I'm In Love With Montana
Relief for Homeowners Affected by Coronavirus
I hope you're staying hydrated, well-rested, and you're exercising moderately every day! Whew. It's a tall order, but it's good work.
Thought you might like to know of some resources available to you if you have the need. If I've omitted any resources that you know of, feel free to get in touch w me and I'll pass along the info. (Extra points for you if you call me: I'm contact-starved, and I'd love to hear your voice!)
The Federal Housing Financing Agency (FHFA) and Housing and Urban Development (HUD) have announced a moratorium on foreclosures and evictions for at least the next 60 days. Here's a link: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_042 . Homeowners who are struggling financially as a result of coronavirus may postpone their mortgage payments for up to 12 months. Fannie Mae and Freddie Mac and their servicers have been instructed to be proactive in providing assistance to homeowners and to provide forbearance on their loans. Mortgage payments will be paused with no impact to credit. Here are some links to Fannie Mae and Freddie Mac assistance sites: https://www.knowyouroptions.com/covid19assistance and https://myhome.freddiemac.com/mortgage-help/contact.html
Additionally banks have posted their own policies and ways for consumers to contact them directly for assistance. Here's more info:
Bank of America: https://about.bankofamerica.com/promo/assistance/latest-updates-from-bank-of-america-coronavirus; Capital One: https://www.capitalone.com/coronavirus/; Chase Bank: https://www.chase.com/digital/resources/coronavirus; Truist Bank: https://www.truist.com/coronavirus-response/banking-solutions; US Bank: https://www.usbank.com/splash/covid-19.html; Wells Fargo: https://newsroom.wf.com/press-release/corporate-and-financial/wells-fargo-announces-aid-customers-and-communities-impacted; Mr. Cooper (mortgage servicer): https://www.mrcooper.com/blog/2020/03/20/coronavirus/ and Flagstar (mortgage servicer): https://www.flagstar.com/promo/update.html.
The Consumer Financial Protection Bureau (CFPB) is urging consumers to protect their credit during this time. https://www.consumerfinance.gov/about-us/blog/protecting-your-credit-during-coronavirus-pandemic/. This site is a good source of info: they have a number of resources focused on short-term and long-term financial protection -- for instance how to manage bill-paying in the near future, how to manage student loans, and how to negotiate debt collections.
For the latest updates and public health policies, here's a link to the Centers for Disease Control's COVID-19 site: https://www.cdc.gov/coronavirus/2019-ncov/index.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2Findex.html. And you might also be interested in checking in to the EPA's website concerning coronavirus. The Good News is at the current time they haven't found the
Are We About to See a Wave of COVID-19 Foreclosures?
Are We About to See a New Wave of Foreclosures?
With all of the havoc being caused by COVID-19, many are concerned we may see a new wave of foreclosures. Restaurants, airlines, hotels, and many other industries are furloughing workers or dramatically cutting their hours. Without a job, many homeowners are wondering how they’ll be able to afford their mortgage payments.
In spite of this, there are actually many reasons we won’t see a surge in the number of foreclosures like we did during the housing crash over ten years ago. Here are just a few of those reasons:
The Government Learned its Lesson the Last Time
During the previous housing crash, the government was slow to recognize the challenges homeowners were having and waited too long to grant relief. Today, action is being taken swiftly. Just this week:
- The Federal Housing Administration indicated it is enacting an “immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages” for the next 60 days.
- The Federal Housing Finance Agency announced it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for “at least 60 days.”
Homeowners Learned their Lesson the Last Time
When the housing market was going strong in the early 2000s, homeowners gained a tremendous amount of equity in their homes. Many began to tap into that equity. Some started to use their homes as ATM machines to purchase luxury items like cars, jet-skis, and lavish vacations. When prices dipped, many found themselves in a negative equity situation (where the mortgage was greater than the value of their homes). Some just walked away, leaving the banks with no other option but to foreclose on their properties.
Today, the home equity situation in America is vastly different. From 2005-2007, homeowners cashed out $824 billion worth of home equity by refinancing. In the last three years, they cashed out only $232 billion, less than one-third of that amount. That has led to:
- 37% of homes in America having no mortgage at all
- Of the remaining 63%, more than 1 in 4 having over 50% equity
Solid Reasons It'll Pay to Put Your Home on the Market Early in 2018
Reasons It'll Pay to Market Your Home Early in 2018:
It's been nearly a decade since the Great Recession delivered the worst housing crash in modern memory. But these days, the fallout feels squarely in the rearview mirror. Markets have bounced back with fervor, and confidence is skyrocketing: From Charlotte, NC, to Stockton, CA—homes are flying off the market at record prices, and buyers are still clamoring to get in the game.
One thing is clear: It's a great time to be a seller.
"We’ve seen two or three years of what could be considered unsustainable levels of price appreciation, as well as an inventory shortage that resulted in a record low number of homes for sale across the country," says Javier Vivas, director of economic research for realtor.com®.
In other words: Today's buyers are exhausted. And in many cases that means they're willing to sacrifice to get a toehold in the market.
Sounds like the stuff of seller's dreams, right? But know this: If you plan to sell in 2018—and you want to unload your home quickly and for maximum money—your window of opportunity may be rapidly narrowing. Here's why you should get moving ASAP.
1. Interest rates are still historically low, drawing buyers into the market
We may not be enjoying the rock-bottom interest rates of three years ago, but today's 30-year mortgage rates—hovering just above 4%—are still at a historic low.
That means the getting's still good for buyers—and, subsequently, for sellers looking to unload their homes.
But rates are on the rise, and it's widely predicted that they'll reach 5% before year's end. Buyers know that the longer they wait to buy, the more expensive it will be.
That means you'd be wise to list your home earlier in the year before more rate hikes kick in. Not only will you capture the market of buyers hurrying to close a deal, but if you're buying after you sell, you'll also benefit from those lower rates.
2. Inventory remains tight—and demand high
Simply put, there are more buyers than available homes—particularly in red-hot markets where land is scarce and it isn't cheap to build.
Awesome Holiday Lights Belgrade, MT
Couldn't resist showing you what I saw on my way home the other night. Love my little hometown! Belgrade (Belgreat!), Montana.
Reassuring News for the Gun-Shy: It's Not a Bubble.
Housing Prices are NOT Heading for Another Crash
As home values continue to increase at levels greater than historic norms, some are concerned that we are heading for another crash like the one we experienced ten years ago. We recently explained that the lenient lending standards of the previous decade (which created false demand) no longer exist. But what about prices?
Are prices appreciating at the same rate that they were prior to the crash of 2006-2008? Let’s look at the numbers as reported by Freddie Mac:
The levels of appreciation we have experienced over the last four years aren’t anywhere near the levels that were reached in the four years prior to last decade’s crash.
We must also realize that, to a degree, the current run-up in prices is the market trying to catch up after a crash that dramatically dropped prices for five years.
Bottom Line
Prices are appreciating at levels greater than historic norms. However, we are not at the levels that led to the housing bubble and bust.
If you know of someone who's looking to buy or sell a home, please have them get in touch with me! I’ll be happy to follow up and take great care of them.