24 Hour Mortgage Info |

Purchasing a new home almost always involves a negotiation process, which can often be difficult and confusing for a new home buyer. In most cases, working with a realtor can be helpful, since they have extensive experience with the entire process. However, whether you are shopping on your own or working with a realtor, there are some tips to keep in mind that will help smooth out the process.

First off, you will need to complete some much needed research. Find out what the average listing is within the neighborhood and determine what type of flexibility you have to negotiate with the seller.

If you understand the current home pricing structure, you will be better prepared to know what you should be offering for a house. Without this kind of information, you might end up paying far more for a home than what you should.

Other information, such as how long the home has been on the market, how long other comparable homes in the area have been on the market, and whether the price of the home has already been previously reduced can be helpful to know. These kinds of facts can give you a clue as to how willing the seller might be to negotiate.

When shopping for a home, it’s also a good idea not to share too much information with the seller. For example, if the seller knows that you find their home to be particularly attractive, they might not be as willing to negotiate to a lower price.

It’s also not a good idea to share the fact that you are in a hurry to find a home, or any other details about your reason for wanting to purchase the home. This might give the seller an advantage by showing that you’re desperate.

Knowing your limits and recognizing when it’s time to walk away from a deal is another important part of the negotiation process. Don’t become so emotionally involved with a potential home that you become willing to pay more than it is actually worth.

Remember that there are always other places out there and that if they are not going to sell for a reasonable price then it is best to drop it right there. In the long run you will be happy you did, as paying too much will hurt for longer.

This author has been publishing commentary pertaining to purchasing homes for the previous four years. Moreover, this author likes publishing articles regarding New York City real estate, like Upper West Side real estate as well as SoHo apartments.

Technorati Tags: "Family", Advice, business, communication, Finance, Home, Home Equity Loan, investment, Law, Legal, Negotiation, personal finance, Psychology, real estate, Wealth Building

It’s not news that the housing meltdown continues in 2010. Just ask any one of the millions of homeowners who are receiveing Notices of Default this year.

1. Foreclosure rates show no sign of slowing

2. Foreclosures are climbing the economic ladder, meaning higher priced homes are now coming under price pressure – even in the most sought-after locales.

3. Unemployment continues to drag the economy down. No significant relief is in sight…only a slowing of the rate of increase.

4. Commercial property in the US is the next major industry to implodefollowed by credit card companies.

5. Inflation will be a problem soon, providing additional negative pressure on the economy.

6. Bailouts proved to be controversial in many ways and are not expected to continue.

There’s no reason to expect that there will be any appreciation in home prices anytime soon. A report recently predicted that as many as 48% of homeowners will be “upside-down” on home mortgages by the end of 2010. More price erosion is expected in the coming months before the decline stops and we hit bottom. Gov’t efforts to stem the tide of foreclosures, most notably the loan modification program, just gets more scandalously slow each month. Backlogs, erroneous denial of applications, errors galore…the banks can’t hire and train fast enough to keep up. Some negotiators have as many as 300 files at one time! Real, meaningful principal reductions seem like so much hype at this point.

Homeowners are advised to use every tool available to save your home! During the housing market boom, lenders loosened underwriting standards to sell more and more loans to meet the insatiable global demand for mortgage-backed securities. Loan originators cut corners to meet sales quotas. Lenders, brokers, appraisers, Realtors, and Home Inspectors participated in what has now been labeled predatory lending. Predatory Lending is clearly unethical and some of the actions are illegal. Some violations have remedies that are inconsequential to most borrowers. Some experts estimate that MOST Adjustable-rate mortgages made during the period 2003-2008 show evidence of violations of consumer protection laws. Whether by unintentional errors or through greed and disregard for the law, the violations may now provide leverage for homeowners to negotiate a good workout solution.

Following are the most common violations.

1. Charging Fees for services that were not necessary

2. Charging more (higher points) than needed to buy-down rate

3. Selling private mortgage insurance (pmi) in cases where it was not needed

4. Including single-premium life insurance policy (one that pays the mortgage if the borrower dies) and charging the premium in the loan – without adequate explanation of the product or the need for the product realtive to laon apporval.

5. “Stripping Equity” by refinancing so many times that the fees eat up the equity and make the borrower vulnerable to foreclosure (too high DTI)

6. Not fully disclosing loan terms

7. Use of low (aka “teaser”) rates with adjustable-rate mortgages to get buyers to accept loan products that are high risk

8. Facilitating the misrepresentation of facts (income, home value, assets, etc.) on the loan application to enable the borrower to borrow more than would otherwise be the case.

9. Selling a higher rate loan when the borrower could have qualified for a lower rate

10. Preying on the vulnerable by purposely targeting minority groups, poor, uneducated, or elderly with unfair loan products

11. Selling loans that were clearly “not in the borrowers’ best interest”

12. Promising refinancing in a short period of time – as a way to get borrowers to accept bad loan terms, etc.

If I was able to show you how your lender violated laws during your loan processing and that some of the violations were serious enough to warrant a suit, would you be more confident in workout negotiations with that lender. Oh, I think so! Lenders and others were pretty well versed in the law and how to stay on the fringes. So, often your findings will not reveal big violations. But, the auditor may uncover a “pattern” of behavior thatdemonstrated disregard for your rights and that harmed you.

I highly recommend you conduct a Forensic Loan Audit:

1. your loan was taken in the peiod 2002-2008

2. if the loan came from a broker (not an employee of the lender)

3. if the loan is an ARM, neg-am, “Pick-a-Pay” Option ARM, or interest-only loan

4. if loan is a sub-prime loan (3+ points higher than the best loans at the time) or if it is an Alt-A loan

5. if the loan had any pre-payment penalties

6. if loan was a no-doc or low-doc loan

7. if you felt “hustled” or pressured or hurried to get your loan or sign the documents – you likely were a victim.

8. If you were promised that your loan could be re-financed after a very short period (1-3 years) as persuasion to get you to accept “less-than-optimal” terms and costs

9. If your loan payment, including principal, interest, tax, insurance and homeowner’s association fees (HOA) exceeds 40% of your gross household income

10. If you were forced to accept mandatory arbitrationto limit your legal rights. Legal Action – Is it worth it?

Legal Action – worth it? The loan modification process is a negotiation. The more leverage you have the more likely it is that you will succeed. Proof of lender violations of TILA, RESPA, HOEPA or state or federal consumer protection laws can give you a significant advantage. Forensic Loan Audits are professional audits of the loan and the process used to qualify you and the property for the loan. They are extensive. They are performed by auditors, specially trained in spotting violations.

Three observations in 2010

I am convinced that Forensic Loan Audits give leverage to homeowners in loan modifications negotiations. Workouts are routinely concluded faster and better for borrowers who present such information during the negotiations. Secondly, I have observed that the power isofte in the effective use of the information. That is, even common results from an audit can be used effectively in negotiations as a signal that you are serious about the negotiations and will not just stand in line…like everyone else. finally, I’ve seen that often there are what I call “low-hanging fruit”. These are clear violations of a serious nature that can be readily identified. An informed consumer can spot these violations without too much effort. After that it is simply a matter of finding a trustworthy auditor. More on this topic, next time.

Want to find out more about actually getting loan modifications? Visit Rockwood’s site about DIY Loan Modiification at Home Loan Modification Click here to get your own unique version of this article with free reprint rights.

Technorati Tags: business, debt, Finance, Foreclosure, Home Equity Loan, home loan modification, loan modification, Mortgage, mortgage modification. Real Estate, personal finance, real estate

As we approached late 2009, we saw a glimmer of light at the end of the tunnel as home sales accelerated to new highs in more than 2 years. Many assumed that we have hit bottom in home prices with increased activity from home purchasers bidding against each other in auctions from Florida to Nevada, Silicon Valley and New York.

He envisions that home costs may fall another five percent to 10% in 2010 with some extraordinary cases of thirty percent in places like Miami. There’s a tiny likelihood that home costs may recover in 2011 and it’s still too soon to inform. Zandi fears that the many millions of disturbed loans that don’t get modified will pile up and transform into more foreclosures. RealtyTrac guesstimates that 2,000,000 housing units in the United States are in foreclosure or bank owned. There’s a risk that many more may pile on to the inventory. Zandi is forecasting 2.4 million new foreclosures in 2010. He’s expecting that banks will become more assertive in listing more of their properties in the first part of the year. The bank’s actions of junking more properties in the market will cause prices to fall much more.

Presently, the U.S. housing market is not holding on its own as it is being perked up by the extended first-time-home-buyer tax credit. In addition, the U.S government has been purchasing mortgage-backed-securities or the bundling of home loans since late 2008. The govt. purchases of these instruments have helped keep mortgage rates low and fascinating. Wall St. investors once popularly bought MBS in the hope of earning a good return. This is obviously not true today with the decline of US housing causing the market interest for mortgage-backed stocks to shrink with no investors or speculators. By March of 2010, the US govt. would have finished its acquisition of a huge $1.25 trillion worth of mortgage-backed-securities. There’s debate that the government may end its purchases of mortgage-backed-securities by March 2010. This may lead to mortgage rates to spike by a full point. This can turn away many home purchasers as it raises the price of purchasing a home.

All of these considerations were integrated into Economy.com’s housing price forecast for 2010 with regards to local figures for income, population, interest rates and foreclosures. Their 2009 projection of a 14.5% price correction were quite spot on and not far from the reported 13.2%. According to Zandi, the worst hit areas such as Nevada, Florida, Arizona and California will have more foreclosures. He indicated Miami was the worst market where the 2009 median home cost of $183,530 is forecast to fall another 33% in 2010.

Zandi illustrates the less talked about areas like the Pacific Northwest, New York and Virginia where home prices remain expensive compared to rents. The flourishing regions are found in the pockets of the Midwest where the farming and energy economies are stronger in places like Dakota, Kansas and Nebraska. Pittsburgh which never saw a housing bubble is the only home market that is poised to increase by 0.41% in 2010.

Learn how to stop foreclosure by keeping informed on the latest government assisted programs. Download your free Podcast on the UShouse prices 2010 for your own use, blog or website.

Technorati Tags: business, Foreclosure, Home Equity Loan, housing, investing, Mortgage, real estate

Hiring the right real estate broker is paramount to making a successful sale. Having a broker’s professional help and expertise can also make the process smoother and less stressful. Unfortunately, this decision will take more effort than simply picking someone out of the yellow pages at random.

You have to look for someone who has proven experience and has a history of conducting sales similar to your own house. This is critical as many brokers focus on one type of property only.

Ask family and friends for referrals. You may even learn which brokers to stay away from. Attend a few open houses and observe how different real estate agents work. Chances are you will find one you’d like to work with.

Put together a list of potentials and begin interviewing them by phone. Ensure that they have enough experience and that they have a thorough knowledge of your particular market.

Get them to provide you with a listing agreement so you can scrutinize the terms. Ensure that you know how all the elements relating to their pricing plans work.

Always ask the agent for an approximate listing price and the total duration expected to sell the property. Keep in mind that you should never sign an agreement just because someone told you to. Take your time and really evaluate them.

Ask your potential broker for the phone numbers of at least three of their previous clients. Call these clients to inquire about the broker’s performance and get an idea of what it will be like to work with him. You should also be sure that the broker walks you through his plan for marketing and open houses.

These things will take some time, patience, and commitment. Nothing happens over night after all. By doing these steps though, you will ensure your home is sold in the most efficient manner, and make the entire process much easier.

The writer has been blogging on real estate brokers for the previous six years. Furthermore, the writer is fond of writing on New York City real estate subjects, like NoHo apartments for rent along with NoLita apartments.

Technorati Tags: "Family", Advice, brokers, business, Finance, Home, Home Equity Loan, investment, Legal, mortgages, moving, Negotiation, personal finance, real estate, relocation

There are two types of standard home loans on a home: a first mortgage and a second mortgage. The first mortgage is the original mortgage that is obtained to construct or buy the home. The second mortgage is taken out some time later, for a different purpose.

Normally, a homeowner will take out a second mortgage for home renovations, but there other reasons to take out a second mortgage, and one of the most increasingly popular reasons is to pay down high interest credit cards.

If you are thinking about taking out a second mortgage for home improvements, you should make sure you are going to get that additional value. Adding a bedroom, or renovating a kitchen are projects that have proven to make a home more valuable since these are items that new home buyers look for.

Some home improvements, however, are nothing more than luxuries and will not affect the future value. An in ground pool is an example that is frequently used, since there are many buyers (with young children, for instance) who would not care to have one.

Reducing high interest rate debt is another standard use for a second mortgage, as long as you are able to keep your overall costs down. Replacing 16 to 20% debt on your credit cards with 5-9% debt on a second mortgage really does make a lot of sense.

Creating more debt that is not going to either add value to your home, or reduce your present high interest debt is not a good economic decision.

Since a first mortgage is paid off from the proceeds of the home in case of default, there may not be enough equity in the home to pay the second mortgage, and this is the risk the second mortgage lender takes.

For this reason, rates on second loans are higher since the bank has that risk, and the chance of default is higher.

Second mortgages have closing costs, so you should be aware of them and make sure that they do not render the second mortgage so expensive that it does not balance out the savings you envisioned.

When it comes to second mortgages, you have to shop around, both for the best mortgage rates and for the lowest closing costs, which comprise a larger part of the loan in a second mortgage.

Intelligent Mortgage with hypotheque taux and you may also be interested in hypotheque

Technorati Tags: "Family", banking, business, credit, Finance, Home Equity Loan, insurance, internet, investment, money, Mortgage Rates, mortgages, mortgane loans

Key inside officials on Capitol Hill seem to be joining the criticism involving the federal foreclosure prevention program known as HAMP due to its numerous failures including their cynical outlook on where its heading.

With letters being traded between Neil Barofsky, special inspector general for the Troubled Assets Relief Program (TARP), and one key senator, he has recently said in a report that the U.S. Treasury now expects only 1.5 million to 2 million homeowners to get mortgage relief.

Compare this to the 4 million it initially claimed, even if this new number of permanent loan modifications could be accomplished at this point seems to be only a miracle.

The reason for this bleak outlook is that fewer than 200,000 or five percent have actually advanced from the trial program into a permanent modification mode.

But the more shocking news may be the fact that the inspector general’s announcement that a significant amount of these distressed borrowers who received help will probably default on their St Louis mortgage loan once again.

Again the critics are coming out of the wood works suggesting that these homeowners are irresponsible. But the truth of the matter is, many still owe more money than what their home is worth not mentioning that others have second mortgages.

One statistic that we will briefly mention in this article would be the amount of homeowners who were irresponsible and bought homes they knew they couldn’t afford, those who took adjustable rate mortgage (ARM) St Louis loans with interest only payments just to get into a bigger house they didn’t deserve and finally the ones that are guilty of getting the so-called “liars loan” or in other words those who lied on their stated income application.

But Barofsky doesn’t stop there. He continues to show his skepticism about the government continuing to offer these loan modifications. Well, the U.S. Treasury had a few things to say about his comments.

In interesting comment by Herbert M. Allison, assistant Treasury secretary for financial stability, he said that the HAMP program “should be measured by how many eligible homeowners are able to avoid the pain and stigma of foreclosure by reducing their mortgage payments to affordable levels while either remaining in their homes or transitioning with dignity to more suitable housing. The number of permanent modifications is one element, but not the only element of gauging the success.”

Whether this federal program meets its ultimate success or failure is second only to the fact that these key officials want us to view their ideologies from their viewpoint and no other.

What Allison, in reality, was saying is that the problem is not in the failing of HAMP, but rather that Barofsky and other critics are not measuring its lack of success the correct way. Oh, really.

But the Treasury department along with Allison cannot fully believe this concept since he goes on to say that permanent modifications are really only one way to help struggling homeowners.

The fact that servicers offering other foreclosure prevention initiatives and alternatives such as short sales must be taken into consideration.

The bottom line to all this was that the administration sold the American consumer on the fact that HAMP was going to be the ultimate savior in stopping foreclosures and steering this country back on course to a full recovery.

It should also be noted that any permanent modifications that do not include meaningful principal reduction will in all likelihood fail.

If you are wanting the best lending options on a St Louis home mortgage or a St Louis home loan, visit our websites or call Floyd, Steve or Doug at 877-334-0210 or 314-334-0210.

Technorati Tags: business, credit, Finance, Foreclosures, Home Equity Loan, lending, loan modifications, Loans, Mortgage, real estate, st louis home loan, st louis lending, st louis mortgage, st louis refinance, st louis refinancing

Tenant Screening has real advantages for landlords. From reducing your risk to and tenant turnover, to improving everything from cash flow, profits, and your chances of sleeping at night ” tenant screening has become an integral component of smart landlords standard procedures.

Why Prescreen Tenants?

Do not put yourself in a financial risk and just give the lease of your property to a complete stranger. You need to know the background of your prospective tenant like their previous rentals, credit and job history so they well become worth the risk you are taking.

Landlord Risks

Your new tenant could pay rent late”or not at all. They might steal or damage your property. They could abandon your rental unit with no notice, owing you back rent. Weve all heard stories of bad tenants taking appliances and light fixtures when they move out”you dont want that to happen to you!

And theres risk to surrounding neighbors, as well. Being unaware of a persons criminal history before placing them in your rental property is just not a good idea. Not only are neighboring adults and children at risk of being harmed, but you, as the landlord, could be held liable for your tenants actions. In a litigious society, mitigating your chances of being sued is absolutely necessary.

What Landlords Need to Know

Is the prospective tenant working? If so, how long have they been with the company? Being employed favorable sign. How strong is the tenant’s credit history? Are there liens and judgments against them? What about earlier evictions and other legal problems? Has the prospective tenant been convicted of any crimes and if so, what was the offense?

What a Tenant Screening Report will Reveal

You need to pre-screen your tenants to show that they have an approving history, thus you know their previous landlords, so that you may also assess if they have a history of late payments or evictions.

Is the potential tenant employed? If yes, how long have they been with their boss? Having a job is a positive sign. How well-built is the tenant’s credit history? Are there liens and judgments against them? What about prior evictions and other legal problems? Has the prospective tenant been convicted of any crimes and if so, what was that all about?

To ensure that you have the prospective tenant’s information you must have a criminal background check, thus, you will be able to know the precise name, Social Security Number and current address. It will also ponder you about his criminal record in state, country and national level (subject to state law)

Youll know whether the applicant has been convicted of a crime or not, along with the type of offense, date, and locality. Sex offenses are also reported, but information varies by state. Finally, tenant background checks reveal any aliases used, incarcerations, and whether the potential tenant has been placed on federal terrorist watch lists or is listed as an international narcotics trafficker.

Things to Remember

You must obtain the applicants consent to perform a tenant background check which can be a standard part of your application process. The notification must be a separate document, however. Also, all information you discover from a credit report must be held in strictest confidence, and never shared with third parties. Your applicant may have a right to the report check your states guidelines and the Fair Credit Reporting Act (FCRA) to be sure you are compliant. If you decline an applicant for credit reasons, you must advise them in writing. E-Renter can handle your background screening to ensure you are within the guidelines of the FCRA.

Tenant Screening has become an integral component of smart landlords’ standard procedures. You can get a unique content version of this article from the Uber Article Directory.

Technorati Tags: business, Home, Home Equity Loan, houses, Legal Issues, Mortgage, real estate, rent, screening, security, tenants

The number of homeowners desperately trying to free themselves from rigorous lending practices has increased. People looking for help can hardly get a square answer even to the simplest inquiries. A lot of people thought that altering your loan can damage your credit reputation. This is one of the most common thing people are misinformed about. Also, they thought that foreclosing on your mortgage can forever ban you from getting another mortgage. People are frightened to have their mortgage foreclosed because they thought that this could hurt their credit rating.

Merely stretching out the life of the loan is the most elementary process of loan alteration. For instance, rather than paying a thousand dollars monthly for 30 years, you can pay 500 dollars monthly for 40 years. The time of the mortgage is lengthened, but the monthly payments get cut back greatly. This is naturally the simplest means to explain how loan adjustment works, however the process can be more elaborated. The interest rate can also be conformed, which brings down the monthly payments without needfully switching the duration of the mortgage. And of course it is feasible to both prolong the condition and scale down the interest rate, a double win for the home owner!

Foreclosing a house can cause a lot of money for the lenders and this is one thing not too many people know about. With this ongoing trend in housing market, a lot of lenders would rather make arrangements in a loan term with guaranteed payments than foreclosing your house and try to sell it again in a declining market. With the passing of the President’s Making Home Affordable Plan, there is no better time to get our loan modified than right now.

With the 75-billion enterprise, close to 5 million American homeowners are being assisted by the Making Home Affordable Plan with their loan to avoid foreclosure. If you want your monthly dues to fit your monthly salary you can ask your lender to adjust your loan term. It’s not true at all that loan modification can ruin your credit record. In fact, lenders prefer it to foreclosure.

The Making Home Affordable Plan also contributes to lenders a clear-cut and orderly procedure to abide by when changing home loans: First they lower your interest rate, second they broaden the life of the loan if essential, and then finally they forbear principal on the loan. These three procedures should be able to help all homeowners in need.

To learn more about bad credit home refinance loans, visit metrohomeloans.com You can also visit our partner site to learn more about loans for people with bad credit.

Technorati Tags: business, Finance, Home Equity Loan, Loans, money

Your property may not be in the most ideal situation thanks to the subprime mortgage crisis, but many property developers have found the merits of buying properties to sell them on for profit. Payson, Arizona has been a popular area for this to happen in thanks to its outstanding natural beauty. Here, we look at the top tips if you want to do this for income.

Selling prices need to be as high as possible (after all, they are trying to make a return) but at the same time need to be competitive. Sellers do this by comparing their property with others that have recently sold in the area. They then tweak the prices to the individual circumstances of the house – a fine art that has been perfected by many professionals.

Common renovations that are made by property developers can include simple refurbishments like a lick of paint and garden maintenance. Sometimes, though renovations can be a lot more dramatic, in the hope of adding tens of thousands onto the value of the property. In reality though, the property developers who make these moves are usually very advanced.

It can be said that property development can be incredibly risky. Investing in the wrong house can mean very poor returns. Plus, in the very volatile housing market, anything can happen.

On a MLS, important information about your home is listed – like the size of your home and a brief description about what makes your real estate stand out from all of the others. In some ways, selling your home to the Realtors is as important as selling to the buying customer. This is because Realtors who are interested by your house will offer it to their clients if it is in their price range.

The trends of the buyer change with time – property developers take this into account. For example, with the sudden boom in health and safety – swimming pools have become less of a popular choice with those who are looking to put their foot on the property ladder. Some property developers try and avoid houses which have swimming pools, and certainly avoid building swimming pools on the land that they do purchase – as it is like throwing money down the drain.

There is an old rating that is popular amongst Realtors, and that is whether a house has ‘curb appeal’. When potential customers are having a look around local real estate, their first impression is usually of the outside of the house. Hence, most property developers invest a lot of time on the outside of the property and compare their handiwork with the neighbouring houses.

One tactic that is very popular and is used frequently is the Open House technique. This is usually done towards the beginning of a property being placed on the local housing market. It is not unusual for neighbours to have a look around out of curiosity – but this can be incredibly beneficial to you as this can trigger word-of-mouth that your lovely home is up for sale.

Storage space has become more and more popular around the country. Surprisingly, three-car garages are something that has become particularly popular in Payson. Many developers add storage space in the form of closets, wardrobes and garages to their properties to make sure that they are satisfying the market demand.

If anything should go wrong on the day, you need to make sure that you contact your mover with your queries. Make sure you log down all of the details that are relevant to your transaction. That way, if you have any further queries, requests or issues – you have all of the information handy to give the company.

Using your common sense, getting a little help from your friends and being practical can really help you out when it comes to the big day. Make sure you get prepared well in advance of the moving date. The thing you don’t want to happen is for everything to go pear-shaped because you left it that little bit too late.

There are some things which justify your house being more expensive than others. Rental This can be fantastic if you need to keep up-to-date with the current real estate trends in Payson or the surrounding areas. This is because Realtors who are interested by your house will offer it to their clients if it is in their price range.

Technorati Tags: business, education, Finance, Home Equity Loan, homes, housing, leisure, Mortgage, real estate, retirement, travel

The Pending Home Sales Index is a once monthly published account of all homes that have changed status on the MLS from an active listing (or home for sale) to a pending sale (or home under contract). By accounting for the number of homes pending nationwide the NAR publishes it’s index.

The real estate industry views the index as a sign of future home sales. They do this with the assumption that 80% of all homes pending will close within 2 months and the remainder will close with 4 months.

Though the index is intended to give a look ahead to future Home Sales it may not be very accurate due to several factors. 1. It sample about 1 in 5 MLS transactions 2. It doesn’t track for sale by owners. 3. It doesn’t account for new home sales.

In addition, in a tough mortgage climate such as the one we’re in now, a greater percentage of pending sales will fail to close at all because of lack of financing.The Pending Home Sales Index still has its place, however — it’s a terrific look at the buy-side demand for homes.

We can guage the real estate markets strength based on the Pending Home Sales Index by whether it rises or falls. When it is rising we can be sure that there are presently more buyers in the market and usually more demand brings price increases.

For example, in June 2008, the 2nd time in three months – the PHSI posted a large increase even though economists expected a loss. The Pending Home Sales Index’s rise indicates that the overall market is experiencing a revival for that quarter.

Since the PHSI doesn’t indicate closed transactions we only know that demand is greater and that buyers are finding this a good time to move forward with a purchase. This tracking makes the Pending Home Sales Index a worthwhile source of market data since we know that greater demand will usually result in higher real estate prices in the future.

Technorati Tags: bankruptcy, business, Finance, Foreclosure, Home Equity Loan, home sales, home values, Mortgage, Mortgage Data, real estate, Real estate data, refinancing