“The share of borrowers who are falling seriously behind on loans backed by the Federal Housing Administration jumped by more than a third in the past year, foreshadowing a crush of foreclosures that could further buffet an agency vital to the housing market’s recovery.

About 9.1 percent of FHA borrowers had missed at least three payments as of December, up from 6.5 percent a year ago, the agency’s figures show.

Although the FHA’s default rate has been climbing for months and eating into the agency’s cash, the latest figures show that the FHA’s woes are getting worse even as the housing market shows signs of improvement. The problems are rooted in FHA mortgages made in 2007 and 2008. Those loans are now maturing into their worst years because failures most often occur two to three years after a mortgage is made.

If the trend continues and the FHA’s cash reserves are exhausted, the federal government would automatically use taxpayer money to cover the losses — a first for the agency, which has always used the fees it charges borrowers to pay for its losses…”

Read the full article: http://www.washingtonpost.com/wp-dyn/content/article/2010/02/01/AR2010020103527_pf.html

“A new survey reveals that savvy consumers cashing in on the new and improved homebuyer tax credit are helping fuel economic recovery.

The vast majority of current homeowners say they would spend the expanded version of the homebuyer tax credit on repaying existing debts, home improvements, savings and investments and household expenses, according to a Coldwell Banker survey of 1,000 homeowners…”

Read the full article: http://realtytimes.com/rtpages/20100128_taxcred.htm

“The Obama administration is trying to simplify the paperwork for people seeking lower home-mortgage payments in an effort to avert more foreclosures.

The Treasury outlined new guidelines Thursday aimed at streamlining requirements for mortgage relief under the administration’s Home Affordable Modification Program launched a year ago.

The guidelines specify that borrowers must provide three items to loan servicers, the companies that collect mortgage payments: a form requesting a loan modification, authorization for the servicer to seek tax information from the Internal Revenue Service and evidence of income, such as two recent pay stubs. Previously, some servicers have asked borrowers to fax in copies of their tax returns. Borrowers sometimes couldn’t find the needed tax forms or complained that servicers repeatedly lost material faxed to them…”

Read the full article: http://online.wsj.com/article/SB10001424052748704878904575031321628902414.html

“Chandler is preparing to spend millions of dollars trying to shore up one of its most sickly economic indicators, the home foreclosure rate, which surged by 95 percent over the last year.

In the coming weeks, the City Council is expected to consider expanding an eight-month-old program to buy up bank-owned properties and renovate them for sale as affordable housing. The council this month also passed a resolution declaring the entire city an “economic recovery zone,” making it eligible to issue $8 million in bonds to pay for infrastructure projects like roads and drainage, meant to create jobs and stimulate the local economy.

Dennis Strachota, the city’s management services director, said Chandler’s home foreclosure rate rose 95 percent from the third quarter of 2008 to the fourth quarter of 2009. Similarly, unemployment increased from 4.3 percent in October 2008 to 6.6 percent last October, and Chandler’s poverty rate now stands at 7.3 percent, he said…”

Read the full article: http://www.eastvalleytribune.com/story/149953

“AAR asked market watchers in four regions (Maricopa County, White Mountain, Tucson Metro Area, Flagstaff) around the state to review recent housing data and provide forecasts for the year to come. Each region—and each neighborhood—is moving through the cycle of lower sales prices, higher inventory and distressed property supply at its own rate. But all are feeling the effects of the recession…”

Read the full article: http://www.aaronline.com/AZR/Dec/09Market2010.aspx

“Existing-home sales rose again in November as first-time buyers rushed to close sales before the original Nov. 30 deadline for the recently extended and expanded tax credit, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.

Lawrence Yun, NAR chief economist, said the rise was expected. ‘This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,’ he said. ‘We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline…’”

Read the full article: http://www.realtor.org/RMODaily.nsf/pages/News2009122201?OpenDocument

“As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream…”

Read the article: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit?lid=ronav0019

“Home-foreclosure activity has spilled across every geographic and socioeconomic border this year, proving that no community was too cautious, clever or well-funded to remain unscathed.

Subprime lending gave the home-foreclosure crisis its initial push, but the problem could not have reached existing proportions without feeding on a host of broader economic problems, according to real-estate experts responding to the latest Valley Home Values data, provided by Information Market.

‘It has nothing to do with the value of the home,’ said Mike Wasmann, president of the Arizona Association of Realtors. ‘It has to do with people not having any money…’”

Read the article: http://www.azcentral.com/business/realestate/articles/2009/10/11/20091011biz-vhv-main1011.html

“Existing-home sales in August gave back some of their strong gain in July but remain above year-ago levels, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 2.7 percent to a seasonally adjusted annual rate¹ of 5.10 million units in August from a pace of 5.24 million in July, but remain 3.4 percent above the 4.93 million-unit level in August 2008. In the previous four months, sales had risen a total of 15.2 percent…”

Read the article: http://www.realtor.org/press_room/news_releases/2009/09/ease_four

“Perhaps a client wants your help leasing a property while she rides out the market. Maybe you have a relationship with a builder who is sitting on unsold inventory. You might even be doing a favor for an out-of-town client by paying a bill or adding chemicals to the pool. Suddenly you’ve dipped your toe in the property management waters. Before you dive right in, there are some important factors you need to consider…”

Read the article: http://www.aaronline.com/documents/AZRPropMgmt.aspx