Does the typical first-time homebuyer in today's market really understand what type of market we're in? Here is a different way to show this segment of the market that NOW is the right time to buy. Short sale facts and figures are reviewed in addition to a brief overview of the government's latest endeavor to streamline the short sale process. Miscellaneous items: - Title insurance rates are changing in Pennsylvania. Get the facts. - The latest Prudential Homesale commercial is presented. - Changes reviewed in the new PAR agreements for Vacant Land and New Construction. - Market statistics for Central PA for the month of April 2012.

1. Why is now a good time to buy?
• Historically low interest rates
• Wide selection of properties
• Bottom of the market
“What does that mean for me?”

2. National Average Rent

3. Monthly Payment Analysis
Principal & Interest $ 808.34
Taxes ($2,800/yr.) 233.33
Insurance ($400/yr.) 33.33
PMI 50.00
Total Monthly Pymt. $ 1,125.00
$169,315

4. Listed Between $160K - $170K
Dauphin County: 84 homes available

5. Short Sales
SOURCE: Mortgage Bankers Association
• 1.5 million homeowners at least 90 days late on their
mortgage
• 12.5 million homeowners ‘underwater’ in their home

6. Not Going Away Anytime Soon

7. Not Going Away Anytime Soon

8. Not Going Away Anytime Soon

9. Incentive to do Short Sales by Lenders

10. Short Sale Overhaul?!?!
New guidelines adopted by
designed to speed up process.

11. What’s Changed for Short Sales?
New guidelines
effective on June 15
• Lender has 30 days to review and respond to short
sale requests
• If lender needs more than 30 days, they must
provide the borrower weekly updates and a final
response within 60 days

12. What’s Changed for Short Sales?
(Home Affordable Foreclosure Alternative)
• Program is usually used prior to putting the home
on the market to establish an acceptable sales
price
• Same guidelines apply

13. What this Means for Short Sales?
• Make the process much more streamlined
• Make it more transparent
• Reduce excess inventory quicker

14. Penalties for Non-compliance?
• ‘Compensatory’ fees could be due borrowers
• Servicers will be evaluated under the
Servicer Total Achievement & Rewards
Program (STAR) Huh?

15. What this Means for Short Sales?
Will lenders really be able to change?

16. Revised PAR Agreements
New Construction
Agreement
• Expanded broker blocks
• Updated deposit language
• Change in buyer’s financial
status
• Multiple additional clauses to
bring it in line with standard
agreement of sale

17. Revised PAR Agreements
Vacant Land
Agreement
• Expanded broker blocks
• Financing options
• Change in buyer’s financial
status
• Multiple additional clauses to
bring it in line with standard
agreement of sale

18. NEW Title Insurance Rates
• State regulated rates
changing
• Reissue Rate is no
longer an option
• Different rates for sales
vs. re-fi’s
• Rates will go into affect
starting June 1, 2012

19. Prudential Homesale Commercial

20. Absorption Rate Analysis
3 Month Moving Average
February - April 2012

21. Settled Units
Year-to-Date Comparison
through April

22. Average Sales Price
Year-to-Date Comparison
through April

23. Average Days on Market
Year-to-Date Comparison
through April