Foreclosure Guru Blog

Applying for mortgage? Starting June 1, you could face another credit screening

2010-05-17T10:29:00.000-04:00

If you're thinking about applying for a home mortgage, here's some important news: Beginning June 1, your lender is likely to order a second full credit screening immediately before closing.

The last-minute credit report will be designed to find out whether you have obtained -- or even shopped for -- new debt between the date of your loan application and the closing. If you've made applications for credit of any type -- for furnishings and appliances for the new house, a car, landscaping, a home equity line, a new credit card, you name it -- the closing could be put on hold pending additional research by the lender.

If you've actually taken out new loans that are sizable enough to affect the debt-to-income ratio calculations used in your original mortgage approval, the whole deal could fall through. The added debt load could render you ineligible for the mortgage because you suddenly appear unable to handle the payments without a strain on your household budget.

The June 1 changes are part of a new effort by mortgage giant Fannie Mae to cut down on slipshod underwriting by lenders and fraud by borrowers. Fannie's "loan quality initiative" will require lenders not only to pull two credit reports for each mortgage transaction but to perform additional verifications of borrower occupancy plans for the property, Social Security numbers and Individual Taxpayer Identification Numbers.

"There's an almost irresistible urge" for many mortgage borrowers, said Don Unger, chief executive of Advantage Credit of Evergreen, Colo. "The lender says, 'Okay, you're approved for the loan,' and you immediately think about shopping for all the things you need for the house. You go to Home Depot" or other major retailers, "and you put in an application."

In the past, that might not have raised an eyebrow -- or even been detected. But under the new double-check policy, when the Home Depot application shows up as a "hard," or borrower-initiated, inquiry on a credit report, Unger said, the lender "is going to have to contact" the merchant and determine whether credit was extended, in what amount, and how this might affect the applicant's home financing transaction.

Marc Savitt, president of the National Association of Independent Housing Professionals and a mortgage broker in Martinsburg, W.Va., said it's not an uncommon scenario. "Most often the new debt involves furniture or other goods for the house," Savitt said. "However, we have seen debt for new cars and other major purchases."

Terry Clemans, executive director of the National Credit Reporting Association, recalls one case in which the home buyers "went out and gorged on $40,000 worth of new furniture and all types of stuff" after their loan approval -- incurring monthly payments far beyond what they could possibly afford. Under the new policy, they would likely be shot down before closing.

Fannie Mae spokeswoman Janis Smith said lenders "will have to look for things like new credit accounts, increased credit lines, increased balances on existing accounts, undisclosed or newly recorded liens, second mortgages -- anything that may have changed since initial application that might impact a borrower's debt-to-income ratio."

As a practical matter, some lenders are likely to ask their credit reporting vendors to perform the actual investigations when new debts or inquiries pop up on borrowers' files. Fannie Mae's instructions say that "lenders must determine that all debts of the borrower incurred or closed up to and concurrent with the closing" are considered in the final loan analysis.

Unger, however, said all this may not be as straightforward as it sounds. For example, if the credit report is pulled immediately before closing to comply with the "up to and concurrent" requirement, there may not be sufficient time to check out inquiries -- especially those in which no actual drawdown of debt has been reported to the national credit bureaus. He also questioned whether entire loan packages might need to be re-underwritten -- a time-consuming process -- based on credit data discovered at the eleventh hour.

In that event, poof goes your closing.

How should home buyers and refinancers prepare for the new credit check procedures? Lenders and credit reporting company executives say everybody needs to follow just one basic rule: abstinence. Between your application for a mortgage and the date of closing -- which might be a span of 45 to 60 days or more -- resist the irresistible.

Don't apply for new credit unless you discuss it in advance with your lender and get a green light.

By Kenneth R. Harney

Fannie Mae Cuts Waiting Period for New Mortgages

2010-05-06T11:46:00.002-04:00

Borrowers who previously experienced a deed-in-lieu of foreclosure will not have to wait as long to get approved for a new mortgage loan. Mid April, Fannie Mae changed it required waiting period to reflect the current market conditions. In the past, borrowers had to wait four years after a deed-in-lieu of foreclosure to get approved for a mortgage with Fannie Mae. That time period has just been reduced to just two years. The maximum loan-to-value is limited to 80% and after four years the maximum loan-to-value raises to 90%. Pre-foreclosure sales and short sales will also have a two year waiting period with the same loan-to-value requirements.

In all cases, borrowers must re-establish their credit, which means they must meet minimum credit scores and eligibility requirements.

Testing for #Chinese Drywall

2010-04-09T16:50:00.002-04:00

The first option is a self test. To self test your home for Chinese drywall, first check your copper wiring by removing the covers to your light switches and outlets. Look for your copper ground wire. It should be shiny and copper colored. If it is dark or black, there is a high chance that you have Chinese drywall. NOTE: Exercise extreme when entering these wire boxes. Those wires are live and carry enough electricity to kill. Do not touch the wiring, simply observe it.

Measure up about 49" above the floor, that should be the horizontal joint between the sheets, cut out a piece about 6" above and 6" below that height, for about 4 feet, that should give enough edge to find the name.

Repairing drywall is cheap and easy, and if the piece comes out in one piece as it should, that same piece can be put back in and patched around. Of course, if it is Chinese drywall, put it back in temporarily, but why patch it? All of the drywall may end up getting ripped out anyway.

Continuing with a home test, check the copper pipes leading to and from your water heater. Again, dark colored copper is an indication of Chinese drywall. The advantages of a self test is that they are cheap, pretty straight forward, and you know your own house. The disadvantages are the danger of checking live wiring, and the fact that this only examines the sheets of drywall where the outlets and switch boxes are. This still misses most of the drywall in your house, so you could still have Chinese drywall in your house and not see it with this method.

The second method of testing is to hire a home inspector. There are a plethora of home inspectors that offer Chinese drywall inspection, usually ranging from $150-$200. These inspectors generally perform all the steps you would do in a self inspection, but save you the trouble of doing it. They also take photographic evidence of what they find and supply you with a printed summary a few days after the inspection.

The advantages of a home inspector are that they save you the hassle of inspecting yourself, and keep you away from any dangerous live wiring. They also give you written and photographic documentation of what they find, which allows you to present that material when it comes time to sell your house. The disadvantages are that these inspectors can still miss large portions of your house, since they don't check every sheet of drywall. This means that even if their report comes back clean, you could still have Chinese drywall in your home. Also, there is no federal mandated method of inspecting for Chinese drywall, so these home inspectors all follow their own unique guidelines.

The third option is to send a sample away to a professional lab such as Pro-Lab or Caslab for chemical analysis. These usually cost anywhere from $150 to $500 per sample, and as such are the most expensive option. Also, since the price is per sample, to test every sheet in your home would cost hundreds of thousands of dollars.

The last option is through a do it yourself DIY Chinese drywall test kit. These test kits allow you to chemically test every sheet of drywall in your home for Chinese drywall. There used to be two competing companies that offered DIY chinese drywall test kits, www.InspectorsInc.com and www.ChineseDrywallTesterKit.com, but the first one appears to have since gone out of business. Now only the latter, www.ChineseDrywallTesterKit.com still exists. The advantage of these kits is that you can test your whole house for less than the cost of a home inspection or a lab sample. The downside is that you don't get photographic summary from a home inspector. But you could always take your own photos of the results of the test and have that as proof.

FHA Commissioner: Raising the Down Payment Requirement Would Hurt Housing Recovery

2010-03-19T16:11:00.000-04:00

Increasing the minimum down payment required for a Federal Housing Administration (FHA) loan from 3.5 percent to 5 percent could be a double whammy, affecting both potential homebuyers and the economy as a whole according to David H. Stevens, FHA Commissioner. At the same time, a lower loan to value ratio (LTV) by itself is not a particularly good indicator of buyer risk. In a statement prepared for a hearing Thursday afternoon by the House Financial Services Subcommittee on Housing and Community Opportunity, the Commissioner said if the agency raised the minimum down payment to 5 percent "as some have suggested," it would adversely impact the housing market recovery.

The agency has conducted an evaluation of the loan files of a large sample of recent loans to identify homeowners who would have been able to come up with the necessary cash for a higher down payment and found that such a policy change would reduce the number of loans guaranteed by FHA by 40 percent or 300,000 buyers while only contributing $500 million in additional receipts to the FHA budget. Such a reduction of mostly first-time buyers, he said, would have a significant impact on the housing market "potentially forestalling the recovery of the housing market and potentially leading to a double-dip in housing prices by significantly curtailing demand."

Furthermore, Stevens said, the down payment alone is not the only factor that influences loan performance. He suggested that other changes proposed earlier by FHA are better predictors of risk. The combination of a higher down payment and a higher FICO score, for example, is a much better predictor of loan performance than either component alone. FHA recently announced that it was increasing the FICO score necessary for the 3.5 percent down payment to 580. In reality, most lenders have informally used much higher scores for some time.

Instead of increasing the down payment, FHA has decided to reduce the upfront mortgage insurance premium which is, in most cases, financed into the loan balance. The upfront premium was recently increased from 1.75 to 2.25 percent of the loan and FHA is awaiting Congressional approval to raise the annual premium which is now at its legislative ceiling. When that approval is received a portion of the upfront premium will be transferred to monthly payments thus reducing the loan amount and increasing the LTV.

Stevens stressed that, in spite of the fact that its secondary reserves had fallen below the required two percent level, FHA is not "the next subprime." Subprime delinquencies are 240 percent higher than FHA's because FHA stuck to the basics during the housing boom and had not dabbled in exotic mortgages and had insisted on verifying borrower income and employment. Stevens will restate changes that the agency is making to shore up the fund including the aforementioned increase in premiums, strengthening risks controls, and stepping up enforcement, and also by increasing staff and technology capacity and efficiency.

In his statement, the Commissioner says that, according to the Federal Home Financing Agency index, home prices have been rising steadily since last April. This was in spite of projections from many economists that prices would decline an additional 5 percent during 2009. Stevens said this contradiction is even more surprising since most of the forecasters had underestimated the rise in unemployment during the same period. Home equity has also stated to rise again, increasing by more than $900 billion by the end of September, an average of $12,000 per home.

Stevens cited the following accomplishments of his agency over the last year:

FHA insured almost 30 percent of purchases and 20 percent of refinances.
More than three-quarters of FHA's purchase-loans went to first time homebuyers and nearly half of all first-time buyers in the second quarter of 2009 used FHA to finance their homes.
FHA financed 52 percent of African American homebuyers and 45 percent of Hispanic buyers, making it by far the largest source of loans for minority buyers.
It has helped over 800,000 homeowners refinance into fixed-rate mortgages.
The Home Equity Conversion Mortgage (HECM) program, a reverse mortgage for seniors, had a loan volume of $30.2 billion in FY 2009.
The agency has taken fraud enforcement actions against more than six times as many lenders since FY2009 than the agency had brought during the entire period of FY2000-2008.

Stevens said that the FHA budget for FY 2011 represents a careful, calibrated balancing of the agency's responsibilities of providing homeownership opportunities, supporting the housing market, and ensuring the health of the FHA Mutual Mortgage Insurance (MMI) Fund. The agency is requesting $420 billion for new FHA loan commitments for the MMI and General and Special Risk Insurance funds, $88 million for Housing Counseling Assistance, and $20 million for its Mortgage Fraud initiative and implementation of the reforms to RESPA and the Secure and Fair Enforcement (SAFE) for Mortgage Licensing Act

BANK OWNED FORECLOSURE OF THE DAY

2010-03-08T16:20:00.001-05:00

Wellington, FL
Lakefront Single Family Home

Expansive lake views from many rooms in this two story home, built 2006. Gorgeous 4 bedroom, 3.5 bath with 2 car garage. 3288 sq ft under air, elegant foyer, formal living room, diagonal tile throughout living areas, wet bar, wine storage, granite countertops. Needs appliances. ID: W3810.

Last sold 2006 for $717,885. Bank asking only $395,010!

***Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470.

BANK OWNED PROPERTY OF THE DAY

2010-03-03T13:45:00.000-05:00

Palm Beach Gardens, FL
Single Family Home

Beautiful 4 bedroom, 3.5 bath two story home, built 2005, 2755 sq feet under air and 2 car attached garage. Guest suite off garage with private entrance. Private back yard. ID: FB3813.

Last sold 2007 for $650,000.
Bank asking only $329,900.

***Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470.

BANK OWNED FORECLOSURE OF THE DAY

2010-03-01T10:36:00.000-05:00

Jupiter, FL

Beautiful 3 bedroom, 2.5 bath townhouse with attached 2 car garage in highly desirable central Jupiter community. Built 2006. Pets allowed. Granite kitchen, tile flooring. Seller giving 2 year warranty to owner occupants. ID: FB3812

Last sold 2006 for $337,095, Bank asking only $159,900.

***Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470.

Are Principal Reductions the Answer?

2010-02-15T15:16:00.002-05:00

NEW YORK – Feb. 15, 2010 – Real estate investors are coming to the same conclusion that housing activists reached at the beginning of the crisis – forgiving principal on underwater loans may be the best way to deal with the problem.

“Principal reduction is the only answer,” says Laurie Goodman, a senior managing director at mortgage-bond trader Amherst Securities Group L.P.

Some activists and investors are asking banks to consider principal reductions so that the amount borrowers owe on underwater loans can be sharply reduced. They say this offers the best incentive for borrowers to continue to make their monthly mortgage payments.

Even though principal reductions are complicated transactions for lenders, even the largest of them are beginning to accept the idea.

“Everybody’s realizing there is a place for principal reductions to a much greater extent than before,” says Jack Schakett, a senior Bank of America Corp. executive involved in loan workouts.

Micah Green, a partner at law firm Patton Boggs LLP, who represents some of the largest investors in mortgages, shrugs the idea that write-downs are unfair to those who continue to make their payments. “Everybody’s going to have to give a little for it to work,” he says.

Source: The Wall Street Journal, James R. Hagerty (02/09/2010)

Justices adopt Fla. foreclosure mediation rules

2010-02-15T15:10:00.002-05:00

TALLAHASSEE, Fla. – Feb. 15, 2010 – Lenders will be required to pick up the tab for investigating and verifying ownership and then try mediation before foreclosing Florida home mortgages under new rules approved Thursday by the Florida Supreme Court.

The rules are designed to help Florida’s judicial system better cope with a flood of foreclosures. They follow a December administrative order by Chief Justice Peggy A. Quince telling local judges to adopt a uniform mediation program.

Florida has the nation’s fourth-highest foreclosure rate. Almost 400,000 cases were filed in Florida’s courts last year.

The rules and corresponding legal forms were proposed by a pair of Florida Bar panels.

“They found that many cases were being filed by plaintiffs that didn’t’ own the mortgages any more,” said Miami lawyer Mark Romance, who chairs the Civil Procedures Rules Committee.

Romance said other cases were being filed against people who no longer owned the homes.

“I don’t think there was any ill will or intent to harm someone,” Romance said.

The investigate-and-verify rule should help prevent those kinds of errors and give judges greater authority to sanction lenders who do make false allegations, the justices wrote.

“It’s just going to be another hoop to jump through,” said Anthony DiMarco, executive vice president for public affairs for the Florida Bankers Association, which opposed that provision. “It’s making us find a document we’re already supposed to find.”

The decision was unanimous except for a rule that will require prior approval of a judge before a foreclosure sale can be canceled. Justices Charles Canady and Ricky Polston dissented.

Last-minute cancelations have needlessly delayed other sales, again clogging the system, Romance said.

The Bankers Association did not object to that provision, but DiMarco said borrowers and lenders often cannot reach a settlement until just before the sale date.

“It’s the last chance and people get more serious at the last chance,” he said.

BANK OWNED FORECLOSURE OF THE DAY

2010-02-12T12:03:00.000-05:00

Wellington, FL

Single Family Home

Huge home for this price! Built 2005, 6 bedrooms, 2 baths, 4353 square feet under air. Needs appliances and minor cosmetic work. Homeowner's association fees only $250 per month. Community offers pool, clubhouse, sauna, tennis, basketball, game room and more. ID: FB3810.

Last sold 2006 for $625,000 - Bank asking only $299,000.

Andrea DiRico & Peggy Berkoff

Foreclosure & Short Sale Experts - The "Foreclosure Gurus"
North County Properties
19510 US Highway 1
Tequesta, FL 33469
561-427-0470 office
561-427-0522 fax
http://www.ncpflorida.com/

Peggy 561-301-2243 cell
PBerkoff@NCPflorida.com

Andrea 561-543-8715 cell
ADiRico@NCPflorida.com

BANK OWNED FORECLOSURE OF THE DAY

2009-12-18T14:32:00.001-05:00

Royal Palm Beach, FL.

Two story single family home, 4 bedrooms, 2.5 baths, 2 car garage, 2267 square feet under air. Tiled floors, spa tub in master bath. Built 2003, concrete block construction, nice preserve and wooded views. Homeowner's association fees only $275/mo, covers lawn care.
ID: FB3791

Final Judgment $318,465. Asking price $205,000.

***Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours.

If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470 (Peggy or Andrea).

BANK OWNED FORECLOSURE OF THE DAY

2009-12-16T17:04:00.000-05:00

Boynton Beach, FL.

Magnificent two-story 4 bedroom, 3 bath home, with 2 car garage, 2978 square feet under air Concrete block construction, knockdown walls, tiled counters, tiled living areas, needs very minor TLC, built 2004. Gated community offers pool, playground and more. Homeowner's association fees only $150/mo.

***Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours.

If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470 (Peggy or Andrea). ID: FB3790

2009-12-14T16:33:00.000-05:00

Palm City, FL - Single Family Home

Beautiful pool home with great view of the pond & golf course. 4 bedrooms, 4.5 baths, 3 car garage, 4806 square feet under air. Large stainless steel kitchen with wine cooler, formal living and dining rooms with fireplace. Gated community allows pets. ID: FB3788

Last sold 2006 $1,139,000. Asking price $661,400.

Follow us on Twitter, or join our Facebook friends network, and be sure to tell your friends about us. Be the first to get hot foreclosure properties fresh on the market, often even BEFORE they go out to the general public.Please be sure to forward this email to your friends who follow foreclosures and short sales.

House kills mortgage relief in Wall Street bill

2009-12-14T13:38:00.002-05:00

WASHINGTON – Dec. 14, 2009 – The House has rejected an effort to expand a Wall Street regulation bill with mortgage relief that would let debt-ridden homeowners reduce their payments in bankruptcy court. The vote was 241-188 to reject.

The provision would have revived a previous bill that passed the House but later failed in the Senate.

Democrats hoped that by inserting the provision in the regulatory legislation they would have had another opportunity to make it law. Aiding homeowners through bankruptcy had been a key feature of President Barack Obama’s foreclosure fighting proposal, but the president did not push for it.

Banks and credit unions have lobbied against the bankruptcy measure. They say it would force a flood of bankruptcy filings and ultimately drive up mortgage rates.

Federal help may be on way for homeowners with defective Chinese drywall

2009-12-14T13:36:00.000-05:00

WASHINGTON – Dec. 14, 2009 – The U.S. Department of Housing and Urban Development (HUD) will soon issue guidelines on how homeowners with defective drywall can apply for federal money, according to a letter sent to U.S. Sen. Bill Nelson of Florida.

Department Secretary Shaun Donovan had previously suggested during a trip to Florida that homeowners may be able to find funding under the Community Development Block Grant program.

That program is geared toward helping communities avoid blight by aiding low-income households or areas affected by natural disasters.

However, because the defective drywall problem is unprecedented, affected homeowners who have tried to apply for one of the grants have so far often been met with blank stares. In addition, the grants are generally only given to households below a certain income level, furthering the confusion over whether many of the affected homes in Palm Beach County would be eligible.

However, it appears that the housing department will soon be explaining how affected homeowners may be able to get federal assistance for their tainted drywall problems.

“The guidance will provide details about the eligible activities relating to drywall remediation, and the ways in which (block grant) funds can be used to benefit families with various income levels,” Donovan wrote to Nelson in a letter dated Monday.

“It is my expectation that this guidance will be valuable in helping affected communities and homeowners determine how best to respond to this set of issues,” he continued.

The federal government has received 2,276 complaints of defective drywall from homeowners in 32 states, the District of Columbia and Puerto Rico. More than two-thirds of those complaints are from homeowners in Florida.

The defective drywall gives off a sulfuric gas that is thought to corrode metal components in homes and is blamed by many for health problems. Most of the defective drywall appears to be Chinese-made, although some homeowners have complained of the same problems with domestic wallboard.

ATTENTION BUILDERS AND CONTRACTORS

2009-12-08T16:22:00.000-05:00

Delray Beach, FL.

This property is not a foreclosure but too good a deal not to send out. Huge 6 bedroom, 5 bath lakefront estate home with 3 car garage, infinity pool, 5564 sq ft under air. Former model on huge 1/3 acre cul-de-sac lot with circular driveway. Gated community. Fire damage created this incredible opportunity for the right buyer.

Previously sold in 2006 for $1,450,000. Asking price $249,900.

***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. ID: FB3784

BANK OWNED #FORECLOSURE OF THE DAY

2009-12-07T15:40:00.002-05:00

Lake Worth, FL

Large 3 bedroom, 3 bath home with 2 car attached garage, 2696 square feet under air, built 2003. Almost 1/4 acre lot. A HomeSteps property, up to 3.5% closing costs paid for owner-occupied sales with financing (or up to 1% for owner-occupied cash sales). Homeowner's association fees only $180/mo, includes lawn care and pest control. Needs appliances.

This model sold during the boom for $420,000-$490,000. Bank asking only $259,000.

***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. ID: FB3783

FTC sues Palm Beach Gardens mortgage modification business; operations halted

2009-11-25T16:14:00.001-05:00

FTC sues Palm Beach Gardens mortgage modification business; operations halted

Posted using ShareThis

New-home sales rise to highest level in a year

2009-11-25T12:06:00.000-05:00

Analyst: 6.2 percent jump fueled entirely by strength in Southern markets
Sales of new homes rose last month to the highest level in more than a year as strong activity in the U.S. South offset weakness in the rest of the country.

The Commerce Department said Wednesday that sales rose 6.2 percent to a seasonally adjusted annual rate of 430,000 from an upwardly revised 405,000 in September. Economists surveyed by Thomson Reuters had expected a pace of 410,000.

There were 239,000 new homes for sale at the end of October, the lowest inventory level in nearly four decades. At the current sales pace, that's a 6.7 months of supply, down from last winter's peak of more than a year.

"If you're looking for a sign that builders will need to start swinging their hammers again soon, this is it," wrote Mike Larson, real estate analyst at Weiss Research.

The report tallies signed contracts to buy homes, rather than completed sales. Home shoppers in October were acting before lawmakers decided to extend a tax credit for first-time buyers and expand it to some existing homeowners. The credit now covers contracts signed by April 30, and analysts expect it to further the housing recovery in the coming months.

"It's all thanks to the government," said Jennifer Lee, an economist at BMO Capital Markets. Sales are up 31 percent from the bottom in January, but down 69 percent from their peak in July 2005.

The surge in sales was driven entirely by a 23 percent increase in the South. Sales fell about 5 percent in the West and Northeast, and fell 20 percent in the Midwest.

Despite the lack of certainty about the tax credit that buyers faced in October, sales were up 5.1 percent from a year ago, the first yearly increase since November 2005.

The median sales price of $212,200 was almost even with $213,200 a year earlier, but up almost 1 percent from September's level of $210,700.
Last month, Ryder Homes of Nevada Inc. resumed construction on houses at two of its communities around Reno. "We're finding people aren't coming in willing to wait six months," said Rob Dunbar, Ryder's land development manager.
The resale market is also strong. the National Association of Realtors said Monday home resales rose 10 percent from September to October, the biggest monthly increase in a decade. Along with the tax credit, buyers are being attracted by low prices and mortgage rates.

Lawyer’s foreclosure defense of ‘quiet title’ faces tests

2009-11-24T09:41:00.002-05:00

“The note is often produced at some point in the litigation, but the real problem is, how did they get it? When did they get it? And did the transfer of ownership comport with federal and Florida law for the transfer of such negotiable instruments?”

In cases that are dismissed based on these arguments, foreclosure defense attorneys said lenders aren’t as eager to re-file the case.

The best way to smoke out the REAL LENDER is by filing a lawsuit seeking to quiet title. This has already been done successfully in dozens of cases in many states. We are tracking what people are reporting. In almost ALL cases where this was the central focus of the attack against the pretender lender, the homeowner was awarded quiet title by DEFAULT. (The other side never answered).

TRANSLATION: The Court (Judge) entered a Final Judgment declaring that the homeowner owned his/her/their house free and clear of all encumbrances. The claims of the pretender lender were thrown out and the homeowner was left with his house as an asset, not alibaility. The homeowner was no longer subject to foreclosure or ANY claim on the note or mortgage that was signed at “closing.”

Like the NY York decisions recently reported quiet title is another way to invalidate the mortgage and extinguish the note and any right to enforce it.

CAUTION: “PRODUCE THE NOTE: It’s a valid strategy but it offends the sensibilities of many judges. If THAT is the focus of your attack or defense, then you are rolling the dice on ONE thing when there are many arrows in your quiver. Many Judges have held, contrary to the rules of evidence, that merely being unable to produce the original note is NOT a reason to stop the foreclosure. Legally it can be argued this is wrong. I think it is flawed legal reasoning. But the other side is that “just because the “lender” was sloppy in its record keeping does not mean the homeowner should get away scott free. ” Actually, legally, I think it DOES mean that and that Charney is right. But I think you need to couple your argument with why this is a matter of substance and not just procedure or legal sleight of hand.

The reason why many Judges HAVE applied the evidentiary rules regarding production of the note is that there could be someone else holding it with a greater right to enforce it than the pretender lender who is trying to foreclose. And in fact (with the help of a forensic analyst to assist as an expert) the securitization process multiple parties who COULD have the actual original note in their position and/or who COULD be parties with a superior legal right to be paid on the note —because THEY are the ones who actually advanced the money for the loan or they advanced the money to third parties who advanced the money to fund the loan.

Lawyer’s foreclosure defense of ‘quiet title’ faces tests

The house at 12920 Mt. Pleasant Road is a modest ranch-style home. The man in it is John McCampbell, a 61-year-old car mechanic who lives with his two children and fiancée.

He took out a $156,000 mortgage from the now-defunct Washington Mutual, which foreclosed on his home in 2004 after he lost his job. But when the lender was unable to produce the deed to prove it had a right to foreclose, McCampbell beat the foreclosure and remains there today.

Now McCampbell and his Fort Caroline home are poised to make history in foreclosure defense with an experimental legal approach that would wipe out his mortgage debt and hand him a clean deed. It’s called a “quiet title,” where the court establishes a party’s title to the property to remove or “quiet” any challenges or claims to it.

It sounds like an impossible endeavour. But April Charney, a Jacksonville Area Legal Aid attorney, has spent the past four years teaching lawyers across the country the legal framework of this foreclosure defense. With an average of 3,000 foreclosures filed every month in Jacksonville alone, there’s no shortage of lawyers tapping her expertise.

“It’s an exceptionally layered, nuanced practice of law, but right now a very productive one,” Charney said recently after her latest sold-out seminar in Jacksonville.

Bankers counter that Charney is taking advantage of a legal technicality.

Anthony DiMarco, executive vice president of governmental affairs for the Florida Bankers Association, said errors on assignments are not tantamount to a person not being responsible for their mortgage.

“When you are doing lots and lots of anything — and there were lots of these loans written — there are human beings involved and there were mistakes along the way just like anything else,” DiMarco said.

‘Show me the note’

Before asking the court to quiet a title, a foreclosure must be dormant for five years. That brings Charney to a critical juncture in many of her early cases where the five years is at or near its expiration. She’ll be seeking multiple quiet titles in 2010, including one for McCampbell, her client.

Charney is a national authority on foreclosure defense, and a driving force behind what is often called the “show me the note” movement making its way through jurisdictions across the country. The strategy is crippling lenders’ ability to foreclose on homes when they are not able to produce the note as evidence of their right to bring a foreclosure.

At the crux of her argument is the very loan itself, securitized loans that became commonplace in the late 1990s, and quickly dominated mortgage lending practice.

Mortgage securitization is the process of bundling home loans into securities and selling them to investors. Mortgage servicers collect monthly payments and distribute them to securities investors.

But Charney said the critical error was that the originating lenders systematically pledged the loans, and didn’t actually transfer them to the trusts that are supposed to hold them and issue the securities. The result is a paper trail that goes nowhere, and a reasonably successful legal strategy.

‘A red herring’

A secondary snag in lenders’ ability to obtain a foreclosure is the physical note, or lack thereof. The Florida Bankers Association testified to the Supreme Court task force on residential mortgage foreclosure that originals were “deliberately eliminated to avoid confusion” when entered into an electronic format. The problem with that is the court requires an original.

Ownership transfers after the foreclosure has been assigned, copies of notes and false signatures have been argued to amount to fraud.

“The ‘produce the note’ argument is really a red herring,” said Chip Parker, a Jacksonville foreclosure defense attorney. “The note is often produced at some point in the litigation, but the real problem is, how did they get it? When did they get it? And did the transfer of ownership comport with federal and Florida law for the transfer of such negotiable instruments?”

In cases that are dismissed based on these arguments, foreclosure defense attorneys said lenders aren’t as eager to re-file the case.

“There is some sloppiness, and what used to be tolerated by the courts is no longer being tolerated because the judges are starting to see the effect of sloppy pleading,” Parker said.

A slippery slope?

Lenders bringing foreclosures and attorneys defending them both claim to be on the side of their communities. Lawyers said the best thing for neighborhood stability and property values is to keep people in their homes. Bankers have a different approach.

“The best thing is to get through the foreclosure as quickly as you can,” DiMarco said. “The faster you can get through a foreclosure process, the faster we can get it sold and in the hands of someone who can get to be a contributing member of the community.”

DiMarco maintained that lenders are doing everything they can to work with homeowners and avoid a money-losing foreclosure, but took notice of a new phenomenon in the housing market — strategic foreclosures on the part of consumers. With courts backed up, mortgages upside down and banks more timid about foreclosing, some consumers who can pay are opting not to.

Lawyers don’t advise those who can afford to make their mortgage payments to stop in hopes they can get a free house out of it, and aren’t convinced that their tactics could provide an incentive for people to intentionally enter foreclosure. They point out that these are long, hard-fought battles that destroy credit.

Lawyers recognize that there must be some end other than a country full of ownerless and free homes. Charney is fiercely advocating a federal intervention, which bankers similarly see as the only reasonable solution.

“I had the vice president of a big mortgage company ask me, ‘What you’re doing here — do you understand what’s going to happen? You’re going to destroy the country. And if you don’t stop, we’re just going to go to Congress and get the laws changed.’ ” said Max Gardner III, a Shelby, N.C.-based bankruptcy attorney who also teaches foreclosure defense. “And my response is, ‘We have some changes we’d like to make, too.’ ”

Jacksonville Business Journal – by Kimberly Morrison
April Charney of Jacksonville Area Legal Aid.

BANK OWNED FORECLOSURE OF THE DAY

2009-11-20T16:11:00.003-05:00

Stuart, FL Riverfront Condo

Gorgeous condo, 2 bedrooms, 2.5 baths, 1686 square feet under air with great views of the St Lucie River. Travertine flooring throughout, granite kitchen, beautiful built-ins. Needs appliances. Final Judgment $657,713. Bank asking only $215,000. ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. ID: FB3774

BANK OWNED FORECLOSURE OF THE DAY

2009-11-18T16:14:00.002-05:00

Boca Raton, FL
Deep water home with 179' on the Intracoastal and dockage. 5 BR, 6.5 BA, 3 car garage and pool. 7608 sq ft under air. Located on cul-de-sac point lot, marble flooring, gourmet kitchen, 1st fl master, media room, built-in bar and wine cellar. Huge coquina patio and pool/spa. 2 rm staff quarters with private entry and full house generator. Manned/gated community. Assessed for tax purposes for $3,005,311. Bank asking only $2,299,000. ID: FB3772

Home construction at lowest point in 6 months

2009-11-18T14:24:00.002-05:00

Annual rate of construction falls 10.6% in October in a drop that surprises economists.

Home builders initiated construction of far fewer new homes in October than the month before, a big and unexpected drop for the struggling industry, according to a government report issued Wednesday.

Homebuilders began construction at an annual rate of 529,000 new homes during the month, 10.6% below the revised September rate of 592,000 and 30.7% below the 763,000 rate during October 2008.

It was the lowest level of housing starts since April, when the annual rate was 479,000. A panel of industry observers compiled by Briefing.com had forecast housing starts of 600,000 during the month. It was the second month in a row of dashed housing start expectations.

"The numbers stink," said real estate analyst Mike Larson of Weiss Research. "They're negative across the board." That weakness included the number of building permits issued in October, which fell to seasonally adjusted annual rate of 552,000. That was 4% below the revised September rate of 575,000 and 24.3% below the October 2008 estimate of 729,000.

The slowdown in construction means that there are many fewer new homes for sale, about 251,000 in all. That's the smallest inventory since 1983, according to Larson. "The new home market, which was dramatically oversupplied during the boom, is now dramatically undersupplied," he said.

Part of the reason for the lack of building activity is high foreclosure rates. Those discourage builders, according to Larson. Many of the foreclosures compete directly with new homes for buyers. "That's one reason why builders are not being aggressive," he said. "There are a lot of nearly new homes that banks are holding and trying to sell. That keeps the new home market relatively weak."

Since the tax credit was reinstated, October may represent a deep valley in new home start stats. By then, the credit had ceased to be of value to builders, according to David Crowe, the chief economist for the National Association of Homebuilders.

"By October, there was no way to start a home and have time to finish it and sell it before the credit ended," he said. Crowe expects to see starts to begin increasing again with the tax credit extension. "November figures should reflect some renewed builder confidence," he said.

New home construction forms a big part of the nation's economy. When people buy new homes, they also purchase many products to fill them. Fewer new homes being built may be a bad sign that the impact of the government's economic stimulus package may be limited.

NEW YORK (CNNMoney.com)

BANK OWNED #FORECLOSURE OF THE DAY

2009-11-17T16:27:00.003-05:00

Royal Palm Beach, FL. Single story home, 4 bedrooms, 2 baths, 2 car garage in manned/gated community. Built 2003, 2113 sq ft under air. Large family room, open kitchen, spacious master bedroom. Community offers pool, tennis, clubhouse, basketball, fitness room and game room. These units sold in the height of the market for $360,000-$475,000. Bank asking only $190,000! ID: FB3771

BANK OWNED #FORECLOSURE OF THE DAY

2009-11-16T16:15:00.003-05:00

Delray Beach,FL Condo

Spacious 2 bedroom, 2 bath corner condo unit on the first floor. Split floor plan, 1048 sq ft under air, eat-in kitchen, enclosed porch, washer/dryer in unit. This is a FannieMae HomePath property. Purchase for as little as 3% down. Last sold 2005 $146,000. Bank asking only $49,900! ID: FB3770

***Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470.

First-time homebuyers leading market back

2009-11-13T16:49:00.002-05:00

Housing recovery is being propelled by affordability, bringing entry-level buyers back into the market.

Propelled by the first-time homebuyers tax credit, nearly half of home sales are now being made by first-time purchasers, according to an industry report released Friday.

In fact, 47% of all Americans who purchased homes this year had not owned one during the previous three years, according to a press release Friday from the National Association of Realtors (NAR). That was up from 41% of sales in 2008 and 36% in 2006.

The tax credit boosted markets by giving first-time buyers a credit of up to $8,000 they could deduct from their income taxes. The credit is fully refundable: Even a buyer who pays less than $8,000 in income tax gets the full amount of the credit back. The credit was recently extended through the middle of 2010 and expanded to include many existing homeowners. That has the industry buzzing.

"The credit is working better than first projected -- it now looks like we'll have 2.3 to 2.4 million first-time buyers this year," said Lawrence Yun, chief economist for NAR. "With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3% and 5% in 2010."

NAR forecasts that existing-home sales will total slightly over 5 million in 2009, a 2% increase compared with 2008. Next year, they predict a gain of 13.6% to 5.69 million units. That should draw down inventory and prop up home prices, according to Yun, but, he cautioned: "Risks, such as unemployment, remain."

Critics of the tax credit call it a poorly targeted method of boosting sales. The credit added, by nearly the most positive evaluations -- including NAR's -- fewer than 400,000 sales to the total this year, about 20% of all first-time purchases. Since all first-timers get the credit, whether it persuaded them to buy or not, that would mean about $40,000 was spent by the government for every extra sale, critics say.

Most affordable housing in years

Indeed, many in the industry trace the improvement in the housing market to much better affordability, rather than the tax credit. Not only have home prices fallen more than 30% from their peak, according to the S&P/Case-Shiller Home Price index, but mortgage rates have remained extremely low all year, keeping monthly payments low.

Most sales have been of existing homes. New home sales, as well as new home construction, have remained mired in the doldrums.

NAR predicts total new home sales will total a mere 397,000 this year, rising to 549,000 in 2010. During the housing boom, new home sales were far higher, more than 1.35 million in 2005, for example. While new home sales are still very low, the inventory of new homes for sale has been dropping. That's because very few new homes are being built. Existing home inventory has also fallen a bit.

"We've seen a steady downtrend in housing inventory for well over a year," said Yun. Any home price rise will also have a healthy impact on the foreclosure plague. Falling prices are a major contributing factor driving foreclosures. As home values fall, homeowners are less able and less likely to continue to make monthly payments.

1 in 5 homes still underwater

Mortgage borrowers often fall behind because there's no home equity cushion to tap should they run into unexpected expenses. Too, when home values really plummet and owners fall way underwater, owing far more than their home is worth, it sometimes makes good financial sense to give up trying to pay for the home.

Under those conditions, some homeowners simply walk away.

NEW YORK (CNNMoney.com)

BANK OWNED #FORECLOSURE OF THE DAY

2009-11-13T15:21:00.002-05:00

Gorgeous newer 3-story townhome on lake in gated Hobe Sound community.

3 bedrooms, 3 baths, 2050 square feet under air, 1 car attached garage, built 2006. Tiled living areas, stainless/granite kitchen. Cash only. Last sold 2006 $389,900. Bank asking only $154,900! ID: FB3769

Foreclosures: 'Tide may be turning'

2009-11-12T10:20:00.001-05:00

The number of foreclosures inched down in October, the third consecutive month of declines.
Filings still higher than a year ago.

Could the foreclosure plague be ending?

Foreclosure filings were down 3% in October, the third consecutive month-over-month dip, according to RealtyTrac, the online seller of foreclosed homes. To be sure, foreclosure rates are still elevated from a year ago: They're up 18% compared with October 2008. But the month-over-month decrease followed a 4% drop in filings during September and a 1% fall in August.

"Three consecutive monthly declines is unprecedented for our report, and, on first blush, an indication that the foreclosure tide may be turning," said James Saccacio, RealtyTrac's CEO, in a prepared statement. He cautioned, however, that three consecutive singles does not constitute a hitting streak. So there still may be dark days ahead. "The fundamental forces driving foreclosure activity in this housing downturn -- high-risk mortgages, negative equity, and unemployment -- continue to loom over any nascent recovery," he said. "And despite all the efforts and resources directed at helping homeowners avoid foreclosure, we continue to see foreclosure activity levels that are substantially higher than a year ago in most states."

Broad economic distress, such as the rising unemployment rate, has RealtyTrac spokesman Rick Sharga thinking that declining foreclosures may be artificial rather than a real trend. "Processing delays and legislative actions are slowing down foreclosures," not actual improvement in the market, he said. The slowdowns include banks taking time to judge whether some loans are eligible for the Making Home Affordable program, President Obama's foreclosure-prevention initiative that was passed last spring. And new state-level regulations have also lowered foreclosure statistics.

One such rule that took effect July 1 in Nevada allows homeowners who receive notices of default to demand mandatory mediation with their lenders. As a result, "There was a 27% drop in filings in October in Las Vegas," said Sharga. "That hasn't happened in, like, forever." Those factors may have especially delayed bank repossessions. RealtyTrac reported 77,077 REOs in October, down 12.2% compared to September, when nearly 88,000 homes were lost. For the year, there have been a total of 700,929 properties taken back by banks.

Home prices on the increase

One positive trend is that home prices have recorded modest gains over the past few months. As a result, fewer mortgage borrowers owe more than their homes are worth. And that's good news for the foreclosure rate. Foreclosures require a double trigger, said Sharga. The first is that mortgage borrowers must have experienced a financial setback, such as medical bills, divorce, unemployment and the like. The second trigger is owing more on the mortgage than the home is worth. Millions of borrowers are in that position: More than 20% of borrowers are underwater, according to Zillow. Most will continue to pay off their mortgages.

However, if a family member loses their job or someone gets sick or the loan resets to a much higher interest rate, that's when the home may be lost. Homeowners with positive home equity are in less jeopardy. Even if they run into unexpected expenses or periods of unemployment, they can tap their home value, via a home equity loan or cash-out refinance, to tide them over.

The usual suspects The "sand states," Nevada, California, Florida and Arizona, continued to suffer the worst foreclosure problems. Nevada had the highest foreclosure rate in the nation, one filing for every 80 housing units. In second place was California, where filings dipped 1% to one filing for every 156 households. The state, by far the most heavily populated, had more filings, 85,420, than any other. Florida, with 51,911 filings, had the third highest foreclosure rate, one for every 168 households. Arizona was fourth with one for every 200.

Idaho has moved up the list of worst foreclosure states this year; it had a rate of one filing for every 255 households during October, more than double its rate in October 2008 and good for fifth place among states. Other huge rate increases were recorded by New Mexico, up 371% year-over-year; Hawaii, which recorded a 134% spike; Wisconsin, up 128%; and Maryland, where filings jumped 124%. Las Vegas is still the worst hit metro area. More than one in every 68 households received a filing during October, fives times the national average.

By Les Christie, CNNMoney.com staff writer November 12, 2009: 3:47 AM ET NEW YORK (CNNMoney.com)

BANK OWNED FORECLOSURE OF THE DAY

2009-11-11T16:01:00.004-05:00

Palm Beach Gardens, FL near PGA National area.
Large 3 bedroom, 2.5 bath single family home with 2 car garage and 2450 sq ft under air. Granite kitchen, tiled living areas, large master bedroom. Gated community, CBS construction, built 2005. Last sold 2005 for $595,000. Bank asking only $346,900! ID: FB3767

1st Time & Repeat Buyer #Tax Credit – How it Works

2009-11-11T14:41:00.003-05:00

President Obama signed H.R. 3548 on Nov 6, enacting into law an extension, and adjustment, of the $8,000 tax credit for first-time buyers. Among other things, the extension adds money for certain move-up buyers; creates one deadline for signing a contract and a later deadline for closing; changes income requirements; and limits a purchased home’s cost to $800,000.

Florida residents enjoy two additional advantages. The Florida Homebuyer Opportunity Program (FHOP), created by the Florida Legislature earlier this year, still has approximately $28 million that first-time homebuyers can access and use toward their down payment. And move-up buyers have the ability to ‘port’ their current property tax savings to a new home.

First-time homebuyers

Most details for first-time homebuyers mirror the rules currently in existence. The maximum tax credit remains $8,000 ($4,000 for married individuals filing separately), and anyone who has not owned a home within three years is considered a “first-time buyer.”

A purchase must be under contract by April 30, 2010.
A purchase under contract by April 30 must close no later than June 30, 2010.
After Dec. 1, 2009, income limits rise to $125,000 for singles and $225,000 for married couples; up from limits effective through Nov. 30 of $75,000 for singles and $150,000 for married couples. The tax credit phases out incrementally at each $20,000 increase in income.
Effective immediately: The maximum home value purchased cannot exceed $800,000. Prior to the law being signed, first-time homebuyers had no limitation on a home’s cost.

Current homeowner tax credit

An existing homeowner who purchases a home may now claim a tax credit of up to $6,500. To qualify, that owner must have owned and used the same residence as a principal residence for any consecutive five-year period in the previous eight years.

This new tax credit is effective immediately. Eligible homebuyers do not have to wait until Dec. 1 to close in order to qualify.
Personal income limits, maximum home value, and contract/closing deadlines are the same as those for first-time homebuyers.

Long-time Florida homeowners who enjoy discounted property taxes resulting from the state’s Save Our Homes amendment qualify for property tax portability

Florida Homebuyer Opportunity Program (FHOP)

Under FHOP, first-time Florida homebuyers can obtain interest-free bridge loans to access their federal tax credit before they complete a home purchase, enabling them to use that money upfront for down payment and closing costs. Once buyers submit their returns to the IRS and receive their tax credit money, they repay their loans to the state.

While funded by the state, the money is distributed through the city and county housing offices that operate the State Housing Initiatives Partnership (SHIP) program. There is no standardized program, and each local agency may operate under different rules for distribution. For more information, buyers should contact their local SHIP office.

To find a local SHIP office, go to:

http://apps.floridahousing.org/StandAlone/FHFC_ECM/AppPage_SHIPLGContacts.aspx.

Additional changes

The tax credit extension includes other new rules, such as:

The new law also impacts dependent purchases of homes, which weren’t addressed under the old rules.
The new law requires a buyer to attach documentation about the home purchase to his or her income tax return. An audit found that some buyers are claiming the tax credit when they don’t deserve it, and investigators continue to seek out fraud. To minimize tax abuse going forward, buyers won’t receive the credit without submitting proof to the Internal Revenue Service (IRS).

The homebuyer tax credit is collected as part of the normal income tax process. As a credit, it’s calculated separately from an individual’s income tax, and paid regardless of taxes owed or withheld from income. As always, however, only a tax planner can render specific advice to anyone seeking the credit. For more information on the credit, contact a tax planner or visit the IRS website at: http://www.irs.gov/.

BANK OWNED #FORECLOSURE OF THE DAY

2009-11-10T15:05:00.005-05:00

Beautiful Royal Palm Beach, FL single family home.

5 bedrooms, 2 baths, 2 car garage, 2751 sq ft under air. Large diagonal tile, granite kitchen, cherry cabinets, covered brick paver patio. Pet friendly community offers pool/spa, tennis, basketball, fitness center, clubhouse and picnic area. Final judgment $550,224. Bank asking only $210,900! ID: FB3766

***Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470.

Peggy Berkoff & Andrea DiRico

Foreclosure & Short Sale Experts – The “Foreclosure Gurus”

BANK OWNED FORECLOSURE OF THE DAY

2009-11-05T15:26:00.003-05:00

Ocean/Intracoastal Condo on Singer Island, FL

Beautiful building steps from the ocean. 2 bedroom, 2 bath condo, 1432 sq ft under air. Water views. Needs appliances and a good handyman. Last sold 2005 for $500,000. Bank asking only $249,900! ID: FB3764

Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470.

Follow us on Twitter, or join our Facebook friends network, and be sure to tell your friends about us. Be the first to get hot foreclosure properties fresh on the market, often even BEFORE they go out to the general public.Please be sure to forward this email to your friends who follow foreclosures and short sales.

Peggy Berkoff & Andrea DiRico
Foreclosure & Short Sale Experts – The “Foreclosure Gurus”
North County Properties

Senate votes to renew tax credit for first-time home buyers

2009-11-05T15:08:00.003-05:00

The Senate voted Wednesday to renew the government's $8,000 tax credit for first-time home buyers through the first six months of next year as part of a broader bill designed to extend unemployment benefits.

For the first time, the tax credit program would also enable many homeowners who buy a new primary residence to receive a $6,500 refund.

The measure was attached to a bill that would provide 20 weeks of unemployment benefits in more than two dozen states with jobless rates above 8.5 percent and up to 14 weeks elsewhere. Another provision in the bill would allow businesses that had operating losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years.

The bill, which passed 98 to 0, should reach the House floor by Thursday, House Majority Leader Steny H. Hoyer (D-Md.) said in a statement. His office said the legislation would then go to the White House for the president's signature.

The Obama administration has previously supported extending the $8,000 tax credit, and without congressional action the program would end Nov. 30.

Under the bill, first-time home buyers would receive the $8,000 tax credit if they sign a contract by April 30 and close on it by June 30. The plan would also make those who buy a new primary residence eligible for the $6,500 credit if they owned their current home for at least five consecutive years in the previous eight years.

But the measure limits the purchase price of the home to $800,000. It also imposes income caps so that people who make more than $125,000 annually and couples who make more than $225,000 would not be eligible for the program, which is estimated to cost $10 billion.

Sen. Johnny Isakson (R-Ga.), a longtime advocate of the tax credit, praised passage of the bill in his chamber but said the extension would be the last one. "Tax credits like this only work by creating the sense of urgency to take advantage of them," Isakson said in a statement.

The tax credit and the broader bill in which it is included are part of a series of Democratic-led initiatives aimed at helping the economy and people who have lost their jobs.

The unemployment benefits of more than 1 million people would lapse without this extension, according to the National Employment Law Project, a nonpartisan group that tracks the issue. More than 15 million Americans are unemployed, more than a third of them for longer than six months.

Although the legislation gained wide bipartisan support, it had been mired in bickering for weeks as Republicans tried to attach amendments that Democrats opposed. Party leaders from both sides voiced support for the core measures, including the tax credit.

Supporters of the tax credit, including the real estate industry, say it has energized home buyers and helped increase sales. But critics say the program is too expensive and has attracted mainly people who were going to buy a home anyway.

In the Senate's measure, taxpayers would be able to claim the credit on their 2009 income tax return for purchases made in 2010.

By Dina ElBoghdady
Washington Post Staff Writer
Thursday, November 5, 2009

BANK OWNED FORECLOSURE OF THE DAY

2009-11-04T16:11:00.003-05:00

Golf/canal view home in Lake Worth, FL.

2 bedroom, 2 bath, 2 car garage, 1692 sq ft under air. Granite kitchen, vaulted ceilings, tile roof, tile floors, screened patio overlooking canal and golf course. Easily converted to 3BR. Manned/gated community. Last sold 2005 for $305,000. Bank asking only $128,700! ID: FB3763

Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470.

Peggy Berkoff & Andrea DiRico

Foreclosure & Short Sale Experts – The “Foreclosure Gurus”

North County Properties

19510 US Highway 1

Tequesta, FL 33469

561-427-0470 office

561-427-0522 fax

Peggy

561-301-2243 cell

pberkoff@ncpflorida.com

Andrea

561-543-8715 cell

adirico@ncpflorida.com

#Chinese Drywall - What we know so far

2009-11-04T11:18:00.003-05:00

The defective drywall issue was first publicly reported almost a year ago with stories of sulfuric odors and metal corrosion in homes in Southwest Florida built with Chinese drywall. Now, 1,897 residents in 30 states, the District of Columbia and Puerto Rico have submitted complaints about defective drywall to the U.S. Consumer Product Safety Commission.

Because the issue is something experts have never come up against before, answers on what to do next have been slow in coming.

Federal studies have yet to make a definitive link between the drywall and the corrosion or health problems, although studies have found that Chinese drywall emits elevated levels of volatile sulfur gases and contains higher levels of strontium than domestic wallboard.

Studies have not shown these chemicals to be at toxic levels. However, homeowners have complained of problems such as headaches, nosebleeds, respiratory infections, eye and throat irritation and stuffiness.

A study released last week by the U.S. Consumer Product Safety Commission and other agencies suggests that homeowners may be experiencing 'neurogenic inflammation' from non-toxic levels of chemicals like sulfur compounds, although it did not say whether those chemicals could be from the drywall or other things in the home.

Certain Chinese-made wallboard installed in thousands of Florida homes has been found to emit sulfuric odors and gases responsible for corroding electrical wiring, air conditioning components, bathroom fixtures such as toilet handles and even jewelry.

Strontium sulfide, a material that can emit corrosive gases in moist air, was found at trace levels in testing of Chinese-made drywall, the Florida Department of Health said.

Gas emitted from defective drywall corrodes copper wiring, turning it black, some Florida homeowners say.

The Florida Department of Health said complaints generally involve homes built between 2004 and 2007, around the time a building boom and post-hurricane reconstruction caused a U.S. drywall shortage and spurred builders to use imports.

The latest testing, commissioned by the Florida Health Department and conducted by private laboratory Unified Engineering Inc. of Illinois, found that three samples of what the department believes is Chinese-manufactured drywall had "several physical and chemical differences" from a fourth, U.S.-manufactured drywall sample, Krause said.

The samples suspected to be from China contained trace levels of strontium sulfide, and the U.S.-made product did not, according to Unified's report.

Strontium sulfide can react in moist air to form hydrogen sulfide -- a gas that smells like rotten eggs, according to the Web site of the National Oceanic and Atmospheric Administration.

Hydrogen sulfide is corrosive, according to a Web page of the Occupational Safety and Health Administration. Exposure to low levels of the gas "may cause irritation to the eyes, nose or throat ... [and] may also cause difficulty breathing for some asthmatics," according to the federal Agency for Toxic Substances and Disease Registry.

The Chinese-made drywall emitted a sulfurous odor when exposed to extreme heat in testing, while the U.S.-made product did not, according to Unified's report. However, the report doesn't conclude that the strontium sulfide contributed to the odor. "Because initial tests only detected small quantities of this substance, further tests are necessary to determine if it is the cause of odors and corrosive gases," Krause said.

Unified also found that the outer paper and core of two samples -- a piece of Chinese-made drywall and a piece of the U.S.-made drywall -- emitted trace levels of hydrogen sulfide and two other volatile, sulfur-containing gases when put into a chamber and exposed to 95 percent humidity.

One of the emitted gases was carbon disulfide, Unified's report said. Breathing it at low levels for long periods "may result in headaches, tiredness, trouble sleeping and slight changes in the nerves," according to the Web site of ATSDR, which is part of the U.S. Department of Health and Human Services.

The emission tests were useful in determining what the drywall may produce, but conclusions cannot be drawn about health risks, Krause said. That's in part because the concentrations of emissions captured in laboratory testing are not useful to determine what concentrations would be found in the much larger volume of air in homes, he added.

"We shouldn't interpret it for anything at this point," Krause said. "These are not exposure measurements."

The Unified test results showed that heat and humidity play a key role in getting the drywall to emit the odors.

"This may explain why the problem has developed in South Florida first, where hot and humid conditions prevail," Krause said.

A Unified test also showed that sulfide gases in a Florida home that contained Chinese-made drywall were the main reason that an air conditioner's copper tubing corroded, Krause said. The report did not say whether the gases came from the drywall.

Earlier testing by ENVIRON International, a private consulting firm hired by a Florida-based homebuilder, found that certain drywall manufactured in China was emitting sulfur gases capable of ruining copper coils in air-conditioning systems.

However, it said it found air samples in the homes showed no indication that health hazards existed.

The Consumer Product Safety Commission is "already sending additional experts from headquarters to Florida to further our investigation," commission spokesman Joe Martyak said.

BANK OWNED FORECLOSURE OF THE DAY

2009-11-03T15:54:00.005-05:00

Lakefront single family pool home in Lake Worth, FL.
5 bedroom, 3 bath, 3 car garage, 3094 sq ft under air. Granite kitchen, tile flooring in living areas, ground floor bedroom. Pets allowed. CBS built 2004. HOA fees only $235/month. Final judgment $529,898. Bank asking only $307,900! ID: FB3762

Home sales contracts rise for 8th straight month

2009-11-02T14:57:00.001-05:00

Real estate rally attributed to first-time homebuyer tax credit that expires at the end of November.

The number of signed sales contracts to buy homes rose in September for the eighth straight month, according to a real estate industry report released Monday.

The September Pending Home Sales Index from the National Association of Realtors (NAR) spiked 6.1% to 110.1, consolidating a 6.4% gain in August. It was the index's highest level since December 2006, when it stood at 112.8.

The leap was far better than expected. A panel of analysts surveyed by Briefing.com had forecast a 1.2% rise.

Analysts, including Lawrence Yun, NAR's chief economist, have traced much of the improvement to the government's first-time homebuyer tax credit program, which gives an up to $8,000 tax break to new homebuyers. It's estimated that between 200,000 and 400,000 additional sales will have been made because of the credit.

"What we're witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month," said Yun.

The credit lapses after Nov. 30, and the housing industry is bracing for a major turndown in sales if Congress fails to pass some kind of extension.

"Clearly, buyers were eager to get business done before the credit's November expiration," said Mike Larson, a real estate analyst for Weiss Research. "So I wouldn't be surprised to see some give back in pending sales over the next month or two."

Favorable long-term prospects

Any fall-off should only be temporary, however, according to Yun. Market conditions are just so favorable for buyers right now that sales should rebound quickly should they suffer through a hangover following the tax credit demise.

With home prices well off their highs and mortgage rates still extremely low, the cost of homeownership is well within the range for many Americans who are not homeowners today. There are, Yun estimates, about 3 million renters who are now financially well-qualified to buy a median-priced home.

"As long as buyers do not overstretch and stay well within their budget, a sizable pent-up demand can be tapped among financially qualified potential buyers," he said.

That will not translate into a new boom, however, according to Larson. "No explosion of pent-up demand will send markets to new heights," he said. "The economy is still not in fantastic shape."
Housing markets certainly do not seem to be out of the woods, but this latest release added to a modest winning streak of positive recent reports. Prices appear to have stabilized, with the S&P/Case-Shiller Home Price index up four months in a row and completed sales of existing homes at their highest level in two years.

Foreclosures, however, continue to plague many markets, adding to supplies on homes for sale, according to Yun.

"An excess of homes remains on the market despite recent improvements," he said. "Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline."

Increased pending sales are a forward-looking indicator since contract signings precede actual closings; they typically take place two to three months later. Although some contract signings fall through, a jump in signings in September usually means NAR statistics on December existing home sales will improve

NEW YORK (CNNMoney.com)

BANK OWNED FORECLOSURE OF THE DAY

2009-11-02T14:22:00.005-05:00

Beautiful 3 bedroom, 2 bath CBS home with 2 car garage in a great West Palm Beach neighborhood. Oversized .29 acre lot. 1660 sq ft under air. HOA fees only $25/year and HOA is voluntary. Open floor plan, big screen porch and wood floors throughout living area. This is a FannieMae HomePath property. Last sold 2005 for $400,000. Bank asking only $199,000! ID: FB3761

Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470. ed properties are very competitive - act immediately or risk losing out.

Follow us on Twitter, or join our Facebook friends network, and be sure to tell your friends about us. Be the first to get hot foreclosure properties fresh on the market, often even BEFORE they go out to the general public.

Please be sure to forward this email to your friends who follow foreclosures and short sales.

Best Regards,
Peggy Berkoff & Andrea DiRico
Foreclosure & Short Sale Experts – The “Foreclosure Gurus”
North County Properties
19510 US Highway 1
Tequesta, FL 33469
561-427-0470 office
561-427-0522 fax
Peggy 561-301-2243 cell
pberkoff@ncpflorida.com
Andrea 561-543-8715 cell
adirico@ncpflorida.com

BANK OWNED FORECLOSURE OF THE DAY

2009-10-30T15:10:00.002-04:00

Walk to the beach!
This 2BR/2BA 1st floor condo is located in Jupiter, FL's most popular beach community right across the street from the beach. Very spacious 1385 sq ft under air, huge utility room. These units sold for $465-580,000 in the height of the market. Bank asking only $279,900!

Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470. ed properties are very competitive - act immediately or risk losing out.

Follow us on Twitter, or join our Facebook friends network, and be sure to tell your friends about us. Be the first to get hot foreclosure properties fresh on the market, often even BEFORE they go out to the general public.

Please be sure to forward this email to your friends who follow foreclosures and short sales.

Best Regards,
Peggy Berkoff & Andrea DiRico
Foreclosure & Short Sale Experts – The “Foreclosure Gurus”
North County Properties
19510 US Highway 1
Tequesta, FL 33469
561-427-0470 office
561-427-0522 fax
Peggy 561-301-2243 cell
pberkoff@ncpflorida.com
Andrea 561-543-8715 cell
adirico@ncpflorida.com

Homeowner prevents foreclosure and wins home free and clear through "Produce the Note" strategy

2009-10-30T10:55:00.000-04:00

If Lenders Say ‘The Dog Ate Your Mortgage’

For decades, when troubled homeowners and banks battled over delinquent mortgages, it wasn’t a contest. Homes went into foreclosure, and lenders took control of the property.

On top of that, courts rubber-stamped the array of foreclosure charges that lenders heaped onto borrowers and took banks at their word when the lenders said they owned the mortgage notes underlying troubled properties.

In other words, with lenders in the driver’s seat, borrowers were run over, more often than not. Of course, errant borrowers hardly deserve sympathy from bankers or anyone else, and banks are well within their rights to try to protect their financial interests.

But if our current financial crisis has taught us anything, it is that many borrowers entered into mortgage agreements without a clear understanding of the debt they were incurring. And banks often lacked a clear understanding of whether all those borrowers could really repay their loans.

Even so, banks and borrowers still do battle over foreclosures on an unlevel playing field that exists in far too many courtrooms. But some judges are starting to scrutinize the rules-don’t-matter methods used by lenders and their lawyers in the recent foreclosure wave. On occasion, lenders are even getting slapped around a bit.

One surprising smackdown occurred on Oct. 9 in federal bankruptcy court in the Southern District of New York. Ruling that a lender, PHH Mortgage, hadn’t proved its claim to a delinquent borrower’s home in White Plains, Judge Robert D. Drain wiped out a $461,263 mortgage debt on the property. That’s right: the mortgage debt disappeared, via a court order.

So the ruling may put a new dynamic in play in the foreclosure mess: If the lender can’t come forward with proof of ownership, and judges don’t look kindly on that, then borrowers may have a stronger hand to play in court and, apparently, may even be able to stay in their homes mortgage-free.

The reason that notes have gone missing is the huge mass of mortgage securitizations that occurred during the housing boom. Securitizations allowed for large pools of bank loans to be bundled and sold to legions of investors, but some of the nuts and bolts of the mortgage game — notes, for example — were never adequately tracked or recorded during the boom. In some cases, that means nobody truly knows who owns what.

To be sure, many legal hurdles mean that the initial outcome of the White Plains case may not be repeated elsewhere. Nevertheless, the ruling — by a federal judge, no less — is bound to bring a smile to anyone who has been subjected to rough treatment by a lender. Methinks a few of those people still exist.

More important, the case is an alert to lenders that dubious proof-of-ownership tactics may no longer be accepted practice. They may even be viewed as a fraud on the court.

The United States Trustee, a division of the Justice Department charged with monitoring the nation’s bankruptcy courts, has also taken an interest in the White Plains case. Its representative has attended hearings in the matter, and it has registered with the court as an interested party.

THE case involves a borrower, who declined to be named, living in a home with her daughter and son-in-law. According to court documents, the borrower bought the house in 2001 with a mortgage from Wells Fargo; four and a half years later she refinanced with Mortgage World Bankers Inc.

She fell behind in her payments, and David B. Shaev, a consumer bankruptcy lawyer in Manhattan, filed a Chapter 13 bankruptcy plan on her behalf in late February in an effort to save her home from foreclosure.

A proof of claim to the debt was filed in March by PHH, a company based in Mount Laurel, N.J. The $461,263 that PHH said was owed included $33,545 in arrears.

Mr. Shaev said that when he filed the case, he had simply hoped to persuade PHH to modify his client’s loan. But after months of what he described as foot-dragging by PHH and its lawyers, he asked for proof of PHH’s standing in the case.

“If you want to take someone’s house away, you’d better make sure you have the right to do it,” Mr. Shaev said in an interview last week.

In answer, Mr. Shaev received a letter stating that PHH was the servicer of the loan but that the holder of the note was U.S. Bank, as trustee of a securitization pool. But U.S. Bank was not a party to the action.

Mr. Shaev then asked for proof that U.S. Bank was indeed the holder of the note. All that was provided, however, was an affidavit from Tracy Johnson, a vice president at PHH Mortgage, saying that PHH was the servicer and U.S. Bank the holder.

Among the filings supplied to support Ms. Johnson’s assertion was a copy of the assignment of the mortgage. But this, too, was signed by Ms. Johnson, only this time she was identified as an assistant vice president of MERS, the Mortgage Electronic Registration System. This bank-owned registry eliminates the need to record changes in property ownership in local land records.

Another problem was that the document showed the note was assigned on March 26, 2009, well after the bankruptcy had been filed.

Mr. Shaev’s questions about ownership also led to an admission by PHH that, along the way, it had levied an improper $450 foreclosure fee on the borrower and had overcharged interest by an unstated amount.

John DiCaro, a lawyer representing PHH at the hearing, was in the uncomfortable position of having to explain why there was no documentation of an assignment to U.S. Bank. He did not return a phone call seeking comment last week. Ms. Johnson, who couldn’t be reached for comment, did not attend the hearing.

According to a transcript of the Sept. 29 hearing, Mr. DiCaro said: “In the secondary market, there are many cases where assignment of mortgages, assignment of notes, don’t happen at the time they should. It was standard operating procedure for many years.”

Judge Drain rejected that argument, concluding that what had been presented to the court just did not add up. “I think that I have a more than 50 percent doubt that if the debtor paid this claim, it would be paying the wrong person,” he said. “That’s the problem. And that’s because the claimant has not shown an assignment of a mortgage.”

Mr. Shaev said he was shocked when the judge expunged the mortgage debt.

“We are in uncharted territory,” he said. “Right now I am in bankruptcy court with a house that has no discernible debt on it, yet I have a client with a signed mortgage. We cannot in theory just go out and sell this house because the title company won’t give a clear title on it.”

Among the next steps Mr. Shaev said he would take is to file an amended plan or sue to try to get clear title to the property.

Late last week, PHH appealed the judge’s ruling. But Mr. DiCaro and PHH are in something of a bind. Either they will return to court with a clear claim on the property — including all the transfers and sales that are necessary in the securitization process — or they won’t be able to produce that documentation. If they do produce it, they will then have to explain why they didn’t produce it before.

Oh, what a tangled web these mortgage lenders weave.

By GRETCHEN MORGENSON
Published: October 24, 2009 - New York Times

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-29T16:10:00.006-04:00

Townhouse in popular area in central Jupiter, FL.
2 bedrooms, 2 baths, 1049 sq ft under air. Large driveway. Monthly HOA fees only $52 permonth. Community pool and large park. Judgment amount $198,695. Bank asking only $88,000! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3759

Tentative deal to extend the first-time homebuyers' tax credit

2009-10-29T13:18:00.002-04:00

Washington (CNN) -- Senate leaders have reached a tentative deal to extend the first-time homebuyers' tax credit that was originally passed earlier this year as part of the stimulus bill, Republican and Democratic sources told CNN on Wednesday.

The agreement would extend and expand the credit to include current homeowners who want to move, according to the sources.

The original credit in the stimulus bill is set to expire at the end of November and offers a tax credit of $8,000 to first-time homebuyers.

Senate sources told CNN they have tentatively agreed to extend that $8,000 credit for first-time buyers until the end of April.

In addition, they are adding a $6,500 credit for some current homeowners who buy a new residence by then.

To qualify, current homeowners must have lived in their primary residence for five continuous years.

Senators have not agreed on how the tentative deal would come up for a vote, but sources from both parties said they are considering adding the housing credit to a bill that would extend unemployment benefits.

House Speaker Nancy Pelosi has indicated she also is interested in extending the homeowner credit, but House leaders have yet to endorse any one bill.

Surprise drop in new home sales

2009-10-28T13:59:00.000-04:00

Sales of newly constructed homes fell 3.6% in September, after five months of gains, according to a government report.

Sales of newly built homes fell unexpectedly in September after rising for five straight months, according to government figures released Wednesday.

The Commerce Department said new home sales fell 3.6% to a seasonally-adjusted annual rate of 402,000 last month, from a downwardly revised rate of 417,000 in August. It was the first time new home sales declined since March.

Economists surveyed by Briefing.com had expected September new home sales to rise to a rate of 440,000 units.

"We're attributing most of the decline to the potential expiration of the new home-buyer tax credit," said Adam York, an economist at Wells Fargo.

In addition to relatively low prices and attractive mortgage rates, the housing market has been supported in recent months by a temporary government tax credit for first-time homebuyers.

The credit, which can be worth up to $8,000 for eligible buyers, is set to expire at the end of November. Congress is expected to extend the credit, but the terms are still being debated.

Wednesday's report showed the median sales price rose to $204,800 in September from $195,200 the month before. The average sales price was $282,600. $256,800

The price increase echoed an industry report released Tuesday that showed home prices in 20 major markets rose for the fourth month in a row during August.

Meanwhile, the estimated number of new homes for sale at the end of last month fell 251,000 units on a seasonally adjusted basis. That's down from 262,000 unsold homes last month and was the lowest level since November 1982.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, said the drop in housing inventory means the market is moving towards a better balance of supply and demand. "But the tax credit story is the key element right now," he added.

He said that the credit's looming expiration will probably mean that home sales will fall again in October and, depending upon where the legislation stands, in November as well.

At the current sales pace, it would take 7.5 months to sell through existing inventory, according to the report. That's up from the previous month, when the there was about 7.3 months of inventory on the market.

(CNNMoney.com)

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-27T16:35:00.002-04:00

Mediterranean style corner townhome in West Palm Beach, FL.
3 bedroom, 2.5 bath, 1 car garage, 1617 sq ft under air, built 2003. This is a FannieMae HomePath property. Judgment amount $260,471. Bank asking only $145,000! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3757

Be sure to tell your friends about us. Be the first to get hot foreclosure properties fresh on the market, often even BEFORE they go out to the general public.

Peggy Berkoff & Andrea DiRico

Foreclosure & Short Sale Experts – The “Foreclosure Gurus”

North County Properties

Peggy 561-301-2243 cell

pberkoff@ncpflorida.com

Andrea 561-543-8715 cell

adirico@ncpflorida.com

September housing construction rises 0.5 percent

2009-10-27T10:53:00.002-04:00

Construction of new homes edged up slightly in September, helped by a rebound in single-family construction. However, in a worrisome sign for future housing work, applications for building permits fell by the largest amount in five months.

The Commerce Department says construction of new homes and apartments rose 0.5 percent in September to a seasonally adjusted annual rate of 590,000 units. That was a weaker showing than the 610,000-building rate that economists had been forecasting.

New applications for building permits, considered a good sign of future activity, fell by 1.2 percent in September, the biggest decline since a 2.5 percent drop last April.

That underscored worries that the fledgling housing revival could be derailed by continued soaring unemployment and the expiration on Nov. 30 of the government’s $8,000 tax credit for first time homebuyers.

Housing has been struggling to mount a recovery this year following a steep collapse that helped pull the overall economy into the worst recession since the 1930s.

But the industry still faces severe headwinds in the form of high unemployment, tighter bank lending standards and worries that home sales could falter once the government removes the first-time homebuyers tax credit. The housing industry is lobbying Congress to extend the program.

The 0.5 percent rise in overall construction in September followed a 1 percent drop in August that was revised down from an initial estimate that housing construction had risen by 1.5 percent.

Construction of single-family homes rose by 3.9 percent to an annual rate of 501,000 units, reversing a 4.7 percent drop in August. Multifamily construction, a much smaller and more volatile segment, posted a 15.2 percent drop following a 20.7 percent rise in August.

An index from the National Association Home Builders that measures builder confidence slipped slightly in October to a reading of 18, down from 19 in September. Builders blamed the slippage on the approaching expiration of the homebuyer tax credit.

The industry contends that extending and expanding the tax credit for one year would generate nearly 350,000 jobs and $11.6 billion in additional tax revenues.

WASHINGTON (AP)

BANK OWNED FORECLOSURE OF THE DAY

2009-10-26T16:32:00.007-04:00

Lakefront condo in West Palm Beach, FL.

2 bedrooms, 2 baths, 1021 sq ft under air, pets allowed Community offers pool, tennis and clubhouse. Judgment amount $217,984. Bank asking only $54,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3756

Lunacy in the Housing Market

2009-10-26T15:29:00.001-04:00

Though this story is set in Las Vegas, it is indicative of the market in many areas, and could very easily have happened right here in Florida!

By: Diana Olick
CNBC Real Estate Reporter

Just when you think you've heard it all in today's housing market, along comes a story that takes all those statistics and all those monthly foreclosure reports and all that testimony to Congress and just drop kicks them all out the window.

I'm going to tell you about a nice young woman named Katie. Last week Katie tried to buy a house in Las Vegas, and got a lesson in real estate reality that she will never forget.

Let's back up a bit for some background. Katie and her husband live in Maryland and are about to have their first child. Both work, but Katie's husband, who has a very solid government job, is being transferred to Vegas. And please note, the government is paying all his moving expenses, including Realtor and closing costs. Both he and Katie have credit scores right around 800.

So off the two went to Vegas, thinking they were in the right place at the right time. The foreclosure capital of America, Vegas home prices are down more than 50 percent from their peak in 2006. The median price of a home there is $138,000, but, interestingly, the inventory is down to a less than 3-month supply. Compare that to the national inventory, now at an 8.5 month supply. Despite the low supply, prices are not recovering quickly because the sales are all by banks, looking to unload properties quickly.

But back to Katie. Her Realtor, who is also an old friend, emailed Katie the following warnings before her arrival on the Vegas strip:

- This market is crazy and many things are just not going to make any sense.
- I can guarantee you 99.99% of the listings emailed to you will no longer be available by the time you get here.
- Properties are selling in the blink of an eye.
- Properties are getting multiple offers within a few days of being on the market, the most offers I’ve heard a house had recently was 44 offers (I know, crazy).
- This market is crazy and many things are just not going to make any sense.
- 40% of all transactions are cash purchases, which makes it harder for the buyers who are financing to get their offers accepted.
- We have 1/2 the inventory we had a year ago and 4 times as many buyers as we did a year ago.
- Chances are we will have to submit several offers to have the chance of getting 1 accepted.
- This market is crazy and many things are just not going to make any sense.
- You will probably leave not knowing if you have a house or not because banks take 2 to 3 weeks to respond, because this market is crazy… you know the rest.

I'm guessing you noted the crazy part. Katie is looking in the $150-200,000 price range. Despite the warnings, Katie was completely unprepared for what she found. In seven days, she saw 50 homes. All but one were foreclosures.

On the first day, Katie and her husband saw 13 homes.

Only three were anywhere close to move-in condition, despite the fact that all of the homes were built in 2005 or later. All were foreclosed properties. "People find out a year before they're ever kicked out, so what do they do for that year?" says Katie. "Completely destroy their homes."

I know we've already heard about this, as had Katie, but the destruction was even beyond her expectations. "There's no cleaning that would help." There was dirt rubbed on the walls, graffiti, holes in the walls and garbage deposited inside the holes. The smell? "I couldn't get past it." Obviously there was no hardware on the doors and no appliances, kitchen cabinets, stovetops...whatever could go went. 75 percent of the homes she went into were an instant no.

But here's the crazy part:

"We went to a home that had been on the market for one day, and the key was stolen out of the lock box. Our Realtor said immediately, 'You want this home.' She told us another Realtor had stolen the key because they wanted their client to get it. So what did my Realtor do? She broke in. And sure enough this was the home we fell in love with. It was on for $132,000 so we decided to be really aggressive and offered $160,000, plus we had government backing on our loan. Well our Realtor called that night and said, 'You're not going to get the home. They got 30 offers and half are cash offers, so the bank is not even going to look at you.' The banks just want the cash to unload these places."

Finally, on day 7 of looking, and after having 7 offers ignored by the banks (who owned all the homes), the Realtor called Katie with "a gold mine." Yes, an owner-occupied, regular home. A rare non-foreclosure. They went immediately and put in an offer. The owner claims to like them, but she ended up with 10 offers and is still mulling.

Ironically, in a market still flooding with new foreclosed properties every day, at the end of their week Katie and her husband met with a local builder. "We know our money will not get us as much, but they're giving away the granite and hardwoods for free." It's not in their ideal location, and they wouldn't be able to move in until March, the month their first baby is due. But at least they don't have to deal with the banks, the filth and the competition.

This is what the housing market has come to.

BANK OWNED FORECLOSURE OF THE DAY

2009-10-23T15:43:00.004-04:00

Huge lakefront pool home on 2+ acres in gated Palm City, FL golf course community.

4BR/5.5BA/3GAR, 4366 sqft under air. 40 x 28 pool. Two masters, one up one down. Marble floors, his & hers baths. Partially renovated. Needs applianes, cabinets, toilets, sinks, doors and fixtures, but priced for it. Repaired value well above $550K. Optional golf equity membership. Final Judgment $635,477. Bank asking only $379,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3755

BANK OWNED FORECLOSURE OF THE DAY

2009-10-22T13:48:00.004-04:00

Large 3 bedroom, 2 bath townhouse with attached garage.
Gated community, HOA only $178/mo. Good rental potential. Riviera Beach, FL right on Congress Ave. Built 2006. Last sold 2006 for $227,491. Bank asking only $45,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3754

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-21T16:16:00.006-04:00

Centrally located Stuart, FL townhome with 1 car attached garage.
2 bedroom, 2 bath, 1044 sq ft under air. Walk-in closets, stainless steel appliances, washer/dryer in unit. Built 2006. Last sold 2006 for $184,700. Bank asking only $79,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3753

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-20T13:24:00.004-04:00

Rare 3BR/2BA Condo under $100,000!
Boynton Beach, FL, 1266 sq ft under air, pets allowed, gated community with pool/spa, fitness center, billiard room, basketball and more. Needs flooring. Same model sold in the height of the market for $238,000-290,000. Bank asking only $90,000! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3752

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-19T16:57:00.005-04:00

Huge lakeview home in Boynton Beach, FL.
6BR/5.5BA, 3 car garage, marble and wood floors, manned/gated community. 5595 sqft under air on .37 acres. Never lived in! Sold in the height of the market for $1,031,043. ...Bank asking only $576,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3751

BANK OWNED FORECLOSURE OF THE DAY

2009-10-16T16:31:00.003-04:00

Golf view country club.

3 bedroom, 3 bath pool home with 2.5 car garage in Stuart, FL. 2436 sqft under air with two master suites. Final Judgment $326,826. Bank asking only $179,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3750

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-15T16:39:00.004-04:00

Gorgeous unique two story home in Lake Worth, FL with gated entry.

4 bedrooms, 3 baths, 2 car garage, 2245 sq ft under air. Beautiful wood floors and huge master suite. Screened patio, great community. Last sold in 2005 for $474,900. Bank asking only $229,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3749

#Foreclosures: 'Worst three months of all time'

2009-10-15T12:03:00.000-04:00

Despite signs of broader economic recovery, number of foreclosure filings hit a record high in the third quarter - a sign the plague is still spreading.

Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.

"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.

During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.

Nevada continued to be the worst-hit state with one filing for every 23 households. But even tranquil Vermont, where the foreclosure crisis has barely brushed the housing market, saw foreclosure filings jump nearly 170% compared with the third quarter of 2008. Still, that resulted in just one filing for every 5,023 households in the state -- the best record in the country.

The RealtyTrac report also unveiled the results for September, and it found that there was slight relief from foreclosure filings. Last month, notices totaled 343,638, down 4% compared with August. Unfortunately, that total accounts for 87,821 homes that were repossessed by lenders.

That deluge contributed significantly to the quarter's record 237,052 repossessions, a 21% jump from the previous three months. So far this year lenders have taken back 623,852 homes.

"REO activity increased from the previous quarter in all but two states and the District of Columbia, indicating that lenders may be starting to work through some of the pent-up foreclosure inventory caused by legislative delays, loan-modification efforts and high volumes of distressed properties," James Saccacio, RealtyTrac's CEO, said in a statement.

Most disturbing is that all foreclosures -- not just repossessions -- are rampant despite efforts to corral them. Not only has the Obama administration's Making Home Affordable foreclosure prevention program taken a bite out of REOs but lenders themselves have scaled back repossessions over the past few months to give the program time to work.

And in some low-price markets, lenders simply aren't following through on foreclosures, according to Jim Rokakis, treasurer for Cuyahoga County, Ohio, which includes Cleveland.

"They'll even set the date for the sheriff's sale, but they don't file the final papers," he said. "They hold it in abeyance and let the residents stay in the house."

In ever more frequent cases, delinquent borrowers want out of the mortgage worse than the lenders. There are no firm statistics for it, but many industry watchers claim the percentage of REOs caused by borrowers voluntarily walking away from their homes is skyrocketing.

A study of the trend by the Chicago Booth School of Business and the Kellogg School of Management determined that when home price declines drop home values 10% below the mortgage balances, people start to give up their homes. When "negative equity" approaches 50%, 17% of households default, even when they can still afford their mortgage payments.

No end in sight

The foreclosure crisis may not diminish anytime soon. "The fastest growing area is in the 180 days late-plus category, the most seriously delinquent borrowers," Sharga said. "It's going to be a lingering problem."

Plus, the RealtyTrac statistics may understate the depth of the foreclosure mess because lender and government actions have delayed many filings. As a result, some delinquencies have not been counted on the foreclosure tallies. That means the crisis may not end quickly.

And because there are so many delinquent borrowers, Sharga predicts the banks will be slow to take back their properties and put the repossessed homes back on the market.

"It's hard to envision [the banks] putting millions on properties up for sale and cratering prices," he said. "Recovery will be slow and gradual. I don't see home prices getting much better until 2013."

(CNNMoney.com)

#JUPITER/TEQUESTA, FL #Foreclosure Followers - Market Analysis

2009-10-14T14:27:00.002-04:00

Jupiter/Tequesta Current Market Analysis as of October 14, 2009

Number of properties on the market in Jupiter & Tequesta: 1,510
Median living square footage: 2,000
Median list price: $ 429,000
Median per square foot price: $ 214.50
Median time on the market: 180 days

Jupiter/Tequesta Sold Market Analysis as of October 14, 2009

The data in the Jupiter/Tequesta area for the last 30 days reveals some interesting facts when compared to the above figures. First, the number of properties sold in the last 30 days was 121. The median size was 1,670 square feet and was listed at $ 250,000 when the house went under contract. The final median sales price was $ 143.71 per square foot or a final price $ 240,000, which is 96% of the listing price. Also, the median time on the market was 140 days.

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-14T11:50:00.005-04:00

Great little Jensen Beach cottage with all the Florida charm.

2BR/1.5BA, 1 car garage, 922 sq ft under air. Terrazzo floors, open floor plan, fenced yard. Eastern location, very close to beaches and boating. No homeowner's association fees. Last sold in 2005 for $214,000. Bank asking only $92,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3748

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-13T14:08:00.005-04:00

Ocean, Intracoastal AND Golf Course Views
North Palm Beach, FL
2BR/2BA condo, huge 2145 sqft under air, 8th floor. Built 2003, granite kitchen, needs appliances. Final Judgment $442,200. Bank asking only $275,000! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3747

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-12T15:25:00.007-04:00

#Intracoastal View - West Palm Beach, FL

2nd floor condo, 1BR/1.5BA, spacious 1077 sq ft under air, granite kitchen and bath, tile throughout, doorman building. Direct water views. Sold in 2005 for $191,000. Bank asking only $108,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of #foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3746

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-09T12:10:00.002-04:00

Lakefront with a pool in Lake Worth, FL.
Gorgeous 4BR/3BA single family home, 2954 sqft under air. Totally renovated kitchen with granite, stainless, etc., beautiful tile and wood flooring throughout. CBS construction. Final Judgment $625,226. Bank asking only $279,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3745

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-08T16:28:00.005-04:00

Updated Divosta Quad in West Palm Beach, FL.
2BR/2.5BA, 1236 sqft under air, large fenced patio, updated kitchen, tile throughout. Nice view of canal and wooden footbridge. Last sold in 2006 for $200,000. Bank asking only $88,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3744

BANK OWNED #FORECLOSURE OF THE DAY

2009-10-07T14:11:00.003-04:00

Steps to the Beach in Jupiter, FL.
3BR/2BA townhouse, 1995 sq ft under air. Community pool and tennis. Walk to beach, restaurants & shopping. Last sold in 2005 for $390,000. Bank asking only $194,500! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3743

2009-10-07T12:02:00.002-04:00

Besides the Bank Owned #Foreclosure of the Day, what other types of properties are you interested in?

BANK OWNED FORECLOSURE OF THE DAY

2009-10-06T14:42:00.004-04:00

Attention Investors - Jupiter, FL

3BR/2BA single family home with attached garage, CBS construction, excellent condition (needs appliances). Easy to rent, no HOA fees, good cash flow. Last sold in 2005 for $285,000.... Bank asking only $99,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3742

BANK OWNED FORECLOSURE OF THE DAY

2009-10-05T15:55:00.002-04:00

Super investment property in Lake Worth, FL.
Two story single family home, 3BR/2BA, 1720 sq ft under air, wood floors upstairs, updated baths, fireplace, in-law suite. Some TLC needed. Last sold in 2006 for $290,000. Bank asking only $39,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3741

BANK OWNED FORECLOSURE OF THE DAY

2009-10-02T16:03:00.004-04:00

Beautiful spacious lakefront home in Wellington, FL.

BR/3BA/2GAR, 2535 sqft under air, wide lake views. Built 2004, active adult community. Last sold in 2005 for $566,600. Bank asking only $274,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3740

BANK OWNED FORECLOSURE OF THE DAY

2009-09-30T16:03:00.002-04:00

Practically new townhouse in trendy downtown building.

Built 2006, spacious 3BR/2BA, 1426 sq ft under air. Upgraded kitchen and baths, close to downtown Boynton Beach, shopping and beaches. Last sold in 2006 for $355,764. Bank asking only $129,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3739

BANK OWNED FORECLOSURE OF THE DAY

2009-09-29T15:52:00.003-04:00

Golf course home with a view in Palm City, FL.
Large 2815 sq ft under air, 4 bedrooms, 3 full baths, 3 car garage, gorgeous 1/3 acre lot with trees, second story balcony, gated community. Last sold in 2006 for $575,000. Bank asking only $295,000! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3738

BANK OWNED FORECLOSURE OF THE DAY

2009-09-28T16:01:00.003-04:00

Great income property opportunity

2/2 third floor condo in Royal Palm Beach, FL. Needs appliances and cabinets, but perfect for an investor. Current rental rates $900/mo. Last sold in 2006 for $167,900. Bank asking only $30,500! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3737

BANK OWNED FORECLOSURE OF THE DAY

2009-09-25T14:15:00.002-04:00

Handyman Dream Rehab Property.
Huge 3109 sq ft under air, 3/2 in the highly desired College Park area of Lake Worth, FL. Close to the ocean. Final court judgment $677,997. Bank asking only $159,900. ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3736

Existing home sales slide unexpectedly

2009-09-24T13:48:00.002-04:00

The report breaks a four-month streak of increases with a dip of 2.7% in August.

Existing home sales fell in August, snapping a four-month streak of increases, according to a report released Thursday.

Sales of previously-owned homes fell 2.7% last month from July, but were up 3.4% from a year ago, said the National Association of Realtors.

Sales had jumped 15.2% in the previous four months.

"This is an unpleasant surprise," said Ian Shepherdson, economist at High Frequency Economics, in a research note.

The NAR report said August home sales hit a seasonally-adjusted annual rate of 5.1 million units, down from 5.24 million in July. That's well below the analyst consensus estimate of 5.35 million annual units compiled by Briefing.com.

Shepherdson noted that the July pending sales index, which had been a good predictor of actual sales lately, pointed to sales hitting 5.4 million units or even more.

"The gap between the two numbers is not unprecedented, but we had hoped for better," he said.

The August numbers fell despite low mortgage rates, as well as home prices that have come down significantly in the past year.

"The decline demonstrates we can't take a housing rebound for granted," Lawrence Yun, NAR chief economist, in a prepared statement.

The median price of homes sold in August was just $177,700, a 12.5% year-over-year drop.
Foreclosures. The NAR report said distressed properties, which include foreclosures and short sales, are pushing down the median price because they typically sell for 15-20% less than traditional homes. Distressed property sales comprised 31% of home resales in August.

But low prices and distressed sales don't explain the sudden sales dip, said High Frequency Economics analyst Shepherdson. "[The August report] could just be noise; we await the next pending sales index with some trepidation."

NAR's Yun said the Obama administration should extend the $8,000 tax credit it made available for qualified first-time home buyers, to help boost sales. That credit is currently slated to expire on December 1.

"With an expected rise in foreclosures over the next 12 months we need to maintain a healthy level of ready buyers to absorb the inventory," Yun said in a statement.

Despite the decrease in sales, the supply of homes on the market fell significantly in August. Total housing inventory fell by 10.8% to 3.62 million existing homes for sale. That's an 8.5-month supply, down from a 9.3-month supply in July.

Where homes are selling. Regionally, the Northeast saw the smallest dip in sales, down 2.2% to an annualized rate of 910,000 homes in August. That was 5.8% higher than last year's rate. The median price of homes sold during the month was $241,100, down 10.5% from last year.

In the West, sales fell by 2.7% to a rate of 1.16 million, which was 7.4% higher year-over-year. Prices there have sunk 12.2% since 2008 to a median of $220,500.

Sales in the South were down 3.1% from July to a rate of 1.89 million. That's up 1.6% from August 2008. Since that time, home prices have dropped 11% to $157,400.

The Midwest market fared the worst last month, with existing home sales down 6.6% from July to a rate of 1.14 million, unchanged from a year ago. The median price there was $149,900, down 10.4% from last year.

By Julianne Pepitone, CNNMoney.com

BANK OWNED FORECLOSURE OF THE DAY

2009-09-24T12:07:00.004-04:00

#Foreclosure:
Hypoluxo, FL spacious townhouse with attached garage.
2 BR, 2 BA, 1525 sq ft under air. 2 master suites, bamboo floors, granite kitchen. Gated community offers pool/spa, fitness center and more. Pets allowed. Bank offering 3% closing cost credit to buyer. Last sold in 2005 for $280,000. Bank asking only $134,700! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3735

BANK OWNED FORECLOSURE OF THE DAY:

2009-09-23T15:22:00.003-04:00

#Foreclosure:
Practically new lakefront townhouse
Built 2007. 3 BR, 3 BA condo, 1779 sq ft under air. Community pool/spa, fitness center, tennis, basketball, playground and more. Gated community. Last sold in 2007 for $260,000. ...Bank asking only $159,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3734

BANK OWNED FORECLOSURE OF THE DAY

2009-09-22T14:20:00.003-04:00

Boynton Beach, FL
2 BR, 2 BA condo, 1076 sq ft under air. Community pool/spa, library, fitness center, tennis, business center and more. Gated community. Last sold in 2005 for $258,400. Bank asking only $69,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3733

BANK OWNED FORECLOSURE OF THE DAY

2009-09-21T10:49:00.006-04:00

Unique Stuart, FL home with great lines.
3 bedrooms, 2 baths, 2000+ square feet under air, right off US1. Final court judgment $269,274. Bank asking only $144,900. ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3732

1.4 million Americans score $8,000 tax credit

2009-09-18T14:19:00.001-04:00

The IRS reports that taxpayers are cashing in on the tax credit for first-time homebuyers; a push to extend the credit gains steam.

More than 1.4 million Americans have already claimed the new tax credit for first-time home buyers, according to a report from the Internal Revenue Service.

The credit, which applies to sales as of January 2009, is good for 10% of the price of a home, up to $8,000, and supporters assert it has helped stabilize the housing market. It's available to anyone who has not owned a home for three consecutive years prior to purchase, and to qualify for the full credit buyers must be purchasing a primary residence, and couples can earn no more than $150,000, while individuals must make less than $75,000.

The credit has been an important stimulus tool for two reasons. It's fully refundable, meaning that even if buyers owe no taxes whatsoever, they'll get an $8,000 check from the IRS. And this refund will put money in consumers' pockets for good, as opposed to the $7,500 first-time homebuyer tax credit that could be applied to sales made between April 2008 and July 1 2009.

Timing your home buy

Buyers must close on their homes before Dec.1. But because much of the recent uptick in home sales has been attributed to this tax credit, housing industry advocates worry that the market could quickly turn down again after the credit expires.

"Just like the Cash-for-Clunkers program, there could be a hangover effect," said Mike Larson, a real estate analyst for Weiss Research.

That's why housing industry participants are pushing Congress to keep the tax credit in place.
"We're calling for extending the credit until the end of next year and expanding it to all homebuyers," said NAR spokesman Walter Molony. "We do think that housing will recover without it but the market will come back faster and stronger with it."

A spike in sales

Some 1.8 million people are expected to participate in the program by the time it lapses and the National Association of Realtors (NAR) estimates that it will result in an extra 350,000 sales. The NAHB more conservatively predicts 165,000 more home sales than would have occurred. The associations don't want that momentum to slow. The associations don't want that momentum to slow.

"If we don't extend and expand the program, the seeds of growth planted could [die]," said NAHB president Jerry Howard.

There are six bills before Congress that would extend the tax credit, two in the Senate and four in the House of Representatives.

On Wednesday night, Senator Ben Cardin, D-Md., along with Senators John Ensign R-Nev., Harry Reid, D-Nev., Johnny Isakson, R-Ga., and Debbie Stabenow, D-Mic., introduced a bill extending the tax credit program for six months.

Reid released a statement saying, "Yesterday we learned that new home sales have increased in Las Vegas, and that's good news. I hope this credit will build on that so more Nevadans can realize the American dream of home ownership."

Senator Isakson, a former real estate broker himself who has become a leading voice on housing market issues, had introduced his own bill several weeks ago. That would not only extend the credit for a year after it's renewed, it would allow all homebuyers, not just first-timers, to claim it, as long as the property is for a principle residence. The bill would also increase the tax refund to as much as $15,000.

The house bills all extend the deadline through at least the end of December 2009 and two of the bills, introduced by Howard Coble, R-NC and by Dan Burton, R-Ind., would have it run through 2010. They would also open it up to all homebuyers.

Growing support

Sentiment backing efforts to extend the credit appears to be on the rise, according to Jaret Seiberg, an analyst with Concept Capital's Washington Research Group. He put the odds of and extension at more than 60%. Isakson's version has already attracted 16 co-sponsors, according to his deputy chief of staff, Joan Kirchner.

But the NAHB's Howard, whose background includes extensive tax lobbying, said that he's seen "a couple of red flags lately," threatening to derail any of the bills.

For one thing, the White House has made it known that it is not supporting the extensions. That doesn't mean the administration is against it, it just means that it won't work towards passing any of the bills.

Another hurdle: The growing sentiment among fiscal conservatives that any extension must be paid for by finding savings in some other areas. There has already been $14 billion allocated to the program -- and any extension would surely cost billions more. Finding that money may be very difficult.

Howard contends that while extending the tax credit may be costly, generating home sales can fire up the entire economy.

When people buy homes, especially new homes, they put a lot of cash into circulation. They buy furniture and appliances, new rugs and drapes, do landscaping and painting.

"When I bought my first home, I begged borrowed and, since the statute of limitations is now over, I can admit I stole from my parents to furnish it," he said. "For our second home, my wife and I bought all new stuff."

CNNMoney.com

FORECLOSURE OF THE DAY

2009-09-18T10:36:00.005-04:00

$2 million dollar price reduction!

Boca Raton, FL. Court ordered receivership. Brand New 8550 sq ft under air, 6 bedrooms, 6 and two half baths, 4 car garage, lakeview. Incredibly appointed mansion in exclusive 24 hr guard gated community. Previously marketed for $4,995,000. Asking $2,999,999! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3731

BANK OWNED FORECLOSURE OF THE DAY

2009-09-17T14:27:00.004-04:00

Private Wellington, FL Community.
5 BR, 4 BA, 3819 sq ft under air. 2 story with master down, granite, stainless and more. Guard gated community. Last sold in 2006 for $995,000. Bank asking only $339,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3730

BANK OWNED FORECLOSURE OF THE DAY

2009-09-16T13:37:00.005-04:00

Direct Intracoastal Community.
2 BR, 2BA, 1200 sq ft townhome. Lake Park, FL. Needs appliances & paint, but still a total steal! Last sold in 2005 for $313,000. Bank asking only $66,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3729

Corus takeover could be good for South Florida condo market

2009-09-15T12:20:00.001-04:00

Following the failure of Chicago's Corus Bankshares and its seizure by federal regulators, speculation this week focused on the fate of the lender's $4 billion in commercial loans, a good quarter of them secured by condominium projects in South Florida.

FDIC spokeswoman LaJuan Williams-Dickerson said regulators would begin marketing the assets to potential buyers for a private placement transaction that is expected to be completed in about 30 days. She could not say whether the assets would be sold to a single buyer or in loan pools.

Corus was one of the largest condominium construction lenders in South Florida during the real estate boom, financing 34 projects in Miami-Dade, Broward and Palm Beach counties. It held more than $1 billion in South Florida loans at the time of its Friday seizure, most of which were nonperforming.

Much like a death after a long and painful illness, Corus' failure was met with a sense of closure and relief from some local real estate analysts and developers, who said now the condo market could hit the reset switch and begin moving forward.

"They made all the loans that shouldn't have been made right at the end of the cycle. They represented the largest portfolio of troubled projects, so, in that respect it's kind of like the last hurrah,'' said Jack Lowell, vice president of Coral Gables-based Flagler Real Estate Services.

Corus also controlled a large portion of the unsold condo units in the greater downtown Miami market. A new investor, who would not be fighting to minimize losses, would likely slash prices to quickly sell inventory.

"That will be good for pre-sale buyers and new buyers,'' said Inigo Ardid, vice president of Key International, which developed Ivy and Mint with Corus financing.

Several names have circulated as potential candidates for the Corus portfolio, including Miami Dolphins owner and real estate magnate Stephen Ross, who is chief executive of New York-based Related Cos. and an associate of Jorge Perez of The Related Group in Miami.

Other potential buyers include Miami-based Crescent Heights, Dallas-based investor Lone Star Funds, Colony Capital in Los Angeles, New York-based iStar Financial and Starwood Capital Group of Greenwich, Conn., according to The Wall Street Journal. MB Financial Bank assumed Corus' deposits and $3 billion in marketable securities, leaving $4 billion in mostly soured loans with the FDIC. Corus' failure will cost the federal insurance fund $1.7 billion, the FDIC said.

The size of the portfolio and the delinquent status of most of the loans could make it hard for the FDIC to place the assets, unless it offers them at a significant discount. Some analysts said it was doubtful a single enity could swallow the entire nugget, meaning a consortium of investors would likely coalesce to make an offer or the FDIC would have to sell the portfolio piecemeal.

"I'm not sure if there is any one group that has the wherewithal or expertise to take over the entire Corus portfolio,'' said Peter Zalewski, principal of Condo Vultures, a consultancy and brokerage firm specializing in distressed condo sales.

"It's going to be an extremely interesting negotiation,'' Lowell said. ``In addition to picking up assets, [investors] are going to want to have a very detailed understanding of how the resources are going to be provided to complete the projects.''

Several Corus projects sit empty, awaiting construction or closings that have been slow to materialize in the depressed market. Among them are Paramount Bay, Mint and Trump International Hotel and Tower in Fort Lauderdale.South Florida projects financed by Corus BanksharesCorus Bankshares propelled much of South Florida's vertical growth during the boom years.

Below are projects they financed in South Florida along with the original loan amounts:
Jade Ocean Condominiums, Sunny Isles, $288,115,000
Paramount Bay, Miami, $216,000,000
The Mint at Riverfront, Miami, $191,800,000
The Quantum, Miami, $145,000,000
Infinity, Miami, $140,300,000
Trump International Hotel and Tower Fort Lauderdale, $139,000,000
Continuum at South Beach Phase II, Miami Beach, $135,000,000
The Ivy at Riverfront, Miami, $130,400,000
Artech Residences at Aventura, Aventura, $130,000,000
Tao Condominiums, Sunrise, $126,250,000
The Caribbean, Miami Beach, $124,700,000
The Edge, West Palm Beach, $117,246,250
Marina Blue, Miami, $110,000,000Four Seasons Miami, $94,000,000
Blue, Miami, $90,000,000
Hamptons South, Aventura, $86,000,000
Akoya Condominiums, Miami Beach, $83,175,000
The Strand, West Palm Beach, $80,088,000
Artecity, Miami Beach, $60,300,000
Biscayne Village, Miami, $50,125,000
Valencia, South Miami, $50,000,000
Isles at Sawgrass, Sunrise, $49,500,000
Sole on the Ocean, Sunny Isles Beach, $47,272,000
Europa by the Sea, Lauderdale by the Sea, $45,650,000
Onyx, Miami, $44,100,000
Green Key, Pembroke Pines, $36,500,000
Mark at Cityplace, West Palm Beach, $32,400,000
Esplanade on the New River, Fort Lauderdale, $30,325,000
Peninsula, Aventura, $30,298,616
Clear Lake Colony Apartments, West Palm Beach, $29,870,000
Dolcevita at Singer Island, Palm Beach Shores, $28,400,000
Kensington, Royal Palm Beach, $27,350,000
Four Seasons Miami, $18,500,000

Reported by The Miami Herald, Monica Hatcher

BANK OWNED FORECLOSURE OF THE DAY

2009-09-15T10:01:00.006-04:00

Golf Course Home, Palm City, FL

2167 sq ft under air, 3BR/2BA/2GAR ranch style home. Tile roof. Gated/guarded golf course community. Low HOA fees. Currently assessed for tax purposes at $233,960. Bank asking $169,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3728

Best place to haggle your home price? Florida

2009-09-15T09:52:00.000-04:00

Nationally, homebuyers negotiated a median discount of 3.3% in August. Of the 25 cities with biggest median discounts, 14 were in Florida.

If you're a house hunter in Florida, prepare to haggle. The Sunshine State is the easiest place to negotiate a price cut on your new home.

Of the 25 cities with biggest median discounts in August, 14 of them were in Florida, according to a report released Thursday by Zillow.com.

But hurry, because negotiating a better deal is getting harder. Nationwide, buyers got a median discount of 3.3% -- or $7,039 off the last listing price -- on homes they purchased in July. But in June, the discount was 3.5%. Back in January, the median cut was worth 4.6%.

"The strong summer selling season in 2009 has led to a decreasing difference between the last listing price and final sale price, but most buyers are still getting some additional discount at selling time," said Stan Humphries, Zillow's chief economist.

The city where sellers offered the deepest price cuts was Vero Beach, Fla. Buyers there negotiated prices down by 10.2%, a savings of $23,500.

Other Florida hot spots were Sarasota (8.2% discount), Naples (7.8%) and Daytona Beach (7.5%).

"The fact that many Florida markets are still showing comparatively higher differences between the last listing price and final sale price suggests that inventory levels are still relatively high, keeping considerable downward pressure on prices and encouraging buyers to seek large discounts off the listing price," said Humphries.

The dollar size of the discount was biggest in Stamford, Conn., where high home prices meant the median discount of 5.9% translated into $32,099. Naples, Fla., buyers got $27,233 off their purchases, and Atlantic City, N.J., buyers slashed what they paid by a median of $23,082.

(CNNMoney.com)

Foreclosures: The struggle continues

2009-09-14T10:53:00.000-04:00

The number of bank repossessions drops sharply in August, but the pipeline of troubled borrowers remains full. Calm before the storm?

9/14/09-- The foreclosure crisis grinds on amid signs of hope.

A report released Thursday shows that substantially fewer people had their homes repossessed in August.

Unfortunately, a large number of Americans are still falling behind on their payments.

A total of 76,134 troubled borrowers lost their homes in August, but that is 12.7% fewer than in July, according to RealtyTrac, an online marketer of foreclosed properties.

The pipeline of troubled borrowers remains full, however. Filings of all kinds dropped only slightly, just 0.5%, from July.

According to RealtyTrac spokesman Rick Sharga, there are a couple of possible explanations for the decline in bank repossessions, called REOs in the industry.

"It could be that the government-led mortgage modification programs are finally gaining some traction," he said. "But it could also be that the banks are still delaying repossessions of these properties."

Because banks take big losses on REOs, they may leave delinquent borrowers in their homes, especially where lenders already have a substantial amount of vacant, unsold inventory. Presumably, the borrowers are caring for the properties, which saves banks the time and expense of upkeep and maintenance.

Plus, there is always hope that some of these borrowers will "self-cure" -- or catch up on their loans without assistance -- which is better for banks' bottom lines. In fact, a recent report from the Boston branch of the Federal Reserve found that 30% of borrowers who have missed two mortgage payments eventually become current.

Increases in short sales could also be reducing the repossession statistics, according to Duane LeGate, president of HBN Interactive, a short-sale specialist. These are transactions in which lenders allow borrowers to sell their homes for less than what they owe.

"A lot of banks are delaying the foreclosure process if they see any kind of chance of making a reasonable short sale," he said.

The reprieve in repossessions could be coming to an end, however. Sharga expects a spate of payment problems to start this fall as interest rates reset on some of the exotic mortgage products that proliferated during the boom. Option ARMs (adjustable rate mortgages) in particular will be a big problem.

A Fitch Ratings report released last week forecast that of the $200 billion in option ARMs outstanding, $29 billion will reset to fully amortizing loans by year's end, and another $67 billion will recast in 2010. The average payment increase will be 63%, or $1,053 a month -- an impossible hurdle for many borrowers.

These loans are named for the options they give borrowers. They can pay at a minimum rate, which does not even cover interest; at an interest-only rate; at a fully amortizing 15-year rate; or at a fully amortizing 30- or 40-year rate.

More than 60% of all option ARM borrowers, and more than 80% of all option ARMs issued in 2006 and 2007, often pay just the minimum amount, according to First American LoanPerformance.

That means the principal balances of these loans actually grow. And when they get too large, somewhere between 110% and 125% of the original loan amount, the lender will convert the loan into a fully amortizing mortgage. That usually results in payment shock, a huge jump in monthly mortgage costs.

"We're in the soup for at least another year," Sharga said.

That could mean a third dismal year of foreclosures. So far this year 540,222 homes have been lost to repossession, which is on par with the first eight months of 2008.

Where it's worstSix states account for 60% of all foreclosure filings, according to the RealtyTrac report. California, where many option ARMs were issued, leads with more than 92,000 filings, followed by Florida with more than 62,000. Michigan is next with more than 19,000; Nevada, whose foreclosure rate of one for every 62 households was the highest in the nation, and Arizona both had close to 18,000. Illinois recorded more than 13,000.

California homeowners also lost more properties to repossession than any other state. There were 14,590 in August, twice the number of Florida, which was the second worst-hit state with 6,446.

Still, those figures show month-over-month improvement. In California, the August total was down nearly 32% from July, and Florida showed a 4.6% improvement. REOs also steeply fell in Arizona (down 16.7%) and Nevada (off 23.8%).

The list of cities worst hit by total foreclosure filings include many names familiar from past months. Las Vegas had the nation's highest foreclosure rate, with 16,798 filings, or one for every 47 housing units.

Second was another repeat offender, Stockton, Calif., where one of every 62 homes had a filing. Modesto, Calif. was third with one in 63.

BANK OWNED FORECLOSURE OF THE DAY

2009-09-14T10:36:00.007-04:00

SPANISH DESIGN HOME

Palm Beach Gardens, FL. 2325 sq ft under air, 3BR/2.5BA/2.5GAR, two story. Community pool, gym, restaurant, bar and more. Sold in 2006 for $512,000. Bank asking $299,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3727

BANK OWNED FORECLOSURE OF THE DAY

2009-09-10T12:55:00.003-04:00

DUPLEX Income Property

4BR/2BA, 2000+ sq ft. Greenacres, FL. Currently assessed at $176,410 for tax purposes. Bank asking $79,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3726

BANK OWNED FORECLOSURE OF THE DAY

2009-09-09T10:48:00.004-04:00

Trendy Pinapple Grove Walking Distance to Atlantic Ave/Downtown Delray.

Turnkey. Granite, stainless, berber carpet, nice view of Pineapple Grove. Previously sold in 2006 for $491,900. Bank asking $229,500! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3725

BANK OWNED FORECLOSURE OF THE DAY

2009-09-08T12:59:00.005-04:00

Palm Beach Oceanfront.

Spacious 2BR/2BA oceanview 3rd floor condo, 1140 sq ft under air, doorman bldg, oceanside pool, covered parking available. Previously sold in 2005 for $459,000. Bank asking $176,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3724

BANK OWNED FORECLOSURE OF THE DAY

2009-09-04T15:01:00.002-04:00

Spacious 3 BR, 2.5 BA townhome, 1700+ sq ft under air. Suburban Lake Worth, FL. Includes attached garage and balcony. Built 2006, only 1 owner. Previously sold in 2006 for $340,000. Bank asking $95,900! ***Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. ID: FB3723

BANK OWNED FORECLOSURE OF THE DAY

2009-09-03T10:44:00.001-04:00

Western West Palm Beach, 2900+ square feet under air.

4 bedroom, 3 bath, 3 car garage, lake view, large balcony, manned gated community, concrete block construction. Previously sold in 2005 for $597,900. Bank asking $185,000! Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3722

BANK OWNED FORECLOSURE OF THE DAY

2009-09-02T12:36:00.004-04:00

Stuart, FL - Waterfront Ocean Access
4 bed/3 bath/3 car garage home built 2007 on 1/3 acres. 2802 sqft under air, gourmet kitchen with granite, counters and double oven. Grand master bathroom with whirlpool bath, sports shower, dual sinks and more. Private dock, electric boat lift. Previously sold in 2006 for $2,611,700. Bank asking $570,000! Bank owned properties are very competitive - act immediately or risk losing out. For a full list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. ID: FB3721

Pending home sales on a record roll

2009-09-02T12:09:00.000-04:00

Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June. It’s also 12.0 percent higher than July 2008 when it was at 87.1. The index is at its highest level since June 2007.

Lawrence Yun, NAR chief economist, says housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit.

“Other buyers are taking advantage of low home values before prices turn higher,” Yun says. “Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable.”

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by Nov. 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible – it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008. In the Midwest, the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago. In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008. In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

NAR President Charles McMillan says Congress needs to keep the momentum going. “Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” he says. “To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker the credit can be extended to other sectors of the economy.”

NAR’s Housing Affordability Index (HAI) stood at 158.5 in July – below the peak set in April but still 36.0 percentage points higher than a year ago. 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.

Yun expects existing-home sales to rise through the fourth quarter. “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” he said. “However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery.’”

July pending home sales rise to 2-year high

2009-09-01T11:08:00.000-04:00

Pending U.S. home sales rose more than expected in July to the highest level in more than two years as first-time buyers rushed to take advantage of a tax credit that expires this fall.

The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in July for previously occupied homes rose 3.2 percent to 97.6. It was the sixth straight increase and 12 percent above the same month last year.

Economists surveyed by Thomson Reuters expected the index would edge up to 96.5.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer of how sales completed this month and next will turn out. However, delays in getting mortgages approved and appraisals completed have lengthened the time it takes to close a deal in many cases.

The U.S. housing market is rebounding more rapidly than expected from its historic bust, as low prices and the looming expiration on Nov. 30 of a first-time homebuyers tax credit of up to $8,000 have spurred sales. Home prices in most of the country have started to rise from the depths of the housing slump.

But analysts predict sales will drop off when the tax credit expires, or if mortgage rates rise from near-record lows. Foreclosures also continue to rise, and banks are forced to sell those properties at deep discounts, pushing prices down.

The Realtors group projects that around 2 million first-time buyers will take advantage of the credit this year, and says it is spurring 350,000 additional sales that wouldn't have happened otherwise.

Nationally, home prices in the second quarter posted their first quarterly increase in three years, according to the Standard & Poor's/Case-Shiller national index released last week.
While home prices are still 30 percent below the mid-2006 peak, their new direction should bring relief to both lenders and homeowners. Falling property values have wiped out $4 trillion in homeowner equity, and thousands have walked away from homes that are worth far less than their mortgage balance.

BANK OWNED FORECLOSURE OF THE DAY

2009-08-28T15:42:00.004-04:00

Lakefront Single Family Home In Wellington...

3BR 3BA with 2 car garage, 2535 sq ft under air, wide lake views, screened patio, active adult community. Previously sold in 2005 for $566,000. Bank asking only $274,900. For a complete list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3720

Act fast! Homebuyer tax credit ends soon

2009-08-27T16:46:00.002-04:00

There's barely three months left before the $8,000 tax credit for first-time buyers ends -- and it can take that long to close on your new home.

Use any metaphor you want: the ticking clock, sands running through the hourglass or pages falling away from the calendar. The fact is, time is running out to claim the $8,000 first-time homebuyers tax credit.

Passed earlier this year as part of the economic stimulus package, the credit is good for up to $8,000, or 10% of the purchase price, and applies to people who have not owned a home in the previous three years. (There are some income restrictions.) The best part: Unlike a similar program from 2008, the credit does not have to be repaid.

The bad part: It ends on Dec. 1.

Because it usually takes time to close on a house after a contract is signed, buyers have very little time left to act. As of Thurs., Aug. 27, there were only 96 days left before the credit ends.

"Buyers have to get a home under contract very, very soon," said Tom Kunz, CEO of Century 21. "They probably should get out looking."

Sense of urgency

What they will find may surprise them: Many of the prime properties have already been snapped up. Home sales have been on the upswing, and inventories are so depleted in hot markets that first-time buyers are struggling to find homes in their price range. (Check prices in your city.)

In Whittier, Calif., for example, there are few repossessed homes for sale. Those are easy to buy because there isn't a lot of red tape and the bank wants to get rid of them as quickly as possible. Instead, most of the properties are short sales, where the sellers have to convince their lender to let them sell the house for less than they owe.

"That's why there's such a sense of urgency now," said Irma Tapper, a Century 21 real estate agent in Whittier. "The banks have to approve short sales, and they're taking three to six months to do that."

That means a first timer putting a bid on a short-sale might not get an answer form the bank until well after the Dec. 1 deadline for the tax credit. So when an actual repossession listing hits the markets, it creates a feeding frenzy.

Chuck Whitehead, who runs the Coldwell Banker agency in Temecula, Calif., said one recent listing hit the market on a Friday and by Monday there were 57 bids.

The National Association of Realtors attributes much of this activity to the first-time buyer tax credit. It estimates that 1.8 million buyers will file for the credit, and 350,000 of them wouldn't have been able to buy without it.

"It makes a big difference because most of these clients are in a lower price range," said Michelle Edmunds, an agent with Coldwell Banker in Temecula, Calf., who has closed sales for six first-time buyers. "The houses they buy need work and normally they wouldn't want to move in because of the [less than perfect] conditions the homes are in."

That is true for Wesley Forsythe. This June, the 30-year-old computer consultant and his girlfriend bought a row house in the Fishtown section of Philadelphia. Since he paid just $80,000 for the three-bedroom, two-bath place, the credit acted like a 10% discount.

"It allowed us to expand our price range and plan additional renovations," he said. "My mortgage is several hundred dollars less than what my new rent would have been."

Forsythe applied for the credit immediately after closing, filing an amended 2008 tax return. The IRS cut him a check in less than seven weeks. He's spending it now on new hardwood floors, repainting most of the interior and renovating a bathroom. He's stretching the cash by doing much of the work himself.

Cash for Clunkers effect

Of course, analysts worry that this frenzy will dry up once the tax credit expires. They argue that without the incentive, much of the pressure on homebuyers to act quickly will vanish, and the nascent housing recovery could slump.

In many ways the tax credit is similar to the Cash for Clunkers program that ended this week. Already, auto dealers are anticipating that car sales will evaporate after accelerating during the program.

"It's just like Cash for Clunkers," said Robert Dye, a senior economist for PNC Financial Services Group. "It runs the risk of a let-down as the program runs its course."

Johnny Isakson, R-Ga., who is a former real estate broker, is pushing legislation to extend the tax credit through next year, increase it to $15,000, include non-first-time homebuyers, and remove income restrictions.

The effort has drawn strong industry support.

"We need to stimulate the move-up buyer," said Century 21's Kunz, "so it works its way up the pricing food chain. That's what we need to get inventory moving again."

(CNNMoney.com)

BANK OWNED FORECLOSURE OF THE DAY

2009-08-27T16:24:00.005-04:00

Martin County Investment Property Never Lived In...

3BR 2BA townhouse with attached garage in Stuart, FL. Community pool. Only $89,000. For a complete list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3719

Consumer Confidence Soars

2009-08-26T12:22:00.001-04:00

Sentiment reading increased to 54.1 in August, well above economists' expectations.

A key measure of consumer confidence jumped much more than predicted in August, as the job market outlook and business expectations improved, said a report released Tuesday.

The Conference Board, a New York-based business research group, said Tuesday that its Consumer Confidence Index rose to 54.1 in August from an upwardly-revised 47.4 in July.

Economists were expecting the index to increase to 48, according to a Briefing.com consensus survey.

The measure is closely watched because consumer spending makes up two-thirds of the nation's economic activity.

(CNNMoney.com)

BANK OWNED FORECLOSURE OF THE DAY

2009-08-26T10:36:00.005-04:00

Waterfront Condo

Watch the boats go by from direct water views! 21-30' boat slips. Ocean access 1 BR condo in North Palm Beach, FL. Corner unit, extra windows and screened balcony. Only $68,000. For a complete list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3718

South Florida home prices bottom out, Case-Shiller index shows

2009-08-26T10:35:00.001-04:00

More evidence that home prices have hit bottom: The S&P/Case-Shiller index says South Florida home prices rose slightly from May to June, the first time since February 2007 that the measure has gone up.

The Case-Shiller index groups Palm Beach, Broward and Miami-Dade together. The index for South Florida rose from 144.59 in May to 145.37 in June, an increase of 0.5 percent.

The Case-Shiller numbers mirror a trend identified by the Florida Association of Realtors, whose stats show the median price of an existing single-family house in Palm Beach County has ticked up in recent months.

Nationally, the S&P/Case-Shiller index fell 15.4 percent from a year earlier, the smallest drop since April 2008, and rose from the previous month by the most in four years.

“The sharp freefall in prices is over,” Michelle Meyer, an economist at Barclays Capital Inc., tells Bloomberg News. “People are entering the market and that is starting to normalize prices. It’s a clear positive.”

by Jeff Ostrowski, Palm Beach Post writer

BANK OWNED FORECLOSURE OF THE DAY

2009-08-25T10:50:00.003-04:00

5BR/3BA Wellington lakefront home
3 car garage, 3000+ square feet under air, 1/4 acre lot, HUGE master suite, concrete block construction, manned/gated community. Sold for $640,000 in 2005. Asking on ly $327,500. For a complete list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3717

BANK OWNED FORECLOSURE OF THE DAY

2009-08-24T10:51:00.004-04:00

Great Rental Property, Investment Opportunity - Spacious 2BR, 2BA 2nd floor condo in beautiful West Palm Beach, FL community. Great income potential as rental. Act Fast! Only $62,900! For a complete list of foreclosures, call Peggy 561-301-2243 or Andrea 561-543-8715. WEB ID: FB3716