WASHINGTON – March 31, 2010 – A no-down/low downpayment program for rural areas is running out of operational money, jeopardizing sales in some Fla. areas.
Last week, the United States Department of Agriculture (USDA) announced that funding authority for its popular Rural Housing 502 Single-Family Loan Guarantee program would, according to its notice, “likely be exhausted by the end of April 2010.” Once the funding runs out, the USDA will not issue its conditional commitments to homebuyers “subject to receipt of appropriated funds.”
Officially, new appropriated funds don’t become available until October 2010, but the National Association of Realtors® sent letters to Congressional appropriators urging immediate extension of commitment authority for the program. Other real estate interests, such as the National Association of Builders, have also stepped up pressure on Congress.
In a letter sent to every Florida Congressional lawmaker, Florida Realtors® President Wendell Davis told Senators and Representatives that “worthy homebuyers will be left without access to mortgages” from federal inaction. In the letter, Davis protested the lack of funding for Section 502 rural housing and Congress’ failure to extend the National Flood Insurance Program.
“Homeowners and homebuyers in our state/region are already feeling the impact,” Davis said in his letter. “Given the many challenges financial and real estate markets are facing, now is not the time to create another obstacle to real estate transactions.”
However, Congress is now in recess and does not return until April 12, so additional funding cannot appear until at least then. In addition, an increase in funding is not assured for the rural housing program, and homebuyers counting on the loan could be out of luck – especially those homebuyers hoping to use a USDA loan in time to qualify by the April 30 deadline for the federal tax credit of up to $8,000 for first-time buyers and $6,500 for move-up buyers.
Loans are first-come, first-served. With 1,900 lenders offering the loans, time is of the essence for homebuyers who plan to use the funding. When the money runs out, the program stops operations.
Questions should be directed to USDA’s Single Family Housing Guaranteed Loan Division at (202) 720-1452.
© 2010 Florida Realtors®
Wednesday, March 31, 2010
Tuesday, March 16, 2010
Not very good news for Real Estate agents.
Only 22 percent of homebuyers happy with their agent
SACRAMENTO, Calif. – March 16, 2010 – A study by the California Association of Realtors shows a decrease in the number of consumers who say they would use the same real estate agent again to 22 percent in 2009 from 79 percent in 2004. When asked why they would not retain their previous agent, 64 percent said their homes languished on the market and 51 percent were upset that their house fetched less than they had expected.
The study findings show that sellers with unrealistic expectations blame their agents when a transaction does not go as planned, but agents often are indeed at fault for failing to inform sellers about current market realities when it comes to pricing and financing.
In the short term, agents can expect consumers to prefer working with individual agents, believing that a large brokerage cannot provide the personal response and service they so desire. Agents also need to drum up the courage to turn down overpriced listings that likely will not sell.
Over the long term, Realtors must focus on skill, hard work, and the use of technology to provide personal service and deliver the information of most interest to clients. Moreover, agents should immediately respond to calls and e-mails, listen to their prospect’s wants and needs, and make good on their requests.
Source: RISMedia (03/16/10) Parker, Mike
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
SACRAMENTO, Calif. – March 16, 2010 – A study by the California Association of Realtors shows a decrease in the number of consumers who say they would use the same real estate agent again to 22 percent in 2009 from 79 percent in 2004. When asked why they would not retain their previous agent, 64 percent said their homes languished on the market and 51 percent were upset that their house fetched less than they had expected.
The study findings show that sellers with unrealistic expectations blame their agents when a transaction does not go as planned, but agents often are indeed at fault for failing to inform sellers about current market realities when it comes to pricing and financing.
In the short term, agents can expect consumers to prefer working with individual agents, believing that a large brokerage cannot provide the personal response and service they so desire. Agents also need to drum up the courage to turn down overpriced listings that likely will not sell.
Over the long term, Realtors must focus on skill, hard work, and the use of technology to provide personal service and deliver the information of most interest to clients. Moreover, agents should immediately respond to calls and e-mails, listen to their prospect’s wants and needs, and make good on their requests.
Source: RISMedia (03/16/10) Parker, Mike
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Thursday, March 11, 2010
House hunting via real estate apps
NEW YORK – March 11, 2010 – Smart phone apps are becoming increasingly popular among homebuyers, sellers and the real estate professionals who serve them.
Zillow.com, which has a free app, says people are using it to look up 2 million properties a month. In addition to Realtor.com, other popular apps include ones offered by ZipRealty, Coldwell Banker, Better Homes and Gardens, and the Corcoran Group.
The apps provide the same information that Web sites do, but they allow users access without having to lug a computer around. They can make house hunting easier for both practitioners and buyers because the information is so immediately and widely available.
“Within a minute, I had enough information to say it’s not worth driving” 25 miles to inspect the home, says Jon Mirmelli, a buyer who otherwise might have asked his real estate professional to meet him there.
Source: The Wall Street Journal, James R. Hagerty (03/09/2010)
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Locally, you can text the word "CFLGUY" to 87778 and you'll get the Smarter Agent app for this area so you can shop from your GPS enabled cell phone.
Zillow.com, which has a free app, says people are using it to look up 2 million properties a month. In addition to Realtor.com, other popular apps include ones offered by ZipRealty, Coldwell Banker, Better Homes and Gardens, and the Corcoran Group.
The apps provide the same information that Web sites do, but they allow users access without having to lug a computer around. They can make house hunting easier for both practitioners and buyers because the information is so immediately and widely available.
“Within a minute, I had enough information to say it’s not worth driving” 25 miles to inspect the home, says Jon Mirmelli, a buyer who otherwise might have asked his real estate professional to meet him there.
Source: The Wall Street Journal, James R. Hagerty (03/09/2010)
© Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Locally, you can text the word "CFLGUY" to 87778 and you'll get the Smarter Agent app for this area so you can shop from your GPS enabled cell phone.
Wednesday, March 3, 2010
Termite swarming season is here
TALLAHASSEE, Fla. – March 3, 2010 – Termite swarming season gets under way in late February and early March as temperatures begin to warm. Swarming means the termites are leaving their colonies to search for new nesting sites. Florida Agriculture and Consumer Services Commissioner Charles H. Bronson is again warning Floridians to take steps to protect their home. Termites cause about $750 million in property damage in the United States annually.
Termites are most abundant in the southwestern and southern U.S., with the Gulf Coast commonly known as “the termite belt.” Since termites try to avoid light and open air spaces, the insects do their damage behind walls. Many homeowners don’t realize they have a termite problem until swarming season when they see them flying around their homes.
The swarmers are winged, black insects about one-quarter-inch long and look a lot like flying ants. Termites can be categorized into two groups by their nesting sites. The earth-dwelling termites that make tunnels in the ground or build tubes above the earth are called subterranean termites. The second group, the wood-dwelling termites that have no contact with the earth, are called drywood termites.
Florida’s climate makes it especially vulnerable to termites, and they are found throughout the state. Despite this, many homes in the state have no termite protection.
“Prevention is critical in avoiding termite destruction,” Bronson says. “The insects can go undetected for long periods of time while they feed on the wood in a home.” The Florida Department of Agriculture and Consumer Services regulates and licenses pest control companies and conducts regular inspections to ensure the businesses are adhering to the rules and regulations governing pesticides and pest control. Consumers can contact the department to find out whether a pest control company is properly licensed, to find out how many consumer complaints have been filed against a particular business and to learn about the various types of termite control contracts.
Licensed pest management professionals have the expertise to inspect buildings and treat them to prevent an infestation or provide treatment when the insects are found. Termite companies are now required to clearly tell customers if their contract covers both subterranean and drywood termites. Most pest control operations in Florida are licensed but it’s important to check out a business before signing a contract.
Steps that consumers can take to protect their homes from termites include:
• Remove wood piles and other cellulose sources from under and next to homes.
• Have an annual inspection by a licensed professional pest control company.
• Direct water sources, such as air conditioner drip lines and roof downspouts, away from the structure foundation.
• When purchasing a home, carefully check its termite protection history.
• Obtain a termite protection contract and renew it annually.
Bronson said consumers should read a termite protection contract before signing it. Some contracts only require that the company re-treat a home if termites are found. Bronson says it is better to have a re-treat and repair contract that requires the pest control business to repair any damage caused by termites after a home has been inspected and treated.
For information, visit the department’s web site at http://www.FloridaTermiteHelp.org or call (800) 435-7352.
© 2010 Florida Realtors®
Termites are most abundant in the southwestern and southern U.S., with the Gulf Coast commonly known as “the termite belt.” Since termites try to avoid light and open air spaces, the insects do their damage behind walls. Many homeowners don’t realize they have a termite problem until swarming season when they see them flying around their homes.
The swarmers are winged, black insects about one-quarter-inch long and look a lot like flying ants. Termites can be categorized into two groups by their nesting sites. The earth-dwelling termites that make tunnels in the ground or build tubes above the earth are called subterranean termites. The second group, the wood-dwelling termites that have no contact with the earth, are called drywood termites.
Florida’s climate makes it especially vulnerable to termites, and they are found throughout the state. Despite this, many homes in the state have no termite protection.
“Prevention is critical in avoiding termite destruction,” Bronson says. “The insects can go undetected for long periods of time while they feed on the wood in a home.” The Florida Department of Agriculture and Consumer Services regulates and licenses pest control companies and conducts regular inspections to ensure the businesses are adhering to the rules and regulations governing pesticides and pest control. Consumers can contact the department to find out whether a pest control company is properly licensed, to find out how many consumer complaints have been filed against a particular business and to learn about the various types of termite control contracts.
Licensed pest management professionals have the expertise to inspect buildings and treat them to prevent an infestation or provide treatment when the insects are found. Termite companies are now required to clearly tell customers if their contract covers both subterranean and drywood termites. Most pest control operations in Florida are licensed but it’s important to check out a business before signing a contract.
Steps that consumers can take to protect their homes from termites include:
• Remove wood piles and other cellulose sources from under and next to homes.
• Have an annual inspection by a licensed professional pest control company.
• Direct water sources, such as air conditioner drip lines and roof downspouts, away from the structure foundation.
• When purchasing a home, carefully check its termite protection history.
• Obtain a termite protection contract and renew it annually.
Bronson said consumers should read a termite protection contract before signing it. Some contracts only require that the company re-treat a home if termites are found. Bronson says it is better to have a re-treat and repair contract that requires the pest control business to repair any damage caused by termites after a home has been inspected and treated.
For information, visit the department’s web site at http://www.FloridaTermiteHelp.org or call (800) 435-7352.
© 2010 Florida Realtors®
Friday, February 19, 2010
Amendment 4 would create huge ballots
TALLAHASSEE, Fla. – Feb. 18, 2010 – Curious what a ballot would look like should Amendment 4 pass? A sample Orange City one has 47 pages and 488 referendums.
“We knew ballots would be ponderous should Amendment 4 pass, and have made that point many times to Realtors and Floridians,” says Florida Realtors Vice President of Public Policy John Sebree. “This sample ballot, however, is far worse than we imagined. It’s beyond the comprehension of most land use experts, much less the average Floridian.”
The sample ballot looked at a single election, Nov. 8, 2005, in Orange City, Fla., a town in Volusia County. Multiple questions deal with concurrency, water management and technical changes.
Citizens for Lower Taxes and a Stronger Economy Inc. developed the sample ballot for their website, “Vote No on 4.” Florida Realtors and a number of local Realtor associations support the anti-Amendment 4 movement, along with many other groups across the political spectrum.
To find out more about “Vote No on 4” and read the 47-page sample ballot, go to http://florida2010.org/home.php and click on the “Vote on Everything” icon.
© 2010 Florida Realtors®
“We knew ballots would be ponderous should Amendment 4 pass, and have made that point many times to Realtors and Floridians,” says Florida Realtors Vice President of Public Policy John Sebree. “This sample ballot, however, is far worse than we imagined. It’s beyond the comprehension of most land use experts, much less the average Floridian.”
The sample ballot looked at a single election, Nov. 8, 2005, in Orange City, Fla., a town in Volusia County. Multiple questions deal with concurrency, water management and technical changes.
Citizens for Lower Taxes and a Stronger Economy Inc. developed the sample ballot for their website, “Vote No on 4.” Florida Realtors and a number of local Realtor associations support the anti-Amendment 4 movement, along with many other groups across the political spectrum.
To find out more about “Vote No on 4” and read the 47-page sample ballot, go to http://florida2010.org/home.php and click on the “Vote on Everything” icon.
© 2010 Florida Realtors®
Wednesday, February 17, 2010
Some Countrywide customers may get a check
TALLAHASSEE, Fla. – Feb. 16, 2010 – More than 2,700 people will receive checks from a 2008 settlement Florida negotiated with Countrywide Financial Corporation. As part of the settlement, Countrywide is offering foreclosure relief payments to eligible borrowers who returned valid and timely claim forms and releases under a program administered by the Countrywide settlement administrator.
More than $16.9 million will be distributed this week, and each check will be written for just over $6,000.
In July 2008, Attorney General Bill McCollum filed a lawsuit against Countrywide, one of the nation’s largest mortgage companies, for allegedly engaging in deceptive and unfair trade practices. The lawsuit claimed Countrywide put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading. That lawsuit was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.
Eligible homeowners should consider the following:
• Important information: The checks must be cashed on or before May 13, 2010.
• A payment under this settlement may be taxable, and recipients should consult a tax advisor if they have any questions concerning possible tax liabilities.
• Recipients with any questions should contact the settlement administrator, Rust Consulting, toll free at (866) 411‐6987, or http://www.countrywidesettlementinfo.com.
The settlement also includes $4 million to fund a foreclosure defense assistance program. The money will be provided to organizations over the course of two years, and the first funds were distributed in late 2009. The organizations that receive the grants agree to provide free legal assistance to eligible homeowners who face foreclosure but cannot afford an attorney to review their case.
“These resources, both the checks to homeowners and the grants to fund pro bono foreclosure defense assistance, are substantial assets to Floridians,” says Heather Rodriguez of Holland & Knight law firm and president of the Legal Aid Society of the Orange County Bar Association, one of the organizations that received grant funding and has an attorney dedicated to foreclosure defense assistance. “Orange and Osceola counties are both high in foreclosures, and homeowners are struggling.”
Countrywide Chief Executive Angelo Mozilo was also named in the Countrywide lawsuit and the civil case against him is still pending in Broward County Circuit Court. McCollum has also called on Bank of America, the company that acquired Countrywide after the lawsuit was filed, to be more responsive to consumers trying to modify loans and save their home from foreclosure.
© 2010 Florida Realtors®
More than $16.9 million will be distributed this week, and each check will be written for just over $6,000.
In July 2008, Attorney General Bill McCollum filed a lawsuit against Countrywide, one of the nation’s largest mortgage companies, for allegedly engaging in deceptive and unfair trade practices. The lawsuit claimed Countrywide put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading. That lawsuit was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.
Eligible homeowners should consider the following:
• Important information: The checks must be cashed on or before May 13, 2010.
• A payment under this settlement may be taxable, and recipients should consult a tax advisor if they have any questions concerning possible tax liabilities.
• Recipients with any questions should contact the settlement administrator, Rust Consulting, toll free at (866) 411‐6987, or http://www.countrywidesettlementinfo.com.
The settlement also includes $4 million to fund a foreclosure defense assistance program. The money will be provided to organizations over the course of two years, and the first funds were distributed in late 2009. The organizations that receive the grants agree to provide free legal assistance to eligible homeowners who face foreclosure but cannot afford an attorney to review their case.
“These resources, both the checks to homeowners and the grants to fund pro bono foreclosure defense assistance, are substantial assets to Floridians,” says Heather Rodriguez of Holland & Knight law firm and president of the Legal Aid Society of the Orange County Bar Association, one of the organizations that received grant funding and has an attorney dedicated to foreclosure defense assistance. “Orange and Osceola counties are both high in foreclosures, and homeowners are struggling.”
Countrywide Chief Executive Angelo Mozilo was also named in the Countrywide lawsuit and the civil case against him is still pending in Broward County Circuit Court. McCollum has also called on Bank of America, the company that acquired Countrywide after the lawsuit was filed, to be more responsive to consumers trying to modify loans and save their home from foreclosure.
© 2010 Florida Realtors®
Friday, February 12, 2010
Walkaway rather than foreclosure?
NEW YORK – Feb. 11, 2010 – Seeking alternatives to the nation’s struggling foreclosure prevention efforts, federal and mortgage industry officials increasingly are looking for ways to get distressed borrowers to leave their homes voluntarily, without going through the expensive foreclosure process or a messy eviction.
Citigroup, for instance, plans to announce a pilot program on Thursday that would allow delinquent borrowers who don’t qualify for or decline mortgage relief the opportunity to stay in their homes without making payments for up to six months before turning over the keys, in return for keeping the property in good condition. The bank estimates that up to 20,000 borrowers in Texas, Florida, Illinois, Michigan, New Jersey and Ohio could be eligible.
The program is just the latest amid a growing acknowledgment that foreclosure prevention efforts will fail to reach millions of borrowers over the next few years.
“This is a graceful way to move on with their lives instead of being foreclosed on and being evicted from their homes,” said Sanjiv Das, chief executive of CitiMortgage.
The Citigroup plan attempts to address some common industry complaints, including borrowers who leave their homes in disarray after foreclosure, requiring lenders to spend thousands of dollars fixing up the property before putting it on the market. Also, homeowners who owe far more than their homes are worth increasingly are choosing to “strategically default,” even though they can afford to pay their mortgage. The new program gives CitiMortgage more control over when distressed homes are put up for sale, bypassing clogged courthouses that have slowed the foreclosure process in many parts of the country.
By avoiding a glut of foreclosures that could hit the housing market within the next 16 to 18 months, the program – if it is replicated throughout the industry – could help prevent another dip in home prices, Das said.
It would be a more orderly process “than if all of the foreclosed properties came crashing at some point in the cycle,” he said.
Other initiatives have also emerged for borrowers likely to lose their homes. Fannie Mae and Freddie Mac, the mortgage financing companies, developed programs allowing former homeowners to become renters after a foreclosure or other proceedings. As part of its federal foreclosure prevention program, known as Making Home Affordable, the Treasury Department announced late last year that lenders would be eligible for $1,000 in exchange for allowing borrowers to sell their home in a short sale. In such deals, the borrower sells the home for less than the outstanding mortgage, and the lender forgives the difference.
Moody’s Economy.com has forecast that the number of short sales and transactions in which borrowers surrender their deed in lieu of foreclosure will increase more than 50 percent, to about 490,000, this year. That is just a fraction of the 1.9 million homeowners Moody’s has forecast will lose their homes to foreclosure this year, up from 1.7 million last year.
But lenders have struggled to make many of these programs effective. The short sale is often lengthy and cumbersome for homeowners. In some cases, borrowers have second liens on the property, which can hang up the process. And lenders are sometimes suspicious of the potential for fraud if the home is sold cheap to a friend or family member of the borrower.
It’s unclear how rental programs for former homeowners are working. Fannie Mae launched its “Deed for Lease” program in November, offering borrowers a 12-month lease in return for turning over the keys to their former home and maintaining the property. A company spokeswoman said that it was too early to judge the program’s success, but that former homeowners who surrender their deed to avoid foreclosure – numbering nearly 2,000 through the third quarter of last year – would be eligible. Freddie Mac’s year-old program targets former homeowners after their foreclosure, offering them a month-to-month lease. It has not released specific data on how many homeowners have chosen this option.
Citigroup’s program goes further. It targets delinquent homeowners who do not qualify for mortgage relief. During the time the borrower is still in the home, they must continue to pay utilities, but in some cases, the bank may help cover some of the taxes, insurance or homeowner association fees. The borrower would also be eligible for transition counseling to help find a new home, and a minimum of $1,000 to help offset moving costs.
If there is significant demand for the program, Citigroup will expand it, Das said. “There might be complications that we haven’t thought about,” he said. “What happens if they don’t turn over the keys after six months or they don’t maintain their house like we would like them to maintain their house?”
Copyright © 2010 washingtonpost.com
Citigroup, for instance, plans to announce a pilot program on Thursday that would allow delinquent borrowers who don’t qualify for or decline mortgage relief the opportunity to stay in their homes without making payments for up to six months before turning over the keys, in return for keeping the property in good condition. The bank estimates that up to 20,000 borrowers in Texas, Florida, Illinois, Michigan, New Jersey and Ohio could be eligible.
The program is just the latest amid a growing acknowledgment that foreclosure prevention efforts will fail to reach millions of borrowers over the next few years.
“This is a graceful way to move on with their lives instead of being foreclosed on and being evicted from their homes,” said Sanjiv Das, chief executive of CitiMortgage.
The Citigroup plan attempts to address some common industry complaints, including borrowers who leave their homes in disarray after foreclosure, requiring lenders to spend thousands of dollars fixing up the property before putting it on the market. Also, homeowners who owe far more than their homes are worth increasingly are choosing to “strategically default,” even though they can afford to pay their mortgage. The new program gives CitiMortgage more control over when distressed homes are put up for sale, bypassing clogged courthouses that have slowed the foreclosure process in many parts of the country.
By avoiding a glut of foreclosures that could hit the housing market within the next 16 to 18 months, the program – if it is replicated throughout the industry – could help prevent another dip in home prices, Das said.
It would be a more orderly process “than if all of the foreclosed properties came crashing at some point in the cycle,” he said.
Other initiatives have also emerged for borrowers likely to lose their homes. Fannie Mae and Freddie Mac, the mortgage financing companies, developed programs allowing former homeowners to become renters after a foreclosure or other proceedings. As part of its federal foreclosure prevention program, known as Making Home Affordable, the Treasury Department announced late last year that lenders would be eligible for $1,000 in exchange for allowing borrowers to sell their home in a short sale. In such deals, the borrower sells the home for less than the outstanding mortgage, and the lender forgives the difference.
Moody’s Economy.com has forecast that the number of short sales and transactions in which borrowers surrender their deed in lieu of foreclosure will increase more than 50 percent, to about 490,000, this year. That is just a fraction of the 1.9 million homeowners Moody’s has forecast will lose their homes to foreclosure this year, up from 1.7 million last year.
But lenders have struggled to make many of these programs effective. The short sale is often lengthy and cumbersome for homeowners. In some cases, borrowers have second liens on the property, which can hang up the process. And lenders are sometimes suspicious of the potential for fraud if the home is sold cheap to a friend or family member of the borrower.
It’s unclear how rental programs for former homeowners are working. Fannie Mae launched its “Deed for Lease” program in November, offering borrowers a 12-month lease in return for turning over the keys to their former home and maintaining the property. A company spokeswoman said that it was too early to judge the program’s success, but that former homeowners who surrender their deed to avoid foreclosure – numbering nearly 2,000 through the third quarter of last year – would be eligible. Freddie Mac’s year-old program targets former homeowners after their foreclosure, offering them a month-to-month lease. It has not released specific data on how many homeowners have chosen this option.
Citigroup’s program goes further. It targets delinquent homeowners who do not qualify for mortgage relief. During the time the borrower is still in the home, they must continue to pay utilities, but in some cases, the bank may help cover some of the taxes, insurance or homeowner association fees. The borrower would also be eligible for transition counseling to help find a new home, and a minimum of $1,000 to help offset moving costs.
If there is significant demand for the program, Citigroup will expand it, Das said. “There might be complications that we haven’t thought about,” he said. “What happens if they don’t turn over the keys after six months or they don’t maintain their house like we would like them to maintain their house?”
Copyright © 2010 washingtonpost.com
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