FORECLOSURE SUSPENSION

Bank of America is halting foreclosure proceedings in all 50 states after revelations that paperwork wasn't being closely examined.
The nation's largest bank will stop foreclosures beginning Saturday, October 9th, a week after announcing it would suspend action in 23 states. The bank said it won't end the moratorium until a review of its practices is complete.
Congressional leaders have called for a suspension of all foreclosures following the discovery of problems with "robo-signers," middle managers who sign affidavits allowing banks to repossess homes that are in default without fully reviewing the documents.
Several managers have admitted in depositions that they signed off on thousands of foreclosures without looking at much more than the date on the forms.
The Charlotte, N.C.-based lender is the first to stop proceedings in all 50 states. J.P. Morgan Chase and Ally Financials GMAC Home Mortgage division have put foreclosures on hold in about half of the country.
Senate Majority Leader Harry Reid (D-Nev.) and House Oversight Chairman Edolphus Towns (D-N.Y.), along with other lawmakers including Speaker Nancy Pelosi (D-Calif.), have called for a halt of activity in their states and nationwide.
Attorney General Eric Holder said earlier this week that the mortgage division of the Financial Fraud Task Force is investigating the problems.
By Vicki Needham/On The Money—The Hill

Is It Better To Buy Or Rent?

Until recently, the perennial real estate question of whether to rent or buy was dead. During the boom years, the question was largely irrelevant as people refused to pay ever increasing prices for already expensive real estate. But now that national home prices have slid substantially and potential buyers are being more cautious, the debate has been reinvigorated.
Unlike home prices, rents tend to rise or fall just a few percentage points each year. Economists generally hold that anything below 15 times the annual rent is a buyer-friendly city.
Individual circumstances matter—people in higher tax brackets, for example, may get more bang for their purchase buck because they are able to deduct more interest costs and property taxes. And, once people purchase, their home-buying costs tend to be fairly stable. Fixed-rate loans don’t go up (although taxes and maintenance costs can.) Rents usually do.
Buyers often feel more invested in their communities, more likely to put down roots, make friends and join local organizations. Home ownership often brings them pride and joy. CNN

NATIONAL HOUSING SURVEYS

Fannie Mae released its latest National Housing Survey and found that consumers have a mixed outlook on housing. The majority of consumers surveyed (67 percent) continue to believe that housing is a safe investment.
Nearly half (47 percent) think that home prices will hold steady over the next year while nearly one-third (31 percent) think prices will rise.
70 percent think this is a good time to buy a house, compared with 64 percent in a similar survey that Fannie Mae conducted last January.
These findings indicate the return of a more balanced and realistic approach to housing. This approach may weigh on the housing recovery in the near-term, but over time, it should help to build a stronger and healthier market focused on sustainable homeownership. fanniemae.com

General Elections on November 2nd

General Elections are on November 2nd. Voting will be for Governor, Lieutenant Governor, U.S Senate, House of Representatives, Judicial Retention, and State School Board.

Things Happening in Our Area

1.Huntsman World Senior Games Starts October 4th runs till October 16th
2.What Women Want Expo October 22nd and 23rd
3.Sons of Utah Pioneers October 21st-23rd .
4.General Elections November 2nd.
5.Thriller will play at Tuacahn on October 22nd through October 30th

The average interest rate for a 30-year loan was 5 percent over the last 12 months. The average over the last 10 years was 6.13 percent. The highest rate since January 1964 was 18.45 percent in October 1981. The lowest rate since January 1964 was 4.71 last December. That is some history lesson. No matter how you slice it, today’s home prices and mortgage rates represent an HISTORIC OPPORTUNITY that cannot be ignored. Whether you are seeking to purchase a home or refinance, now is your chance. Information courtesy of Jeanne Wall/WJ Bradley Mortgage Capital Corp.

REHAB A HOME WITH HUD’S 203(k) PROGRAM

Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage.
The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established.
The Section 203(k) program is HUD’s primary program for the rehabilitation and repair of single family properties (to be eligible, the property must be a one to four family dwelling that has been completed for at least one year). Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.
Many lenders have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203 (k) with other financial resources, such as HUD’s HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers.
The Section 203(k) program is an excellent means for lenders to demonstrate their commitment to lending in lower income communities. HUD is committed to increasing homeownership opportunities for families in these communities. www.hud.gov