From January to February of this year, foreclosures in Palm Beach County jumped 63%...and year over year they were up 68% in February...
click here to read the full story
3/6/10
Lakeview Estates market activity recap...on-the-market, sold and under contract
There is currently only 1 home on the market...it is an Antigua with a pool at $339k. It has been on the market for 137 days.
There is 1 property with a contract pending...it is an Aspen with a pool, Short Sale, last asking price of $299k.
There were 2 reported sales in the last three months:
1) Aspen - Corporate Relocation - $270,000
2) Aspen - Bank Owned - Pool - $233,000
Then there were 3 other homes that were on the market this year that did not sell but are no longer actively on the market.
There is 1 property with a contract pending...it is an Aspen with a pool, Short Sale, last asking price of $299k.
There were 2 reported sales in the last three months:
1) Aspen - Corporate Relocation - $270,000
2) Aspen - Bank Owned - Pool - $233,000
Then there were 3 other homes that were on the market this year that did not sell but are no longer actively on the market.
2/28/10
CNN Money reports 25% home price decline ahead for our area!!
Take a look at this eye-opening post on our Winston Trails blog...If you're a home owner, you NEED to read it. Just click right here
2/10/10
New credit card rules to take effect soon...H.R. 627
The Credit Card Act of 2009 phases in, with the majority of consumer protections kicking in Feb. 22, 2010. If you are into reading lengthy government documents, click on the blog post title ( or the link below) and you will be redirected to the 33 page, HR 627 document entitled: ‘‘Credit Card Accountability Responsibility and Disclosure Act of 2009’’
If you'd rather just see a brief summary... here you go:
Sec. 101. Prior notice of rate increases required. Prohibits increase in APR without 45 days= notice. Prohibits applying rate increases retroactively to existing balances. Requires clear notice of right to cancel credit card when APR is raised.
Sec. 102. Freeze on interest rate terms and fees on canceled cards. Prevents APR from being raised, or repayment terms being cancelled, if a cardholder cancels a card.
Sec. 103. Limits on fees and interest charges.
< Prohibits double cycle billing: Prohibits credit card issuers imposing interest charges on any portion of a balance that is paid by the due date.
< Over-the-limit fee restrictions: Cardholders must be given the option of having a fixed credit limit that cannot be exceeded, and card companies cannot charge overlimit fees on cardholders with fixed limits. Cardholders may elect to prohibit the creditor from completing overlimit transactions that will result in a fee or constitute a default under the credit agreement. Overlimit charges can only be charged when an extension of credit, rather than a fee or interest charge, causes the credit limit to be exceeded. Overlimit charges can only be applied once during a billing cycle.
< Prohibits charging interest on fees: Prohibits the charging of interest on credit card transaction fees, such as late fees and overlimit fees.
< Limits on charging certain fees: Prohibits credit card issuers from charging a fee to allow a credit card holder to pay a credit card debt, whether payment is by mail, telephone, electronic transfer, or otherwise. Requires fees to be reasonably related to cost. Foreign currency exchange fees may only be imposed in an account transaction if the fee reasonably reflects costs incurred by the creditor and the creditor publicly discloses its method for calculating the fee.
Sec. 104. Consumer right to reject card before notice is provided of open account. Gives cardholders who get preapproved the right to reject the card up until they activate it without having their credit adversely affected.
Sec. 105. Use of terms clarified. Prevents card companies from using the terms fixed rate and prime rate in a misleading way by establishing a single definition.
Sec. 106. Application of card payments. Prohibits credit card companies from setting early deadlines for credit card payments. Requires payments to be applied first to the credit card balance with the highest rate of interest, and to minimize finance charges. Prohibits late fees if the card issuer delayed crediting the payment. Prohibits card companies from charging late fees when a cardholder presents proof of mailing payment within 7 days of the due date.
Sec. 107. Length of billing period. Requires credit card statements to be mailed a least 21 days before the bill is due (current requirement is 14 days).
Sec. 108. Prohibition on universal default and unilateral changes to cardholder agreements. Prevents credit card issuers from increasing interest rates on cardholders in good standing for reasons unrelated to the cardholders behavior with respect to that card. Prevents credit card issuers from changing the terms of a credit card contract for the length of the card agreement. Allows penalty rate increases only for specific, material actions or omissions of the consumer specified in the card agreement. Requires issuers to lower penalty rates that have been imposed on a cardholder after 6 months if the cardholder commits no further violations.
Sec. 201. Payoff timing disclosures. Requires credit card issuers to provide individual consumer account information and to disclose the period of time it will take the cardholder to pay off the card balance if only minimum monthly payments are made. Also requires issuers to disclose the total amount of interest the cardholder will pay to pay off the card balance if only minimum monthly payments are made.
Sec. 202. Requirements relating to late payment deadlines and penalties. Requires full disclosure in billing statements of required payment due dates and applicable late payment penalties. Requires that cardholders be given a reasonable period to make payment. Requires that payment at local branches be credited same-day.
The above summary only details a small portion of what the bill regulates...if you have any credit cards (and who doesn't), it may pay to print out and read the entire bill.
I hope this is helpful to you.
If you'd rather just see a brief summary... here you go:
Sec. 101. Prior notice of rate increases required. Prohibits increase in APR without 45 days= notice. Prohibits applying rate increases retroactively to existing balances. Requires clear notice of right to cancel credit card when APR is raised.
Sec. 102. Freeze on interest rate terms and fees on canceled cards. Prevents APR from being raised, or repayment terms being cancelled, if a cardholder cancels a card.
Sec. 103. Limits on fees and interest charges.
< Prohibits double cycle billing: Prohibits credit card issuers imposing interest charges on any portion of a balance that is paid by the due date.
< Over-the-limit fee restrictions: Cardholders must be given the option of having a fixed credit limit that cannot be exceeded, and card companies cannot charge overlimit fees on cardholders with fixed limits. Cardholders may elect to prohibit the creditor from completing overlimit transactions that will result in a fee or constitute a default under the credit agreement. Overlimit charges can only be charged when an extension of credit, rather than a fee or interest charge, causes the credit limit to be exceeded. Overlimit charges can only be applied once during a billing cycle.
< Prohibits charging interest on fees: Prohibits the charging of interest on credit card transaction fees, such as late fees and overlimit fees.
< Limits on charging certain fees: Prohibits credit card issuers from charging a fee to allow a credit card holder to pay a credit card debt, whether payment is by mail, telephone, electronic transfer, or otherwise. Requires fees to be reasonably related to cost. Foreign currency exchange fees may only be imposed in an account transaction if the fee reasonably reflects costs incurred by the creditor and the creditor publicly discloses its method for calculating the fee.
Sec. 104. Consumer right to reject card before notice is provided of open account. Gives cardholders who get preapproved the right to reject the card up until they activate it without having their credit adversely affected.
Sec. 105. Use of terms clarified. Prevents card companies from using the terms fixed rate and prime rate in a misleading way by establishing a single definition.
Sec. 106. Application of card payments. Prohibits credit card companies from setting early deadlines for credit card payments. Requires payments to be applied first to the credit card balance with the highest rate of interest, and to minimize finance charges. Prohibits late fees if the card issuer delayed crediting the payment. Prohibits card companies from charging late fees when a cardholder presents proof of mailing payment within 7 days of the due date.
Sec. 107. Length of billing period. Requires credit card statements to be mailed a least 21 days before the bill is due (current requirement is 14 days).
Sec. 108. Prohibition on universal default and unilateral changes to cardholder agreements. Prevents credit card issuers from increasing interest rates on cardholders in good standing for reasons unrelated to the cardholders behavior with respect to that card. Prevents credit card issuers from changing the terms of a credit card contract for the length of the card agreement. Allows penalty rate increases only for specific, material actions or omissions of the consumer specified in the card agreement. Requires issuers to lower penalty rates that have been imposed on a cardholder after 6 months if the cardholder commits no further violations.
Sec. 201. Payoff timing disclosures. Requires credit card issuers to provide individual consumer account information and to disclose the period of time it will take the cardholder to pay off the card balance if only minimum monthly payments are made. Also requires issuers to disclose the total amount of interest the cardholder will pay to pay off the card balance if only minimum monthly payments are made.
Sec. 202. Requirements relating to late payment deadlines and penalties. Requires full disclosure in billing statements of required payment due dates and applicable late payment penalties. Requires that cardholders be given a reasonable period to make payment. Requires that payment at local branches be credited same-day.
The above summary only details a small portion of what the bill regulates...if you have any credit cards (and who doesn't), it may pay to print out and read the entire bill.
I hope this is helpful to you.
2/3/10
The next chapter in the book entitled: The housing crisis..what they DON'T want you to know!
On our main blog, I just posted an eye-opening entry which details the reasoning behind the likelihood of a "second leg down" in local home values...rather than duplicate the entire post here, just click here or on the post title to read the entire post.
Thanks...Steve Jackson
Thanks...Steve Jackson
1/26/10
Lakeview Estates market activity recap...sold and under contract
1) Extended Aspen/Pool...sold for $223,000
2) Aspen under contract
3) Aspen under contract...short sale
4) Aspen under contract
1/15/10
IRS says "sorry, you can't file for your tax credit"!
NEW YORK (CNNMoney.com) -- Did you purchase a home after Nov. 6? Don't expect your $8,000 homebuyer tax credit any time soon. Since Congress passed the initial tax credit last February... more than 1.4 million buyers have taken advantage of it...But that all changed on Nov. 6...it appears that the IRS has NOT ALLOWED ANYONE TO FILE since November 6th...
Congress extended the credit to include contracts signed by April 30 and closed by June 30. It also made a refund of up to $6,500 available to existing homeowners looking to buy something new. And that marked the start of a new IRS paperwork wrangle. Those homeowners who closed their sale before Nov. 6 use Form 5405 to claim the credit right away. But those closing after that date are in limbo because no form yet exists for them to file! The IRS had been expected to come out with a revised form by early January, but it has yet to release anything.
Also, with the new fraud-prevention regulation attached to the extension/expansion credit, there is no E-filing available for those claiming the extension...adding to the already extended timeframe for the tax credit refund.
If you are planning to buy within the timeframe guidelines of the tax credit and are hoping to receive the money quickly...don't count on it!
As always, check with your tax advisor...
Congress extended the credit to include contracts signed by April 30 and closed by June 30. It also made a refund of up to $6,500 available to existing homeowners looking to buy something new. And that marked the start of a new IRS paperwork wrangle. Those homeowners who closed their sale before Nov. 6 use Form 5405 to claim the credit right away. But those closing after that date are in limbo because no form yet exists for them to file! The IRS had been expected to come out with a revised form by early January, but it has yet to release anything.
Also, with the new fraud-prevention regulation attached to the extension/expansion credit, there is no E-filing available for those claiming the extension...adding to the already extended timeframe for the tax credit refund.
If you are planning to buy within the timeframe guidelines of the tax credit and are hoping to receive the money quickly...don't count on it!
As always, check with your tax advisor...
1/8/10
Price reduction...
I know WHY agents do this, but I've always thought...why bother?
An Antigua that was previously priced at $344,900 just reduced their price to $343,779.
I would like email or comments from buyers out there...would this type of a price reduction on a home compel you to:
1) Go to see the home now if you didn't go when it was priced at $344,900?
2) If you had already seen the home but did not make an offer, would this price reduction motivate you to place an offer?
Thanks everybody,
An Antigua that was previously priced at $344,900 just reduced their price to $343,779.
I would like email or comments from buyers out there...would this type of a price reduction on a home compel you to:
1) Go to see the home now if you didn't go when it was priced at $344,900?
2) If you had already seen the home but did not make an offer, would this price reduction motivate you to place an offer?
Thanks everybody,
1/4/10
Industry insiders expecting home prices to resume fall...
NEW YORK (CNNMoney.com) -- After four months of gains, home prices flattened in October. Worse yet, industry insiders think that they'll soon start to fall.
Prices have risen more than 3% since May, according to S&P/Case-Shiller. But most forecasts predict price declines in 2010, with possible losses ranging from anywhere from 3% on up. Fiserv Lending Solutions, a financial analytics firm, forecasts that prices will fall in all but 39 of the 381 markets it covers, with an average drop of 11.3%.
"We've seen recent price stabilization because of low mortgage interest rates and the impact of the first-time homebuyers tax credit," said Pat Newport of IHS Global Research. "But there are really good reasons to think prices will now start going down."
There are three main reasons for the reversal: a coming flood of foreclosures, rising interest rates and the eventual end of the tax credits.
The above is a snippet of a CNNmoney.com article from Friday, January 1st.
Take a look at this mortgage interest rate comparison:
4.5% on a $400k loan = 2025.19/mo
8% on a $276k loan = 2026.74/mo
Right now...we are at about a 5%+ average mortgage rate...it has risen the past 3 weeks, and that is with the feds direct involvement with the rate mechanism. If the feds "backs away" from direct involvement some time this year, rates will surely increase. It is not too inconceivable that rates could rise to 8%, which, in the example above, reduces the buying power of the representative buyer $124,000!
If the "blame" for the housing bubble has been "low interest rates and loose lending standards" what possible effect will the opposite have? Couple higher rates, extremely tight/restrictive lending standards, the end of buyer tax credits and a wave of bank-owned homes...It's not a pretty picture being painted.
Prices have risen more than 3% since May, according to S&P/Case-Shiller. But most forecasts predict price declines in 2010, with possible losses ranging from anywhere from 3% on up. Fiserv Lending Solutions, a financial analytics firm, forecasts that prices will fall in all but 39 of the 381 markets it covers, with an average drop of 11.3%.
"We've seen recent price stabilization because of low mortgage interest rates and the impact of the first-time homebuyers tax credit," said Pat Newport of IHS Global Research. "But there are really good reasons to think prices will now start going down."
There are three main reasons for the reversal: a coming flood of foreclosures, rising interest rates and the eventual end of the tax credits.
The above is a snippet of a CNNmoney.com article from Friday, January 1st.
Take a look at this mortgage interest rate comparison:
4.5% on a $400k loan = 2025.19/mo
8% on a $276k loan = 2026.74/mo
Right now...we are at about a 5%+ average mortgage rate...it has risen the past 3 weeks, and that is with the feds direct involvement with the rate mechanism. If the feds "backs away" from direct involvement some time this year, rates will surely increase. It is not too inconceivable that rates could rise to 8%, which, in the example above, reduces the buying power of the representative buyer $124,000!
If the "blame" for the housing bubble has been "low interest rates and loose lending standards" what possible effect will the opposite have? Couple higher rates, extremely tight/restrictive lending standards, the end of buyer tax credits and a wave of bank-owned homes...It's not a pretty picture being painted.
12/28/09
Price reduction
An extended Aspen that was placed on the market 24 days ago at $280,000 has just reduced their asking price to $270,000. This home was originally placed on the market in August of this year at $335,000...subsequently reduced to $290,000, but the listing agreement with that agent was cancelled and the home was re-listed with a new agent at the $280,000 price this month.
The sellers purchased the home in 1999 for $167,400.
The sellers purchased the home in 1999 for $167,400.
Merry Christmas Freddie and Fannie...from us, the taxpayers!
In an oddly timed move, on Christmas Eve The Treasury announced what essentially amounts to a blank check for the potential bad debt of Fannie Mae and Freddie Mac. Prior, the Treasury had a $200 Billion (each) limit on bailing out the "insolvent" mortgage lenders. At the present time, the two, combined have drawn down a little over $110 billion of the approved $400 billion.
Makes you wonder about the stability and equity of the $6 trillion dollars of loans on their books, doesn't it? If there is almost $300 billion still to go under their "credit-line" but The Treasury lifts all limits...on Christmas Eve no less! That scares me a little bit...as a taxpayer, homeowner and real estate agent...
Makes you wonder about the stability and equity of the $6 trillion dollars of loans on their books, doesn't it? If there is almost $300 billion still to go under their "credit-line" but The Treasury lifts all limits...on Christmas Eve no less! That scares me a little bit...as a taxpayer, homeowner and real estate agent...
12/23/09
FHA, 1st time buyers, short sales and perceptions...
Nearly 40% of existing homes purchased in November used an FHA-insured mortgage, according to a National Association of Realtors survey.
As a result, the FHA is having to defend the program, saying that it is well enough capitalized to avoid any major losses in case of surging defaults. Earlier this month, Department of Housing and Urban Development secretary Shaun Donovan was before Congress defending the FHA, and ensuring the House Financial Services Committee that the single-family insurance program is “not the next subprime.”
The increase in demand caused the capital reserve ratio at the FHA to drop below the Congressionally mandated 2% minimum, leaving HUD and the FHA scrambling to ensure the FHA program’s soundness.
A number of proposals are being considered, including the raising of insurance premiums, raising the minimum FICO (credit score) requirements, raising the minimum required down payments and reducing the allowable seller contribution...all of which will make it more difficult for buyers to qualify for and obtain financing (and hence, not good for sellers).
Other results from the Realtors survey showed first time homebuyers accounted for 51% of all transactions and are actively competing with investors for distressed properties...
And, distressed properties aren’t just affecting transaction price, however. The presence of distressed properties is influencing buyers’ perceptions of other homes for sale and many buyers have pricing expectations that treat every property as if it were a distressed sale.
Additionally, HUD issued a ruling that borrowers who were in default on their mortgage at the time of a short sale are not eligible for an FHA-insured mortgage for three years...
As a result, the FHA is having to defend the program, saying that it is well enough capitalized to avoid any major losses in case of surging defaults. Earlier this month, Department of Housing and Urban Development secretary Shaun Donovan was before Congress defending the FHA, and ensuring the House Financial Services Committee that the single-family insurance program is “not the next subprime.”
The increase in demand caused the capital reserve ratio at the FHA to drop below the Congressionally mandated 2% minimum, leaving HUD and the FHA scrambling to ensure the FHA program’s soundness.
A number of proposals are being considered, including the raising of insurance premiums, raising the minimum FICO (credit score) requirements, raising the minimum required down payments and reducing the allowable seller contribution...all of which will make it more difficult for buyers to qualify for and obtain financing (and hence, not good for sellers).
Other results from the Realtors survey showed first time homebuyers accounted for 51% of all transactions and are actively competing with investors for distressed properties...
And, distressed properties aren’t just affecting transaction price, however. The presence of distressed properties is influencing buyers’ perceptions of other homes for sale and many buyers have pricing expectations that treat every property as if it were a distressed sale.
Additionally, HUD issued a ruling that borrowers who were in default on their mortgage at the time of a short sale are not eligible for an FHA-insured mortgage for three years...
12/14/09
A Bank-Owned property has sold...
The bank foreclosure on Blue Bay (an Aspen 5) closed on 12/11/09
The bank priced the home at $285,000, however the final selling price was $223,000 with the bank accepting a cash deal. The home was on the market for a total of 48 days.
The prior owner paid $450,000 for the home in December of 2006 and it appears that the purchase was 100% financing (80/20).
The prior owner paid $450,000 for the home in December of 2006 and it appears that the purchase was 100% financing (80/20).
12/10/09
Price reduction
12/4/09
Aspen on the market
Back in 2007/2008 the current owners had the home on the market at $421,400 however after 6 months at that price, the listing expired. Doing a little research reveals that back in early to mid 2008, an Aspen with a pool may have commanded a price in the mid $300's.
11/24/09
Some must-read stats...
According to a CNNmoney.com report today, nationally, 1 in 4 mortgages is currently “under water”. That comes to almost 11 Million homes where the owner owes more than the home is worth.
The majority of underwater mortgages are heavily concentrated in five states that have particularly suffered from the housing bust: Nevada, at 65%; Arizona, at 48%; Florida, at 45%; Michigan, at 37%; and California, at 35%.
For us in Florida, that is a very scary number…45% of all homeowners owe more than their homes current market value! Add to that continued job losses and the potential number of defaults/foreclosures is tremendous.
Hopefully, the expanded and extended homebuyer tax credit will keep a finger in the dyke long enough to give sellers who are not yet under water who want/need to sell to a chance to get out. But looking forward, as the tax credit expires, and if the Fed follows through on its plans to scale back its purchases of mortgage-backed securities (MBS), which will signal the end of these historically low interest rates, I sincerely believe that we will see a resumption of the decline in home values here in South Florida.
Sellers and those thinking of selling take heed…your window of opportunity is the next 6 months…
The majority of underwater mortgages are heavily concentrated in five states that have particularly suffered from the housing bust: Nevada, at 65%; Arizona, at 48%; Florida, at 45%; Michigan, at 37%; and California, at 35%.
For us in Florida, that is a very scary number…45% of all homeowners owe more than their homes current market value! Add to that continued job losses and the potential number of defaults/foreclosures is tremendous.
Hopefully, the expanded and extended homebuyer tax credit will keep a finger in the dyke long enough to give sellers who are not yet under water who want/need to sell to a chance to get out. But looking forward, as the tax credit expires, and if the Fed follows through on its plans to scale back its purchases of mortgage-backed securities (MBS), which will signal the end of these historically low interest rates, I sincerely believe that we will see a resumption of the decline in home values here in South Florida.
Sellers and those thinking of selling take heed…your window of opportunity is the next 6 months…
11/13/09
Foreclosure goes under contract
The Aspen 5 model on Blue Bay that was taken back by the bank and placed on the market September 26th has just gone under contract...The owner that lost the home to the bank purchased it in December of 2006 for $450,000, and the Palm Beach County Courthouse records indicate that it was a 100% (80/20) loan....The big loser here looks like the bank.
11/10/09
Aspen price reduction
An expanded Aspen that was originally priced at $335k back in August has just reduced their asking price to $290k. This home is NOT being marketed as a short sale.
11/6/09
President Obama signs the 1st time homebuyer tax credit extension into law AND expands it to include NOT only 1st time buyers
More home buyers get tax credit
President Obama signed into law a $24 billion economic stimulus bill providing tax incentives to prospective home buyers.
The tax credits center on extending the $8,000 credit for first-time homebuyers that was included in the stimulus package. The credit, which was to expire at the end of this month, will be available through next June as long as the buyer signs a binding contract by the end of April, 2010.
The program is expanded to include a $6,500 credit for existing homeowners who buy a new place after living in their current residence for at least five years.
The above is only the basic outline of the program…If you would like the full details just give me a quick call at 561-432-5202 or email TaxCredit@5614325202.com
President Obama signed into law a $24 billion economic stimulus bill providing tax incentives to prospective home buyers.
The tax credits center on extending the $8,000 credit for first-time homebuyers that was included in the stimulus package. The credit, which was to expire at the end of this month, will be available through next June as long as the buyer signs a binding contract by the end of April, 2010.
The program is expanded to include a $6,500 credit for existing homeowners who buy a new place after living in their current residence for at least five years.
The above is only the basic outline of the program…If you would like the full details just give me a quick call at 561-432-5202 or email TaxCredit@5614325202.com
11/5/09
Expanded 1st time buyer $8000 tax credit headed to President Obamas desk for signature
And it's not just for 1st time buyers anymore!
Call me for the details.
561.432.5202
Call me for the details.
561.432.5202
New Govt. plan to delay, not cure, the foreclosure problem...
Fannie Mae to rent out homes instead of foreclosing
WASHINGTON (AP) — Thousands of borrowers on the verge of foreclosure will soon have the option of renting their homes from Fannie Mae, under a policy announced Thursday.
The government-controlled company, through its "Deed for Lease" program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.
The program will "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Jay Ryan, a Fannie Mae vice president, said in a statement.
However, the effort is likely to affect a relatively small number of homeowners. In the first half of the year, Fannie Mae took back about 1,200 properties through this process, known as a deed-in-lieu of foreclosure. That pales in comparison to the 57,000 foreclosed properties the company repossessed in the period.
While neither option is particularly attractive for the homeowner, a deed-in-lieu does less harm to the borrower's credit record.
The rental program is designed to help homeowners who don't qualify for a loan modification under the Obama administration's plan, but still want to remain in their homes. Fannie Mae is not planning to market the homes for sale during the one-year rental period.
Fannie Mae has hired an outside company, which officials declined to identify, to manage the properties.(where's the transparency...Fannie is owned by the taxpayers for all intents and purposes)
To qualify, homeowners have to live in the home as their primary residence and prove that they can afford the market rent, which would be determined by the management company. The rent can't be more than 31% of their pretax income.
WASHINGTON (AP) — Thousands of borrowers on the verge of foreclosure will soon have the option of renting their homes from Fannie Mae, under a policy announced Thursday.
The government-controlled company, through its "Deed for Lease" program, will allow borrowers to transfer ownership to Fannie Mae and sign a one-year lease, with month-to-month extensions after that.
The program will "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities," Jay Ryan, a Fannie Mae vice president, said in a statement.
However, the effort is likely to affect a relatively small number of homeowners. In the first half of the year, Fannie Mae took back about 1,200 properties through this process, known as a deed-in-lieu of foreclosure. That pales in comparison to the 57,000 foreclosed properties the company repossessed in the period.
While neither option is particularly attractive for the homeowner, a deed-in-lieu does less harm to the borrower's credit record.
The rental program is designed to help homeowners who don't qualify for a loan modification under the Obama administration's plan, but still want to remain in their homes. Fannie Mae is not planning to market the homes for sale during the one-year rental period.
Fannie Mae has hired an outside company, which officials declined to identify, to manage the properties.(where's the transparency...Fannie is owned by the taxpayers for all intents and purposes)
To qualify, homeowners have to live in the home as their primary residence and prove that they can afford the market rent, which would be determined by the management company. The rent can't be more than 31% of their pretax income.
11/4/09
Short sale negotiation insider info...
I thought my readers may find it interesting to hear a little bit about some of the "behind-the-scenes" information regarding negotiating a short sale...Every day we are dealing with lenders and are involved with negotiations on short sales. A recent hurdle has been the negotiations with 2nd lien holders (2nd mortgages/home equity liens). We thought that the following may be of interest to a lot of folks currently contemplating how or even IF they should do a short sale....
These days many 2nd mortgage companies are now asking for 10% of their principal balance in order to release their lien. Prior to these recent changes, ALL 1st mortgage holders allowed a maximum of $1,000 to 2nd mortgages, period. Once 2nd mortgage holders started demanding 10%, it made obtaining approvals from both mortgages quite challenging. After all, 10% is quite a large number! And most 1st mortgages will only allow a maximum of $1,000 right?
Well luckily for our sellers, SOME 1st mortgage holders have paid attention to the changing trends and have started to change their policies to match. Now, more and more 1st mortgage holders are allowing a payoff of up to 10% to 2nd mortgages to avoid any complications. And for us short sale specialists, this is helpful to successfully navigating a short sale for our sellers! One of the lenders that have started to be more open to this policy change is ASC.
Keep in mind, not all 1st mortgage holders are doing this, and it is on a case-by-case basis, but, they are at least open to it and some will approve 10% to be paid to 2nd mortgage holders.
These days many 2nd mortgage companies are now asking for 10% of their principal balance in order to release their lien. Prior to these recent changes, ALL 1st mortgage holders allowed a maximum of $1,000 to 2nd mortgages, period. Once 2nd mortgage holders started demanding 10%, it made obtaining approvals from both mortgages quite challenging. After all, 10% is quite a large number! And most 1st mortgages will only allow a maximum of $1,000 right?
Well luckily for our sellers, SOME 1st mortgage holders have paid attention to the changing trends and have started to change their policies to match. Now, more and more 1st mortgage holders are allowing a payoff of up to 10% to 2nd mortgages to avoid any complications. And for us short sale specialists, this is helpful to successfully navigating a short sale for our sellers! One of the lenders that have started to be more open to this policy change is ASC.
Keep in mind, not all 1st mortgage holders are doing this, and it is on a case-by-case basis, but, they are at least open to it and some will approve 10% to be paid to 2nd mortgage holders.
11/3/09
Senate Clears Homebuyer Tax Credit Extension to Pass This Week
After two weeks of delay, the Senate, last night, cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers... making it virtually certain that the legislation will reach President Obama for his signature this week.
The homebuyer tax credit, due to expire in 28 days, would be extended through April 30 of next year. First-time buyers who are in process of making a purchased would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.
For the first time, the legislation cleared last night makes move-up buyers as well as first-time buyers would be eligible for a credit. The $8,000 maximum first-timer credit will continue and will now available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.
A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years... it is virtually certain that the President will sign the legislative package, which contains an expansion of unemployment benefits as well as the tax changes.
The homebuyer tax credit, due to expire in 28 days, would be extended through April 30 of next year. First-time buyers who are in process of making a purchased would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.
For the first time, the legislation cleared last night makes move-up buyers as well as first-time buyers would be eligible for a credit. The $8,000 maximum first-timer credit will continue and will now available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.
A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years... it is virtually certain that the President will sign the legislative package, which contains an expansion of unemployment benefits as well as the tax changes.
10/26/09
21% still to go?
I have recently read several news stories regarding predicted home values. The reports indicate that the 2 worst performing housing markets in the country in the next 12 months will be Miami with aprox a 30% drop in "median" value, then Orlando...but not far behind, and of little comfort that we're not number 1, is the report for West Palm Beach area home prices that predicts values to dip another 21.7 percent from a median price of $229,000 to $179,307. The report used the Case-Shiller index of home prices along with foreclosure data to formulate the prediction.
However, I always advise my readers and clients to keep in mind that the "median" can be easily skewed and is not an accurate predictive statistic for individual home values. Along those same lines, the property value sites like Zillow can be wildly innacurate. As it has always been, the undisputed most accurate way to determine a homes value at any point in time is by comparable sales and comparable offerings.
As is especially true in this market, buyers ultmately determine a homes value and they do this by "comparison shopping", as you most likely did when you purchased the home you now own.
However, I always advise my readers and clients to keep in mind that the "median" can be easily skewed and is not an accurate predictive statistic for individual home values. Along those same lines, the property value sites like Zillow can be wildly innacurate. As it has always been, the undisputed most accurate way to determine a homes value at any point in time is by comparable sales and comparable offerings.
As is especially true in this market, buyers ultmately determine a homes value and they do this by "comparison shopping", as you most likely did when you purchased the home you now own.
10/23/09
Lakeview Estates market activity recap
Below you'll see the recent market activity for your community
A search of the Palm Beach County courthouse records reveals that there are currently 5 homes that have had a "Lis Pendens" (default/foreclosure notice) filed. None of the 5 are currently on the market.
- There are currently 6 homes on the market
- 1 of the 6 is a short sale
- 1 of the 6 is a bank-owned property
- The remaining 4 are regular sales at this point
- In the previous 90 days, there has been only 1 closed sale reported
- There are currently no homes under contract
A search of the Palm Beach County courthouse records reveals that there are currently 5 homes that have had a "Lis Pendens" (default/foreclosure notice) filed. None of the 5 are currently on the market.
Price reduction
The sellers are the original owners who purchased the home in October, 1999 for $167,400.
10/20/09
New on the market...Antigua
10/16/09
10/14/09
Aspen, price reduction...
The sellers purchased the home in March of '99 for $167,400.
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Lakeview Estates, Lake Worth Florida...foreclosure tracker
As of 4/1/10 there are 7 Lakeview Estates homes in some stage of foreclosure.
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