Elizabeth Vance

Mortgage Rates Increase, National Sales Decrease!

Elizabeth Vance — Tue, 24 Jun 2008 12:14:00 GMT

National average mortgage rates increased to 6.42% in the latest Primary Mortgage Market Survey released weekly by Freddie Mac on June 19th. This is the fourth straight week that rates have increased and the highest rates have been since September 2007. In the week ending June 18th, the MBA’s seasonally-adjusted Purchase Index declined to 360.2 from 376.2 in the previous week. Purchase applications have declined in two out of the past three weeks. The latest figure reflects a 4.25 percent decrease from last week and a 20.12 percent drop from the same period last year.

New and existing home sales moved in opposite directions in April. New home sales posted a rare 3.3% increase in April to a seasonally-adjusted 526,000 homes, up from a revised March figure of 509,000. This is the first time since October 2007 in which seasonally-adjusted annualized sales have posted a monthly increase. Sales for the previous three months, however, were revised lower by 30,000 units. At the current sales pace, there are 10.6 months of new homes supply on the market. The number of new homes for sale continued to decline as builders continue to scale back production. New home inventory declined to 454,000 which is the lowest it has been since May 2005. In April, median new home prices rebounded from its lowest levels since September 2006 in March to $246,100 in April. It was also the first time since November that median new home prices recorded a year-over-year gain.

Annualized sales of total existing homes declined 1.0% in April to 4.89 million units. Sales of existing homes are down 17.5% from the 5.93 million units in April 2007. Median existing home prices in April increased for the second straight month to $202,300 from a revised $200,100 in March. The number of existing homes for sale increased jumped 10.5% to 4.552 million units in April. At the current sales pace, there are 11.2 months of existing homes supply on the market. Existing home affordability declined slightly in March due to the increase in median existing home prices.

Mortgage crisis - divorce link?

Elizabeth Vance — Tue, 22 Apr 2008 12:15:00 GMT

The home-mortgage crisis in the United States has spawned problems in the mortgage, real-estate and banking industries, and many consumers now face mortgage-payment increases in the coming months that could cause the number of foreclosures to climb even higher. And all of those financial woes, experts say, may be spawning another problem: an increase in divorces.

"Historically, the three most likely reasons for foreclosure problems are: loss of job, loss of health and loss of spouse. On top of that, these days, escalating mortgage payments are exacerbating the divorce problem," said Nicholas Retsinas, the director of Harvard University's Joint Center for Housing Studies.

The Harvard housing expert said it's too soon for a definitive study linking divorce to the Country's recent foreclosure woes. But Scott Daniels, an Ocala, Fla., real-estate agent, doesn't need a study to tell him what he already knows: The mortgage-industry crisis is causing an increase in the number of couples who are getting divorced. "In the last three months, we have accepted five listings which are divorce sales. In each instance, it's due to the obligation of meeting their mortgage payments," Daniels wrote earlier this year in his blog.

"Faced with pressure, these couples are blaming one another! Rather than attempt to work together to resolve the problem, they find it easier to separate. They each have in common the same exact problem: No one is able to make a decision on what price to sell for! Financial woes caused by variable mortgage rates are really straining to a relationship. When times are good, people are happy. They love and laugh in unison. When the world is bad, they get ugly with each other. Human nature is funny that way."

Daniels thinks once statistics between the mortgage rates and divorce rates are compiled, the public will see a national trend. "It's a trend that will continue as long as real-estate prices spiral down. Many couples can't face the reality of mounting bills, higher mortgage payments and decide it's better to part. As we move forward this trend is happening at an alarming rate leading to foreclosures," he says.

In response to his blog post, Daniels said, he received 50 to 60 replies from real-estate agents around the Country who agreed with his assessment that the mortgage problems are leading to more and more foreclosures -- and more and more divorces.

In 2002, when the latest statistics were available, Legalzoom.com, ranked Nevada as the No. 1 state in the Nation for divorce. Arkansas ranked second and Wyoming third. In cities, Reno, Nev., had the most divorces, with Las Vegas and Evansville, Ind., following behind.

Though there are no studies linking foreclosure to divorce rates, Frank Fincham, the director of Florida State University's Family Institute, said, "Financial problems among couples are one of the main reasons for divorce in this Country today." A recent poll commissioned by divorce360.com ranked financial issues as the No. 2 reason that Americans divorce, with abuse ranked as No. 1.

Columbus, Ohio, psychologist Jeff Sherrill said: "There is clear data on divorce and wealth. . . . If you're poor, your financial situation helps make marriage unstable. If you're having trouble sustaining a stable life, it can result in divorce."

Randy Kessler, a lawyer in Atlanta, said the downturn in the housing market is definitely causing more stress for couples, even if they are not getting divorced.

"For years, Middle America thought it could get a divorce and use the equity in their home as a safety net, but there is no equity. There is no equity today," Kessler explained. "It used to be, when couples bought a house, in five years it was worth more. And when people got divorced in those days they expected to be able to live for a while off the proceeds from the sale of the house. . . . We do have a lot of people in trouble in this Country because the value of their house either decreased or has not increased."

Still, despite the serious financial drawbacks to divorce, Kessler said: "If you want a divorce, it doesn't matter what it costs you. Before most people get a divorce they have thought about it long and hard."

This article was reported and written by Don Moore for divorce360.com.

You are falling behind on your mortgage payments.....What are your options?

Elizabeth Vance — Thu, 27 Mar 2008 12:43:00 GMT

There are alternatives to foreclosure! Try to look at the situation without attaching your emotions which I realize can be difficult. But, if you view the situation from more of a business viewpoint, you will be able to more successfully analyze which option might best suit your needs and desires and move you towards resolving your financial difficulty. One very important thing to remember: Time is of the essence, so sit and take serious thought of your situation and take quick action in order to allow yourself enough time to complete the chosen process.

There are bascially nine options to foreclosure!

1. Do Nothing - If a homeowner does nothing, s/he most likely will lose his home at foreclosure auction (sheriff's sale). All future loan applications will ask if you have ever been foreclosed upon. Credit reports disclose this damaging information. Not the best option. The sheriff will most certainly show up one day and give you from 20-30 minutes to gather what belongings you can carry and vacate the premises if you have not already left the house. There is no dignity in this scenario.

2. Payoff/Refinance - Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there needs to be equity in the home.

3. Reinstatement - Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

4. Loan Modification - Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payments to begin with.

5. Forbearance - Lender may be able to arrange a repayment plan based on the homeowner's financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required by the lender to show that you are able to meet the new payment plan requirements. You must show you can recover from the hardship.

6. Partial Claim - A loan from the lender for a 2^nd loan to include back payments, costs and fees. Credit must be high enough to qualify.

7. Deed in Lieu of Foreclosure - Give the property back to the bank instead of the bank foreclosing. Banks require the home be well maintained, all mortgage payment and taxes must be current. The home must be listed at fair market value for at least 90 days with no offers before this option may be exercised. Future loan applications will ask if this has ever happened.

8. Bankruptcy - This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney.

--Chapter 7 (Liquidation) To completely settle personal debt.

--Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.

--Chapter 11 (Business Reorganization) A business debt solution.

9. Sale - If the property has equity (money left over after all loans and monetary encumbrances are paid) the homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale. On the other hand, a short sale, also known as a pre-foreclosure sale, can be negotiated with your lender if what is owed is MORE than the property's value. The latter will effect your credit, but not to the degree a full foreclosure or bankruptcy will.

The key is to take action, not react! I can help. Call me. I can work with your lender. We can tackle this together!

Here's Some GREAT Mortgage Info....

Elizabeth Vance — Mon, 20 Aug 2007 21:50:00 GMT

This was presented at our Beachwood office meeting from a mortgage lender....

The main stream media is taking this whole "mortgage meltdown" thing way too far. It doesn’t surprise me. It’s a hot button issue, and more Americans are homeowners now than ever before. If you read the Plain Dealer or watch the cable news networks … the fear mongering is out of hand.

I had a buddy call me this weekend he put 15% down a year ago, has great credit and asks me: "Should I be worried?" NO!

I wish one of these newspaper reporters would call me so I can give them the whole story, and not just the headline grabbing fear mongering. I guess when readership is down because of the internet and you have to create hype, why not go after the fear in everyone's heart: their home??

The people that are getting burned right now are the end game aggregators of all the risky loans this industry did over the last five years. The people who craved that high yielding paper during times of fantastic home appreciation. Almost all of it on products that would see the rates increase a couple years after origination. We should have never been doing these loans in the first place! Sure, we did some of it here too … but not one 100% CLTV loan, pay option ARM, or sub-prime loan ever hit our portfolio here at the bank.

The lenders like us that exhibited responsibility during a half decade of rampant irresponsibility in this industry are not only fine, but positioned to grow and thrive in the wake of the fall out.

I could not be more excited about the next five years for us here, and we’re committed to continuing to grow while the market correction continues. There’s some great years ahead for this industry, and with far fewer hands in the cookie jar. Are there going to be less qualified borrowers? Of course. But there will also be far less competition for their business, and good originators should be able to capitalize on that.

I’ve said it before. We’re just returning to the way things used to be. The way they should be. The biggest refi boom in history, followed by years of historically low rates, and programs developed for every borrower … it inundated this industry with far too many players. Yes, home prices are still overvalued. Depending on the market, by anywhere from 5-20%. In Ohio, as a whole, probably by 12-13% total. But this is after six years of 5-10% appreciation!

Here’s what’s happening now.

Guy bought home in 2000 for 150k. Home was worth 200k in 2006 if he sold then. Even though home prices, on average, over history, only go up 2-3% per year. He got 6% a year for the last six. Hey buddy … you missed your chance to sell at 200k. Like all markets, this one is correcting itself after years of abnormal growth. This guy now cannot fathom that he’s only getting bids of 180k. Looks at it like he’s taking a 20k hit, when in all reality … his home never should have been worth 200k. And he missed his opportunity to sell high.

That’s what’s happening out there. There’s a lot of homes for sale for too much money (overpriced).

So as we move forward, I’m looking at the following set of circumstances playing out:

~Sellers slowly face reality on home values, purchases will increase ~More players will leave the market and lessen competition, larger lenders lose their advantages of having 20 pages of products, leveling the playing field ~Fed will ease rates a couple times, economy is looking like it will still show great growth in 2008 even without that ~Mortgage rates should stay low, yield curve should steepen … making ARM’s more viable once again

Listen … when everyone else is zigging, you zag. I couldn’t be more excited about this industry right now.

Whew!~

More Mortgage Company Woes!

Elizabeth Vance — Thu, 09 Aug 2007 01:17:00 GMT

American Home Mortgage Investment (nyse: AHM - news - people ) Corp., the nation's 10th-biggest home lender, filed for bankruptcy protection and marked the latest sign of a distressed mortgage industry.

Also, National City Bank said Monday that it has stopped taking applications for home equity loans and lines of credit through mortgage brokers as problems in the mortgage industry continue to spread.

"This is one of a number of steps National City (nyse: NCC - news - people ) has taken in recent weeks to help ensure that originations are in line with existing and anticipated market conditions," the company said in a statement. "We are continuing to closely monitor the market and take the appropriate steps to best navigate market conditions." NCB is still writing these loans at the branch level. It is just that now you cannot get a NCB product from a mortgage broker.

So, if you are working with a Realtor who recommends a list of reputable mortgage providers, you may want to consider working with someone on that list. Because we in the real estate business know that homes and dreams can be lost at the last moment when buyers make a bad choice in lenders!

We keep hearing how bad the market is, but is it?

Elizabeth Vance — Sat, 04 Aug 2007 14:38:00 GMT

Working with buyers right now is more difficult than it should be. They hear from the media that they should start offers at AT LEAST 10% of list price and not pay more than 95% of list price. This can make negotiations very difficult with sellers who get offended and don't even want to then work with those buyers. And more difficult if the buyer really LOVES the house, but loses it despite our efforts because they listened to the wrong expert (not their Realtor). The truth for buyers is that if you love the house, make a decent offer. Because our job, as Realtors, is to help you reach your goal. And if you want the house, we want you in that house. Low balling an offer can lose you the house, despite all of our efforts. And a buyers market simply means it's a supply/demand issue - more inventory (homes) than buyers. But buyers listening to the so-called experts believe one thing and they trying to listen to us, believe something different - which does sometimes paralyze them into doing nothing.

But let's look at the statistics in the Cleveland/Medina area and compare them with the last few years just to see. This information come from the statistics compiled by the Northest Ohio Regional Multiple Listing Service (NORMLS, as we in the biz call it).

Changes from 06-07

New Listings Up 5.55

Sold Listings Down 7.1%

Average Sales Price Down 3.5%

Market Time Up 9.8%

In summary, comparing 07 to 06 we had more listings with fewer selling at sales prices lower than 06 and on the market longer, but all are slight, not dramatic.

Changes from 05-06

New Listings Up 15.2

Sold Listings Up .8%

Average Sales Price Down 2.1%

Market Time Up 6.5%

In summary comparing 06 to 05 we had more listings with MORE selling at sales prices slightly lower than 05 and on the market again, longer, but slight.

Changes from 04-05

New Listings Up 15.6%

Sold Listings Up 4.7%

Average Sales Price Up 4.4%

Market Time Up 1.3%

In summary comparing 04 to 05 we had more listings with MORE selling at prices slightly higher than in 04 and on the market again, longer, but slight.

In summary comparing 04 to 07 the number of houses on the market has continuously risen, but this year has seen the fewest new listings in the past 3 years. The number of sold homes is only slightly down and the average selling price is slightly down and the market time is continuing to rise. Interestingly for sellers, and yes buyers, the last time the average sales price went up was in 05 which means homes are selling today for around the same, if not slightly lower than they did in 05. If someone bought their home in 04 or 05 and expects to make the appreciation of 2 years on that home, the statistics show that it is not likely they will. I guess in all of this that is the bad news. The rest is marignal news, not horrible as the media paints it.

So just how bad is it really? Houses are selling. Buyers are buying. I think if both buyers and sellers do a little reality check the market will keep on keeping on. But if everyone starts listening to the so-called experts and then let that information paralyze them, we might be looking at a different set of statistics next year. Bottom line buyers if you like a home, make a decent offer. Sellers realize that your home may not sell for what you want it to today, but may sell for the price you would have gotten 2 ago if you sold. But if you then have a house to buy, you are making it up on that end as well....

2 New Programs for Sellers!

Elizabeth Vance — Sun, 22 Jul 2007 13:28:00 GMT

Be sure to read about my Fair & Flexible Commission Plan as well as my 100 Days or $1000 Homeselling Plan. Both offer sellers choices of how YOU want to do business in real estate. Offering programs and plans in real estate like nobody else does!

Elizabeth

Gorgeous NEW Hinckley Listing!

Elizabeth Vance — Fri, 25 May 2007 14:54:00 GMT

Fabulous 3700 sqft with 4 bedrooms and 2.5 bathrooms on a street of million dollar homes! A great value! You must see this home!

New Look!

Elizabeth Vance — Fri, 18 May 2007 01:21:00 GMT

As you can see my site has a new look! I am in the process of adding some features as well. If any of you have ideas on what you would like to see on my site, just let me know!

Mortgage Companies - Buyers Beware!

Elizabeth Vance — Sat, 14 Apr 2007 12:27:00 GMT

We just saw the fall out from a large crack down on companies that were writing loans that should never have been written. One such company is one we all know in Cleveland. This reminds me of a saying my father always said: "Just because you could, doesn't mean you should."

As Realtors when buyers come to us with an already approved letter from a lender, it's a mixed blessing. We want to work with approved buyers, but if we have never worked with that lender before we don't know if the words on that letter hold any weight! Especially with all of the internet lenders out there. Last year I had a deal that almost fell apart because of the lender. And this year I DID!

So, if your Realtor suggests you talk to other lenders just to get another opinion - it can't hurt! You may get a better deal and you may not. In the case this year, the lender I recommended to the buyer couldn't beat the deal they had with the lender they sent $500 to, but in the end (4 days before closing) that lender couldn't do the deal anyway! So just how good of a deal was it?

3 New Listings!

Elizabeth Vance — Tue, 27 Mar 2007 11:46:00 GMT

Two in Brunswick and one in LaGrange.

In Brunswick you can choose from a 3 bedroom bi-level that is absolutley fabulous and has been meticulously maintained. Also in Brunswick you can view a 3 bedroom, 2.5 bathroom that has only been lived in 2 months, so it is bascially new construction!

In LaGrange we have a 4 bedroom, 2.5 bathroom bi-level that functions more like a colonial on 4 acres with a pond!

All the details of these listings and more can be found by looking at the homes for sale!

Your Home's Value

Elizabeth Vance — Thu, 08 Mar 2007 12:54:00 GMT

On my website you can elect to have me send you a FREE analysis of your home's market value. I do this by running the comparable sales in the area. Remember, it's actually the buyers who determine the value of your home! Not the banks, not the County, not your neighbors, not what you paid for it, and not what it would cost to replace it. Buyers who are buying TODAY determine the value of your home today. Market value is simply what a buyer is willing to pay and a seller is willing to accept today for your home. The best way to determine this is to look at what buyers have paid within the past 3 months for similar homes in similar areas and condition! I can help with that! Let me know.

New Listing! 7010 Thornton in Parma

Elizabeth Vance — Thu, 01 Mar 2007 01:58:00 GMT

Parma - Announcing a new to the market listing that is a GREAT VALUE - 7010 Thornton, a 1,311 sq. ft., 1 bath, 3 bdrm 1 1/2 story "Bungalow". MLS® #2356003 $119,900 - Fabulous Buy!.

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Your Home's Own Website

Elizabeth Vance — Wed, 28 Feb 2007 00:35:00 GMT

Note that this information is outdated.

In addition to the websites listed on the home page, your home gets its very own website. Click the link to view one for yourself.

Open House in Meadowood on Tuesday

Elizabeth Vance — Mon, 19 Feb 2007 14:33:00 GMT

Meadowood, Strongsville - We invite everyone to visit our open house at 22206 Meadownorth Ct on February 20 from 11:00 AM to 2:00 PM.

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