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Conventional loan program changes! "...now allows borrowers that had a foreclosure included in a BK to buy after 4 years instead of 7 years..."
I have received this email below from several lenders over the past few days explaining the NEW time requirements for buyers with previous short sales and foreclosures. As of August 16th you can not get conventional financing after only 4 years from your foreclosure if it was included in a BK. this is down from 7 years previously. That is the good news. The bad news is that buyers with previous short sales now have to wait 4 years instead of 2 years. So this change could help you or negatively impact you. Please call us today for more info.
Several people have reached out to me with questions regarding Fannie Mae's recent guideline changes. These changes affect borrowers that have had short sales and borrowers that had BK's with foreclosures involved.
As of August 16th, 2014 it might be harder to buy a new property after experiencing a short sale, assuming you plan on using conventional financing. The prior guideline allowed you obtain a Fannie Mae loan just two years after short selling your previous home even without extenuating circumstances as long as you had at least 20% down payment.
The new Fannie Mae guideline states:
There will be a standard four-year waiting period after short sale, with a two-year waiting period if you can prove extenuating circumstances.
*Freddie Mac has a standard four-year waiting period after short sale as well.
** FHA allows borrowers who have had short sales to get mortgages after just three years (without extenuating circumstances).
***Fannie Mae defines an extenuating circumstance as nonrecurring events that resulted in sudden/significant reductions in income, or a catastrophic increase in your financial obligations.
Call, Text, or Email as soon as you have mortgage questions and when your clients need to be Pre-Approved!
P.S. SILVER LINING That same guideline change now allows borrowers that had a foreclosure included in a BK to buy after 4 years instead of waiting 7 years. Let me know if you have buyers that may be in this situation."
I just wanted to thank all of you that have endorsed me on LinkedIn in the past. I am almost at 99+ for all Top 10 Skills and 59 written Recommendations from you guys on my LinkedIn profile. THANK YOU!
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The Adams Team is on fire! This is the 5th review today and our 82nd Review since we have starting requesting our clients to write them. We built a new page on our websites for all of our reviews. Check it out here: http://www.rirealestatehelp.com/reviewsrecommendations.html
We look forward to reading YOUR review!
Posted JULY 25, 2014 by DAN GREEN READ THE FULL ARTICLE HERE:
"...Along with ultra-low FHA mortgage rates which rival those from Fannie Mae and Freddie Mac, FHA loans are attractive because they offer a minimum downpayment requirement of just 3.5 percent -- the lowest of all widely-available loan programs.And now, a new Federal Housing Administration program -- the Homeowners Armed with Knowledge program -- is expected to add to the program's allure.
Via FHA HAWK, first-time home buyers will get access to reduced mortgage insurance premiums (MIP) at closing and, after 18 months of payments, will earn an MIP reduction which lasts the life of their loan...."
If you need a reputable lender to explain all of your financing options, please shoot me an email and I will reply with the contact info of the lenders we work with all the time. they are very knowledgeable and honest. they can walk you through all of your financing options. I look forward to hearing from you!
I received 2 emails from the CEO of Trulia and the CEO of Zillow as seen below. I have read that the merger is to be finalized in 2015, pending regulatory approval and the approval of the shareholders.
"The real story to me here is how did Move Inc (the operators of Realtor.com) fall asleep at the wheel and allow 2 third party websites that have a ton of inaccurate data surpass Realtor.com who has the most updated/accurate data. There were rumors of Trulia trying to acquire Move Inc prior to this Zillow/Trulia merger. The marketing team at Move Inc needs to step up their game if is not already too late." ~ Robert Adams
Zillow's Zestimates are known for their inaccurate quotes. The problem is zillow gets data fed to it by other sites like MLS, tax records, assessors, government sites, etc. However receiving second hand data causes a time delay in increased or decrease values if it calculates it at all. If a property never reflects that it sold on Zillow then the Zestimate will not calculate that new value.
The best way to get a homes value is to contact a few agents and have them prepare you a free Comparative Market Analysis (CMA). It is free and it will reflect the most recent sales. The agents can also look and see what properties are in contingent and pending status meaning they are in escrow. Often times the agent can contact those listing agents as well to find out a ballpark value as to where those properties will close. This helps predict which direction the neighborhood values are moving in.
I recommend using an agent to get you the homes value as well as if you want to do a home search. A ton of homes on Zillow and other similar sites are listed as available for sale but are not. In fact there are some that have close 6 months ago that are still listed as available. You can get set up on a direct feed from the MLS through your agent and they will send you homes that only match your criteria the second they become available. This data remains first hand data straight from the source and this data is up to date because agents will get fined by NAR if their data is left inaccurate. Zillow and other similar sites are not held to this standard.
Most consumers are unaware of all of these factors. To top it all off the seller pays the agents commissions so if you are a buyer you get professional representation and accurate/timely data for free (sorry seller's but you pay the fees).
I hope this is helpful.
Get you FREE Comparative Market Analysis (CMA) from Robert Adams at Sankey Real Estate HERE.
Nation’s biggest brokerage plans websites to outflank Zillow, Trulia, realtor.com NRT out to generate more 'scrubbed' leads that agents pay referral fees for.
Aug 5, 2014
The nation’s largest real estate brokerage, NRT LLC, is preparing to launch two new search portals that are aimed at reducing the company’s reliance on leads from Zillow, Trulia and realtor.com, attracting homebuyers by offering access to a complete set of MLS listings in markets where NRT operates, plus bells and whistles like automated valuations.
NRT is hoping to not only boost the number of leads it generates in-house, but to more than double the number of high-quality “scrubbed” leads that it can collect a 35 percent referral fee on from select agents.
One of the new search portals, code-named “Project Flanker,” will feature automated valuations like Zillow’s “Zestimates,” and Internet Data Exchange (IDX) listings sourced from the multiple listing services in the more than 40 large U.S. metros where NRT has offices. The other website will consolidate most of NRT’s local operating company websites under one URL. Both websites are expected to launch by the end of the year.
NRT, the brokerage wing of real estate titan Realogy, has over 42,000 agents and operates more than 700 offices in the U.S. under the Coldwell Banker Real Estate, ERA Real Estate and Sotheby’s International Realty brands. It also owns and operates Citi Habitats, The Corcoran Group and, when the acquisition closes sometime this quarter, ZipRealty.
NRT’s brokerages are spread across the U.S. in more than 40 major metros. Source: NRT LLC. With the acquisition of ZipRealty, NRT will gain a presence in Seattle; Portland, Oregon; and Las Vegas.
Last year, NRT handled 1.5 million Internet leads for its agents, NRT CEO Bruce Zipf told analysts attending an investor day hosted by Realogy this spring. Only 30 percent of those leads came from NRT’s local operating company websites, Zipf said. The remainder came from more than 700 real estate-related websites that the company uses to generate leads — the top sources being realtor.com, Zillow and Trulia.
Article continues below Advertise with Inman Most of those 1.5 million leads were reviewed and “scrubbed” by one of three regional call centers, Zipf said, and about 130,000 scrubbed leads were assigned to one of 4,000 “e-agent” team members.
Generating more Internet leads and doing a better job in converting these leads to a closing is a key business objective." An e-agent, he said, “is an NRT agent who has been trained by our company to service our Internet leads, recognizing that these leads had been reviewed and scrubbed by the company and have one of the highest potentials of turning into an actual sale and closed business.”
In return, “the e-agent agrees to a 35 percent referral fee, which is retained by the company, and in most cases, a reduced commission split,” Zipf said. NRT can earn double the commission revenue on referral leads it provides to e-agents, Zipf said.
NRT’s average broker commission rate is 2.5 percent on a side, so representing the buyer or seller in the sale of a $300,000 home generates a gross commission of $7,500. Assuming a split where the agent gets 70 percent of that, and the company gets 30 percent, NRT would see $2,250 of gross profit.
With a referral lead provided to an e-agent, 35 percent of that $7,500 gross commission “is taken off the top and goes directly to the company as a referral fee of $2,625,” Zipf said. “The remaining portion of that commission ($4,875) is then split between the agent and the company.”
If the company is taking a 40 percent split — as it would with less experienced agents who might be more eager to take referral leads — NRT earns twice the gross profit — $4,500 on the sale of a $300,000 home.
“Thus, the importance of generating more Internet leads and doing a better job in converting these leads to a closing is a key business objective,” Zipf said.
Zillow CEO Spencer Rascoff has said that he, too, sees the industry moving to a model where lead providers can charge what amounts to a referral fee for a highly qualified lead.
“Advertisers follow audience,” Rascoff said last fall in a quarterly earnings call. “Over the long term, we anticipate the total addressable market for ad revenue from agents to evolve as the category winner extends its lead. While we believe agents today spend 10 percent to 20 percent of their $60 billion in commissions on advertising, we believe ad dollars will shift to more of a revenue generation practice, similar to search engine marketing where some advertisers spend nearly up to their marginal revenue.
“In other words, we think that agents will view online impression-based advertising in the same way they have traditionally viewed lead referral economics, which is to say that they’re willing to pay up to 40 percent of their commission to the channel that provides them with a customer.”
When an analyst asked Rascoff to elaborate, he said, “I’m not saying that we are going to change our business model to shift to charge on a success based referral basis, not at all. That is not our intention. We do not plan to do that.”
The comments, he said, “were really with respect to TAM,” or total addressable market.
To reduce its reliance on realtor.com, Zillow and Trulia, NRT will consolidate most of its local operating company websites under one URL.
“We believe this will enhance our relevance within the search engines and elevate our viewership and create more leads,” Zipf said.
NRT will also launch its own consumer real estate website — “Project Flanker” — with automated valuations and other “features outside of the traditional real estate website arena,” Zipf said. “We believe we are the only real estate brokerage company that is entering this space in the consumer real estate arena.”
(In May, the National Association of Realtors approved a contentious amendment requiring Realtor-affiliated MLSs to make it easier for brokers to use listing data to develop AVMs.)
While “Project Flanker” may represent a departure from traditional brokerage websites, Realogy CEO Richard Smith said the company does not expect it to attract the kind of traffic generated by third-party listing portals.
“It is not intended to compete against the big portals like Zillow or Trulia,” Smith said Monday during Realogy’s second-quarter earnings call. “It is a very different approach to the markets, very smart, I think it is very strategic.”
When it launches “Project Flanker,” NRT will join other brokerages in offering a national IDX search portal, including ZipRealty, Redfin and Movoto.
Because NRT is a brokerage, Project Flanker is unlikely to generate the kind of controversy that surfaced in 2011, when Realogy and other franchisor operators successfully lobbied NAR to allow them to index and display IDX listings published by their affiliated brokers on national franchise sites like Century 21.
NAR repealed the approval after less than a year because of backlash from large brokers, who felt that allowing national franchisors to display IDX listings to national franchisors gave them an unfair advantage and went against the spirit of IDX listings, which are usually available only to MLS members. That controversy could explain why NRT, and not Realogy at large, is the one building these national sites.
Franchisors, including Realogy’s franchise brands (like ERA Real Estate) and Re/Max, came up with a workaround that allows consumers to search IDX listings in markets where the brands have affiliates by serving up framed search results of their local affiliates’ sites. Homes.com powers the ERA and Re/Max sites.
Smith said “IDX is fairly common in our industry, we don’t see any problem there at all,” with IDX display, saying the NRT site is “on track” to launch by the end of the year.
To better manage and convert the leads generated by the websites, NRT plans to introduce “a highly integrated contact relationship management system to all of our 42,000 sales associates,” Zipf said. “Our call centers are going to be equipped with a broader contact relationship management software system also so that they can manage and convert these leads better. We believe these strategies will increase our referral closings from the 4,500 we closed in 2013 twofold over the next several years to 13,000 closed units.”
Zipf said it’s important to point out that most of NRT’s business comes not from technology or the Internet, but “from our agents’ sphere of influence and past clients.”
Recruiting “is a key NRT organic growth strategy,” he said. “Some of the competitive advantage we utilize to organically grow our businesses is through outlining and highlighting the skill of our local operating management and our senior management team. We also highlight our best of class of marketing, technology and training platforms to our potential recruits.”
Editor’s note: This story has been updated to add additional context to Zillow CEO Spencer Rascoff’s prediction that agents will someday be “willing to pay up to 40 percent of their commission to the channel that provides them with a customer.” Rascoff has said that does not mean that Zillow intends to charge what amounts to a referral fee.
Written by Paul Hagey
READ THE FULL ARTICLE HERE.
Zillow and Trulia share's prices surge on merger rumors. There is also talks about Trulia acquiring Move Inc who operates Realtor.com
Shares in Zillow and Trulia are up sharply today on reports that Zillow is looking to acquire its smaller rival. Citing anonymous sources, Bloomberg reports that Zillow could value Trulia at as much as $2 billion, and that an agreement may be announced as soon as next week.
Talks between the companies are ongoing and may not lead to a deal, Bloomberg said. Both Zillow and Trulia declined to comment on the report.
Speculation that the online real estate space is ripe for consolidation helped push Zillow’s market capitalization past $5 billion last month, after analysts at Canaccord Genuity detailed their growth expectations for the company and raised the possibility of an eventual merger with Trulia.
Six investors with a 42 percent stake in Zillow also own 52 percent of Trulia, Canaccord analysts noted at the time, “potentially reflecting their desire to see consolidation in the vertical.”
“This has been rumored for a while and with the cross-ownership from Tiger Global Management and Caledonia some thought those investors would push for this,” said Bradley Safalow, founder and CEO of stock analysis firm PAA Research.
“I can’t see how this deal works,” Safalow said.
“Forgetting about the fact that Zillow and Trulia hate each other, a merger would make it easier for brokerage firms to stop working with them or squeeze them on featured listings programs,” Safalow said.
There were also rumors in June that Trulia might be interested in acquiring realtor.com operator Move Inc.
Zillow and Trulia’s share prices surged to new record highs in early afternoon trading today.
A merger between the two of the most popular real estate sites would further concentrate the consumer audience in the online real estate space, which has been narrowing in recent months with the multi-million dollar national marketing campaigns Zillow, Trulia and realtor.com have each rolled out this year.
READ THE FULL ARTICLE HERE: http://www.inman.com/2014/07/24/zillow-and-trulias-share-prices-surge-on-merger-rumors/?utm_source=20140724&utm_medium=email&utm_campaign=newsflash
Pending home sales jumped 6.1% in May.
This was much stronger than the modest 1.2% expected.
April's growth rate was revised up to 0.5% from 0.4%.
"Sales should exceed an annual pace of five million homes in some of the upcoming months behind favorable mortgage rates, more inventory and improved job creation,” said the National Association of Realtors' Lawrence Yun. “However, second-half sales growth won’t be enough to compensate for the sluggish first quarter and will likely fall below last year’s total."
Here's more from Yun:
"The flourishing stock market the last few years has propelled sales in the higher price brackets, while sales for homes under $250,000 are 10 percent behind last year’s pace. Meanwhile, apartment rents are expected to rise 8 percent cumulatively over the next two years because of tight availability ... Solid income growth and a slight easing in underwriting standards are needed to encourage first-time buyer participation, especially as renting becomes less affordable"
According to the NAR, this is "the largest month-over-month gain since April 2010 (9.6 percent), when first-time home buyers rushed to sign purchase contracts before a popular tax credit program ended."
"This report reinforces our expectation that housing market activity will improve in the second quarter and is consistent with our forecast of a 0.3pp contribution to real GDP growth from residential investment in Q2 after it acted as a 0.1pp drag in the first quarter, said Barclays' Cooper Howes.
But not everyone is optimistic.
"The story here, we think, is all about post-winter catch-up rather than a renewed, sustainable rebound after the shock of rising mortgage rates last year," said Pantheon Macroeconomics' Ian Shepherdson. "The trend in mortgage applications remains very low and the trend is flat, so we expect no repeat of the May jump in sales during the summer."
Written by Sam Ro
Read the full article HERE
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