GLVAR members will learn how private lending programs, such as Premier Mortgage Lendings Another Chance Home Loan Program, may help reopen the doors of homeownership for Southern Nevadans who have experienced a short sale or foreclosure.

Some Nevadans who want to purchase a home may feel as if they cant for years to come because of a financial downturn, foreclosure or short sale. However, these potential buyers may be able to take advantage of todays amazingly low housing prices and buy a home of their own through private lending programs like Premier Mortgage Lendings Another Chance Home Loan Program, Piette said.

According to Piette, through Another Chance, private and institutional portfolio lenders offer home loans for the purchase of residential properties.

Full-documentation underwriting guidelines are followed and at least a 20 percent down payment is required. These loans carry interest rates that are typically higher than traditional mortgage rates.

I am excited to present this seminar to Realtors so that they may be able to pass the information along to their clients. I believe that in order to get Nevadas economy rolling again, we have to fix housing. I believe that getting people who used to be homeowners back into homes of their own again is a big step in that direction, Piette said. I always encourage potential homebuyers who are interested in buying a home to participate in the mortgage prequalification, which is offered by many lenders and is complimentary at Premier Mortgage.

Also joining Piette at this weeks seminar is Jamie Cogburn of Cogburn Law Offices, who will discuss short sales and contingent liability.

For details about the program, mortgage prequalification or to schedule an appointment, call 485-6600 or visit AnotherChanceNevada.com.

Premier Mortgage Lending (NMLS 393282) is located at 8689 W. Sahara Ave., No. 100 and is a member of the Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Interested parties must be at least 18 years of age and a resident of Orchard City for no less than one year. Please send a letter of interest to the Orchard City Town Hall at 9661 2100 Road, Austin, CO 81410. Letters of intent must be received no later than 4:30 pm April 2. The board of trustees will make their selection on April 11.

For more information, call 835-3337.

Mortgage rates inched higher this week after months of record lows, according to the latest Freddie Mac Primary Mortgage Market Survey (PMMS) released Thursday.

Frank Nothaft, vice president and chief economist for Freddie Mac, attributed the rise to Januarys positive employment data.

A strong January employment report added upward pressure to mortgage rates this week, Nothaft said. The economy gained 243,000 jobs last month, the largest monthly gain since April 2011, and the unemployment rate fell to 8.3 percent, which was the lowest since February 2009.

Although historical revisions also added 266,000 more workers, Nothaft continued, they caused the labor participation rate to fall to 63.7 percent, representing the smallest share since May 1983, which offset some of the rise in mortgage rates.

According to the PMMS, most average mortgage rates rose, but the 30-year fixed rates remained unchanged and at an all-time record low.

Home foreclosure decline, but completions rise
Where have all the buyers gone?

Earlier this week, Zillow predicted mortgage rates this week would be similar to last weeks numbers.

Despite strong employment figures released on Friday, which often give a sustained boost to mortgage rates, the 30-year FRM has remained historically low, hovering in an extremely narrow band between 3.65 and 3.7 percent for the past week, said Erin Lantz, director ofZillow Mortgage Marketplace, which collects real-time mortgage rates based on consumers quotes.

Although European headlines may drive more volatility in the coming week, we expect rates will stay near this range, Lantz speculated.

Rates for the week ending Feb. 9, 2012, are as follows:

30-year FRM averaged 3.87 percent, matching last weeks rate. Last year at this time, the 30-year FRM averaged 5.05 percent.

15-year FRM hovered at 3.16 percent, up from last week when it averaged 3.14 percent. One year ago, the same rate averaged 4.29 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, up from last weeks average of 2.80 percent. At this time last year, the 5-year ARM averaged 3.92 percent.

1-year Treasury-indexed ARM averaged 2.78 this week, up slightly from last weeks average of 2.76 percent. The same time last year, the 1-year ARM averaged 3.35 percent.

Despite the slight increase, rates across the board are still far below last years averages. Even so, many consumers are putting off buying a home for fear of locking in the current rate only to see rates fall even lower in the coming months.

By Laura Elliott.

Tesco Bank’s Chief Executive Benny Higgins has outlined the key areas involved in the launch of the company’s long-anticipated move into mortgages. Despite recent reports of delays, commenting in The Scotsman newspaper Mr. Higgins said that the supermarket-owned bank is set to launch its mortgage product in a “couple of months”. He went on to say that the Edinburgh-based bank’s mortgages will be primarily funded by deposits, but that it still intends to access the wholesale markets.

Last year, Tesco Bank raised £1.5 billion in 14 months following the introduction of a fixed-rate savings product, and a further £185 million by the issuing of a corporate bond which targeted retail investors. Mr. Higgins said that “It has changed the balance sheet. It has given us quite substantial funding which is important as we head towards mortgages.”

Tesco Bank’s savings book has 5.9 million customers, and reportedly has grown its share of the credit card market by more than half, from 8% three years ago when it bought out its partner, the Royal Bank of Scotland. “Frankly, if somebody had said to me in December 2008 we expect you to get from 8% of all credit card transactions in the UK to 13% in three years, I would have thought of that as a pretty big stretch,” Mr. Higgins said.

He also commented on the fact that supermarket giant Tesco has invested over £400m in the development of Tesco Bank, turning it into a “business of scale”. The increase has seen the number of jobs at the bank rise from 200, to 3,000 in Edinburgh, Glasgow and Newcastle. Currently, around 2,250 of the bank’s employees are based in Scotland.

The bank is now developing new methods of marketing financial products to Tesco’s 16 million club card holders. The information taken from the club cards has also given the bank a good indication of how they could reduce motor insurance for some customers by up to 20%.  The new “rewards for loyalty” are expected to be extended to the bank’s future mortgage customers as well.

“Last year we returned £100m worth of club card points into the pockets of Tesco Bank customers. It is a way of saying thank you and a way of rewarding their loyalty for using our products. The mortgage product will have all the hallmarks of what we are trying to set out to do running the business, which is transparency and rewards for loyalty,” said Higgins.

Despite the series of delays which have plagued the bank, Higgins insisted that he was “proud” of the progress they had made, and is confident that the bank will be able to compete with the “big five” high street lenders. In 2010 the supermarket said that its bank would launch mortgages in the first half of 2011, followed by current accounts in the second half of the 2011-12 financial year. The latter will not be launched until next year when it will be easier for customers to switch banks.

Mr. Higgins admitted that the migration last summer of 550,000 savings customers from the RBS platform had not been easy, but he added that Tesco Bank staff in Glasgow were “heroic” for dealing with the crisis last June which saw about 6,000 customers unable to access savings accounts.

He said: “When I look at how many customers we have been serving and how well we have been serving them – there are issues, things have not always gone smoothly. But I don’t think I can characterise the last three years, in terms of serving customers and serving them well and growing the business, as being anything other than something to be very proud of. I don’t say that lightly. I think we have done a very good job in growing the business.”

Hosted by: Better Homes and Gardens® Real Estate
Category: Business amp; Innovation
Location: Eventi, 851 Avenue of the Americas, New York, NY 10001
Date/Time: Thursday, February 16 at 6- 8 pm EST

Sherry Chris, President and CEO, Better Homes and Gardens Real Estate LLC, will be moderating the panel, which will include:

o Kim-Marie Mullin, Associate Broker/Business Development Manager, Better Homes and Gardens Real Estate Rand Realty
o James Nichols, Vice President, Strategy, Meredith Corporation
o Evette Rios, Interior Designer, Co-Host on the new ABC Daytime Show, The Chew and contributor to the Rachael Ray Show. Evette Rios Multimedia Corp.
o Sarah Newell, Lifestyle Editor, TheNest.com

Geared toward consumers and home-related professionals, the panelists also will discuss the best social and mobile media platforms to use when creating a home. From the start of the home-buying process to furnishing and designing and even putting a home on the market, tools such as residential real estate search engines, home design blogs and online platforms, from Facebook to Pinterest, can educate consumers and help influence their decisions.

For more information click here.

The Finance Bill paves the way for some 270,000 people to get more mortgage tax relief. It sees first-time buyer couples who bought between 2004 and 2008 being entitled to up to euro;2,000 a year in extra relief.

The measure is long overdue, at a time when middle-income earners in particular are feeling the squeeze.

Lower mortgage payments wont come a moment too soon for those who are coping with hits to their pay packets, or for those who lost their job or suffered a major drop in their salaries.

It is targeted at people who are lumbered with substantial mortgages. Lets hope that other measures will be proposed for those who dont qualify for this measure, but also need relief.

Ostensibly since credits are rewarded based on the costs of the modification (the higher the costs the greater the credit), banks would engage in the most expensive strategies to meet their three year goal. Nevertheless, this agreement does little to support the housing market because it calls for huge modifications on a select group of people rather than small modifications for the vast majority of mortgage holders.

Overall, private lenders are dragging their feet and government has a duty to speed up the process. If state governments ease the red tape associated with foreclosure proceedings and the federal government mandates timelines and goals for all lenders with the threat of enormous fines and prosecution then we can turn around this housing market.

Thankfully, this settlements provisions include some of the aforementioned proposals; however, it also allows for individual lawsuits and state investigations of lending practices. Of course, punishment should befall many bank officials and regulators, but if such actions slow down the recovery, then the overall effect is counterintuitive. Attorneys General will have ample opportunity to root out and bring criminal charges against these individuals, but now is not the time. Threats and innuendo are the strong suit of the government and lenders would be advised to take their overtures seriously.

Unfortunately, even the government has failed to take its own advice. Fannie Mae and Freddie Mac are not covered under this agreement. The Home Affordable Refinancing Program (which refinances loans) and the Home Affordable Modification Program (which reduces monthly loan payments based on income) are voluntary initiatives that have failed to meet expectations. When the government is not a responsible steward of its own programs how can we expect private institutions to act within reason.

This settlement is only one example of how the government is trying to skirt the housing debate. Loans guaranteed by Fannie and Freddie make up a majority of mortgages today but without widespread modification programs homeowners will continue to scrimp, save and struggle. Not everyone has an underwater mortgage, or is near foreclosure, but millions of Americas are making less and trying their best to meet their obligations as a homeowner. Yet rather than receiving relief, their tax dollars inadvertently pay for loan and refinancing programs that have been ineffective and costly, with meager results.

Some people will continue to lose their homes, and with good reason. They had neither the determination nor dedication to pay their bills responsibly. But the goal of any federal, state, or private effort should encourage homeowners to stay and pay. If one is confident they can afford their monthly mortgage and build equity in their home, they will go out to buy discretionary goods and services and, in turn, growth will ensue. The solutions are out there but our lawmakers in Washington have to be part of shared sacrifice that will hurt lenders (and sadly, taxpayers) yet make us stronger in the long term.

According to the 2011 Massachusetts Profile of Home Buyers amp; Sellers, compiled by the National Association of Realtors (NAR) on behalf of the Massachusetts Association of Realtors (MAR), 94 percent of buyers and sellers said they worked with a Realtor last year. This is an increase of 12 and 13 percent, respectively, since this statistic was first tracked by MAR in 2003.

The study also found that despite the high number of foreclosures and short sales, only 3 percent of sellers cited not being able to afford their home as a reason to sell.

The market conditions of the past few years have made the process of buying and selling a home more complicated, therefore it makes sense that so many buyers and sellers would choose to work with a real estate professional to manage the transaction, said 2012 MAR President Trisha McCarthy, a broker with Keller Williams Realty in Newburyport.

Bay State residents also consulted real estate brokers at a greater pace than the rest of the country. Nationally, the number of buyers who have worked with a real estate professional has grown from 69 percent in 2001 to 89 percent last year, which is 5 percent lower than the Massachusetts rate of 94 percent. Meanwhile, 87 percent of sellers across the country chose to work with a real estate professional, 7 percent lower than the Massachusetts rate. Of those national For-Sale-By-Owner (FSBO) sellers, half knew the buyer prior to the sale.

When first-time and repeat homebuyers were asked what was the primary reason they purchased a home in 2011? the top response was a desire to own a home (36 percent). The other top reasons included: the desire for a larger home (9 percent); a change in family situation (9 percent); the affordability of homes (7 percent); and a job-related relocation or move (7 percent).

The median income of Massachusetts buyers (which is reported from 2010 household data) was up to $89,700 compared to $82,100 in 2009 and higher than the $80,900 national median income. Sixty percent of homebuyers were married couples, 19 percent single females, 7 percent single males, and 11 percent unmarried couples.

The median age of the first-time homebuyer was 32, which was the same as in 2010. Fifty-six percent of first-time homebuyers were between 25 and 34 years old, while 20 percent were 35-44 years. Only 7 percent were 18-24 year years. First-time homebuyers in Massachusetts had a median income of $68,800 compared to $62,400 among first-time homebuyers nationally.

The median age of the home seller was 51 years (which is up from 46 years in 2010) and they had a median income of $114,000 (the US median was $101,500). The typical seller owned their home for 10 years. Seventeen percent of home sellers reported the main reason for deciding to sell was the home was too small. Another 17 percent cited job relocation and 15 percent reported a change in family situation (eg, marriage, birth of child, divorce). Only three percent reported selling their house because they could not afford the mortgage and other expenses of owning a home, which was the same as in 2010.

In 2011, 90 percent of buyers still financed their home purchase (99 percent of first-time buyers compared to 83 percent of repeat buyers). Savings continues to be the chief source of the down payment for 85 percent of first-time buyers with 48 percent of repeat buyers using proceeds from the sale of their primary residence.

Thirty-nine percent of buyers felt that the mortgage application process was either much more difficult than expected (16 percent) or somewhat more difficult than expected (23 percent). Forty-three percent of buyers felt the mortgage application process was not difficult/no more difficult than expected and 18 percent felt it was easier than expected.

Similar to 2010, 40 percent of home sellers did not reduce their asking price before the home was sold. Twenty-one percent of sellers offered incentives to attract buyers compared to 41 percent nationally. Most often that assistance was applied to closing costs, home warranty policies and credit toward remodeling or repairs.

What may be charming to a seller could put off a prospective buyer. Many sellers attempt to stage their homes themselves, and in doing so, create more serious mistakes that can sidetrack the sale of their homes.

Here are some of the biggest staging mistakes, according to Professional Home Stagers Magazine.

1. Getting too personal: Home staging is meant to create a neutral canvas that will appeal to the majority of buyers. Staging is all about de-personalizing the space and creating more of a luxury hotel or model home look that will appeal to most everyone. This is not the time to bring in your unique style and create a look that appeals to just you.

2. Using dark colors: If painting, you should choose a nice, neutral and warm color, such as beige or grey tones. Youll be amazed at the transformation a few coats of fresh paint will make on your home.

3. Not taking advantage of natural light: Buyers love natural light, so blocking off any light with heavy curtains or furniture can hurt your sale, especially if the home has attractive views. Anything dated in a home is a turn-off to a potential buyer and older window treatments are often just that.

4. Thinking more is better: Scale down your furniture. The size of the furniture needs to be in balance with the scale of the room and the other furniture in it. Remember that the purpose of furniture when selling a home is to define the purpose of the room and to show what will fit where. It is not meant to show that you can provide seating for 15 in your living room and every seat has a side table to rest drinks on.

5. Leaving pets at home: You need to remove all traces of animals from the house and make sure Fido or Sunshine is away during showings. Having a pet could kill a sale before someone even steps into a house. You may be used to the excited greeting your pet meets you with, but many buyers arent. Some are just plain scared.

6. Neglecting the outside: People care about the outside space just as much as the inside, so add flowers, make sure the lawn is mowed, the yard is tidy and add a few backyard accessories for the kids. You can have fresh plantings in any season.

7. Only dealing with main rooms: People are quick to stage living rooms, kitchens and bedrooms, but dont forget to spruce up the garage, basement and closets as well.

8. Forgetting fixtures: When staging a home, its important to ensure all lights are burning with fresh bulbs, and that all fixtures are working.

Remember, staging a home means showcasing the propertys many features, not concealing its flaws. Make sure your house is in good condition, and use staging to cast the home in the best light.

Linda Skolnicks Skolnicks Scoop appears every other Friday. She is a Realtor with Prudential Connecticut Real Estate in Westport, can be reached by calling 203-246-0088 or through her website, www.GoAskLinda.com.

By Stacy Lipson | February 9, 2012, 5:57 AM PST