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Below please find a link to something that I received from one of my preferred lenders, Ryan Abrahamson of Universal Lending. It is a good explanantion, although not crystal clear to me, but good never-the-less of what has transpired to get us to the point, less than comfortable, where we are now in the Real Estate biz...
http://www.mortgagesuccesssource.com/go/markmarket/
What I got out of it was a bit of an explanation of what happened but, more importantly hope for what will happen!
Pete
Monday, December 29, 2008
Friday, December 19, 2008
Colorado Foreclosure Hotline
Colorado housing hotline (1-877-601-HOPE) grows hotter...
Despite falling foreclosures in the state, calls more than doubled in November. Counselors have seen 10,300 homeowners in two years.
By Greg Griffin The Denver Post
University of Colorado Real Estate Professor Thomas G. Thibodeau, overlooks Boulder, Colorado, Thursday afternoon. (DENVERPOST KIRK SPEER)
The state's foreclosure hotline for financially troubled homeowners continues to do brisk business even though foreclosures fell during the last quarter in Colorado.
Calls to the hotline more than doubled in November, even as foreclosure filings fell by 24 percent during the third quarter. During the first nine months of the year, calls to the hotline climbed a more modest 32 percent over last year.
Hotline officials said news about the financial crisis and recession spurred concern among many homeowners. Callers are phoning in at earlier stages of delinquency than in the past, increasing their likelihood of avoiding foreclosure, said Ryan McMaken, spokesman for the Colorado Division of Housing, which oversees the 2-year-old hotline.
Hotline workers urge callers who face the prospect of foreclosure to meet with a housing counselor to review their finances and mortgage options.
The hotline has taken more than 52,000 calls since it was launched in October 2006, and its counselors have met with 10,300 home owners.
At least 37 percent of those who received counseling kept their homes by bringing their mortgage current, refinancing, receiving a loan modification, taking a second mortgage or getting a repayment plan. A quarter were able to sell their homes or convey them to the bank without a foreclosure. Bankruptcy claimed 14 percent, 17 percent went into foreclosure, and 14 percent had other outcomes, such as being referred to a housing agency.
Loan modifications, which accounted for 7 percent of the total and involve the lender reducing monthly payments, have become a hotly debated policy issue.
Proponents such as Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., advocate modifications as a way to keep people in their homes, stabilize housing prices and help the economy recover. But critics say many modified loans end up in foreclosure.
The U.S. comptroller said last week that more than half of delinquent homeowners whose mortgages were modified earlier this year defaulted within six months.
The Colorado Foreclosure Hotline does not track what happens to homeowners after they reach a resolution such as a modification or repayment plan, McMaken said. The face-to-face counseling and close attention to borrowers' financial situation provided by the hotline are likely to produce better results, he said.
Tom Thibodeau, a professor of real estate at the University of Colorado at Boulder's Leeds School of Business, said loan modifications are an important tool to keep people in their homes but that public officials and lenders have to be careful.
Modifying a loan when home prices are declining may backfire if the homeowner still owes more on the house than it's worth three months later. The homeowner still has an incentive to walk away, he said. Home prices are still falling in some states, including California, and that may have affected the comptroller's numbers, he said.
"If these modifications are being made for people whose house prices are still falling, I just wonder why," he said.
Greg Griffin: 303-954-1241 or ggriffin@denverpost.com
Mortgage delinquency status of hotline callers
35% — Current
8% — 1 month
17% — 2 months
17% — 3 months
12% — 4 months
14% — 5 months or more
Percentages exceed 100 because of rounding
Despite falling foreclosures in the state, calls more than doubled in November. Counselors have seen 10,300 homeowners in two years.
By Greg Griffin The Denver Post
University of Colorado Real Estate Professor Thomas G. Thibodeau, overlooks Boulder, Colorado, Thursday afternoon. (DENVERPOST KIRK SPEER)
The state's foreclosure hotline for financially troubled homeowners continues to do brisk business even though foreclosures fell during the last quarter in Colorado.
Calls to the hotline more than doubled in November, even as foreclosure filings fell by 24 percent during the third quarter. During the first nine months of the year, calls to the hotline climbed a more modest 32 percent over last year.
Hotline officials said news about the financial crisis and recession spurred concern among many homeowners. Callers are phoning in at earlier stages of delinquency than in the past, increasing their likelihood of avoiding foreclosure, said Ryan McMaken, spokesman for the Colorado Division of Housing, which oversees the 2-year-old hotline.
Hotline workers urge callers who face the prospect of foreclosure to meet with a housing counselor to review their finances and mortgage options.
The hotline has taken more than 52,000 calls since it was launched in October 2006, and its counselors have met with 10,300 home owners.
At least 37 percent of those who received counseling kept their homes by bringing their mortgage current, refinancing, receiving a loan modification, taking a second mortgage or getting a repayment plan. A quarter were able to sell their homes or convey them to the bank without a foreclosure. Bankruptcy claimed 14 percent, 17 percent went into foreclosure, and 14 percent had other outcomes, such as being referred to a housing agency.
Loan modifications, which accounted for 7 percent of the total and involve the lender reducing monthly payments, have become a hotly debated policy issue.
Proponents such as Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., advocate modifications as a way to keep people in their homes, stabilize housing prices and help the economy recover. But critics say many modified loans end up in foreclosure.
The U.S. comptroller said last week that more than half of delinquent homeowners whose mortgages were modified earlier this year defaulted within six months.
The Colorado Foreclosure Hotline does not track what happens to homeowners after they reach a resolution such as a modification or repayment plan, McMaken said. The face-to-face counseling and close attention to borrowers' financial situation provided by the hotline are likely to produce better results, he said.
Tom Thibodeau, a professor of real estate at the University of Colorado at Boulder's Leeds School of Business, said loan modifications are an important tool to keep people in their homes but that public officials and lenders have to be careful.
Modifying a loan when home prices are declining may backfire if the homeowner still owes more on the house than it's worth three months later. The homeowner still has an incentive to walk away, he said. Home prices are still falling in some states, including California, and that may have affected the comptroller's numbers, he said.
"If these modifications are being made for people whose house prices are still falling, I just wonder why," he said.
Greg Griffin: 303-954-1241 or ggriffin@denverpost.com
Mortgage delinquency status of hotline callers
35% — Current
8% — 1 month
17% — 2 months
17% — 3 months
12% — 4 months
14% — 5 months or more
Percentages exceed 100 because of rounding
Wednesday, December 3, 2008
Remodeling Projects with the Highest Returns
Not infrequently do I get asked, “Is it worth me remodeling my_________?” or “Whadya think about me doing ________?”.
Typically I’ll shoot from the hip but I’m always validated…or not… by articles like this.
Remodeling Projects With the Highest Returns
For the second year in a row, REALTORS® report that exterior remodeling projects return the most money as a percentage of cost, as detailed in the 2008 Remodeling Cost vs. Value Report. On a national level, wood deck additions and all types of siding replacements–upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl–returned more than 80 percent of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7 percent of costs, followed by wood decks at 81.8 percent, midrange vinyl siding at 80.7 percent, and upscale foam-backed vinyl siding at 80.4 percent. The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country, expanding from 60 markets last year. Projects With Highest, Lowest ReturnsIn addition to wood decks and siding, window replacements and kitchen remodels also returned a relatively high percentage of remodeling costs on a national basis. All types of window replacements–upscale and midrange wood and upscale and midscale vinyl–returned more than 76 percent of costs. A major midrange kitchen remodel returned 76 percent of project costs, while a minor midrange kitchen remodel returned 79.5 percent of costs.On a national level, bathroom remodels, while still a relatively good investment, do not return as high a percentage as in previous years. A midrange bathroom remodel was estimated to return 74.4 percent on resale, comparable to a midrange attic-to-bedroom conversion, at 73.6 percent of costs recouped, and a midrange basement remodel, at 72.7 percent of costs recouped.As in last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels, sunroom additions, and back-up power generators, returning only 54.4 percent, 56.6 percent, and 57.1 percent, respectively, of project costs. National Association of Realtors® President Charles McMillan says the resale value of any given remodeling project depends on a variety of factors. “A home’s overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project,” he says. Results of the report are summarized in the December 2008 issue of REALTOR® Magazine. The issue also includes examples of actual remodeling projects that were less expensive than many of the report’s cost estimates. Read the story online.Full project descriptions, as well as national, regional and local project data for the 79 cities covered by the report will be posted at http://www.costvsvalue.com/ by Dec. 5.This is the 11th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine. For the report, Realtors® provided their insight into local markets and buyer home preferences.Source: NAR
Typically I’ll shoot from the hip but I’m always validated…or not… by articles like this.
Remodeling Projects With the Highest Returns
For the second year in a row, REALTORS® report that exterior remodeling projects return the most money as a percentage of cost, as detailed in the 2008 Remodeling Cost vs. Value Report. On a national level, wood deck additions and all types of siding replacements–upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl–returned more than 80 percent of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7 percent of costs, followed by wood decks at 81.8 percent, midrange vinyl siding at 80.7 percent, and upscale foam-backed vinyl siding at 80.4 percent. The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country, expanding from 60 markets last year. Projects With Highest, Lowest ReturnsIn addition to wood decks and siding, window replacements and kitchen remodels also returned a relatively high percentage of remodeling costs on a national basis. All types of window replacements–upscale and midrange wood and upscale and midscale vinyl–returned more than 76 percent of costs. A major midrange kitchen remodel returned 76 percent of project costs, while a minor midrange kitchen remodel returned 79.5 percent of costs.On a national level, bathroom remodels, while still a relatively good investment, do not return as high a percentage as in previous years. A midrange bathroom remodel was estimated to return 74.4 percent on resale, comparable to a midrange attic-to-bedroom conversion, at 73.6 percent of costs recouped, and a midrange basement remodel, at 72.7 percent of costs recouped.As in last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels, sunroom additions, and back-up power generators, returning only 54.4 percent, 56.6 percent, and 57.1 percent, respectively, of project costs. National Association of Realtors® President Charles McMillan says the resale value of any given remodeling project depends on a variety of factors. “A home’s overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project,” he says. Results of the report are summarized in the December 2008 issue of REALTOR® Magazine. The issue also includes examples of actual remodeling projects that were less expensive than many of the report’s cost estimates. Read the story online.Full project descriptions, as well as national, regional and local project data for the 79 cities covered by the report will be posted at http://www.costvsvalue.com/ by Dec. 5.This is the 11th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine. For the report, Realtors® provided their insight into local markets and buyer home preferences.Source: NAR
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