Current real estate news

Pending home sales: Upward trend continues (8/4/09)

Up 3.6% since May, the index rose for a fifth consecutive month, the first time in six years for such a streak, according to NAR. Read more.
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=220911

Feds to shame lenders not helping homeowners (8/4/09)

By publishing the names of slow-moving companies, officials hope public outrage will get the industry on track. Read more.

Chinese drywall: One builder guts own home (8/4/09)

If you leave toxic drywall up, it continues to damage pipes and wiring; take it down and you risk losing a lawsuit for repair costs. Read more.

Details of FHA’s $8K downpayment advance released (5/29/09)

WASHINGTON – May 29, 2009 – The U.S. Department of Housing and Urban Development (HUD) released more details today about its program to help first-time homebuyers use a tax credit as part of a downpayment.

HUD announced the program on May 12 at the National Association of Realtors® Housing Summit. In the interim, HUD posted an announcement and then immediately took it down, leading to speculation that the program would be pulled. In response, HUD said the rules had simply not been finalized, and the original announcement had been posted in error.

“We’ve been eager for word from the federal government since the new FHA downpayment assistance plan was announced, and even more so after the program details were first published and then quickly pulled,” says John Sebree, FAR vice president of public policy. “Luckily, that turns out to be a minor setback and there will be a federal downpayment program to complement the $30 million we were successful in securing in the Florida budget.”

The most significant change involves the amount of downpayment required by qualified first-time homebuyers. FHA mortgages require a 3.5 percent downpayment, and the $8,000 tax credit cannot be used to override that requirement. Once the 3.5 percent downpayment requirement has been met, however, the tax credit can be applied to additional costs, including a higher downpayment, paying points to lower the mortgage rate, and/or closing costs. Lenders will treat the tax credit money as a second lien on the home until it’s paid back.

“Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers,” says Sebree. Since lenders will oversee the tax credit loan, they must create internal programs to handle the process.

Lenders have some flexibility on payback requirements for the upfront loan of the tax credit, though HUD also created rules to protect homebuyers from onerous terms. To read the complete overview in Mortgagee Letter 2009-15, go here.

Mortgage rates dip, but above record lows (5/22/09)

Average rates on 30-year, fixed-rate mortgages dropped to 4.82% this week, staying below 5 percent for the tenth week in a row. Read the full story.

Congress concerned over Chinese drywall (5/22/09)

Senators and federal regulators joined hands yesterday to resolve health and structural problems linked to the use of toxic drywall. Read the full story.

HOUSING AID (4/28/09)
The Obama administration is expected to announce an expansion of its plan to stem the housing crisis by offering mortgage lenders incentives to lower borrowers' bills on second mortgages.
http://www.floridarealtors.org/NewsAndEvents/n4-042809.cfm

COUNTRYWIDE (4/28/09)
Bank of America Corp. has officially dropped the Countrywide Home Loans name, which it acquired last year. Bank of America Home Loans will now issue all mortgages.
http://www.floridarealtors.org/NewsAndEvents/n2-042809.cfm

CHINESE DRYWALL FORMS NOW AVAILABLE (4/28/09)
Two forms are available from FAR to assist Realtors working with buyers and sellers of property potentially affected by Chinese drywall:
Chinese/Defective Drywall Addendum to Contract (CDA-1)
This is a form to be used if a buyer desires to perform a Chinese/defective drywall inspection. The Addendum allows the buyer to cancel the contract if the inspection reveals the presence of Chinese/defective drywall and the cost to repair/replace the defective drywall or damage resulting from the defective drywall exceeds a predetermined amount. 
Seller's Real Property Disclosure Statement (SRPD-4)
FAR modified paragraph 5 of this form with language addressing Chinese/defective drywall issues. Sellers may use this form to disclose facts relating to the condition of the property and to disclose defects or facts that materially affect the value of the property but that are not readily observable by or known to the buyer. 

HOME VALUE INSURANCE (4/27/09)
With the fear of declining residential values keeping many would-be homeowners from entering the market, Move Inc. Chairman Joe Hanauer believes he has come up with a solution to get buyers off the fence: insurance that pays if the value of a home goes down.
http://www.floridarealtors.org/NewsAndEvents/n4-042709.cfm

MORTGAGE FRAUD (4/8/09)
Federal and state officials are cracking down on mortgage modification scams, accusing "criminal actors" of preying on desperate borrowers caught up in the nation's housing crisis. Signs of a mortgage scam, according to the FTC, include: requiring upfront fees; promises to stop foreclosure or modify a loan; guarantees that your home will be saved and claims of a "97 percent success rate"; and use of official-sounding names.
http://www.floridarealtors.org/NewsAndEvents/n5-040709.cfm

ECONOMY (4/8/09)
The chief economist of Mesirow Financial, a $31.4 billion asset financial services firm in Chicago founded in 1937, announced that the housing market probably bottomed out in February and is now on the road to recovery.
http://www.floridarealtors.org/NewsAndEvents/n2-040709.cfm

HOMEBUYER TAX CREDIT (4/8/09)
A coalition of powerful groups that includes FAR is lobbying the state to find a way to advance first-time homebuyers the new $8,000 federal tax credit. "I was in Tallahassee last week and I met with some senators," says FAR President Cynthia Shelton. "We're pressing like mad to get this through." A new study finds that the advance would create the equivalent of 33,206 jobs and generate $514 million in tax revenue.
http://www.floridarealtors.org/NewsAndEvents/n1-040709.cfm

HOW WILL A FORECLOSURE AFFECT MY CREDIT SCORE? (3/26/09)

The amount of damage to a credit score caused by foreclosure, deed in lieu or a short sale during 2008 and 2009 may be mitigated by the slower economic times, say some credit and legal experts.  FICO may have to adjust its credit scores to lessen the impact of a foreclosure in the last two years, says Todd J. Zywicki, a professor of law at George Mason University. Read more at:

www.realtor.org/RMODaily.nsf/pages/News2009031606?OpenDocument

HOUSING MARKET LOOKING UP? (3/26/09)
HUD Secretary Shaun Donovan released a statement yesterday that suggests the housing market is improving. "This week we have seen some encouraging news on housing," Donovan's statement said. "Sales of both new and existing homes rose in February for the first time in more than six months, while home prices are starting to stabilize. Although there will be many ups and downs in the coming months, this news should reinforce the importance of the steps we have already taken to stabilize the housing market and strengthen our economy, including measures that have contributed to the nearly lowest mortgage rates in decades and the $8,000 tax credit for new homebuyers included in the American Recovery & Reinvestment Act (ARRA)." Donovan believes the housing turnaround will do more than help homebuyers, tying it to a complete economic rebound that will lead to growth and job creation.

HOMEBUYERS (3/26/09)

It's a double whammy: Homebuyers have a hard time qualifying for a mortgage and mortgage brokers have less time to help them. According to the Mortgage Bankers Association, refinancing accounted for 78.5 percent of all mortgage applications last week as rates hit an all-time low.
http://www.floridarealtors.org/NewsAndEvents/n2-032609.cfm

TRENDS (3/25/09)

Realtors across the U.S. report signs of a turnaround in the housing market. It's not much, but there seems to be a light at the end of the tunnel as more buyers knock on Realtors' doors. http://www.floridarealtors.org/NewsAndEvents/n2-032509.cfm

HOME PRICES (3/25/09)

U.S. home prices rose 1.7 percent on a seasonally-adjusted basis from December to January, according to the Federal Housing Finance Agency, which regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. http://www.floridarealtors.org/NewsAndEvents/n1-032509.cfm

FHA Changes (3/16/09)

The FHA plans to make it tougher for borrowers to refinance a loan and take out cash as the agency tries to "limit its exposure to undue risk," according to a letter that recently went out to lenders. Starting with loan applications that lenders receive April 1, the FHA's new policy limits cash-out refis to borrowers with at least 15 percent equity in their homes.  http://www.floridarealtors.org/NewsAndEvents/n5-031609.cfm

MORTGAGE MODIFICATIONS (3/16/09)

Disagreement among Senate Democrats over how many struggling homeowners should qualify for court-ordered mortgage relief has stalled a key part of President Barack Obama's foreclosure prevention plan on Capitol Hill. Proponents are trying to work with lenders and other key players to reach a deal to move the legislation forward.
http://www.floridarealtors.org/NewsAndEvents/n4-031609.cfm

HOMEOWNERS (3/16/09)

The nonprofit Neighborhood Assistance Corp. of America is taking its "Save the Dream Tour" across the U.S. to help at-risk homeowners find ways to lower their mortgage payments. The free counseling service has plans to visit Florida.  http://www.floridarealtors.org/NewsAndEvents/n3-031609.cfm

FLORIDA ECONOMY (3/16/09)

State economists are predicting Florida will fall another $2.4 billion short in tax revenues for the coming fiscal year, which means the federal stimulus package will likely fix only part of the problem. Compounding the problem: Legislators also will have to once again reduce the spending plan for the current fiscal year, which ends June 30.
http://www.floridarealtors.org/NewsAndEvents/n2-031609.cfm

MORTGAGE RATES

Rates on 30-year-fixed mortgages rose slightly this week to 5.07 percent amid sagging consumer confidence and lower sale prices for existing homes, Freddie Mac said Thursday.
http://www.floridarealtors.org/NewsAndEvents/n3-022709.cfm

FORECLOSURES

HUD Secretary Shaun Donovan said yesterday that he expects to get help to at-risk homeowners by April. Rescue plan details won't be released until Wednesday, but Donovan expects "to see large numbers of (mortgage) modifications happen very quickly."
http://www.floridarealtors.org/NewsAndEvents/n2-022709.cfm

MORTGAGE INTEREST DEDUCTION

NAR, which generally supports the Obama administration's housing and stimulus plans, announced opposition to one budget proposal that would water down the mortgage interest tax deduction (MID) for thousands of higher-income families.  http://www.floridarealtors.org/NewsAndEvents/n1-022709.cfm

MORTGAGES

About 9 percent of homebuyers in 2007 borrowed an amount at least four times greater than their annual income, according to an analysis of lender data by USA Today.
http://www.floridarealtors.org/NewsAndEvents/n5-022609.cfm

YOU CAN QUALIFY FOR MORTGAGES!

Many potential buyers think they won't qualify for a mortgage, and that they must have a substantial downpayment first. But some Realtors are using that information to their advantage, hosting "Why Rent Events" that instruct shoppers on how to buy a home right now. http://www.floridarealtors.org/NewsAndEvents/n2-020409.cfm

FORECLOSURES

Freddie Mac announced a pilot program yesterday to expedite mortgage modifications. It will pay an outside company to focus on specific types of high-risk loans, including Alt-A, which make up a small portion of Freddie's portfolio but half of its delinquencies. http://www.floridarealtors.org/NewsAndEvents/n3-020409.cfm

WORKFORCE HOUSING

Due to Florida's budget spending cuts in January, more than 50 new affordable housing complexes statewide are in jeopardy. The projects aren't completely state funded, but without the 20 or 25 percent the state provides, developers won't have enough money to continue, even though some have already put $1 million into projects.
http://www.floridarealtors.org/NewsAndEvents/n4-020409.cfm

FEDERAL BAILOUT

President Barack Obama's plan to award a $500 tax credit to most workers is expected to advance through a key House panel as Democrats prepare his $825 billion economic recovery proposal for a floor vote this week. The measure contains temporary spending increases for dozens of programs across the federal government, including money to weatherize low-income homes. http://www.floridarealtors.org/NewsAndEvents/n5-012209.cfm

CITIZENS PROPERTY INSURANCE

A Florida legislative task force is recommending that Citizens Property Insurance be allowed to end a three-year rate freeze and start hiking homeowner rates. It suggests a 10 percent increase, on average, with an annual cap of 15 percent for a given territory and 20 percent for a single policy. http://www.floridarealtors.org/NewsAndEvents/n1-012209.cfm

EMINENT DOMAIN WANES

Americans still worry about local eminent domain laws - but not all that much. The 2005 Supreme Court case Keo v. New London, which affirmed the right of governments to take private property and transfer it to private developers, still causes some resentment nationwide. However, overall opposition has waned, a new study suggests. In 2006, objections to the decision fueled legislation in more than 40 states and drove many local laws. But by 2008, the battles appear to be focused primarily on specific eminent domain situations, according to a recent study for the Initiative and Referendum Institute of the University of Southern California.

MORTGAGES

Mortgage hunters who want to buy a home or refinance an existing loan face new challenges, but there is money available if they can qualify. Here are eight things that can make the process easier, according to mortgage bankers and Realtors. http://www.floridarealtors.org/NewsAndEvents/n3-012309.cfm

HURRICANES
Some hurricane forecasts call for an above-average season in 2009. According to UF, that gives Florida residents about five months to fortify their homes. http://www.floridarealtors.org/NewsAndEvents/n4-011509.cfm

Keep Your Home, Know Your Loan

The Department of Housing and Urban Development launched a new effort to keep borrowers from losing their homes to foreclosure on Wednesday, January 14. Called “Keep Your Home, Know Your Loan,” the campaign includes public service announcements and print materials that will be distributed in six major metropolitan areas where home foreclosures rates are soaring, including Chicago, Los Angeles, Detroit, New York, Phoenix, and Miami.  http://www.hud.gov/keepyourhome/index.cfm

Another short sale problem: Partial debt forgiveness unacceptable to seller
http://www.floridarealtors.org/NewsAndEvents/l1-011609.cfm

To rent old home and claim income, sellers need 30 percent equity
http://www.floridarealtors.org/NewsAndEvents/l2-011609.cfm 

FORECLOSURES
More than 2.3 million American homeowners faced foreclosure proceedings last year, an 81 percent increase from 2007, according to RealtyTrac, a California-based research firm. The four states with the highest foreclosure rates: California, Nevada, Florida and Arizona.  http://www.floridarealtors.org/NewsAndEvents/n5-011509.cfm

HOMEBUYERS
More potential homebuyers are opting to rent. On a per-square-foot basis, renting is cheaper, especially to families that have lost faith in real estate as an investment. But rent rises over time, and it's an ideal time to jump into the market.  http://www.floridarealtors.org/NewsAndEvents/n3-011609.cfm

MORTGAGE RATES
Rates on 30-year mortgages set a record for a fifth straight week by dropping below 5 percent, the lowest mark since Freddie Mac started tracking the data in 1971.  http://www.floridarealtors.org/NewsAndEvents/n1-011609.cfm

ECONOMIC BAILOUT
Hundreds of lenders told federal housing officials Thursday that a $300 billion mortgage aid program, Hope for Homeowners, requires too many losses for consumers and lenders to realistically help 400,000 Americans avoid foreclosure.  http://www.floridarealtors.org/NewsAndEvents/n4-111408.cfm

HOUSING MARKET
While overall national home prices and sales are down, there are pockets in the U.S. doing well. Among them are military towns dominated by big bases, helped by steady wartime employment.  http://www.floridarealtors.org/NewsAndEvents/n3-111408.cfm

MORTGAGE RATES
Mortgage rates dropped for a second straight week, reflecting the impact the weakening economy is having on financial markets. Thirty-year, fixed-rate mortgages averaged 6.14 percent, according to Freddie Mac's weekly nationwide survey.  http://www.floridarealtors.org/NewsAndEvents/n1-111408.cfm

FORECLOSURES - AN ONLINE GUIDE
Homeowners facing foreclosure need information, and the U.S. Department of Housing and Urban Development offers a one-stop shop online that can help. "The Guide to Avoiding Foreclosure is an easy-to-use site allowing users to quickly search information specific to their needs," says HUD Secretary Steve Preston. "The streamlined Web site educates individuals on the many ways HUD can assist them through these trying times and help them hold on to their homes." The Guide to Avoiding Foreclosure links homeowners to housing counselors, lenders, local resources, refinancing options, FHASecure, HOPE for Homeowners, and information about the foreclosure process and possible alternatives. The Guide to Avoiding Foreclosure can be found on HUD's home page (http://www.hud.gov) or by going directly to: www.hud.gov/foreclosure

LENDING
With federal money recharging the financial system, many banks say they are ready to lend, but nervous consumers aren't seeking loans and small businesses remain cautious about their borrowing. It's going to take time for things to change, say industry experts, who predict that loan demand will remain weak into early 2009.
Read the full story: http://www.floridarealtors.org/NewsAndEvents/n5-110708.cfm

INTEREST RATES
Just how far will the Federal Reserve go in lowering interest rates to save the country from a long and painful recession? Interest rates, which directly affect ARMs and influence FRMs, could go as low as 0 percent.
Read the full story: http://www.floridarealtors.org/NewsAndEvents/n5-103108.cfm

INHERITANCE
It might be a good time for older homeowners to give property to their children, while they can get big savings on gift and estate taxes thanks to lower real estate values. A qualified personal residence trust, or QPRT, allows homeowners to continue living in a property for many years before passing it on to their heirs.
Read the full story: http://www.floridarealtors.org/NewsAndEvents/n4-103108.cfm 

VETERAN BENEFITS

Veterans across America now have expanded homeownership opportunities, thanks to the Veterans' Benefits Improvement Act of 2008 signed by President Bush in October 2008. The bill includes housing provisions for veterans who are already homeowners and those who aspire to homeownership.