Jude's Real Estate Rumblings

Many people have bankruptcies on their credit report.  In many instances, the accounts that were included in the bankruptcy are not reported correctly on the credit report, and appear as if they are still open (and very delinquent) accounts.  This lowers the credit score tremendously.  If you have buyers who say they have bad credit scores because of a bankruptcy, there may just be mistakes on the report.    This is a very easy error to get fixed.  All the buyer has to do is send a letter to the credit reporting agencies (TransUnion, Equifax, and Experian) explaining that the account in question was included in the bankruptcy and should be reported that way.  They need to include a copy of the bankruptcy filing papers (which list the accounts included in the bankruptcy) and the discharge papers (which state that the bankruptcy is finished).  If they are in a hurry to get it fixed, their mortgage broker can do a Rapid Re-score, which shortens the process from 30-60 days to 3-4 days.

 http://www.judesandvall.com

Little slippage seen for local real estate, an article from the Rocky Mountain News, reports that according to a new national report, homes in the Denver-Aurora area have a 1% chance of losing value two years from now.  Released by the PMI Mortgage Insurance Co., the Spring 2008 U.S. Market Risk Index tracked the 50 largest metropolitan statistical areas in the country and found that only 13 metro areas are poised to perform better than the Denver area.  David W. Berson, chief economist and strategist for The PMI Group said, "It's hard to predict the exact bottom.  On a national basis, home prices are still falling in many metropolitan areas, and they will probably stop falling and start to stabilize in the second half of the year.  The Denver- Aurora MSA (Metropolitan Statistical Area) is one of the better markets."
http://www.rockymountainnews.com/news/2008/apr/11/little-slippage-seen-for-local-real-estate/

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Key Labor Market Statistics in 1996 and 2008

                                                                                March 1996     March 2008
1. U.S. Unemployment Rate                                             5.5%                5.1%
2. Number of Long-Term Unemployed                         1.33 million      1.28 million
3. Average Weeks Unemployed                                    17.3 weeks      16.2 weeks
4. Median Weeks Unemployed                                       8.3 weeks         8.1 weeks
5. Not in Labor Force because discouraged
over job prospects                                                        451,000           401,000
6. Democrats calling for
Extended Unemployment Benefits?                                        No                   Yes
7. President's Party Affiliation                                        Democrat         Republican

Democrats on the Economy in 1996:
"Our economy is the healthiest it has been in three decades." (President Bill Clinton, State of the Union Address, January 23, 1996)

Democrats on the Economy in 2008:
"The bottom line is that this administration is the owner of the worst jobs record since Herbert Hoover." (Senator Charles Schumer, Press Release, March 7, 2008)

All of this doom and gloom is media and politically driven.  We're definitely in a downturn but as you can see it is still better than it has been and will turn around. 

http://www.judesandvall.com

An article from ColoradoBiz Magazine, reports that according to a report by real estate investment-services firm Marcus & Millichap ranks Denver 19th among 43 cities in a "snapshot analysis" of retail-development prospects for the next 12 months.  The report also said developers in 2008 likely will concentrate on high-density, mixed-used projects such as the 335,000-square-foot development currently under way at 16th and Delgany streets.  Also projected in the reports is that Denver will add 13,200 jobs this year for a 1.1% increase over 2007.
http://www.cobizmag.com/articles.asp?id=2099

http://www.judesandvall.com

An article from RISMedia.com, reports that in today's market that is overloaded with agents, it's a challenge to stand out from the crowd.  The best way to stand out from the competition and be known in a market as the real estate expert is to create and maintain a personal brand that captures who you are, what you do and what makes you unique.  Creating a brand is not only used to gain attention, but to show your target audience that you can provide a solution to your clients' real estate problems.  It is important that you truly understand the needs and desires of your prospects and customers, and then integrate that strategy throughout your business and marketing materials.
http://rismedia.com/wp/2008-04-09/personal-real-estate-branding-staying-consistent-to-stay-ahead-of-the-crowd/

http://www.judesandvall.com

Forbes: Denver 7th-best for home sellers, an article from the Rocky Mountain News, reports that according to Forbes magazine's study of 40 large metro areas, Denver is the 7th-best city in which to sell a home.  Forbes.com said, "Overbuilding and a high foreclosure rate stymie Denver's housing market, which last year saw a 6.3% drop in prices.  Still, area homes are selling, and the vacancy rate, while still at a pro-buyer 3%, last year shrunk by 20%. The 49% drop in construction starts, the 12th-largest cut in the country; and 2% rise in new jobs, the 9th-highest rate in the country; are good news for sellers."  Each city was ranked by its 2007 unsold vacancy rate, calculated by the U.S. Census American Housing Survey, and how much the market had tightened or loosened when compared with 2006 conditions.  The report also took into account construction starts, job creation, and the degree to which new conforming loan limits from Freddie Mac and Fannie Mae would improve each market's lending conditions.
http://www.rockymountainnews.com/news/2008/apr/08/forbes-denver-7th-best-city-home-sellers/

http://www.judesandvall.com

Now that tax time is here, we are getting a lot of inquiries about whether tax refunds can be counted as assets when applying for a mortgage.  The answer is yes.  However, the underwriter will need to see a copy of the tax return to verify the amount, and a bank statement or deposit slip showing that the refund check was deposited into the borrower's account.

http://www.judesandvall.com

Ken Horst just posted about Washington Mutual quitting the wholesale lending business after their loss of $1.1 billion in the first quarter.  I thought everyone would be interested in a website that is tracking the mortgage meltdown and has a Mortgage Lender Implode -O- Meter.  It also has some good mortgage industry information. The site address is http://ml-implode.com/.

http://www.judesandvall.com/