Author: bmadmin

HARP 2.0 Has Arrived

What is the Home Affordable Refinance Program (HARP)?

Announced in the beginning of 2009, HARP is a federal government program created to help 5 million underwater or near-underwater homeowners refinance into a fixed rate loan with a lower monthly payment. However, as of Aug. 31, 2011, only 894,000 borrowers have actually refinanced through HARP.

In October 2011, President Obama announced a makeover to the HARP program with the purpose of reaching more underwater homeowners. The expanded HARP program – also referred to as HARP 2.0 – took effect on March 17, 2012 for eligible borrowers.

How do I find out who holds my mortgage?

There are two eligibility requirements for the HARP program:

1. Your mortgage must be held by either Fannie Mae or Freddie Mac. To “look up” your mortgage, check Fannie Mae. If you can’t find your mortgage there, check Freddie Mac. Your loan must be owned by one of these two choices to be eligible for HARP 2.0.

2. Your loan must have been funded by May 31, 2009.

How do I know if I am eligible for HARP?

You can find out if you are eligible for HARP by contacting me today.

Foreign Buyers Continue Purchasing Cheap U.S. Homes

by bmadmin

Foreign consumers purchased $41 billion worth of American houses and apartments during the 12-month period that ended in March 2011, according to the latest statistics from the National Association of Realtors. That’s roughly the same as the previous year showing that foreign buyers continue to see value in U.S real estate.

But add in the $41 billion spent by immigrants who moved here within the last two years and people with visas of more than six months, and the total is $82 billion worth of U.S. residential real estate taken off the market by international buyers, up from $66 billion in the previous year.

The demand for American real estate is so strong that last fall, the National Association of Realtors launched an international version of its property search website. Now, the 4.4 million properties displayed on Realtor.com can be viewed more easily by buyers from practically any place in the world, and in almost a dozen languages.

The top destinations of foreign investors for U.S. real estate purchases are:

1. Florida: 31% of all home purchases in that state are made by foreign buyers, with most coming from Cuba, Haiti, and Colombia.

2. California: 12% of all home purchases (most coming from Mexico, the Philippines, China, India, and Vietnam)

3. Texas: 9% of all home purchases (most coming from Mexico, India, Vietnam, China, and the Philippines)

Boomerang Kids Returning Home

by bmadmin

Five million young adults are currently living with their parents, according to the Census Bureau – an astounding one in eight 25- to 34-year-olds.

But it’s no wonder: Unemployment for people in their early twenties now touches 14%, vs. the national average of 8.5%.

New grads are having a harder time finding first jobs, and layoffs are forcing some older twentysomethings, even thirtysomethings, to return home. If your kid comes boomeranging back, use these tips to help smooth the financial transition – for both of you.

1. Consider charging token rent if the kid has income and assigning responsibilities around the home. This establishes that you’re not replaying adolescence and trains new grads to manage financial obligations. Lay out expectations right away, but think about offering an initial grace period on rent.

2. Rather than offering cash outright – which doesn’t teach your kid any lessons and may threaten your own financial security – offer an unemployed kid a hand in finding work. If they just can’t find that perfect job, you may want to suggest that your child take a “for-now” job while continuing to look for the perfect gig.

3. First month’s rent, security deposit, and moving costs add up fast. So encourage your child to have some of every paycheck deposited in a “move-out fund.”

Follow these tips, and you just might get your empty nest back one day.

FHA Increasing Mortgage Insurance Premiums

by bmadmin

The Federal Housing Administration announced plans to increase the cost of up-front mortgage insurance premiums beginning on April 1, FHA Acting Commissioner Carol Galante said yesterday in a call with news reporters.

What does this really mean for you the consumer?

It will cost a little bit more upfront to buy a house.

The current upfront mortgage insurance rate is 1% and that will be changed to 1.75% on April 1st.

“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said FHA Commissioner David Stevens in a statement. “This quarter point increase in the annual MIP is a responsible step toward meeting the congressionally mandated 2% reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

If you have an FHA loan you’ve been waiting to refinance, do it now.

If you’re in the market for a new home using an FHA loan, you’ll need to be in a signed contract before April 1st to have the current, lower mortgage insurance fees. If you are thinking it will take you longer to find the right home or you aren’t ready yet, we take run different scenarios to show you how this change will affect your payment.

What is The Boot Campaign?

by bmadmin

“If I am not for myself, who will be for me? If I am not for others, what am I? And if not now, when?” Rabbi Hillel

It’s not often that an opportunity comes along with the ability to distinctly affect the lives of both the receiver, and the giver. So when it does happen, immediate action has to be taken.

Benchmark is proud to announce a new partnership with a grassroots initiative called The Boot Campaign. In their first month alone, this dynamic campaign successfully raised over 125 thousand dollars with the sale of combat boots exactly like those worn by our troops as they stand for our freedom every day. The money they raise is used to assist returning veterans and active troops that are dealing with emotional, mental and physical challenges. The Boot Campaign’s goal is to eventually see 1.3 million civilians in boots, one for every active duty service member.

This tremendous charity offers all Americans a way to show tangible appreciation for our active military, raise awareness of the challenges they face upon return and support their transition back into their homes.

With this exciting new partnership, Benchmark has committed to support The Boot Campaign in several ways, not only within the corporate walls of the home office, but also in the field allowing virtually anyone associated with Benchmark the same opportunity to show their deepest appreciation for the sacrifices our soldiers have made for us.

Benchmark and The Boot Campaign: When they come back, we give back.

New Construction Starts Highest Since October 2008

by bmadmin

Housing starts rose to 699,000 in January 2012 which is the highest level since October 2008. Prior to the announcement, Econoday was predicting 657,000 – 675,000 housing starts for January. This is a great sign for the real estate market showing builders are regaining confidence.

In fact, homebuilder confidence in the single-family homes market increased for the fifth consecutive month in February, reaching a four-year high. “This is the longest period of sustained improvement we have seen in the HMI since 2007, which is encouraging,” said NAHB Chief Economist David Crowe in the National Association of Home Builders/Wells Fargo press release.

“Builder confidence has doubled since September as measured by the HMI,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “Given the recent improvements in new home starts and the increasing number of markets included in the NAHB/First American Improving Markets Index, this consistency suggests that the housing market is moving toward more sustainable growth.”

HousingWire is also reporting construction of multifamily housing increased by 14% to an annualized rate of 175,000 in January and building permits inched up 0.7% to an adjusted rate of 676,000.

Thinking About Investing in Rental Real Estate?

by bmadmin

It’s easy to get thrown off by the appearance of a property, your emotions, or what the media is saying. Here are four ways to avoid making that mistake if you are thinking about investing in rental real estate:

Reality Check One: Who is Your Target Market?

If the property is a good fit for your target market, it doesn’t matter if you wouldn’t live there. A renter may enjoy the property.

Reality Check Two: Are You Emotionally Involved?

Emotions shouldn’t be involved in buying a rental property, but it’s something to be wary of. If, at any point in the negotiations, you feel you can’t walk away from the deal, you need to take a step back and review everything! When your emotions are involved, you can’t make rational decisions. It is also a good idea to have a trusted adviser to bounce ideas off and receive confirmation when the property is good.

Reality Check Three: Are the Numbers Really What They Say They Are?

The numbers might look good on paper, but will the rent cover all the expenses? Make sure the numbers are what the sellers say they are. Get copies of any leases to verify rents. Check market rental rates for the area to make sure the current tenants aren’t under or overpaying. And make sure you obtain copies of the bills you’ll be responsible for (taxes, utilities, insurance, etc.).

Reality Check Four: Are You Judging the Book by Its Cover?

Many opportunities are missed because a property makes a negative first impression. The best deals are often those that look rough but can be easily rehabbed. Some properties may need a major face-lift to maximize its potential – but don’t judge a property strictly on its looks or you may miss out on a deal that could pay off big in the long run.

SAFE Act: Not So Safe

by bmadmin

If you’ve never purchased a home before, your intuition may tell you the best place to start is your local bank. However, what seems like an obvious choice may put you in a bad situation for the next 30 years.

Passed on July 30, 2008, the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act was created to develop and maintain a federal registration system for individuals and businesses engaged in originating residential mortgage loans. Subsequently the Nationwide Mortgage Licensing System (NMLS) was established and has been operational since January 2011.

At first glance this law appears to meet its goal of enhancing consumer protection and reducing fraud through the setting of minimum industry standards for the licensing and registration of licensed mortgage loan originators. All loan originators, regardless of employer, are required to register with and provide fingerprints to the NMLS for submission to the FBI for a criminal background check. The registry is available to the public – anyone interested is able to look up employment, address and licensing information on individuals and employers at www.nmlsconsumeraccess.org.

The SAFE Act has additional requirements to further assist in increasing protection and reducing fraud, including pre-licensing education, additional annual education and passing a written qualified test. However, one major issue with the SAFE Act is these additional requirements only apply to state-licensed mortgage loan originators. Originators employed by an insured depository or its subsidiaries are not required to take any education or pass a test.

The lack of education and an exam for insured depository originators causes the SAFE Act to fall short of its goals. It’s possible and likely that individuals not capable of passing the required exam will simply apply for employment at a local bank where they aren’t required to take the exam in the first place. Further, the lack of continued education means originators at depository institutions may not be up to date on the ever-changing mortgage industry.

For anyone interested in purchasing or refinancing a home, be sure to consult a state-licensed originator that meets ALL of the requirements of the SAFE Act. You can be confident they are putting you in the best situation for your individual scenario and you’re not dealing with an originator that wasn’t able to pass the exam.

(Guest Post written by Jen Conley, a Benchmark Partner and Ohio VA Loan Specialist)

Vacancy Rates Drop to Lowest Since 2006

by bmadmin

The national vacancy rate among single-family non-rental homes fell to 2.3 percent in the fourth quarter of 2011, according to data released Tuesday by the U.S. Census Bureau.

That’s down from 2.7 percent at the beginning of last year, and the lowest homeowner vacancy rate since early 2006.

Undoubtedly, the decline in vacancies is an offshoot of fewer foreclosures in 2011 combined with a slight uptick in home sales for the year.

RealtyTrac reports foreclosure starts were down 39 percent from 2010. And while new home sales had their worst showing in recorded history, the National Association of Realtors tracked a 1.7 percent annual increase in existing-home sales.

Paul Diggle, property economist with Capital Economics, says it’s another sign that excess inventory – at least the visible inventory – is slowly but surely being cleared. It

“leaves the visible inventory at a level consistent with house prices bottoming out later in the year,” according to Diggle.

The Census Bureau also reported that the nation’s homeownership rate dropped to 66.0 percent – its lowest level in nearly 14 years – as the housing downturn has eaten away at the share of Americans who are willing and able to own their own home.

The fourth-quarter homeownership rate gave up almost all of the previous quarter’s gain, Diggle noted.

“What’s more, despite median mortgage costs being more affordable than ever and early signs that mortgage credit is becoming more available…the seven-year downturn in homeownership may still have further to run,” he warns.

The flipside, Diggles says, is there are more households in the rented sector and fewer properties lacking tenants, which is helping to drive rents, and therefore landlords’ returns, higher.

He expects rental value growth is to hit 3 percent this year and average rental yields to rise to around 5.5 percent.

With house prices still falling for now, Diggles says it will be a while yet before homeownership is once again seen as an essential part of the American Dream, and that’s despite the fact that owning now seems to make greater financial sense than renting.

The drop in the homeownership rate pushed the share of households in rented accommodations up, from 33.6 percent at the beginning of 2011 to 34.0 percent in the fourth quarter. The ratio of homes in the rental sector that were vacant also fell, to 9.4 percent.

(Homeownership and Vacancy Rates Drop article courtesy of DSNews.com)

Protect Your Home From Water Damage

by bmadmin

April showers are just around the corner so it’s time to protect your home from the water. Caulking can be challenging the first time you try it but you will quickly get the hang of it. By caulking the areas around your doors and windows at least once per year you will protect your home from water damage. To get started you will need the following tools:

Putty knife
Tube of caulk
Caulking gun

1. Start by using a putty knife to scrape the joint where the window frame and wall join to remove any old caulk or dirt.

2. if you have a wire brush, go over the area you just cleaned. This will help the caulk adhere.

3. Grab your caulk gun and open up the end to insert the caulk tube into the gun. Cut a small diagonal hole at the end of the tube, using a razor knife or utility scissors.

4. Use a nail and push it into the opening you just cut to break the seal (if it isn’t broken). Squeeze the caulk gun trigger until caulk starts to come out through the tip. Press the release latch at the other end to stop the flow of caulk.

5. Set the flat part of the tip at the end of the window frame where it meets the wall. Squeeze the trigger slowly, pulling the caulk gun along the joint, making a thin, flat, even line of caulk. Don’t stop moving the gun as you lay the caulk. Press the release latch when you get to the end of the line to stop the flow of caulk.

6. Repeat for each area around the window, everywhere that two different materials meet, whether there is a gap or not. Immediately wipe up any extra caulk with a damp cloth. Let the caulk set overnight. You can also use you finger or a tool to smooth out the caulk and ensure all gaps are covered.