Personal Photos: Remove or Keep When Listing a Home For Sale?
http://ow.ly/9ldmP
Wednesday, February 29, 2012
Tuesday, February 28, 2012
Friday, February 24, 2012
Thursday, February 23, 2012
Deadline Extended for Foreclosure Reviews
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 23, 2012
Home owners who’ve undergone a foreclosure and want a review of their case now have a longer time to submit their request. The Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve announced the deadline has been extended to July 31, which provides an extra three more months to spread the word about the review program.
Home owners who faced foreclosure in 2009 and 2010 may be eligible to request a review from their lender of their case through the Independent Foreclosure Review to see if any errors were made in their paperwork and if they were wrongly foreclosed upon. If errors are found, the home owner may receive compensation or another agreed upon settlement.
Announced in April 2011, government agencies mandated that the country’s 14 largest mortgage servicers hire independent consultants to conduct reviews of foreclosure activity in 2009 and 2010 and to ensure that no errors were made in the processing of the foreclosure.
You can view a list here of the lenders involved in the Independent Foreclosure Reviews.
Source: “Deadline to Request Mortgage Review Extended to July 31,” RISMedia (Feb. 22, 2012) http://ow.ly/9fZC9
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 23, 2012
Home owners who’ve undergone a foreclosure and want a review of their case now have a longer time to submit their request. The Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve announced the deadline has been extended to July 31, which provides an extra three more months to spread the word about the review program.
Home owners who faced foreclosure in 2009 and 2010 may be eligible to request a review from their lender of their case through the Independent Foreclosure Review to see if any errors were made in their paperwork and if they were wrongly foreclosed upon. If errors are found, the home owner may receive compensation or another agreed upon settlement.
Announced in April 2011, government agencies mandated that the country’s 14 largest mortgage servicers hire independent consultants to conduct reviews of foreclosure activity in 2009 and 2010 and to ensure that no errors were made in the processing of the foreclosure.
You can view a list here of the lenders involved in the Independent Foreclosure Reviews.
Source: “Deadline to Request Mortgage Review Extended to July 31,” RISMedia (Feb. 22, 2012) http://ow.ly/9fZC9
Former Home Owners Wait for Second Chance
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 23, 2012
More than 4 million homes have been lost to foreclosure in the last six years, and many of those former home owners are now starting to ask: When can we buy again?
Many banks have guidelines that prevent them from issuing loans to people with a foreclosure or short sale in their credit history in some cases for as much as seven years. That also doesn’t factor in the damage foreclosures and short sales can do to a person’s credit score, and the work former home owners' will need to do to repair it so they’ll have a better chance at qualifying for financing again in the future.
Still, some former home owners, particularly those who foreclosed or did a short sale due to extenuating circumstances like a job loss or illness, are finding the wait may not be as long as they were once told.
"They're probably going to pay a little higher interest rate, but with rates so low, a higher interest rate of 4 percent is not a big deal," Rosa Herwick, a broker and owner of Century 21 JR Realty in Henderson, Nev., told the Associated Press.
The wait-time varies among lenders and government entities. For example, the Federal Housing Administration says former home owners with a foreclosure must wait three years before they can qualify, while Fannie Mae and Freddie Mac require a seven-year wait following a foreclosure.
As for short sales, sometimes these waits can be waived or drastically cut, depending on the borrower’s situation. FHA requires a three-year wait following a short sale, but it may waive that wait if the short sale was due to a job loss.
Also, for borrowers who can come up with a higher down payment on their next home purchase, they may also not have as long to wait. For example, Fannie Mae will reduce the wait from seven years to two years for borrowers who come with a down payment of 20 percent or more.
Source: “Lost Home to Foreclosure but Ready to Buy Again? Prepare to Wait in Lender ‘Penalty Box,’” Associated Press (Feb. 22, 2012) http://ow.ly/9fZ4S
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 23, 2012
More than 4 million homes have been lost to foreclosure in the last six years, and many of those former home owners are now starting to ask: When can we buy again?
Many banks have guidelines that prevent them from issuing loans to people with a foreclosure or short sale in their credit history in some cases for as much as seven years. That also doesn’t factor in the damage foreclosures and short sales can do to a person’s credit score, and the work former home owners' will need to do to repair it so they’ll have a better chance at qualifying for financing again in the future.
Still, some former home owners, particularly those who foreclosed or did a short sale due to extenuating circumstances like a job loss or illness, are finding the wait may not be as long as they were once told.
"They're probably going to pay a little higher interest rate, but with rates so low, a higher interest rate of 4 percent is not a big deal," Rosa Herwick, a broker and owner of Century 21 JR Realty in Henderson, Nev., told the Associated Press.
The wait-time varies among lenders and government entities. For example, the Federal Housing Administration says former home owners with a foreclosure must wait three years before they can qualify, while Fannie Mae and Freddie Mac require a seven-year wait following a foreclosure.
As for short sales, sometimes these waits can be waived or drastically cut, depending on the borrower’s situation. FHA requires a three-year wait following a short sale, but it may waive that wait if the short sale was due to a job loss.
Also, for borrowers who can come up with a higher down payment on their next home purchase, they may also not have as long to wait. For example, Fannie Mae will reduce the wait from seven years to two years for borrowers who come with a down payment of 20 percent or more.
Source: “Lost Home to Foreclosure but Ready to Buy Again? Prepare to Wait in Lender ‘Penalty Box,’” Associated Press (Feb. 22, 2012) http://ow.ly/9fZ4S
Tuesday, February 21, 2012
Sunday, February 19, 2012
Saturday, February 18, 2012
Friday, February 17, 2012
Thursday, February 16, 2012
Citigroup Agrees to Pay $158M for Misleading Mortgages
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 16, 2012
In another setback for the bank, Citigroup will have to pay $158.3 million over claims that it had misled the government into insuring risky mortgage loans over a six-year time span, resulting in millions of dollars in government losses.
The announcement comes on the heels of a $25 billion settlement last week that will require major banks — including Citigroup — to settle allegations of foreclosure abuses. Citigroup’s share of the bill will be about $2.2 billion from that settlement alone.
But the latest $158 million tab from the Justice Department stems from a separate case, in which the government accused Citi of providing misleading information about the quality of some 30,000 mortgages to a federal insurance program operated by the U.S. Department of Housing and Urban Development. More than a third of those mortgages wound up in default, resulting in major losses to the government.
Citi has accepted responsibility for failing to comply with government requirements regarding the insurance of the mortgages.
CitiMortgage has faced a high default of its loans. Since 2004, more than 30 percent of loans originated or underwritten by CitiMortgage have ended up in default, the Associated Press reports. In 2006 and 2007, the default rate even swelled to more than 47 percent.
Source: “Citigroup to Pay $158 Million in Mortgage Fraud Settlement,” Associated Press (Feb. 15, 2012) and "Citi Admits Mortgage Fraud in $158-Million Settlement,” Los Angeles Times (Feb. 15, 2012)
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 16, 2012
In another setback for the bank, Citigroup will have to pay $158.3 million over claims that it had misled the government into insuring risky mortgage loans over a six-year time span, resulting in millions of dollars in government losses.
The announcement comes on the heels of a $25 billion settlement last week that will require major banks — including Citigroup — to settle allegations of foreclosure abuses. Citigroup’s share of the bill will be about $2.2 billion from that settlement alone.
But the latest $158 million tab from the Justice Department stems from a separate case, in which the government accused Citi of providing misleading information about the quality of some 30,000 mortgages to a federal insurance program operated by the U.S. Department of Housing and Urban Development. More than a third of those mortgages wound up in default, resulting in major losses to the government.
Citi has accepted responsibility for failing to comply with government requirements regarding the insurance of the mortgages.
CitiMortgage has faced a high default of its loans. Since 2004, more than 30 percent of loans originated or underwritten by CitiMortgage have ended up in default, the Associated Press reports. In 2006 and 2007, the default rate even swelled to more than 47 percent.
Source: “Citigroup to Pay $158 Million in Mortgage Fraud Settlement,” Associated Press (Feb. 15, 2012) and "Citi Admits Mortgage Fraud in $158-Million Settlement,” Los Angeles Times (Feb. 15, 2012)
Investors Get Ready for FHFA's Foreclosure Bulk Sales
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 16, 2012
The Federal Housing Finance Agency announced it will soon be piloting a foreclosure-to-rental program, in which it’ll offer qualified investors the chance to buy a pool of foreclosed homes all at once as long as long as they agree to rent the properties for a specified period.
The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, says Fannie will be debuting the program, with pools of its properties available in some of the hardest hit areas by the foreclosure crisis. Freddie Mac and FHA loans may be considered later.
The program is aimed at preventing further price depreciations in communities where foreclosures have soared in recent years.
“This is an important step toward increasing private investment in foreclosed properties to maximize value and stabilize communities,” Edward J. DeMarco, FHFA acting director, said in a statement.
Although FHFA has declined to comment yet on the precise size of the pool of foreclosed properties that will be offered, officials have indicated that the pilot program will be small compared to retail REO transactions.
At the end of September, Fannie and Freddie owned about 180,000 homes. “Even at 1,000 homes apiece, it would take more than 200 mega-investors to work their way through the current backlog,” an article at AOL Real Estate notes.
Source: “Foreclosure Fire Sale: Will Bulk ‘REO to Rental’ Program Fly?” AOL Real Estate (Feb. 15, 2012) and Federal Housing Finance Agency
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 16, 2012
The Federal Housing Finance Agency announced it will soon be piloting a foreclosure-to-rental program, in which it’ll offer qualified investors the chance to buy a pool of foreclosed homes all at once as long as long as they agree to rent the properties for a specified period.
The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, says Fannie will be debuting the program, with pools of its properties available in some of the hardest hit areas by the foreclosure crisis. Freddie Mac and FHA loans may be considered later.
The program is aimed at preventing further price depreciations in communities where foreclosures have soared in recent years.
“This is an important step toward increasing private investment in foreclosed properties to maximize value and stabilize communities,” Edward J. DeMarco, FHFA acting director, said in a statement.
Although FHFA has declined to comment yet on the precise size of the pool of foreclosed properties that will be offered, officials have indicated that the pilot program will be small compared to retail REO transactions.
At the end of September, Fannie and Freddie owned about 180,000 homes. “Even at 1,000 homes apiece, it would take more than 200 mega-investors to work their way through the current backlog,” an article at AOL Real Estate notes.
Source: “Foreclosure Fire Sale: Will Bulk ‘REO to Rental’ Program Fly?” AOL Real Estate (Feb. 15, 2012) and Federal Housing Finance Agency
Foreclosures Pick Up Pace, Banks Work Through Glut
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 16, 2012
Foreclosures increased again in January as banks continued to work through a large backlogs of defaulting loans in their books, RealtyTrac reports. The number of foreclosure filings — including default notices, scheduled auctions, and bank repossessions — increased 3 percent from December to January.
However, the numbers were significantly down compared to one year earlier, RealtyTrac reports.
Last month, one in every 624 households received a foreclosure filing — a drop of 19 percent compared to January 2011.
Banks had slowed their pace of processing foreclosures last year following a robo-signing scandal, in which banks were accused of approving foreclosure documents without proper reviews. Banks have changed some of their methods in processing foreclosures. Also, the $25 billion foreclosure settlement, announced last week, among the nation’s five largest banks and state attorneys general is expected to lead to a pick up in the pace of foreclosures.
The “frozen up foreclosure process is beginning to thaw,” Brandon Moore, CEO of RealtyTrac, said in a statement. For example, Florida had a 14 percent increase in foreclosure filings in January compared to a year earlier.
Many housing experts view an increase in foreclosures as an important step for the housing market to recover in clearing the glut of foreclosed homes on the market. Foreclosures have hampered home prices in many markets.
Source: “Foreclosures Climbed in January,” CNNMoney (Feb. 16, 2012) and RealtyTrac
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 16, 2012
Foreclosures increased again in January as banks continued to work through a large backlogs of defaulting loans in their books, RealtyTrac reports. The number of foreclosure filings — including default notices, scheduled auctions, and bank repossessions — increased 3 percent from December to January.
However, the numbers were significantly down compared to one year earlier, RealtyTrac reports.
Last month, one in every 624 households received a foreclosure filing — a drop of 19 percent compared to January 2011.
Banks had slowed their pace of processing foreclosures last year following a robo-signing scandal, in which banks were accused of approving foreclosure documents without proper reviews. Banks have changed some of their methods in processing foreclosures. Also, the $25 billion foreclosure settlement, announced last week, among the nation’s five largest banks and state attorneys general is expected to lead to a pick up in the pace of foreclosures.
The “frozen up foreclosure process is beginning to thaw,” Brandon Moore, CEO of RealtyTrac, said in a statement. For example, Florida had a 14 percent increase in foreclosure filings in January compared to a year earlier.
Many housing experts view an increase in foreclosures as an important step for the housing market to recover in clearing the glut of foreclosed homes on the market. Foreclosures have hampered home prices in many markets.
Source: “Foreclosures Climbed in January,” CNNMoney (Feb. 16, 2012) and RealtyTrac
Wednesday, February 15, 2012
Whitney Houston’s New Jersey Mansion for Sale
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 15, 2012
The late singer’s New Jersey mansion, where she once lived with ex Bobby Brown, is listed for sale at a reduced price of $1.75 million.
The five-bedroom, 12,561-square-foot home has been listed for sale since 2009, but has lingered on the market. Originally, the price for the home was listed at $2.5 million.
“With the recent passing of Whitney Houston in Beverly Hills… it is with a heavy heart that we remind you of this great mansion,” says the listing on the Car Property Web site, which is listing the property. “Now is the time for someone to step up and buy this great house.”
The home is not listed on the MLS.
The home was used during the filming of a 2005 reality show that Houston and Brown appeared in.
The home holds many memories from Houston’s life, according to the listing copy, which takes an unusual step of mentioning some of the good and the bad from the singer's life. The listing reads that the home holds memories “from the storied soaring success of the young Whitney Houston, to her marriage ceremony with Bobby Brown, this house and four-car garage Car Property, hosted some of the music industries most infamous moments.” The listing copy also continues that “this house was also the scene of the activity that brought down this incredible musical diva over a 15-year cycle."
Source: “Whitney Houston’s New Jersey Mansion for Sale at $1.75 Million,” HousingWire (Feb. 14, 2012)
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 15, 2012
The late singer’s New Jersey mansion, where she once lived with ex Bobby Brown, is listed for sale at a reduced price of $1.75 million.
The five-bedroom, 12,561-square-foot home has been listed for sale since 2009, but has lingered on the market. Originally, the price for the home was listed at $2.5 million.
“With the recent passing of Whitney Houston in Beverly Hills… it is with a heavy heart that we remind you of this great mansion,” says the listing on the Car Property Web site, which is listing the property. “Now is the time for someone to step up and buy this great house.”
The home is not listed on the MLS.
The home was used during the filming of a 2005 reality show that Houston and Brown appeared in.
The home holds many memories from Houston’s life, according to the listing copy, which takes an unusual step of mentioning some of the good and the bad from the singer's life. The listing reads that the home holds memories “from the storied soaring success of the young Whitney Houston, to her marriage ceremony with Bobby Brown, this house and four-car garage Car Property, hosted some of the music industries most infamous moments.” The listing copy also continues that “this house was also the scene of the activity that brought down this incredible musical diva over a 15-year cycle."
Source: “Whitney Houston’s New Jersey Mansion for Sale at $1.75 Million,” HousingWire (Feb. 14, 2012)
More State Codes Call for Greater Home Energy Efficiency
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 15, 2012
More builders are raising the bar when it comes to greater energy efficiency in homes. The new-home industry is using it as a lure to attract buyers, but they’re also, in some cases, being forced to adopt more stringent state energy code standards for new residences.
While greater energy efficiency in new homes can serve as a selling point to potential buyers, some builders are also growing concerned that the tougher energy codes being adopted by a growing number of states are coming at a high price tag at a time when the industry is still struggling.
"There's definitely been a lot of movement by states to adopt more energy-efficient codes," Max Neubauer of the American Council for an Energy-Efficient Economy, told USA Today.
While energy building codes are usually updated every three years, the last two updates have called for greater leaps in increasing energy efficiency.
Paul Karrer of the Online Code Environment and Advocacy Network estimates that moving from the 2006 energy code to the more stringent 2009 energy code alone led to about $840, on average, in extra costs to a new home. On the other hand, Karrer says it has the potential to cut home owners’ utility bills by $243 each year.
Last month, Maryland became the first state in the country to require that new homes must meet the 2012 International Energy Conservation Code. The code calls for about 30 percent greater efficiency than homes that were built five years ago.
Also offering up new standards, the International Green Construction Code will debut next month. The code will serve as a voluntary guide for commercial and public buildings aimed at curbing energy and water use as well as improving indoor air quality. Several states are already planning to adopt it.
Source: “More New Homes Conserve Energy,” USA Today (Feb. 15, 2012)
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 15, 2012
More builders are raising the bar when it comes to greater energy efficiency in homes. The new-home industry is using it as a lure to attract buyers, but they’re also, in some cases, being forced to adopt more stringent state energy code standards for new residences.
While greater energy efficiency in new homes can serve as a selling point to potential buyers, some builders are also growing concerned that the tougher energy codes being adopted by a growing number of states are coming at a high price tag at a time when the industry is still struggling.
"There's definitely been a lot of movement by states to adopt more energy-efficient codes," Max Neubauer of the American Council for an Energy-Efficient Economy, told USA Today.
While energy building codes are usually updated every three years, the last two updates have called for greater leaps in increasing energy efficiency.
Paul Karrer of the Online Code Environment and Advocacy Network estimates that moving from the 2006 energy code to the more stringent 2009 energy code alone led to about $840, on average, in extra costs to a new home. On the other hand, Karrer says it has the potential to cut home owners’ utility bills by $243 each year.
Last month, Maryland became the first state in the country to require that new homes must meet the 2012 International Energy Conservation Code. The code calls for about 30 percent greater efficiency than homes that were built five years ago.
Also offering up new standards, the International Green Construction Code will debut next month. The code will serve as a voluntary guide for commercial and public buildings aimed at curbing energy and water use as well as improving indoor air quality. Several states are already planning to adopt it.
Source: “More New Homes Conserve Energy,” USA Today (Feb. 15, 2012)
3 Ways to Spice Up an Open House
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 15, 2012
Do you want to increase buyer traffic at your next open house? Instead of just a flyer or e-mail blast announcing the event, try to give buyers more reason to come out and tour the home. A recent article at RISMedia offers some of the following ideas:
Host a speaker: A guest speaker, such as a general contractor or home stager, may draw more of a crowd. Your potential buyers may also be looking to sell their own homes, so a stager can offer tips to spruce up a home for sale.
Offer a gift: Hold a raffle, such as by raffling off a gift certificate. Plus, with a raffle, buyers will have to share their contact information with you, which you can then use to follow up. If there’s ever a price change on the house, be sure to notify them.
Involve the community: Invite the neighbors to come to the open house and share their thoughts about the school system or current events in the community, the RISMedia article suggests. You’ll not only be raising awareness about your listing but also helping “to unite the community on important issues,” the article notes. Just be sure to avoid political issues, which can polarize a crowd.
Source: “5 Ways to Increase Open House Traffic,” RISMedia (Feb. 14, 2012)
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 15, 2012
Do you want to increase buyer traffic at your next open house? Instead of just a flyer or e-mail blast announcing the event, try to give buyers more reason to come out and tour the home. A recent article at RISMedia offers some of the following ideas:
Host a speaker: A guest speaker, such as a general contractor or home stager, may draw more of a crowd. Your potential buyers may also be looking to sell their own homes, so a stager can offer tips to spruce up a home for sale.
Offer a gift: Hold a raffle, such as by raffling off a gift certificate. Plus, with a raffle, buyers will have to share their contact information with you, which you can then use to follow up. If there’s ever a price change on the house, be sure to notify them.
Involve the community: Invite the neighbors to come to the open house and share their thoughts about the school system or current events in the community, the RISMedia article suggests. You’ll not only be raising awareness about your listing but also helping “to unite the community on important issues,” the article notes. Just be sure to avoid political issues, which can polarize a crowd.
Source: “5 Ways to Increase Open House Traffic,” RISMedia (Feb. 14, 2012)
Reminder: 3.8% Tax Is Not a Transfer Tax on Real Estate
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 15, 2012
Tax time is nearing and once more rumors are circulating on the Internet and by e-mail that the health care reform law enacted two years ago includes a 3.8 percent transfer tax on real estate starting in 2013. That rumor is not true; NAR has material available to you to explain how that 3.8 percent tax works. It’s a tax on a very narrow band of investment income for high-wealth households (those who earn $250,000 in a joint return or $200,000 as an individual) that could come into play on the sale of a house if the sales gain is more than $500,000 for a married couple or $250,000 for an individual.
Even in the unlikely event the sales gain is more than that amount, the tax would only apply based on other considerations having to do with the household’s income and tax situation. The bottom line is that the tax, which was imposed to help shore up Medicare, will hit only some portion of investment income. Download a free brochure on how the tax works. Video and explanatory article.
Source: National Association of REALTORS®
Read More
The 3.8% Tax Is Not a Real Estate Transfer Tax
Free downloadable brochure on how the tax works.
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 15, 2012
Tax time is nearing and once more rumors are circulating on the Internet and by e-mail that the health care reform law enacted two years ago includes a 3.8 percent transfer tax on real estate starting in 2013. That rumor is not true; NAR has material available to you to explain how that 3.8 percent tax works. It’s a tax on a very narrow band of investment income for high-wealth households (those who earn $250,000 in a joint return or $200,000 as an individual) that could come into play on the sale of a house if the sales gain is more than $500,000 for a married couple or $250,000 for an individual.
Even in the unlikely event the sales gain is more than that amount, the tax would only apply based on other considerations having to do with the household’s income and tax situation. The bottom line is that the tax, which was imposed to help shore up Medicare, will hit only some portion of investment income. Download a free brochure on how the tax works. Video and explanatory article.
Source: National Association of REALTORS®
Read More
The 3.8% Tax Is Not a Real Estate Transfer Tax
Free downloadable brochure on how the tax works.
Tuesday, February 14, 2012
Obama Budget Calls for $6B in Home Energy Retrofits
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
President Obama is calling for $6 billion in his 2013 budget to expand home energy retrofits. Obama unveiled his $3.8 trillion budget for 2013 on Monday.
The home energy retrofit allocation aims to revive Obama’s Home Star program, which passed the House of Representatives in 2010 but never won over final congressional approval. The Home Star program would grant home owners rebates for efficiency upgrades, including sealing ducts, installing efficient water heaters and heating units, windows, doors, and adding insulation. The program was previously dubbed “cash for caulkers.”
Still, some are skeptical the full $6 billion will win final approval. "While Home Star is unlikely to make it through Congress (this year) due to its price tag, we hope something more modest might be able to move forward," Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, told USA Today.
Source: “Obama Seeks Billions for Home Energy Retrofits, EVs,” USA Today (Feb. 13, 2012)
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
President Obama is calling for $6 billion in his 2013 budget to expand home energy retrofits. Obama unveiled his $3.8 trillion budget for 2013 on Monday.
The home energy retrofit allocation aims to revive Obama’s Home Star program, which passed the House of Representatives in 2010 but never won over final congressional approval. The Home Star program would grant home owners rebates for efficiency upgrades, including sealing ducts, installing efficient water heaters and heating units, windows, doors, and adding insulation. The program was previously dubbed “cash for caulkers.”
Still, some are skeptical the full $6 billion will win final approval. "While Home Star is unlikely to make it through Congress (this year) due to its price tag, we hope something more modest might be able to move forward," Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, told USA Today.
Source: “Obama Seeks Billions for Home Energy Retrofits, EVs,” USA Today (Feb. 13, 2012)
Save a Home by Turning It Into a Billboard?
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
Home owners in a Los Angeles suburb are getting their nearly $2,000 monthly mortgage paid for by allowing their home to be turned into a massive billboard, painted in orange and green.
The marketing company Braniacs From Mars launched the initiative: They’ll pay struggling home owners mortgage for up to a year, if home owners agree to rent out billboard space on their home to advertise the firm and its social media icons.
The company made its bold offer to home owners in April 2011, collecting nearly 40,000 applications. The majority of the applications came from hard-hit housing markets like California, Florida, and Nevada.
Romeo Mendoza, Braniacs From Mars founder and CEO, told Reuters that his goal is to choose 1,000 homes across the country and have them all advertising his firm.
"If we roll it out to scale and impact the foreclosure crisis, that would be amazing," Mendoza said.
But zoning laws and other city code laws regarding a home’s appearance may derail Mendoza’s plans. Many areas won’t allow homes to be turned into massive billboards.
Source: “Mortgage Relief: Houses Turned into Billboards,” Reuters (Feb. 13, 2012)
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
Home owners in a Los Angeles suburb are getting their nearly $2,000 monthly mortgage paid for by allowing their home to be turned into a massive billboard, painted in orange and green.
The marketing company Braniacs From Mars launched the initiative: They’ll pay struggling home owners mortgage for up to a year, if home owners agree to rent out billboard space on their home to advertise the firm and its social media icons.
The company made its bold offer to home owners in April 2011, collecting nearly 40,000 applications. The majority of the applications came from hard-hit housing markets like California, Florida, and Nevada.
Romeo Mendoza, Braniacs From Mars founder and CEO, told Reuters that his goal is to choose 1,000 homes across the country and have them all advertising his firm.
"If we roll it out to scale and impact the foreclosure crisis, that would be amazing," Mendoza said.
But zoning laws and other city code laws regarding a home’s appearance may derail Mendoza’s plans. Many areas won’t allow homes to be turned into massive billboards.
Source: “Mortgage Relief: Houses Turned into Billboards,” Reuters (Feb. 13, 2012)
Banks to Pay Military Members for Foreclosure Errors
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
Four major banks have agreed to reimburse any military members found to have been wrongfully foreclosed upon in the last five years.
The Justice Department will oversee the reviews by the banks. The financial institutions involved are JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial.
The banks will be conducting reviews of accounts dating back to Jan. 1, 2006, to find any military members who they may have mistakenly foreclosed upon — which violates the Servicemembers Civil Relief Act.
"From our first conversations, these servicers made it clear that they shared our goal of ensuring that any servicemember harmed as a result of a violation of the SCRA will receive full compensation," U.S. Assistant Attorney General Thomas Perez said in a speech Friday.
Two banks already have agreed to reimburse military members at least $116,785 each. They said they’ll also pay any lost equity in a home.
Some banks have already been compensating service members for wrongful foreclosures after allegations first surfaced nearly a year ago that violations of SCRA were made against military members by several banks. Chase has admitted to 14 wrongful evictions of military families and has agreed to give back the homes or offer compensation if the home was already resold. It has also developed a foreclosure prevention and assistance program for military vets. Bank of America has agreed to pay more than $20 million to 157 military members to correct wrongful evictions made from 2006 to 2009.
Source: “Military Members May Get Six-Figure Payday for Wrongful Foreclosures,” HousingWire (Feb. 13, 2012)
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
Four major banks have agreed to reimburse any military members found to have been wrongfully foreclosed upon in the last five years.
The Justice Department will oversee the reviews by the banks. The financial institutions involved are JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial.
The banks will be conducting reviews of accounts dating back to Jan. 1, 2006, to find any military members who they may have mistakenly foreclosed upon — which violates the Servicemembers Civil Relief Act.
"From our first conversations, these servicers made it clear that they shared our goal of ensuring that any servicemember harmed as a result of a violation of the SCRA will receive full compensation," U.S. Assistant Attorney General Thomas Perez said in a speech Friday.
Two banks already have agreed to reimburse military members at least $116,785 each. They said they’ll also pay any lost equity in a home.
Some banks have already been compensating service members for wrongful foreclosures after allegations first surfaced nearly a year ago that violations of SCRA were made against military members by several banks. Chase has admitted to 14 wrongful evictions of military families and has agreed to give back the homes or offer compensation if the home was already resold. It has also developed a foreclosure prevention and assistance program for military vets. Bank of America has agreed to pay more than $20 million to 157 military members to correct wrongful evictions made from 2006 to 2009.
Source: “Military Members May Get Six-Figure Payday for Wrongful Foreclosures,” HousingWire (Feb. 13, 2012)
Could the Mortgage Deal Lead to a Jump in Foreclosures?
DAILY REAL ESTATE NEWS | MONDAY, FEBRUARY 13, 2012
A $25 billion mortgage settlement announced between major banks and state and government officials is supposed to bring aid to troubled home owners, but it could also bring a wave of new foreclosures, CNNMoney reports.
During the yearlong negotiations, some banks slowed down repossessing homes, and now they may have a backlog of troubled loans on the books — loans that can’t be saved by the deal’s aid on refinancing or mortgage principal reduction.
"The bottom line is that 2012 will see a lot of foreclosures that should have taken place in 2011 and didn't," Rick Sharga, executive vice president for Carrington Holdings, told CNNMoney.
Last year, foreclosure filings dropped 34 percent. This year, Daren Blomquist, vice president of RealtyTrac, estimates that new foreclosure filings will increase to between 2.2 million and 2.5 million compared to last year’s 1.9 million filings in 2011.
The mortgage deal is aimed at helping home owners avoid foreclosure. One million struggling home owners may see their mortgage principal reduced as part of the deal. But the home owners must be able to afford new, lower payments. The banks will have no choice but to foreclose on home owners who stop making payments altogether or cannot afford a new payment structure on their loan.
But the spike in the backlog of foreclosures may not be all bad for the housing market, experts say.
"The market needs to clear out a lot of the distressed inventory before prices start to come back," Sharga said. There are more than 3 million home owners seriously delinquent on their mortgage or in foreclosure currently.
The five banks part of the settlement are Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, and Ally Financial.
Source: “Mortgage Deal Means More Foreclosures,” CNNMoney (Feb. 10, 2012)
DAILY REAL ESTATE NEWS | MONDAY, FEBRUARY 13, 2012
A $25 billion mortgage settlement announced between major banks and state and government officials is supposed to bring aid to troubled home owners, but it could also bring a wave of new foreclosures, CNNMoney reports.
During the yearlong negotiations, some banks slowed down repossessing homes, and now they may have a backlog of troubled loans on the books — loans that can’t be saved by the deal’s aid on refinancing or mortgage principal reduction.
"The bottom line is that 2012 will see a lot of foreclosures that should have taken place in 2011 and didn't," Rick Sharga, executive vice president for Carrington Holdings, told CNNMoney.
Last year, foreclosure filings dropped 34 percent. This year, Daren Blomquist, vice president of RealtyTrac, estimates that new foreclosure filings will increase to between 2.2 million and 2.5 million compared to last year’s 1.9 million filings in 2011.
The mortgage deal is aimed at helping home owners avoid foreclosure. One million struggling home owners may see their mortgage principal reduced as part of the deal. But the home owners must be able to afford new, lower payments. The banks will have no choice but to foreclose on home owners who stop making payments altogether or cannot afford a new payment structure on their loan.
But the spike in the backlog of foreclosures may not be all bad for the housing market, experts say.
"The market needs to clear out a lot of the distressed inventory before prices start to come back," Sharga said. There are more than 3 million home owners seriously delinquent on their mortgage or in foreclosure currently.
The five banks part of the settlement are Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, and Ally Financial.
Source: “Mortgage Deal Means More Foreclosures,” CNNMoney (Feb. 10, 2012)
Home Owners More Attractive Than Renters, Singles Say
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
Home owners trump renters when it comes to finding someone to date, according to a new survey of 1,000 single people. More than a third of women and 18 percent of men would rather date a home owner than a renter, according to the survey, which was conducted on behalf of Trulia.
On the other hand, only 2 percent of women said they’d prefer to date a renter, while 3 percent of men said they’d prefer a renter.
Not only do both sexes prefer home owners, but they also prefer you live alone. Sixty-two percent of the singles surveyed said they prefer to date others who live alone and have no roommates.
And while the number of young adults who have moved back in with their parents has skyrocketed in recent months due to economic hardships, less than 5 percent of the singles surveyed said they would date someone living in their parents' home.
What home qualities are the many singles who prefer ownership to renting most drawn to? The top vote-getters were the master bath, walk-in closets, and gourmet kitchens. They also gave high ranks to hardwood floors, outdoor decks, and home theaters.
Source: “Want a Date? Buy a Home,” CNNMoney (Feb. 14, 2012)
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
Home owners trump renters when it comes to finding someone to date, according to a new survey of 1,000 single people. More than a third of women and 18 percent of men would rather date a home owner than a renter, according to the survey, which was conducted on behalf of Trulia.
On the other hand, only 2 percent of women said they’d prefer to date a renter, while 3 percent of men said they’d prefer a renter.
Not only do both sexes prefer home owners, but they also prefer you live alone. Sixty-two percent of the singles surveyed said they prefer to date others who live alone and have no roommates.
And while the number of young adults who have moved back in with their parents has skyrocketed in recent months due to economic hardships, less than 5 percent of the singles surveyed said they would date someone living in their parents' home.
What home qualities are the many singles who prefer ownership to renting most drawn to? The top vote-getters were the master bath, walk-in closets, and gourmet kitchens. They also gave high ranks to hardwood floors, outdoor decks, and home theaters.
Source: “Want a Date? Buy a Home,” CNNMoney (Feb. 14, 2012)
NAR Cautions Against MID Changes
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
The National Association of REALTORS® has come out against parts of President Obama’s proposed budget for 2012 that would limit itemized deductions, including the mortgage interest deduction, for wealthier households.
“NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy,” 2012 NAR President Moe Veissi said. “We urge the president and Congress to do no harm.”
The president’s proposal calls for reducing the value of itemized deductions for taxpayers earning more than $200,000 in annual income — or $250,000 for joint filings of married couples. It limits the value of the deduction to 28 cents on the dollar for affected taxpayers, rather than 33 cents or 35 cents.
NAR’s concern is limitations on the MID would harm home values, hindering a budding housing recovery.
“While progress has been made in bringing stability to the housing market, the recovery has been slow,” Veissi said. “The nation’s home owners already pay 80 to 90 percent of U.S. federal income taxes. Raising taxes on them, now or in the future, could critically erode home values at all price levels.”
Source: “Obama budget: Tax plans aim at rich,” CNNMoney (Feb. 13, 2012) and NAR
DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 14, 2012
The National Association of REALTORS® has come out against parts of President Obama’s proposed budget for 2012 that would limit itemized deductions, including the mortgage interest deduction, for wealthier households.
“NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy,” 2012 NAR President Moe Veissi said. “We urge the president and Congress to do no harm.”
The president’s proposal calls for reducing the value of itemized deductions for taxpayers earning more than $200,000 in annual income — or $250,000 for joint filings of married couples. It limits the value of the deduction to 28 cents on the dollar for affected taxpayers, rather than 33 cents or 35 cents.
NAR’s concern is limitations on the MID would harm home values, hindering a budding housing recovery.
“While progress has been made in bringing stability to the housing market, the recovery has been slow,” Veissi said. “The nation’s home owners already pay 80 to 90 percent of U.S. federal income taxes. Raising taxes on them, now or in the future, could critically erode home values at all price levels.”
Source: “Obama budget: Tax plans aim at rich,” CNNMoney (Feb. 13, 2012) and NAR
Saturday, February 11, 2012
Fannie Starts Accepting Online Offers for Properties
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 08, 2012
Fannie Mae has announced that it is rolling out a pilot program nationwide that will allow real estate agents to now submit and track their offers online for Fannie Mae-owned properties. Once an offer is submitted, you’ll receive confirmation and be able to track its status through Fannie’s HomePath web site.
Fannie first began piloting the program for online offers in 2010 in San Diego, Orlando, Fla., and Detroit. It now be accepting online offers for properties nationwide.
"Collecting offers online through HomePath.com will provide greater transparency for home buyers and their agents," Jay Ryan, vice president for REO at Fannie Mae, said in a statement. "Our online platform will make it easier to sell properties to owner-occupants, which is a major factor in helping to stabilize communities across the nation."
For more information on how the new program works, visit HomePath.com.
Source: Fannie Mae
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 08, 2012
Fannie Mae has announced that it is rolling out a pilot program nationwide that will allow real estate agents to now submit and track their offers online for Fannie Mae-owned properties. Once an offer is submitted, you’ll receive confirmation and be able to track its status through Fannie’s HomePath web site.
Fannie first began piloting the program for online offers in 2010 in San Diego, Orlando, Fla., and Detroit. It now be accepting online offers for properties nationwide.
"Collecting offers online through HomePath.com will provide greater transparency for home buyers and their agents," Jay Ryan, vice president for REO at Fannie Mae, said in a statement. "Our online platform will make it easier to sell properties to owner-occupants, which is a major factor in helping to stabilize communities across the nation."
For more information on how the new program works, visit HomePath.com.
Source: Fannie Mae
Friday, February 10, 2012
Miami Home
DAILY REAL ESTATE NEWS | FRIDAY, FEBRUARY 10, 2012
When a home falls into foreclosure and is left abandoned, you can never be too sure what you may walk into.
Authorities entering a home in Florida certainly were surprised and unsure what they’d find after the out-of-state home owner alerted them that two people had taken up residence in the home illegally. Authorities called in the bomb squad to take a look. The found: Drugs, a handgun, 10 grenades, and a pig roaming around the house.
A man and woman who were squatting in the home face weapon and drug charges.
The number of squatting cases in abandoned homes has increased in recent years. When homes are left unattended for months, others may decide to move in. Other recent surprising finds in abandoned homes have included a man who was hiding 94 hamsters in an apartment and a home that caught fire from a marijuana growing operation inside, as well as cases of skeletons found in homes or swarms of bees and bats that took refuge.
Source: Source: “Alleged Squatters Found with Drugs, Handgun, Grenades, Pig,” AOL Real Estate News (Feb. 9, 2012) and “Police Find Squatters, Grenades in Homes,” Associated Press (Feb. 7, 2012)
DAILY REAL ESTATE NEWS | FRIDAY, FEBRUARY 10, 2012
When a home falls into foreclosure and is left abandoned, you can never be too sure what you may walk into.
Authorities entering a home in Florida certainly were surprised and unsure what they’d find after the out-of-state home owner alerted them that two people had taken up residence in the home illegally. Authorities called in the bomb squad to take a look. The found: Drugs, a handgun, 10 grenades, and a pig roaming around the house.
A man and woman who were squatting in the home face weapon and drug charges.
The number of squatting cases in abandoned homes has increased in recent years. When homes are left unattended for months, others may decide to move in. Other recent surprising finds in abandoned homes have included a man who was hiding 94 hamsters in an apartment and a home that caught fire from a marijuana growing operation inside, as well as cases of skeletons found in homes or swarms of bees and bats that took refuge.
Source: Source: “Alleged Squatters Found with Drugs, Handgun, Grenades, Pig,” AOL Real Estate News (Feb. 9, 2012) and “Police Find Squatters, Grenades in Homes,” Associated Press (Feb. 7, 2012)
30-Year Mortgage Rates Hold at Record Lows
DAILY REAL ESTATE NEWS | FRIDAY, FEBRUARY 10, 2012
The 30-year fixed-rate mortgage averaged 3.87 percent this week, matching last week’s all-time record low. As for other rates, they ticked up slightly this week, but still hovered around record lows compared to historical standards, Freddie Mac reports in its weekly mortgage market survey.
“A strong January employment report added upward pressure to most mortgage rates this week,” Frank Nothaft, Freddie Mac’s chief economist, said. The unemployment rate dropped to 8.3 percent as the economy gained 243,000 jobs last month, the largest gain since April 2011.
Here’s a closer look at rates for the week ending Feb. 9:
30-year fixed-rate mortgages: averaged 3.87 percent, with an average 0.8 points. A year ago at this time, 30-year rates averaged 5.05 percent.
15-year fixed-rate mortgages: averaged 3.16 percent, with an average 0.7 point, rising slightly from last week’s record low of 3.14 percent. But 15-year rates were still far below what they averaged a year ago at this time — 4.29 percent.
5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.7 point, rising from last week’s 2.80 percent average. Last year at this time, 5-year ARMs averaged 3.92 percent.
1-year ARMs: averaged 2.78 percent, with an average 0.6 point, rising slightly from last week’s 2.76 percent average. A year ago, 1-year ARMs averaged 3.35 percent.
Source: Freddie Mac
DAILY REAL ESTATE NEWS | FRIDAY, FEBRUARY 10, 2012
The 30-year fixed-rate mortgage averaged 3.87 percent this week, matching last week’s all-time record low. As for other rates, they ticked up slightly this week, but still hovered around record lows compared to historical standards, Freddie Mac reports in its weekly mortgage market survey.
“A strong January employment report added upward pressure to most mortgage rates this week,” Frank Nothaft, Freddie Mac’s chief economist, said. The unemployment rate dropped to 8.3 percent as the economy gained 243,000 jobs last month, the largest gain since April 2011.
Here’s a closer look at rates for the week ending Feb. 9:
30-year fixed-rate mortgages: averaged 3.87 percent, with an average 0.8 points. A year ago at this time, 30-year rates averaged 5.05 percent.
15-year fixed-rate mortgages: averaged 3.16 percent, with an average 0.7 point, rising slightly from last week’s record low of 3.14 percent. But 15-year rates were still far below what they averaged a year ago at this time — 4.29 percent.
5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.7 point, rising from last week’s 2.80 percent average. Last year at this time, 5-year ARMs averaged 3.92 percent.
1-year ARMs: averaged 2.78 percent, with an average 0.6 point, rising slightly from last week’s 2.76 percent average. A year ago, 1-year ARMs averaged 3.35 percent.
Source: Freddie Mac
What You Need to Know About the Mortgage Settlement
DAILY REAL ESTATE NEWS | FRIDAY, FEBRUARY 10, 2012
A settlement announced this week among state and federal officials and the nation’s five largest banks is the largest joint state-federal settlement in history against an industry. The settlement, which amounts to somewhere between $25 billion and $26 billion, is aimed at fixing some of the mortgage abuses over the last few years that caused people to lose their home.
So what does the settlement mean for home owners?
Home owners underwater on their house or struggling to make payments may have something to gain from the deal. Home owners who are eligible for payments or principal write-downs on their mortgage from the settlement will be notified by mail within the next nine months.
Those who may be eligible for aid under the settlement include home owners who are currently struggling to make their payments and need a loan modification; borrowers who are current on their payments but owe more on their house than it’s currently worth; or borrowers who may have already lost their home to foreclosure.
In the settlement, banks have agreed to write off a sum of the mortgage principal in select cases where home owners are struggling to make payments. Home owners will then be able to refinance and lower their monthly payments. Underwater borrowers also may receive aid, such as being able to refinance so they also can lower their monthly payments.
Borrowers who have already lost their home to foreclosure may be eligible for payments. About $2,000 per person will be doled out to 750,000 borrowers found eligible.
Payments will be paid over a three-year period.
The banks participating in the settlement are Bank of America, JPMorgan Chase, Wells Fargo, Citi, and Ally/GMAC. Fannie Mae and Freddie Mac-backed loans are not eligible for the benefits.
You can learn more about the settlement at the just-launched “National Mortgage Settlement” Web site.
Source: “What the Mortgage Settlement Means to You,” MSNBC.com (Feb. 9, 2012)
DAILY REAL ESTATE NEWS | FRIDAY, FEBRUARY 10, 2012
A settlement announced this week among state and federal officials and the nation’s five largest banks is the largest joint state-federal settlement in history against an industry. The settlement, which amounts to somewhere between $25 billion and $26 billion, is aimed at fixing some of the mortgage abuses over the last few years that caused people to lose their home.
So what does the settlement mean for home owners?
Home owners underwater on their house or struggling to make payments may have something to gain from the deal. Home owners who are eligible for payments or principal write-downs on their mortgage from the settlement will be notified by mail within the next nine months.
Those who may be eligible for aid under the settlement include home owners who are currently struggling to make their payments and need a loan modification; borrowers who are current on their payments but owe more on their house than it’s currently worth; or borrowers who may have already lost their home to foreclosure.
In the settlement, banks have agreed to write off a sum of the mortgage principal in select cases where home owners are struggling to make payments. Home owners will then be able to refinance and lower their monthly payments. Underwater borrowers also may receive aid, such as being able to refinance so they also can lower their monthly payments.
Borrowers who have already lost their home to foreclosure may be eligible for payments. About $2,000 per person will be doled out to 750,000 borrowers found eligible.
Payments will be paid over a three-year period.
The banks participating in the settlement are Bank of America, JPMorgan Chase, Wells Fargo, Citi, and Ally/GMAC. Fannie Mae and Freddie Mac-backed loans are not eligible for the benefits.
You can learn more about the settlement at the just-launched “National Mortgage Settlement” Web site.
Source: “What the Mortgage Settlement Means to You,” MSNBC.com (Feb. 9, 2012)
Thursday, February 9, 2012
Is the Foreclosure Crisis Finally Fading?
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 09, 2012
Foreclosures decreased by 8.4 percent -- or 130,000 -- in 2011, according to research by CoreLogic.
"The pace at which properties are entering foreclosure is slowing," Mark Fleming, chief economist with CoreLogic, told CNNMoney. "And servicers nationwide stepped up the rate at which they were able to process distressed assets."
So why are foreclosures dropping?
For one, lenders are being more cautious. Homes are entering the foreclosure process more slowly as lenders more carefully scrutinize paperwork before processing a foreclosure, after getting into big trouble for the mishandling of some foreclosures in recent years.
Also, with stricter credit conditions nowadays, lenders are being more choosy in who they give loans too, reserving mortgages for mostly only low-risk borrowers who have less chance of default and foreclosure.
Banks also are doing more loan modifications to prevent foreclosures. And when a home does land in foreclosure, banks are trying to process them faster or trying to encourage a short sale.
Fleming also notes "this is the first time in a year that REO sales [those of bank-owned properties] have outpaced completed foreclosures." Case in point: There were 103 sales of bank-owned homes for every 100 homes in foreclosure inventory in December 2011. That’s compared to November 2010 when there were 94 REO sales for every 100 in the foreclosure process.
Source: “Homes in Foreclosure Decline by 130,000,” CNNMoney (Feb. 8, 2012)
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 09, 2012
Foreclosures decreased by 8.4 percent -- or 130,000 -- in 2011, according to research by CoreLogic.
"The pace at which properties are entering foreclosure is slowing," Mark Fleming, chief economist with CoreLogic, told CNNMoney. "And servicers nationwide stepped up the rate at which they were able to process distressed assets."
So why are foreclosures dropping?
For one, lenders are being more cautious. Homes are entering the foreclosure process more slowly as lenders more carefully scrutinize paperwork before processing a foreclosure, after getting into big trouble for the mishandling of some foreclosures in recent years.
Also, with stricter credit conditions nowadays, lenders are being more choosy in who they give loans too, reserving mortgages for mostly only low-risk borrowers who have less chance of default and foreclosure.
Banks also are doing more loan modifications to prevent foreclosures. And when a home does land in foreclosure, banks are trying to process them faster or trying to encourage a short sale.
Fleming also notes "this is the first time in a year that REO sales [those of bank-owned properties] have outpaced completed foreclosures." Case in point: There were 103 sales of bank-owned homes for every 100 homes in foreclosure inventory in December 2011. That’s compared to November 2010 when there were 94 REO sales for every 100 in the foreclosure process.
Source: “Homes in Foreclosure Decline by 130,000,” CNNMoney (Feb. 8, 2012)
$26 Billion Deal Could Offer Relief to Home Owners
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 09, 2012
After months of tense negotiations, the nation’s five largest banks and state and government officials have agreed to a $26 billion settlement aimed at holding banks accountable for the mishandling of some foreclosures.
The settlement is expected to help 1 million home owners, by having lenders reduce their mortgage debt or refinance into lower mortgage rates to reduce costs of their monthly payments. Also, about 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 are expected to receive checks for about $2,000. The aid from the settlement will be distributed over the next three years, The New York Times reports.
“I wouldn’t say it’s a panacea for the housing industry but it is good for the banks to get this behind them,” Jason Goldberg, an analyst with Barclays, told The New York Times about the settlement.
Details of the settlement still need to be finalized, including how many states will participate. Also, federal officials say the final figure could move upwards to $39 billion. Mortgages owned by Fannie Mae and Freddie Mac will not be part of the deal.
The banks involved in the settlement are Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial.
Source: “States Negotiate $26 Billion Deal for Home Owners,” The New York Times (Feb. 8, 2012)
DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 09, 2012
After months of tense negotiations, the nation’s five largest banks and state and government officials have agreed to a $26 billion settlement aimed at holding banks accountable for the mishandling of some foreclosures.
The settlement is expected to help 1 million home owners, by having lenders reduce their mortgage debt or refinance into lower mortgage rates to reduce costs of their monthly payments. Also, about 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 are expected to receive checks for about $2,000. The aid from the settlement will be distributed over the next three years, The New York Times reports.
“I wouldn’t say it’s a panacea for the housing industry but it is good for the banks to get this behind them,” Jason Goldberg, an analyst with Barclays, told The New York Times about the settlement.
Details of the settlement still need to be finalized, including how many states will participate. Also, federal officials say the final figure could move upwards to $39 billion. Mortgages owned by Fannie Mae and Freddie Mac will not be part of the deal.
The banks involved in the settlement are Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial.
Source: “States Negotiate $26 Billion Deal for Home Owners,” The New York Times (Feb. 8, 2012)
Wednesday, February 8, 2012
Agents Make Unexpected Finds in Foreclosures
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 08, 2012
Watch for skeletons in the closet, literally. More real estate professionals are reporting making horrifying finds in abandoned, foreclosed homes, including the skeletons of the home’s former owners.
A Milwaukee real estate agent recently reported finding the body of the deceased owner on the stairs in an abandoned home. The body of the owner, who authorities say committed suicide, was believed to be in the home for up to four years before the agent recently found it.
In another incident, a real estate agent in Notting Hill, London, was showing potential home buyers a home when they stumbled upon what they thought was a home owner asleep on the couch. But the owner actually was dead.
In Janesville, Wis., an agent and her potential buyers also found the owner deceased in the bedroom of the home. Another real estate agent also said she once found a home owner deceased on the toilet.
Source: “Man’s Death Goes Unnoticed for Years,” HuffingtonPost.com (Feb. 7, 2012) and “Homebuyers’ House Tour Includes Dead Body,” AOL Real Estate
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 08, 2012
Watch for skeletons in the closet, literally. More real estate professionals are reporting making horrifying finds in abandoned, foreclosed homes, including the skeletons of the home’s former owners.
A Milwaukee real estate agent recently reported finding the body of the deceased owner on the stairs in an abandoned home. The body of the owner, who authorities say committed suicide, was believed to be in the home for up to four years before the agent recently found it.
In another incident, a real estate agent in Notting Hill, London, was showing potential home buyers a home when they stumbled upon what they thought was a home owner asleep on the couch. But the owner actually was dead.
In Janesville, Wis., an agent and her potential buyers also found the owner deceased in the bedroom of the home. Another real estate agent also said she once found a home owner deceased on the toilet.
Source: “Man’s Death Goes Unnoticed for Years,” HuffingtonPost.com (Feb. 7, 2012) and “Homebuyers’ House Tour Includes Dead Body,” AOL Real Estate
Major Foreclosure Servicer Charged With Forgery
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 08, 2012
DocX, one of the largest companies in the nation to provide foreclosure services to lenders nationwide, has been indicted by a Missouri grand jury on forgery charges stemming from foreclosures against home owners in the state.
The indictment marks one of the “few criminal actions to follow reports of widespread improprieties against home owners” nationwide, The New York Times reports.
According to the indictment, DocX is accused of making “mass-produced fraudulent signatures on notarized real estate documents” and could face up to 136 counts of forgery in the preparation of documents used to evict defaulting home owners from their homes. DocX could face a fine of up to $10,000 for each forgery conviction.
DocX is a unit of Lender Processing Services of Jacksonville, Fla. The company is accused of executing and notarizing millions of mortgage documents for banks and lenders the last few years. Lender Procession closed in April 2010 after allegations surfaced of alleged forged documents.
Some of its employees were also indicted last week and could face several years in prison if found convicted.
An attorney for DocX says the company will enter a plea of “not guilty” and declined to comment further about the charges.
Source: “Company Faces Forgery Charges in Mo. Foreclosures,” The New York Times (Feb. 6, 2012)
DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 08, 2012
DocX, one of the largest companies in the nation to provide foreclosure services to lenders nationwide, has been indicted by a Missouri grand jury on forgery charges stemming from foreclosures against home owners in the state.
The indictment marks one of the “few criminal actions to follow reports of widespread improprieties against home owners” nationwide, The New York Times reports.
According to the indictment, DocX is accused of making “mass-produced fraudulent signatures on notarized real estate documents” and could face up to 136 counts of forgery in the preparation of documents used to evict defaulting home owners from their homes. DocX could face a fine of up to $10,000 for each forgery conviction.
DocX is a unit of Lender Processing Services of Jacksonville, Fla. The company is accused of executing and notarizing millions of mortgage documents for banks and lenders the last few years. Lender Procession closed in April 2010 after allegations surfaced of alleged forged documents.
Some of its employees were also indicted last week and could face several years in prison if found convicted.
An attorney for DocX says the company will enter a plea of “not guilty” and declined to comment further about the charges.
Source: “Company Faces Forgery Charges in Mo. Foreclosures,” The New York Times (Feb. 6, 2012)
Tuesday, February 7, 2012
More Housing Aid For Military Families
A nonprofit organization is expanding its services to help military home owners who are at risk of foreclosure due to relocation for their jobs or other circumstances.
Hope Now is an alliance of mortgage servicers, investors, nonprofit counselors, and others aimed at helping home owners who are struggling with their mortgage
.
The alliance recently met for a two-day conference in Washington, D.C., to brainstorm how to specifically address housing aid for military families. “The current housing crisis has created a separate set of challenges for home owners in the military,” John Dalton, president of the Housing Policy Council, said during the meeting.
A group of judges, attorneys, state housing agencies, and others created documents with contact information that finance managers and military attorneys can use when assisting military families who are at risk of foreclosure.
Hope Now also plans to sponsor outreach events at four military bases early this year, offering more assistance to military families struggling to make their mortgage payments.
Source: Hope Now
Saturday, February 4, 2012
Facing Forclosure?
What you should do right now.
- Don't panic. You can take steps to save your home, many homes go into foreclosure but do not end up being foreclosed on.
- Find alternatives to foreclosure by talking to the lender, alternatives include loan modification, forebearance and a short sale.
- The foreclosure process takes a long time. You will receive several letters from the lender. If you want to keep your home, you should keep paying the homeowners insurance and property taxes.
- Read the fine print. You should read the letters you get from your lender and your mortgage documents. Call and get answers.
- Pick up the phone. Don't give up if you have missed several payments. Call the number on your mortgage statement and ask for the Loss Mitigation Department. Also call a foreclosure avoidance counselor approved by HUD.
- Explore lender alternatives to foreclosure. There are alternatives that your lender will accept, but you won't know until you call.
- Explore government programs. The government has instituded several programs to help homeowners in distress.
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