Lis Pendens filings are down in both Nassau and Suffolk Counties.

Lis Pendens filings have been decreasing since the 4th quarter of ‘08 and both counties are at a 2 year low (Not taking into account the Paterson Foreclosure moratorium in the 4th quarter of ‘08) . This is the first place that we would see the signs of the market improving. Unfortunately we are still not out of rough water yet, until the economy and home prices stabilize we will continue to see are large amount of Lis Pendens filings each quarter. But all in all this is very good news.

This data seems to be all over the place no real trends exposing there self here. 

With all the turmoil in the world economy interest rates are being pushed down to 1 year lows! It won’t last so find that house and lock in. These rates over time will save you thousands more then the $8,000 Homebuyer Credit.

Below is an excerpt for a post I did awhile ago called “What Cause’s Real Estate to Appreciate” Click on the title to see full post.

Interest Rates:
A one percent change in the mortgage financing rate can change the value of real estate by as much as 10%

A $300,000 mortgage financed at 5% for 30 years costs 1610.46 (Principle and interest)

So a monthly mortgage payment of 1610.46 at 6% for 30 years gives you a mortgage of $268,611.22 or 10% less.

Mass layoff at LI home lender amid federal probe

December 1, 2009 by ELLEN YAN / ellen.yan@newsday.com

Melville-based Lend America closed its loan-making operation Tuesday and laid off most of its 600 workers, a day after federal officials revoked its license to make loans insured by the Federal Housing Administration.

FHA-backed loans made up at least 90 percent of the company’s business. After the subprime loan collapse two years ago, the FHA became the primary insurer for nonprime mortgages; if an FHA-backed loan defaults, the government takes the hit.

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FINANCES, RISK AT ISSUE
Borrowers would need ‘more skin in the game’

By Dina ElBoghdady
Washington Post Staff Writer
Wednesday, December 2, 2009

The Federal Housing Administration is proposing to increase the up-front cash paid by borrowers as part of an effort to shore up the agency’s finances, which have been staggered by rising defaults in its flagship mortgage insurance program, according to FHA officials.

The changes also include raising minimum credit scores for borrowers who receive FHA-backed mortgages and limiting the amount of money sellers can kick in, including paying closing costs or giving free upgrades.

These measures are designed to increase the amount borrowers invest in the homes they buy, thereby making it less attractive for them to default on loans and walk away from properties, as many people have done during the current housing crisis.

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Seeing the short sale inventory declining is a very good sign; however, what confuses me is the report of increased mortgage delinquencies and Lis Pendens filings. If delinquencies are increasing it would only make sense that short sales would be increasing.

We have seen the spring market heat up in all three counties. Spring always seems to bring the buyers out of winter hibernation; however, this year spring buyers we able to also take advantage of interest rates at an all time low and, for first time home buyers a $8000 tax credit as an extra incentive.

As the interest rates started to decline from its high at the beginning of the year, hitting an all time low at the beginning of May ‘09, the Long Island Real Estate market has experienced  an increase in buyer activity. Ever since that low interest rates have skyrocketed almost 1 full point in less the 30 days. As interest rates increase buyers are either forced out of the market or have to buy homes at lower sales prices.

Interest rates have a direct effect on the value of real estate as I discussed in an earlier post ( Permanent Link to What Causes Real Estate to Appreciate- ) that a one percent increase in the interest rate could affect the value of a property by as much as 10%. The good news is it looks like interest rates are falling again.

PMI’S May 2009 analysis of economic, housing, and mortgage market conditions

Click Here To View Report

Making Home Affordable is part of President Obama’s comprehensive strategy to get the housing market back on track. Through the Making Home Affordable Program, up to 9 million American families may be eligible to refinance or modify their loans to a payment that is affordable now and into the future.

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