WASHINGTON – April 30, 2009 – The Atlantic hurricane season starts June 1 – 30 days from now. Since flood insurance takes 30 days to become effective after a homeowner applies, today marks Floridians last chance to get flood insurance by the June 1 debut.
“Past hurricane seasons have shown that storms can form as early as the beginning of June, so property owners can’t afford to wait to buy flood insurance,” says Ed Connor, acting federal insurance administrator and acting assistant administrator, FEMA Mitigation Directorate.
Many homeowners still wrongly believe that their property insurance policy will cover all damage from a hurricane.
“Homeowners insurance doesn’t cover flood damage and, without flood insurance, property owners may have to absorb the financial losses on their own,” says Connor. “Just a few inches of water can cost thousands of dollars in repairs and, in this economy, few can afford that potential drain on their savings.”
Flood insurance is available through about 85 insurance companies in approximately 20,600 participating communities nationwide. National flood insurance is available to renters, business owners and homeowners, even if it is not required by the terms of a mortgage. While the average flood insurance policy costs about $540 a year, homeowners can protect their properties in moderate-to low-risk areas with lower cost Preferred Risk Policies (PRPs) that start at just $119 a year.
Individuals can learn how to prepare for floods, how to purchase a flood insurance policy and the benefits of protecting their properties against flooding by visiting Floodsmart.gov (http://www.floodsmart.gov) or calling (800) 427-2419.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Thursday, April 30, 2009
iPhone app maps nearby home values based on user’s location
SEATTLE – April 30, 2009 – A new iPhone application will allow users to stand in front of a house and see a local map that includes homes’ details and Zillow.com estimates of each home’s estimated value. Thanks to GPS technology, the map will follow the user as he drives or walks.
The Zillow iPhone App allows iPhone users to view the company’s 88 million U.S. homes. Zillow offers an estimated value for 95 percent of the homes in the U.S., though the company calls them “Zestimates,” perhaps because the accuracy of a specific home’s value cannot be considered valid without a more thorough comparative market analysis.
Zillow says the application will include details, photos and contact info for 3.4 million for-sale listings – for sale by agent and also for sale by owner listings. Users can also download data on recently sold homes. Zillow has also added “Make Me Move” listings, which potential sellers can use if they’re willing to move but only if the price is right – and generally higher than comparable market prices.
In addition to using the app when traveling neighborhoods, iPhone users can also search for homes by address, neighborhood, ZIP code or city, even if they’re not nearby. The Zillow iPhone App is free to download, and now available for both the iPhone and iPod touch in Apple’s App Store starting today.
To see a demonstration of the iPhone App, go to: http://www.zillow.com/iphone
© 2009 FLORIDA ASSOCIATION OF REALTORS®
The Zillow iPhone App allows iPhone users to view the company’s 88 million U.S. homes. Zillow offers an estimated value for 95 percent of the homes in the U.S., though the company calls them “Zestimates,” perhaps because the accuracy of a specific home’s value cannot be considered valid without a more thorough comparative market analysis.
Zillow says the application will include details, photos and contact info for 3.4 million for-sale listings – for sale by agent and also for sale by owner listings. Users can also download data on recently sold homes. Zillow has also added “Make Me Move” listings, which potential sellers can use if they’re willing to move but only if the price is right – and generally higher than comparable market prices.
In addition to using the app when traveling neighborhoods, iPhone users can also search for homes by address, neighborhood, ZIP code or city, even if they’re not nearby. The Zillow iPhone App is free to download, and now available for both the iPhone and iPod touch in Apple’s App Store starting today.
To see a demonstration of the iPhone App, go to: http://www.zillow.com/iphone
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Wednesday, April 29, 2009
Home prices don’t decline as much
WASHINGTON – April 29, 2009 – Prices of single-family homes in 20 U.S. metropolitan areas in February were down 18.6 percent from a year earlier, yet the fact that the rate of decline slowed signaled some hope for the housing market, a report said Tuesday.
In 15 markets, annual declines were in excess of 10 percent and average home prices nationwide hit 2003 levels, according to the Standard & Poor’s/Case-Shiller index.
Yet the drop in the 20-city index was less than the 19 percent year-over-year decline in January. Also, it was the first time in 16 months that annual declines didn’t set records. “We ... need a few more months of data before we can determine if home prices are finally turning around,” says David Blitzer of S&P’s index committee.
The National Association of Realtors said last week that home prices rose more than normal from February to March and that the market may be stabilizing. Still, price drops remain brutal, especially in areas where they rose fast. The Case-Shiller index shows the hardest-hit cities in February were Phoenix, Las Vegas and San Francisco.
Prices continue to fall amid a glut of unsold homes, including foreclosed ones, says Lawrence Yun, NAR chief economist. He says prices will keep falling in regions with many foreclosures and strengthen where there are few.
On that front, the Obama administration Tuesday unveiled a plan that it says may reduce payments for up to 1.5 million at-risk homeowners.
Under the plan, the government would tap a $50 billion housing fund to entice mortgage servicers to modify second mortgages and cut monthly payments for borrowers.
Half the troubled mortgages have second loans, given by lenders to help buyers avoid mortgage insurance and reduce their down payments. The second loans make it harder to modify first loans, because more parties are involved, and the home may still be unaffordable even if a first loan is changed, the administration says.
The plan would pay mortgage servicers $500 to modify second loans at 1 percent or 2 percent for five years, if first loans are modified. Servicers would also get $250 a year for three years if borrowers don’t default. Borrowers could get $1,000 over five years to pay down principal.
The plan may encourage modifications because second loans would likely be worthless in a foreclosure, says Ellen Harnick of the Center for Responsible Lending. It could have a significant impact on prices if foreclosures are curbed, she says.
2009 © USA Today. All rights reserved.
In 15 markets, annual declines were in excess of 10 percent and average home prices nationwide hit 2003 levels, according to the Standard & Poor’s/Case-Shiller index.
Yet the drop in the 20-city index was less than the 19 percent year-over-year decline in January. Also, it was the first time in 16 months that annual declines didn’t set records. “We ... need a few more months of data before we can determine if home prices are finally turning around,” says David Blitzer of S&P’s index committee.
The National Association of Realtors said last week that home prices rose more than normal from February to March and that the market may be stabilizing. Still, price drops remain brutal, especially in areas where they rose fast. The Case-Shiller index shows the hardest-hit cities in February were Phoenix, Las Vegas and San Francisco.
Prices continue to fall amid a glut of unsold homes, including foreclosed ones, says Lawrence Yun, NAR chief economist. He says prices will keep falling in regions with many foreclosures and strengthen where there are few.
On that front, the Obama administration Tuesday unveiled a plan that it says may reduce payments for up to 1.5 million at-risk homeowners.
Under the plan, the government would tap a $50 billion housing fund to entice mortgage servicers to modify second mortgages and cut monthly payments for borrowers.
Half the troubled mortgages have second loans, given by lenders to help buyers avoid mortgage insurance and reduce their down payments. The second loans make it harder to modify first loans, because more parties are involved, and the home may still be unaffordable even if a first loan is changed, the administration says.
The plan would pay mortgage servicers $500 to modify second loans at 1 percent or 2 percent for five years, if first loans are modified. Servicers would also get $250 a year for three years if borrowers don’t default. Borrowers could get $1,000 over five years to pay down principal.
The plan may encourage modifications because second loans would likely be worthless in a foreclosure, says Ellen Harnick of the Center for Responsible Lending. It could have a significant impact on prices if foreclosures are curbed, she says.
2009 © USA Today. All rights reserved.
Tuesday, April 28, 2009
Bank of America rebrands mortgage operations
NEW YORK (AP) – April 28, 2009 – Bank of America Corp. has officially dropped the Countrywide Home Loans name as part of its integration of the mortgage lender, which was acquired last year.
Charlotte, N.C.-based Bank of America on Monday renamed its mortgage and home equity lending operations Bank of America Home Loans. The division incorporates Bank of America’s previous lending businesses with those of Countrywide.
The rebranding is being completed Monday to coincide with the beginning of what is traditionally the busiest season for home buying and follows other back-office integration between the lending units, said Barbara Desoer, president of Bank of America Home Loans.
At the height of the housing market, Countrywide was the nation’s largest lender and was heavily involved in subprime lending – loans given to customers with poor credit history. The housing market began to unravel in 2007 as subprime mortgage borrowers increasingly started to default, helping to spawn the credit crisis.
Loan losses have piled up for the company and lending volume is slowing, similar to what many lenders are facing during the ongoing recession and housing market downturn.
During the first quarter, the combined Bank of America and Countrywide mortgage operations funded $89 billion in mortgages and home equity loans. The pair combined to originate $315.33 billion in 2008 and $598.33 billion in 2007.
The new Bank of America Home Loans division will be based in Calabasas, Calif., which was home to Countrywide Financial Corp.
Bank of America agreed to acquire Countrywide in January 2008 in an all-stock deal worth about $4 billion at that time. The deal was valued at about $2.5 billion when the deal closed July 1 because of a drop in Bank of America’s share price.
Copyright © 2009 The Associated Press
Charlotte, N.C.-based Bank of America on Monday renamed its mortgage and home equity lending operations Bank of America Home Loans. The division incorporates Bank of America’s previous lending businesses with those of Countrywide.
The rebranding is being completed Monday to coincide with the beginning of what is traditionally the busiest season for home buying and follows other back-office integration between the lending units, said Barbara Desoer, president of Bank of America Home Loans.
At the height of the housing market, Countrywide was the nation’s largest lender and was heavily involved in subprime lending – loans given to customers with poor credit history. The housing market began to unravel in 2007 as subprime mortgage borrowers increasingly started to default, helping to spawn the credit crisis.
Loan losses have piled up for the company and lending volume is slowing, similar to what many lenders are facing during the ongoing recession and housing market downturn.
During the first quarter, the combined Bank of America and Countrywide mortgage operations funded $89 billion in mortgages and home equity loans. The pair combined to originate $315.33 billion in 2008 and $598.33 billion in 2007.
The new Bank of America Home Loans division will be based in Calabasas, Calif., which was home to Countrywide Financial Corp.
Bank of America agreed to acquire Countrywide in January 2008 in an all-stock deal worth about $4 billion at that time. The deal was valued at about $2.5 billion when the deal closed July 1 because of a drop in Bank of America’s share price.
Copyright © 2009 The Associated Press
Who Owns My Mortgage? by Ralph Roberts
When trying to contact your lender to work out a payment plan or some other deal, knowing who owns your mortgage can be very helpful. Unfortunately finding out is not as easy as it sounds. You should be able to call the phone number on your last mortgage statement or the number in your payment coupon book and connect directly with your lender. More often than not, this merely puts you in touch with the servicer – the business that collects and processes your payments. In some cases, the servicer is prohibited from divulging the true identity of your lender. In other cases, the person you're dealing with has no idea who your lender is.
Mortgages are often sliced and diced and repackaged into mortgage backed securities (MBS's) that are sold and traded on Wall Street. Many investors subscribe to an automated system called MERS (Mortgage Electronic Registration System) that keeps track of who owns the mortgage and note as it changes hands among investors, as well as who services it for that investor. MERS can provide another level of anonymity to the process. On many mortgages, the Mortgagee (the party that was granted the mortgage) is listed only as MOM (MERS as Original Mortgagee). No, that doesn't mean you can call your mom to find out who owns your mortgage note. It means you have to try to look it up in the MERS registry. Customers trying to look up the investor on the MERS registry will not find it. MERS makes the name and contact information of the servicer available, but not the name and contact of the investor. That information is for the servicer or investor to disclose, not MERS.
To add to the confusion, the mortgage meltdown sank many banks and other lending institutions which were taken over by other banks or regulators.
So, what should you do if you're trying to track down your lender? Take the following approach:
1. Call the phone number on your most recent mortgage statement or your payment coupon book. This will put you in touch with the servicer who may also be the lender who owns your mortgage or at least be able to tell you the name of your lender. (Remember, the person may not know or may not be permitted to tell you.)
2. If you have an FHA loan, contact FHA's National Servicing Center to determine who owns your mortgage:
(800) CALL- FHA / (800) 225- 5342
Email hsg-lossmit@hud.gov
Department of Housing and Urban Development National Servicing Center 301 NW 6th Street, Suite 200 Oklahoma City, OK 73102
3. You can try to contact Fannie Mae. If they own the note, they may provide the identity of the investor: 1-800-7FANNIE (1-800-732-6643).
4. If the mortgage is listed as MOM or has a MIN (Mortgage Identification Number) assigned to it, you can search the MERS database by mortgage identification number (MIN), your name and social security number, or the property's address. Dial the toll-free MERS Servicer Identification System at 888-679-6377 (an automated touch-tone system) or search online.
5. If you know the name of the bank or other lending institution that owns your mortgage but have no contact information for them, check out Hope Now .
One of the most important steps to saving your home from foreclosure is to get in touch with your lender immediately. Better yet, hire a qualified attorney with experience in foreclosures and loan modifications to contact your lender on your behalf, so you have legal representation on your side. I can guarantee that your lender has an attorney reviewing the paperwork. You should have one to watch your back, too.
Published: April 27, 2009
Ralph R. Roberts, CRS, GRI is an award-winning and internationally recognized real estate agent, author, coach, and speaker.
Mortgages are often sliced and diced and repackaged into mortgage backed securities (MBS's) that are sold and traded on Wall Street. Many investors subscribe to an automated system called MERS (Mortgage Electronic Registration System) that keeps track of who owns the mortgage and note as it changes hands among investors, as well as who services it for that investor. MERS can provide another level of anonymity to the process. On many mortgages, the Mortgagee (the party that was granted the mortgage) is listed only as MOM (MERS as Original Mortgagee). No, that doesn't mean you can call your mom to find out who owns your mortgage note. It means you have to try to look it up in the MERS registry. Customers trying to look up the investor on the MERS registry will not find it. MERS makes the name and contact information of the servicer available, but not the name and contact of the investor. That information is for the servicer or investor to disclose, not MERS.
To add to the confusion, the mortgage meltdown sank many banks and other lending institutions which were taken over by other banks or regulators.
So, what should you do if you're trying to track down your lender? Take the following approach:
1. Call the phone number on your most recent mortgage statement or your payment coupon book. This will put you in touch with the servicer who may also be the lender who owns your mortgage or at least be able to tell you the name of your lender. (Remember, the person may not know or may not be permitted to tell you.)
2. If you have an FHA loan, contact FHA's National Servicing Center to determine who owns your mortgage:
(800) CALL- FHA / (800) 225- 5342
Email hsg-lossmit@hud.gov
Department of Housing and Urban Development National Servicing Center 301 NW 6th Street, Suite 200 Oklahoma City, OK 73102
3. You can try to contact Fannie Mae. If they own the note, they may provide the identity of the investor: 1-800-7FANNIE (1-800-732-6643).
4. If the mortgage is listed as MOM or has a MIN (Mortgage Identification Number) assigned to it, you can search the MERS database by mortgage identification number (MIN), your name and social security number, or the property's address. Dial the toll-free MERS Servicer Identification System at 888-679-6377 (an automated touch-tone system) or search online.
5. If you know the name of the bank or other lending institution that owns your mortgage but have no contact information for them, check out Hope Now .
One of the most important steps to saving your home from foreclosure is to get in touch with your lender immediately. Better yet, hire a qualified attorney with experience in foreclosures and loan modifications to contact your lender on your behalf, so you have legal representation on your side. I can guarantee that your lender has an attorney reviewing the paperwork. You should have one to watch your back, too.
Published: April 27, 2009
Ralph R. Roberts, CRS, GRI is an award-winning and internationally recognized real estate agent, author, coach, and speaker.
Monday, April 27, 2009
Auction adventure: Home sale brings out buyers
TAMPA, Fla. – April 27, 2009 – Not many people buy the same house twice – with two different women.
Robert Feltner almost did.
Feltner, 33, of Lutz, went with his fiancée to an auction of foreclosed homes last week at the Tampa Convention Center, hoping to find a deal.
He had his sights set on the three-bedroom, three-bath Spring Hill home he previously owned with his ex-wife.
The auction, hosted by Real Estate Disposition Corp., a California-based company, featured 105 houses up for auction, with properties stretching along the Gulf coast from Weeki Wachee to Sarasota.
In all, 75 were sold for $7.1 million, said company spokesman Rick Weinberg. Attendance was estimated at 1,150 people.
Respective bidders ranged from families looking for their first home to older couples looking for an investment property. Some people traveled from across the state, having participated in auctions earlier in the week. Others watched it live on the Internet, placing bids online.
Some of them walked away with a steal, snapping up homes and condominiums – many of which had been vacated by owners who no longer could afford the payments – for nearly half their listed value.
If anyone felt as if they were profiting off someone else’s misfortune, it wasn’t readily apparent.
“It’s all business,” said Diana Alebord of Sarasota. “It’s not personal.”
Feltner sat in the front row of the packed convention hall with his fiancée, Cheryl Robinson, He showed his driver’s license, which still had the Spring Hill property’s address listed as his own.
“We’re kind of buying it for an investment,” he said when asked whether it would be weird to live in the same house with a different woman. “It would be up to her.”
“I don’t think it would be that weird,” 30-year-old Robinson said. “Even if we walk away with nothing, it was exciting to come down here and try.”
The company had 700 properties across the state for sale this week at six auctions from Pensacola to Miami.
Last year, the company auctioned 32,799 homes for a total of $3.4 billion. So far this year, it has auctioned more than 7,650 homes for $750 million.
One reason is that foreclosures have accelerated.
In March, Florida had the fourth-highest foreclosure rate in the nation, according to RealtyTrac Inc.
“We’re very pleased with the results from the Tampa auction,” company Chief Executive Officer Jeff Frieden said in a statement. “Many people walked away with some incredible bargains.”
The rules were strict. Anyone wanting to place a bid had to have $2,500 cash or a cashier’s check. Officials from several lending institutions, including Countrywide and Wells Fargo, waited behind a curtained-off area to meet with winning bidders.
Nathan Ayala and his wife, Paula, drove from Sarasota, their hearts set on a Bradenton property they hoped would be their first home.
Nathan Ayala said he attended an auction three weeks ago and was the high bidder on a property for $35,000. The bank, however, rejected the offer.
This time he brought cash, hoping $70,000 would secure their dream.
It wasn’t to be. The house sold for $82,500. The Ayalas said they aren’t discouraged.
“I know there’s enough homes out there to find what we’re looking for,” he said in an interview the next day.
Many people came to the auction after having visited properties. Alebord, 45, said she inspected three homes, hoping one of them would replace the condominium where she lives. All three were sold before the auction.
Alebord said she felt the presence of the previous owners when she went in person to see her choices.
“You can tell people abandoned it. They left,” she said. “Even though it was in good condition, you could feel the sense of loss.”
Once the auction began, the air inside the large concrete hall became charged with energy. The auctioneer barely breathed as he whipsawed through the listings, increasing the total sale price with each bid. Early sales set the tone: A $265,000 Wesley Chapel home sold for $135,000. A $375,000 New Port Richey house sold for $110,000.
Weinberg said the highest winning bid of the night came on a 1,112-square-foot one-bedroom condominium on Kennedy Boulevard. It was purchased for $141,750, despite having been valued at $340,000.
The lowest winning bid was $22,500 for a three-bedroom, two-bath house on North 16th Street, not far from Ybor City. The home had been valued at $114,600.
Feltner arrived at the auction well before its stated start time of 6:30 p.m. He and Robinson both came ready to buy, for the right price. They each set a personal limit of about $100,000.
“We might buy multiple if we can,” he said. “You can’t pass up a condo for five grand.”
The property he wanted was one of the last to be sold. Hours after arriving, he got his shot and let it go.
The house he previously owned, once valued at $185,500, was sold to someone else for $102,500. The starting bid was $5,000.
“I just didn’t continue to bid on it,” Feltner said in an interview the next day. “We could have bid $105,000 but didn’t want to.”
Copyright © 2009, Tampa Tribune, Fla
Robert Feltner almost did.
Feltner, 33, of Lutz, went with his fiancée to an auction of foreclosed homes last week at the Tampa Convention Center, hoping to find a deal.
He had his sights set on the three-bedroom, three-bath Spring Hill home he previously owned with his ex-wife.
The auction, hosted by Real Estate Disposition Corp., a California-based company, featured 105 houses up for auction, with properties stretching along the Gulf coast from Weeki Wachee to Sarasota.
In all, 75 were sold for $7.1 million, said company spokesman Rick Weinberg. Attendance was estimated at 1,150 people.
Respective bidders ranged from families looking for their first home to older couples looking for an investment property. Some people traveled from across the state, having participated in auctions earlier in the week. Others watched it live on the Internet, placing bids online.
Some of them walked away with a steal, snapping up homes and condominiums – many of which had been vacated by owners who no longer could afford the payments – for nearly half their listed value.
If anyone felt as if they were profiting off someone else’s misfortune, it wasn’t readily apparent.
“It’s all business,” said Diana Alebord of Sarasota. “It’s not personal.”
Feltner sat in the front row of the packed convention hall with his fiancée, Cheryl Robinson, He showed his driver’s license, which still had the Spring Hill property’s address listed as his own.
“We’re kind of buying it for an investment,” he said when asked whether it would be weird to live in the same house with a different woman. “It would be up to her.”
“I don’t think it would be that weird,” 30-year-old Robinson said. “Even if we walk away with nothing, it was exciting to come down here and try.”
The company had 700 properties across the state for sale this week at six auctions from Pensacola to Miami.
Last year, the company auctioned 32,799 homes for a total of $3.4 billion. So far this year, it has auctioned more than 7,650 homes for $750 million.
One reason is that foreclosures have accelerated.
In March, Florida had the fourth-highest foreclosure rate in the nation, according to RealtyTrac Inc.
“We’re very pleased with the results from the Tampa auction,” company Chief Executive Officer Jeff Frieden said in a statement. “Many people walked away with some incredible bargains.”
The rules were strict. Anyone wanting to place a bid had to have $2,500 cash or a cashier’s check. Officials from several lending institutions, including Countrywide and Wells Fargo, waited behind a curtained-off area to meet with winning bidders.
Nathan Ayala and his wife, Paula, drove from Sarasota, their hearts set on a Bradenton property they hoped would be their first home.
Nathan Ayala said he attended an auction three weeks ago and was the high bidder on a property for $35,000. The bank, however, rejected the offer.
This time he brought cash, hoping $70,000 would secure their dream.
It wasn’t to be. The house sold for $82,500. The Ayalas said they aren’t discouraged.
“I know there’s enough homes out there to find what we’re looking for,” he said in an interview the next day.
Many people came to the auction after having visited properties. Alebord, 45, said she inspected three homes, hoping one of them would replace the condominium where she lives. All three were sold before the auction.
Alebord said she felt the presence of the previous owners when she went in person to see her choices.
“You can tell people abandoned it. They left,” she said. “Even though it was in good condition, you could feel the sense of loss.”
Once the auction began, the air inside the large concrete hall became charged with energy. The auctioneer barely breathed as he whipsawed through the listings, increasing the total sale price with each bid. Early sales set the tone: A $265,000 Wesley Chapel home sold for $135,000. A $375,000 New Port Richey house sold for $110,000.
Weinberg said the highest winning bid of the night came on a 1,112-square-foot one-bedroom condominium on Kennedy Boulevard. It was purchased for $141,750, despite having been valued at $340,000.
The lowest winning bid was $22,500 for a three-bedroom, two-bath house on North 16th Street, not far from Ybor City. The home had been valued at $114,600.
Feltner arrived at the auction well before its stated start time of 6:30 p.m. He and Robinson both came ready to buy, for the right price. They each set a personal limit of about $100,000.
“We might buy multiple if we can,” he said. “You can’t pass up a condo for five grand.”
The property he wanted was one of the last to be sold. Hours after arriving, he got his shot and let it go.
The house he previously owned, once valued at $185,500, was sold to someone else for $102,500. The starting bid was $5,000.
“I just didn’t continue to bid on it,” Feltner said in an interview the next day. “We could have bid $105,000 but didn’t want to.”
Copyright © 2009, Tampa Tribune, Fla
Thursday, April 23, 2009
Florida’s existing home, condo sales rise in March 2009
ORLANDO, Fla. – April 23, 2009 – Florida’s existing home sales increased in March, making it the seventh month in a row that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). March’s statewide sales also increased over the previous month’s sales level in both the existing home and existing condo markets.
Existing home sales rose 30 percent last month with a total of 13,085 homes sold statewide compared to 10,080 homes sold in March 2008, according to FAR. Statewide existing home sales in March were 32.7 percent higher than February’s statewide sales.
Florida Realtors also reported a 25 percent rise in statewide sales of existing condominiums in March, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared to year-ago levels. Statewide existing condo sales last month increased 37.2 percent over the total units sold in February.
Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in March and 13 MSAs also showed gains in condo sales. It marks the ninth consecutive month that a majority of markets have reported increased sales.
Florida’s median sales price for existing homes last month was $141,300; a year ago, it was $201,700 for a 30 percent decrease. Industry analysts with the National Association of Realtors® (NAR) report there is a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in February 2009 was $164,600, down 15 percent from a year earlier, according to NAR. In California, the statewide median resales price was $247,590 in February; in Massachusetts, it was $252,500; in Maryland, it was $253,200; and in New York, it was $210,000.
NAR’s latest housing industry outlook reported that entry-level buyers are seeking bargains, which resulted in sales of distressed properties accounting for 40 to 45 percent of February’s transactions. “Given the downward distortion in price comparisons due to distressed sales, it’s important for owners to keep in mind that this doesn’t equate to a similar loss of value for traditional homes in good condition,” said NAR Chief Economist Lawrence Yun.
In Florida’s year-to-year comparison for condos, 4,388 units sold statewide compared to 3,503 units in March 2008 for a 25 percent increase. The statewide existing condo median sales price last month was $108,700; in March 2008 it was $172,300 for a 37 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $172,200 in February 2009.
Interest rates for a 30-year fixed-rate mortgage averaged 5 percent last month, down significantly from the average rate of 5.97 percent in March 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Among the state’s large to medium-size markets, the Melbourne-Titusville-Palm Bay MSA reported a total of 539 homes sold in March compared to 445 homes a year ago for a 21 percent increase. The existing home median sales price was $123,700; a year ago, it was $159,000 for a 22 percent decrease. In the year-to-year comparison for the existing condo market, a total of 113 units sold in the MSA last month, up 24 percent compared to 91 condos sold the previous March. The market’s existing condo median price was $123,100; a year ago, it was $164,300 for a 25 percent decrease.
2009 © FLORIDA ASSOCIATION OF REALTORS
Existing home sales rose 30 percent last month with a total of 13,085 homes sold statewide compared to 10,080 homes sold in March 2008, according to FAR. Statewide existing home sales in March were 32.7 percent higher than February’s statewide sales.
Florida Realtors also reported a 25 percent rise in statewide sales of existing condominiums in March, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared to year-ago levels. Statewide existing condo sales last month increased 37.2 percent over the total units sold in February.
Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in March and 13 MSAs also showed gains in condo sales. It marks the ninth consecutive month that a majority of markets have reported increased sales.
Florida’s median sales price for existing homes last month was $141,300; a year ago, it was $201,700 for a 30 percent decrease. Industry analysts with the National Association of Realtors® (NAR) report there is a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in February 2009 was $164,600, down 15 percent from a year earlier, according to NAR. In California, the statewide median resales price was $247,590 in February; in Massachusetts, it was $252,500; in Maryland, it was $253,200; and in New York, it was $210,000.
NAR’s latest housing industry outlook reported that entry-level buyers are seeking bargains, which resulted in sales of distressed properties accounting for 40 to 45 percent of February’s transactions. “Given the downward distortion in price comparisons due to distressed sales, it’s important for owners to keep in mind that this doesn’t equate to a similar loss of value for traditional homes in good condition,” said NAR Chief Economist Lawrence Yun.
In Florida’s year-to-year comparison for condos, 4,388 units sold statewide compared to 3,503 units in March 2008 for a 25 percent increase. The statewide existing condo median sales price last month was $108,700; in March 2008 it was $172,300 for a 37 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $172,200 in February 2009.
Interest rates for a 30-year fixed-rate mortgage averaged 5 percent last month, down significantly from the average rate of 5.97 percent in March 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Among the state’s large to medium-size markets, the Melbourne-Titusville-Palm Bay MSA reported a total of 539 homes sold in March compared to 445 homes a year ago for a 21 percent increase. The existing home median sales price was $123,700; a year ago, it was $159,000 for a 22 percent decrease. In the year-to-year comparison for the existing condo market, a total of 113 units sold in the MSA last month, up 24 percent compared to 91 condos sold the previous March. The market’s existing condo median price was $123,100; a year ago, it was $164,300 for a 25 percent decrease.
2009 © FLORIDA ASSOCIATION OF REALTORS
Wednesday, April 22, 2009
Program a boost to new homebuyers
TAMPA, Fla. – April 22, 2009 – Experts say it’s a first-time homebuyer’s market. Low interest rates and falling housing prices are good news for renters ready to make a move, and one local group aims to help such buyers through the process – from securing a mortgage to coming up with the cash to make a downpayment on the home of their dreams.
The Realtors Care Foundation, a nonprofit arm of the Greater Tampa Association of Realtors, was established in 2007 to provide educational and housing programs and services to Hillsborough County residents.
The group recently launched a downpayment assistance program to help prospective first-time homebuyers.
“People who want to purchase a home in Hillsborough County need to be aware that we are here to help,” said Jim Selvey, foundation president.
To qualify for the program, applicants – first-time homebuyers or those who have not owned a home in the past three years – must purchase a single-family house, condominium or townhouse and meet income limits established by the U.S. Department of Housing and Urban Development.
Applicants also must agree to remain current on property taxes and homeowner association fees and certify that they will remain owners for a minimum of five years.
The group holds fundraisers and solicits private donations to fund the program. Grants are reviewed and awarded by committee.
“The goal is to help as many as we can,” Selvey said.
The foundation will hold a golf tournament to benefit its charitable programs May 28 at Buckhorn Springs Golf and Country Club in Valrico. Registration includes 18 holes, cart and lunch and costs $90. To sign up, contact Sarah Hepburn at (813) 879-7010.
For information about the Realtors Care Foundation or down-payment assistance grants, call (813) 879-7010 or go to www.realtorscareofgtar.org or call Michael Mundy w/Landsburg Realty 813-679-2754.
Copyright © 2009 Tampa Tribune, Fla
The Realtors Care Foundation, a nonprofit arm of the Greater Tampa Association of Realtors, was established in 2007 to provide educational and housing programs and services to Hillsborough County residents.
The group recently launched a downpayment assistance program to help prospective first-time homebuyers.
“People who want to purchase a home in Hillsborough County need to be aware that we are here to help,” said Jim Selvey, foundation president.
To qualify for the program, applicants – first-time homebuyers or those who have not owned a home in the past three years – must purchase a single-family house, condominium or townhouse and meet income limits established by the U.S. Department of Housing and Urban Development.
Applicants also must agree to remain current on property taxes and homeowner association fees and certify that they will remain owners for a minimum of five years.
The group holds fundraisers and solicits private donations to fund the program. Grants are reviewed and awarded by committee.
“The goal is to help as many as we can,” Selvey said.
The foundation will hold a golf tournament to benefit its charitable programs May 28 at Buckhorn Springs Golf and Country Club in Valrico. Registration includes 18 holes, cart and lunch and costs $90. To sign up, contact Sarah Hepburn at (813) 879-7010.
For information about the Realtors Care Foundation or down-payment assistance grants, call (813) 879-7010 or go to www.realtorscareofgtar.org or call Michael Mundy w/Landsburg Realty 813-679-2754.
Copyright © 2009 Tampa Tribune, Fla
Tuesday, April 21, 2009
Housing Recovery Hits Florida Real Estate First
In what is an unprecedented move, Florida is pulling out of the housing downturn first, according to a new report by Housing Predictor.
(EMAILWIRE.COM, April 21, 2009 ) Destin, Florida -- In an unprecedented turn of events Florida is pulling out of the housing downturn first, according to a new report by Housing Predictor.
In previous real estate depressions California has been the first state in the nation to signal a turn around in the housing market. But higher home and condo sales in Florida that have lasted for more than a half year and increasing buyer inquiries signal the Sunshine State is making a turn for the better in real estate.
Record population growth in Florida may contribute to the more promising market after nearly a four year slow down in home sales, which started after the state was battered by a series of hurricanes and the financial crisis. As a result home sales turned sluggish in Florida before any where else in the country.
However, nearly two-thirds of all sales are foreclosures and short sale properties, many of which are not counted by real estate agents since they are sold at auction or by banks directly to home buyers. The new trend demonstrates better times are on the horizon for housing markets troubled by the credit crisis.
More banks in many Florida housing markets are beginning to make mortgages, especially locally based lenders, and nearly a fifth of all sales are owner financed.
Housing Predictor forecasts more than 250 local housing markets in all 50 states, and regularly tracks markets from coast to coast. Search foreclosures, check your market forecast and other real estate news at http://www.housingpredictor.com
(EMAILWIRE.COM, April 21, 2009 ) Destin, Florida -- In an unprecedented turn of events Florida is pulling out of the housing downturn first, according to a new report by Housing Predictor.
In previous real estate depressions California has been the first state in the nation to signal a turn around in the housing market. But higher home and condo sales in Florida that have lasted for more than a half year and increasing buyer inquiries signal the Sunshine State is making a turn for the better in real estate.
Record population growth in Florida may contribute to the more promising market after nearly a four year slow down in home sales, which started after the state was battered by a series of hurricanes and the financial crisis. As a result home sales turned sluggish in Florida before any where else in the country.
However, nearly two-thirds of all sales are foreclosures and short sale properties, many of which are not counted by real estate agents since they are sold at auction or by banks directly to home buyers. The new trend demonstrates better times are on the horizon for housing markets troubled by the credit crisis.
More banks in many Florida housing markets are beginning to make mortgages, especially locally based lenders, and nearly a fifth of all sales are owner financed.
Housing Predictor forecasts more than 250 local housing markets in all 50 states, and regularly tracks markets from coast to coast. Search foreclosures, check your market forecast and other real estate news at http://www.housingpredictor.com
Monday, April 20, 2009
For sale by tweet: Social networking to sell homes
LOS ANGELES (AP) – April 20, 2009 – When you sign up for Facebook or Twitter, you expect to get a stream of random messages from the people that make up your virtual social network – but pitches on homes for sale?
Real estate agents and others are trolling for clients on these and other popular online social networking sites, mixing home huckstering with their online networking. But is this a good way to sell a home or are agents’ sales pitches getting lost in the post?
Agents who use the social networking sites to market properties say they hope to generate referrals – just as you might tip off a friend about a new for-sale sign on a lawn.
“Tweeting is the same way,” says Duane Hopper, an owner and broker at Century 21 Real Estate Center in Seattle, referring to the term for posting messages on the microblogging Web site Twitter.com.
“There is a multiplier effect that can take place, particularly on very hot information,” adds Hopper, who posts information about homes he’s trying to sell and promotes himself on Twitter, Facebook, LinkedIn and ActiveRain.
Twitter lets users create profiles where they can post messages of up to 140 characters that can be viewed by anyone with Internet access on a PC or mobile phone.
Hopper started using the site last fall. Since then, he’s racked up more than 600 people who have elected to “follow” his tweets. (By comparison, celebrities such as Britney Spears have hundreds of thousands of dedicated tweet recipients.)
A recent look at Hopper’s Twitter page revealed more than 20 tweets, although not all the posts were real estate-related.
Hopper liberally mixes tweets about the Mariners baseball team – “Getting excited for Home Opening Day for the 5-2 Mariners” – with posts on his daily real estate rounds: “On my way to paint For Sale Post at our hot new Kirkland listing. Can’t anyone get the color right?”
But often, Hopper’s tweets are listings of homes for sale that read like word-stingy newspaper classified ads: “At Juanita Multi-level photo shoot,” started a recent post. “Listing coming. Hurry if you have buyers. Under $500K, 2,190 feet. 3Bed 2.5Bth.”
Hopper also sometimes includes Web links to a virtual tour of the home.
Jo-Ann Cervin, a buyer’s agent with ZipRealty in Las Vegas, began using the site just last week under the handle “LV_Cheap_Houses,” but she’s wasted little time posting a barrage of bulletins urging readers to buy now.
So far, she’s got 44 users subscribing to her tweets, which mostly consist of homes for sale or calls to action like this one: “Las Vegas bank owned properties are seeing multiple offers! The great deals are going QUICK!”
Cervin isn’t worried that the barrage of home listings via tweets will scare off those who subscribe to her missives.
“They’re choosing to connect with me,” Cervin says. “I’m not spamming.”
On Facebook, which boasts more than 200 million active users, many real estate firms have profile pages that sometimes feature home listings and discussions about real estate. Some agents set up commercial Facebook pages, which are open to all users.
Many agents use one of several Facebook applications designed to highlight home listings on their profile page, such as eListIt’s My Listings widget. Others let users pipe in video tours.
John Ammirati, an associate broker with Century 21 Prevete in Long Island, N.Y., created a Facebook page for his company so his agents log in and post listings and information about open houses.
“We’re just starting to get into video,” he says.
Hopper takes a more subtle approach on Facebook, however.
He tries to keep it personal, posting photos of a recent vacation, for example, while only sprinkling in real estate listings and links to virtual home tours.
“I don’t want to overwhelm people,” Hopper says. “It’s like getting unsolicited advertising if you overdo it.”
Cervin also only recently began playing up her real estate business on Facebook. She hopes her friends will refer her to would-be homebuyers. She’s also on ActiveRain, where she blogs about real estate and, ultimately, hopes to nab some client referrals from other agents on the site.
Still, Cervin says she hasn’t received any business directly from her social networking activities – yet.
“At this point it’s free advertising,” she says.
Hopper concedes he also has yet to find a buyer directly through social networking. But he’s confident it is helping, even if only to broaden the chance that another real estate agent in his network will see his home sale tweets and recommend a listing to a client.
“I’m getting good activity on my properties,” Hopper says. “I feel that some of it is coming from that.”
For anyone considering selling their home on their own, the sites may help get the word out. The trick is getting connected to as many real estate professionals as possible.
A search for the term “real estate” in Twitter turns up hundreds of people or businesses tweeting on the subject. So one way is to sign up to receive real estate agents’ tweets and then engage them with details of your home.
(Full disclosure: the Associated Press sends news headlines on Twitter, and searches tweets for breaking news and photos.)
Ammirati, who began using Twitter in December and now fires off tweets six days a week to nearly 600 people on the site, suggests finding real estate-oriented groups with more than 100 tweet trackers and join the pack.
Another option is to use applications like twitpick, which allows users to share photos through Twitter.
Ammirati, who also uses Facebook, ActiveRain and LinkedIn, now takes photos of homes being listed for sale with his firm and posts them on Twitter via twitpick.
Social network has begun to pay off for Ammirati.
Since he and his agents began using Facebook and other sites about a year ago, the efforts have brought in at least four clients.
“Part of it is the agents themselves reconnecting with some people in the past,” Ammirati says. “Sometimes it’s hard to quantify how this networking leads exactly to (new clients).”
Real estate agents and others are trolling for clients on these and other popular online social networking sites, mixing home huckstering with their online networking. But is this a good way to sell a home or are agents’ sales pitches getting lost in the post?
Agents who use the social networking sites to market properties say they hope to generate referrals – just as you might tip off a friend about a new for-sale sign on a lawn.
“Tweeting is the same way,” says Duane Hopper, an owner and broker at Century 21 Real Estate Center in Seattle, referring to the term for posting messages on the microblogging Web site Twitter.com.
“There is a multiplier effect that can take place, particularly on very hot information,” adds Hopper, who posts information about homes he’s trying to sell and promotes himself on Twitter, Facebook, LinkedIn and ActiveRain.
Twitter lets users create profiles where they can post messages of up to 140 characters that can be viewed by anyone with Internet access on a PC or mobile phone.
Hopper started using the site last fall. Since then, he’s racked up more than 600 people who have elected to “follow” his tweets. (By comparison, celebrities such as Britney Spears have hundreds of thousands of dedicated tweet recipients.)
A recent look at Hopper’s Twitter page revealed more than 20 tweets, although not all the posts were real estate-related.
Hopper liberally mixes tweets about the Mariners baseball team – “Getting excited for Home Opening Day for the 5-2 Mariners” – with posts on his daily real estate rounds: “On my way to paint For Sale Post at our hot new Kirkland listing. Can’t anyone get the color right?”
But often, Hopper’s tweets are listings of homes for sale that read like word-stingy newspaper classified ads: “At Juanita Multi-level photo shoot,” started a recent post. “Listing coming. Hurry if you have buyers. Under $500K, 2,190 feet. 3Bed 2.5Bth.”
Hopper also sometimes includes Web links to a virtual tour of the home.
Jo-Ann Cervin, a buyer’s agent with ZipRealty in Las Vegas, began using the site just last week under the handle “LV_Cheap_Houses,” but she’s wasted little time posting a barrage of bulletins urging readers to buy now.
So far, she’s got 44 users subscribing to her tweets, which mostly consist of homes for sale or calls to action like this one: “Las Vegas bank owned properties are seeing multiple offers! The great deals are going QUICK!”
Cervin isn’t worried that the barrage of home listings via tweets will scare off those who subscribe to her missives.
“They’re choosing to connect with me,” Cervin says. “I’m not spamming.”
On Facebook, which boasts more than 200 million active users, many real estate firms have profile pages that sometimes feature home listings and discussions about real estate. Some agents set up commercial Facebook pages, which are open to all users.
Many agents use one of several Facebook applications designed to highlight home listings on their profile page, such as eListIt’s My Listings widget. Others let users pipe in video tours.
John Ammirati, an associate broker with Century 21 Prevete in Long Island, N.Y., created a Facebook page for his company so his agents log in and post listings and information about open houses.
“We’re just starting to get into video,” he says.
Hopper takes a more subtle approach on Facebook, however.
He tries to keep it personal, posting photos of a recent vacation, for example, while only sprinkling in real estate listings and links to virtual home tours.
“I don’t want to overwhelm people,” Hopper says. “It’s like getting unsolicited advertising if you overdo it.”
Cervin also only recently began playing up her real estate business on Facebook. She hopes her friends will refer her to would-be homebuyers. She’s also on ActiveRain, where she blogs about real estate and, ultimately, hopes to nab some client referrals from other agents on the site.
Still, Cervin says she hasn’t received any business directly from her social networking activities – yet.
“At this point it’s free advertising,” she says.
Hopper concedes he also has yet to find a buyer directly through social networking. But he’s confident it is helping, even if only to broaden the chance that another real estate agent in his network will see his home sale tweets and recommend a listing to a client.
“I’m getting good activity on my properties,” Hopper says. “I feel that some of it is coming from that.”
For anyone considering selling their home on their own, the sites may help get the word out. The trick is getting connected to as many real estate professionals as possible.
A search for the term “real estate” in Twitter turns up hundreds of people or businesses tweeting on the subject. So one way is to sign up to receive real estate agents’ tweets and then engage them with details of your home.
(Full disclosure: the Associated Press sends news headlines on Twitter, and searches tweets for breaking news and photos.)
Ammirati, who began using Twitter in December and now fires off tweets six days a week to nearly 600 people on the site, suggests finding real estate-oriented groups with more than 100 tweet trackers and join the pack.
Another option is to use applications like twitpick, which allows users to share photos through Twitter.
Ammirati, who also uses Facebook, ActiveRain and LinkedIn, now takes photos of homes being listed for sale with his firm and posts them on Twitter via twitpick.
Social network has begun to pay off for Ammirati.
Since he and his agents began using Facebook and other sites about a year ago, the efforts have brought in at least four clients.
“Part of it is the agents themselves reconnecting with some people in the past,” Ammirati says. “Sometimes it’s hard to quantify how this networking leads exactly to (new clients).”
Consumer advocate: Short sales can turn to no-sales
JACKSONVILLE, Fla. – April 17, 2009 – House hunters hoping to take advantage of falling prices and low mortgage rates are likely to run across short sales in today’s real estate market.
Don’t get caught short by the twist and turns involved in the deals.
In a short sale, the seller and buyer agree to a price lower than what the seller needs to pay off the mortgage and various costs associated with selling a home.
The seller asks the mortgage holder to write off the difference. There’s no guarantee the bank will accept that loss, so the entire deal can turn into a no-sale.
But home buyers able to handle that uncertainty can zero in on some attractively priced homes. Financially pressed sellers are eager to get a deal, and lenders don’t want to be saddled with the property through foreclosure. The challenge for buyers is the waiting game – it can take 60 days or more for the mortgage holder to make its decision, said Jeff Marks, a real estate lawyer with Ryan and Marks Attorneys in Jacksonville.
“They have to have a stomach for it because it will take longer,” he said. “But if they can wait it out, they will get a wonderful deal financially.”
The number of short sales has been rising, according to the National Association of Realtors.
The Northeast Florida Association of Realtors shows about 18 percent of the residential properties on its multiple listing service are classified as short sales. The Northeast Florida Association of Realtors covers Duval, Clay, Putnam and part of the northeast portion of St. Johns counties.
Short sales aren’t for everyone, said Sam Kellum, a Realtor with Watson Realty who is president of the Amelia Island-Nassau County Association of Realtors.
“There are a lot of pitfalls to short sales, and buyers need to be aware of them,” Kellum said.
He said it’s possible the seller will sign purchase agreements with more than one buyer and send all those agreements to the mortgage holder for review. The seller can do that because the purchase agreement will say the sale still depends on the mortgage holder accepting a payoff for less than what’s owed. If you sign a purchase agreement with a price of $180,000 and another prospective buyer subsequently offers $190,000, the higher bid has a clear advantage.
Also, short-sale homes are sold “as is” because the owner, struggling to pay the mortgage, isn’t going to pay for any repairs.
The owner might have fallen behind on routine maintenance and termite treatment, said Ulrich Leinhase, owner of Maximum Success Inc., in Jacksonville, which does seminars around the state for real estate professionals. He said a home inspection is essential in short sales.
With all that in mind, Leinhase said, getting a short sale to the finish line depends on open communication between buyer and seller.
He said one of the first questions any buyer should ask is whether a home is a short sale. A buyer’s Realtor can easily check the Multiple Listing Service for that information from the get-go.
If the seller agrees to a lower price during negotiations, the buyer should ask again whether the seller will be seeking approval for a short sale at the lower price. Sometimes, the price cut will put the home into short-sale territory.
There is no state or federal law that requires a seller to provide any disclosure forms for a short sale.
Local Realtor boards set their own policies about how they will handle such disclosures for Realtor-assisted sales, so the disclosure will vary by area.
The Northeast Florida Association of Realtors has required its Realtors to include a short-sale form in purchase agreements since 2005.
In November, the association added a provision that buyers have a right to know about other purchase agreements the seller signs with interested buyers.
Ryan, who is general counsel for the association, said that gives a prospective buyer a chance to back out if someone else offers a higher price, rather than wait months without realizing his offer is no longer the best one on the table.
Another key feature for buyers will be the length of time given to the seller for getting the mortgage holder’s approval. The time constraint is negotiable. Ryan said lenders are swamped. Their justification for accepting a short sale is they can avoid the expense of foreclosing on the property. They balance that against how big a financial hit they’ll take by writing off a portion of what’s owed on the mortgage. The bigger the write-off, the longer it will take to get a decision, Leinhase said.
“It shouldn’t be called the short sale,” he said wryly. “It should be called the long sale.”
Copyright © 2009 The Florida Times-Union
Don’t get caught short by the twist and turns involved in the deals.
In a short sale, the seller and buyer agree to a price lower than what the seller needs to pay off the mortgage and various costs associated with selling a home.
The seller asks the mortgage holder to write off the difference. There’s no guarantee the bank will accept that loss, so the entire deal can turn into a no-sale.
But home buyers able to handle that uncertainty can zero in on some attractively priced homes. Financially pressed sellers are eager to get a deal, and lenders don’t want to be saddled with the property through foreclosure. The challenge for buyers is the waiting game – it can take 60 days or more for the mortgage holder to make its decision, said Jeff Marks, a real estate lawyer with Ryan and Marks Attorneys in Jacksonville.
“They have to have a stomach for it because it will take longer,” he said. “But if they can wait it out, they will get a wonderful deal financially.”
The number of short sales has been rising, according to the National Association of Realtors.
The Northeast Florida Association of Realtors shows about 18 percent of the residential properties on its multiple listing service are classified as short sales. The Northeast Florida Association of Realtors covers Duval, Clay, Putnam and part of the northeast portion of St. Johns counties.
Short sales aren’t for everyone, said Sam Kellum, a Realtor with Watson Realty who is president of the Amelia Island-Nassau County Association of Realtors.
“There are a lot of pitfalls to short sales, and buyers need to be aware of them,” Kellum said.
He said it’s possible the seller will sign purchase agreements with more than one buyer and send all those agreements to the mortgage holder for review. The seller can do that because the purchase agreement will say the sale still depends on the mortgage holder accepting a payoff for less than what’s owed. If you sign a purchase agreement with a price of $180,000 and another prospective buyer subsequently offers $190,000, the higher bid has a clear advantage.
Also, short-sale homes are sold “as is” because the owner, struggling to pay the mortgage, isn’t going to pay for any repairs.
The owner might have fallen behind on routine maintenance and termite treatment, said Ulrich Leinhase, owner of Maximum Success Inc., in Jacksonville, which does seminars around the state for real estate professionals. He said a home inspection is essential in short sales.
With all that in mind, Leinhase said, getting a short sale to the finish line depends on open communication between buyer and seller.
He said one of the first questions any buyer should ask is whether a home is a short sale. A buyer’s Realtor can easily check the Multiple Listing Service for that information from the get-go.
If the seller agrees to a lower price during negotiations, the buyer should ask again whether the seller will be seeking approval for a short sale at the lower price. Sometimes, the price cut will put the home into short-sale territory.
There is no state or federal law that requires a seller to provide any disclosure forms for a short sale.
Local Realtor boards set their own policies about how they will handle such disclosures for Realtor-assisted sales, so the disclosure will vary by area.
The Northeast Florida Association of Realtors has required its Realtors to include a short-sale form in purchase agreements since 2005.
In November, the association added a provision that buyers have a right to know about other purchase agreements the seller signs with interested buyers.
Ryan, who is general counsel for the association, said that gives a prospective buyer a chance to back out if someone else offers a higher price, rather than wait months without realizing his offer is no longer the best one on the table.
Another key feature for buyers will be the length of time given to the seller for getting the mortgage holder’s approval. The time constraint is negotiable. Ryan said lenders are swamped. Their justification for accepting a short sale is they can avoid the expense of foreclosing on the property. They balance that against how big a financial hit they’ll take by writing off a portion of what’s owed on the mortgage. The bigger the write-off, the longer it will take to get a decision, Leinhase said.
“It shouldn’t be called the short sale,” he said wryly. “It should be called the long sale.”
Copyright © 2009 The Florida Times-Union
Friday, April 17, 2009
Shopping for a house? Timing is looking good...
ORLANDO, Fla. – April 17, 2009 – After more than a year of free-falling sales and prices, Central Florida’s battered housing market is getting support from both first-time home buyers and investors taking advantage of record foreclosures and distress sales across the region.
With mortgage-interest rates at record lows and an $8,000 tax credit for buyers who haven’t owned a home for at least the past three years, existing-home sales in the region have started rising again compared with a year ago. And half the deals involve bank-owned foreclosures or “short sales” – properties for which the bank has agreed to take less than the amount owed on the mortgage.
Who’s buying them? Anecdotal reports and a few surveys indicate that first-time home buyers, who don’t have to worry about selling an existing property, and investors venturing into the second-home market for the first time or searching for bargains to add to their inventory, are responsible for most of the sales.
Bulk auctions of both homes and condominiums are creating buzz in the local market, and bankers are saying yes more often to short sales, which spare them the expense of a full-blown foreclosure.
“Lenders are becoming more responsive,” said Patrick Higgins, an Orlando-area Realtor, though he noted that the short-sale process still remains slower and more cumbersome than a regular, open-market sale between a willing seller and a qualified buyer.
“Agents are learning the system,” he said, and now can shave as much as two months off the typical six- to nine-month waiting period before a short sale reaches a closing date.
Greg Clarkson, 39, is among the growing number of professional investors scouring the landscape for deals.
The Seminole County resident bought a bank-repo home in the posh Sweetwater subdivision about a year ago, made $75,000 in improvements and now lives there. He also owns five investment properties; two of them are long-term rentals, and he’s doing rehab work on the others in anticipation of selling them for a profit. He’s also eyeing a 26-unit apartment complex that he figures is a good buy right now.
“I’m taking my time, hand-picking pristine deals,” Clarkson said Wednesday while on the road looking at properties for sale.
How is he financing the acquisitions? Private investors, friends and acquaintances who share in the profits. “I’m out of pocket no money,” he said.
Breakdowns of distress-sale buyers aren’t available, but first-time buyers accounted for 65 percent of all existing-home sales nationally during the first three months of the year, up from 46 percent a year ago, according to a survey by HouseHunt Inc.
The consumer-oriented Internet company also found that certain markets and submarkets in Florida – including Orlando, Longwood, Palm Bay and the Baldwin Park section of northeast Orlando – reported the “greatest activity” from first-time buyers. Repeat buyers, meanwhile, were the more active group locally in the MetroWest section of southwest Orlando and in the nearby Bay Hill section of Orange County.
The survey also noted that 48 percent of sellers nationally are now getting multiple purchase offers for a single property, nearly double the 25 percent rate during the same period last year.
The Orlando Realtors’ foreclosure analysis, released Monday, showed for the first time the extent of distress sales in the local market. Of the 1,653 homes sold by the association’s member agents in the core Orlando market last month, 700 were bank-owned repos and another 111 were distress sales of one sort or another.
And the amount of financial duress involved in the deal greatly affected the final price: According to the Realtors’ report, bank-owned homes and condos sold for a median price of only $95,000, and other distress sales went for a median of $143,500, while “normal” properties sold for a median price of $174,995.
“This drastically shows the impact that short sales and foreclosures are having on our marketplace,” Orlando agent David Welch said this week in his real-estate blog.
Copyright © 2009 The Orlando Sentinel, Fla
With mortgage-interest rates at record lows and an $8,000 tax credit for buyers who haven’t owned a home for at least the past three years, existing-home sales in the region have started rising again compared with a year ago. And half the deals involve bank-owned foreclosures or “short sales” – properties for which the bank has agreed to take less than the amount owed on the mortgage.
Who’s buying them? Anecdotal reports and a few surveys indicate that first-time home buyers, who don’t have to worry about selling an existing property, and investors venturing into the second-home market for the first time or searching for bargains to add to their inventory, are responsible for most of the sales.
Bulk auctions of both homes and condominiums are creating buzz in the local market, and bankers are saying yes more often to short sales, which spare them the expense of a full-blown foreclosure.
“Lenders are becoming more responsive,” said Patrick Higgins, an Orlando-area Realtor, though he noted that the short-sale process still remains slower and more cumbersome than a regular, open-market sale between a willing seller and a qualified buyer.
“Agents are learning the system,” he said, and now can shave as much as two months off the typical six- to nine-month waiting period before a short sale reaches a closing date.
Greg Clarkson, 39, is among the growing number of professional investors scouring the landscape for deals.
The Seminole County resident bought a bank-repo home in the posh Sweetwater subdivision about a year ago, made $75,000 in improvements and now lives there. He also owns five investment properties; two of them are long-term rentals, and he’s doing rehab work on the others in anticipation of selling them for a profit. He’s also eyeing a 26-unit apartment complex that he figures is a good buy right now.
“I’m taking my time, hand-picking pristine deals,” Clarkson said Wednesday while on the road looking at properties for sale.
How is he financing the acquisitions? Private investors, friends and acquaintances who share in the profits. “I’m out of pocket no money,” he said.
Breakdowns of distress-sale buyers aren’t available, but first-time buyers accounted for 65 percent of all existing-home sales nationally during the first three months of the year, up from 46 percent a year ago, according to a survey by HouseHunt Inc.
The consumer-oriented Internet company also found that certain markets and submarkets in Florida – including Orlando, Longwood, Palm Bay and the Baldwin Park section of northeast Orlando – reported the “greatest activity” from first-time buyers. Repeat buyers, meanwhile, were the more active group locally in the MetroWest section of southwest Orlando and in the nearby Bay Hill section of Orange County.
The survey also noted that 48 percent of sellers nationally are now getting multiple purchase offers for a single property, nearly double the 25 percent rate during the same period last year.
The Orlando Realtors’ foreclosure analysis, released Monday, showed for the first time the extent of distress sales in the local market. Of the 1,653 homes sold by the association’s member agents in the core Orlando market last month, 700 were bank-owned repos and another 111 were distress sales of one sort or another.
And the amount of financial duress involved in the deal greatly affected the final price: According to the Realtors’ report, bank-owned homes and condos sold for a median price of only $95,000, and other distress sales went for a median of $143,500, while “normal” properties sold for a median price of $174,995.
“This drastically shows the impact that short sales and foreclosures are having on our marketplace,” Orlando agent David Welch said this week in his real-estate blog.
Copyright © 2009 The Orlando Sentinel, Fla
Thursday, April 16, 2009
Florida unveils Web site to fight mortgage fraud-related scams
TALLAHASSEE, Fla. – April 16, 2009 – Florida Attorney General Bill McCollum unveiled a new Web site to help homeowners avoid mortgage fraud scams. The Web site – http://myfloridalegal.com/mortgagefraud – gives consumers easy access to current investigations, complaint forms, and tips to identify and avoid foreclosure rescue fraud. Fraud involving loan modifications related to foreclosures is the complaint topic most commonly reported to the Attorney General’s Office. The complaints many times relate to an up-front fee.
“Companies and individuals are taking advantage of our homeowners in these tough economic times by preying on their financial situations,” says McCollum. “If we can increase consumer education and empower people to spot scams and avoid them in advance, we can help decrease the number of victims targeted by this fraud.”
Consumers can obtain information about active litigation and download affidavit forms to fill out if they have been victimized by one of the listed companies. Consumers can also access a list of active investigations to see if a company is questionable.
The Web site also features frequently asked questions, consumer tips and a list of warning signs if a company is engaging in foreclosure rescue fraud. The Web site includes links to the new Florida Bar Web site with information for attorneys and consumers, housing help workshops and clinics in Florida, and information about the Florida Bar Lawyer Referral Service and qualified legal aid agencies.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
“Companies and individuals are taking advantage of our homeowners in these tough economic times by preying on their financial situations,” says McCollum. “If we can increase consumer education and empower people to spot scams and avoid them in advance, we can help decrease the number of victims targeted by this fraud.”
Consumers can obtain information about active litigation and download affidavit forms to fill out if they have been victimized by one of the listed companies. Consumers can also access a list of active investigations to see if a company is questionable.
The Web site also features frequently asked questions, consumer tips and a list of warning signs if a company is engaging in foreclosure rescue fraud. The Web site includes links to the new Florida Bar Web site with information for attorneys and consumers, housing help workshops and clinics in Florida, and information about the Florida Bar Lawyer Referral Service and qualified legal aid agencies.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Affordability not improving for renters nationwide
NEW YORK (AP) – April 15, 2009 – Jeffrey Myers can’t make the rent – by himself. He works part-time at UPS and as a freelance photographer, but the $2,200 he pulls in a month isn’t enough to afford an apartment in Orange County, Calif., without a roommate.
“It’s hard to meet people who live by themselves. Most people have roommates,” said Myers, 31.
For homebuyers, affordability is the best it’s been for decades, but for millions of renters, coast-to-coast affordability is still getting worse, according to a study released Tuesday.
As the recession forces more Americans out of work, working-class tenants are bearing the brunt of the cuts. Record foreclosures, at the same time, mean more people are competing for low-cost rentals. And rents in many expensive cities still haven’t budged because so few apartments were built in recent years.
A renter earning the nation’s minimum wage of $6.55 could not afford a one-bedroom apartment in any county in the nation.
“It’s a very dire situation,” said Dean Baker, co-director for the Center for Economic and Policy Research. “And it’s likely to get worse in the two years ahead,” as unemployment climbs and businesses cut worker hours and pay.
A renter needs to earn $17.84 an hour to cover the monthly rent on the average $928 two-bedroom apartment, if they don’t want to spend more than 30 percent of their income on housing. But the median hourly wage for an American renter is $14.69, more than $3 short of what’s needed, according to the study by the National Low Income Housing Coalition.
“So what’s going to happen is a lot, unfortunately, will be out on the streets,” said Edward Wolff, an economist at New York University.
The lowest-income renters stand to get hit hardest. The unemployment rate is at a 25-year high of 8.5 percent, but that percentage was even higher – 12.6 percent – for those without a high school degree. Some of the worst layoffs have come from industries that employ low-income workers like construction, retail and manufacturing.
Families displaced by foreclosures are also flooding the apartment market, increasing competition for affordable rentals.
“It’s likely they’re income-constrained or don’t have credit or savings” for costlier apartments, said Rachel Drew, a research analyst at Harvard University’s Joint Center for Housing Studies.
And while rents are falling in some individual markets, many cities are showing little signs of softness because demand for apartments remains high. Renters in Seattle, Los Angeles, San Francisco and Portland, Ore., all traditionally strong markets, won’t see many rent cuts.
Even renters in beleaguered apartment markets like Phoenix, Atlanta, Las Vegas and Florida likely won’t enjoy the deals in their areas because the local economies are reeling.
“Even when rents are dipping slightly, it’s because more people are out of work,” in that area, Baker said. “Affordability only improves when wages increase in proportion with rent.”
The most expensive metropolitan area, according to the report, is Stamford, Conn. A renter must earn $32.75 an hour to afford a two-bedroom apartment there. San Francisco ranked second at $31.88 per hour, followed by Honolulu at $31.37, Westchester County, N.Y., at $30.96 and Santa Cruz, Calif., at $30.58 per hour.
Half of the 10 most costly metros are in California.
Copyright © 2009 The Associated Press
“It’s hard to meet people who live by themselves. Most people have roommates,” said Myers, 31.
For homebuyers, affordability is the best it’s been for decades, but for millions of renters, coast-to-coast affordability is still getting worse, according to a study released Tuesday.
As the recession forces more Americans out of work, working-class tenants are bearing the brunt of the cuts. Record foreclosures, at the same time, mean more people are competing for low-cost rentals. And rents in many expensive cities still haven’t budged because so few apartments were built in recent years.
A renter earning the nation’s minimum wage of $6.55 could not afford a one-bedroom apartment in any county in the nation.
“It’s a very dire situation,” said Dean Baker, co-director for the Center for Economic and Policy Research. “And it’s likely to get worse in the two years ahead,” as unemployment climbs and businesses cut worker hours and pay.
A renter needs to earn $17.84 an hour to cover the monthly rent on the average $928 two-bedroom apartment, if they don’t want to spend more than 30 percent of their income on housing. But the median hourly wage for an American renter is $14.69, more than $3 short of what’s needed, according to the study by the National Low Income Housing Coalition.
“So what’s going to happen is a lot, unfortunately, will be out on the streets,” said Edward Wolff, an economist at New York University.
The lowest-income renters stand to get hit hardest. The unemployment rate is at a 25-year high of 8.5 percent, but that percentage was even higher – 12.6 percent – for those without a high school degree. Some of the worst layoffs have come from industries that employ low-income workers like construction, retail and manufacturing.
Families displaced by foreclosures are also flooding the apartment market, increasing competition for affordable rentals.
“It’s likely they’re income-constrained or don’t have credit or savings” for costlier apartments, said Rachel Drew, a research analyst at Harvard University’s Joint Center for Housing Studies.
And while rents are falling in some individual markets, many cities are showing little signs of softness because demand for apartments remains high. Renters in Seattle, Los Angeles, San Francisco and Portland, Ore., all traditionally strong markets, won’t see many rent cuts.
Even renters in beleaguered apartment markets like Phoenix, Atlanta, Las Vegas and Florida likely won’t enjoy the deals in their areas because the local economies are reeling.
“Even when rents are dipping slightly, it’s because more people are out of work,” in that area, Baker said. “Affordability only improves when wages increase in proportion with rent.”
The most expensive metropolitan area, according to the report, is Stamford, Conn. A renter must earn $32.75 an hour to afford a two-bedroom apartment there. San Francisco ranked second at $31.88 per hour, followed by Honolulu at $31.37, Westchester County, N.Y., at $30.96 and Santa Cruz, Calif., at $30.58 per hour.
Half of the 10 most costly metros are in California.
Copyright © 2009 The Associated Press
Wednesday, April 15, 2009
Obama: Timing right for millions to refinance
WASHINGTON – April 14, 2009 – Declaring “good news” in the midst of an economic meltdown, President Barack Obama on Thursday urged families to take advantage of record low mortgage rates by refinancing their homes.
“We are at a time where people can really take advantage of this,” Obama said, seated with a handful of homeowners who have already lowered their bills.
Rates on 30-year mortgages have fallen to 4.78 percent, the lowest on record. Rates are down by more than a full percentage point from a year ago.
“The main message we want to send today is there are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates,” Obama said in a photo opportunity in the Roosevelt Room. “That is money in their pocket.”
The president encouraged people to take advantage of a government Web site – http://www.makinghomeaffordable.gov – to see how they can get help.
In just a handful of minutes of addressing reporters, Obama read the Web site address aloud five different times.
The president credited his own government’s efforts, in part, for contributing to a recent surge in refinancing. The collapse of the inflated housing market helped contribute to a meltdown in the financial sector and the broader economy, and millions of people have lost their homes or been at risk for foreclosure.
Obama also warned people to watch out for scam artists.
“If somebody is asking you for money up front before they help you with your refinancing,” Obama said, “it’s probably a scam.”
Copyright 2009 The Associated Press
“We are at a time where people can really take advantage of this,” Obama said, seated with a handful of homeowners who have already lowered their bills.
Rates on 30-year mortgages have fallen to 4.78 percent, the lowest on record. Rates are down by more than a full percentage point from a year ago.
“The main message we want to send today is there are 7 to 9 million people across the country who right now could be taking advantage of lower mortgage rates,” Obama said in a photo opportunity in the Roosevelt Room. “That is money in their pocket.”
The president encouraged people to take advantage of a government Web site – http://www.makinghomeaffordable.gov – to see how they can get help.
In just a handful of minutes of addressing reporters, Obama read the Web site address aloud five different times.
The president credited his own government’s efforts, in part, for contributing to a recent surge in refinancing. The collapse of the inflated housing market helped contribute to a meltdown in the financial sector and the broader economy, and millions of people have lost their homes or been at risk for foreclosure.
Obama also warned people to watch out for scam artists.
“If somebody is asking you for money up front before they help you with your refinancing,” Obama said, “it’s probably a scam.”
Copyright 2009 The Associated Press
Tuesday, April 14, 2009
Low prices lure Orlando-area home buyers
ORLANDO, Fla. – April 14, 2009 – The Orlando area’s huge backlog of existing homes for sale shrank to a 26-month low last month as local Realtors sold 48 percent more houses and condominiums than they did a year ago.
The year-over-year improvement in resales, which extends back seven consecutive months to last September, was given a boost again in March by foreclosure-driven bargain prices. March sales of homes and condominiums in the core Orlando market rose to 1,653 this year from 1,120 a year ago, even as the median price fell nearly 38 percent to $137,000 from $220,000 in March 2008.
For the first time, the Orlando Regional Realtor Association examined “distress sales” in detail and found that 49 percent of the homes sold by its members last month were either owned by banks already or had been sold under financial pressure of some kind.
The report released Monday also revealed a wide disparity in market prices because of the large number of foreclosed properties:
• Bank-owned homes – those already through foreclosure – sold for a median price of $95,000.
• Homes for which lenders had agreed to take less than the amount owed on the mortgage – known as pre-foreclosure or “short” sales – sold for a median of $143,500.
• Homes marketed by owners not under financial duress sold for a median of $174,995.
Jeffri Moore and her husband, Alex, are among a growing number of local house hunters trying to snap up properties for deep discounts of 50 percent or more – sometimes, substantially more. For example, the east Orange County couple just submitted an offer for a condo unit in a former apartment complex near their home that was listed through a discount brokerage for $21,500. It had once been appraised for $131,000.
“We saw it, and it does need some work,” Jeffri Moore said. But the couple is planning to pay cash to avoid financing costs and to speed the process, she said, and they’re willing do most of the repair work on their own to save more money.
“We’re doing this for a family member who’s about to be homeless because they’re out of work. We don’t want to see that happen,” she said.
Mortgages prove elusive
Getting standard bank financing to buy a condo unit – particularly in a project with multiple foreclosures – is difficult if not impossible these days, even for buyers with excellent credit, incomes and steady jobs, the Moores and other prospective buyers are discovering.
The rising unemployment rate nationally and locally has added to the pressure on real-estate prices, driven downward for more than a year now by soaring foreclosure rates, which began with the meltdown of the subprime-mortgage market but spread to other financial sectors and the economy overall. Conventional mortgage lenders have tightened their lending standards as a result, particularly for condominiums and for second homes or “investment” properties.
The number of residential properties listed for purchase through the Orlando Realtors’ Multiple Listing Service, which covers mainly Orange and Seminole counties, peaked in late 2007 at more than 26,000. Last month, the local inventory stood at 21,448 homes, down by 720 from February and 15.8 percent lower than in March 2008. The last time the inventory was lower: January 2007.
Combined with the improvement in monthly sales, that means the inventory, as measured by “months of supply,” is shrinking even faster: It fell from 16.77 months in February to 12.98 months in March – far below its peak of 31.64 in January 2008 and the lowest it has been since December 2006.
Prices at 2003 levels
The March median sale price of $137,000 in the Orlando Realtors’ core market is the lowest for that measure since January 2003. The 1,653 sales in March are the most since May 2007. Pending sales, meanwhile, were up more than 100 percent last month, with 4,906 homes under contract compared with 2,398 a year ago.
“Orlando home buyers are getting back into the market and taking advantage of improved affordability,” Les Simmonds, president of the Orlando Realtors group, said in Monday’s report.
Simmonds, president of L.G. Simmonds Real Estate Corp. in Longwood, said record-low mortgage rates are helping fuel the improved sales. The 4.67 percent average in March for 30-year fixed-rate loans was the lowest on record, Simmonds noted, though rates inched up slightly last week.
© 2009 The Orlando Sentinel,
The year-over-year improvement in resales, which extends back seven consecutive months to last September, was given a boost again in March by foreclosure-driven bargain prices. March sales of homes and condominiums in the core Orlando market rose to 1,653 this year from 1,120 a year ago, even as the median price fell nearly 38 percent to $137,000 from $220,000 in March 2008.
For the first time, the Orlando Regional Realtor Association examined “distress sales” in detail and found that 49 percent of the homes sold by its members last month were either owned by banks already or had been sold under financial pressure of some kind.
The report released Monday also revealed a wide disparity in market prices because of the large number of foreclosed properties:
• Bank-owned homes – those already through foreclosure – sold for a median price of $95,000.
• Homes for which lenders had agreed to take less than the amount owed on the mortgage – known as pre-foreclosure or “short” sales – sold for a median of $143,500.
• Homes marketed by owners not under financial duress sold for a median of $174,995.
Jeffri Moore and her husband, Alex, are among a growing number of local house hunters trying to snap up properties for deep discounts of 50 percent or more – sometimes, substantially more. For example, the east Orange County couple just submitted an offer for a condo unit in a former apartment complex near their home that was listed through a discount brokerage for $21,500. It had once been appraised for $131,000.
“We saw it, and it does need some work,” Jeffri Moore said. But the couple is planning to pay cash to avoid financing costs and to speed the process, she said, and they’re willing do most of the repair work on their own to save more money.
“We’re doing this for a family member who’s about to be homeless because they’re out of work. We don’t want to see that happen,” she said.
Mortgages prove elusive
Getting standard bank financing to buy a condo unit – particularly in a project with multiple foreclosures – is difficult if not impossible these days, even for buyers with excellent credit, incomes and steady jobs, the Moores and other prospective buyers are discovering.
The rising unemployment rate nationally and locally has added to the pressure on real-estate prices, driven downward for more than a year now by soaring foreclosure rates, which began with the meltdown of the subprime-mortgage market but spread to other financial sectors and the economy overall. Conventional mortgage lenders have tightened their lending standards as a result, particularly for condominiums and for second homes or “investment” properties.
The number of residential properties listed for purchase through the Orlando Realtors’ Multiple Listing Service, which covers mainly Orange and Seminole counties, peaked in late 2007 at more than 26,000. Last month, the local inventory stood at 21,448 homes, down by 720 from February and 15.8 percent lower than in March 2008. The last time the inventory was lower: January 2007.
Combined with the improvement in monthly sales, that means the inventory, as measured by “months of supply,” is shrinking even faster: It fell from 16.77 months in February to 12.98 months in March – far below its peak of 31.64 in January 2008 and the lowest it has been since December 2006.
Prices at 2003 levels
The March median sale price of $137,000 in the Orlando Realtors’ core market is the lowest for that measure since January 2003. The 1,653 sales in March are the most since May 2007. Pending sales, meanwhile, were up more than 100 percent last month, with 4,906 homes under contract compared with 2,398 a year ago.
“Orlando home buyers are getting back into the market and taking advantage of improved affordability,” Les Simmonds, president of the Orlando Realtors group, said in Monday’s report.
Simmonds, president of L.G. Simmonds Real Estate Corp. in Longwood, said record-low mortgage rates are helping fuel the improved sales. The 4.67 percent average in March for 30-year fixed-rate loans was the lowest on record, Simmonds noted, though rates inched up slightly last week.
© 2009 The Orlando Sentinel,
Monday, April 13, 2009
Tainted Chinese drywall shows up in Katrina homes
CHALMETTE, La. – April 13, 2009 – Thomas Stone and his wife rebuilt after their home was flooded by 6 feet (2 meters) of water during Hurricane Katrina, never dreaming they would face the agony of tearing it apart all over again.
They tapped Lauren Stone’s retirement savings and saved $1,000 by installing Chinese-made drywall throughout their two-story home after the 2005 storm. Now the Stones are among hundreds of Katrina victims facing another, this time unnatural, disaster.
Sulfur-emitting wallboard from China is wreaking havoc in homes, charring electrical wires, eating away at jewelry, silverware and other valuables, and possibly even sickening families.
“The bathroom upstairs has a corroded shower-head, the door hinges are rusting out,” said 50-year-old Thomas Stone, the longtime fire chief of St. Bernard Parish, outside New Orleans. And then there’s the stench, like rotten eggs, that seems to get worse with the heat and humidity.
“It makes me wish there would be another flood to wash it out,” said his wife Lauren, 49.
Chinese manufacturers flooded the U.S. market with more than 500 million pounds of drywall around the same time Katrina was flooding New Orleans, an Associated Press review of shipping records has found.
The boom in imported China-made building materials peaked in 2006, driven by domestic shortages created by the nationwide construction boom, as well as a series of Gulf Coast hurricanes.
That year, enough wallboard was imported from China to build some 34,000 homes of roughly 2,000 square feet (186 square meters) each, according to the AP’s analysis and estimates supplied by the nationwide drywall supplier United States Gypsum. But experts and advocates say many homes may have been built with a mixture of Chinese and domestic drywall – which could push the number of affected homes to 100,000 or more, by some estimates.
The drywall apparently causes a chemical reaction that gives off the rotten-egg stench and corrodes metal. Researchers do not know yet what causes it, but possible culprits include fumigants sprayed on the drywall and material inside it. The Chinese drywall is also made with a coal byproduct called fly ash that is less refined than the form used by U.S. drywall makers.
The U.S. Product Consumer Safety Commission and a number of states are investigating the extent of the problem, what’s causing it, and whether it poses serious health risks. But it could be years before the full extent of the problem is known.
Meanwhile, the humid and warm climate of the U.S. South has meant the impact is being felt here first – at least 350 people in Louisiana have already complained to the state health department in yet another unexpected twist for hurricane victims who have lived through more than three years of hardship.
“We’ve been through the storms, we heard about the formaldehyde,” Louisiana Department of Health and Hospitals spokesman Renne Milligan said, referring to a previous housing nightmare in which tests showed elevated levels of formaldehyde in hundreds of trailers issued by the federal government.
“Some of our residents are still living through that, and now we’re talking about this drywall,” Milligan said.
Governors in Louisiana and Florida are asking for federal assistance, and members of Congress are calling for a recall and a ban on future imports.
Like hundreds of other homeowners from Florida to Texas, the Stones have signed on to a class-action lawsuit directed against the manufacturers, suppliers and builders of the drywall. The defendants in the Louisiana cases include Knauf Gips KG, Knauf Plasterboard Tianjin Co., Taishan Gypsum Co., L&W Supply Corp. and USG Corp., a major U.S. drywall supplier.
“What we’re trying to do is get to the bottom of what is precisely going on,” said Ken Haldin, a spokesman for Knauf Plasterboard Tianjin.
The lawsuits contend the Chinese drywall is emitting sulfur, methane and other volatile organic chemical compounds that are ruining plaintiffs’ homes and harming their health.
Some of the companies told AP they are looking into the complaints, but downplayed the possibility of health risks.
The Chinese ministries of commerce, construction and industry and the Administration of Quality Supervision Inspection and Quarantine did not respond to repeated requests for comment from the AP, although Chinese media have reported that AQSIQ, which enforces product quality standards, was investigating.
No U.S. agency regulates the chemical compounds used in imported drywall.
Attorney Daniel Becnel has filed about 15 lawsuits in federal court in New Orleans on behalf of hundreds of homeowners.
“And we’re getting more in every single day,” he said. “People are just distraught.”
Mississippi attorney Steve Mullins has also joined the cadre of court actions.
“Bloody noses, headaches, respiratory infections,” Mullins said, ticking off the list of health problems reported by his clients. “Over and over like a broken record.”
He said his research indicates the problem could exist in hundreds of thousands of homes nationwide, a conclusion echoed by other experts.
Mary Haindel’s home near Lake Pontchartrain in Louisiana was destroyed by Katrina’s floodwaters, so she bought a new, $320,000 town-home in an area known as the North Shore, where many hurricane victims relocated. Soon, the coils on her air conditioning system went out, and copper slowly turned black – telltale signs that the tainted wallboard was used.
Haindel, a 45-year-old real estate agent and jewelry appraiser, moved out. She is now renting a condominium and says it will be difficult to sell the home.
“It’s Katrina all over again,” Haindel said. “It was an immediate: You got to go, you pick up, and you leave.”
Copyright © 2009 The Associated Pres
They tapped Lauren Stone’s retirement savings and saved $1,000 by installing Chinese-made drywall throughout their two-story home after the 2005 storm. Now the Stones are among hundreds of Katrina victims facing another, this time unnatural, disaster.
Sulfur-emitting wallboard from China is wreaking havoc in homes, charring electrical wires, eating away at jewelry, silverware and other valuables, and possibly even sickening families.
“The bathroom upstairs has a corroded shower-head, the door hinges are rusting out,” said 50-year-old Thomas Stone, the longtime fire chief of St. Bernard Parish, outside New Orleans. And then there’s the stench, like rotten eggs, that seems to get worse with the heat and humidity.
“It makes me wish there would be another flood to wash it out,” said his wife Lauren, 49.
Chinese manufacturers flooded the U.S. market with more than 500 million pounds of drywall around the same time Katrina was flooding New Orleans, an Associated Press review of shipping records has found.
The boom in imported China-made building materials peaked in 2006, driven by domestic shortages created by the nationwide construction boom, as well as a series of Gulf Coast hurricanes.
That year, enough wallboard was imported from China to build some 34,000 homes of roughly 2,000 square feet (186 square meters) each, according to the AP’s analysis and estimates supplied by the nationwide drywall supplier United States Gypsum. But experts and advocates say many homes may have been built with a mixture of Chinese and domestic drywall – which could push the number of affected homes to 100,000 or more, by some estimates.
The drywall apparently causes a chemical reaction that gives off the rotten-egg stench and corrodes metal. Researchers do not know yet what causes it, but possible culprits include fumigants sprayed on the drywall and material inside it. The Chinese drywall is also made with a coal byproduct called fly ash that is less refined than the form used by U.S. drywall makers.
The U.S. Product Consumer Safety Commission and a number of states are investigating the extent of the problem, what’s causing it, and whether it poses serious health risks. But it could be years before the full extent of the problem is known.
Meanwhile, the humid and warm climate of the U.S. South has meant the impact is being felt here first – at least 350 people in Louisiana have already complained to the state health department in yet another unexpected twist for hurricane victims who have lived through more than three years of hardship.
“We’ve been through the storms, we heard about the formaldehyde,” Louisiana Department of Health and Hospitals spokesman Renne Milligan said, referring to a previous housing nightmare in which tests showed elevated levels of formaldehyde in hundreds of trailers issued by the federal government.
“Some of our residents are still living through that, and now we’re talking about this drywall,” Milligan said.
Governors in Louisiana and Florida are asking for federal assistance, and members of Congress are calling for a recall and a ban on future imports.
Like hundreds of other homeowners from Florida to Texas, the Stones have signed on to a class-action lawsuit directed against the manufacturers, suppliers and builders of the drywall. The defendants in the Louisiana cases include Knauf Gips KG, Knauf Plasterboard Tianjin Co., Taishan Gypsum Co., L&W Supply Corp. and USG Corp., a major U.S. drywall supplier.
“What we’re trying to do is get to the bottom of what is precisely going on,” said Ken Haldin, a spokesman for Knauf Plasterboard Tianjin.
The lawsuits contend the Chinese drywall is emitting sulfur, methane and other volatile organic chemical compounds that are ruining plaintiffs’ homes and harming their health.
Some of the companies told AP they are looking into the complaints, but downplayed the possibility of health risks.
The Chinese ministries of commerce, construction and industry and the Administration of Quality Supervision Inspection and Quarantine did not respond to repeated requests for comment from the AP, although Chinese media have reported that AQSIQ, which enforces product quality standards, was investigating.
No U.S. agency regulates the chemical compounds used in imported drywall.
Attorney Daniel Becnel has filed about 15 lawsuits in federal court in New Orleans on behalf of hundreds of homeowners.
“And we’re getting more in every single day,” he said. “People are just distraught.”
Mississippi attorney Steve Mullins has also joined the cadre of court actions.
“Bloody noses, headaches, respiratory infections,” Mullins said, ticking off the list of health problems reported by his clients. “Over and over like a broken record.”
He said his research indicates the problem could exist in hundreds of thousands of homes nationwide, a conclusion echoed by other experts.
Mary Haindel’s home near Lake Pontchartrain in Louisiana was destroyed by Katrina’s floodwaters, so she bought a new, $320,000 town-home in an area known as the North Shore, where many hurricane victims relocated. Soon, the coils on her air conditioning system went out, and copper slowly turned black – telltale signs that the tainted wallboard was used.
Haindel, a 45-year-old real estate agent and jewelry appraiser, moved out. She is now renting a condominium and says it will be difficult to sell the home.
“It’s Katrina all over again,” Haindel said. “It was an immediate: You got to go, you pick up, and you leave.”
Copyright © 2009 The Associated Pres
What is a real estate Short Sale?
What is a short sale?
A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner’s commission. The seller is unwilling or unable to cover the difference.
Some — although by no means all — short sellers may also be in default on their mortgage loans and be headed for foreclosure. However, home owners who bought at the top of the market or who took out large amounts of equity with a refinance and who now need to sell because of divorce or job transfer may also find themselves upside down, owing more than the home is currently worth when closing costs are factored in.
Tip: Losing your home can be very emotional and most people don’t want to face up to the reality until foreclosure sets in.
Other sellers simply don’t understand that if they have assets, such as stocks or a high-salaried job, a lender is not going to let them just walk away from a short sale without signing a note to repay what they owe.
How do I know it’s short?
A CMA will be your first indicator, but you also need to know what outstanding debt is and calculate the cost associated with a short sale. This will give you an estimate of the net proceeds that will be realized, often called the net sheet.
Who do I and the seller need to talk to about the problem?
If there are a first and second mortgage or a home equity line of credit, you may have to talk to more than one lender to get approval for a short sale. In addition, you may also need approval from the entity that holds the pool of loans if the mortgage has been securitized.
The presence of two lenders makes a short sale more complicated since it’s often the lender holding the second, or junior, mortgage that has to absorb most of the loss.
Opinions differ, but most experts suggest that you let the lender involved know as soon as possible of the potential short sale. Others say you should wait until you have an offer because you’ll get no action until then.
Tip: Be sure you contact the bank’s loss mitigation department, which will be the group to decide whether to accept a short sale, rather than the collection or customer service department, which is only interested in recouping past due loan payments.
What information will the bank need to decide whether to accept a short sale?
The sellers’ submission package should include W-2 forms from employers (or a letter explaining the seller is unemployed), bank statements, two years of tax returns, and other financial documents outlining income and debt obligations. The bank will also need comps or a broker’s price opinion showing your estimate of value.
In addition, the sellers should submit a “hardship letter,” explaining the circumstances that make it impossible for them to pay the full amount of the loan. The seller needs to be able to show true financial hardship. Someone with the assets or the income to pay is unlikely to be considered, say most interviewees.
How long does it take to complete a short sale?
Although response times vary from lender to lender, it can take two weeks or as long as 60 days to receive an approval of a short sale from a lender. That’s why it’s critical that buyers and their representative understand and accept that time frame before they make an offer.
Tip: Keep in mind that the purchase contract on a short-sale property is a legally binding agreement once the earnest money has been deposited. Without language in the contract stating that the lenders must approve the offer and release all liens on the property, the seller may face a legal problem for failing to execute the contract if the short sale is not approved.
What financial or credit liabilities will a seller have as a result of a short sale?
Many lenders ask sellers to sign a promissory note for all or part of the difference between the proceeds of the short sale and the debt obligation as a condition to a short sale. In such cases, the note gives lenders the right to sue a seller and attach other assets if the note is not paid when due.
It’s particularly important to understand this distinction if you work in states such as California that have a nonrecourse mortgage, says Churchill. In such states, the lender cannot pursue a deficiency judgment against a seller for any deficiencies after a property is foreclosed. Because of this distinction, sellers who are already in default on a mortgage and do not have the resources to pay off a separate promissory note after a short sale might be better off letting the lender foreclose, he says. If you are working in a state in which mortgage loans are nonrecourse, be sure and alert your seller-clients to this distinction.
For more information, contact Landsburg Realty, Inc. 813-679-2754
A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner’s commission. The seller is unwilling or unable to cover the difference.
Some — although by no means all — short sellers may also be in default on their mortgage loans and be headed for foreclosure. However, home owners who bought at the top of the market or who took out large amounts of equity with a refinance and who now need to sell because of divorce or job transfer may also find themselves upside down, owing more than the home is currently worth when closing costs are factored in.
Tip: Losing your home can be very emotional and most people don’t want to face up to the reality until foreclosure sets in.
Other sellers simply don’t understand that if they have assets, such as stocks or a high-salaried job, a lender is not going to let them just walk away from a short sale without signing a note to repay what they owe.
How do I know it’s short?
A CMA will be your first indicator, but you also need to know what outstanding debt is and calculate the cost associated with a short sale. This will give you an estimate of the net proceeds that will be realized, often called the net sheet.
Who do I and the seller need to talk to about the problem?
If there are a first and second mortgage or a home equity line of credit, you may have to talk to more than one lender to get approval for a short sale. In addition, you may also need approval from the entity that holds the pool of loans if the mortgage has been securitized.
The presence of two lenders makes a short sale more complicated since it’s often the lender holding the second, or junior, mortgage that has to absorb most of the loss.
Opinions differ, but most experts suggest that you let the lender involved know as soon as possible of the potential short sale. Others say you should wait until you have an offer because you’ll get no action until then.
Tip: Be sure you contact the bank’s loss mitigation department, which will be the group to decide whether to accept a short sale, rather than the collection or customer service department, which is only interested in recouping past due loan payments.
What information will the bank need to decide whether to accept a short sale?
The sellers’ submission package should include W-2 forms from employers (or a letter explaining the seller is unemployed), bank statements, two years of tax returns, and other financial documents outlining income and debt obligations. The bank will also need comps or a broker’s price opinion showing your estimate of value.
In addition, the sellers should submit a “hardship letter,” explaining the circumstances that make it impossible for them to pay the full amount of the loan. The seller needs to be able to show true financial hardship. Someone with the assets or the income to pay is unlikely to be considered, say most interviewees.
How long does it take to complete a short sale?
Although response times vary from lender to lender, it can take two weeks or as long as 60 days to receive an approval of a short sale from a lender. That’s why it’s critical that buyers and their representative understand and accept that time frame before they make an offer.
Tip: Keep in mind that the purchase contract on a short-sale property is a legally binding agreement once the earnest money has been deposited. Without language in the contract stating that the lenders must approve the offer and release all liens on the property, the seller may face a legal problem for failing to execute the contract if the short sale is not approved.
What financial or credit liabilities will a seller have as a result of a short sale?
Many lenders ask sellers to sign a promissory note for all or part of the difference between the proceeds of the short sale and the debt obligation as a condition to a short sale. In such cases, the note gives lenders the right to sue a seller and attach other assets if the note is not paid when due.
It’s particularly important to understand this distinction if you work in states such as California that have a nonrecourse mortgage, says Churchill. In such states, the lender cannot pursue a deficiency judgment against a seller for any deficiencies after a property is foreclosed. Because of this distinction, sellers who are already in default on a mortgage and do not have the resources to pay off a separate promissory note after a short sale might be better off letting the lender foreclose, he says. If you are working in a state in which mortgage loans are nonrecourse, be sure and alert your seller-clients to this distinction.
For more information, contact Landsburg Realty, Inc. 813-679-2754
Sunday, April 12, 2009
CFO Sink to hold foreclosure summit
TALLAHASSEE, Fla. – April 9, 2009 – Florida Chief Financial Officer Alex Sink said Wednesday that she planned to convene a meeting of lawyers working pro bono on foreclosure cases and the 12 largest Florida lending firms. The meeting will be held in Tampa April 20.
Announcing the foreclosure summit Wednesday with attorneys from the Florida Attorneys Saving Homes program, Sink said the meeting would help remind Floridians about free legal assistance and allow lawyers to pick the brains of lenders about loan repayment problems that don’t require eviction. According to Sink, the pro bono lawyers have already received 25,000 calls about foreclosures, but their efforts have been hamstrung by varied processes from lenders, a problem the CFO said could be easier to solve by bringing the largest firms together.
“The purpose of our meeting is to find out how we can be more efficient and effective so our volunteer attorneys don’t get frustrated and say ‘I don’t have time for this,’” Sink said.
Representatives from Bank of America, Citibank, Countrywide, IndyMac Bank, JP Morgan, Litton Loan Servicing, Wells Fargo, Saxon Mortgage Services, Suntrust, Wachovia and Washington Mutual will be invited to attend the summit, Sink’s office said.
In 2007, CFO Sink asked the Florida Bar to provide assistance to struggling homeowners in the state, leading to the creation of the Florida Attorneys Saving Homes program. The program pairs pro bono attorneys with Florida homeowners who are behind on their mortgage payments. Over 1,000 lawyers across the state have volunteered their time in response to CFO Sink’s call to launch this program.
In addition to the Florida Attorneys Saving Homes Program, CFO Sink also launched the Florida Housing Help Initiative to assist homeowners facing foreclosure. The initiative partners with community organizations and elected officials to hold foreclosure workshops around the state.
For more information on CFO Sink’s Florida Housing Help Initiative or the Florida Attorneys Saving Homes program, visit www.MyFloridaCFO.com.
Announcing the foreclosure summit Wednesday with attorneys from the Florida Attorneys Saving Homes program, Sink said the meeting would help remind Floridians about free legal assistance and allow lawyers to pick the brains of lenders about loan repayment problems that don’t require eviction. According to Sink, the pro bono lawyers have already received 25,000 calls about foreclosures, but their efforts have been hamstrung by varied processes from lenders, a problem the CFO said could be easier to solve by bringing the largest firms together.
“The purpose of our meeting is to find out how we can be more efficient and effective so our volunteer attorneys don’t get frustrated and say ‘I don’t have time for this,’” Sink said.
Representatives from Bank of America, Citibank, Countrywide, IndyMac Bank, JP Morgan, Litton Loan Servicing, Wells Fargo, Saxon Mortgage Services, Suntrust, Wachovia and Washington Mutual will be invited to attend the summit, Sink’s office said.
In 2007, CFO Sink asked the Florida Bar to provide assistance to struggling homeowners in the state, leading to the creation of the Florida Attorneys Saving Homes program. The program pairs pro bono attorneys with Florida homeowners who are behind on their mortgage payments. Over 1,000 lawyers across the state have volunteered their time in response to CFO Sink’s call to launch this program.
In addition to the Florida Attorneys Saving Homes Program, CFO Sink also launched the Florida Housing Help Initiative to assist homeowners facing foreclosure. The initiative partners with community organizations and elected officials to hold foreclosure workshops around the state.
For more information on CFO Sink’s Florida Housing Help Initiative or the Florida Attorneys Saving Homes program, visit www.MyFloridaCFO.com.
Friday, April 10, 2009
With home affordability up, buyers starting to return
WASHINGTON – April 8, 2009 – Thanks to record low mortgage rates and declining home prices, 55 million families – half of all U.S. households – can afford today’s $200,000 median-priced new home, according to figures released by the National Association of Home Builders (NAHB).
“That’s an increase of 17 million households from conditions just two years ago, and the best housing affordability number we have seen in years,” says NAHB Chairman Joe Robson. “We are now seeing the first signs that buyers are returning to the marketplace.”
Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income as they save nearly $500 per month on principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.
Single-family permits rose 11 percent in February; new and existing home sales also posted gains; and the huge inventory backlog is being slowly whittled down. In a survey for Century 21 Real Estate last month, a majority of prospective first-time home buyers – 78 percent – said that now is a good time to buy a home. Of those responding to the online poll, 68 percent said that now is a better time to buy than six months ago.
Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March, 1.5 million visitors logged on to NAHB’s consumer Web site, www.federalhousingtaxcredit.com, to learn more about the tax credit. Further, a new survey commissioned by Move Inc. found that nearly 20 percent of those who plan to purchase a home this year are doing so to take advantage of the tax credit, which expires at the end of November.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
“That’s an increase of 17 million households from conditions just two years ago, and the best housing affordability number we have seen in years,” says NAHB Chairman Joe Robson. “We are now seeing the first signs that buyers are returning to the marketplace.”
Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income as they save nearly $500 per month on principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.
Single-family permits rose 11 percent in February; new and existing home sales also posted gains; and the huge inventory backlog is being slowly whittled down. In a survey for Century 21 Real Estate last month, a majority of prospective first-time home buyers – 78 percent – said that now is a good time to buy a home. Of those responding to the online poll, 68 percent said that now is a better time to buy than six months ago.
Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March, 1.5 million visitors logged on to NAHB’s consumer Web site, www.federalhousingtaxcredit.com, to learn more about the tax credit. Further, a new survey commissioned by Move Inc. found that nearly 20 percent of those who plan to purchase a home this year are doing so to take advantage of the tax credit, which expires at the end of November.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Mortgage rates tick up from record lows
NEW YORK (AP) – April 9, 2009 – Rates on 30-year mortgages inched higher this week after two straight weeks of record lows, but still remained at attractive levels for borrowers looking to refinance their home loans.
Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages rose to 4.87 percent this week from an average of 4.78 percent last week. That was the lowest in the history of Freddie Mac’s survey, which dates back to 1971.
Rates have been below 5 percent for four consecutive weeks and are still down by a full percentage point from a year ago.
Low rates have sparked a surge in refinancing activity, with nearly 80 percent of new home loan applications coming from borrowers seeking to refinance. Freddie Mac’s sibling company, Fannie Mae, refinanced $77 billion in loans last month, nearly double February’s level and the best month for such activity since 2003, while the housing market was still surging.
Speaking at the White House Thursday, President Barack Obama said millions of Americans can save money by refinancing their home loans. “We are at a time where people can really take advantage of this,” Obama said.
Obama touted the increase in refinancing nationwide as a sign that federal programs to help homeowners are working, but warned that loan modification operations that ask for money upfront are “probably a scam.”
Mortgage rates fell dramatically over the winter. They fell further after the Federal Reserve said last month it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.
Frank Nothaft, Freddie Mac’s chief economist, said in a statement that low rates “should keep homeowner affordability at record levels.”
Lenders, however, have tightened their standards dramatically over the past year, so the best rates are available to those with solid credit. Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average rate on a 15-year fixed-rate mortgage inched up to 4.54 percent this week from 4.52 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages rose to 4.93 percent from 4.92 percent last week. Rates on one-year, adjustable-rate mortgages rose to 4.83 percent from 4.75 percent.
The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for all mortgages in Freddie Mac’s survey except for one-year adjustable mortgages, which had an average fee of 0.5 point.
Copyright 2009 The Associated Press, Alan Zibel
Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages rose to 4.87 percent this week from an average of 4.78 percent last week. That was the lowest in the history of Freddie Mac’s survey, which dates back to 1971.
Rates have been below 5 percent for four consecutive weeks and are still down by a full percentage point from a year ago.
Low rates have sparked a surge in refinancing activity, with nearly 80 percent of new home loan applications coming from borrowers seeking to refinance. Freddie Mac’s sibling company, Fannie Mae, refinanced $77 billion in loans last month, nearly double February’s level and the best month for such activity since 2003, while the housing market was still surging.
Speaking at the White House Thursday, President Barack Obama said millions of Americans can save money by refinancing their home loans. “We are at a time where people can really take advantage of this,” Obama said.
Obama touted the increase in refinancing nationwide as a sign that federal programs to help homeowners are working, but warned that loan modification operations that ask for money upfront are “probably a scam.”
Mortgage rates fell dramatically over the winter. They fell further after the Federal Reserve said last month it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.
Frank Nothaft, Freddie Mac’s chief economist, said in a statement that low rates “should keep homeowner affordability at record levels.”
Lenders, however, have tightened their standards dramatically over the past year, so the best rates are available to those with solid credit. Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average rate on a 15-year fixed-rate mortgage inched up to 4.54 percent this week from 4.52 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages rose to 4.93 percent from 4.92 percent last week. Rates on one-year, adjustable-rate mortgages rose to 4.83 percent from 4.75 percent.
The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for all mortgages in Freddie Mac’s survey except for one-year adjustable mortgages, which had an average fee of 0.5 point.
Copyright 2009 The Associated Press, Alan Zibel
Thursday, April 9, 2009
Housing may have hit bottom in February
CHICAGO – April 7, 2009 – The chief economist of Mesirow Financial, a $31.4 billion asset financial services firm in Chicago founded in 1937, announced that the housing market probably bottomed out in February and is now on the road to recovery.
“An unexpected jump in new and existing home sales, a fairly sharp increase in mortgage applications, and a surprise increase in pending home sales prompted many to declare the bottom in housing in the month of February,” says Swonk. “Even home prices, which had been falling like a rock, showed some signs of stabilizing during the month. Moreover, speculators appear to be re-entering the market, picking up properties on the cheap.”
“The housing market is still a long way from healthy: home sales are still down substantially from the lows they hit during the turbulence of the fourth quarter; pending sales were at such low levels, there was really nowhere to go but up; and more than 70 percent of the mortgage applications we saw in March were refinances instead of purchases,” notes Swonk.
Swonk says a number of housing market shifts suggest a turnaround has started, including:
• Starts of single-family home sales, in particular, are already close to zero and cannot fall much further. Multi-family starts are also exceedingly low and off more than 50 percent from their 2005 high. On net, overall starts are expected to decline again in the second quarter and then begin a gradual rebound in the second half of the year.
Regional differences: The West and the South are expected to remain the weakest markets when it comes to construction activity, since they still suffer from the greatest overhang of vacant new properties.
• Home sales are expected to bottom sooner than starts, which may have also hit their turning point in February, although a safer bet is probably May. Swonk says that’s not surprising given the fact that it’s easier to get a mortgage to buy a home than to get funding to build a housing development.
Regional differences: The hardest hit areas in the West, which includes California and Nevada, are expected to post the strongest gains, as they currently offer buyers the best deals from short sales and foreclosures. The Midwest is expected to perform close to the national average, while the South and the Northeast remain laggards.
• Prices. Home values plummeted as the economy slipped deeper into recession and credit markets seized last fall. By January, most indices were showing double-digit declines from a year ago. The best bet is that prices will end the year lower than during the bulk of 2008, but will come up slightly from the lows of the first quarter.
Regional differences: The Northeast is expected to experience the greatest downward pressure on prices, as it was late into the correction. Declines in New York could be particularly large as the number of foreclosures balloons. The downward pressure on prices in the South, particularly in Florida, is also expected to remain fairly intense, given the overhang of vacant homes.
“Housing is expected to swing from a drag to a push on overall GDP growth in 2009, for the first time in four years,” says Swonk. “That shift, coupled with tax incentives to lower the carbon footprint of individual homes, is expected to provide a boost to spending on everything from furniture and appliances to building materials. Any gains that we do see in housing and housing-related activity, however, will pale when compared against previous recoveries.”
© 2009 FLORIDA ASSOCIATION OF REALTORS®
“An unexpected jump in new and existing home sales, a fairly sharp increase in mortgage applications, and a surprise increase in pending home sales prompted many to declare the bottom in housing in the month of February,” says Swonk. “Even home prices, which had been falling like a rock, showed some signs of stabilizing during the month. Moreover, speculators appear to be re-entering the market, picking up properties on the cheap.”
“The housing market is still a long way from healthy: home sales are still down substantially from the lows they hit during the turbulence of the fourth quarter; pending sales were at such low levels, there was really nowhere to go but up; and more than 70 percent of the mortgage applications we saw in March were refinances instead of purchases,” notes Swonk.
Swonk says a number of housing market shifts suggest a turnaround has started, including:
• Starts of single-family home sales, in particular, are already close to zero and cannot fall much further. Multi-family starts are also exceedingly low and off more than 50 percent from their 2005 high. On net, overall starts are expected to decline again in the second quarter and then begin a gradual rebound in the second half of the year.
Regional differences: The West and the South are expected to remain the weakest markets when it comes to construction activity, since they still suffer from the greatest overhang of vacant new properties.
• Home sales are expected to bottom sooner than starts, which may have also hit their turning point in February, although a safer bet is probably May. Swonk says that’s not surprising given the fact that it’s easier to get a mortgage to buy a home than to get funding to build a housing development.
Regional differences: The hardest hit areas in the West, which includes California and Nevada, are expected to post the strongest gains, as they currently offer buyers the best deals from short sales and foreclosures. The Midwest is expected to perform close to the national average, while the South and the Northeast remain laggards.
• Prices. Home values plummeted as the economy slipped deeper into recession and credit markets seized last fall. By January, most indices were showing double-digit declines from a year ago. The best bet is that prices will end the year lower than during the bulk of 2008, but will come up slightly from the lows of the first quarter.
Regional differences: The Northeast is expected to experience the greatest downward pressure on prices, as it was late into the correction. Declines in New York could be particularly large as the number of foreclosures balloons. The downward pressure on prices in the South, particularly in Florida, is also expected to remain fairly intense, given the overhang of vacant homes.
“Housing is expected to swing from a drag to a push on overall GDP growth in 2009, for the first time in four years,” says Swonk. “That shift, coupled with tax incentives to lower the carbon footprint of individual homes, is expected to provide a boost to spending on everything from furniture and appliances to building materials. Any gains that we do see in housing and housing-related activity, however, will pale when compared against previous recoveries.”
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Tuesday, April 7, 2009
Tax credit might be shot in the arm for first-time homebuyers
TALLAHASSEE, Fla. – April 7, 2009 – A coalition of powerful groups, including the Orlando-based Florida Association of Realtors, is lobbying the state to find a way to advance first-time homebuyers a new, $8,000 federal tax credit designed to spur home sales.
Many first-time buyers have the income and credit to qualify for a home loan but need help with the downpayment, said Cynthia Shelton, an Orlando Realtor and current president of the statewide trade group. Fronting the money for the new tax credit could draw more qualified buyers into the slumping home market sooner, she said.
A study by Miami-based economist Antonio Villamil concluded last week that “front loading” the tax credit, part of the federal government’s stimulus package, would give Florida’s economy a significant boost – equivalent to creating 33,206 jobs and generating $514 million in federal, state and local tax revenue.
“I was in Tallahassee last week and I met with some senators. We’re pressing like mad to get this through,” Shelton said.
But with state lawmakers rushing to complete their annual session by May 1, the chances of passing any such bill are remote, so other avenues are being explored, said Walt Dartland, executive director of the Consumer Federation of the Southeast.
“The Legislature may or may not play a part,” Dartland said Monday from Tallahassee. “It’s true, we are out of time” for passing a new law from scratch. Other options being researched that might not require legislation, he said, include leveraging some of the resources of the Florida Housing Finance Corp., which already has a down-payment assistance program. Qualifying homebuyers would sign over their tax credits to repay the fund.
In addition to the Realtors and the consumer federation, the alliance now urging the Legislature to consider the home-financing proposal includes the Florida Home Builders Association, Florida Bankers Association, Florida Credit Union League, Florida Manufactured Housing Association and Florida Association of Mortgage Brokers.
Supporters of what the consumer federation is calling the “Florida formula” said the state has a short time in which to act because the tax credit is for homes purchased by the end of November. A tax credit is a dollar-for-dollar reduction in federal taxes owed.
Steve Auger, executive director of the Florida Housing Finance Corp., said the agency has provided $66 million in downpayment assistance since 2007, but its ability to continue doing that is jeopardized by the possibility that lawmakers may commit all of the housing agency’s trust fund to the general fund this year because of a record budget shortfall.
“I would hope the legislators would think long and hard about that,” Auger said.
Dartland said that another idea being discussed would involve the state issuing short-term notes that could be sold to participating banks. Those notes could then be repaid with the homebuyers’ tax credits.
Copyright © 2009 The Orlando Sentinel
Many first-time buyers have the income and credit to qualify for a home loan but need help with the downpayment, said Cynthia Shelton, an Orlando Realtor and current president of the statewide trade group. Fronting the money for the new tax credit could draw more qualified buyers into the slumping home market sooner, she said.
A study by Miami-based economist Antonio Villamil concluded last week that “front loading” the tax credit, part of the federal government’s stimulus package, would give Florida’s economy a significant boost – equivalent to creating 33,206 jobs and generating $514 million in federal, state and local tax revenue.
“I was in Tallahassee last week and I met with some senators. We’re pressing like mad to get this through,” Shelton said.
But with state lawmakers rushing to complete their annual session by May 1, the chances of passing any such bill are remote, so other avenues are being explored, said Walt Dartland, executive director of the Consumer Federation of the Southeast.
“The Legislature may or may not play a part,” Dartland said Monday from Tallahassee. “It’s true, we are out of time” for passing a new law from scratch. Other options being researched that might not require legislation, he said, include leveraging some of the resources of the Florida Housing Finance Corp., which already has a down-payment assistance program. Qualifying homebuyers would sign over their tax credits to repay the fund.
In addition to the Realtors and the consumer federation, the alliance now urging the Legislature to consider the home-financing proposal includes the Florida Home Builders Association, Florida Bankers Association, Florida Credit Union League, Florida Manufactured Housing Association and Florida Association of Mortgage Brokers.
Supporters of what the consumer federation is calling the “Florida formula” said the state has a short time in which to act because the tax credit is for homes purchased by the end of November. A tax credit is a dollar-for-dollar reduction in federal taxes owed.
Steve Auger, executive director of the Florida Housing Finance Corp., said the agency has provided $66 million in downpayment assistance since 2007, but its ability to continue doing that is jeopardized by the possibility that lawmakers may commit all of the housing agency’s trust fund to the general fund this year because of a record budget shortfall.
“I would hope the legislators would think long and hard about that,” Auger said.
Dartland said that another idea being discussed would involve the state issuing short-term notes that could be sold to participating banks. Those notes could then be repaid with the homebuyers’ tax credits.
Copyright © 2009 The Orlando Sentinel
Monday, April 6, 2009
Florida legislative measures would allow insurance rates to rise
TALLAHASSE, Fla. – April 6, 2009 – Lawmakers have begun work on two major property insurance bills that aim to fix current problems in Florida’s insurance market.
One certain result: higher rates for homeowners, especially those covered by Citizens Property Insurance, the state-run insurer.
A bill in the state House of Representatives would allow rates to rise no more than an average 20 percent a year. A similar bill in the Senate, where debate will continue Monday, allows for increases of no more than 10 percent a year for any homeowner.
Gov. Charlie Crist, who championed insurance rate declines in the past two years, has acknowledged that rates need to rise. Some lawmakers are grudgingly moving in that direction as well.
After two hours of discussion on more than a dozen changes and revisions, the House bill moved forward Friday with approval from the Insurance, Business and Financial Affairs committee. Among the amendments shot down quickly was one from Rep. Richard Steinberg, D-Miami Beach, which would have Citizens freeze rates for one more year. Citizens’ rates have been frozen since the start of 2007.
Outside of South Florida, where Citizens has about half of its 1,066,304 policies, there is little sympathy for the insurer’s policyholders.
David Daniel, director of government relations for the Florida Chamber of Commerce, in urging the committee to pass the insurance bill, reminded the House committee that Citizens does not cover the majority of Florida homeowners.
Higher surcharges
Besides higher rates, Citizens policyholders could face higher surcharges if the insurer runs a deficit. The House bill would allow Citizens to surcharge its customers up to 25 percent first. If the insurer still has a gap, it can tax all policies in the state – including its own policyholders again. The Senate bill doesn’t contain this provision.
Right now, Citizens customers face a 15 percent surcharge first.
Both the House and Senate bills offer changes to reduce the state’s exposure to hurricane risk by shrinking the size of the Florida Hurricane Catastrophe Fund. The CAT fund provides lower-cost backup insurance to insurers working in Florida.
The House bill is more aggressive, reducing the fund’s capacity to cover losses and reducing the amount of reinsurance it can sell, noted Sam Miller of the Florida Insurance Council.
Some ambiguity
Some provisions of the bills remain a bit ambiguous, even to regulators. One amendment tacked onto the House bill baffled Deputy Insurance Commissioner Belinda Miller, who said she wasn’t sure whether the provision was meant to prevent the Office of Insurance Regulation from having input in the setting of agent commissions.
Ed Domansky, an OIR spokesman, says the amendment could be a way to undermine the agency’s conditional approval of State Farm’s plan to stop writing homeowners coverage in Florida in three years.
OIR is requiring that State Farm agents be allowed to write policies for other insurers.
Right now, they can only write State Farm policies.
Copyright © 2009 The Miami Herald
One certain result: higher rates for homeowners, especially those covered by Citizens Property Insurance, the state-run insurer.
A bill in the state House of Representatives would allow rates to rise no more than an average 20 percent a year. A similar bill in the Senate, where debate will continue Monday, allows for increases of no more than 10 percent a year for any homeowner.
Gov. Charlie Crist, who championed insurance rate declines in the past two years, has acknowledged that rates need to rise. Some lawmakers are grudgingly moving in that direction as well.
After two hours of discussion on more than a dozen changes and revisions, the House bill moved forward Friday with approval from the Insurance, Business and Financial Affairs committee. Among the amendments shot down quickly was one from Rep. Richard Steinberg, D-Miami Beach, which would have Citizens freeze rates for one more year. Citizens’ rates have been frozen since the start of 2007.
Outside of South Florida, where Citizens has about half of its 1,066,304 policies, there is little sympathy for the insurer’s policyholders.
David Daniel, director of government relations for the Florida Chamber of Commerce, in urging the committee to pass the insurance bill, reminded the House committee that Citizens does not cover the majority of Florida homeowners.
Higher surcharges
Besides higher rates, Citizens policyholders could face higher surcharges if the insurer runs a deficit. The House bill would allow Citizens to surcharge its customers up to 25 percent first. If the insurer still has a gap, it can tax all policies in the state – including its own policyholders again. The Senate bill doesn’t contain this provision.
Right now, Citizens customers face a 15 percent surcharge first.
Both the House and Senate bills offer changes to reduce the state’s exposure to hurricane risk by shrinking the size of the Florida Hurricane Catastrophe Fund. The CAT fund provides lower-cost backup insurance to insurers working in Florida.
The House bill is more aggressive, reducing the fund’s capacity to cover losses and reducing the amount of reinsurance it can sell, noted Sam Miller of the Florida Insurance Council.
Some ambiguity
Some provisions of the bills remain a bit ambiguous, even to regulators. One amendment tacked onto the House bill baffled Deputy Insurance Commissioner Belinda Miller, who said she wasn’t sure whether the provision was meant to prevent the Office of Insurance Regulation from having input in the setting of agent commissions.
Ed Domansky, an OIR spokesman, says the amendment could be a way to undermine the agency’s conditional approval of State Farm’s plan to stop writing homeowners coverage in Florida in three years.
OIR is requiring that State Farm agents be allowed to write policies for other insurers.
Right now, they can only write State Farm policies.
Copyright © 2009 The Miami Herald
Saturday, April 4, 2009
Layoff insurance latest carrot for homebuyers
LOS ANGELES (AP) – April 3, 2009 – Free granite countertops, swimming pools and landscaping aren’t going to convince anyone who’s afraid of losing a job to buy a home. But what about a promise to pay your mortgage if you get laid off?
With the unemployment rate at a 26-year high and home sales still in the dumps, a growing number of homebuilders and even some real estate agents are trying to coax buyers with a kind of mortgage unemployment insurance.
Major builders offering job loss mortgage payment plans include Lennar Corp., Pulte Homes Inc., The Ryland Group Inc. and Toll Brothers Inc.
“We’re literally adding at least one builder a day throughout the country,” said Todd Ludlow, senior vice president of Rainy Day Foundation, a nonprofit organization that administers the programs for many builders.
Builders can pay anywhere from $450 to $900 per customer for the coverage. Some absorb the cost as they would any other sales promotion, while others pass it on to buyers, Ludlow said.
In January, Lennar unveiled a version of Rainy Day’s program called “Peace of Mind Mortgage Payment Protection Plan.” Lennar covers monthly mortgage payments between $1,800 and $2,500, depending on the market, for a maximum of six months. Buyers can take advantage of the program only if they lose their job within the first two years after purchasing the home.
Launched last month, Toll’s mortgage protection program only covers homebuyers who finance their purchase through the company’s mortgage lender. The plan covers a maximum of six monthly payments of up to $2,500 a month – including interest, taxes and insurance – if the homeowner loses his or her job within two years after closing on their home.
“It’s for those who perhaps are not feeling themselves in imminent danger but just want that extra safety net,” said Kira McCarron, chief marketing officer for luxury homebuilder Toll, which is based in Horsham, Pa.
One of the most generous programs in the industry comes from Cousins Properties Inc., which is marketing the effort with its 10 Terminus Place luxury condo tower in Atlanta.
Cousins is offering to refund to buyers all their mortgage payments should the appraised value of their condos fall below the sale price after three years. The company, Cousins will let a buyer walk away from their property if they lose their job or just can’t make their mortgage payments anymore.
“You won’t have a foreclosure, you won’t have a credit issue and you won’t have any future obligation,” said Tom Bell, Cousins Properties’ chief executive, adding such homeowners would sacrifice their 5 percent downpayment.
Some real estate firms also are getting into the act.
Keller Williams Realty Inc. began offering job loss protection through the Rainy Day Foundation a couple of weeks ago as a test program in South Florida with an eye to an eventual national rollout.
“We’re bringing it to our sellers as a marketing opportunity,” said Greg Cook, spokesman for Keller Williams South Florida.
The firm also is offering it to buyers who enlist a Keller Williams agent to buy a home that’s not being listed through the company, Cook said.
The plan pays up to $2,500 to cover the full mortgage payment, including taxes and insurance, for six months.
The insurance costs $650, which can be structured into the closing costs paid by the seller, or it can be paid by the lender or the agent, Cook said.
Any buyers who’d rather skip the job loss insurance will get the $650 applied to the cost of the home, Cook said.
That’s a good idea, suggests J. Robert Hunter, director of insurance at the Consumer Federation of America.
Hunter said that homebuyers might be better off passing on the mortgage payment insurance plans – which he generally called “a gimmick” – and ask for a discount.
“If we’re in for a two-year recession and I lose my job, I may not get it back for two years, and six months is still not going to save me,” Hunter said. “I personally would want to find out how much money I could save buying the house without it.”
On the Net: http://www.lennar.com/Campaigns/National/PeaceOfMind
Ryland Homes: http://www.ryland.com/mortgageprotection.html
Rainy Day Foundation’s Homeowner Education and Loan Protection program: http://www.helpprogram.org
Cousins Properties’ 10 Terminus Place: http://www.10terminus.com
Copyright © 2009 The Associated Press
With the unemployment rate at a 26-year high and home sales still in the dumps, a growing number of homebuilders and even some real estate agents are trying to coax buyers with a kind of mortgage unemployment insurance.
Major builders offering job loss mortgage payment plans include Lennar Corp., Pulte Homes Inc., The Ryland Group Inc. and Toll Brothers Inc.
“We’re literally adding at least one builder a day throughout the country,” said Todd Ludlow, senior vice president of Rainy Day Foundation, a nonprofit organization that administers the programs for many builders.
Builders can pay anywhere from $450 to $900 per customer for the coverage. Some absorb the cost as they would any other sales promotion, while others pass it on to buyers, Ludlow said.
In January, Lennar unveiled a version of Rainy Day’s program called “Peace of Mind Mortgage Payment Protection Plan.” Lennar covers monthly mortgage payments between $1,800 and $2,500, depending on the market, for a maximum of six months. Buyers can take advantage of the program only if they lose their job within the first two years after purchasing the home.
Launched last month, Toll’s mortgage protection program only covers homebuyers who finance their purchase through the company’s mortgage lender. The plan covers a maximum of six monthly payments of up to $2,500 a month – including interest, taxes and insurance – if the homeowner loses his or her job within two years after closing on their home.
“It’s for those who perhaps are not feeling themselves in imminent danger but just want that extra safety net,” said Kira McCarron, chief marketing officer for luxury homebuilder Toll, which is based in Horsham, Pa.
One of the most generous programs in the industry comes from Cousins Properties Inc., which is marketing the effort with its 10 Terminus Place luxury condo tower in Atlanta.
Cousins is offering to refund to buyers all their mortgage payments should the appraised value of their condos fall below the sale price after three years. The company, Cousins will let a buyer walk away from their property if they lose their job or just can’t make their mortgage payments anymore.
“You won’t have a foreclosure, you won’t have a credit issue and you won’t have any future obligation,” said Tom Bell, Cousins Properties’ chief executive, adding such homeowners would sacrifice their 5 percent downpayment.
Some real estate firms also are getting into the act.
Keller Williams Realty Inc. began offering job loss protection through the Rainy Day Foundation a couple of weeks ago as a test program in South Florida with an eye to an eventual national rollout.
“We’re bringing it to our sellers as a marketing opportunity,” said Greg Cook, spokesman for Keller Williams South Florida.
The firm also is offering it to buyers who enlist a Keller Williams agent to buy a home that’s not being listed through the company, Cook said.
The plan pays up to $2,500 to cover the full mortgage payment, including taxes and insurance, for six months.
The insurance costs $650, which can be structured into the closing costs paid by the seller, or it can be paid by the lender or the agent, Cook said.
Any buyers who’d rather skip the job loss insurance will get the $650 applied to the cost of the home, Cook said.
That’s a good idea, suggests J. Robert Hunter, director of insurance at the Consumer Federation of America.
Hunter said that homebuyers might be better off passing on the mortgage payment insurance plans – which he generally called “a gimmick” – and ask for a discount.
“If we’re in for a two-year recession and I lose my job, I may not get it back for two years, and six months is still not going to save me,” Hunter said. “I personally would want to find out how much money I could save buying the house without it.”
On the Net: http://www.lennar.com/Campaigns/National/PeaceOfMind
Ryland Homes: http://www.ryland.com/mortgageprotection.html
Rainy Day Foundation’s Homeowner Education and Loan Protection program: http://www.helpprogram.org
Cousins Properties’ 10 Terminus Place: http://www.10terminus.com
Copyright © 2009 The Associated Press
Friday, April 3, 2009
Mortgage rates at record low for second week
WASHINGTON – April 3, 2009 – Rates on 30-year mortgages fell to the lowest level on record for the second consecutive week after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.
Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.78 percent this week, from 4.85 percent last week.
It was the lowest in the history of Freddie Mac’s survey, which dates back to 1971. Rates are down by more than a full percentage point from a year ago.
“Mortgage rates followed other interest rates lower this week amid reports of slower economic growth” Frank Nothaft, Freddie Mac vice president and chief economist, said in a prepared statement.
Low rates have sparked a surge in refinancing activity. The Mortgage Bankers Association said Wednesday its weekly application index climbed 3 percent for the week ended March 27, on top of a 30 percent increase a week earlier. Nearly 80 percent of applications came from borrowers seeking to refinance.
Mortgage rates fell dramatically over the winter and have fallen further after the Federal Reserve said last month it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.
Lenders, however, have tightened their standards dramatically over the past year, so the best rates are available to those with solid credit.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average rate on a 15-year fixed-rate mortgage dropped to 4.52 percent this week, from 4.58 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages fell to 4.92 percent, compared with 4.96 percent last week. Rates on one-year, adjustable-rate mortgages fell to 4.75 percent, from 4.85 percent.
The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for all mortgages in Freddie Mac’s survey except for one-year adjustable mortgages, which had an average fee of 0.6 point.
Copyright © 2009 The Associated Press
Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.78 percent this week, from 4.85 percent last week.
It was the lowest in the history of Freddie Mac’s survey, which dates back to 1971. Rates are down by more than a full percentage point from a year ago.
“Mortgage rates followed other interest rates lower this week amid reports of slower economic growth” Frank Nothaft, Freddie Mac vice president and chief economist, said in a prepared statement.
Low rates have sparked a surge in refinancing activity. The Mortgage Bankers Association said Wednesday its weekly application index climbed 3 percent for the week ended March 27, on top of a 30 percent increase a week earlier. Nearly 80 percent of applications came from borrowers seeking to refinance.
Mortgage rates fell dramatically over the winter and have fallen further after the Federal Reserve said last month it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.
Lenders, however, have tightened their standards dramatically over the past year, so the best rates are available to those with solid credit.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average rate on a 15-year fixed-rate mortgage dropped to 4.52 percent this week, from 4.58 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages fell to 4.92 percent, compared with 4.96 percent last week. Rates on one-year, adjustable-rate mortgages fell to 4.75 percent, from 4.85 percent.
The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for all mortgages in Freddie Mac’s survey except for one-year adjustable mortgages, which had an average fee of 0.6 point.
Copyright © 2009 The Associated Press
Thursday, April 2, 2009
Chinese drywall spurs lawsuits and problems
ORLANDO, Fla. – April 2, 2009 – Drywall imported from China continues to make headlines nationwide, and a growing number of lawsuits have been filed in Florida. In response to the problem, FAR’s Business Forms Forum Task Force is considering a new form that addresses Chinese drywall problems. Task force members are slated to discuss the issue again on April 6.
Attorneys with Higer Lichter Givner, The Blumstein Law Firm and Podhurst Orseck have filed a federal class action lawsuit on behalf of Florida homeowners Janet Morris-Chin and Dajan Green. They’ve targeted Knauf Plasterboard Tianjin Co. Ltd., and the foreign company that distributed that company’s drywall within the United States, Rothchilt International Ltd.
Drywall manufactured in China was used in U.S. homes between 2004 and 2007. According to the lawsuit, toxic chemicals that emanate from the drywall have damaged houses, fixtures and personal property. Members of the class action are also seeking medical monitoring for any adverse effects of prolonged exposure to the toxic chemicals.
“We have filed a national class action because more than 60,000 homes in 13 states are believed to have defective Chinese drywall,” says Victor M. Diaz with Podhurst Orseck. “We anticipate that when the Consumer Products Safety Commission completes its investigation, this product will be recalled across the country. This could be potentially one of the largest product liability cases related to home construction in U.S. history.”
Morris-Chin and Green purchased their home in Homestead, Fla. Shortly afterward, they noticed damage from the defective drywall: an air-conditioning coil was black and iced over when it should have been copper-colored and ice-free; and two home computers stopped working and the nearby wiring was covered in black soot. The family also developed physical problems, including respiratory ailments and headaches.
So far, the Florida Department of Health has received more than 100 complaints concerning the Chinese drywall and health concerns. Lawsuits are being filed in Florida, Alabama and Louisiana, while residents in Mississippi, Virginia and California have also reported problems.
On Monday, U.S. Sens. Bill Nelson, (D-Fla.), and Mary Landrieu, (D-La.), proposed legislation seeking a recall and an immediate ban on tainted building products from China.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Attorneys with Higer Lichter Givner, The Blumstein Law Firm and Podhurst Orseck have filed a federal class action lawsuit on behalf of Florida homeowners Janet Morris-Chin and Dajan Green. They’ve targeted Knauf Plasterboard Tianjin Co. Ltd., and the foreign company that distributed that company’s drywall within the United States, Rothchilt International Ltd.
Drywall manufactured in China was used in U.S. homes between 2004 and 2007. According to the lawsuit, toxic chemicals that emanate from the drywall have damaged houses, fixtures and personal property. Members of the class action are also seeking medical monitoring for any adverse effects of prolonged exposure to the toxic chemicals.
“We have filed a national class action because more than 60,000 homes in 13 states are believed to have defective Chinese drywall,” says Victor M. Diaz with Podhurst Orseck. “We anticipate that when the Consumer Products Safety Commission completes its investigation, this product will be recalled across the country. This could be potentially one of the largest product liability cases related to home construction in U.S. history.”
Morris-Chin and Green purchased their home in Homestead, Fla. Shortly afterward, they noticed damage from the defective drywall: an air-conditioning coil was black and iced over when it should have been copper-colored and ice-free; and two home computers stopped working and the nearby wiring was covered in black soot. The family also developed physical problems, including respiratory ailments and headaches.
So far, the Florida Department of Health has received more than 100 complaints concerning the Chinese drywall and health concerns. Lawsuits are being filed in Florida, Alabama and Louisiana, while residents in Mississippi, Virginia and California have also reported problems.
On Monday, U.S. Sens. Bill Nelson, (D-Fla.), and Mary Landrieu, (D-La.), proposed legislation seeking a recall and an immediate ban on tainted building products from China.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Wednesday, April 1, 2009
NAR: Pending home sales rise 2.1 percent
WASHINGTON – April 1, 2009 – Pending home sales have edged up, hinting at a possible pickup of sales activity in coming months, according to the National Association of Realtors® (NAR).
The Pending Home Sales Index (PHSI), a forward-looking indicator based on real estate contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3.
Lawrence Yun, NAR chief economist, says the market continues to underperform. “Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains,” he says. “More buyers are getting into the market to take advantage of stimulus incentives and much improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.”
The PHSI in the Northeast rose 10.6 percent to 63.9 in February and is 11.2 percent below a year ago. In the Midwest, the index jumped 14.5 percent to 83.1 and is 3.4 percent higher than February 2008. The index in the South rose 4.4 percent to 85.8 in February and is 0.1 percent below a year ago. In the West, the index fell 13.5 percent to 89.6 and is 1.7 percent below February 2008.
NAR President Charles McMillan says home buyers are in an excellent position. “The drop in mortgage interest rates and home prices means the buying power of a typical family has never been better,” he says. “If you have a good job and long-term plans, it’s unlikely that you’ll find a much better time to buy a home. This is especially true for first-time buyers who can qualify for an $8,000 tax credit this year, have a great selection of homes to choose from, and are in a favorable negotiating position.”
Housing Affordability Index
Also today, NAR announced that its Housing Affordability Index (HAI) rose 0.9 percentage points to a record high of 173.5 in February from an upwardly revised index of 172.6 in January; it’s 36.3 percentage points higher than a year ago. The HAI, a broad measure of housing affordability using consistent values and assumptions over time, shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.
A median-income family, earning $59,700, could afford a home costing $285,600 in February with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price is considerably higher the median existing single-family home price in February, which was only $164,600.
“Obviously, potential home buyers need to be managing their existing debt effectively,” McMillan says. “A Realtor can counsel you on what you may be able to afford given your personal financial situation. In some cases, buyers who want to build their future through homeownership may need to start reducing their debt and improving their credit score before entering the housing market. Last year at this time, the typical family could afford a home costing $265,600, which is $20,000 less than the current affordable price. Homes in many areas are now selling for less than replacement construction costs – clearly this is an abnormal situation which will change once inventory is drawn down and supply and demand come closer into balance.”
Yun says he expects housing inventories to rise through early summer from a normal seasonal pattern of more sellers appearing in the spring. “But with the positive housing stimulus incentives now in place, we expect home sales to gain momentum in the second half of the year with first-time buyers absorbing a lot of the excess inventory,” he says. “Under these conditions, we should see price stabilization in most markets by the end of the year.”
© 2009 FLORIDA ASSOCIATION OF REALTORS®
The Pending Home Sales Index (PHSI), a forward-looking indicator based on real estate contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3.
Lawrence Yun, NAR chief economist, says the market continues to underperform. “Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains,” he says. “More buyers are getting into the market to take advantage of stimulus incentives and much improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.”
The PHSI in the Northeast rose 10.6 percent to 63.9 in February and is 11.2 percent below a year ago. In the Midwest, the index jumped 14.5 percent to 83.1 and is 3.4 percent higher than February 2008. The index in the South rose 4.4 percent to 85.8 in February and is 0.1 percent below a year ago. In the West, the index fell 13.5 percent to 89.6 and is 1.7 percent below February 2008.
NAR President Charles McMillan says home buyers are in an excellent position. “The drop in mortgage interest rates and home prices means the buying power of a typical family has never been better,” he says. “If you have a good job and long-term plans, it’s unlikely that you’ll find a much better time to buy a home. This is especially true for first-time buyers who can qualify for an $8,000 tax credit this year, have a great selection of homes to choose from, and are in a favorable negotiating position.”
Housing Affordability Index
Also today, NAR announced that its Housing Affordability Index (HAI) rose 0.9 percentage points to a record high of 173.5 in February from an upwardly revised index of 172.6 in January; it’s 36.3 percentage points higher than a year ago. The HAI, a broad measure of housing affordability using consistent values and assumptions over time, shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.
A median-income family, earning $59,700, could afford a home costing $285,600 in February with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price is considerably higher the median existing single-family home price in February, which was only $164,600.
“Obviously, potential home buyers need to be managing their existing debt effectively,” McMillan says. “A Realtor can counsel you on what you may be able to afford given your personal financial situation. In some cases, buyers who want to build their future through homeownership may need to start reducing their debt and improving their credit score before entering the housing market. Last year at this time, the typical family could afford a home costing $265,600, which is $20,000 less than the current affordable price. Homes in many areas are now selling for less than replacement construction costs – clearly this is an abnormal situation which will change once inventory is drawn down and supply and demand come closer into balance.”
Yun says he expects housing inventories to rise through early summer from a normal seasonal pattern of more sellers appearing in the spring. “But with the positive housing stimulus incentives now in place, we expect home sales to gain momentum in the second half of the year with first-time buyers absorbing a lot of the excess inventory,” he says. “Under these conditions, we should see price stabilization in most markets by the end of the year.”
© 2009 FLORIDA ASSOCIATION OF REALTORS®
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