REO-Short Sales

How long will a short sale stay on my credit report? How many points on the score will I lose if I declare bankruptcy? How long until I can get a government-insured loan if the bank forecloses on my home?

You've probably heard some variation of these questions from your clients. If you've ever been unsure of how to answer, NAR has created two resources to help:

Press reactions to our second quarter home sales report are rolling in. We'll keep track of them here:

• Sun Gazette (Northern Virginia)
• WHSV (Shenandoah Valley)
• Richmond Times Dispatch
• Danville Register-Bee

An audio recording of today's press conference (right-click to download 7 MB mp3 file) with commentary from some of the state's leading brokers about VAR's second quarter home sales report is now available for download. The brokers in the call are:

Foreclosure rescue and loan modification scams are among the most prevalent types of mortgage fraud, and this week, Virginia's Attorney General has taken aim at two loan mod companies for violating the Virginia Foreclosure Rescue Law. According to WAVY television in Hampton Roads:

Governor Bob McDonnell says that Virginia has seen a net increase of nearly 72,000 jobs since February. Experts say that an improved job market will help lead a general economic recovery and bolster the housing market. It's also positive news for the commercial real estate market.

The net gain in jobs could have a strong impact on homeowners, who are more likely to keep up with their mortgages if they are employed. Sellers looking to market their homes will also benefit from an increase in jobs, as buyers with jobs will be able to qualify for financing.

Read more from The Associated Press....

Fannie Mae and Freddie Mac recently released rules for processing short sales and deeds in lieu of foreclosure in accordance with federal short sale guidelines known as HAFA (Home Affordable Foreclosure Alternatives), which took effect in April. 

The rules from Fannie and Freddie differ in significant ways from one another and from the federal HAFA program. NAR is offering a webinar on July 29 to familiarize members with the two companies' rules and help you understand how they differ from each other and from the federal rules.

In a memo released late last month (PDF download), Fannie Mae made some important announcements about appraisal rules and HVCC. Among other things, the guidance:

For the vast majority of Realtors^®, satisfying the Virginia Real Estate Board's (VREB) continuing education (CE) requirements is something you do to improve yourself and your professionalism. To stay current on what's happening in the industry, you seek out high-quality education like (shameless plug) the REal Show, courses from your local association, or from other approved real estate schools.

Despite a steep dive in pending home sales (see chart below), mortgage applications surged 6.7% last week as all-time low rates lured homeowners to refinance their home loans. According to the Mortgage Bankers Association, 78.7% of all applications received last week were for refis.  That's the highest level of refinance activity in over a year.