Posts filed under 'Real Estate Infos'
Taxpayer funds prop up the banking sector, but there are no easy solutions for the foreclosure mess.(article geared to US audience)
Calls for a sweeping federal response to the housing mess are getting louder. But finding a solution isn’t getting any easier.
Sheila Bair, the chairman of the ederal Deposit Insurance Corp., said Thursday that the feds are considering guaranteeing payments on some troubled mortgages. The move, she told members of the Senate Banking Committee, would aim to reduce foreclosures by pushing investors and lenders to agree to restructure loans.
While such an outcome would no doubt keep some residents in their homes, it’s worth noting that the government has yet to put forth any proposal that approaches what it has done in the financial sector. There the feds plan to pour $125 billion into nine big banks including Citi, Goldman and Bank of America and promise to backstop the markets for short-term commercial borrowing and bank debt, among other things.
So far, government support for homeowners has been limited to a few modest foreclosure-reduction and mortgage-refinancing plans. But with tens of thousands of jobs being lost every month, the decline of values in the housing market - the biggest source of Americans’ personal wealth - is weighing even more heavily on the economy. House prices have fallen 17% over the past year, according to S&P/Case-Shiller data. Foreclosure filings rose 71% from a year ago in the third quarter.
The missing piece
The government’s failure to act pre-emptively and decisively on the housing crunch has only added to the problem, says University of Michigan law professor Michael Barr.
“The administration should have acted a year ago,” says Barr, who is a senior fellow at the Center for American Progress. “Doing something for homeowners is the key missing piece of the response to this crisis.”
The comments Thursday by FDIC chief Bair suggest that the government’s first priority is to speed the restructuring of troubled loans. But there are numerous hurdles to loan workouts, not the least of which is that some borrowers may simply have bought houses they couldn’t afford no matter the terms of their loan.
Beyond that, Barr points to the tax and accounting implications of removing mortgages from the securitization trusts where many loans reside after being sold to investors, for instance.
Barr and colleagues at the Center for American Progress have advocated that the government buy pools of mortgage loans at what he calls a market-determined discount, then refinance troubled mortgages within the pools to allow homeowners to stay in their houses.
“Our plan is designed not just to help out those facing foreclosures,” he told the Senate Banking Committee in January, “but to contain the severe contagion effects of foreclosures on property values; consumer credit, spending, and confidence; commercial real estate markets; and the functioning of credit markets.”
Such a sweeping bailout plan could prove many times more expensive than effors to date have been.
Still, given the scale of the crisis, a piecemeal approach to restructuring mortgages may not be enough. Olivier Garret, CEO of Casey Research in Stowe, Vt., says millions of homeowners could end up in trouble in a deep recession, because they bought houses during a decade when prices essentially doubled even as incomes were flat.
Now, prices are moving back into their historic relationship with rents, which will leave many borrowers - whether designated subprime or prime according to credit scores - owing more than their houses are worth.
“Look at the scope of the problem,” says Garret.
Will banks play ball?
New York University finance professor Stephen Figlewski sees another issue, which is that some lenders and mortgage investors still may not want to restructure their loans. Modifications are typically billed as being less costly than foreclosures, particularly given the poor resale prospects for seized houses in the glutted housing markets of today. Even so, some may prefer to hold out rather than accept losses now.
“Incentivizing lenders to restructure loans is fine,” says Figlewski. “But it’s not making them do it.”
Figlewski says it’s tough to devise a housing rescue plan in large part because there’s no consensus on how the burden of falling house prices should be shared.
Should lenders and investors have to take substantial losses, as envisioned in, for instance, the FHA Secure refinancing plan that was enacted earlier this year? Or should the government consider an approach that would guarantee mortgage payments across the board, and then leave taxpayers on the hook for losses taken in any mortgage restructurings?
Either way, there’s more pain ahead for both lenders and homeowners. Even after the declines of recent years, the cost of buying a house in many areas remains well above the price of a comparable rental.
“The underlying value isn’t there,” says Garret of Casey Research. “A repricing of housing assets is absolutely necessary.” To top of page
By Colin Barr, senior writer
LAST UPDATED: OCTOBER 24, 2008: 9:49 AM ET
Free government foreclosure listings information
November 7th, 2008
This is a question that is best answered by asking yourself, who will service you better. In most cases, both will be suited for the work. The attorney may cost more, but they both can do a superb job of helping you with any of your property tax issues. The consultant may be dedicated to your particular case, where an attorney may have many clients to work with at one time. The choice is really up to what you want and who will make you feel better about doing the work. Most consultants work with their own appraisers, which makes it easier to get the results you need faster than if an attorney, has to wait for a company to become available.
In either case, you can choose someone that is qualified to help you dispute your property tax bill or any other issues you may have with the bill. Keep in mind that if you use an attorney or a tax consultant, you will still have to pay them to represent and help you with the process whether you win your appeal or not. This is true in almost all cases, unless you find a company or attorney that guarantees results or you do not pay. This is however very rare for professionals that are established in the business and have a reputable business practice.
September 24th, 2008
Wildfires often begin unnoticed. They spread quickly, igniting brush, trees and homes. Reduce your risk by preparing now. Meet with your family to decide what to do and where to go if wildfires threaten your area.
- Contact your local fire department, health department or forestry office for information on fire laws. Make sure that fire vehicles can get to your
home. Clearly mark all driveway entrances and display your name and address.
- Report hazardous conditions that could cause a wildfire.
- Teach children about fire safety. Keep matches out of their reach.
- Post fire emergency telephone numbers.
- Talk to your neighbors about wildfire safety.
- Design and landscape your home with wildfire safety in mind. Select materials and plants that can help contain fire, rather than fuel it. Use fire resistant or non-combustible materials on the roof and exterior structure of the dwelling. Or treat wood or combustible material used in roofs, siding, decking or trim with UL-approved fire-retardant chemicals. Plant fire-resistant shrubs and trees. For example, hardwood trees are less flammable than pine, evergreen, eucalyptus or fir trees. Create a 30-50 foot safety zone around your home Within this area, you can take steps to reduce potential exposure to flames and radiant heat. Homes built in pine forests should have a minimum safety zone of 100 feet.
- Make sure to have adequate Home Insurance.
May 14th, 2008
A new home is exciting on a number of levels, of course, but one of the nicest bonuses is that buying a new home affords a perfect excuse to throw a party. Then, especially if you haven’t entertained in a long time, it’s possible that your housewarming party will rekindle your desire to have guests over on a regular basis for friendly gatherings.
It doesn’t take a lot of capital to throw your first party. In fact, a housewarming party can be very informal, because by definition, you’ve just moved in and haven’t gotten completely settled into your new home. That takes a great deal of the pressure off, because your guests won’t expect more than a good time out by the grill with something to drink and eating supper off paper plates. That type of gathering isn’t going to strain the budget much.
Guest List
Keep your initial guest list manageable, and make sure the people you’re inviting have enough in common to be able to mingle comfortably. It’s best to invite folks who already know each other. A guest list of about a dozen is your best bet for your first attempt at throwing a party.
Invitations
Give everyone a couple weeks’ notice. You can print up invitations if you’d like. They’re not expensive anymore, and can easily be done on any home computer and printer. You might follow up with an email as the day gets closer, to remind everyone. You could also ask them to shoot you back an email to let you know if they’re coming. Written invitations usually get a better response than telephone calls.
Clean and Supply
Even if you just moved in, you want to clean your house well and make sure the bathrooms are well stocked with supplies, including toilet paper, soap, and towels. Vacuum the house and furniture, especially if you know that some of your guests are subject to allergies.
Outside Preparations
Before the guests arrive, put your own vehicles into the garage to give everyone lots of parking space. Keep obstacles such as lawn mowers, kids’ bikes, and skateboards out of the way to avoid anyone tripping over them. Add some colorful flowers in pots near the front door. For a nighttime party, add some white party lights around the doorway.
Enjoy Your Housewarming Party!
Greet every guest at the door and show them where to put coats and other items. It will also bring them up to speed quickly and comfortably, and let them know you’re glad they came. Give them a brief tour of the home, and then show them to where the main section of the gathering will be held. This will help ease them into the swing of things before you turn them loose with those folks who are already there.
As the party goes on, mingle. It’s your responsibility as the host to make sure everyone feels welcome and pampered. Move around and ask if your guests need a drink refilled or anything else. But the key is to have fun! If you’re having a good time, your guests will probably enjoy themselves, too–and your housewarming party could be the beginning of a whole new era of entertaining in your new home.
Copyright © 2006 Jeanette J. Fisher
Jeanette Fisher, author of real estate investing and interior design books available on Amazon, offers free entertaining tips and holiday decorating tips at http://joyholidays.com
May 7th, 2008
Owning a home means money management and good sense. The first step is to sit down and take a hard look at your finances. Then decide to purchase a home where the down payment and mortgage will be what you can afford. Stay well within your means. If possible consult a finance professional and consider putting down a greater down payment.
Cost factors will include: total cost of home; maximum monthly housing cost (approximately 32% of your gross monthly income); and monthly debt load (not more than 40% of your gross monthly income). Try and keep the debt ratio as low as possible.
A reduced monthly mortgage payment is a dream come true for just about everyone. There are many ways in which one can do this:
• Since interest rates keep changing you would need to keep a track of changes and opt for refinance at a lower rate when the time is right. This would reduce your outlay considerably. Do the calculations to determine your savings after paying closing costs and other fees.
• Consider changing from a short term mortgage to a long term mortgage. This will tide you over the financial crunch and enable you to pay lower monthly payments. If your situation strengthens you could always foreclose the loan.
• Request for cancellation of the insurance you are paying to secure your mortgage. Once 20% of your loan is settled and you have established a good credit history ask the lender to wave payment towards the insurance. This will help reduce your monthly outlay.
• Find out where lower homeowner insurance rates are being offered. You will succeed in reducing your PITI payment, principal, interest, tax, and insurance payment.
• Check your calculations regularly make sure all adjustments are being made correctly.
• Choose a mortgage that offers a degree of flexibility. In this interest is paid only on the balance outstanding every day. This means you can pay off the mortgage in accordance to your earnings.
• Consider an accelerated equity plan or biweekly payments. This will reduce your burden quicker and yield big benefits.
• Study the details of your mortgage; find out what constitutes the principal and what the interest. Every month try and pay a little more than the amount due to be adjusted towards the principal. By reducing the principal you will save considerable outlay of funds as interest.
• Try variable interest or short term loans. Find out about ‘teaser rates”, loans which attract a lower interest for asset period.
• Consolidate your loans into a single loan with lower payments. Study all the loans, home, car, education, and so on. Make a table and analyze the outlay. Consult a mortgage specialist and find out what consolidation will mean and how much it will reduce your monthly payments by.
A home loan or mortgage is a debt that can be long term and a burden. Advisable is to pay off the mortgage as early as possible. Handle your finances wisely by keeping an eye on interest rates, insurance, and loan disbursements.
Paul Wilson is a freelance writer for http://www.1888Discuss.com/home-improvement/, the premier REVENUE SHARING discussion forum for Home Improvements Forum including topics on buying, selling and insuring, automobile, electronics, electronics and more. He also freelances for the premier Mortgage site http://www.1888Mortgages.com
April 6th, 2008
There has been so much fraud discovered in the FHA program allowing gift funds for downpayment that Lenders and borrowers are required to absolutely document every step of the gift transaction to prove it was legitimate.
Here’s how it works: FHA allows the required downpayment to be a gift from someone who would logically be concerned about housing for the borrower. This means parents, siblings, other close family members. It can also mean employers in some circumstances, or even very close friends or roommates if the relationship can be verified.
Does “relationship be verified” sound like an invasion of privacy? It is often viewed that way, but the spirit of the HUD regulation is that unallowable donors be prevented at all costs from participating in the gift. Let’s explore what HUD/FHA is actually trying to accomplish so we can make better decisions about how to document the gift funds.
It has been proven statistically that homeowners with zero funds in the transaction are more likely to default on the loan and suffer foreclosure. An FHA transaction is already set up to require very little down; often the 3-5% required is less than a security deposit on a rental unit.
If a Realtor or Builder or Property Seller were to give the Homebuyer the gift for the downpayment in order to make the deal go through, then all parties involved would benefit in some way from the transaction (commission, sale, new home), but the new Homeowner would come away with very little regard for the responsibility of ownership.
Buying and maintaining a home costs something. There is nothing essentially wrong with getting into a home for zero$ down, but you must be financially prepared to continue living there. If people who will profit from the deal are allowed to use some of their profit to leverage unqualified owners into homes, defaults and foreclosures will increase and the Housing Insurance fund will suffer.
OK, that’s the reasoning behind the rules and regs. But HUD / FHA are there to promote Affordable Housing, so there must be allowances for legitimate circumstances. That is where the gift from family comes in. It is assumed that when a family member gives a gift of downpayment funds, they are aware of the financial circumstances of the buyer and are also willing and able to help out if need be.
There is even a provision for family members LENDING the buyer the downpayment, as long as the repayment terms are formally stated in writing and the payment terms are included in the buyers debt ratio for qualifying purposes.
Now it’s time for documenting the transaction. The Lender is going to require (based on HUD / FHA regulations) that every step of the transaction be verified as happening exactly as represented. The loan file must have:
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A gift letter written and signed. It must say exactly what FHA rules call for, so wait until the Lender provides you with the right form.
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Proof that the donor has the $$ money to give and that it truly belongs to them. This can be a Verif from the Bank or a copy of a bank statement showing the funds in the account longer than just recently. (This is where you begin to prove that the Realtor, Builder, or Seller did NOT give the money to Mom and Dad to give to you).
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Trail the $$ funds as they move from Donor’s account to your account or to the Title Company to hold in escrow. This is no time to play games. The check should be from the same account as above. If it is a certified or cashiers check, it will have the name of the Remitter on it. The actual transfer of the $$ is the most critical element of proof.
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Title Companies and Escrow Agents are required by Federal Law to verify that nothing sneaky happens at the closing table to undo any of the above items. The Realtor, Builder, or Seller can NOT pay Mom and Dad back at closing. Neither can you. No side deals.
It is up to you to make sure you don’t commit Mortgage Fraud. There are abundant programs available now to assist Homebuyers with downpayment funds. When fraud gets out of control, those programs routinely get cut as a means to fix the problem. This hurts everyone, including you.
If you need assistance and you do not have a family member who can gift funds to you, look into City programs you might qualify for. Many communities have Development agencies who work closely with HUD to create programs for helping buyers get homes. Another source of downpayment funds could be a Non-Profit Agency approved by HUD / FHA to “gift” funds. Ask your lender or Realtor when you are Prequalifying for a loan.
Judi Moore authors Ask The Underwriter at 2rHouse.org and personally answers questions from readers about FHA mortgages and mortgage advice in general.
March 29th, 2008
Did you know that you can save money by having an energy efficient house? And you can facilitate this by getting a loan to improve the energy usage of the house. It is known as an Energy-Efficient Mortgage or EEM and many lenders offer them to home buyers with energy conservation in mind. You can check with banks and other institutions who can help guide you in the right direction in finding this great opportunity.
In order to qualify for an EEM, you must have your house rated for its energy usage. This energy rating evaluates the entire structure as a whole and does not consider who is living in it, meaning the assessment is not based on personal behavior. The energy rating literally assesses the amount of energy used based on the type windows that are installed in the home, the amount and type of insulation, as well as the appliances your home uses. It even looks at the type and quality of major energy users such as cooling and heating systems. The better quality the structure and the least amount of air leakage in ducts, the better the energy rating the house will get.
Before you get your house rated for energy usage, be sure to ask the lender what type of energy rating they want to you to get. A very common rating is the Home Energy Rating System or HERS, and you can find companies or individuals who can diagnose a house and give it this rating. The person who does the rating is either a certified rater or energy auditor who uses information gathered from the house, inputs it in a computer program, and then produces a report. This report is used to rate the house and give it a score from 1-100. There is then a scale of 5 stars that correspond to the amount of points the house has earned.
Not only does this report assess the current energy uses of the house, but will also give suggestions on ways to improve the energy usage of the home by making the necessary improvements on the house. It can go as far as to detail the estimated cost, savings, and break even point for each improvement.
The lender, however, may prefer you to use alternative energy audits that will determine the same type of information that the lender will use to assess the amount and terms of the EEM.
In order to qualify for an energy improvement through an EEM, the improvement must be cost-effective which means that the monthly savings on the utility bills that are generated by the improvement must be greater than the added monthly cost of the energy mortgage. Also, your total savings must be greater than your total costs.
What the EEM is achieving is the ability for a home owner to take out a loan in order to make the necessary home improvements that will save more money than the loan costs itself. There will be considerable long term savings as well, after the loan costs and savings break even.
Actually getting the EEM is like getting a normal mortgage, just there is some additional paperwork and of course information used to determine the loan amount and terms. A facilitator can assist you with making the EEM process run smoothly, making sure everything is completed and filed in a timely manner and taking some of the work off the shoulders of both the home owner and lender.
The home owner has between about 90 and 180 days to have the improvements made to the home. The loan amount, usually about 150% of the total cost of improvements, is placed into an escrow account by the lender and the lender pays the contracting company directly if so requested. This leaves the home owner out of the transaction so he or she will not be responsible for the transaction itself.
An EEM is not only environmentally friendly, but pocket book friendly as well. At the same time that a home owner is saving money, energy is being conserved that could be used elsewhere. The government is in full support of the EEM and will even help finance the energy audit up to $200. This energy audit that determines the house energy rating can cost anywhere from $100 to $350, $200 being the average.
So you think your home could be more energy efficient? And that your energy bills could be much lower than what they are? Consider an Energy-Efficient Mortgage and begin taking steps to getting your home retrofitted for a new life of energy conservation and more money in the wallet. Not only that, you get to experience a more efficient and comfortable home after all the necessary improvements are complete.
John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage/.
March 24th, 2008
Last year I took a trip to the Algarve - it was lush man - seriously nice algarve villa carvoeiro with some really really nice staff that made me feel really at home.
The villa has a really good pool - wi fi in the garden and is only a stones throw away from both the night life, shops and even the beach is within easy walking distance - like 1 minute walk. Truly genius location - I wish I could afford my own villa on the algarve, only I wouldn’t hire it out I would just keep it to myself - maybe even live there every now and again. What you think - worth a punt?
March 20th, 2008
The wonderful city of Bordeaux sits at the head of Aquitaine; a region of South West
France famous for its vineyards, its chateaux and gastronomy. It has been a city
popular with the British for many years and of course this has only increased as the city
begun a process of rejuvenation a few years back - many make comparisons with the
redevelopment of Manchester in England for example. However, those seeking
property for sale in Bordeaux will find an attractive range available to them at relatively
low prices as compared to other major European cities. It is still possible to buy
wonderful townhouses and apartments in the historic central areas of Bordeaux at less
than 250k pounds sterling.
As a provider of marketing services to estate agents with property for sale in Bordeaux
and South West France, David Seymour of Adept Marketing SARL comments: “property
for sale in Bordeaux is a segment of the market which has become increasingly of
interest, not only with the investment community but with those seeking the charm of
this city as a place to live in. Most property for sale in Bordeaux represents good value for money but for how long remains a question. Where else could one find such fine
town houses and apartments in an historic centre of a major European city which has
the beauty of Bordeaux, often starting at around 250k pounds.”
David Seymour is the Managing Director of Adept Marketing SARL, South West France
and cofounder of http://www.seymour-james.com.
March 9th, 2008
The response to this, in many cases, is yes. Locations such as the Costa del Sol nowdays appear over-priced for average budgets on the other hand, there are still lots of deals to be had in many districts of Spain. Flats in the the Costa Blanca are still on sale starting at 100,000 E (£69,750) & villas starting at about 190,000 E (£132,500). In Murcia & the the Costa Almeria property prices are proportionally lower priced with renovation properties commencing around 75,000E (£52,300) & villas starting at about 160,000 E (£111,640). When someone buys off plan make sure that the value of the property builds as the the venture unfolds & nears completion. Folk buying early in the entire building work realise the tops deal & returns on investment.
Property in Spain is still rising in value and with by far the simplicity of access from every European airports it perseveres in being by far the most favored place for every year sun. It may well be a shrewd investment, with by far the further reward of fabulous vacations or a perfect location for permanent living quarters.
There are still appealing sections of Spain that the travellers & the investors haven’t discovered. For example the Alpujarras region of southern Spain is a spectacular, mountained place which is a bounty of unknown peace & incredible prices. The sun kissed strands of Costa Tropical aren’t far away & airport access is simple via Granada or Almeria.
Stretching southwards from the foot hills known as the Sierra Nevada, the Alpujarras contains the region’s capital city, the seaside community known as Almeria, as its south east border, with the seaside community known as Motril in Granada making up the south-western cut-off. The locality contains a rich contrast in weather within a small range - you might be lazing on a sub tropical beach only twenty minutes from your abode or you could be skiing on the snows known as the Sierra Nevada only 2 hours distant, depending on your mood and the time known as year! Always shop around and check out property in spain with Property Line
Property values in the locale are nowdays at astonishingly large hights for the country. A village home in the region of Valor demanding restoration for 26,000 euros (less than £20,000). A 2 bed renovated home in the vicinity for 155,000E a hundred and eight thousand. A 3 thousand m2 building site for 26,000E (less than £20,000). Brand new 2 bed apartments for about 85,000E fifty nine thousand pounds. Cortijos demanding renovation for roughly 50,000 euros 35 thousand pounds. Restored cortijos for roughly 100,000E (£69,780). Have your own finca constructed for about 120,000E (£83,750) or even obtain a fully functioning commercial olive growing farm - 24 hectares for 495,000E (£345,450). There are chances to obtain hotels, restaurants or even bed & breakfast businesses to afford you a functioning income in this up and coming locale favored by the Spanish population for their time-off - and all this at values the remainder of the country has forgotten about.
Investors would do well to act swiftly though. News of this once secret locale is coming out. Costs are starting to rise and so in the next two or three years the real bargains here will probably be a thing of the past.
January 12th, 2008
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