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Student loans will be more difficult to qualify for a mortgage after June 29th.

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If you have student loans, or you know someone with student loans, this is for you.

It will be more difficult for those with student loans to qualify for a mortgage after June 29th.

In short, low or deferred payments on an income-adjusted payback plan are currently not counted against you. After June 29th, that’s not the case anymore.

Lenders must use your real repayment amount, regardless if you can afford it, after June 29th, which may knock many people – especially Millennials – out of qualifying for a mortgage.

If this applies to you, contact me to find out how much home you can afford here in Pierce County before this goes to effect. It may raise the payment on your home if you qualify after June 29th.

I’ll put you in touch with a trusted lender who will get your paperwork done quickly.

Hurry. June 29th is the last day to register a FHA case number to fall under the current, more favorable student loan guidelines for mortgages.

Call me at 253-307-1988 or just reply to this email if you have any questions.

You can also search all homes for sale in Pierce County on my website, or if you’re thinking of selling your home, you can enter your property address here to find out what it’s worth based on recent home sale prices.

I just want to keep you updated on this change since I know it will affect many.

I’ll have an update for you in the coming weeks with what’s happening with regard to home prices in Pierce County this summer.

If you’re thinking of selling your home, we may be able to get a jump on the market. Let me know.

Your Realtor for life,

Janet Hegseth

Keller Williams

 

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Give Your Living Room Timeless Character With Thrifty Finds

Your living room is where you gather with friends and family, so the space should be both cozy and stylish. Achieve big style on a small budget with vintage pieces found at flea markets, thrift stores and yard sales.

White Slipcover

Beauty Is More Than Skin Deep

It’s not uncommon to find brand-name, well-built, sturdy sofas that are in great condition but have an upholstery fabric that is stained or doesn’t work with your decor. Premade slipcovers have come a long way and can be an economical alternative to buying a new sofa or having a piece reupholstered. Slipcovers can also be made out of inexpensive painter’s drop cloths for those handy with a sewing machine.

Recycled Study

Pretty and Practical

For slightly awkward or unused areas in a corner or under a window, or for a space that transitions into another room, use a petite secretary for paying bills, completing kids’ homework assignments or working on a laptop. Small chests of drawers or drop-leaf tables are also great multifunctional pieces that don’t take up too much space.

Old Chair

Before: Good Bones

When shopping for used upholstered pieces, always give the upholstery the “sniff test.” Smoke and pet odors can be difficult to remove, and padding is costly to replace. Look for pieces with sturdy solid wood frames, soft padding and foam, and nice lines. Don’t be afraid to lift up cushions and test out the piece before you buy. A $15 chair isn’t a bargain if it ends up in the trash a few weeks later.

Old Chair Restored

After: Found Fabrics

Think beyond the fabric store when looking for upholstery fabric. Vintage and antique grain sacks make for hardwearing, durable and unique upholstery material. Wash them in the washer to eliminate odors or stains, then line dry prior to use.

Coffee Table

Coffee Table Talk

The coffee table can be one of the most versatile pieces in a living room. Think beyond the traditional and look for something unexpected. A higher table can be a great place to pull up a couple of chairs for a game of cards, an old steamer trunk provides great storage and loads of charm, and an industrial cart is a great conversation piece and can be wheeled around and used where needed.

Dresser

Shop for Storage With an Open Mind

Don’t look at furniture strictly for how it’s meant to be used; rather, think about how it could be used. Dressers and buffets make great stands for flat-screen TVs or stylish storage for toys and games. Wardrobes can also stand in for storage of books, movies, and extra throws and pillows.

View more here: http://www.hgtv.com/living-rooms/give-your-living-room-timeless-character-with-thrifty-finds/pictures/index.html

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Fewer Than 1% of New Loans Troubled

For the first time since May of 2007, fewer than 1% of new loans are classified as ‘problem’ mortgages, according to a new report from Lender Processing Services.

The mortgage analytics firm paints a picture of fewer troubled loans and even says with new problem loans in March coming in at 0.84%, the rate is close to pre-crisis levels exhibited in 2004-2005 when only 0.55% of loans were in some stage of distress.

Still to this day, underwater borrowers are more likely to default than mortgage holders with equity, and those with loan-to-value ratios between 100%-to-110% are defaulting at more than twice the national average (1.9%).

Borrowers who are 50% underwater, or carrying LTVs of 150% or higher, default at a rate that is five times the national average, while those with equity outperform the national average exhibiting a problem loan rate of just 0.6%—on par with pre-crisis levels.

And with home prices consistently rising over the course of the past year, the number of loans underwater or with LTVs over 100% has dropped by 41% between January 2012 and January 2013.

In 2011 at the peak of the underwater crisis, 17 million homes were in negative equity.

Today, only 9 million loans are in this state, LPS said.

About 17.9% of loans in the U.S. continue to have LTVs greater than 100%, which means 80% of borrowers are exhibiting new loan problem rates that reflect what LPS calls ‘normal market’ years.

LPS concluded that the total U.S. loan delinquency rate for March hit 6.59%, and the month-over-month change in the delinquency rate showed it falling 3.13%.

Overall, the total U.S. foreclosure presale inventory rate hovered at 3.37%, while the month-over-month change in the foreclosure pre-sale inventory rate fell 0.41%.

States with the highest percentage of non-current loans include Florida, New Jersey, Mississippi, Nevada and New York.

Meanwhile, those with the lowest percent of delinquent mortgages include Montana, Alaska, Wyoming, South Dakota and North Dakota.

Source: http://www.housingwire.com/news/2013/05/06/fewer-1-new-loans-troubled

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Not for sale? Not necessarily a problem.

May Buying Advice: Choked by a weak housing inventory, some agents are coaxing homeowners to the market with a different approach.

Frustrated with the lack of housing inventory, homebuyers in many markets are taking matters into their own hands by sending letters to homeowners and asking them to sell. In this month’s Buying Advice, we’ll consider this direct approach and its effectiveness. We’ll also check in with the latest housing numbers and dish out some tips for first-time buyers who are insuring a home.

Wanted: Sellers
After about nine months of unsuccessful home searching in the historic Olde Worthington neighborhood of Columbus, Ohio, real-estate agent Anne DeVoe’s clients were frustrated. No homes were coming up for the couple in the small, 10-block neighborhood.

So she suggested they make a wish list.

Not for sale? Not necessarily a problem (© Rob Daly/Getty Images)

“I asked them to drive around and identify the houses they were interested in,” says DeVoe of Coldwell Banker King Thompson. She drafted letters to the owners of 35 homes, asking if they would consider selling. Two were interested. After looking at both houses, the couple put in an offer on one of them, a two-story Colonial. The deal is expected to close this month.

“I made the same suggestion last fall, and it was a success,” DeVoe says. “It’s great for someone who wants a particular street or neighborhood.”

Jeff Beggins of Tampa, Fla.-based Century 21 Beggins says he agrees that sellers are few and far between. He says many owners who were once underwater still mistakenly believe that property values are lower than they are. Others have seen the gains and are holding out for more appreciation, despite today’s low mortgage rates. Either way, there are far more buyers than homes to buy, he says.

To generate some listings, Beggins and his team have begun courting homeowners in coveted neighborhoods, mailing monthly newsletters with recent sale prices and current listings, as well as an offer of a free home-price analysis. In many areas, his agents are even going door to door to solicit homes to sell.

“Our message is simple: Our South Tampa market is hot. Interest rates are low. It’s a great time to move up, move down or just move around” to a new area, he says.

The appeal has had limited success, he says, but it’s worth it when an agent walks away with two or three new listings.

Suzanne Zinn Mueller, chief marketing officer for CB Bain in the Seattle area, says a letter or postcard from a local agent can be just the reassurance a would-be seller needs that there are enough buyers waiting in the wings to ensure a speedy home sale. “One of the biggest fears of sellers tends to be concern over the hassle of selling,” she says. “How long will it be on the market? How long do I have to keep my house looking perfect?”

These days, she says, this shouldn’t be a concern for most Seattleites. As of April 25, the absorption rate for homes in King County, Wash., was 105%. For every home sold, only 0.95 of a home came on the market — a far cry from the 30% to 40% absorption rate that is typical in that market.

Nationally, the inventory of for-sale homes is down 17% from last year’s levels, according to the National Association of Realtors.

Hence the flurry of agent letters hitting mailboxes around the country. Indeed, in DeVoe’s case, her letter reportedly wasn’t the only one the seller received. But her timing was spot on: Both of the owners who responded had recently contacted agents and were thinking of listing their homes this summer. Her letter was enough to speed up those plans.

Of course, agents say, the letters have more luck if they are targeted to specific types of homes, specific houses or blocks within neighborhoods. Mass mailings haven’t directly brought in listings for Kim Drusch of Century 21 Award in San Diego. But they do get her name out there as an agent, she says.

If you keep coming up empty in your search, agents say, maybe your agent should try hitting the streets for you. If he’s not willing: “Find a good, aggressive agent who is willing to go above and beyond for you,” Beggins says.

Source: http://realestate.msn.com/not-for-sale-not-necessarily-a-problem

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HUD to Sell 40,000 Distressed Loans in 2013

In an effort to address the country’s shadow inventory and relieve high-foreclosure areas, the U.S. Department of Housing and Urban Development will sell thousands of severely delinquent mortgage loans insured by the Federal Housing Administration.Throughout the summer ahead, HUD will sell approximately 20,000 distressed loans via the Distressed Asset Stabilization Program in an attempt to increase recoveries to FHA’s Mutual Mortgage Insurance Fund from non-performing FHA-insured loans, while contributing to stabilization and recovery in communities that took the hardest hit during the housing recovery.

The offerings by HUD will be conducted via two auctions. The auction on June 26th will focus on selling approximately 15,000 notes through ‘national pools,’ while the one on June 10th will offer approximately 5,000 notes through Neighborhood Stabilization Outcome pools.

HUD is growing the use of single-family loan sales via a competitive bidding process in which loan pools are sold to the highest bidder. This includes nonprofit and community-based organizations.

“We’ve seen a tremendous response to our note sales which allow us to support particular areas of our country hard-hit by foreclosures while improving outcomes for FHA,” said FHA Commissioner Carol Galante.

Galante added, “These auctions allow us to continue stabilizing hard-hit housing markets and to improve FHA’s overall financial position at the same time.”

Severely delinquent FHA-insured loans in the program are sold competitively at a price determined by the market, which is generally below the outstanding principal balance.

After the purchasing of the loan, foreclosure is postponed for a minimum of six extra months. During this time, the new servicer can work with the borrower in a effort to find an affordable solution so foreclosure can be avoided.

By purchasing these loans at market rate — which is generally below the outstanding principal balance — investors are given the incentive to help the borrower steer clear of foreclosure.

HUD anticipates it will sell more than 40,000 distressed loans in 2013 through quarterly sales that reduce FHA’s total claims costs and raise recovery on losses to FHA’s Mutual Mortgage Insurance Fund.

In March 2012, HUD sold more than 16,000 seriously delinquent mortgages.

Source: http://www.housingwire.com/news/2013/05/03/hud-sell-40000-distressed-loans-2013