In an article from Housing Wire, author Jon Prior explains that 30% of FHA mortgages that go through the modification process, end up defaulting again within one year.

This is a staggering number, and gives further ammunition to those who believe the modification process isn’t worth the cost.  Imagine any business or service provider that failed at a 30% rate.  They wouldn’t be in business for very long.  The only silver-lining is that this 30% rate or re-default has actually decreased from years past.

To read the entire article, visit:  http://www.housingwire.com/2011/11/18/30-of-fha-mortgage-modifications-redefault-within-a-year?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29&utm_content=Google+Reader

For info on Norwalk area real estate, visit: www.ToddTurcotte.com

President Obama has reinstated the higher FHA loan limits that recently expired on October 1st.  FHA can now insure loans up to $729,750 from the previous amount of $625,500.

The increase might not seem significant, but it is particularly inportant in areas where real estate is more expensive, like Fairfield County.  For example, San Francisco (another expensive real estate market) home sales of $500,000+ dropped 20% in October compared to a year ago.

The move is contradictory to the goverment’s long term plan of reducing the FHA market share.  In the short term, however, this move adds more flexibility to loan officers who are having a difficult time securing financing from cautios private lenders.

To read the full article from Housing Wire, visit:

http://www.housingwire.com/2011/11/18/obama-signs-extension-for-higher-fha-loan-limits?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29&utm_content=Google+Reader

In a move to speed up the foreclosure process, Rep. Darrell Issa, R-Calif. is compiling a list of the “slowest” foreclosure states and is considering withholding Federal aid to those states.

Our state of Connecticut ranks 5th, slightly behind Maryland in average length of time to foreclose on a property, just shy of 600 days.  In other words, the average foreclosure time in Connecticut is over a year and a half.

The shortest timeline is Texas, which takes and average of just 86 days to complete the foreclosure process.

Speeding up the process will take a delicate balance.  The recent “Robo signer” debacle stemmed from an effort by lenders to speed up the average foreclosure time.

A longer foreclosure window means it will take more time to clear the market of distressed property.  On the other hand, it gives respite to under-water homeowners who can likely stay in their property for 6 months to 2 years (and sometimes longer) without paying their mortgage.  This is never an ideal situation, but can give these homeowners a chance to financially rebuild.

Are you dealing with a short sale or foreclosure?  Do you have any questions on either process?  If so, visit the “Contact Me” page on www.ToddTurcotte.com and send me an email.

To read the entire article from Housing Wire, visit: http://www.housingwire.com/2011/11/16/issa-looks-to-withhold-federal-funds-from-slower-foreclosure-states?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29&utm_content=Google+Reader

Chief economist of the National Association of Realtors expects gradual improvement in the housing market in 2012.  Lawrence Yun cited low interest rates, population growth, and a decline in unemployment over the course of 2012 as the main predictors of the upcoming housing improvement.

This comes as good news for buyers who are on the fence and don’t want to buy if the market is expected to slide even further.  Yun also predicted mortgage interest rates to rise slightly to 4.5% by the end of 2012.

For read the full article, visit: http://www.housingwire.com/2011/11/11/housing-to-gradually-improve-in-2012-nar-economist-says?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29

For info on Norwalk area real estate, visit: www.ToddTurcotte.com

New Listing!  40 Stuart Ave # C was just listed for $2,495 / month.

This Norwalk Condo rental was built in 2007, and is SPOTLESS!  The unit features 3 BR’s, 2.5 Baths, a 2 Car Garage, and W/D in unit.

For more info on this unit, visit: http://cmls.paragonrels.com/publink/default.aspx?GUID=c8c62031-44c3-4900-b273-71e08924d842&Report=Yes

For questions on Norwalk real estate, visit: www.ToddTurcotte.com

There is no doubt that we are in a buyer’s market.  Price have fallen, and interest rates are still near record lows.  In theory, buying should be pretty easy.  In reality, it can be very frustrating.

Today’s buyers are dealing with low appraisals, tight loan requirements, and in some cases, the seller’s bank.  Short sales tend to be available at slightly lower prices, but can also make a buyer wait mutiple weeks before getting feedback on an offer (something that can take hours or a couple of days in a conventional sale).

Here is a Trulia.com article with some remedies for those worn-out buyers in today’s market:

http://www.trulia.com/blog/taranelson/2011/11/5_ways_to_course-correct_when_your_house_hunt_takes_too_long?ecampaign=cnews201111B&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F11%2F5_ways_to_course-correct_when_your_house_hunt_takes_too_long

Feel free to contact me anytime with any questions, just check out the “Contact Me

Freddie Mac, the government-controlled mortgage lender, is requesting another $6 Billion in aid from tax payers as they posted further losses in the 3rd quarter.  Some of those losses are attributed to the recent high volume of refinancing by homeowners.  Lower interest rates for homeowners means less cash to Freddie.

It is estimated that it will cost $51 – 142 Billion to support Freddie Mac and Fannie Mae through 2014.

For the full MSNBC article, visit: http://bottomline.msnbc.msn.com/_news/2011/11/03/8614713-freddie-mac-seeks-6-billion-more-in-aid

For info on Norwalk area real estate, visit: www.ToddTurcotte.com

The housing market has taken a beating over the past few years.  Times like these make buyers question the value of owning a home.

This article from Realty Times points out 5 benefits to owning a home, even in today’s economic climate:

http://realtytimes.com/rtpages/20111102_great.htm

Feel free to contact me anytime with any real estate questions, www.ToddTurcotte.com

New Listing!  1 Frescenius Rd. was just listed for $474,000.

This 3 BR, 2 Bath home offers over 1,300 SF.  This home needs a little TLC to restore this house to its former beauty.  For more info about this specific home, visit:  http://cmls.paragonrels.com/publink/default.aspx?GUID=b6295826-ecf4-4ad4-a8bb-5d707ff4489d&Report=Yes

For more info about Norwalk / Westport real estate, visit:  www.ToddTurcotte.com

New Listing!  34 Soundview # 2 was just listed for $1,550 / month.

This 2 BR apartment is walking distance to SoNo and the South Norwalk train.  It also includes heat and hot water in the rent.

For more info on this apartment, visit:  http://cmls.paragonrels.com/publink/default.aspx?GUID=bac7663b-2091-4113-b329-3ca1d13b291b&Report=Yes

For info on every apartment in Norwalk, visit: www.ToddTurcotte.com