In episode 15 of the Wheel Estate Cam, Frank LLosa discusses how backup offers can seal the deal in today's economy, providing a win-win for agents, buyers and sellers. By offering a backup offer, you can lead buyers into being more aggressive as well as attract other buyers in case a previous sale doesn't close.

View the original post on Inman News here.

Posted in Education And Training, Marketing, Seller Resources

Over the next year, lenders are expected to make about $36 billion in new home equity loans, compared to $34 billion in 2008, according to Moody's Economy.com. Most of this money is expected to go towards home improvements rather than luxury items.

The 2010 growth in equity lending will be limited to homeowners whose properties are worth more than what they owe. According to Zillow, more than a fifth of U.S. homes with mortgages had negative equity in the fourth quarter.

Despite the economic distress, unemployment claims are lightening and banks are done tightening their lending standards. Property prices are expected to rise this year, the first time since 2006, raising home owners' equity.

Read more in the Bloomberg report on BusinessWeek.com.

Posted in Education And Training, MBI News, Buyer Resources, Seller Resources

Under new Treasury Department rules that take effecton April 5, short sales will be presented as the next possible step for homeowners who are not applicable for the federal Home Affordable Modification Program (HAMP).

By offering this option, the administration is acknowledging that the current mortgage modification effort "can't solve the foreclosure problem by itself," says RealtyTrac chief economist, Rick Sharga. He sees positive points in the new guidelines, such as easier, standardized paperwork, financial incentives for both homeowners and mortgage servicers, and limited payouts for second lineholders.

Short sales are not widely used. According to the National Association of Realtors, in January 2010, only 14% of home transactions were short sales. The new program is doubtful to make the short sale transaction any easier, and while it may increase the number of these transactions, some are saying it won't "live up to the hype."

Read more from RISMedia.

Posted in Education And Training, MBI News

The FHA is tightening its belt when it comes to mortgage loans, on the heels of an investigation into 15 FHA lenders whose FHA mortgage insurance claims were markedly high.

Myriad notices and comments about the impending qualification changes have been announced, but will take effect this spring, including raising mortgage insurance fees that borrowers must pay, capping the amount of cash that sellers can contribute for closing costs and requiring higher down payments for borrowers with poor credit scores.

With foreclosure rates tapering off in February compared to January, there is hope on the horizon, albeit rates are still higher than that of the previous year. The FHA is insuring as many as 50% of all purchase loans, as compared to 3% before the collapse of the subprime market.

With the tighter restrictions on FHA loans, the options for seeking other financing simply don't exist, making some wonder if this will add fuel to the fire to the weakened housing market.

Read more at Realty Times.

Posted in Education And Training, MBI News, Buyer Resources, Seller Resources