Twin Cities Real Estate / Foreclosure News

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FHA EXTENDS 'ANTI-FLIPPING WAIVER' TO HELP STABILIZE HOUSING MARKET
January 30, 2011

Measure continues effort to boost home values and accelerate resale of vacant properties:

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Federal Housing Administration (FHA) Commissioner David H. Stevens today extended FHA’s temporary waiver of the agency’s ‘anti-flipping rule.’ The extension announced today is intended to accelerate the resale of foreclosed upon homes in neighborhoods struggling to overcome possible property abandonment and blight.

With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. Early last year, FHA temporarily waived this regulation through January 31, 2011. FHA today posted a notice extending this waiver through the remainder of 2011. This action will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

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AFFORDABILITY OF HOUSING IN TWIN CITIES
January 14, 2011

Low mortgage rates coupled with low prices and plenty of supply have created one of the most favorable buying environments in generations,” said Jennifer Snyder, president of the Saint Paul Area Association of REALTORS®. “Foreclosures, short sales and lower-priced homes continue to be key lures for buyers.”
The October 2010 Housing Affordability Index of 220 was the highest level on record—going back at least several decades. This means that the median family income was 220% of the necessary income to qualify for the median-priced home using a 20 percent downpayment and 30-year fixed mortgage.
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TWIN CITIES REAL ESTATE 2010 BY THE NUMBERS
January 14, 2011

• 82,127 new homes introduced to the marketplace, down 1.4 percent from 2009 and the lowest level in eight years.
• 37,608 homes sold, down 16.8 percent from 2009 levels and also the lowest level seen in eight years.
• $169,900 median sales price, up 2.3 percent from 2009.

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MINNESOTA OFFERS $2 MILLION IN ENERGY SAVER REBATES
September 30, 2010

An additional $2 million in Energy Saver Rebates is available for homeowners who install eligible energy-saving home improvements. These improvements must be financed using a Fix-up Fund loan, which allows homeowners finance the cost of making energy efficient upgrades.

Rebates up to $10,000 are available for application on a first-come, first-served basis. More information and an Energy Saver Rebate application are available at www.mnhousing.gov. Or call Minnesota Housing at 651-296-8215 or 800-710-8871.
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OBAMA ADMINISTRATION AWARDS ADDITIONAL $1 BILLION TO STABILIZE NEIGHBORHOODS HARD-HIT BY FORECLOSURE
September 13, 2010

U.S. Housing and Urban Development Secretary Shaun Donovan awarded an additional $1 billion in funding to all states along with a number of counties and local communities struggling to reverse the effects of the foreclosure crisis. The grants announced today represent a third round of funding through HUD’s Neighborhood Stabilization Program (NSP) and will provide targeted emergency assistance to state and local governments to acquire, redevelop or demolish foreclosed properties.

The funding announced today is provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act. To date, there have been two other rounds of NSP funding: the Housing and Economic Recovery Act of 2008 (HERA) provided $3.92 billion and the American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated an additional $2 billion. Like those earlier rounds of NSP grants, these targeted funds will be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values. Today, 95 cents of every dollar from the first round of NSP funding is obligated—and is in use by communities, buying up and renovating homes, and creating jobs.

State and local governments can use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to moderate-income home buyers (household incomes do not exceed 120% of area median income). In addition, these grantees can create “land banks” to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. HUD will issue an NSP3 guidance notice in the next few weeks to assist grantees in designing their programs and applying for funds.

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MORTGAGE RATES HIT NEW LOW
August 3, 2010

The 4.5% fixed-rate mortgage is here, although more than 14 months late. That magic number, or a close approximation, was reached recently, when Freddie Mac reported a 30-year rate of 4.54%. The possibility first arose in early 2009, when the government began mass-purchasing mortgages from Fannie Mae and Freddie Mac to prop up housing. Just about everyone predicted the rates would hit what builders and real estate agents call a “sweet spot” in a few months, and the housing recovery would begin, especially if consumer confidence had recovered to prerecession levels as well.
But what gets people buying again? The answer is confidence—confidence in the value not falling and confidence they’ll still have a job. Even if behind schedule, the 4.5% rate has arrived, but in an environment that buyers perceive as anything but inviting. Consumer confidence fell again in July mainly due to jobs and sagging real estate values.

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REAL ESTATE SALES GROW, PRICES DROP IN FIRST HALF OF 2010
July 12, 2010
 
Real estate sales have grown rapidly in the first half of 2010 and prices have continued to drop, with the rate of decline picking up in June, according to statistics released today.

Single family home sales grew 32 percent in the first half of 2010, when compared to the same period in 2009 and condo sales rose 38 percent, according to the statistics gathered from the Multiple Listing Service. The median price - the price at which half sold for less and half sold for more - of single family homes dropped 5 percent to $170,000 in the first half of the year compared with the same period last year. The median price of condos fell 6 percent to $122,000 in the first half of the year.

GRANT AVAILABLE FOR MN FORECLOSED HOWEOWNERS
May 11, 2010

A grant of up to $3500 is available for people who have lost their home to a foreclosure and need some cash to help with the transition of moving on. This is only available to metro area residents in the Twin Cities. The Target Foundation put up most of the funds and all monies are available on a first come-first served basis and is for relocation assistance. Go to http://www.Hocmn.org
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MILITARY BUYERS STILL HAVE TIME TO USE TAX CREDIT
May 6, 2010

While the tax credit has expired for most buyers, military families should know that they are still eligible for the $8000 first time home buyer’s credit or the $6500 credit for current homeowners  if they meet certain criteria. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010. They have until April 30, 2011, to sign a contract and until June 30, 2011, to close on the new house.

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HOMEOWNERS ASSISTANCE PROGRAM - DEPT. OF DEFENSE
March 19, 2010

The Department of Defense (DOD) is proud to offer the Homeowners Assistance Program (HAP) to eligible service members and federal civilian, including non-appropriated fund, employees. The program is authorized by law, and administered by the US Army Corps of Engineers (USACE) to assist eligible homeowners who face financial loss when selling their primary residence homes in areas where real estate values have declined because of a base closure or realignment announcement.

The American Recovery and Reinvestment Act of 2009 (ARRA) temporarily expands the HAP to assist service members and DOD employees who are wounded, injured or become ill when deployed, surviving spouses of service members or DOD employees killed or died of wounds while deployed, service member and civilian employees assigned to BRAC 05 organizations, and service members required to permanently relocate during the home mortgage crisis.  http://hap.usace.army.mil/
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RYBAK, COLEMAN ANNOUNCE $41m FOR FIRST-TIME HOMEBUYERS
February 9, 2010

Minneapolis Mayor R.T. Rybak and St. Paul Mayor Chris Coleman on Monday announced $41 million in new funding for first-time homebuyers to purchase homes in both cities.

The funding comes available through the CityLiving Program, which offers below-market interest rates on mortgages as well as downpayment and closing-cost assistance. CityLiving Program is part of the HFA Initiative, a program which Fannie Mae and Freddie Mac have purchased bonds under an agreement with the Treasury and the Federal Housing Finance Agency.

In order to quality for the funding, homebuyers' household income cannot exceed $92,290 and the purchase price (for a single-family home) can't be greater than $276,870.

In addition, each city has $500,000 available for assistance with downpayments and closing costs.  Go to: http://mplscitylivinginfo.com/