Salt Lake City Real Estate

Salt Lake City joins list of Improving Housing Markets

Salt Lake City metro area joined a very important and somewhat exclusive (until recently) list — Improving Housing Markets. In fact, 29 metro areas were added to the list released in early February 2012 by the National Association of Home Builders/First American Improving Markets Index (say that 3 times fast..I DARE you).

The index is created by measuring housing permits, employment, and house prices over a 6-month window. The list now contains 98 metro’s in the U.S. This is just another sign that the economy is stabilizing and improving. 

Along with Salt Lake City, other notable entrants include: Miami, Boston, Detroit, Kansas City, Portland, and Memphis.

The number of improving housing markets has risen for six consecutive months, and 36 states now have at least one metro area on the list. While many of the markets are far from fully recovered, the list does point out where the market is no longer retreating and is showing marginal improvement. 

(Source: rismedia.com)

Unemployment Claims sinking

It’s been years since we have seen this, but the good news is rolling in. By good news I don’t mean the fact people are filing unemployment claims, that part is bad. But, the glass half full mentality says to dissect the following: The number of workers filing for unemployment benefits fell down to levels last seen in the early month’s of the recession.

There are two ways you can  view this news. The first is to say we have taken a step backwards and that as time plays out, we will endure the recession all over again. If that’s your mentality you are on the wrong site, please go off and play WoW or something.

The way the news should be looked at is that the number of people filing claims…er, the number of people being laid off or fired has decreased. This is a great because it has a positive impact on the cycle of our economy.

First, more people are working, which means more people are making money. As more people make money they have money to spend. People will spend the money either paying down debt (such as credit cards…which in turn they use to make purchases), or they spend the money making purchases. As people make purchases business do good and can afford to keep people employed, and in some cases hire more employees.

Celebrate peeps, This is good news. Let’s hope it stays that way!!

(Source: rismedia.com)

Utah Homeowners to get $2,000 if home was foreclosed

Utah is receiving around $171M in compensation via cash, reduction in mortgage principals, and loan modifications as it’s portion of the sweeping $25 billion deal struck by 49 U.S States and the five largest banks.

Many homeowners in Utah that recently lost their home to foreclosure can get about $2,000 in compensation.Homeowners that are currently in a foreclosure process could receive reductions in principals of their loans, modifications of the terms and/or forgiveness of penalties.

If a homeowner can’t afford payments even after a modification, they could be allowed to sale the home for less than the home is worth in a “cash for keys” program that allows you to walk away. (Note, this option currently already exists, contact me for more details).

While qualifications to claim the $2,000 aren’t set, the basic rules of thumb are for loan customers of Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial (formerly GMAC) that had their home foreclosed on between January 1, 2008 and December 31, 2011 would qualify. 

An estimated 50,300 Utah homes were auctioned during that time according to RealtyTrac, so this settlement could have a broad reach.

If you do qualify, I plead with you to be smart with the money. Instead of going out and buying a new TV, or going on a vacation, apply the $2,000 towards something such as paying down debit, or hold onto it as a rainy day fund.

(Source: sltrib.com)

Banks pay borrowers $35,000 to short sale

This has seriously got to be one of the craziest things I have ever read. There is no mistake in that title. Banks are paying borrowers up to $35,000 to short sale their home vs letting it go to foreclosure.

At first glance you are obviously thinking that the banks are taking advice from John Forbs Nash Jr (as portrayed by Russell Crowe in the 2001 film A Beautiful Mind). But in fact, there is a sound principle behind this train of thought.

In recent years people have gone done fighting. Not just kicking and screaming as they did in years past, but seriously pulling out all the punches. With attorney’s getting involved more and more, a foreclosure can sometimes take 2 or even 3 years. Every day a home is in foreclosure status but the foreclosure isn’t complete costs the bank precious money. Furthermore, the longer it takes the bank to re-sell the property once the foreclosure is complete cost even more of their “my precious” (aka, money).

In a short sale, the home is sold for less than what is owed and the bank forgives the excess debt (but not without some tax consequences after 2012). If the homeowner agrees to do a short sale and the home can get sold quickly, the bank often save $40,000 or even $50,000 in lost income vs a long drawn out foreclosure, especially if the home is in a down market (of which Salt Lake City currently is NOT). 

This program has most commonly been seen in Florida, but some banks are allowing it to occur in other areas as well. 

How great would it be to pay off all of your debt while losing your home as opposed to losing your home anyway and ending up with more debt. We’ll, a short sale can help you with that anyway, the extra cash is just icing on the cake.

Short sales are tough and should only be navigated by an agent that knows what the heck they are doing (also known as: Ben Eckenroed). Give me a call if you are facing the prospect of foreclosure and let’s see what I can do to help.

(Source: CNN)

Texas law governs Utah foreclosures

Sometimes (okay often) the legal system in this country puts on full force how messed up it can be. Take for example the class action lawsuit against Bank of America’s foreclosure arm (ReconTrust Co) by Utah Homeowners. U.S. District Judge Ted Stewart ruled that Bank of America (BofA) is within their foreclosure rights to exercise Texas law during their foreclosure process of Utah homes.

This ruling sets the stage for any bank performing any foreclosure to use the rules of the state they are headquartered in as the guiding principles for how to handle a process that leaves families homeless. 

Personally this frustrates me, because it is a way of saying “States can not do anything to protect their citizens against large corporations”. 

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(Source: sltrib.com)