Big News in Housing - HUD announces temporary waiver on Anti-Flipping Rule to simulate economy
As of February 1, 2010, buyers with FHA-backed loans will be able to
purchase homes owned for less than 90 days. This past Friday, January
15, 2010 HUD announced a temporary policy to allow for the quick resale of foreclosed property - with strict guidelines in place to prevent predatory "flipping"
where buyers are purchasing homes with over-inflated pricing. Most first-time buyers are using FHA insured financing because the down payment requirements are less than conventional financing. Increasing the amount of affordable
housing available for first-time buyers to purchase (along with the extension of the tax credit) will provide an opportunity to stimulate the economy by improving the value of homes in neighborhoods with high
vacancy and those most affected by the foreclosure crisis. For more information on the Federal Housing Administration,
follow this link http://portal.hud.gov/portal/page/portal/HUD/federal_housing_administration
The goal of the temporary waiver is also to lure investors back into the market to purchase property with the intention of fixing them, and then selling them
(flipping). The guidelines included with this waiver are as follows:
* All
transactions must be at "arms length". In other words, the transaction must have no identity of interest between
the parties. * Seller's profits are limited to 20% above the purchase cost. Specific conditions
must be met for profits above 20% to be accepted. * The waiver is limited to forward mortgages
(mortgage where equity rises and debt falls), and does not appy to the Home Equity Conversion Mortgage (HECM) for purchase program.
The announcement is great news for investors, buyers, sellers,
neighbors and even lenders. We strongly encourage anyone buying or selling to hire competent Real
Estate and Mortgage professionals to assist with negotiation, presenting offers, market analysis, FHA guidelines, inspections,
etc. to look out for your best interest.
Northern Colorado Real Estate and Housing Market Trends 2010
Extra! Extra! Read all about it! The Northern Colorado Housing Market is on track for an outstanding 2010.
Take Me Home Real Estate, LLC has compiled real estate market research and found positive statistics to share. In comparing housing
sales for 2008 and 2009 (Residential, Attached Dwellings, Vacant Land, Farm and Ranch) in Northern Colorado, here is
what we found:
1. Housing sales and values rose 16% in the
fourth quarter of 2009 from the previous year.
2. Foreclosure sales decreased
a total of 28.38% from 2008 to 2009, from 3034 to 2173 sold while short pay sales increased substantially.
3. Although the total number of sales decreased by 9.59% and values decreased by 15.34% from 2008 to 2009, it
is an improvement from the 2007/2008 comparison of 13.11% and 17.56%.
4. Putting things into
perspective - the increase in property values from 2000-2005 was 45.24%.
Five years and almost 2 billion dollars more. The decrease in values from 2005-2009
was 36.83% and 2 billion dollars less.
(Source: IRES, LLC Information deemed reliable but
not guaranteed)
Take Me Home Real Estate, LLC's predictions for 2010:
* Rising interest rates - pay attention to mortgage rates and contact lender to request a good faith estimate for monthly costs.
* First-Time Home Buyer Tax Credit - expires April 30, 2010. We will see an increase in condo, townhome and affordable single family home sales during
the first quarter.
* Move-Up/Repeat Home Buyer Tax Credit - expires April 30, 2010. Listing inventory will increase during the first quarter as sellers/repeat
home buyers take advantage of the $6500 tax credit.
* An increase in rental housing demand - those
losing their homes to foreclosure will continue to need temporary housing.
* Affordable housing between $80k and $200k selling quickly. Values should remain stable
throughout the year with a slight increase towards the latter part of 2010.
* Luxury home market sales, especially
short sales, will be strong. Homes that have been on the market over 1 year with significant price reductions will begin
to move as well.
