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Three in 10 homeowners are concerned that their house will lose value over the next 10 years, while 14 percent are afraid they will miss a mortgage payment within the next six months. The findings may be linked to the fact that one in 10 homeowners have adjustable rate mortgages (ARMs) that started out with low interest rates but later adjust to market conditions, causing steep increases. The poll also showed that homeowners expecting to buy soon are worrying the most; 59 percent think now is a good time to buy; half think this is a very tough time for first-time buyers. To educate consumers about the value of homeownership visit the National Association of REALTORS® new website – www.housingmarketfacts.com. You can also download GBAR’s new web banners promoting the value of homeownership at www.gbar.org. On a similar note, the government and lending industry are taking aim at “walk-away” homeowners who stop making payments and send the keys back to the lender. Unless there are extenuating circumstances, such borrowers are not eligible for a mortgage through Fannie Mae for five years. Under such circumstances, the prohibition is three years. If a person went through foreclosure during that time they must put at least 10 percent down and have a FICO credit score of at least 680 to qualify for a Fannie Mae loan. Legislation was enacted last year that allowed a portion of homeowner’s principal debt to be forgiven upon new terms being negotiated with the lender to escape tax liability for the amount forgiven. On the other hand, “walk-away” homeowners do not have that luxury and the Internal Revenue Service may demand taxes on the unpaid balance. The Office of Massachusetts Attorney General Martha Coakley and the Massachusetts Association of REALTORS® released a brochure this month entitled “Understanding Home Financing and Avoiding Foreclosure,” which can be downloaded online. The foreclosure field guide produced by the National Association of REALTORS® is another useful, educational tool for both you and your clients. |
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A silent auction will also be taking place throughout the event with proceeds going to the Massachusetts Coalition for the Homeless. If you’d like to donate an item to the auction, contact Kristin Langone at 617-399-7851 or klangone@gbreb.com. Tickets are $80 which includes drinks, dinner, entertainment and valet parking. To register online click here. Finally, nominations for the GBAR awards end May 15. We’ll be presenting the REALTOR® of the Year Award and the Andrew F. Hickey Distinguished Service Award and the first ever Good Neighbor Award. Contact Christina Meehan at 617-399-7840 or cmeehan@gbreb.com.
Schedule Sponsorship opportunities are also available. |
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Vacation-home sales dropped 30.6 percent to 740,000 in 2007 from a record 1.07 million in 2006, while investment-home sales fell 18.1 percent to 1.35 million in 2007 compared with 1.65 million in 2006. The declines may be attributed to uncertain economic times as vacation and investment homes are seen as discretionary purchaser causing buyers to pull back from buying big ticket items. The turmoil in the mortgage market also caused some potential second-home buyers to put the buying decision on hold. Of those who did buy second homes, 65 percent of vacation home purchasers and 71 percent of investment home purchases bought existing homes, while the remainder purchased new homes. Also, 59 percent of vacation homes purchased last year were detached single-family homes, 29 percent condominiums, seven percent townhouses or row houses and five percent other. Numbers for 2007 are much different from 2006 when 67 percent of vacation homes purchased were single-family detached homes and 21 percent condominiums. Sixty-one percent of investment homes purchased in 2007 were detached single-family homes, 20 percent condos, 11 percent townhouses or row houses and eight percent other. These numbers are not noticeably different from 2006. Characteristically, second-home buyers are older than homebuyers of primary residences and have higher incomes. The typical vacation-home buyer in 2007 was 46-years-old, had a median household income of $99,100. Investment-home buyers had a median age of 42 with an earned income of $92,900. Finally, eight in 10 second-home buyers consider now a good time to invest in real estate, compared to 59 percent of primary residence buyers. Forty-four percent of vacation-home buyers and 57 percent of investment buyers said they were likely to purchase another property in two years. To order the 2007 Investment and Vacation Home Buyers Survey call 800-874-6500 or order online at www.realtor.org/newresearch. Member price is $50. |
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To view GBAR’s ads and/or to download them to your website, click here. |
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The integration speeds the creation of transaction files and electronic contracts by eliminating the duplicate data entry, as real estate professionals will now be able to import buyer, seller and other transaction participant data from Top Producer for use in Instanet Forms. Real estate professionals will also be able to send task, event and appointment information from Instanet’s TransactionDesk to Top Producer. This connectivity enables them to view transaction-related tasks and appointments in Top Producer, as well as in mobile devices that are synchronized with Top Producer. For questions call Instanet Customer Service at 1-800-668-8768. |
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In addition to learning about the new components of FHA lending, you will also gain a greater understanding of how FHA programs might differ from other mortgage programs available in today’s marketplace, and why they might be better solutions for your clients. To sign up for this program visit gbar.org. |
