FHA makes it easier to buy after short sale or foreclosure

The Federal Housing Administration made it a lot easier this week for victims of foreclosure or short sale to buy a home again.

Now borrowers who meet certain requirements will only need to wait 1 year after bankruptcy, foreclosure or short sale before they may qualify for a FHA-backed loan.

The waiting period had been 2 years after the completion of a bankruptcy and 3 years after a foreclosure or short sale (For complete details on this story reported in the Chicago Tribune:  http://ow.ly/oeCa6).

The easing of requirements is great news for many in the Inland Empire who were hit hard by the recession, lost their jobs and then their homes.

Among the many stipulations, borrowers must be able to show their household income fell by 20 percent or more for at least six months and was tied to unemployment or another hardship beyond their control.  According to reports, they must also have completed at least one hour of approved housing counseling and can show they have had 12 months of on-time housing payments.

If you know someone who may qualify and wants more information, please have them contact us.  We'll help connect them with a local mortgage loan officer who can help them.

Free seminar for home buyers and sellers

Changing market conditions have many buyers and sellers wondering how they can time the market so they get the best value for their money.  We are proud to work with local real estate professionals including mortgage brokers, title, escrow and home warranty who share our goal to educate buyers and sellers in Redlands, Highland and Yucaipa.

RE cycle sees micro burst

Hosted a home seller seminar on August 7.  About 40 people attended. There were many questions about current market conditions. Mainly people want to know how long the sellers market will last. Conditions during the first four months of this year have been unusual.

In Orange County prices are up 30% home sales are skyrocketing. Normally we see a more gradual recovery but this year the trend went vertical. Now with more homes listed for sale buyers have more choices. Prices are moderating. The OC is in transition from strong sellers market to one that still favors sellers, but many homes are taking longer to sell.

In the Inland Empire homes are selling quickly.  Low listing volume has sellers in a strong position. Waiting to see more listings hit the market.

Will prices continue to rise? Some of that depends on the number of homes for sale and what happens with interest rates.

We're predicting home prices will increase more gradually for the rest of this year, probably more in the 10% range.  Sellers can wait to sell so they can get more money.  But if they are looking to sell and buy it may make more sense to act now to take advantage of the lower prices and interest rates.

A more gradual rise in prices is good news for buyers and sellers. Move-up buyers and empty-nesters can sell their home quickly and for more money then they could six months ago. First-time buyers can still get a good deal on a home and because of low interest rates have a relatively low monthly payment.

Of course, all of this is based on a continued improvement to employment and the economy. Let's hope for the best.

More new listings

The number of new listings in Redlands, Highland and Yucaipa was up sharply in July as more sellers decided to put their homes on the market.

That's good news for many home buyers who have found the pickings slim for most of this year.

The number of homes for sale still pales in comparison to 2011 when there were many more listings than there were buyers.

Here the market conditions still give great advantage to the seller.  Because of scarcity in many desirable neighborhoods many homes are selling quickly, for full price and without concessions.

However, nearby in Orange County the strong seller's market has already given way to a more balanced scenario.  A dramatic increase in homes listed for sale gives buyers more choices.  When that happens you can expect some price reductions, longer days to sell and buyers asking for help with closing costs.