Braclays Capital Investment Bank conducted a study that shows foreclosed homes owned by banks, Fannie Mae, Fredie Mac, and other mortgage investors topped a the end of February 2010 at 480,000.
The same study also shows that housing inventory will rise further over the next 20 months and should peak at 536,000 homes in January 2012. It also expects 1.6 million sales of distressed properties in 2010 and 2011. Foreclosures should start declining to 1.5 million in 2010, with about 30 percent of all home sales this year and next year to be foreclosure related. In a normal market only 6 percent of sales are realted to foreclosures.
Assuming unemployment declines to 8 percent within the next two years homeprices should also fall another 3 to 5 percent over the same period of time.
4/29/2010
Foreclosure Stats Are Showing Decline In Most Markets That Were Hard-Hit
Of the 20 metropolitan areas that led the nation in foreclosure rates, 14 of them are showing declining rates. However, this decline is the result of government intervention geared to stall the foreclosures with a variety of programs and not a signal of a recuperating market.
Top 10 Cities leading in foreclosure:
1. Las Vegas-Paradise, Nevada
2. Modesto, California
3. Cape Coral-Fort Myers, Florida
4. Riverside-San Bernardino-Ontario, California
5. Stockton, California
6. Merced, California
7. Phoenix-Mesa-Scottsdale, Arizona
8. Vallejo-Fairfield, California
9. Bakersfield, California
10. Orlando-Kissimmee, Florida
Top 10 Cities leading in foreclosure:
1. Las Vegas-Paradise, Nevada
2. Modesto, California
3. Cape Coral-Fort Myers, Florida
4. Riverside-San Bernardino-Ontario, California
5. Stockton, California
6. Merced, California
7. Phoenix-Mesa-Scottsdale, Arizona
8. Vallejo-Fairfield, California
9. Bakersfield, California
10. Orlando-Kissimmee, Florida
The Federal Government Continues Interest Rates At Near-Zero
On Wednesday the Federal Reserve stated its intention to maintain interest rates near zero for "an extended period".
The Federal Statement said "Economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period".
The Federal Statement said "Economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period".
4/28/2010
Florida Prepares New Program For Stressed Owners
Florida along with Arizona and Michigan have proposed using federal funds to pay down loan balances for struggling borrowers and to subsidize mortgage payments for those who remain out of work.
The plans are in response to a federal plan that allocated $1.5 billion in foreclosure-prevention effort championed by the White House. The Treasury Department is currently reviewing the proposals. They expect to be finalized next month.
The plans are in response to a federal plan that allocated $1.5 billion in foreclosure-prevention effort championed by the White House. The Treasury Department is currently reviewing the proposals. They expect to be finalized next month.
Fannie Extends Distressed Property Deal
Fannie Mae is extending an incentive program through June 30 which gives buyers of distressed properties a 3.5 percent rebate of the final sales price. The money may be used for closing costs or selected appliances.
Fannie's current inventory of homes listed on Homepath.com are more than 62,000. The company reported owning 86,000 properties at the end of 2009.
If you are on the market to purchase look for properties listed as having been placed on Homepath.com and take advantage of the rebate as an extra bonus on the sale price. Send me an email if you need help.
Fannie's current inventory of homes listed on Homepath.com are more than 62,000. The company reported owning 86,000 properties at the end of 2009.
If you are on the market to purchase look for properties listed as having been placed on Homepath.com and take advantage of the rebate as an extra bonus on the sale price. Send me an email if you need help.
4/26/2010
What Items Affect The Cost Of Your Home Insurance
Home insurance can significantly increase the cost of home ownership.
Several factors that affect the cost of insuring your home:
· Location. A home near a fire hydrant or protected by a professional fire department, as opposed to volunteers, is less expensive to insure.
· History of claims. Previous claims push up the cost of insurance. This information is available at: The CLUE report cost is $19.50 and can be purchased at: http://tinyurl.com/26m57uo. The A-Plus report is $9 by mail and $13 by fax and available at: http://tinyurl.com/293slq7.
· Flood or Earthquake insurance? Policies for both of these perils are sold separately at a higher cost.
· How old are the home systems? Electrical and plumbing systems that are less than 10 years old cost less to insure.So planning upgrades should always consider the reduction effect on the home owners insurance costs.
Several factors that affect the cost of insuring your home:
· Location. A home near a fire hydrant or protected by a professional fire department, as opposed to volunteers, is less expensive to insure.
· History of claims. Previous claims push up the cost of insurance. This information is available at: The CLUE report cost is $19.50 and can be purchased at: http://tinyurl.com/26m57uo. The A-Plus report is $9 by mail and $13 by fax and available at: http://tinyurl.com/293slq7.
· Flood or Earthquake insurance? Policies for both of these perils are sold separately at a higher cost.
· How old are the home systems? Electrical and plumbing systems that are less than 10 years old cost less to insure.So planning upgrades should always consider the reduction effect on the home owners insurance costs.
4/13/2010
Update for Second-Homes Buyers Taxes Rules
If you own a second home be aware that according to the IRS taxpayers who are married and filing jointly can't deduct interest on more than a combined total of $1 million of "home acquisition debt" for a primary and a secondary home.
You may also deduct up to a combined total of $100,000 of home-equity debt on your first and second homes.
If you refinance IRS will allow deduction of interest on the original amount of the loan at the time you refinanced, plus $100,000.
You will also be allowed to deduct loan fees or "points" if the money was used to buy or improve your home. You may not deduct them if you refinanced to lower the interest rate.
Make sure you consult your accountant as IRS rules are frequently modified.
You may also deduct up to a combined total of $100,000 of home-equity debt on your first and second homes.
If you refinance IRS will allow deduction of interest on the original amount of the loan at the time you refinanced, plus $100,000.
You will also be allowed to deduct loan fees or "points" if the money was used to buy or improve your home. You may not deduct them if you refinanced to lower the interest rate.
Make sure you consult your accountant as IRS rules are frequently modified.
4/12/2010
How You Can Tell If The Property Has Potential
The best properties to purchase in today's market are properties that need repairs.
So which of these properties have potential?
In answering the question these are the factors to consider:
Location - You are better off to buy a lesser home in a better neighborhood.
Age - property to be less than 50 years old. Unless they are remodeled you will be dealing with old wiring, sagging foundation and plumbing problems.
Livable floor plan - A home with basic deisgn is the most economical. If you have to move walls it will become very expensive.
Light - The property with the most natural light will have the most potential.
Good Storage - Additional storage is very expensive. You save money with a property that already has storage space.
So which of these properties have potential?
In answering the question these are the factors to consider:
Location - You are better off to buy a lesser home in a better neighborhood.
Age - property to be less than 50 years old. Unless they are remodeled you will be dealing with old wiring, sagging foundation and plumbing problems.
Livable floor plan - A home with basic deisgn is the most economical. If you have to move walls it will become very expensive.
Light - The property with the most natural light will have the most potential.
Good Storage - Additional storage is very expensive. You save money with a property that already has storage space.
Beware of Landlord Scams
According to the Associated Press an increasingly common scan involves crooks posing as landlords for property they don't own. They take deposit from people trying to become their tenants and then disappear with the money.
Some states are introducing legislation that would make impersonating a landlord in order to collect money a charge of felony grand theft.
Beware if you are in the market to lease!
Some states are introducing legislation that would make impersonating a landlord in order to collect money a charge of felony grand theft.
Beware if you are in the market to lease!
New Statistics for 2010 Troubled Banks
Year to date 42 federally insured banks have failed compared to 21 that failed in 2009.
Mortgage related closings are 55 year to date. They include credit unions, banks, and non-bank lenders. Last year there were a total of 50.
Mortgage related closings are 55 year to date. They include credit unions, banks, and non-bank lenders. Last year there were a total of 50.
4/11/2010
Loan Officers Compensation Tied to Quality Control
GMAC, a lender who lost more than $7 billion last year on bad loans and who was taken over by the Federal Government, its asking their loan officers to concentrate on the quality of loans they make.
The Loan Officers are being encouraged to approved qualified home owners by having their compensation tied to a goal. The ones who are successful indentifying good prospects will be compensated more. A total of approximately 150 are currently enrolled in this program.
The Loan Officers are being encouraged to approved qualified home owners by having their compensation tied to a goal. The ones who are successful indentifying good prospects will be compensated more. A total of approximately 150 are currently enrolled in this program.
Study Reveals New Statistics On Foreclosures
Homeowners facing foreclosure are showing multiple factors contributing to their situation. The majority experience a job loss together with other circumstances such as divorce or health problems that led to homeowner distress, according to a study for the Florida Realtors.
Other findings:
20% had incomes between $50,000 and $75,000
20% had incomes greated than $100,000
55% had attended college or graduated
92% were married
35% had lived in their homes for 10 years or more
40% had lived in their homes 5 years or less
Other findings:
20% had incomes between $50,000 and $75,000
20% had incomes greated than $100,000
55% had attended college or graduated
92% were married
35% had lived in their homes for 10 years or more
40% had lived in their homes 5 years or less
4/09/2010
If You Refinanced You May Owe IRS
Owners who cashed out refinances, or had part of their mortgage debt forgiven when they sold their homes through short sales, will probably owe the irs a big paychek.
In 2007, Congress passed the Mortgage Forgiveness Debt Act,however, this law does not let everyone off the hook.
The exceptions to the rule are:
Anyone who did a cash-out refinance and spent the money on something not housing related, then got in trouble and lost their home to a foreclosure or short sale , will owe the IRS as if the money from the refinance were earned income.
The IRS will forgive tax liability only on money from home-equity loans that was spent to improve the property.
Anyone who lost a vacation home or investment property to foreclosure or short sale will owe Uncle Sam.
Multi-million dollar homes-lost or sold- are always subject to tax.
It's important to check with your Accountant to find out where you stand.
In 2007, Congress passed the Mortgage Forgiveness Debt Act,however, this law does not let everyone off the hook.
The exceptions to the rule are:
Anyone who did a cash-out refinance and spent the money on something not housing related, then got in trouble and lost their home to a foreclosure or short sale , will owe the IRS as if the money from the refinance were earned income.
The IRS will forgive tax liability only on money from home-equity loans that was spent to improve the property.
Anyone who lost a vacation home or investment property to foreclosure or short sale will owe Uncle Sam.
Multi-million dollar homes-lost or sold- are always subject to tax.
It's important to check with your Accountant to find out where you stand.
This Week's Mortgage Stats
The 30-year fixed mortgage rate is currently 5.08% up from last week's 4.93%.
The rate for 15-year fixed home loans is currently 4.37%.
The rate for 5-1 adjustable-rate mortgages (ARM) is 3.68%
The Total volume of mortgage requests in the past week at Zillow Mortgage Marketplace was down 11% from the prior week.
First American CoreLogic reports that distressed properties accounted for 29% of all US home sales in January.
Real estate-owned sales rose to 22% of home sales from 19% in December and short sales rose to 8% from 7%.
The rate for 15-year fixed home loans is currently 4.37%.
The rate for 5-1 adjustable-rate mortgages (ARM) is 3.68%
The Total volume of mortgage requests in the past week at Zillow Mortgage Marketplace was down 11% from the prior week.
First American CoreLogic reports that distressed properties accounted for 29% of all US home sales in January.
Real estate-owned sales rose to 22% of home sales from 19% in December and short sales rose to 8% from 7%.
4/07/2010
What Are The 10 Most Popular Features In Homes Today
American society is moving towards smaller houses in order to accommodate changing lifestyles and current economic reality.
Today's buyers want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed "green" from the beginning. Large kitchens that are open to the main family living area bring about family togetherness- casual living, entertaining and flexible spaces.
Large kitchens with islands and granite countertops are a must for buyer's moving up.
Energy efficient appliances and high-efficiency insulation and high window efficiency without question ranks at the top.
Home office/study is another area of high desirability brought about by today's economy.
Main-floor master suite is a must feature for empty-nesters.
Outdoor living roomis more popular than an outdoor cooking area.
Master suite soaker tubs Whirlpools are still desirable but oversize showers with seating areas are moving upin popularity.
Stone and brick exteriors are impacting most homes.
Community landscaping are the most popular when they have walking paths and playgrounds.
Two-car garagesIt's popular at all levels. But three car garages in which the third bay is more often than not used for additional storage and not automobiles.
Today's buyers want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed "green" from the beginning. Large kitchens that are open to the main family living area bring about family togetherness- casual living, entertaining and flexible spaces.
Large kitchens with islands and granite countertops are a must for buyer's moving up.
Energy efficient appliances and high-efficiency insulation and high window efficiency without question ranks at the top.
Home office/study is another area of high desirability brought about by today's economy.
Main-floor master suite is a must feature for empty-nesters.
Outdoor living roomis more popular than an outdoor cooking area.
Master suite soaker tubs Whirlpools are still desirable but oversize showers with seating areas are moving upin popularity.
Stone and brick exteriors are impacting most homes.
Community landscaping are the most popular when they have walking paths and playgrounds.
Two-car garagesIt's popular at all levels. But three car garages in which the third bay is more often than not used for additional storage and not automobiles.
4/06/2010
Home Maintenance Creates Value
Proactive maintenance is essential to preserving the value of your home. Without it your home could lose 10% of its value. Regular routine maintenance enhances curb appeal, ensures safety and prevents neglected upkeep from turning into costly major repairs.
Home maintenance affects your property value. Outright damage to your house is just one of the consequences of neglected maintenance. Without regular upkeep, your overall property value is affected. If your selling your house with chipped, fading paint, sagging gutters and worn carpeting you will be looking at an uphill battle in accomplishing your goal. Shaggy apperance will turn off prospective buyers and reduce the selling price.
Prolonging the economic age of your property is money in your pocket. Good maintenance does affect an appraiser's estimate of a property's economic age. The economic age is a key factor in helping appraisers determine depreciation of your home.
The value of maintenance has been established. A study by researchers at the University of Connecticut and Syracuse University suggests that maintenance actually increases the value of a house by about 1% each year. Which means that keeping up with regular maintenance actually makes you money.
How much will your maintenance cost varies. Some years your total expenditures may be a few hundred dollars. Other years may include major replacements, such as a new roof.
There are proactive maintenance strategies available to home owners. Knowing the average costs of your regular maintenance schedule can help you be prepared. You need to set up a reserve account for replacements. This is a cash reserve set aside that is used strictly for home repair and maintenance.
Always play offense, not defense. By making a schedule for regular maintenance you prevent small problems from becoming big issues.
Plan a room per year to redo and make it fun as well as cost effective. Every year you pick a room in your home to fix, and improve. This will keep your home from being dated without breaking the bank.
Keeping track of regular maintenance is very important. Having a notebook of all your maintenance and upgrades, along with receipts, is a powerful tool when it comes to time to sell your home.
Home maintenance affects your property value. Outright damage to your house is just one of the consequences of neglected maintenance. Without regular upkeep, your overall property value is affected. If your selling your house with chipped, fading paint, sagging gutters and worn carpeting you will be looking at an uphill battle in accomplishing your goal. Shaggy apperance will turn off prospective buyers and reduce the selling price.
Prolonging the economic age of your property is money in your pocket. Good maintenance does affect an appraiser's estimate of a property's economic age. The economic age is a key factor in helping appraisers determine depreciation of your home.
The value of maintenance has been established. A study by researchers at the University of Connecticut and Syracuse University suggests that maintenance actually increases the value of a house by about 1% each year. Which means that keeping up with regular maintenance actually makes you money.
How much will your maintenance cost varies. Some years your total expenditures may be a few hundred dollars. Other years may include major replacements, such as a new roof.
There are proactive maintenance strategies available to home owners. Knowing the average costs of your regular maintenance schedule can help you be prepared. You need to set up a reserve account for replacements. This is a cash reserve set aside that is used strictly for home repair and maintenance.
Always play offense, not defense. By making a schedule for regular maintenance you prevent small problems from becoming big issues.
Plan a room per year to redo and make it fun as well as cost effective. Every year you pick a room in your home to fix, and improve. This will keep your home from being dated without breaking the bank.
Keeping track of regular maintenance is very important. Having a notebook of all your maintenance and upgrades, along with receipts, is a powerful tool when it comes to time to sell your home.
4/04/2010
Spring Cleaning Unwanted Items The Green Way
Once you start Spring Cleaning do your part to create a second life for your extra and outgrown stuff and clean the Green Way.
Clothing:
An easy thing to do with clothing in good condition is to donate it to Goodwill. You will get a tax deduction and the resale of the items pays for job training programs.
Shoes:
Consider donating them to SolesForSouls.org. This organization gives your shoes to kids and adults around the world who need them most.
Toys:
When its time to get rid of the ones that no longer get attention, many local charities accept them, as do certain battered women's shelters.
Electronics:
Old cell phones, charges, mp3 players and other electronic devices you don't longer need can be turned in to NextWorth.com or Gazelle.com. These two websites pay you to send in your electronics. Some police departments use old donated cell phones for emergency contact for low income people.If you want to get rid of a computer, a good option is to drop it off at Goodwill.
Cabinetry:
If you are going to remodel the kitchen or bathroom, Habitat for Humanity's restores old cabinets. They sell these and other donated household goods to fund building local Habitat for Humanity homes.
Hazardous Waste:
Household hazardous waste, includes things like paints, bug killers, antifreeze, most batteries, and even used CFL's because they contain mercury. Go to Earch911.com and search by zip code to find locations near you that will recycle or dispose of the proudcts safely.
Cleaning and organizing is a chore, but when you go green you can feel good knowing that you're helping others and protecting the planet.
Clothing:
An easy thing to do with clothing in good condition is to donate it to Goodwill. You will get a tax deduction and the resale of the items pays for job training programs.
Shoes:
Consider donating them to SolesForSouls.org. This organization gives your shoes to kids and adults around the world who need them most.
Toys:
When its time to get rid of the ones that no longer get attention, many local charities accept them, as do certain battered women's shelters.
Electronics:
Old cell phones, charges, mp3 players and other electronic devices you don't longer need can be turned in to NextWorth.com or Gazelle.com. These two websites pay you to send in your electronics. Some police departments use old donated cell phones for emergency contact for low income people.If you want to get rid of a computer, a good option is to drop it off at Goodwill.
Cabinetry:
If you are going to remodel the kitchen or bathroom, Habitat for Humanity's restores old cabinets. They sell these and other donated household goods to fund building local Habitat for Humanity homes.
Hazardous Waste:
Household hazardous waste, includes things like paints, bug killers, antifreeze, most batteries, and even used CFL's because they contain mercury. Go to Earch911.com and search by zip code to find locations near you that will recycle or dispose of the proudcts safely.
Cleaning and organizing is a chore, but when you go green you can feel good knowing that you're helping others and protecting the planet.
Spring Is Arriving Welcome It !
When Spring arrives there is always work to do around the house.It is the best time to clean, organize and update your home.
As Spring Cleaning starts, your projects range from polishing floors and moving furniture to organizing and sorting through your cabinets. So how do you start?
Target the mess:
Survey each room and jot down a list of problem areas of each room.
Diagnose the mess:
Usually there are several reasons why an area is consistently messy. Figure out the reason why it happens.
Fix the mess:
Think about tools that can make those messes disappear.
Make it happen:
Buy and install the tools you need to better organize your home.
As Spring Cleaning starts, your projects range from polishing floors and moving furniture to organizing and sorting through your cabinets. So how do you start?
Target the mess:
Survey each room and jot down a list of problem areas of each room.
Diagnose the mess:
Usually there are several reasons why an area is consistently messy. Figure out the reason why it happens.
Fix the mess:
Think about tools that can make those messes disappear.
Make it happen:
Buy and install the tools you need to better organize your home.
Subscribe to:
Posts (Atom)
