This article from RISMEDIA is so good, I am posting it here for all to read and want to give 100% credit to RISMEDIA.

FHA Pros, LLC, a national FHA condo approval service, has developed a list of facts speaking to the top misconceptions associated with FHA loans in order to help home buyers better navigate an already confusing market. FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA).

“We have seen home buyer interest in FHA loans go from practically zero three years ago to upwards of 87% today,” said Christopher Gardner, founder and president of FHA Pros, LLC. “Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans, and we believe it’s time to change that.”

1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county though. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.

4. FHA loans are not affiliated with the section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.

Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.

Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers. Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply.

7. FHA loans are assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

“Now, more than ever, buyers and sellers need to understand the options available to them when it comes time to buy a home,” continued Gardner. “At FHA Pros we have worked with countless HOAs, attorneys and individuals to easily and efficiently navigate the historically tricky FHA-approval process.”

7 Things All Borrowers Should Know About FHA Loans is a post from: Barbara and Susi

RealtyTrac, one of the leading online marketplaces for foreclosure properties released its first U.S. Foreclosure Sales Report, which shows that foreclosure homes accounted for 31% of all residential sales in the first quarter of 2010, and that the average sales price of properties that sold while in some stage of foreclosure was nearly 27% below the average sales price of properties not in the foreclosure process.
Foreclosure sales accounted for 64% of all sales in Nevada in the first quarter, the highest percentage of any state. California posted the second highest percentage, with foreclosure sales accounting for 51% of all sales there in the first quarter Other states where foreclosure sales accounted for at least one-third of all sales were Massachusetts, Rhode Island, Florida, Michigan, Georgia, Illinois, Idaho and Oregon.

Foreclosure Sales Report is a post from: Barbara and Susi

What characteristics do the 10 Most Recession-Proof U.S. Cities have in common?

The most recession-proof cities didn’t see home prices surge in the first place, so they didn’t experience a big housing bubble followed by a crash, and their economnies weren’t rooted in the auto industry.

The top 10 stable cities identified by MetroMonitor are:

1. Albany, N.Y.
2. Augusta, Ga.
3. Austin, Texas
4. Baton Rouge, La.
5. Buffalo, N.Y.
6. Columbia, S.C.
7. Dallas, Texas
8. Des Moines, Iowa
9. El Paso, Texas
10. Honolulu

Can you guess the 10 most recession proof cities in the U.S? is a post from: Barbara and Susi

Beware of the Short Sale Scam
Because of the large number of short sales and because they promise to remain strong for the next five years, they are the perfect playing field for unscrupulous scammers.
Unlicensed “Short Sale” negotiators are approaching homeowners in distress and asking for upfront money to negotiate with lenders. This is illegal. Only attorneys and licensed brokers can ask for money up front – and only after the Department of Real Estate approves the agreement with an individual seller.
These “so called” Short Sale negotiators, including some real estate agents are lowballing offers to overwhelmed banks. This is called “flopping.” The home is then flipped to a waiting buyer for a much higher price. Beware when you are asked to use one of these “floppers” title companies. This could be a clue you are involved in a flop.
Another practice that is happening with regularity is that often the holder of a 2nd mortgage on the property is demanding extra money outside of escrow in a “secret deal”, because they don’t want the primary lender to know. If you don’t play ball with them they will refuse to approve the sale. It is out and out blackmail and extortion. The government really needs to crack down on this practice.
Some homeowners, especially savvy, well-off owners who owe far more than their houses are worth, are hiding savings and income to persuade lenders to agree to short sales. Many can afford their mortgages, but know it will take them years to recoup their 2006 values.
If someone asks you for money to negotiate a Short Sale, you should probably look elsewhere for help. HELP IS FREE! There are many well qualified people who can help for free. Look for an agent who holds a CDPE or SFR designation. These agents have been trained to help you through the process.

Beware of Short Sale Scammers is a post from: Barbara and Susi

After years of hearing how home prices are plummeting and foreclosures are mounting, consumers want to feel hopeful about the housing market — but maybe they’re being too optimistic.

In a presentation to the National Association of Real Estate Editors in Austin, Texas, last week, Stan Humphries, Zillow.com’s chief economist, pointed to four myths he said consumers are latching on to as they try to make sense of recent housing statistics.

The four myths:

1.The housing recession is over. It’s not, Humphries said. He estimates the bottom in home prices won’t come until the third quarter, at least from a national perspective. Doug Duncan, chief economist at Fannie Mae and also a speaker at the conference, agreed with that estimation. Note: Realtytrac’s Rick Sharga disagrees…he is estimating that we are well over a year away from any sort of ‘bottoming’ in home values.
2.After markets hit bottom, prices will rebound to boom levels. Not going to happen, at least for a while, Humphries said. “Once we hit bottom, the bottom is going to be a long and flat affair across the markets,” he said. “What we’re going to see once we hit bottom is the second phase of the housing recession… that second phase is one of being flat.” Note: Excellent point that agents need to understand. Once home value depreciation finally levels off..we will experience years of flat or no home value appreciation. Realtors, STOP saying that homes are a great ‘investment’. Speaking in strictly financial terms, homes are NOT a great investment.
3.The worst of the foreclosure mess is behind us. More wishful thinking, according to Humphries. He estimates foreclosures will peak later this year, then remain elevated for a while. Rick Sharga, senior vice president of RealtyTrac, an online marketplace for foreclosure properties, said he doesn’t envision foreclosure activity stabilizing until late 2011.
4.The tax credits saved the housing market. With or without a tax credit, those who bought would have done so anyway, Humphries said. “The biggest impact [in home sales] we believe were low prices… low interest rates and the unsung factor here is the ramped up lending by the Federal Housing Administration.”

I want to acknowledge Realty Trac and Zillow for their contributions.

The Four Myths Regarding Housing Statistics is a post from: Barbara and Susi

The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 10.06 percent of all loans outstanding in the first quarter, up 59 basis points from the fourth quarter, and up 94 basis points from one year ago, according to the recently released Mortgage Bankers Association’s (MBA) National Delinquency Survey.
The delinquency rate includes loans that are at least one payment past due, but does not include loans in the process of foreclosure. When you consider that current loans in the foreclosure process already are not being counted, the numbers are very sobering. The percentage of loans in the foreclosure process at the end of the first quarter was 4.63 percent, an increase of five basis points compared with the fourth quarter of 2009 and 78 basis points from one year ago. That difference from a year ago is very dramatic, no matter how one wants to spin it.

Foreclosures continue to be a big issue in the marketplace. With the prospect of a lot of adjustable rate mortgages taken out in 2007 and 2008 readjusting in 2012 and 2013, it looks we may need to hunker down for the long haul.

Delinquencies and Foreclosure Starts Increase in First Quarter is a post from: Barbara and Susi

Having earned the CDPE designation was a great step in a quest to help homeowners facing foreclosure. Recently I added to that designation with the SFR which is the National Association of Realtors course with certification upon passing course materials and exams for those agents interested in working short sales. It stands for Short Sale Foreclosure Resource.

Sellers facing foreclosure deserve representation by knowledgeable agents. The vast majority of agents certainly want to do a good job for a seller in distress. Wanting to do a good job and having specialized training are distinctly different. The details, follow-up and timelines in the foreclosure process are very precise and require specialized training to insure the greatest possibility of success.

An agent would be much better advised to refer short sales to a verifiable short sale specialist, earn a referral and praise from their clients for their help than muddle through an unfamiliar process and possibly end up with less than a favorable result.

Short Sale and Foreclosure Resource SFA is a post from: Barbara and Susi

According to Realty Trac, California accounted for 23% of the nation’s foreclosures for the first quarter of 2010-The highest foreclosure activity in the nation. Florida claimed the number two position followed by Arizona.

Despite close to a 5% decrease in foreclosure activity from the previous quarter, Illinois had the fourth highest foreclosure activity in the nation. Folloowing its decrease from the previous quarter, its increase was 17% over the first quarter of 2009.

Michigan, in fifth place, was up 38% from the first quarter of 2009 and 11% from the last quarter of 2009.

The following states round out the top 10 with foreclosure activity nationally: 6th-Georgia, 7th-Texas, 8th-Nevada, 9th-Ohio and 10th-Colorado.

One could surmise from the volatility of the numbers from quarter to quarter and year over year that we are not at a place called “market stability” yet.

Ten States Account for 70% of Nation’s Foreclosures is a post from: Barbara and Susi

Foreclosure trends for the month of February, 2010 show 47, 035 Notices of Default nationally, with 30, 881 in California and 1, 573 in Orange County. Notices of Trustee Sales show 86,595 nationally, with 26,591 in California and 1,493 in Orange County. Bank owned properties nationally came in at 80,232 with 12,591 in California and 400 in Orange County.

According to many real estate experts, 2010 will be a good time to buy a foreclosure or pre-foreclosure home, an investment property or a vacation rental.

Keep Your Eye on The Foreclosure Numbers is a post from: Barbara and Susi

The list of lenders participating in HAFA (Home Affordable Foreclosure Alternative) is quite extensive. Remember, participation in HAFA by the banks is voluntary. Those lenders participating in HAFA have guidelines they must adhere to, if they are to be compensated under the HAFA program for their participation.

A homeowner who meets the criteria of HAFA may participate in the HAFA program, EVEN, if they have been turned down for a modification under the HAMP (Home Affordable Modification Program) program.

A homeowner who meets the following criteria might want to find out, if their bank is a participating bank. The homeowner must qualify as follows:
1. The borrower must have a genuine hardship or an impending hardship.
2. The residence must be the borrower’s primary residence.
3. The mortgage is delinquent or will be delinquent in the foreseeable future.
4. The unpaid principal balance may not exceed $729,750.
5. The total mortgage payment must exceed 31% of the Gross monthly income of the borrower.

Because the list of lenders participating is so extensive, please send us an e-mail request to Barbara@barbaraandSusi.com or Susi@barbaraandsusi.com and we will send you the list immediately.

List of HAFA Lender Participants and Borrower Guidelines is a post from: Barbara and Susi