BANK OWNED FORECLOSURE OF THE DAY

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

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

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

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

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

#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:

#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

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

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

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

$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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.