Tampa, Florida
May 2009 Home Price Index
One-Month Change: 0.0%
One-Year Change From May 2008: -20.8%
Peak Month: July 2006
Source: S+P/Case-Shiller Home Price Index
Tuesday, July 28, 2009
Prices Rise for First Time Since 2006!
According to the latest S+P/Case-Shiller data, the 20-city index rose 0.5 percent from April to May, although it is still down 17.1 percent year over year from last May. After 16 consecutive months of record annual declines, beginning in October 2007 and ending in January 2009, the index has now shown four consecutive months of improvement.
Wednesday, June 3, 2009
Pending Home Sales UP For Third Month!
WASHINGTON – June 2, 2009 – Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” says Lawrence Yun, NAR chief economist. “Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
The Pending Home Sales Index in the Northeast shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. In the Midwest the index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. The index in the South slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. In the West, the index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008.
NAR President Charles McMillan says there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans to buy down the interest rate or make a larger downpayment.”
NAR’s Housing Affordability Index (HAI) is in record territory. The index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income. Tracking began in 1970.
A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.
Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability.
“In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” Yun says. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”
The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun says.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” says Lawrence Yun, NAR chief economist. “Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
The Pending Home Sales Index in the Northeast shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. In the Midwest the index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. The index in the South slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. In the West, the index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008.
NAR President Charles McMillan says there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans to buy down the interest rate or make a larger downpayment.”
NAR’s Housing Affordability Index (HAI) is in record territory. The index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income. Tracking began in 1970.
A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.
Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability.
“In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” Yun says. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”
The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun says.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Saturday, May 30, 2009
Details of FHA's $8K Downpayment Advance
WASHINGTON – May 29, 2009 – The U.S. Department of Housing and Urban Development (HUD) released more details today about its program to help first-time homebuyers use a tax credit as part of a downpayment.
HUD announced the program on May 12 at the National Association of Realtors® Housing Summit. In the interim, HUD posted an announcement and then immediately took it down, leading to speculation that the program would be pulled. In response, HUD said the rules had simply not been finalized, and the original announcement had been posted in error.
“We’ve been eager for word from the federal government since the new FHA downpayment assistance plan was announced, and even more so after the program details were first published and then quickly pulled,” says John Sebree, FAR vice president of public policy. “Luckily, that turns out to be a minor setback and there will be a federal downpayment program to complement the $30 million we were successful in securing in the Florida budget.”
The most significant change involves the amount of downpayment required by qualified first-time homebuyers. FHA mortgages require a 3.5 percent downpayment, and the $8,000 tax credit cannot be used to override that requirement. Once the 3.5 percent downpayment requirement has been met, however, the tax credit can be applied to additional costs, including a higher downpayment, paying points to lower the mortgage rate, and/or closing costs. Lenders will treat the tax credit money as a second lien on the home until it’s paid back.
“Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers,” says Sebree. Since lenders will oversee the tax credit loan, they must create internal programs to handle the process.
Lenders have some flexibility on payback requirements for the upfront loan of the tax credit, though HUD also created rules to protect homebuyers from onerous terms. To read the complete overview in Mortgagee Letter 2009-15, go here.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
HUD announced the program on May 12 at the National Association of Realtors® Housing Summit. In the interim, HUD posted an announcement and then immediately took it down, leading to speculation that the program would be pulled. In response, HUD said the rules had simply not been finalized, and the original announcement had been posted in error.
“We’ve been eager for word from the federal government since the new FHA downpayment assistance plan was announced, and even more so after the program details were first published and then quickly pulled,” says John Sebree, FAR vice president of public policy. “Luckily, that turns out to be a minor setback and there will be a federal downpayment program to complement the $30 million we were successful in securing in the Florida budget.”
The most significant change involves the amount of downpayment required by qualified first-time homebuyers. FHA mortgages require a 3.5 percent downpayment, and the $8,000 tax credit cannot be used to override that requirement. Once the 3.5 percent downpayment requirement has been met, however, the tax credit can be applied to additional costs, including a higher downpayment, paying points to lower the mortgage rate, and/or closing costs. Lenders will treat the tax credit money as a second lien on the home until it’s paid back.
“Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers,” says Sebree. Since lenders will oversee the tax credit loan, they must create internal programs to handle the process.
Lenders have some flexibility on payback requirements for the upfront loan of the tax credit, though HUD also created rules to protect homebuyers from onerous terms. To read the complete overview in Mortgagee Letter 2009-15, go here.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Wednesday, May 13, 2009
Two Points!
The $8,000 first-time homebuyer tax credit has received a lot of attention lately, but it has also overshadowed another big reason to buy a home now: record-low interest rates.
In May, 30-year mortgage rates of 5 percent were widely available. That's down from January's already-low 5.8 percent, and two percentage points less than in August 2008.
How important is two points? On a $200,000 home, a buyer could save $257 per month ($3,084 per year) by buying now rather than last August. On a $200,000, 30-year fixed rate mortgage, the monthly payment difference is:
• 7 percent: $1,330 monthly (rates in August 2008)
• 6 percent: $1,199 monthly (rates in December 2008)
• 5 percent: $1,073 monthly (rates in May 2009)
© 2009 FLORIDA ASSOCIATION OF REALTORS®
In May, 30-year mortgage rates of 5 percent were widely available. That's down from January's already-low 5.8 percent, and two percentage points less than in August 2008.
How important is two points? On a $200,000 home, a buyer could save $257 per month ($3,084 per year) by buying now rather than last August. On a $200,000, 30-year fixed rate mortgage, the monthly payment difference is:
• 7 percent: $1,330 monthly (rates in August 2008)
• 6 percent: $1,199 monthly (rates in December 2008)
• 5 percent: $1,073 monthly (rates in May 2009)
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Tuesday, May 12, 2009
Home Sales UP!!!!!
Sales of existing single-family homes in Florida rose 25 percent in first quarter 2009 compared to the same period a year earlier, according to FAR - the third consecutive quarter for higher existing home sales. Statewide existing condo sales in the first quarter rose 19 percent compared to 1Q 2008. Nationally, NAR says sales of all housing types slipped in the first quarter.
Tuesday, May 5, 2009
Lakes Of Cristina New Listing!
This MacKay, former model, Grand Aruba floor plan has well over 2700sf of open living space, 5BR, 4BA, POOL and a THREE car garage! The home boasts custom molding, built-in wall unit that can house a large screened TV, wired for surround sound andsliders leading to the screened pool. The master bedroom has a walk-in closet, dual sinks and a coffee bar with small refrigerator. The Bonus Room (5th BR) comes complete with a full bath! The kitchen has plenty of light oak cabinetry, including 42" uppers, built-in desk, pantry, breakfast bar and more. There is plenty of room to entertain in this home and additional space is available out on the ample lanai. The large laundry area has a built-in ironing board. The home comes with hurrucane shutters that cover the lanai. There are many other features you will have to view to appreciate. The home is located in an excellent school district and is walking distance from Riverview High. The home's location allows an easy commute to Tampa and surrounding areas. This home has everything you want and more! Priced at $289,900!Fast Fixes to Sell a Home!
It's not rocket science: Houses that look fresh and attractive sell faster than beat-up homes. Here are some cheap tricks from Money Magazine for boosting appeal:
• Buy a new mailbox, house numbers, doorbell and knocker: $200
• Green the grass with nitrogen-rich fertilizer: $50 to $200, depending on the lawn's size
• Edge and mulch flowerbeds: $300 to $600, depending on the number of beds
• Replace the bathroom faucet: $300
• Install beadboard over dated bathroom tile: $800 to $1,000
• New paint: $60 to $100 per room if homeowners do it themselves
• Replace switch plates and outlet covers: 50 cents each
• Install stone tile over existing Formica countertops: $500 to $1,000
• Buy a new mailbox, house numbers, doorbell and knocker: $200
• Green the grass with nitrogen-rich fertilizer: $50 to $200, depending on the lawn's size
• Edge and mulch flowerbeds: $300 to $600, depending on the number of beds
• Replace the bathroom faucet: $300
• Install beadboard over dated bathroom tile: $800 to $1,000
• New paint: $60 to $100 per room if homeowners do it themselves
• Replace switch plates and outlet covers: 50 cents each
• Install stone tile over existing Formica countertops: $500 to $1,000
Friday, May 1, 2009
Mortgage Interest Rates week ending 5/1/09
Rates on 30-year mortgages slid to an average of 4.78 percent this week, tying a record low and spurring refinancing activity as the housing market moves closer to bottom, according to Freddie Mac's weekly nationwide survey.
Friday, April 24, 2009
Home Buyer Tax Credit
If first-time homebuyers wait until November to sign a sales contract, it's probably too late to get the $8,000 tax credit. To qualify, buyers must CLOSE before Dec. 1 - a signed contract is not enough. New construction should be started by mid-summer to qualify.
Interest Rates for Week ending April 23, 2009
Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.7 point for the week ending April 23, 2009, down from last week when it averaged 4.82 percent. Last year at this time, the 30-year FRM averaged 6.03 percent.
Thursday, April 23, 2009
Existing Home Sales
Florida's existing home sales rose 30 percent in March, making it the seventh month in a row that sales activity was higher than year-ago levels, according to FAR's latest housing data. Statewide existing condo sales increased 25 percent over the same period; and last month's home and condo sales were higher than February's levels. NAR reported that national existing home sales - all housing types - fell 3 percent compared to February's activity.
Thursday, April 9, 2009
Current Mortgage Rates
Rates on 30-year mortgages inched higher this week to 4.87 percent after two straight weeks of record lows, but still remained at attractive levels for borrowers looking to refinance their home loans.
Tuesday, April 7, 2009
More Good Housing News!
Second straight monthly gain in pending home sales -- up nearly 11 percent in the Northeast, 15 percent in the Midwest, and 4.4 percent in the Southern states. Only the Western region saw a decline at 13.5 percent.
The ability of consumers to buy a house, as measured by the National Association of Realtors' Affordability Index, hit a record new high last month thanks to declining home prices and record-low mortgage rates.
Mortgage rates continued to drop last week -- even from the record lows the week before, according to the Mortgage Bankers Association. Thirty year rates now average just 4.6 percent and 15-year fixed loans average 4.45 percent with about a point.
Consumer spending registered a small increase, up by seven tenths of a percent in the last month. Personal income was up slightly as well.
Both the major indexes that measure consumer confidence, which is a key driver of home buying, were up slightly in the last month. The University of Michigan's survey and the Conference Board's index both registered small gains.
The ability of consumers to buy a house, as measured by the National Association of Realtors' Affordability Index, hit a record new high last month thanks to declining home prices and record-low mortgage rates.
Mortgage rates continued to drop last week -- even from the record lows the week before, according to the Mortgage Bankers Association. Thirty year rates now average just 4.6 percent and 15-year fixed loans average 4.45 percent with about a point.
Consumer spending registered a small increase, up by seven tenths of a percent in the last month. Personal income was up slightly as well.
Both the major indexes that measure consumer confidence, which is a key driver of home buying, were up slightly in the last month. The University of Michigan's survey and the Conference Board's index both registered small gains.
Tuesday, March 24, 2009
Positive Media Blips on U.S. Real Estate Market
Per MSN Money
Home prices rise 1.7%
Home prices in the U.S. rose an overall 1.7% in January from December, according to the Federal Housing Finance Agency -- the first monthly gain in a year. Prices were flat or up in eight of nine regions in January, with the Pacific states the only region showing a decline.Home prices are still down 6.3% from January 2008 and down 9.6% from peaking in April 2006.
Per API
February Existing Home Sales Rise By 5.1%
Sales of existing homes rose from January to February in an unexpected boost for the slumping U.S housing market as buyers took advantage of deep discounts on foreclosures.
Per NY Times
Fed move drives mortgage rates below 5%
Less than a day after the Federal Reserve said it would double its purchases of mortgage debt, fixed rates on conforming 30-year mortgages dropped as much as half a percentage point to well under 5 percent.
There is light at the end of the real estate tunnel.
Home prices rise 1.7%
Home prices in the U.S. rose an overall 1.7% in January from December, according to the Federal Housing Finance Agency -- the first monthly gain in a year. Prices were flat or up in eight of nine regions in January, with the Pacific states the only region showing a decline.Home prices are still down 6.3% from January 2008 and down 9.6% from peaking in April 2006.
Per API
February Existing Home Sales Rise By 5.1%
Sales of existing homes rose from January to February in an unexpected boost for the slumping U.S housing market as buyers took advantage of deep discounts on foreclosures.
Per NY Times
Fed move drives mortgage rates below 5%
Less than a day after the Federal Reserve said it would double its purchases of mortgage debt, fixed rates on conforming 30-year mortgages dropped as much as half a percentage point to well under 5 percent.
There is light at the end of the real estate tunnel.
Monday, March 23, 2009
Florida Home Sales Up for 6th Consecutive Month!
Florida's existing home sales rose 20 percent in February - the sixth consecutive month that sales activity showed increases in the year-to-year comparison, according to FAR. Statewide sales of existing condos increased 15 percent last month compared to the previous year; and February's statewide sales also were higher than January's figures in both the existing home and existing condo markets
Friday, March 20, 2009
Mortgage Help Site Launches!
The U.S. Treasury Department went live with its Making Home Affordable program this week, which aims to help homeowners refinance or modify their mortgages. The campaign includes a Web site at www.makinghomeaffordable.gov as well as a telephone hotline number at (888) 995-4673. The federal government is targeting 9 million homeowners whose loans are held by Fannie Mae or Freddie Mac.
Mortgage Rates!
On the heels of the Federal Reserve's new effort to aid the housing market, rates on 30-year fixed-rate mortgages dropped this week to 4.98 percent, just shy of the record low of 4.96 percent reported in mid-January, according to Freddie Mac's weekly nationwide survey.
Thursday, March 19, 2009
Federal Reserve Surprises Financial Markets!
Article provided by Michael Payette, M&I Bank.
Here we go again, with the talking heads on financial news misinterpreting the impact of the Fed's actions on home loan rates.
Here's the scoop. What the Fed just announced is huge – they have committed to buy another $750B in Mortgage Backed Securities, and $300B in Treasuries.
But what does this mean and why do you care?
Their actions provide a demand for Mortgage Backed Securities, which should help keep a ceiling on home loan rates moving much higher in the foreseeable future. That's good news, for homebuyers who are seeing the bargains out there and understanding that now is the time to act. Good news for those who are ready to refinance too.
But an important distinction – this does not mean rates may move significantly lower. Depending on exactly which coupons the Fed purchases when they go shopping for Mortgage Backed Securities, their actions may keep a lid on rates, but not push them very much lower. And based on what they've been buying since the beginning of this year when they started their purchasing program – that is exactly how it has played out.
Present home loan rates are within inches of historic lows. What is keeping you on the sidelines from acting now to refinance and get some dollars back into your own pocket, where they belong – or moving forward to buy the home of your dreams, while it is still on sale?
Here we go again, with the talking heads on financial news misinterpreting the impact of the Fed's actions on home loan rates.
Here's the scoop. What the Fed just announced is huge – they have committed to buy another $750B in Mortgage Backed Securities, and $300B in Treasuries.
But what does this mean and why do you care?
Their actions provide a demand for Mortgage Backed Securities, which should help keep a ceiling on home loan rates moving much higher in the foreseeable future. That's good news, for homebuyers who are seeing the bargains out there and understanding that now is the time to act. Good news for those who are ready to refinance too.
But an important distinction – this does not mean rates may move significantly lower. Depending on exactly which coupons the Fed purchases when they go shopping for Mortgage Backed Securities, their actions may keep a lid on rates, but not push them very much lower. And based on what they've been buying since the beginning of this year when they started their purchasing program – that is exactly how it has played out.
Present home loan rates are within inches of historic lows. What is keeping you on the sidelines from acting now to refinance and get some dollars back into your own pocket, where they belong – or moving forward to buy the home of your dreams, while it is still on sale?
Tuesday, March 17, 2009
New Home Construction Logs Unexpected Gain!
Washington(AP) – March 17, 2009 – The number of new housing projects that builders broke ground on in February rose sharply, defying economists' forecasts for yet another drop in activity.The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent from January to a seasonally adjusted annual rate of 583,000 units. Economists were expecting construction to drop to a pace of around 450,000 units.Construction activity fell to a pace of 477,000 units in January, according to revised figures. That was a little higher than first reported but still marked a record low.Applications for building permits, considered a reliable sign of future activity, also rose in February by 3 percent to an annual rate of 547,000. Economists were expecting permits to fall to a pace of 500,000 units.Even with February's rare burst of activity, housing construction is down a whopping 47.3 percent from a year ago.
Tuesday, March 10, 2009
A Lot For A Little In Riverview!
New Listing in Moss Landing!
Welcome to 11138 Hartford Fern
Close to 3700sf in this 4BR, 2.5 Bath two story home with additional den and a loft. The kitchen boasts plenty of upgraded cabinetry with 42" uppers and crown molding. The ample master bedroom has a HUGE walk-in closet. The three secondary bedrooms are also large. There are plenty of windows allowing natural light to flow through the home and many of the windows have upgraded moldings. Most of the doors are upgraded, raised 6 panel and the laundry is upstairs convenient to all bedrooms. There is even extra storage under the stairs! The price is right for this home and is convenient to shopping, schools and the commute to Tampa and surrounding areas.
New Ruskin Listing!
Welcome to 1434 Delano Trent!
This well maintained 3/2/2 in Wellington North at Bay Park has upgrades other homes in the area do not have. The kitchen boasts granite counters, extra cabinetry, upgraded tile, center island, undermount stainless sinks, upgraded fixtures pantry and sliders to the screened porch addition. The living area has wood flooring and the open plan allows for flexibility in furniture placement and ease of entertaining. The large master bedroom has a walk-in closet and its own bath. It also has a door leading to the screened lanai. The home has an interior laundry room, plant shelves, linen closets and a coat closet near the front door. The home is close to shopping and the highways allowing for an easy commute to Sarasota, Bradenton, Brandon and other surrounding areas. The home is priced right to move at $110,000!! Come see this lovely home and make it yours!
Monday, March 9, 2009
Homebuyer Tax Credit Forms and Rules In Place
The Treasury Department has moved at record speed to implement one piece of the new American Recovery and Reinvestment Act of 2009 Act aka the stimulus act.
The Department and the Internal Revenue Service which will manage it announced on Wednesday that forms and regulations are already in place for homebuyers who wish to claim the first-time credit enabled under the act.
The credit is available to homebuyers who purchase a home before December 1 of this year. In an effort to make the effects of the credit felt quickly in the economy, homebuyers can claim the credit either on their 2009 tax return or immediately on the 2008 return due in April.
The tax credit represents 10 percent of the purchase price of a home up to a maximum of $8,000 or $4,000 for married taxpayers filing separate returns. The $7,500 credit that was authorized under earlier legislation last year was actually a 15 year loan; the new tax credit does not have to be repaid by the homeowner under ordinary circumstances.
The credit does have to be repaid if the homeowner sells the home in less than 36 months or if the home ceases to be his principal residence during that time.
For the purpose of this credit, a first time homeowner is defined as one who has not owned a home for the 36 months ending on the date of purchase.
The credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000 for married taxpayers filing jointly. Above those income levels the credit is phased out gradually.
Homeowners who purchased a house between April 8 and December 31, 2008 are not eligible for the new credit. They are covered by the earlier legislation and can claim the $7,500 repayable credit.
Treasury Secretary Tim Geithner said in a press release from his department, "The expansion of the first-time home buyer tax break as part of the President's recovery agenda gives money to taxpayers when they need it most, while also targeting an important group of buyers. We view our economic recovery plan, our financial stability plan, and now this homeowner affordability plan as three legs of the same stool - an integrated whole that represents our immediate response to the current crisis."
Forms and instructions for claiming the credit on 2008 tax returns are available at www.irs.gov. The form number is 5405.
The Department and the Internal Revenue Service which will manage it announced on Wednesday that forms and regulations are already in place for homebuyers who wish to claim the first-time credit enabled under the act.
The credit is available to homebuyers who purchase a home before December 1 of this year. In an effort to make the effects of the credit felt quickly in the economy, homebuyers can claim the credit either on their 2009 tax return or immediately on the 2008 return due in April.
The tax credit represents 10 percent of the purchase price of a home up to a maximum of $8,000 or $4,000 for married taxpayers filing separate returns. The $7,500 credit that was authorized under earlier legislation last year was actually a 15 year loan; the new tax credit does not have to be repaid by the homeowner under ordinary circumstances.
The credit does have to be repaid if the homeowner sells the home in less than 36 months or if the home ceases to be his principal residence during that time.
For the purpose of this credit, a first time homeowner is defined as one who has not owned a home for the 36 months ending on the date of purchase.
The credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000 for married taxpayers filing jointly. Above those income levels the credit is phased out gradually.
Homeowners who purchased a house between April 8 and December 31, 2008 are not eligible for the new credit. They are covered by the earlier legislation and can claim the $7,500 repayable credit.
Treasury Secretary Tim Geithner said in a press release from his department, "The expansion of the first-time home buyer tax break as part of the President's recovery agenda gives money to taxpayers when they need it most, while also targeting an important group of buyers. We view our economic recovery plan, our financial stability plan, and now this homeowner affordability plan as three legs of the same stool - an integrated whole that represents our immediate response to the current crisis."
Forms and instructions for claiming the credit on 2008 tax returns are available at www.irs.gov. The form number is 5405.
Friday, March 6, 2009
More on Making Home Affordable
Making Home Affordable
Homeowners were lent a hand this week by the Obama Administration's newest effort to help families remain in their homes. The 'Making Home Affordable' program was created to help as many as 9 million homeowners who want to stay in their homes, but are struggling with their finances.
As with most legislation of this type, some of the details are still pending and subject to further clarification – but I would invite you to call me so we can begin to discuss how they might benefit you.
There are two important elements of this program:
One part of the program will be available to 4 to 5 million homeowners who have a solid payment history on an existing home loan owned by Fannie Mae or Freddie Mac. Many of these homeowners have been unable to refi and take advantage of lower interest rates because their homes have lost value. This plan allows for rate and term refis up to a 105% loan-to-value, which will help many homeowners take advantage of today's lower rates or refinance an adjustable-rate home loan into a more stable product, such as a 30-year fixed rate loan.
To qualify, the home must be your primary residence and have a loan balance not exceeding $729,750. While there are still a few unknowns in the mix, this program will help a large number of homeowners cut their monthly expenses and benefit from the lower home loan rates available today.
The second part of the program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly home loan payments. This program lets home loan servicers modify eligible loans for those who have experienced financial hardship. The plan is designed to help these at-risk borrowers decrease the payment amount on their existing loan.
Help Is Here
The housing and job markets continue to be hard hit by the contraction in the economy. But combined with earlier measures, such as the $8,000 tax credit for first time home buyers, the Making Home Affordable program may actually have some legs to help the housing market and economy overall.
Regardless of which opportunity may be right for you – the best first move is to pick up the phone and let's start talking. Contact Michael Payette at M&I Bank 813-334-8412 or via email at Michael.Payette@micorp.com and let him know you saw this here on the blog!
Wednesday, March 4, 2009
Making Home Affordable Program
The US Treasury today released details on the “Making Home Affordable” program. Dubbed the “Mortgage Rescue”, “Homeowner Affordability and Stability Plan", “Homeowner Bailout” and various other names in the press, the official program name is now the “Making Home Affordable” (MHA) program. Details are available at a new site, FinancialStability.gov. While the site says it is “coming soon” there is already a great deal of information available there. http://www.financialstability.gov/
Wednesday, February 25, 2009
Florida Homes Sales Post Another Gain!
HOME SALES UP.... INVENTORY DOWN!
Florida's existing home sales rose 24 percent in January, making it the fifth month in a row that sales activity increased year-to-year, according to the latest housing data from FAR. Florida Realtors also reported a 13 percent gain in statewide sales of existing condos last month. NAR reported that nationwide sales of existing homes - all housing types - fell 5.3 percent last month; at the same time, inventories fell to a two-year low.
Florida's existing home sales rose 24 percent in January, making it the fifth month in a row that sales activity increased year-to-year, according to the latest housing data from FAR. Florida Realtors also reported a 13 percent gain in statewide sales of existing condos last month. NAR reported that nationwide sales of existing homes - all housing types - fell 5.3 percent last month; at the same time, inventories fell to a two-year low.
Friday, February 20, 2009
Are You Still Waiting For The Government?
Article provided by Michael Payette at M&I Bank.
During the first quarter of 2009, the first 100 days of the new President's term, you are no doubt going to hear a lot of news stories about the economic stimulus plan and the financial rescue package and their possible ramifications to the real estate and mortgage markets.
You're going to see headlines about new incentives for home buyers and hear stories about 4% interest rates. But the truth is that right now, at the time of the writing of this article, the government already has in place one of the largest tax incentives for qualifying home buyers it has ever offered - up to an $8,000 tax credit for first-time buyers, and mortgage rates are within a half a point of being the lowest they've been in our country's history.
The truth is that, while all of this is great news for those looking to buy or refinance a home in 2009, none of it matters if you can't qualify for financing. None of it matters if you sit on the fence and watch the great opportunity of homeownership pass you by.
Make sure your financial house is in order
If the idea of buying or refinancing a home in 2009 has even crossed your mind, give us a call. We'll review your financial situation and see what makes sense for your individual goals. Remember, because of increased delinquencies and today's tougher economy, lenders have tightened standards for both new purchases and refis. And while mortgage financing is certainly available and affordable to everyone who qualifies, you're going to need a solid credit score, you'll need to be able to document your income, and, if you're purchasing a new home without a special government program from the VA or USDA, you're likely going to need a down payment as well – at least 3.5% for an FHA loan. And there's no stimulus bill or bail-out plan that is going to change this. So, if you're looking to purchase a new home in 2009, take the time to locate the following items:
Your W-2s and tax returns for the last two years;
Your last three months of bank statements; and
Pay-stubs for the most recent 30 days.
If you haven't checked your credit in awhile, now is the time to do so. A lot could have changed since the last time you checked it, good or bad, and you don't want any surprises that might alter your plans. We'll gladly review your credit for you and see if there is anything that needs to be addressed, but don't wait. It would be a shame to miss out on a great opportunity simply because you didn't check your credit report.
For homeowners with enough equity to refinance, now may be the time to lock in a low rate. Sure rates could go lower, even to the 4% level you've heard about in the news. But rates could just as easily start to rise again, and home values could drop even lower, making it difficult for your house to appraise. In the financial and credit markets, there are no guarantees, and there's nothing in the stimulus bill or bail-out plan to address mortgage rates. Why lose money waiting around for an opportunity to save a little bit more each month in the future when you can have significant savings every month right now?
Let us review your mortgage and see if you can benefit. The worst thing that could happen is you find out that you already have the best mortgage and interest rate possible.
For more information, please email Michael Payette at M&I Bank, michael.payette@micorp.com or phone him at (813)334-8412. Mention you saw this article on my blog, if you would.
During the first quarter of 2009, the first 100 days of the new President's term, you are no doubt going to hear a lot of news stories about the economic stimulus plan and the financial rescue package and their possible ramifications to the real estate and mortgage markets.
You're going to see headlines about new incentives for home buyers and hear stories about 4% interest rates. But the truth is that right now, at the time of the writing of this article, the government already has in place one of the largest tax incentives for qualifying home buyers it has ever offered - up to an $8,000 tax credit for first-time buyers, and mortgage rates are within a half a point of being the lowest they've been in our country's history.
The truth is that, while all of this is great news for those looking to buy or refinance a home in 2009, none of it matters if you can't qualify for financing. None of it matters if you sit on the fence and watch the great opportunity of homeownership pass you by.
Make sure your financial house is in order
If the idea of buying or refinancing a home in 2009 has even crossed your mind, give us a call. We'll review your financial situation and see what makes sense for your individual goals. Remember, because of increased delinquencies and today's tougher economy, lenders have tightened standards for both new purchases and refis. And while mortgage financing is certainly available and affordable to everyone who qualifies, you're going to need a solid credit score, you'll need to be able to document your income, and, if you're purchasing a new home without a special government program from the VA or USDA, you're likely going to need a down payment as well – at least 3.5% for an FHA loan. And there's no stimulus bill or bail-out plan that is going to change this. So, if you're looking to purchase a new home in 2009, take the time to locate the following items:
Your W-2s and tax returns for the last two years;
Your last three months of bank statements; and
Pay-stubs for the most recent 30 days.
If you haven't checked your credit in awhile, now is the time to do so. A lot could have changed since the last time you checked it, good or bad, and you don't want any surprises that might alter your plans. We'll gladly review your credit for you and see if there is anything that needs to be addressed, but don't wait. It would be a shame to miss out on a great opportunity simply because you didn't check your credit report.
For homeowners with enough equity to refinance, now may be the time to lock in a low rate. Sure rates could go lower, even to the 4% level you've heard about in the news. But rates could just as easily start to rise again, and home values could drop even lower, making it difficult for your house to appraise. In the financial and credit markets, there are no guarantees, and there's nothing in the stimulus bill or bail-out plan to address mortgage rates. Why lose money waiting around for an opportunity to save a little bit more each month in the future when you can have significant savings every month right now?
Let us review your mortgage and see if you can benefit. The worst thing that could happen is you find out that you already have the best mortgage and interest rate possible.
For more information, please email Michael Payette at M&I Bank, michael.payette@micorp.com or phone him at (813)334-8412. Mention you saw this article on my blog, if you would.
Thursday, February 19, 2009
Home Buyer Credit
CREDIT WHERE CREDIT IS DUE
First-time homebuyers have exactly 285 days to buy a home if they want to pocket $8,000 tax-free. It's not long. Every homebuyer has unique circumstances, however, and specific questions. The National Association of Home Builders (NAHB) has launched a consumer Web site with detailed information and an extensive list of frequently-asked questions. The homebuyer resource is found at: www.federalhousingtaxcredit.com
© Copyright 2009 INFORMATION, INC. Bethesda, MD
First-time homebuyers have exactly 285 days to buy a home if they want to pocket $8,000 tax-free. It's not long. Every homebuyer has unique circumstances, however, and specific questions. The National Association of Home Builders (NAHB) has launched a consumer Web site with detailed information and an extensive list of frequently-asked questions. The homebuyer resource is found at: www.federalhousingtaxcredit.com
© Copyright 2009 INFORMATION, INC. Bethesda, MD
Wednesday, February 18, 2009
Monday, February 16, 2009
NAR: Implement Stimulus Package Quickly!
WASHINGTON – Feb. 16, 2009 –
Now that the American Recovery and Reinvestment Act has been sent to President Obama for his signature, the National Association of Realtors® (NAR) looks forward to swift implementation.
“We are pleased that Congress and the administration have taken prompt action to address the current economic crisis,” says NAR President Charles McMillan. “Job creation and tax cuts are going to help families recover and prosper, and these initiatives will help more people keep their homes and help others become homeowners.”
The legislation contains two important housing provisions advocated by NAR. The final stimulus bill increases the first-time homebuyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation. In addition, the credit availability has been extended until Dec. 1, 2009.
“These important provisions will help bring first-time homebuyers to the market and reduce housing inventory,” says McMillan. NAR estimates that the homebuyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.
The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. “These … make mortgages affordable regardless of where you live,” McMillan says. “ This will also help reduce inventory and improve liquidity in the overall mortgage market.”
NAR commended President Obama and Congress for including neighborhood stabilization efforts to help communities purchase and rehabilitate foreclosed and vacant properties. Realtors also praised the provision to help America’s wounded soldiers who need to move or relocate.
In addition to federal bailout measures, NAR’s also advocates better foreclosure mitigation efforts and lower interest rates for homeowners and buyers. NAR expects these components to be addressed in the coming days.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Now that the American Recovery and Reinvestment Act has been sent to President Obama for his signature, the National Association of Realtors® (NAR) looks forward to swift implementation.
“We are pleased that Congress and the administration have taken prompt action to address the current economic crisis,” says NAR President Charles McMillan. “Job creation and tax cuts are going to help families recover and prosper, and these initiatives will help more people keep their homes and help others become homeowners.”
The legislation contains two important housing provisions advocated by NAR. The final stimulus bill increases the first-time homebuyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation. In addition, the credit availability has been extended until Dec. 1, 2009.
“These important provisions will help bring first-time homebuyers to the market and reduce housing inventory,” says McMillan. NAR estimates that the homebuyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.
The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. “These … make mortgages affordable regardless of where you live,” McMillan says. “ This will also help reduce inventory and improve liquidity in the overall mortgage market.”
NAR commended President Obama and Congress for including neighborhood stabilization efforts to help communities purchase and rehabilitate foreclosed and vacant properties. Realtors also praised the provision to help America’s wounded soldiers who need to move or relocate.
In addition to federal bailout measures, NAR’s also advocates better foreclosure mitigation efforts and lower interest rates for homeowners and buyers. NAR expects these components to be addressed in the coming days.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Friday, February 13, 2009
Big Banks Announce Foreclosure Halt!
Big Banks Announce Foreclosure Halt
By ALAN ZIBEL,
AP
WASHINGTON (Feb. 13) — JPMorgan Chase & Co. and Citigroup Inc. are halting home foreclosures while the Obama administration develops its plans to help the U.S. housing market.
Skip over this content
JPMorgan Chief Executive Jamie Dimon said the New York company plans to halt new foreclosures for owner-occupied home loans through March 6. Dimon made the pledge in a letter to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, who released it on Friday.
Citigroup's foreclosure moratorium applies to all "Citi owned first mortgage loans that are the principal residence of the customer as well as all loans Citi services where we have reached an understanding with the investor" until President Barack Obama's administration has finalized the details of the loan modification program or March 12, whichever is earlier, according to a company release. New York-based Citi's action expands on a similar effort that it started in November.
Frank earlier this week called on the mortgage industry to enact such broad foreclosure moratoriums.
The administration is working on a plan to spend $50 billion on foreclosure prevention and establish national standards for modifying home loans.
"We stand ready to work with you to put the appropriate processes in place, including a national modification standard, to reduce the incidence of foreclosure and to encourage long-term, sustainable home mortgages," Dimon wrote.
Government-controlled mortgage finance companies Fannie Mae and Freddie Mac suspended foreclosure sales during the winter holidays and have halted evictions from foreclosed properties until next month. And earlier this week, John Reich, director of the Office of Thrift Supervision, urged the more than 800 thrift institutions nationwide to do the same.
Meanwhile, the administration is considering spending taxpayer dollars to cut monthly payments for homeowners on the verge of foreclosure.
Still, deciding who would qualify would be a challenge, especially as foreclosures continue to soar. More than 274,000 U.S. households received at least one foreclosure-related notice last month, according to RealtyTrac Inc.
The administration also is expected to back a push in Congress — but opposed by the mortgage industry — to let bankruptcy judges alter the terms of primary home loans. Earlier this week, Obama said it "makes no sense" that judges are not allowed to do so. The mortgage industry argues that this prohibition allows lenders to charge lower rates.
Copyright 2009 The Associated Press.
By ALAN ZIBEL,
AP
WASHINGTON (Feb. 13) — JPMorgan Chase & Co. and Citigroup Inc. are halting home foreclosures while the Obama administration develops its plans to help the U.S. housing market.
Skip over this content
JPMorgan Chief Executive Jamie Dimon said the New York company plans to halt new foreclosures for owner-occupied home loans through March 6. Dimon made the pledge in a letter to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, who released it on Friday.
Citigroup's foreclosure moratorium applies to all "Citi owned first mortgage loans that are the principal residence of the customer as well as all loans Citi services where we have reached an understanding with the investor" until President Barack Obama's administration has finalized the details of the loan modification program or March 12, whichever is earlier, according to a company release. New York-based Citi's action expands on a similar effort that it started in November.
Frank earlier this week called on the mortgage industry to enact such broad foreclosure moratoriums.
The administration is working on a plan to spend $50 billion on foreclosure prevention and establish national standards for modifying home loans.
"We stand ready to work with you to put the appropriate processes in place, including a national modification standard, to reduce the incidence of foreclosure and to encourage long-term, sustainable home mortgages," Dimon wrote.
Government-controlled mortgage finance companies Fannie Mae and Freddie Mac suspended foreclosure sales during the winter holidays and have halted evictions from foreclosed properties until next month. And earlier this week, John Reich, director of the Office of Thrift Supervision, urged the more than 800 thrift institutions nationwide to do the same.
Meanwhile, the administration is considering spending taxpayer dollars to cut monthly payments for homeowners on the verge of foreclosure.
Still, deciding who would qualify would be a challenge, especially as foreclosures continue to soar. More than 274,000 U.S. households received at least one foreclosure-related notice last month, according to RealtyTrac Inc.
The administration also is expected to back a push in Congress — but opposed by the mortgage industry — to let bankruptcy judges alter the terms of primary home loans. Earlier this week, Obama said it "makes no sense" that judges are not allowed to do so. The mortgage industry argues that this prohibition allows lenders to charge lower rates.
Copyright 2009 The Associated Press.
Thursday, February 12, 2009
Florida’s existing home, condo sales rise in 4Q 2008
ORLANDO, Fla. – Feb. 12, 2009 –
Sales of existing single-family homes in Florida rose 13 percent in fourth quarter 2008 compared to the same period a year earlier, according to the latest housing statistics from the Florida Association of Realtors® (FAR). A total of 30,163 existing homes sold statewide in 4Q 2008; during the same period the year before, a total of 26,635 existing homes sold statewide. It marks the second consecutive quarter that Florida has reported higher existing home sales; sales activity rose 5 percent in 3Q 2008 compared to the same period the previous year, according to FAR.
Florida Realtors also reported a 3 percent gain in statewide sales of existing condominiums in the fourth quarter compared to the same time the previous year. This marks the first three-month period that has noted increased statewide sales in both the existing home and condo markets compared to year-ago levels.
Twelve of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the fourth quarter compared to the same three-month-period a year earlier, while eight MSAs showed gains in condo sales. A growing number of local markets have reported increased sales activity over the past few months, according to FAR.
The statewide existing-home median sales price was $161,200 in the fourth quarter; a year earlier, it was $216,600 for a decrease of 26 percent. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is a typical market price where half the homes sold for more, half for less.
To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. According to the fourth quarter 2008 survey, respondents’ increasing concerns about the economy have dampened the investment outlook for various types of properties.
However, one positive sign is the recent dramatic increase in refinancing with the availability of 5 percent mortgage rates in mid-December, according to Dr. Wayne Archer, center director. If additional programs are put into place that create 4.5 percent Federal Housing Administration mortgages for people who have difficulty making payments, he said, it will do even more to stabilize the housing industry.
In the year-to-year quarterly comparison for condo sales, 8,374 units sold statewide for the quarter compared to 8,098 in 4Q 2007 for a 3 percent increase. The statewide existing-condo median sales price was $136,400 for the three-month period; in 4Q 2007, it was $190,400 for a decrease of 28 percent.
Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.86 percent in 4Q 2008; one year earlier, it averaged 6.23 percent.
The outlook for housing and the economy remains clouded despite improved affordability conditions, according to NAR’s latest industry forecast. “For a sustainable housing market recovery and, thus a sustainable economic recovery, we need a significant housing stimulus and mortgage availability for qualified borrowers,” said NAR Chief Economist Lawrence Yun.
© 2009 FLORIDA ASSOCIATION OF REALTORS
Sales of existing single-family homes in Florida rose 13 percent in fourth quarter 2008 compared to the same period a year earlier, according to the latest housing statistics from the Florida Association of Realtors® (FAR). A total of 30,163 existing homes sold statewide in 4Q 2008; during the same period the year before, a total of 26,635 existing homes sold statewide. It marks the second consecutive quarter that Florida has reported higher existing home sales; sales activity rose 5 percent in 3Q 2008 compared to the same period the previous year, according to FAR.
Florida Realtors also reported a 3 percent gain in statewide sales of existing condominiums in the fourth quarter compared to the same time the previous year. This marks the first three-month period that has noted increased statewide sales in both the existing home and condo markets compared to year-ago levels.
Twelve of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the fourth quarter compared to the same three-month-period a year earlier, while eight MSAs showed gains in condo sales. A growing number of local markets have reported increased sales activity over the past few months, according to FAR.
The statewide existing-home median sales price was $161,200 in the fourth quarter; a year earlier, it was $216,600 for a decrease of 26 percent. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is a typical market price where half the homes sold for more, half for less.
To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. According to the fourth quarter 2008 survey, respondents’ increasing concerns about the economy have dampened the investment outlook for various types of properties.
However, one positive sign is the recent dramatic increase in refinancing with the availability of 5 percent mortgage rates in mid-December, according to Dr. Wayne Archer, center director. If additional programs are put into place that create 4.5 percent Federal Housing Administration mortgages for people who have difficulty making payments, he said, it will do even more to stabilize the housing industry.
In the year-to-year quarterly comparison for condo sales, 8,374 units sold statewide for the quarter compared to 8,098 in 4Q 2007 for a 3 percent increase. The statewide existing-condo median sales price was $136,400 for the three-month period; in 4Q 2007, it was $190,400 for a decrease of 28 percent.
Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.86 percent in 4Q 2008; one year earlier, it averaged 6.23 percent.
The outlook for housing and the economy remains clouded despite improved affordability conditions, according to NAR’s latest industry forecast. “For a sustainable housing market recovery and, thus a sustainable economic recovery, we need a significant housing stimulus and mortgage availability for qualified borrowers,” said NAR Chief Economist Lawrence Yun.
© 2009 FLORIDA ASSOCIATION OF REALTORS
Wednesday, February 11, 2009
FICO '08 System For Creditworthiness
A new system for determining your credit-worthiness, FICO '08, rolls out this Thursday, and there's nothing you can to do stop it.
1. Spouses and children can improve their credit score by being an authorized user on a credit card account, but that's it. No more piggybacking off strangers.
2. Debts less than $100 that go to collections will matter less.
3. They will look at the total picture more. A single repossession, for instance, won't matter as much if everything else looks good.
4. Having less available credit will drag down your score more.
5. Diversity matters more. A mix of healthy auto, personal and student loans would bring up a score.
6. Closing accounts will bring down the score.
1. Spouses and children can improve their credit score by being an authorized user on a credit card account, but that's it. No more piggybacking off strangers.
2. Debts less than $100 that go to collections will matter less.
3. They will look at the total picture more. A single repossession, for instance, won't matter as much if everything else looks good.
4. Having less available credit will drag down your score more.
5. Diversity matters more. A mix of healthy auto, personal and student loans would bring up a score.
6. Closing accounts will bring down the score.
Property Taxes Down Last Two Years!
TALLAHASSEE, Fla. (AP) – Feb. 11, 2009 –
A pair of tax-relief measures passed in the last two years have helped reduce property taxes for Floridians after three decades of steady increases, according to reports presented Tuesday in the state Senate.
Senate and Department of Revenue staffers told the Senate Finance and Tax Committee that non-school property tax collections dropped 2.1 percent in 2007 after the Legislature ordered a tax rate rollback. Then they dropped 3.8 percent in 2008 after voters approved a tax-cutting constitutional amendment.Those decreases come after 32 years of average annual increases of 10 percent.
School property taxes are exempt from parts of the tax-relief measures, but they are also dropping because of declining property values across the state. That’s expected to cut school revenues by up to $1 billion in the next budget year, which begins July 1, unless lawmakers increase local school tax rates or find state dollars to replace that money.
Sen. Thad Altman, the committee’s chairman, said he was satisfied that non-school taxes have dropped but Florida’s property tax structure remains unfair. That’s due mainly to the Save Our Homes Amendment adopted in 1992. It gives tax breaks to owners of primary homes but shifts the burden to other taxpayers including recent homebuyers, businesses and owners of second and vacation homes.
Primary homeowners “who happened to buy when the market was high are paying relatively high taxes and those who bought when the market was low many, many years ago ... are paying much less,” said Altman, R-Melbourne. “We haven’t really solved the heart of the problem.”
Altman said it’s unlikely lawmakers will solve it this year, either, because that would require amending the Florida Constitution. It would take a three-fourths vote in each chamber to call a special election to amend the constitution this year but only a three-fifths vote to put an amendment on the 2010 general election ballot.
“We need to be deliberate when we amend the constitution,” Altman said. “I don’t think you’re going to see a big rush to get constitutional amendments on the ballot this year because we’re going to have another year of deliberation.”
One provision of the tax-cutting amendment voters approved in January 2009 has not panned out as expected due to the state’s housing slump and national credit crunch. It allows homeowners to take part of their Save Our Homes benefits with them when they move.
This “portability” measure had been forecast to cut taxable values by $11.6 billion last year, but the actual figure was only $3.4 billion with just 42,647 homeowners taking advantage of it.
An extra $25,000 exemption for primary homes on non-school taxes in addition to an existing $25,000 exemption on all taxes cut taxable values by $92 billion. That’s slightly more than predicted.
A new $25,000 exemption on the tax paid by businesses for equipment, furniture and other tangible personal property cut $7.9 billion in property value, about $3 billion less than forecast.
Copyright © 2009 The Associated Press, Bill Kaczor. All rights reserved
A pair of tax-relief measures passed in the last two years have helped reduce property taxes for Floridians after three decades of steady increases, according to reports presented Tuesday in the state Senate.
Senate and Department of Revenue staffers told the Senate Finance and Tax Committee that non-school property tax collections dropped 2.1 percent in 2007 after the Legislature ordered a tax rate rollback. Then they dropped 3.8 percent in 2008 after voters approved a tax-cutting constitutional amendment.Those decreases come after 32 years of average annual increases of 10 percent.
School property taxes are exempt from parts of the tax-relief measures, but they are also dropping because of declining property values across the state. That’s expected to cut school revenues by up to $1 billion in the next budget year, which begins July 1, unless lawmakers increase local school tax rates or find state dollars to replace that money.
Sen. Thad Altman, the committee’s chairman, said he was satisfied that non-school taxes have dropped but Florida’s property tax structure remains unfair. That’s due mainly to the Save Our Homes Amendment adopted in 1992. It gives tax breaks to owners of primary homes but shifts the burden to other taxpayers including recent homebuyers, businesses and owners of second and vacation homes.
Primary homeowners “who happened to buy when the market was high are paying relatively high taxes and those who bought when the market was low many, many years ago ... are paying much less,” said Altman, R-Melbourne. “We haven’t really solved the heart of the problem.”
Altman said it’s unlikely lawmakers will solve it this year, either, because that would require amending the Florida Constitution. It would take a three-fourths vote in each chamber to call a special election to amend the constitution this year but only a three-fifths vote to put an amendment on the 2010 general election ballot.
“We need to be deliberate when we amend the constitution,” Altman said. “I don’t think you’re going to see a big rush to get constitutional amendments on the ballot this year because we’re going to have another year of deliberation.”
One provision of the tax-cutting amendment voters approved in January 2009 has not panned out as expected due to the state’s housing slump and national credit crunch. It allows homeowners to take part of their Save Our Homes benefits with them when they move.
This “portability” measure had been forecast to cut taxable values by $11.6 billion last year, but the actual figure was only $3.4 billion with just 42,647 homeowners taking advantage of it.
An extra $25,000 exemption for primary homes on non-school taxes in addition to an existing $25,000 exemption on all taxes cut taxable values by $92 billion. That’s slightly more than predicted.
A new $25,000 exemption on the tax paid by businesses for equipment, furniture and other tangible personal property cut $7.9 billion in property value, about $3 billion less than forecast.
Copyright © 2009 The Associated Press, Bill Kaczor. All rights reserved
Monday, February 9, 2009
Bloomingdale Hills Pool Home!
WHAT MAKES THIS 3-BEDROOM, 2-BATH HOME SPECIAL IS BEYOND THE FRONT DOOR! Step in and look back through the inviting, spacious great room to the 300-square-foot, screened and covered lanai with spa overlooking a beautiful pool with waterspouts.All that in a home at this price? Yes, but there's even more -- starting with the custom tile floors in all living and wet areas, as well as the hardwood in bedrooms. You'll find quality from the vaulted ceilings to art niches, from the fresh exterior paint to custom exterior lighting, from the wood-burning fireplace to the new roof! It's all on a lovely corner lot with privacy fencing around the gorgeous pool, which features a attractive seating area as part of its extended deck. Last, and perhaps best, it's in Bloomingdale Hills -- a low-fee community ($160 per year) perfectly located for easy access to schools, shops, restaurants, and commuter routes. Some smart buyer will grab this one! Why not you?
Florida Strawberry Festival!
The Florida Strawberry Festival is upon us, once again. It seems like we just finished with Gasparilla and the State Fair is still running, but in a couple of weeks, beginning February 26th and running through March 8th, The Florida Strawberry Festival will be goibng strong in Plant City. There will be plenty of strawberry short cake, rides and entertainment. Click on the Title and it will take you directly to the official web site where you can find all the information you want about the festival.Friday, February 6, 2009
New Fish Hawk Listing!
YES, YOU REALLY CAN AFFORD FISHHAWK RANCH! Get everything the master-planned community offers by moving into Cardel-built quality on a corner lot in Meadow Park -- a small, circular street within walking distance of top-rated Bevis Elementary School! Inside 1,312 square feet, you'll find 3 bedrooms (1 lacks a closet), 2 baths, and an open design that features a great room with sliders to the back yard. The fully applianced kitchen includes raised-panel oak cabinets, a center island and a separate, windowed breakfast nook. Extra touches include volume ceilings, plant shelves, art niches, plus tile in the kitchen and bathrooms. What's more, the full 2-car garage is larger than what you'll find in rival homes at higher prices! FishHawk's community amenities include a state-of-the-art aquatic center, recreation facilities for virtually every sport from tennis to skateboarding, fitness centers, miles of wooded walking trails, a private movie theater, and a centrally located town center just a half-hour from Tampa. Don't miss this opportunity to get in here for a low price!
This is a SHORT SALE property and is listed at $109,900.
Wednesday, February 4, 2009
Florida State Fair Begins
Beginning Feb 5th thru Feb 16th Florida's Biggest Outside Funhouse is right in our own backyard at the State Fair Grounds in Tampa. It is the 105th Edition of the Florida State Fair. http://www.floridastatefair.com/
Experienced Mortgage Lender For Your Pre-Approval!
Hello! Allow me to introduce myself: My name is Michael Payette and I've been a Mortgage Lender for 10 years. I've helped over 500 individuals and families with their financing. Excellent service is a key part of my success and, as a result, most of my business comes from repeat customers and referral sources. My team has over 120 years of combined experience, so rest assured we will take excellent care of you. M&I Bank has been around for over 160 years and is doing well even in today's tough economy. Not only do I represent M&I Bank but also several other mortgage companies. As a result I'm able to comparison shop for you and get you the best possible rate. Additionally, our fees typically run $300 to $500 less than our competitors, which is a direct savings to you. For a limited time we are offering free mortgage pre-approvals. It's free, quick and easy to do. It's important to do this to see how much you would qualify for in today's market. Call me today!"My goal is to exceed your expectations!"
Michael Payette
Residential Lending - M&I Bank
Ph: (813) 334-8412
Fax: (813) 902-7002
email: michael.payette@micorp.com
Tuesday, February 3, 2009
Pending Home Sales Show Gain!
WASHINGTON – Feb. 3, 2009 –
Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors® (NAR). Big gains in the South and Midwest offset modest declines in other regions.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in December, rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9.
Lawrence Yun, NAR chief economist, says the index shows a modest rebound. “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month,” he says. “The biggest gains were in areas with the biggest improvements in affordability.”
NAR’s Housing Affordability index rose 10.9 percent in December to 158.8, the highest on record. The HAI shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.“Significant uncertainty still clouds the housing market despite improved affordability conditions. For a sustainable housing market recovery and, hence, sustainable economic recovery, we need a significant housing stimulus and mortgage availability for qualified borrowers,” Yun added.
The PHSI in the Northeast slipped 1.7 percent to 62.1 in December and is 14.5 percent below a year ago. In the Midwest the index jumped 12.8 percent to 83.7 but remains 1.2 percent below December 2007.
The index in the South surged 13.0 percent to 96.8 in December and is 1.6 percent above a year ago. In the West, the index fell 3.7 percent to 97.5 but remains 17.5 percent higher than December 2007.
“However, housing activity remains weak compared with potential demand, and the market is fragile given the economic backdrop,” says NAR President Charles McMillan. “We can’t take our eye off the need to stimulate housing, which can set the foundation for an economic recovery. Last week’s actions in the House to eliminate the repayment feature on the first-time home buyer tax credit, and to raise mortgage loan limits, are helpful. However, we need to take additional steps to meaningfully draw down inventory and stabilize home prices.”
McMillan says some enhancements that could bring more buyers into the market include expanding the $7,500 tax credit to all home buyers, extending it until the end of 2009, and making loan limit increases permanent. “We also need to direct funds in the Troubled Asset Relief Program (TARP) to add liquidity to the mortgage market, buy down mortgage interest rates and increase other forms of credit,” he says.
Yun says the outlook for housing and the economy is murky. “Although Congress and the Obama administration are taking steps to help the economy, the stimulus package must deal with the root cause of the economic downturn, and apply the right fix to turn it around. If housing is ignored, a significant downward overshooting of home prices would continue to drag the economy down independent of the scale of the stimulus,” Yun says.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors® (NAR). Big gains in the South and Midwest offset modest declines in other regions.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in December, rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9.
Lawrence Yun, NAR chief economist, says the index shows a modest rebound. “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month,” he says. “The biggest gains were in areas with the biggest improvements in affordability.”
NAR’s Housing Affordability index rose 10.9 percent in December to 158.8, the highest on record. The HAI shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.“Significant uncertainty still clouds the housing market despite improved affordability conditions. For a sustainable housing market recovery and, hence, sustainable economic recovery, we need a significant housing stimulus and mortgage availability for qualified borrowers,” Yun added.
The PHSI in the Northeast slipped 1.7 percent to 62.1 in December and is 14.5 percent below a year ago. In the Midwest the index jumped 12.8 percent to 83.7 but remains 1.2 percent below December 2007.
The index in the South surged 13.0 percent to 96.8 in December and is 1.6 percent above a year ago. In the West, the index fell 3.7 percent to 97.5 but remains 17.5 percent higher than December 2007.
“However, housing activity remains weak compared with potential demand, and the market is fragile given the economic backdrop,” says NAR President Charles McMillan. “We can’t take our eye off the need to stimulate housing, which can set the foundation for an economic recovery. Last week’s actions in the House to eliminate the repayment feature on the first-time home buyer tax credit, and to raise mortgage loan limits, are helpful. However, we need to take additional steps to meaningfully draw down inventory and stabilize home prices.”
McMillan says some enhancements that could bring more buyers into the market include expanding the $7,500 tax credit to all home buyers, extending it until the end of 2009, and making loan limit increases permanent. “We also need to direct funds in the Troubled Asset Relief Program (TARP) to add liquidity to the mortgage market, buy down mortgage interest rates and increase other forms of credit,” he says.
Yun says the outlook for housing and the economy is murky. “Although Congress and the Obama administration are taking steps to help the economy, the stimulus package must deal with the root cause of the economic downturn, and apply the right fix to turn it around. If housing is ignored, a significant downward overshooting of home prices would continue to drag the economy down independent of the scale of the stimulus,” Yun says.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Friday, January 30, 2009
What Repeat Buyers Want From Their Agent!
What Repeat Buyers Want Most From Real Estate Professionals
Help you find the right house to purchase - 53%
Help with price negotiations - 13%
Tell you what comparable homes are selling for - 11%
Help determining how much buyer can afford - 11%
Help with paperwork - 8%
Help find and arrange financing - 2%
Help you find the right house to purchase - 53%
Help with price negotiations - 13%
Tell you what comparable homes are selling for - 11%
Help determining how much buyer can afford - 11%
Help with paperwork - 8%
Help find and arrange financing - 2%
How Buyers Find a Home!
Information Sources Used in Home Search
Real estate agent - 84%
Internet -84%
Yard sign - 59%
Open house - 48%
Home book/magazine - 31%
Builders - 24%
Television - 9%
Billboard - 7%
Relocation company - 5%
Real estate agent - 84%
Internet -84%
Yard sign - 59%
Open house - 48%
Home book/magazine - 31%
Builders - 24%
Television - 9%
Billboard - 7%
Relocation company - 5%
Thursday, January 29, 2009
Fannie Mae Tries Program to Speed Up ‘Short Sales’ in Orlando Area
By Jerry W. Jackson
RISMEDIA, January 29, 2009-(MCT)-Orlando is one of the leading metro areas in Florida for single-family-home resales, soaring past larger markets such as Miami, Fort Lauderdale and Jacksonville during the past year as local deals on distressed homes have mushroomed. Now the mortgage giant Fannie Mae is testing a small pilot program in Orlando to speed up some of those sales.
A “short sale” is a distress sale in which the lender agree to take less than the amount owed on the home’s mortgage, so it can avoid the costs of a foreclosure. The number of such deals has been rising in lock step with the surge in foreclosures the past year.
Orange, Seminole, Lake, Osceola and Volusia counties are among 11 counties in Central and Southwest Florida where about 300 homes have been preapproved by Fannie Mae for short sales. Orlando-area Realtors say they hope the program cuts the wait time on short-sale offers from months to weeks or even days-and prompts other lenders to move faster as well.
“Right now, short sales can take months and months until you get an answer back, and sometimes the answer is, ‘We’re not interested.’ This program will cut through that,” said Marty Hunt, an Orlando-area Realtor and president of the Mid-Florida Regional Multiple Listing Service.
The regional MLS, owned and operated by 13 Realtor associations in 10 counties, including the Orlando Regional Realtor Association, will flag the preapproved short sales so member agents can market them for quick sale. The pilot program, which began in late December, also is under way in Phoenix.
Hunt said the relatively small number of preapproved short sales in the Orlando area won’t do much to decrease the thousands of homes in some stage of foreclosure or already repossessed by banks. But if the pilot program works during the next few months, it would be extended and expanded, he said, and that would probably prompt other lenders to develop similar fast-track programs.
The pilot program crafted by Fannie Mae, formally known as the Federal National Mortgage Association, streamlines the process by getting all the research on a property and all the necessary clearances done in advance. In a typical short sale, an offer takes longer than a conventional sale to close because the offer must be cleared by multiple parties, and any negotiations on price can get lost in the blizzard of faxes and other paperwork.
Hunt said that if lenders decide upfront how much they are willing to accept, it would help move some of the record inventory now on the market, and that would help stabilize falling home values and boost consumer confidence.
“That’s critical to turning this around,” he said, noting that in some of the region’s newer subdivisions an estimated 50% to 60% of the homes on the market are foreclosures or short sales. The Fannie Mae pilot program will also include some listings in Polk, Hillsborough, southern Pasco, Manatee, Sarasota and Charlotte counties.
Copyright © 2009, The Orlando Sentinel, Fla.
Distributed by McClatchy-Tribune Information Services.
Wednesday, January 28, 2009
Habitat for Humanity Superbuild Update!
CONSTRUCTION IS GOING GREAT!
Day 1: The first day went very well. We met the Day 1 Build Schedule. Almost 200 volunteers turned out to raise the walls with our partner families! After the Wall Raising ceremony, the volunteers reported to their assigned house site for safety speeches to start the work day. Everyone worked hard and had a lot of fun!
Day 2: It was a beautiful day in the Habitat neighborhood as volunteers joined together to put sheathing on the roof of each home, among other tasks. Members of the Unitarian Universalist Church brought delicious chili to help feed the volunteers. Mid-afternoon milk and cookies helped our wonderful volunteers meet the Build Schedule for Day 2!
Day 3: The roosters were crowing this morning (both the real kind and the iPod species) to get the volunteers started on their day of building for SuperBuild 2009. The sun was shining brightly as workers put felt paper on the roof to prepare for shingling while other volunteers installed siding. Electricians and plumbers worked inside to install wiring and plumbing fixtures. What a busy and productive day! We are still on schedule!! Go volunteers, Crew Leaders and House Leaders!! You rock!
Day 4: The weather was wonderful for building today! Our super volunteers worked hard installing siding, shingles and insulation today. We are still on track!! Pod species) to get the volunteers started on their day of building for SuperBuild 2009. The sun was shining brightly as workers put felt paper on the roof to prepare for shingling.
Day 5: Volunteers did a great job installing siding and shingles. It was exciting when Mayor Pam Iorior came out to the site to draw the name of the winner of the Super Bowl tickets from the "Square Up for $59" campaign for the Champions House. Later in the day, volunteers and drywall installers took a break when Warrick Dunn made a presentation to another Habitat homeowner from the Warrick Dunn Foundation. Our wonderful volunteers could not wait to get back to work. Thank you for your dedication!!
Day 1: The first day went very well. We met the Day 1 Build Schedule. Almost 200 volunteers turned out to raise the walls with our partner families! After the Wall Raising ceremony, the volunteers reported to their assigned house site for safety speeches to start the work day. Everyone worked hard and had a lot of fun!
Day 2: It was a beautiful day in the Habitat neighborhood as volunteers joined together to put sheathing on the roof of each home, among other tasks. Members of the Unitarian Universalist Church brought delicious chili to help feed the volunteers. Mid-afternoon milk and cookies helped our wonderful volunteers meet the Build Schedule for Day 2!
Day 3: The roosters were crowing this morning (both the real kind and the iPod species) to get the volunteers started on their day of building for SuperBuild 2009. The sun was shining brightly as workers put felt paper on the roof to prepare for shingling while other volunteers installed siding. Electricians and plumbers worked inside to install wiring and plumbing fixtures. What a busy and productive day! We are still on schedule!! Go volunteers, Crew Leaders and House Leaders!! You rock!
Day 4: The weather was wonderful for building today! Our super volunteers worked hard installing siding, shingles and insulation today. We are still on track!! Pod species) to get the volunteers started on their day of building for SuperBuild 2009. The sun was shining brightly as workers put felt paper on the roof to prepare for shingling.
Day 5: Volunteers did a great job installing siding and shingles. It was exciting when Mayor Pam Iorior came out to the site to draw the name of the winner of the Super Bowl tickets from the "Square Up for $59" campaign for the Champions House. Later in the day, volunteers and drywall installers took a break when Warrick Dunn made a presentation to another Habitat homeowner from the Warrick Dunn Foundation. Our wonderful volunteers could not wait to get back to work. Thank you for your dedication!!
Florida Consumer Confidence Inches Upward!
Floridians' consumer confidence is inching back up, gaining one point to stand at 68, despite the weak economy, according to the latest survey from UF's economists. The biggest change may be in the component measuring perceptions of personal finances now compared with a year ago, which broke a four-month downward trend to rise five points.
Tuesday, January 27, 2009
State Farm Planning To Pull Out as Florida Property Insurance Provider
TALLAHASSEE, Fla. – Jan. 27, 2009 – State Farm announced today that it’s pulling out of the property insurance market throughout Florida.State Farm Florida – the state’s largest private homeowners insurer – estimates that the move will impact up to a million customers. The company plans to continue its other insurance divisions, including auto, which has about 2.8 million customers.State Farm blames the state for its move. On Jan. 12, Florida regulators denied a State Farm request for a 47 percent average rate increase.“Although this is disappointing news for Floridians who have been loyal customers of State Farm, we are not surprised by State Farm’s decision to stop offering all property insurance in Florida,” says Florida Insurance Commissioner Kevin McCarty. “We have been hearing for months of possible plans to make such a move in Florida, including a document submitted … as recently as Dec. 5.” McCarty says the state will carefully review State Farm’s plans and “explore all legal options as well.”The Florida Legislature could also become involved. “It is important to note that we have been working with state Sen. Mike Fasano, (R-New Port Richey) to develop legislation that will significantly limit the number of non-renewals a company can issue in a year,” McCarty says.Current State Farm policyholders will not see any changes in the near future. The Office of Insurance Regulation has 90 days to approve State Farm’s plan. If approved, State Farm must then provide 180 days notice to customers before any policies can be non-renewed.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Monday, January 26, 2009
More Good Housing News!
DECEMBER HOME SALES
Florida's existing home sales rose 27 percent in December, making it the fourth consecutive month that sales activity demonstrated gains in the year-to-year comparison, according to FAR. Statewide sales of existing condos increased 12 percent last month; and December sales of both existing homes and condos were higher than November's statewide figures. Meanwhile, NAR reports that existing-home sales - all housing types - rose 6.5 percent in December compared to November's pace.
Florida's existing home sales rose 27 percent in December, making it the fourth consecutive month that sales activity demonstrated gains in the year-to-year comparison, according to FAR. Statewide sales of existing condos increased 12 percent last month; and December sales of both existing homes and condos were higher than November's statewide figures. Meanwhile, NAR reports that existing-home sales - all housing types - rose 6.5 percent in December compared to November's pace.
RIVERVIEW, NEW LISTING! FOR RENT! 10435 Hunters Haven
Be the first to step inside this impeccable home set on a large, fenced lot with a pond view! It offers formal living & dining rooms as well as a casual kitchen and family room inside 1,856 square feet. The open kitchen features upgraded cabinets & appliances, a closet pantry, breakfast bar & a dining area. This popular floor plan; the Dakota, by Pulte offers a split bedroom design with the volume ceilings & art niches you expect with a newer home. The master, overlooking the backyard, includes a deep walk-in closet & a private bath with his/her sinks, garden tub & separate shower. The yard offers plenty of room for outdoor play, 3 gates for easy entry, & a pond view with no backyard neighbor beyond the quality wooden fence! What’s more, all of this can be enjoyed from the generous, 18-by-24-foot screened lanai. Other extras include lovely landscaping & new, 18” in tile floors in the kitchen & all wet areas & walk ways. South Pointe boasts 2 community pools, a community park, & easy access to U.S. 301 or Interstate 75 for downtown commuters. This one’s an easy pick! $1300/month Available June 1, 2009
Friday, January 23, 2009
Riverglen Open House! Sunday 1/25/09 2-4PM
Come see this nearly 2400sf home being held open Sunday, January 25, 2009 from 2PM-4PM! This stunning 5BR, 3BA home. Upgrades include 16 inch tile set on the diagonal, remodeled bathrooms, designer lighting and fixtures, stainless-steel appliances and a new high-efficiency A/C unit. Property is located at 12017 Running Fox in Riverview. NOT A SHORT SALE! Aggressively priced at $104sf, same as the bank owned across the street. A 200sf, smaller home next door sold at $108sf last month. Great Schools! Low HOA fees. Easy commute to Tampa, MacDill and surrounding areas.
Few Borrowers Can Revise Mortgage Loans
By Monica Hatcher
RISMEDIA, January 23, 2009-(MCT)-Since defaulting on her mortgage more than a year ago, Marisela Gonzalez has attended foreclosure prevention seminars, spent hours on the phone with her lender, paid a consultant, availed herself of bankruptcy protection-everything in her power to hang onto her home.
“I thought to pack and just get out,” recalled the special-education teacher. “Then, I said, ‘No … this is my place. I’ve been here 15 years and I am not going to give it back to a bank just like that.’”
Yet Gonzalez is giving her Kendall, Fla., townhouse back to the bank, in this case the federal government, which took over lender IndyMac. Even with an offer to lower her interest rate, Gonzalez could not afford the payments and owes about $100,000 more than the house is worth.
Gonzalez’s attempts to stay in her home illustrate why regulators are having trouble stemming the flood of foreclosures at the heart of the nation’s economic crisis. And why some say it is imperative for the economy that a major chunk of the remaining $700 billion bailout bonanza go to helping homeowners drowning in debt.
Regulators, lawmakers and economists alike believe helping borrowers get into loans with more favorable terms-smaller loans, lower interest rates-is crucial to ending the recession. But despite the creation of a number of programs, only a small percentage of struggling homeowners have received help.
Lenders, watching out for their bottom lines, will go along only as long as helping the borrower will cost them less than foreclosing and reselling the home. Plus, they are skittish about staying on the hook with borrowers who are highly likely to default again.
Borrowers, for their part, often can’t afford the reduced payments. When they can, they question the sense of paying on a home that, as is the case in many places, is still falling in value. Investors, who represent a big slice of delinquent homeowners, do not qualify for a mortgage lifeline at all.
No one questions that the need is dire. Regulators from Federal Deposit Insurance Corp. Chairman Sheila Bair to Federal Reserve Chairman Ben Bernanke and the U.S. Treasury’s Neel Kashkari have repeatedly told Congress that more must be done to prevent foreclosures and stabilize falling home prices, saying both are required to lift the economy out of recession.
In November, the FDIC estimated that another 3.8 million mortgages would be 60 days to 90 days past due by the end of 2009.
Yet even the government’s own effort to modify loans, which is being held out as a national model for other lenders, has its flaws, housing advocates and other market observers said.
Of the 45,000 borrowers eligible for a workout under an FDIC program, 8,500 loans have been restructured. “Thousands more,” though, are in the pipeline, the FDIC said. The agency would not say how many borrowers could not be helped. And Hope for Homeowners, passed by Congress in July, was expected to help 400,000 borrowers avoid foreclosure with Federal Housing Administration guarantees of up to $300 billion in refinanced loans.
So far, only 350 loans nationwide have been refinanced, according to the U.S. Department of Housing and Urban Development.
The reason: Lenders have to agree to write the value of the loan down to 90% of the home’s current market value. Homeowners have to share half of any future equity with the federal government. Neither are eager to do that.
The numbers disappoint Guy Cecala, publisher of Inside Mortgage Finance, who asserts that across-the-board, automatic modifications are needed to contain the wreckage of the last six years. That might have been possible had bailout funds been used to buy mortgage-backed securities, putting control of the loans in the government’s hands rather than Wall Street investors, he said.
“If this is the best model we’ve got, we’re still in trouble,” Cecala said. “It is probably the most aggressive we’ve seen out there and you are still not getting a lot of success.”
It’s not clear what system will be used to implement a sweeping foreclosure-prevention program pledged by President Barack Obama during negotiations with Congress over the release last week of $350 billion in bailout funds.
Loan modifications are different from repayment plans, which help borrowers catch up on missed payments by doing things like folding past-due amounts into the mortgage balance or boosting monthly payments by a small amount to pay arrears a bit at a time. Generally, they’re meant to see borrowers through a temporary rough patch.
Modifications take aim at the mortgage’s structure. Plans can include converting adjustable interest rates to fixed, lowering rates and, in rare cases, forgiving some of the principal. Banks often will extend the life of the loan to reduce monthly payments as well.
Under intense public pressure, lenders have amped up loan modifications.
Hope Now, an alliance of nonprofits, lenders and the federal government, said more than 850,000 loans were modified through November.
The FDIC says only 4% of seriously delinquent loans each month are being modified. And data from the Office of the Comptroller of the Currency suggests the modifications may ultimately not be much help. The OCC found recently that 37% of mortgages modified in the first quarter of 2008 were 60 days past due within six months.
“Maybe the loan modification did not cut far enough; it may be that the loan was so poorly underwritten that nothing could help the borrower,” said Bryan Hubbard, an OCC spokesman. “It may be that borrower had more credit available and used it for other means and ran up debt elsewhere and the economy has taken a turn for the worse.”
Avi Shenkar, president of GMA Modification in North Miami Beach, Fla., said modifications still weren’t lowering payments enough for borrowers who took out teaser rate loans and owe far more then they could afford.
He also questions how willing banks are to work with homeowners, since eight out of 10 seeking help from GMA already have been denied a modification from the bank.
Jackie Duran, director of foreclosure prevention at the nonprofit Neighborhood Housing Services of South Florida, said many of their clients also got nowhere dealing with the bank.
“It’s obvious to us that lenders are not trying to help the homeowner but minimize how much they lose. They have a very thin margin for loan modification,” Shenkar said.
Gonzalez’s lender, IndyMac, looks at two things: whether modifying a borrower’s loan costs less than its estimated cost to foreclose, and whether payments can be reduced at least 10% and still account for no more than 38% of a borrower’s monthly income.
“We contractually have to act in the interest of whoever owns the loan,” said Evan Wagner, an IndyMac spokesman. Wagner said the bank has mailed offers to most of those eligible for a modification, a feat, considering the program has been in effect for only around six months.
Even when payments can be reduced, homeowners have to be convinced that sticking with a loan that is higher than the home’s market value-known as being underwater-is in their best interest.
That’s the main reason Gonzalez has decided to walk away. Gonzalez refinanced in 2006 into an option-ARM with a balance that grew over time, rolling in other debt like credit cards.
“I refinance for $245,000. I owe now $286,000-$41,000 was of the negative amortization in a year,” Gonzalez said. Her home’s worth: $175,000.
Wagner said Gonzalez was offered a deal almost a year ago that kept her payments essentially the same and reduced her interest rate to a fixed 8.4%. She insists she was told differently.
There’s little IndyMac can do for her now, Wagner said, since Gonzalez’s debts were discharged in bankruptcy court. She’ll have to leave her home soon.
“Where is the federal help for homeowners? Homeowners are losing in this deal and the banks are … not losing anything,” Gonzalez said.
But loan modifications are not about making homes better investments for borrowers, Wagner said. In fact, most homeowners will be worse off after their arrears, interest and fees are rolled into the balance after a modification, he said.“Our program is about affordability,” Wagner said. “… not about mitigating bad investment decisions. We’re not getting into that.”
IndyMac’s plan, he said, allows the bank to “help those that we can without encouraging the 90 percent of people who are making payments not to default themselves,” he said.
Cecala said many homeowners figure that if a modification’s goal is solely to have their monthly payments lowered, they’d be better off renting, thinking there was little hope of ever having equity.
“What they need to do is build an incentive to keep somebody in the home,” Cecala said.
As for Gonzalez, she’s fought, agonized and cried, but has finally come to terms with the idea of leaving her townhouse.
“At this point, I don’t really care. I’m tired of this BS,” Gonzalez said.
© 2009, The Miami Herald.Distributed by McClatchy-Tribune Information Services.
RISMEDIA, January 23, 2009-(MCT)-Since defaulting on her mortgage more than a year ago, Marisela Gonzalez has attended foreclosure prevention seminars, spent hours on the phone with her lender, paid a consultant, availed herself of bankruptcy protection-everything in her power to hang onto her home.
“I thought to pack and just get out,” recalled the special-education teacher. “Then, I said, ‘No … this is my place. I’ve been here 15 years and I am not going to give it back to a bank just like that.’”
Yet Gonzalez is giving her Kendall, Fla., townhouse back to the bank, in this case the federal government, which took over lender IndyMac. Even with an offer to lower her interest rate, Gonzalez could not afford the payments and owes about $100,000 more than the house is worth.
Gonzalez’s attempts to stay in her home illustrate why regulators are having trouble stemming the flood of foreclosures at the heart of the nation’s economic crisis. And why some say it is imperative for the economy that a major chunk of the remaining $700 billion bailout bonanza go to helping homeowners drowning in debt.
Regulators, lawmakers and economists alike believe helping borrowers get into loans with more favorable terms-smaller loans, lower interest rates-is crucial to ending the recession. But despite the creation of a number of programs, only a small percentage of struggling homeowners have received help.
Lenders, watching out for their bottom lines, will go along only as long as helping the borrower will cost them less than foreclosing and reselling the home. Plus, they are skittish about staying on the hook with borrowers who are highly likely to default again.
Borrowers, for their part, often can’t afford the reduced payments. When they can, they question the sense of paying on a home that, as is the case in many places, is still falling in value. Investors, who represent a big slice of delinquent homeowners, do not qualify for a mortgage lifeline at all.
No one questions that the need is dire. Regulators from Federal Deposit Insurance Corp. Chairman Sheila Bair to Federal Reserve Chairman Ben Bernanke and the U.S. Treasury’s Neel Kashkari have repeatedly told Congress that more must be done to prevent foreclosures and stabilize falling home prices, saying both are required to lift the economy out of recession.
In November, the FDIC estimated that another 3.8 million mortgages would be 60 days to 90 days past due by the end of 2009.
Yet even the government’s own effort to modify loans, which is being held out as a national model for other lenders, has its flaws, housing advocates and other market observers said.
Of the 45,000 borrowers eligible for a workout under an FDIC program, 8,500 loans have been restructured. “Thousands more,” though, are in the pipeline, the FDIC said. The agency would not say how many borrowers could not be helped. And Hope for Homeowners, passed by Congress in July, was expected to help 400,000 borrowers avoid foreclosure with Federal Housing Administration guarantees of up to $300 billion in refinanced loans.
So far, only 350 loans nationwide have been refinanced, according to the U.S. Department of Housing and Urban Development.
The reason: Lenders have to agree to write the value of the loan down to 90% of the home’s current market value. Homeowners have to share half of any future equity with the federal government. Neither are eager to do that.
The numbers disappoint Guy Cecala, publisher of Inside Mortgage Finance, who asserts that across-the-board, automatic modifications are needed to contain the wreckage of the last six years. That might have been possible had bailout funds been used to buy mortgage-backed securities, putting control of the loans in the government’s hands rather than Wall Street investors, he said.
“If this is the best model we’ve got, we’re still in trouble,” Cecala said. “It is probably the most aggressive we’ve seen out there and you are still not getting a lot of success.”
It’s not clear what system will be used to implement a sweeping foreclosure-prevention program pledged by President Barack Obama during negotiations with Congress over the release last week of $350 billion in bailout funds.
Loan modifications are different from repayment plans, which help borrowers catch up on missed payments by doing things like folding past-due amounts into the mortgage balance or boosting monthly payments by a small amount to pay arrears a bit at a time. Generally, they’re meant to see borrowers through a temporary rough patch.
Modifications take aim at the mortgage’s structure. Plans can include converting adjustable interest rates to fixed, lowering rates and, in rare cases, forgiving some of the principal. Banks often will extend the life of the loan to reduce monthly payments as well.
Under intense public pressure, lenders have amped up loan modifications.
Hope Now, an alliance of nonprofits, lenders and the federal government, said more than 850,000 loans were modified through November.
The FDIC says only 4% of seriously delinquent loans each month are being modified. And data from the Office of the Comptroller of the Currency suggests the modifications may ultimately not be much help. The OCC found recently that 37% of mortgages modified in the first quarter of 2008 were 60 days past due within six months.
“Maybe the loan modification did not cut far enough; it may be that the loan was so poorly underwritten that nothing could help the borrower,” said Bryan Hubbard, an OCC spokesman. “It may be that borrower had more credit available and used it for other means and ran up debt elsewhere and the economy has taken a turn for the worse.”
Avi Shenkar, president of GMA Modification in North Miami Beach, Fla., said modifications still weren’t lowering payments enough for borrowers who took out teaser rate loans and owe far more then they could afford.
He also questions how willing banks are to work with homeowners, since eight out of 10 seeking help from GMA already have been denied a modification from the bank.
Jackie Duran, director of foreclosure prevention at the nonprofit Neighborhood Housing Services of South Florida, said many of their clients also got nowhere dealing with the bank.
“It’s obvious to us that lenders are not trying to help the homeowner but minimize how much they lose. They have a very thin margin for loan modification,” Shenkar said.
Gonzalez’s lender, IndyMac, looks at two things: whether modifying a borrower’s loan costs less than its estimated cost to foreclose, and whether payments can be reduced at least 10% and still account for no more than 38% of a borrower’s monthly income.
“We contractually have to act in the interest of whoever owns the loan,” said Evan Wagner, an IndyMac spokesman. Wagner said the bank has mailed offers to most of those eligible for a modification, a feat, considering the program has been in effect for only around six months.
Even when payments can be reduced, homeowners have to be convinced that sticking with a loan that is higher than the home’s market value-known as being underwater-is in their best interest.
That’s the main reason Gonzalez has decided to walk away. Gonzalez refinanced in 2006 into an option-ARM with a balance that grew over time, rolling in other debt like credit cards.
“I refinance for $245,000. I owe now $286,000-$41,000 was of the negative amortization in a year,” Gonzalez said. Her home’s worth: $175,000.
Wagner said Gonzalez was offered a deal almost a year ago that kept her payments essentially the same and reduced her interest rate to a fixed 8.4%. She insists she was told differently.
There’s little IndyMac can do for her now, Wagner said, since Gonzalez’s debts were discharged in bankruptcy court. She’ll have to leave her home soon.
“Where is the federal help for homeowners? Homeowners are losing in this deal and the banks are … not losing anything,” Gonzalez said.
But loan modifications are not about making homes better investments for borrowers, Wagner said. In fact, most homeowners will be worse off after their arrears, interest and fees are rolled into the balance after a modification, he said.“Our program is about affordability,” Wagner said. “… not about mitigating bad investment decisions. We’re not getting into that.”
IndyMac’s plan, he said, allows the bank to “help those that we can without encouraging the 90 percent of people who are making payments not to default themselves,” he said.
Cecala said many homeowners figure that if a modification’s goal is solely to have their monthly payments lowered, they’d be better off renting, thinking there was little hope of ever having equity.
“What they need to do is build an incentive to keep somebody in the home,” Cecala said.
As for Gonzalez, she’s fought, agonized and cried, but has finally come to terms with the idea of leaving her townhouse.
“At this point, I don’t really care. I’m tired of this BS,” Gonzalez said.
© 2009, The Miami Herald.Distributed by McClatchy-Tribune Information Services.
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