Florida builders are buying land to build smaller and less expensive houses. Since the land is being offered at a fairly low price, the builders can buy it and build homes that can compete against the numerous foreclosures. Some analysts are stating that buyers are showing interest in these new homes because they feel that buying a foreclosure is too time consuming, complicated, and more expensive than they had planned. What do you think? Would you rather buy a smaller new home or a larger foreclosed home?
July 1, 2010
March 11, 2010
Foreclosure Rate across the Nation has dropped!
The foreclosure rate fell 2 % nationally in the month of February in a monthly comparison, according to a report released by Reatly Trac. The total number of repossessions dropped to 78,683 compared to the 87,648 in January. There are many reasons that could be linked to the drop in the foreclosure rate that are being taken into consideration by economists.
One of the main concerns is the foreclosure prevention programs. While lenders are determining whether or not the distressed home owner qualifies for the mortgage modification program, the home owner is not put into default at that time, temporarily affecting the status of the foreclosure. Which would mean the report by Realty Trac could be “artificially depressed.” Due to this fact, it is possible that the numbers of foreclosures in March could be higher than would be expected.
Six of the states across the nation accounted for 60% of all of the foreclosures filings, those state were Arizona, California, Florida, Illinois, Michigan and Texas.
February 22, 2010
Is the Foreclosure Crisis Looking Better?
The answer to that is “Yes”!! Even though the foreclosure situation is still an issue, it appears that less people are faltering on their home loans. According to the Seattle Times, the Mortgage Bankers Association stated the percentage of homeowners missing only one loan payment dropped .2% in the 4th quarter of 2009 from the 3rd quarter. The Nevada Appeal printed that numbers are down for the first time in 3 years of borrowers that are delinquent on at least one payment but where the foreclosure process has not yet begun. These are very good indicators that recovery is in sight!
February 2, 2010
A Change for the “Anti-Flipping Rule”
As of February 1, 2010, the “anti-flipping rule”, also known as “seasoning”, has changed. FHA will now insure mortgages on homes where the seller has owned it less than 90 days. Investors acquire homes, fix them up, and put them on the market. Buyers who are eligible for FHA financing used to have to wait for the seller to own the property for 90 days. If the buyer finds the home they want they will now be able to submit an offer when they are ready. Hopefully this change will move many of the foreclosures that are not being maintained and sitting unsold in our neighborhoods.
Fannie Mae helps to Cover Closing Costs
In an effort to clear out the tens of thousands of properties that Mortgage Giant, Fannie Mae has in their inventory, the company announced last week that it will begin to provide aid towards the closing costs for homebuyers that purchase foreclosed homes.
Last year Fannie Mae created the HomePath website to help sell the continuous growing number of foreclosures. The offer to pay for closing costs is only applicable to qualified homes located on the website. Any buyer that closes on the purchase of one of these homes by May 1, 2010 may be eligible to receive 3.5% of the closing costs or an amount that is equal to the purchase of new appliances.
According to Terry Edwards, the executive vice president of Credit Portfolio Management, “Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover.”
October 5, 2009
The Neighborhood Stabilization Program is Tougher than you Think
The Neighborhood Stabilization Program, a $3.9 billion federal program was created this year with the intention of aiding neighborhoods during the economic crisis. The program consists of giving money to the individual state and local governments for the sole purpose of acquiring and repairing properties that have been abandoned, however the program has run into a bit of a snag. These abandoned properties are being purchased so fast that officials are having difficulty acquiring them, which leaves them unable to use the money on the projects that the money was allotted for by the fall deadline of 2010.
Before officials receive any of the government funds, the U.S. Department of Housing and Urban Development (HUD) must be informed of exactly where the funds will be going. If the funds are not used for the purpose that they were accepted for by the end of fall of next year, local governments will lose their funding.
The lenders are adding to the problem by selling the homes to investors and first-time homebuyers that are scooping up all of these distressed properties, while local and state officials are working towards acquiring them at the required 1% discount to the appraised value.
The goal of the program was to stabilize communities that were over-run with foreclosures and abandoned properties, if properties are being purchased by investors, first-time homebuyers or local officials, than these communities are being revitalized; and that was all that this program was about.
September 23, 2009
Home Prices are Rising!
According to the Federal Housing Finance Agency, home prices rose .3% in July 2009 compared to June of 2009.
Although the index is still 4.2% below levels that were seen the year before, this is just one more sign that the housing industry is beginning to stabilize. Typically the index bases is figures on loans that are guaranteed or owned by mortgage giants, Freddie Mac and Fannie Mae.
Some economists believe that the prices will begin to drop again if the amount of foreclosures within the inventory begins to overtake the home sales, a scenario that is believed to occur once the First-time homebuyer’s tax credit program expires on November 30 of this year.
According to Nicholas Tenev, Barclays Capital economist, “We think house price indexes are likely to edge somewhat lower in the fall when foreclosures become a larger share of home sales.”
August 20, 2009
Homes prices are the same as 20 years ago
According to the National Association of Home Builders (NAHB), a family making $64,000 a year, the nation’s median income, could afford to purchase 72.3% of all the homes sold in the nation during the second quarter of 2009. This is the first time in nearly 20 years that homes have been this affordable! The definition of ‘affordable’, in this case, would mean that a potential homebuyer would devote no more than 28% of their income towards their housing costs.
While this is excellent news for potential homebuyers, the news is ‘not so hot’ for those who are trying to sell their home. According to the Zillow website, over 30% of all the homes that sold during the last quarter were sold for less than what the seller originally paid for the home. Many of the other homes that sold were foreclosures. During the month of July alone, 87,000 homes were repossessed, which is three times the amount of repossessions during the same month, two years ago.
It’s this high number of foreclosures that are bringing the real estate prices down to level a that are enticing to first-time home buyers and investors. Foreclosures often become listed at low prices in an effort to ensure that they sell quickly, however lenders are beginning to list their properties at a price that is comparable to the price that they are coming in at.
August 14, 2009
Foreclosure rates are up again
According to RealtyTrac Inc., foreclosures were up 32% on a year to year comparison, and up 7% when comparing June to July of this year. More than 87,000 homes across the nation foreclosed in July alone, compared to the 79,000 homes the month before. Florida is coming in with the fourth highest foreclosure rate in the country, with Nevada being number one.
There have been signs that the stumbling real estate market is on the road to recovery, however the amount of foreclosures is still a concern, as the homes are being sold at a much lower price, which is in turn dropping neighbor’s home values.
June 2, 2009
Who Takes Care of Foreclosed Properties During a Hurricane in Florida
Today marks the first day of Hurricane Season here in Florida, and the question arises, “Who takes care of battening down the hatches on all the empty, foreclosed homes if a major storm were to threaten the area?” Along the coastal areas, 281,691 homes were in foreclosure during the month of March alone. These unsecured homes would not only be a threat to the suffering real estate market, by lowering the values even more, but could also become a physical threat to nearby homes with flying debris during a large storm.
The thing is, there is no state law that mandates that anyone take care of these houses. The Florida Division of Emergency Management claims that securing foreclosures isn’t a concern; however residents living next door to these foreclosures are a tad bit concerned. One would assume that the bank that has taken possession of the home would be the ones that are responsible for the protection of the home, however, at this time, communities are finding it difficult to get banks to provide simple lawn maintenance to the homes, let alone put up hurricane shutters and secure garage doors.
Florida is not only one of the hardest hit states by the real estate crisis, but also one of the hardest hit states for hurricanes, which leaves the potential for a disaster after a disaster a true concern. Many communities across the state are taking matters into there own hands, through homeowner’s associations, property management companies and even concerned neighbors picking debris up out of the yard. However, to date, there is not true plan that has been set up for these homes.
If you live in a neighborhood dotted with foreclosures, and you are concerned about potential storm hazards, call your county officials and see if they have a plan lined up. They should be able to direct you to the right place.
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