BANK OWNED (REO) HOME SALED DATA FOR FOLSOM, CA -OCT 2011
BANK OWNED (REO) HOME SALES DATA FOR FOLSOM, CA – OCTOBER 2011
This is the latest monthly report of a four-year study of bank owned (REO) home sales in Folsom, CA. This report covers October 2011.
There were 13 REO homes sold in Folsom this month, one less than sold the previous month.
The average days-on-market decreased markedly from 70 the previous month to 45 in October. That September statistic appears to be an anomaly in the normal trend. Only one of the homes had been on the market for more than 100 days, in fact it had been on the market for 231 days, skewing the reported days-on-market figure. However, 23% of the homes that sold were on the market for two weeks or less, proving that well priced homes in good condition are still selling quickly.
The 13 REO homes that sold represent only 21% of all homes sold in Folsom this month, a smaller segment than normal. The very low bank owned home inventory is a primary reason for this statistic.
The available inventory of REO homes in Folsom dipped to a .9-month supply. The inventory for bank owned homes in Folsom has not exceeded a one-month supply for four consecutive months and has not exceeded a two- month since February of this year. The available inventory for ALL homes available increased to a 2.5-month supply, up from a 1.8-month supply the previous month. Pundits tell us that a 6-month supply is neutral market, so Folsom remains a strong seller’s market for both bank owned homes and all other homes on the market.
The average cost-per-square-foot for REO homes was $ 151 in October, down one dollar from the previous month. The average cost-per-square-foot for ALL homes sold in Folsom in October was $ 156, also down one dollar from the previous month.
The overall sales price for REO homes was 98.63% of the final asking price. In addition, a full 47% of the buyers paid the asking price, or more, for their REO homes in October.
REO buyers paid 97% (or five dollars per square foot) of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in October. When applied to a 2500 square foot home, that represents a savings of $ 12,500: a considerable savings.
If you have any questions about purchasing a home in Folsom, a Folsom REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
4 WAYS TO AVOID REFINANCE REJECTION
4 WAYS TO AVOID REFINANCE REJECTION
Obtaining a new real estate loan is more difficult than ever. Banks, investors and the government have changed their tune since the high flying, no holds barred financing frenzy of the first six or seven years of this century.
In the current market, you actually have to have an income and assets and you have to produce concrete proof of their existence. The days of the NINA loan (No Income, No Asset–the borrower with a decent credit score did not have to produce proof of an income or of any assets to get a loan) are gone forever. The pendulum has returned past center and is now at the other end of its swing.
Naturally, now that loans are more difficult to get the market has adjusted to the much lower volume with lower interest rates. However, underwriting guidelines are as tight as a drumhead and only the most qualified are approved. Some of you may remember the old line often used in the movies from the 1930s, “you can’t get a loan from a bank unless you can prove to them that you don’t need the money.”
Lenders are looking for borrowers with credit scores in the 700s, the higher in the 700s the better. Many want a buyer to put 25% down, not the 20% that they have required for decades.
So how, you may ask, is a homeowner paying a high interest rate going to qualify for a refinance loan in this market? Unfortunately, unless that homeowner’s circumstances meet the stiff underwriter guidelines, they can’t. A good loan consultant will be able to determine if their situation may result in a loan approval before the lengthy process begins.
If the lender rejects your application, what can you do? The answer is; it depends on your situation. The first thing to do is consult with your loan consultant and make sure that you understand the reasons for the denial.
Shop Around: You may be able to apply to another lender. Although the primary guidelines are the same with almost all lenders, there may be some slight differences. Some commercial banks and credit unions service their own loans and can be more forgiving about certain issues than will be the large banks who sell their loans on the secondary market.
Low Credit Score: Credit reports are notorious for their inaccuracy. If there are errors on your credit score that have a negative impact on your score, you can get them corrected in a little over a month. You can also work with a loan consultant to fix some of the other problems listed on your credit report, but that can take much longer. Paying down credit card and other loan balances usually helps.
Equity Too Low: This is a common problem today. The market value on almost everyone’s home is down. It is difficult to get an appraisal for a higher value and appraisals cost $ 350 or more in most instances. If you have access to funds, you could do a cash-in mortgage, in which you contribute more cash to increase your equity position, making a refinance more acceptable to a lender.
Debt-to-income ration to high: Lenders do not want a borrower’s debt service to exceed around 40%, that means not only housing costs, but monthly payments on credit cards, store cards, auto loans, student loans, alimony and child support as a percentage of your gross (before taxes) monthly income. The government wants that ratio below 31%.
Paying down account balances is the only way to improve this ratio. One must also stop adding to those accounts to maintain an acceptable level.
Jack Guttentag of Inman News has written an excellent article on this subject. Select this link to access that article:
http://lowes/inman.com/newsletter/2011/11/09/news/161188
PRESCRIPTION FOR LOAN REJECTION
PRESCRIPTION FOR LOAN REJECTION
Many prospective borrowers do not know what to do after their lender has rejected their loan application. Many just give up after the first attempt. The fact is that many borrowers do succeed after a second or third attempt. They may have to change loan consultants and it could take time.
In many instances, they have to change their financial circumstances in order to qualify, saving money, paying off some debt or just waiting until a derogatory item ages out on their credit report.
Here are a few things to consider doing after your rejection:
Lenders have to explain why they rejected your application. By law, they have to do so in writing within 30 days, providing specific creditors names and accounts that are areas of concern. Review these reasons carefully.
Discuss the rejection in detail with your loan consultant. Ask specific questions and make sure that you fully understand the lender’s requirements and the corrective actions required for you to qualify. Some issues may be easy to correct, others may take some time to fix.
Some lenders are sticklers on some specific issues where others are not. It may be prudent to shop around and see what other lenders have to say about your present application and financial picture. (Note that each lender is going to run your credit and each time a borrower pulls a credit report, your score will drop. TV ads telling you that all you have to do is “call them and dozens of lenders will be at your doorstep offering you a loan”, equates to several companies running your credit and causing a drop in your credit score.) So, be careful about who you give your social security number to!
Follow the guidance of your loan consultant in this regard. He or she will be able to tell you if your present application is may be accepted elsewhere or if you have to fix existing problems first.
Credit unions are often a good source for home loans. They often provide excellent deals for longtime members.
First-time homebuyers should be careful about setting expectations. A home purchase will require payment of not only principal and interest, but real estate taxes, hazard insurance premiums and, if applicable, homeowner association dues. All of these expenses must be included in your calculations and home selection. (Payments on the purchase of a larger, older home may be lower than will be those on a newer condominium.)
Payment shock is another issue for first-time homebuyers. Those use to paying $1200 a month in rent will find it difficult to scrape together the $ 1650 for a mortgage payment that includes taxes and insurance.
Derogatory items on a credit score are most damaging to the applicant for the first year. Their impact diminishes slightly in the second year and unless the item is a foreclosure, bankruptcy or judgment, it will have a lesser affect as time passes. Therefore, some applicants have to wait until one or more derogatory issues “ages out,” resulting in an increase in FICO score.
Applicants should always be looking for ways to improve their financial picture. Pay EVERY BILL ON TIME, especially real estate loans and rent.
Avoid large purchases immediately before submitting an application. You can wait to buy that new car, boat or large flat screen TV until after you move into your new home and have adjusted to that loan payment.
Paying down credit card, revolving account and other balances always helps improve your financial picture and will help raise that FICO score.
Applicants who are having problems getting their loan application approved may contact us for further insights: (916) 337-0658
BANK OWNED(REO) HOME SALES FOR EL DORADO HILLS, CA-SEPT. 2011
BANK OWNED (REO) HOME SALES DATA FOR EL DORADO HILLS, CA – SEPTEMBER 2011
This is the latest monthly report of a nearly four-year study of bank owned home sales in El Dorado Hills, CA. This report covers September 2011.
There were 15 REO homes sold in El Dorado Hills in September, three more than sold the previous month.
The average days on market dropped from 36 in August to 36 in September. Only one of the homes had been on the market for over 100 days. A full 60% of the homes that sold were on the market for two weeks or less. Well-priced homes in good condition are still selling quickly.
The 15 Bank Owned homes that sold represent only 26% of ALL homes sold in El Dorado Hills this month.
The available inventory of bank owned homes in El Dorado Hills increased from a 1.5-month supply the previous month to a 1.6-month supply in September. That inventory level has not been over a 2-month supply any month this year, with the exception of February, when it was at a 2.7-month supply. The available inventory for ALL homes increased from a 3.5-month supply the previous month to a 4.2-month supply in September. Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills.
The average cost-per-square-foot for Bank Owned homes was $ 136 in September, up from $ 133 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in September increased to $ 152, up from $ 148 the previous month.
The overall sales price for REO homes was 101.1% of the final asking price and 98.6% of the original asking price. Yet 60% of the buyers paid the full asking price or more for their REO homes in September. Apparently, these homes were well priced and buyers decided to take advantage of low prices and excellent mortgage interest rates.
REO buyers paid 90% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in September. That is a $ 16 pre-square-foot savings. When applied to a 2500 square foot home that represents a savings of $ 40,000, a considerable sum. Most buyers would consider that sufficient reason to accept the fact that REO buyers must relinquish some of the rights they have when buying a home in a normal sale.
If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
BANK OWNED(REO) HOME SALES DATA FOR FOLSOM, CA–SEPT. 2011
BANK OWNED (REO) HOME SALES DATA FOR EL DORADO HILLS, CA – SEPTEMBER 2011
This is the latest monthly report of a nearly four-year study of bank owned home sales in El Dorado Hills, CA. This report covers September 2011.
There were 15 REO homes sold in El Dorado Hills in September, three more than sold the previous month.
The average days on market dropped from 36 in August to 36 in September. Only one of the homes had been on the market for over 100 days. A full 60% of the homes that sold were on the market for two weeks or less. Well-priced homes in good condition are still selling quickly.
The 15 Bank Owned homes that sold represent only 26% of ALL homes sold in El Dorado Hills this month.
The available inventory of bank owned homes in El Dorado Hills increased from a 1.5-month supply the previous month to a 1.6-month supply in September. That inventory level has not been over a 2-month supply any month this year, with the exception of February, when it was at a 2.7-month supply. The available inventory for ALL homes increased from a 3.5-month supply the previous month to a 4.2-month supply in September. Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills.
The average cost-per-square-foot for Bank Owned homes was $ 136 in September, up from $ 133 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in September increased to $ 152, up from $ 148 the previous month.
The overall sales price for REO homes was 101.1% of the final asking price and 98.6% of the original asking price. Yet 60% of the buyers paid the full asking price or more for their REO homes in September. Apparently, these homes were well priced and buyers decided to take advantage of low prices and excellent mortgage interest rates.
REO buyers paid 90% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in September. That is a $ 16 pre-square-foot savings. When applied to a 2500 square foot home that represents a savings of $ 40,000, a considerable sum. Most buyers would consider that sufficient reason to accept the fact that REO buyers must relinquish some of the rights they have when buying a home in a normal sale.
If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
