed last week, Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development said on Thursday. "We've made substantial progress in a short period of time,"

Why Home Prices May Keep Falling

2009-06-09T13:47:00.002-05:00

Home prices in the United States have been falling for nearly three years, and the decline may well continue for some time.Even the federal government has projected price decreases through 2010. As a baseline, the stress tests recently performed on big banks included a total fall in housing prices of 41 percent from 2006 through 2010.

New Wave Of Foreclosures Looms

2009-06-04T12:30:00.002-05:00

Washington, DC, May 26, 2009--Rising job losses are leading to rising home foreclosures nationwide, shifting from subprime borrowers to those with once solid credit, according to a story in the New York Times.With many economists anticipating that the unemployment rate will rise into the double digits, foreclosures are expected to

How Long Will the Recession Last? What Caused it and Should You Invest in Real Estate?

2009-05-28T00:17:00.003-05:00

The economy has been in a recession for over a year. It contracted rapidly towards the end of 2008, and is likely to continue contracting through the first half of 2009 and probably beyond.What exactly is a Recession?The generally accepted definition of a recession is a country’s drop in gross domestic product (GDP) for two consecutive quarters. The U.S. based

Money Myth: All debts are wiped out in bankruptcy.

2009-05-14T14:04:00.003-05:00

Not so, says our resident credit guru John Ulzheimer. There are two types of bankruptcy that consumers can file for: chapter 7, which dissolves all “statutorily dischargeable” debt, and chapter 13, which is known as a “wage earner plan” and requires the consumer to pay into a trust money that is distributed among their creditors. Chapter 7, which is the “be all and

Senate May Cap Credit-Card Interest Rates

2009-05-13T11:01:00.002-05:00

The U.S. Senate may consider capping interest rates on credit cards, Banking Committee Chairman Christopher Dodd said as the lawmakers began debating amendments to consumer-protection legislation. Dodd told reporters today that he is “inclined to do something” about an interest-limit, which isn’t in the bill currently. He said he is talking about the possibility with

Greenspan Sees 'Seeds of a Bottoming' in U.S. Housing

2009-05-12T23:28:00.002-05:00

May 12 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said that the decline in the U.S. housing market may be bottoming and it’s “very easy to see” financial markets continuing to improve. “We are finally beginning to see the seeds of a bottoming” in the housing industry, Greenspan said today during a conference of the

Home Prices in U.S. Drop Most on Record in Quarter

2009-05-11T21:44:00.001-05:00

Home prices in the U.S. dropped the most on record in the first quarter from a year earlier, led by California and Florida, as banks sold foreclosed properties.The median price fell 14 percent to $169,000, the National Association of Realtors said today. Prices dropped in 134 of 152 metropolitan areas, with the deepest declines in Cape Coral and Ft. Myers, Florida, followed by San Francisco and

Cash Out Refis hit Five year LOW

2009-05-01T20:04:00.001-05:00

Only 42 percent of refinances carried out during the first quarter resulted in cash out*, according to the latest “Cash-Out Refinance Report” from Freddie Mac.That’s the lowest amount since the first quarter of 2004, well below the 55 percent seen in the fourth quarter of 2008, and nowhere close to the near-90 percent levels seen between 2005 and 2007.“In the past two

House approves credit card legislation

2009-05-01T00:15:00.005-05:00

The House of Representatives overwhelmingly approved credit card legislation on Thursday aimed at protecting consumers from hidden fees and sudden interest rate hikes.The chamber voted in support of the Credit Cardholders' Bill of Rights. Banks opposed to legislation have warned it could reduce the amount of credit available and make it more costly to use a credit

Mortgage Rates Rise After FOMC Meeting

2009-04-30T23:53:00.005-05:00

Yesterday, prices of mortgage backed securities (MBS) moved lower increasing consumer borrowing costs by .125 to .375 in discount. Most lenders sent out re-prices for the worse after bond markets were disappointed by the FOMC statement. First, the wording of the statement indicated a bottoming of the current economic downturn. This created optimism in the stock market and allowed investors to

Schools in 3 states closer to getting stimulus money

2009-04-22T18:17:00.005-05:00

Much-needed federal dollars will start flowing to schools in three states in the next few weeks as part of the American Recovery and Reinvestment Act.The U.S. Department of Education has approved funding of just under $5.5 billion for three states -- $4 billion for California; $1.4 billion for Illinois; and $85.4 million for South Dakota.California school districts can apply online to the state

Unemployment rate edges up to 8.2 percent in Minnesota for March 2009

2009-04-22T01:23:00.003-05:00

The unemployment rate in Minnesota crept up to 8.2 percent in March as the state's employers shed 23,200 jobs, according to new figures from the Department of Employment and Economic Development.However, the state rate is below the 8.5 percent national rate and it's only up slightly from February's 8 percent seasonally adjusted rate, the department reported.The

7 Misconceptions About the Stimulus

2009-04-22T00:51:00.003-05:00

Since President Obama signed the economic-stimulus package into law February 17, I have received many questions about its provisions. And I've noticed that there are a lot of misconceptions about the plan. Here's the lowdown.Misconception #1: Most people will get their stimulus money as a check this year.Instead of receiving a check from the government, most single

Home sales in the Twin Cities

2009-04-18T02:47:00.004-05:00

Home sales in the Twin Cities rose 21 percent in March, thanks in part to lower interest rates and new federal tax credits, area Realtors said this morning. There were 4,407 pending sales in March, up 21.3 percent from a year ago, according to data released by the Minneapolis Area Association of Realtors. That's 10 consecutive months of year-over-year increases in pending sales and the largest