Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:
▪ Mortgage rates will stay low. Even with rates climbing — maybe to as high as 6 percent by 2012 — they are still well below where they have been historically.
▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.
▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.
Source: Investopedia, Michele Lerner (12/24/2010)
Thursday, December 30, 2010
Predictions for Housing in 2011
Predictions for Housing in 2011
Will housing values increase in 2011? Fortune.com offers both a bullish and a bearish prediction.
The bulls say: Affordability is at its highest level. Billionaire Warren Buffet is among those who believe this is a sign the slump is about to end. Buffet writes: "Prices will remain far below 'bubble' levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits."
The bears say: It’s not over yet. Housing is still overpriced and inventories are enormous, says Daryl Jones, an analyst at investment research firm Hedgeye. Jones warns that home prices could fall another 15 percent to 30 percent because no one is buying.
Source: Fortune.com, Nin-Hai Tseng (12/27/2010)
Will housing values increase in 2011? Fortune.com offers both a bullish and a bearish prediction.
The bulls say: Affordability is at its highest level. Billionaire Warren Buffet is among those who believe this is a sign the slump is about to end. Buffet writes: "Prices will remain far below 'bubble' levels, of course, but for every seller (or lender) hurt by this there will be a buyer who benefits."
The bears say: It’s not over yet. Housing is still overpriced and inventories are enormous, says Daryl Jones, an analyst at investment research firm Hedgeye. Jones warns that home prices could fall another 15 percent to 30 percent because no one is buying.
Source: Fortune.com, Nin-Hai Tseng (12/27/2010)
Foreclosure Inventory Rises, Rate Drops
The November Mortgage Monitor report released by Lender Processing Services shows that while the number of bank-owned homes continues to drop as loan servicers delay foreclosures in the wake of government investigations, delinquent loans are increasing.
Nearly 2.2 million loans are 90 days or more past due but are not yet in foreclosure. The report also shows that among the one-third of loans that are 90 days or more delinquent, borrowers have not made a payment in a year.
Foreclosure inventories also continued to rise for the fifth straight month as foreclosures continued and sales declined. The inventory of foreclosed properties consisting of jumbo loans was seven times higher than it was in January 2008, and six times higher for agency prime loans.
Other results from the report include:
· Total U.S. loan delinquency rate: 9.02 percent
· Total U.S. foreclosure inventory rate: 4.08 percent
· Total U.S. non-current loan rate: 13.10 percent
· States with most non-current loans: Florida, Nevada, Mississippi, Georgia, New Jersey
· States with fewest non-current loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
Source: Lender Processing Services (12/27/2010)
Nearly 2.2 million loans are 90 days or more past due but are not yet in foreclosure. The report also shows that among the one-third of loans that are 90 days or more delinquent, borrowers have not made a payment in a year.
Foreclosure inventories also continued to rise for the fifth straight month as foreclosures continued and sales declined. The inventory of foreclosed properties consisting of jumbo loans was seven times higher than it was in January 2008, and six times higher for agency prime loans.
Other results from the report include:
· Total U.S. loan delinquency rate: 9.02 percent
· Total U.S. foreclosure inventory rate: 4.08 percent
· Total U.S. non-current loan rate: 13.10 percent
· States with most non-current loans: Florida, Nevada, Mississippi, Georgia, New Jersey
· States with fewest non-current loans: North Dakota, South Dakota, Alaska, Wyoming, Montana
Source: Lender Processing Services (12/27/2010)
HGTV Looking for Makeover Candidates
Anyone who would like to have HGTV roll up in an 18-wheeler and do an instant home makeover should get ready to apply.
Beginning Saturday, Jan. 1, visitors can go to HGTV.com and upload photos of their homes in need of transformation. Winners will receive a high-end home makeover and the chance to appear on HGTV.
HGTV personalities participating in the makeovers include David Bromstad (Color Splash), John Gidding (Curb Appeal: The Block), Genevieve Gorder (Dear Genevieve), Sabrina Soto (Get It Sold and Real Estate Intervention), and Vern Yip (HGTV Design Star). Each week, one designer will pull up to the home selected for a makeover in a specially outfitted HGTV truck.
The series will air during the summer of 2011.
Source: HGTV (12/29/2010)
Beginning Saturday, Jan. 1, visitors can go to HGTV.com and upload photos of their homes in need of transformation. Winners will receive a high-end home makeover and the chance to appear on HGTV.
HGTV personalities participating in the makeovers include David Bromstad (Color Splash), John Gidding (Curb Appeal: The Block), Genevieve Gorder (Dear Genevieve), Sabrina Soto (Get It Sold and Real Estate Intervention), and Vern Yip (HGTV Design Star). Each week, one designer will pull up to the home selected for a makeover in a specially outfitted HGTV truck.
The series will air during the summer of 2011.
Source: HGTV (12/29/2010)
Sunday, December 26, 2010
Tax Deal Has Home Owner Benefits
Daily Real Estate News | December 22, 2010
Home owners were among those who benefited from the tax compromise that President Obama signed last week. Among the most home owner-friendly provisions are:
Deductions for private mortgage insurance: The agreement extends through 2011 a provision allowing home owners to deduct mortgage insurance premiums. To qualify for the full deduction, homeowners must have an adjusted gross income of $100,000 or less. Taxpayers with AGI of $100,000 to $109,000 can claim a partial deduction. Borrowers can’t deduct mortgage premiums on home loans that closed before 2007.
Tax credits for energy-efficient home improvements. Home owners who install insulation, new windows or other energy-saving improvement in 2010 are eligible for a tax credit worth 30 percent of the cost up to a lifetime maximum of $1,500. Improvements must be bought and installed by Dec. 31. Those who delay improvements to 2011 still get a tax credit, but it is capped at $500.
Home owners were among those who benefited from the tax compromise that President Obama signed last week. Among the most home owner-friendly provisions are:
Deductions for private mortgage insurance: The agreement extends through 2011 a provision allowing home owners to deduct mortgage insurance premiums. To qualify for the full deduction, homeowners must have an adjusted gross income of $100,000 or less. Taxpayers with AGI of $100,000 to $109,000 can claim a partial deduction. Borrowers can’t deduct mortgage premiums on home loans that closed before 2007.
Tax credits for energy-efficient home improvements. Home owners who install insulation, new windows or other energy-saving improvement in 2010 are eligible for a tax credit worth 30 percent of the cost up to a lifetime maximum of $1,500. Improvements must be bought and installed by Dec. 31. Those who delay improvements to 2011 still get a tax credit, but it is capped at $500.
9.7% Jump in U.S. Population
Census Shows 9.7% Jump in U.S. Population
The South and West had greatest population gains, according to newly-released 2010 Census data, as total U.S. population tops 300 million for the first time.
The South and West had greatest population gains, according to newly-released 2010 Census data, as total U.S. population tops 300 million for the first time.
Tuesday, December 21, 2010
Colorado is country's ninth-fastest growing state
Colorado is still growing like gang-busters, but not enough to warrant another member of Congress, according to preliminary U.S. Census data released today.
From 2000 to 2010, Colorado was the ninth-fastest growing state in the U.S. by population increase — 727,935 residents — and percentage increase -- 16.92 percent.
U.S. House districts are divided up based not on growth but each state's share of the nation's population of 308.7 million.
Colorado would have needed to add roughly 269,000 more residents to its population of 5.02 million to gain an eighth seat, according to census analysts.
"That was far enough out that you weren't really in the running to get another district," said Kimball Brace, the president of Virginia-based Election Data Services, which analyzes census data nationwide for legislative redistricting, election administration and political needs.
The census hasn't yet released data showing population shifts within the state, which could mean shifts in voter registration and state and federal representation.
Population in reliably Republican rural districts could have shifted to the more politically diverse suburbs and cities, for example.
Preliminary population estimates released last year, indicated Denver County had grown from 554,636 residents in 2000 to 610,345 residents as of July 1, 2009.
Meanwhile, Prowers County on the Eastern Plains fell from 14,483 residents in the 2000 to an estimated 12,082 last year.
Colorado will remain at seven House members, which in January will include three Democrats, all from the Denver-Boulder metro area, and four Republicans.
Colorado's growth, while remarkable, has slowed since the 1990s, when the state grew by a staggering 30.56 percent, or more than 1 million newcomers.
After that census, Colorado added a seventh district that covers parts of Adams, Arapahoe, and Jefferson counties. Republican Bob Beauprez held the seat from 2003 through 2006. Democratic Rep. Ed Perlmutter of Golden replaced him in 2007 and was elected to a third term in November.
While the primary role of the census is to determine government representation and spending, it also drives business, said Dr. Maclyn Clouse, a professor of finance at the University of Denver.
"From the business side of things, growth is a category you want to be in," he said. "It tells the business world this is a state that's still growing, still attracting new residents who want to be here instead of somewhere else, and business investment and jobs are likely to follow.
"I think the news that Colorado is an attractive place to live and do business has gotten out a little bit."
By Joey Bunch
The Denver Post
From 2000 to 2010, Colorado was the ninth-fastest growing state in the U.S. by population increase — 727,935 residents — and percentage increase -- 16.92 percent.
U.S. House districts are divided up based not on growth but each state's share of the nation's population of 308.7 million.
Colorado would have needed to add roughly 269,000 more residents to its population of 5.02 million to gain an eighth seat, according to census analysts.
"That was far enough out that you weren't really in the running to get another district," said Kimball Brace, the president of Virginia-based Election Data Services, which analyzes census data nationwide for legislative redistricting, election administration and political needs.
The census hasn't yet released data showing population shifts within the state, which could mean shifts in voter registration and state and federal representation.
Population in reliably Republican rural districts could have shifted to the more politically diverse suburbs and cities, for example.
Preliminary population estimates released last year, indicated Denver County had grown from 554,636 residents in 2000 to 610,345 residents as of July 1, 2009.
Meanwhile, Prowers County on the Eastern Plains fell from 14,483 residents in the 2000 to an estimated 12,082 last year.
Colorado will remain at seven House members, which in January will include three Democrats, all from the Denver-Boulder metro area, and four Republicans.
Colorado's growth, while remarkable, has slowed since the 1990s, when the state grew by a staggering 30.56 percent, or more than 1 million newcomers.
After that census, Colorado added a seventh district that covers parts of Adams, Arapahoe, and Jefferson counties. Republican Bob Beauprez held the seat from 2003 through 2006. Democratic Rep. Ed Perlmutter of Golden replaced him in 2007 and was elected to a third term in November.
While the primary role of the census is to determine government representation and spending, it also drives business, said Dr. Maclyn Clouse, a professor of finance at the University of Denver.
"From the business side of things, growth is a category you want to be in," he said. "It tells the business world this is a state that's still growing, still attracting new residents who want to be here instead of somewhere else, and business investment and jobs are likely to follow.
"I think the news that Colorado is an attractive place to live and do business has gotten out a little bit."
By Joey Bunch
The Denver Post
Monday, December 20, 2010
10 Reasons to Buy a Home
Enough with the doom and gloom about homeownership. Brett Arends explains why
owning a home is a good thing.
The Wall Street Journal, By Brett Arends
September 16, 2010
Enough with the doom and gloom about homeownership.
Sure, maybe there's more pain to come in the housing market. But when Time magazine starts
running covers that declare "Owning a home may no longer make economic sense," it's time to
say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.
After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet
Home," declared its cover then, as it celebrated the boom and asked: "Will your house make your
rich?"
But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.
1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of
the other buyers have now vanished, as the tax credits on purchases have just expired. We're four
to five years into the biggest housing bust in modern history. And prices have come down a long
way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which
tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has
halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really
matter so much in the long haul.
Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with
remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach
fair value in relation to household incomes. Case-Shiller since then: Down 18%.
2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These
are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop
slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage
rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can
deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell.
Sure, you'll need to do your math. You'll only get the income tax break if you itemize your
deductions, and many people may be better off taking the standard deduction instead. The breaks
are more valuable the more you earn, and the bigger your mortgage. But many people will find
that these tax breaks mean owning costs them less, often a lot less, than renting.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls,
build an extension–zoning permitted–or paint everything bright orange. Few landlords are so
indulgent; for renters, these types of changes are often impossible. You'll feel better about your
own place if you own it than if you rent. Many years ago, when I was working for a political
campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun
selling off public housing to the tenants. "You can tell the ones that have been bought," said my
local guide. "They've painted the front door. It's the first thing people do when they buy." It was
a small sign that said something big.
5. You'll get a better home. In many parts of the country it can be really hard to find a good
rental. All the best places are sold as condos. Money talks. Once again, this is a case by case
issue: In Miami right now there are so many vacant luxury condos that owners will rent them out
for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you
want the best home in the best neighborhood, you're better off buying.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip"
Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat
inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if
you're young and raising a family and thinking about the next 30 or 40 years. In the recent past,
inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But
yields there have plummeted of late. That also makes homeownership look a little better by
contrast.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to
get rich. But if the economy does surprise us all and start booming, sooner or later real estate
prices will head up again, too. One lesson from the last few years is that stocks are incredibly
hard for most normal people to own in large quantities–for practical as well as psychological
reasons. Equity in a home is another way of linking part of your portfolio to the long-term
growth of the economy–if it happens–and still managing to sleep at night.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for
$2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of
people won't. Most, I dare say. Once again, you have to do your math, but the part of your
mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by
building equity. As a forced monthly saving, it's a good discipline.
9. There is a lot to choose from. There is a glut of homes in most of the country. The National
Association of Realtors puts the current inventory at around 4 million homes. That's below last
year's peak, but well above typical levels, and enough for about a year's worth of sales. More
keeping coming onto the market, too, as the banks slowly unload their inventory of unsold
properties. That means great choice, as well as great prices.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is
forecast to grow by more than 100 million people over the next 40 years. That means maybe 40
million new households looking for homes. Meanwhile, this housing glut will work itself out.
Many of the homes will be bought. But many more will simply be destroyed–either deliberately,
or by inaction. This is already happening. Even two years ago, when I toured the housing
slumpin western Florida, I saw bankrupt condo developments that were fast becoming derelict.
And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida
and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply
in your town.
owning a home is a good thing.
The Wall Street Journal, By Brett Arends
September 16, 2010
Enough with the doom and gloom about homeownership.
Sure, maybe there's more pain to come in the housing market. But when Time magazine starts
running covers that declare "Owning a home may no longer make economic sense," it's time to
say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.
After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet
Home," declared its cover then, as it celebrated the boom and asked: "Will your house make your
rich?"
But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.
1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of
the other buyers have now vanished, as the tax credits on purchases have just expired. We're four
to five years into the biggest housing bust in modern history. And prices have come down a long
way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which
tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has
halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really
matter so much in the long haul.
Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with
remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach
fair value in relation to household incomes. Case-Shiller since then: Down 18%.
2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These
are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop
slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage
rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.
3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can
deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell.
Sure, you'll need to do your math. You'll only get the income tax break if you itemize your
deductions, and many people may be better off taking the standard deduction instead. The breaks
are more valuable the more you earn, and the bigger your mortgage. But many people will find
that these tax breaks mean owning costs them less, often a lot less, than renting.
4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls,
build an extension–zoning permitted–or paint everything bright orange. Few landlords are so
indulgent; for renters, these types of changes are often impossible. You'll feel better about your
own place if you own it than if you rent. Many years ago, when I was working for a political
campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun
selling off public housing to the tenants. "You can tell the ones that have been bought," said my
local guide. "They've painted the front door. It's the first thing people do when they buy." It was
a small sign that said something big.
5. You'll get a better home. In many parts of the country it can be really hard to find a good
rental. All the best places are sold as condos. Money talks. Once again, this is a case by case
issue: In Miami right now there are so many vacant luxury condos that owners will rent them out
for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you
want the best home in the best neighborhood, you're better off buying.
6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip"
Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat
inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if
you're young and raising a family and thinking about the next 30 or 40 years. In the recent past,
inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But
yields there have plummeted of late. That also makes homeownership look a little better by
contrast.
7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to
get rich. But if the economy does surprise us all and start booming, sooner or later real estate
prices will head up again, too. One lesson from the last few years is that stocks are incredibly
hard for most normal people to own in large quantities–for practical as well as psychological
reasons. Equity in a home is another way of linking part of your portfolio to the long-term
growth of the economy–if it happens–and still managing to sleep at night.
8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for
$2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of
people won't. Most, I dare say. Once again, you have to do your math, but the part of your
mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by
building equity. As a forced monthly saving, it's a good discipline.
9. There is a lot to choose from. There is a glut of homes in most of the country. The National
Association of Realtors puts the current inventory at around 4 million homes. That's below last
year's peak, but well above typical levels, and enough for about a year's worth of sales. More
keeping coming onto the market, too, as the banks slowly unload their inventory of unsold
properties. That means great choice, as well as great prices.
10. Sooner or later, the market will clear. Demand and supply will meet. The population is
forecast to grow by more than 100 million people over the next 40 years. That means maybe 40
million new households looking for homes. Meanwhile, this housing glut will work itself out.
Many of the homes will be bought. But many more will simply be destroyed–either deliberately,
or by inaction. This is already happening. Even two years ago, when I toured the housing
slumpin western Florida, I saw bankrupt condo developments that were fast becoming derelict.
And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida
and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply
in your town.
Worlds Most Expensive Home 2010
The most expensive house in the world - a billion dollar home.
It’s not completely finished in this photo, but the fully completed version doesn’t look all that different. It's on the:
Pictures of World's Most Expensive Home
Exposed steel and glass was the desired look apparently. Very post modern. And yes, that entire thing is for one family.
Located in Mumbai, the most expensive house in the world is owned (fittingly) by the richest man in India: Mukesh Ambani, age 53. He lives in the $1 billion skyscraper mansion with his wife, three children and 600 servants.
Named Anitlla, the entire structure is 27 stories high, although to be fair the first 6 floors are a 160-car garage.
The amenities are as extravagant as they are endless, but what would you expect from the fourth richest human on the planet? The most expensive house in the world has:
Private gym
Ballroom
50-seat movie theater
Health spa
Several swimming pools
3 helicopter pads
The house, well, building, also features small trees in the residence in an elevated garden with high ceilings.
The big question is this: How many bedrooms are in the 37,000 square meter monolith? That’s 398,264.69 square feet by the way, more space than at the Palace of Versailles.
It’s not completely finished in this photo, but the fully completed version doesn’t look all that different. It's on the:
Pictures of World's Most Expensive Home
Exposed steel and glass was the desired look apparently. Very post modern. And yes, that entire thing is for one family.
Located in Mumbai, the most expensive house in the world is owned (fittingly) by the richest man in India: Mukesh Ambani, age 53. He lives in the $1 billion skyscraper mansion with his wife, three children and 600 servants.
Named Anitlla, the entire structure is 27 stories high, although to be fair the first 6 floors are a 160-car garage.
The amenities are as extravagant as they are endless, but what would you expect from the fourth richest human on the planet? The most expensive house in the world has:
Private gym
Ballroom
50-seat movie theater
Health spa
Several swimming pools
3 helicopter pads
The house, well, building, also features small trees in the residence in an elevated garden with high ceilings.
The big question is this: How many bedrooms are in the 37,000 square meter monolith? That’s 398,264.69 square feet by the way, more space than at the Palace of Versailles.
2 Interesting Facts for the Day
EVERY HOMEY - Of the 51 million households that own a home and have a mortgage, the average outstanding debt is $200,000. There are another 24 million households that own their home free-and-clear (source: Census Bureau). 6/21/10 issue, # 9.
DIDN’T SOLVE THE PROBLEM - 48.4% of home mortgages modified by lenders in the 1st quarter 2009 were 90 days or more delinquent just 1-year later (source: Office of the Comptroller of the Currency). 7/19/10 issue, # 8.
DIDN’T SOLVE THE PROBLEM - 48.4% of home mortgages modified by lenders in the 1st quarter 2009 were 90 days or more delinquent just 1-year later (source: Office of the Comptroller of the Currency). 7/19/10 issue, # 8.
Friday, December 17, 2010
Rising Rates Could Get Buyers Moving
Daily Real Estate News | December 13, 2010 | Share
Rising Rates Could Get Buyers Moving
Ironically, it could be rising interest rates that finally push home buyers off the fence and into the market.
While Congress is debating the tax-cut compromise, the financial markets have interpreted the proposal as a development that will likely push mortgage interest rates higher than they have been for months.
Analysts are predicting that buyers will move quickly when it looks like rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales of Capital Economics.
The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended Thursday, Dec. 9, from 4.46 percent the previous week. The average 15-year rate rose to 3.96 percent from 3.81 percent.
Source: Fortune, Nin-Hai Tseng (12/10/2010)
Rising Rates Could Get Buyers Moving
Ironically, it could be rising interest rates that finally push home buyers off the fence and into the market.
While Congress is debating the tax-cut compromise, the financial markets have interpreted the proposal as a development that will likely push mortgage interest rates higher than they have been for months.
Analysts are predicting that buyers will move quickly when it looks like rates are going up and are unlikely to come down. "Once people see this might actually be the bottom, they’ll go for it," says Paul Dales of Capital Economics.
The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended Thursday, Dec. 9, from 4.46 percent the previous week. The average 15-year rate rose to 3.96 percent from 3.81 percent.
Source: Fortune, Nin-Hai Tseng (12/10/2010)
Top 20 states by foreclosure rate in November
Here is a list of states with the highest foreclosure rates in November. The ratio shows, for example, that one out of every 99 households in Nevada received a foreclosure notice during this period.
Rate State Ratio of foreclosures to Total properties
rank households in state with filings
1 Nevada 1:99 11,371
2 Utah 1:221 4,279
3 California 1:233 57,378
4 Arizona 1:262 10,384
5 Florida 1:267 32,938
6 Georgia 1:279 14,423
7 Michigan 1:296 15,311
8 Idaho 1:301 2,133
9 Illinois 1:408 12,941
10 Colorado 1:433 4,970
11 Ohio 1:486 10,458
12 South Carolina 1:530 3,876
13 Hawaii 1:585 877
14 Wisconsin 1:607 4,231
15 Oregon 1:658 2,476
16 New Jersey 1:668 5,264
17 Washington 1:686 4,067
18 Virginia 1:711 4,649
19 New Mexico 1:717 1,215
20 Texas 1:718 13,369
Rate State Ratio of foreclosures to Total properties
rank households in state with filings
1 Nevada 1:99 11,371
2 Utah 1:221 4,279
3 California 1:233 57,378
4 Arizona 1:262 10,384
5 Florida 1:267 32,938
6 Georgia 1:279 14,423
7 Michigan 1:296 15,311
8 Idaho 1:301 2,133
9 Illinois 1:408 12,941
10 Colorado 1:433 4,970
11 Ohio 1:486 10,458
12 South Carolina 1:530 3,876
13 Hawaii 1:585 877
14 Wisconsin 1:607 4,231
15 Oregon 1:658 2,476
16 New Jersey 1:668 5,264
17 Washington 1:686 4,067
18 Virginia 1:711 4,649
19 New Mexico 1:717 1,215
20 Texas 1:718 13,369
Foreclosures plunge, but don't cheer yet
CNN Money - - The number of foreclosure notices filed in November plunged 21%, the biggest month-over-month drop ever recorded by RealtyTrac, the online foreclosure marketer. Filings fell 14% compared with November 2009.
Swift Rise in Yields Pushes Up Mortgages
By NICK TIMIRAOS And MARK GONGLOFF
The sudden jump in Treasury yields has driven 30-year mortgage rates above 5%, keeping pressure on the struggling housing market and countering the Federal Reserve's efforts to help the economy.
The average 30-year fixed-rate mortgage hit a six-month high of 5.09% on Thursday, according to a survey by data tracker HSH Associates. A separate survey by Freddie Mac showed rates averaged 4.83% for the week ending Thursday, up from a record low 4.17% just one month ago.
"I've been doing this 15 years, and I've never seen rates rise this fast," said Wade Douroux, president and CEO of Resource Financial Services, a mortgage banking firm in Columbia, S.C.
Rising mortgage rates are one immediate consequence of the unusually large jump in Treasury yields in recent weeks. The yield on the 10-year note, which directly affects mortgage rates, closed Thursday at 3.473%, up from its October low of 2.382%.
The sudden jump in Treasury yields has driven 30-year mortgage rates above 5%, keeping pressure on the struggling housing market and countering the Federal Reserve's efforts to help the economy.
The average 30-year fixed-rate mortgage hit a six-month high of 5.09% on Thursday, according to a survey by data tracker HSH Associates. A separate survey by Freddie Mac showed rates averaged 4.83% for the week ending Thursday, up from a record low 4.17% just one month ago.
"I've been doing this 15 years, and I've never seen rates rise this fast," said Wade Douroux, president and CEO of Resource Financial Services, a mortgage banking firm in Columbia, S.C.
Rising mortgage rates are one immediate consequence of the unusually large jump in Treasury yields in recent weeks. The yield on the 10-year note, which directly affects mortgage rates, closed Thursday at 3.473%, up from its October low of 2.382%.
Energy Tax Credit Deadline Looms
Daily Real Estate News | December 15, 2010 | Share
Energy Tax Credit Deadline Looms
The Dec. 31 expiration of most energy tax credits is driving a mini-boom in home improvements.
The federal tax credit covers 30 percent of the cost of various conservation upgrades, up to maximum of $1,500. In many states, it can be combined with state and energy company credits to potentially double the credit.
Congress is considering a smaller incentive for next year. Currently, the proposed new credit would cover 10 percent of the cost of conservation upgrades to a maximum of $500. The measure has passed the House, but there is no guarantee that it will pass the Senate.
Source: The News & Observer (Raleigh-Durham, N.C.), John Murawski (12/14/2010)
Energy Tax Credit Deadline Looms
The Dec. 31 expiration of most energy tax credits is driving a mini-boom in home improvements.
The federal tax credit covers 30 percent of the cost of various conservation upgrades, up to maximum of $1,500. In many states, it can be combined with state and energy company credits to potentially double the credit.
Congress is considering a smaller incentive for next year. Currently, the proposed new credit would cover 10 percent of the cost of conservation upgrades to a maximum of $500. The measure has passed the House, but there is no guarantee that it will pass the Senate.
Source: The News & Observer (Raleigh-Durham, N.C.), John Murawski (12/14/2010)
10 States Losing the Most Residents
Daily Real Estate News | December 17, 2010 | Share
10 States Losing the Most Residents
Using data from Moody’s Economy.com, Forbes identified the top-10 states where more residents are leaving than arriving.
The factors that encourage outbound migration from these states are mostly economic — high employment and high cost of living — although both Louisiana and Mississippi have been affected by natural disasters.
The 10 states that have said goodbye to the most residents are:
1. New York
2. Illinois
3. Ohio
4. Nebraska
5. Kansas
6. Iowa
7. Louisiana
8. North Dakota
9. South Dakota
10. Mississippi
10 States Losing the Most Residents
Using data from Moody’s Economy.com, Forbes identified the top-10 states where more residents are leaving than arriving.
The factors that encourage outbound migration from these states are mostly economic — high employment and high cost of living — although both Louisiana and Mississippi have been affected by natural disasters.
The 10 states that have said goodbye to the most residents are:
1. New York
2. Illinois
3. Ohio
4. Nebraska
5. Kansas
6. Iowa
7. Louisiana
8. North Dakota
9. South Dakota
10. Mississippi
Condos Face FHA Deadlines
Daily Real Estate News | December 13, 2010 | Share
Condos Face FHA Deadlines
An estimated 2,200 condominium projects nationwide last week lost their eligibility for Federal Housing Administration-guaranteed sales and refinancing.
Unless condo officials take action, another 23,000 residential condos with housing units numbering in the tens of thousands will lose their eligibility by spring. That means that buyers of units in these buildings won’t be eligible for FHA financing.
This situation was the result of an effort by the FHA to guarantee that condos and their underlying home owners associations have adequate budgets, legal documents, and other things that lead to financial stability.
In 2009, the FHA spelled out tough standards that required that condo projects approved for FHA financial before 2007 have their approvals renewed by Dec. 7, 2010. About 25,000 projects missed the cutoff. Because there were so many, the FHA extended the deadline, setting new deadlines through out 2011. The only losers were the 2,200 projects that had the oldest approvals.
The FHA urges all condominium owners to get in touch with their associations and push them to meet the revised deadlines.
For more information, or to check the status of a condo project, visit (select by state): https://entp.hud.gov/idapp/html/condlook.cfm
Source: Charlotte Observer, Kenneth R. Harney (12/11/2010)
Condos Face FHA Deadlines
An estimated 2,200 condominium projects nationwide last week lost their eligibility for Federal Housing Administration-guaranteed sales and refinancing.
Unless condo officials take action, another 23,000 residential condos with housing units numbering in the tens of thousands will lose their eligibility by spring. That means that buyers of units in these buildings won’t be eligible for FHA financing.
This situation was the result of an effort by the FHA to guarantee that condos and their underlying home owners associations have adequate budgets, legal documents, and other things that lead to financial stability.
In 2009, the FHA spelled out tough standards that required that condo projects approved for FHA financial before 2007 have their approvals renewed by Dec. 7, 2010. About 25,000 projects missed the cutoff. Because there were so many, the FHA extended the deadline, setting new deadlines through out 2011. The only losers were the 2,200 projects that had the oldest approvals.
The FHA urges all condominium owners to get in touch with their associations and push them to meet the revised deadlines.
For more information, or to check the status of a condo project, visit (select by state): https://entp.hud.gov/idapp/html/condlook.cfm
Source: Charlotte Observer, Kenneth R. Harney (12/11/2010)
Homeowners Recoup More with Exterior Replacement Projects, REALTORS® Report
Homeowners Recoup More with Exterior Replacement Projects, REALTORS® Report
Posted By susanne On December 15, 2010 @ 4:20 pm In Home Owner News,Home Value News,Homeowner's Toolkit,Luxury Real Estate,Real Estate,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace,Today's Top Story,Today's Top Story - Consumer | Comments Disabled
[1]RISMEDIA, December 16, 2010—As part of the 2010-11 Remodeling Cost vs. Value Report, REALTORS® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time. “This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but are also among the least expensive improvements for a home,” said National Association of REALTORS® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for homeowners to work with a REALTOR® through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”
Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1% of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9% of costs. Both projects are small investments that cost little more than $1,200 each, on average. REALTORS® identified these two replacements as projects that can significantly improve a home’s curb appeal.
“Curb appeal remains king—it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.
The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.
REALTORS® provided their insight into local markets and buyer home preferences within those markets. Overall, REALTORS® estimated that homeowners would recoup an average of 60% of their investment in 35 different improvement projects, down from an average of 63.8% last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.
According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70% of costs.
Upscale fiber-cement siding replacement was judged by REALTORS® as the most cost effective among siding projects, recouping 80% of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6% upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8% of costs.
The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2% nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70%. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8%; a backup power generator, recouping 48.5%; and a sunroom addition, recouping 48.6% of costs.
Although most regions followed the national trends, the regions that were consistently estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.
The regions where REALTORS® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont); East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin); West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota); and Middle Atlantic (New York and Pennsylvania).
“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a REALTOR® who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”
Posted By susanne On December 15, 2010 @ 4:20 pm In Home Owner News,Home Value News,Homeowner's Toolkit,Luxury Real Estate,Real Estate,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace,Today's Top Story,Today's Top Story - Consumer | Comments Disabled
[1]RISMEDIA, December 16, 2010—As part of the 2010-11 Remodeling Cost vs. Value Report, REALTORS® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time. “This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but are also among the least expensive improvements for a home,” said National Association of REALTORS® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for homeowners to work with a REALTOR® through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”
Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1% of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9% of costs. Both projects are small investments that cost little more than $1,200 each, on average. REALTORS® identified these two replacements as projects that can significantly improve a home’s curb appeal.
“Curb appeal remains king—it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.
The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.
REALTORS® provided their insight into local markets and buyer home preferences within those markets. Overall, REALTORS® estimated that homeowners would recoup an average of 60% of their investment in 35 different improvement projects, down from an average of 63.8% last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.
According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70% of costs.
Upscale fiber-cement siding replacement was judged by REALTORS® as the most cost effective among siding projects, recouping 80% of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6% upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8% of costs.
The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2% nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70%. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8%; a backup power generator, recouping 48.5%; and a sunroom addition, recouping 48.6% of costs.
Although most regions followed the national trends, the regions that were consistently estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.
The regions where REALTORS® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont); East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin); West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota); and Middle Atlantic (New York and Pennsylvania).
“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a REALTOR® who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”
Wednesday, November 24, 2010
Mortgage Purchase Applications Hit 6-Month High
Mortgage applications to purchase homes increased 14.4 percent last week on an adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey.
The unadjusted Purchase Index increased 9.6 percent compared with the previous week and was down 7.4 percent compared to the same week a year ago.
On a seasonally adjusted basis, this is the highest Purchase Index recorded since the week ending May 7, 2010 in the middle of the tax-rebate push.
“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, the association’s vice president of research and economics.
“The level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the homebuyer tax credit,” Fratantoni concluded.
Interest rates were mixed, with 30-year fixed-rate mortgages rising to 4.50 percent from 4.46 percent and 15-year fixed-rate mortgages decreasing to 3.83 percent from 3.87 percent.
Source: Mortgage Bankers Association (11/24/2010)
The unadjusted Purchase Index increased 9.6 percent compared with the previous week and was down 7.4 percent compared to the same week a year ago.
On a seasonally adjusted basis, this is the highest Purchase Index recorded since the week ending May 7, 2010 in the middle of the tax-rebate push.
“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, the association’s vice president of research and economics.
“The level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the homebuyer tax credit,” Fratantoni concluded.
Interest rates were mixed, with 30-year fixed-rate mortgages rising to 4.50 percent from 4.46 percent and 15-year fixed-rate mortgages decreasing to 3.83 percent from 3.87 percent.
Source: Mortgage Bankers Association (11/24/2010)
7 Trends That Will Drive the Future of Housing
Hanley-Wood's ProSalesOnline.com identifies seven trends that the magazine’s editors believe will have the biggest impact on housing in 2011.
1. Big builders are wringing the extras out of construction costs and dropping the national average cost-to-build 36 percent to $52 per square foot.
2. Starting in 2011, Energy Star will ramp up its efficient design and quality installation standards. To get Energy Star certification, builders will have to install the right insulation, HVAC systems, and other features related to energy efficiency correctly every time.
3. Sheds are the next evolution. As homes get smaller, a separate shed will become a popular home addition.
4. There are 81 million "Echo Boomers" who were born from 1981 to 1999, compared to just 78 million Baby Boomers born from 1946 to 1964. These children and grandchildren of Boomers will drive home-building for years.
5. By 2015, demographers say, more than two out of every five households occupied by Generation Y people born between 1981 and 1999 will be WINKs (women with incomes and no kids).
6. Make room for the "Sandwich Generation" – Baby Boomers living with both their kids and their parents. These families like having two master suites, a second cooking area, and lots of storage.
7. Baby Boomers want to keep working and continue to live where they have always lived. They want a first-floor master bedroom near the washer and dryer and lots of convenient storage.
1. Big builders are wringing the extras out of construction costs and dropping the national average cost-to-build 36 percent to $52 per square foot.
2. Starting in 2011, Energy Star will ramp up its efficient design and quality installation standards. To get Energy Star certification, builders will have to install the right insulation, HVAC systems, and other features related to energy efficiency correctly every time.
3. Sheds are the next evolution. As homes get smaller, a separate shed will become a popular home addition.
4. There are 81 million "Echo Boomers" who were born from 1981 to 1999, compared to just 78 million Baby Boomers born from 1946 to 1964. These children and grandchildren of Boomers will drive home-building for years.
5. By 2015, demographers say, more than two out of every five households occupied by Generation Y people born between 1981 and 1999 will be WINKs (women with incomes and no kids).
6. Make room for the "Sandwich Generation" – Baby Boomers living with both their kids and their parents. These families like having two master suites, a second cooking area, and lots of storage.
7. Baby Boomers want to keep working and continue to live where they have always lived. They want a first-floor master bedroom near the washer and dryer and lots of convenient storage.
Today's Business and The Economy
Saw this quote and thought it was quite befitting...
Every morning in Africa, a Gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed.
Every morning a Lion wakes up. It knows it must outrun the slowest Gazelle or it will starve to death.
It doesn't matter whether you are a Lion or a Gazelle... when the sun comes up, you'd better be running.
Every morning in Africa, a Gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed.
Every morning a Lion wakes up. It knows it must outrun the slowest Gazelle or it will starve to death.
It doesn't matter whether you are a Lion or a Gazelle... when the sun comes up, you'd better be running.
Why Mortgage Lenders Want Tax Returns
Bankrate.com, By Marcie Geffner
September 27, 2010
Shopping for a home mortgage loan? Prepare to hand over real proof of your taxable income.
During the housing boom, lenders rarely required borrowers to provide copies of federal tax returns.
But today, lenders often ask borrowers to turn over entire tax returns, according to Brad Blackwell, national sales manager for Wells Fargo Home Mortgage.
Often people will think they can bring in the first two pages of the tax return, and what they need to bring is the full tax return and all schedules because a person's full income picture is contained in the entire set of documents, not just the first two pages," he says.
Borrowers generally also will be required to sign a Form 4506-T, which allows the lender to retrieve a tax transcript from the Internal Revenue Service.
Joe Metzler, a mortgage specialist at Mortgages Unlimited in St. Paul, Minn., says lenders use the 4506-T tax transcript to compare the borrower's W-2s to his or her reported income. If the numbers match, all is well. If not, the lender will dig deeper.
Why the sudden interest in borrowers' tax returns? The short answer is lenders are looking for income irregularities and evidence of loan fraud.
In most cases, "all aspects of the tax return (will be) examined to determine what the borrower's income is," Blackwell says.
That means the lender not only will look at reported income, but also at other items such as:
Unreimbursed employee business expenses. These so-called "2106 business expenses" typically are subtracted from income, according to Julie Miller, a sales manager at Prospect Mortgage in Irvine, Calif.
Examples include uniforms, union dues, mileage, expenses related to a cell phone used for business, marketing costs and training costs.
"If somebody makes $70,000 to $80,000 a year, but writes off $20,000 in business expenses, that is allowing them to reduce their taxable income, but we have to subtract that for qualifying purposes," she says.
Rental property income. This income must be documented and shown on the tax return, unless the property was purchased in the current calendar year. In that case, the rent must appear on consecutive monthly bank statements, Miller says.
"If you take in $1,000 a month in (rent), but you have $900 a month in expenses for owning the property, then you really only have $100 a month in positive rental income," she says. "And if you take in $1,000 a month, and you don't report that on your tax returns, you can't use that income at all."
Business losses. These include losses incurred by a spouse's business, according to Metzler.
For example, suppose one spouse earns $100,000 per year as an employee. The other spouse has a business that generated a $40,000 loss shown as a write-off on the couple's tax return. The lender will subtract $40,000 from $100,000 to yield a combined taxable income of $60,000. That might not be enough income to qualify for as large a loan as the borrower wanted.
Depreciation expenses. On the flip side, depreciation expense taken on a home office, business equipment or other asset could increase a borrower's loan-qualifying income, according to Blackwell.
"I want to stress 'may,'" Blackwell says. "An underwriter may be able to add that back."
Capital gains. These also may be counted as income -- or not.
"If the capital gain is a one-time event, we probably won't count it as income because the borrower can't show it to be sustainable," Blackwell says.
Too many tax deductions
Lenders' scrutiny of tax returns can present a big challenge for borrowers who are self-employed, according to Peter Ogilvie, president of First Residential Mortgage Corp. in Santa Cruz, Calif.
"Many self-employed borrowers -- real estate agents to shoe store owners -- are having a really difficult time getting loans because their accountants and bookkeepers are trained to minimize their income to save them on taxes," he says.
The solution isn't easy: Taxpayers need to "bite the bullet," to use Ogilvie's expression, and build up their taxable income for two years before they can qualify for a loan. Some may have to forgo deductions to which they believe they are entitled and pay more income tax so they can show more income on their tax return to qualify for a loan.
Borrowers who try to amend a prior year's tax return to show more income after the fact may be disappointed to learn this strategy won't work. Instead, an amended tax return can trigger a loan denial, according to Metzler.
"The very creative loan officer would say, 'Go back and amend your tax return to show some income, so you can qualify,'" he says. "So now there is a new rule that says you cannot qualify for a mortgage if your tax return has been amended."
September 27, 2010
Shopping for a home mortgage loan? Prepare to hand over real proof of your taxable income.
During the housing boom, lenders rarely required borrowers to provide copies of federal tax returns.
But today, lenders often ask borrowers to turn over entire tax returns, according to Brad Blackwell, national sales manager for Wells Fargo Home Mortgage.
Often people will think they can bring in the first two pages of the tax return, and what they need to bring is the full tax return and all schedules because a person's full income picture is contained in the entire set of documents, not just the first two pages," he says.
Borrowers generally also will be required to sign a Form 4506-T, which allows the lender to retrieve a tax transcript from the Internal Revenue Service.
Joe Metzler, a mortgage specialist at Mortgages Unlimited in St. Paul, Minn., says lenders use the 4506-T tax transcript to compare the borrower's W-2s to his or her reported income. If the numbers match, all is well. If not, the lender will dig deeper.
Why the sudden interest in borrowers' tax returns? The short answer is lenders are looking for income irregularities and evidence of loan fraud.
In most cases, "all aspects of the tax return (will be) examined to determine what the borrower's income is," Blackwell says.
That means the lender not only will look at reported income, but also at other items such as:
Unreimbursed employee business expenses. These so-called "2106 business expenses" typically are subtracted from income, according to Julie Miller, a sales manager at Prospect Mortgage in Irvine, Calif.
Examples include uniforms, union dues, mileage, expenses related to a cell phone used for business, marketing costs and training costs.
"If somebody makes $70,000 to $80,000 a year, but writes off $20,000 in business expenses, that is allowing them to reduce their taxable income, but we have to subtract that for qualifying purposes," she says.
Rental property income. This income must be documented and shown on the tax return, unless the property was purchased in the current calendar year. In that case, the rent must appear on consecutive monthly bank statements, Miller says.
"If you take in $1,000 a month in (rent), but you have $900 a month in expenses for owning the property, then you really only have $100 a month in positive rental income," she says. "And if you take in $1,000 a month, and you don't report that on your tax returns, you can't use that income at all."
Business losses. These include losses incurred by a spouse's business, according to Metzler.
For example, suppose one spouse earns $100,000 per year as an employee. The other spouse has a business that generated a $40,000 loss shown as a write-off on the couple's tax return. The lender will subtract $40,000 from $100,000 to yield a combined taxable income of $60,000. That might not be enough income to qualify for as large a loan as the borrower wanted.
Depreciation expenses. On the flip side, depreciation expense taken on a home office, business equipment or other asset could increase a borrower's loan-qualifying income, according to Blackwell.
"I want to stress 'may,'" Blackwell says. "An underwriter may be able to add that back."
Capital gains. These also may be counted as income -- or not.
"If the capital gain is a one-time event, we probably won't count it as income because the borrower can't show it to be sustainable," Blackwell says.
Too many tax deductions
Lenders' scrutiny of tax returns can present a big challenge for borrowers who are self-employed, according to Peter Ogilvie, president of First Residential Mortgage Corp. in Santa Cruz, Calif.
"Many self-employed borrowers -- real estate agents to shoe store owners -- are having a really difficult time getting loans because their accountants and bookkeepers are trained to minimize their income to save them on taxes," he says.
The solution isn't easy: Taxpayers need to "bite the bullet," to use Ogilvie's expression, and build up their taxable income for two years before they can qualify for a loan. Some may have to forgo deductions to which they believe they are entitled and pay more income tax so they can show more income on their tax return to qualify for a loan.
Borrowers who try to amend a prior year's tax return to show more income after the fact may be disappointed to learn this strategy won't work. Instead, an amended tax return can trigger a loan denial, according to Metzler.
"The very creative loan officer would say, 'Go back and amend your tax return to show some income, so you can qualify,'" he says. "So now there is a new rule that says you cannot qualify for a mortgage if your tax return has been amended."
Good USA Today Article, Stable Home Prices, Low Rates Could Gas Economy
USA Today, By Stephanie Armour
November 12, 2010
Mortgage rates are hitting another record low just as home prices are firming in more parts of the country, two trends that could help boost the economy.
Potential recovery fuel:
*Rates on 30-year fixed loans averaged 4.17%, down from 4.24% a week ago, Freddie Mac reported Thursday. They've been below 5% since early May.
*Median home prices in the third quarter were up from last year's third period in 77 of 155 metro areas, the National Association of Realtors reports. In 2009's third quarter, only 30 areas showed year- over-year growth.
The improvements in prices came despite a sharp drop-off in sales after the federal home buyers' tax credit expired in the spring.
Low mortgage rates, and at least flat home prices, could give more homeowners the confidence to refinance. If they spend some of what they save on their mortgages, that strengthens the economy.
"In most markets, the crash is over and stability is beginning," says Joel Naroff at Naroff Economic Advisors. "Realtors are saying it isn't great, but it's better than last year. If refinancings get going, that will help consumer confidence."
Prices are rising in areas where foreclosures have not hit very hard, Naroff says.
Still, the housing market is a long way from easy street. Median home prices fell in almost as many metro areas as they rose in NAR's survey. The national median, $177,900, was down 0.2% from 2009's third quarter.
Foreclosures and short sales -- where homes are sold for less than the mortgage balance -- were 34% of third-quarter sales, up from 30% a year ago.
Foreclosures tapered off last month as lenders announced temporary suspensions in the face of legal challenges. But they're likely to accelerate in the first quarter, says Rick Sharga of RealtyTrac.
Mortgage rates follow 10-year Treasury bond yields, and they've been falling since summer when the Federal Reserve began hinting it would buy long-term Treasury bonds to drive down long-term rates and stimulate the economy. The Fed said Nov. 3 it would buy $600 billion in Treasuries by June 30.
Mark Zandi, chief economist of Moody's Analytics, says lower mortgage rates should increase refinancings but won't forestall further price declines. Many homeowners still aren't benefiting from low rates, he says, because they have spotty credit or little equity in their homes.
"The housing market is still really fragile," Zandi says.
November 12, 2010
Mortgage rates are hitting another record low just as home prices are firming in more parts of the country, two trends that could help boost the economy.
Potential recovery fuel:
*Rates on 30-year fixed loans averaged 4.17%, down from 4.24% a week ago, Freddie Mac reported Thursday. They've been below 5% since early May.
*Median home prices in the third quarter were up from last year's third period in 77 of 155 metro areas, the National Association of Realtors reports. In 2009's third quarter, only 30 areas showed year- over-year growth.
The improvements in prices came despite a sharp drop-off in sales after the federal home buyers' tax credit expired in the spring.
Low mortgage rates, and at least flat home prices, could give more homeowners the confidence to refinance. If they spend some of what they save on their mortgages, that strengthens the economy.
"In most markets, the crash is over and stability is beginning," says Joel Naroff at Naroff Economic Advisors. "Realtors are saying it isn't great, but it's better than last year. If refinancings get going, that will help consumer confidence."
Prices are rising in areas where foreclosures have not hit very hard, Naroff says.
Still, the housing market is a long way from easy street. Median home prices fell in almost as many metro areas as they rose in NAR's survey. The national median, $177,900, was down 0.2% from 2009's third quarter.
Foreclosures and short sales -- where homes are sold for less than the mortgage balance -- were 34% of third-quarter sales, up from 30% a year ago.
Foreclosures tapered off last month as lenders announced temporary suspensions in the face of legal challenges. But they're likely to accelerate in the first quarter, says Rick Sharga of RealtyTrac.
Mortgage rates follow 10-year Treasury bond yields, and they've been falling since summer when the Federal Reserve began hinting it would buy long-term Treasury bonds to drive down long-term rates and stimulate the economy. The Fed said Nov. 3 it would buy $600 billion in Treasuries by June 30.
Mark Zandi, chief economist of Moody's Analytics, says lower mortgage rates should increase refinancings but won't forestall further price declines. Many homeowners still aren't benefiting from low rates, he says, because they have spotty credit or little equity in their homes.
"The housing market is still really fragile," Zandi says.
Sunday, November 14, 2010
Sun may set on child’s treehouse
Golden cites safety, illegal construction
By Electa Draper The Denver Post
GOLDEN» Monday is the showdown: A confrontation the creator of a one-of-a-kind treehouse is billing the “Battle of Luna’s Blue Moon Lagoon.”
“We’re going to get confrontational for art,” said Duncan Foss, a sculptor who considers the kids’ hangout he’s constructed for his daughter over a decade to be an art installation.
The city of Golden’s chief building official, Gerry George, begs to differ.
He considers the rambling series of bright blue decks and elevated boardwalks “illegal structures,” not “art.”
The planking wends down a short cliff behind the Foss backyard, past the deck with its fish-filled pond, and still lower to a “hammock hideout” hut nestled among slender trees at the edge of a field.
“She was in diapers when I started building this,” Foss said.
His daughter, Azulluna “Luna” Sincere, is now 11 and is also an artist — a painter.
Their backyard project began as a pirate ship and later evolved into the Tiki Village, which partially burned down in late December because of an exploding tiki torch.
The city first told him to take the whole thing down shortly after the fire, Foss said. He said he’s since removed 80 percent of it, and Luna is now down to one hut.
“We compromised,” Foss said.
The “Blue Lagoon” decks are still replete with painted sharks and starfish, carved seahorses, shells, pink flamingo, nets, lanterns, potted palms and many a nautical flourish.
Over this mutiny-inspiring bounty waves a flag inscribed, “Don’t tread on me.”
Foss said George recently told him that his removal efforts weren’t enough, and if the rest of it wasn’t all gone by 4 p.m. Monday, the city would take action to tear it down.
Foss said he isn’t tearing it down.
“It’s really disturbing to me that it would all be gone,” said Luna, clutching her ferret Carmel while Kelly the dog and “pond guardian” sat at her feet.
“It’s so beautiful,” Luna said. “People can hang out and have fun here — good, old fun outside.”
The city has cited concerns about safety and lack of permits. Golden spokeswoman Karlyn Tilley said Saturday that the structures don’t meet code or safety standards.
She said the city has explained to Foss how to meet code, but he hasn't done so.
Foss said he believes his neighbors will stand beside him Monday. Neighborhood children hang out here in droves — adults, too.
“The world has enough vidiots — kids who only play indoors with video games,” Foss said. “There’s still a few kids with Tom Sawyer and Huck Finn childhoods.”
By Electa Draper The Denver Post
GOLDEN» Monday is the showdown: A confrontation the creator of a one-of-a-kind treehouse is billing the “Battle of Luna’s Blue Moon Lagoon.”
“We’re going to get confrontational for art,” said Duncan Foss, a sculptor who considers the kids’ hangout he’s constructed for his daughter over a decade to be an art installation.
The city of Golden’s chief building official, Gerry George, begs to differ.
He considers the rambling series of bright blue decks and elevated boardwalks “illegal structures,” not “art.”
The planking wends down a short cliff behind the Foss backyard, past the deck with its fish-filled pond, and still lower to a “hammock hideout” hut nestled among slender trees at the edge of a field.
“She was in diapers when I started building this,” Foss said.
His daughter, Azulluna “Luna” Sincere, is now 11 and is also an artist — a painter.
Their backyard project began as a pirate ship and later evolved into the Tiki Village, which partially burned down in late December because of an exploding tiki torch.
The city first told him to take the whole thing down shortly after the fire, Foss said. He said he’s since removed 80 percent of it, and Luna is now down to one hut.
“We compromised,” Foss said.
The “Blue Lagoon” decks are still replete with painted sharks and starfish, carved seahorses, shells, pink flamingo, nets, lanterns, potted palms and many a nautical flourish.
Over this mutiny-inspiring bounty waves a flag inscribed, “Don’t tread on me.”
Foss said George recently told him that his removal efforts weren’t enough, and if the rest of it wasn’t all gone by 4 p.m. Monday, the city would take action to tear it down.
Foss said he isn’t tearing it down.
“It’s really disturbing to me that it would all be gone,” said Luna, clutching her ferret Carmel while Kelly the dog and “pond guardian” sat at her feet.
“It’s so beautiful,” Luna said. “People can hang out and have fun here — good, old fun outside.”
The city has cited concerns about safety and lack of permits. Golden spokeswoman Karlyn Tilley said Saturday that the structures don’t meet code or safety standards.
She said the city has explained to Foss how to meet code, but he hasn't done so.
Foss said he believes his neighbors will stand beside him Monday. Neighborhood children hang out here in droves — adults, too.
“The world has enough vidiots — kids who only play indoors with video games,” Foss said. “There’s still a few kids with Tom Sawyer and Huck Finn childhoods.”
Metro-area apartment-vacancy rates hit 3-year low
Apartment vacancies in metro Denver fell to a
three-year low of 5.3 percent during the third quarter,
according to a report released Wednesday.
The highest vacancy rates were in Arapahoe
County, where rates fell year-over-year from 8.5
percent to 6.7 percent. Rates were lowest in the
Boulder-Broomfield area, where they fell from
5.5 percent a year ago to 3.5 percent during the
third quarter.
Vacancy rates in other counties were Adams,
4.4 percent; Denver, 5.3 percent; Douglas, 4.4 percent;
and Jefferson, 3.9 percent.
Rents increased for the third consecutive quarter,
averaging $913. All counties in the metro
area reported year-over-year increases in average
rents.
Average rents for all counties were: Adams,
$915; Arapahoe, $882; Boulder-Broomfield, $993;
Denver, $905; Douglas, $1,113; and Jefferson, $864.
The Denver Post; Denver Post file photo
three-year low of 5.3 percent during the third quarter,
according to a report released Wednesday.
The highest vacancy rates were in Arapahoe
County, where rates fell year-over-year from 8.5
percent to 6.7 percent. Rates were lowest in the
Boulder-Broomfield area, where they fell from
5.5 percent a year ago to 3.5 percent during the
third quarter.
Vacancy rates in other counties were Adams,
4.4 percent; Denver, 5.3 percent; Douglas, 4.4 percent;
and Jefferson, 3.9 percent.
Rents increased for the third consecutive quarter,
averaging $913. All counties in the metro
area reported year-over-year increases in average
rents.
Average rents for all counties were: Adams,
$915; Arapahoe, $882; Boulder-Broomfield, $993;
Denver, $905; Douglas, $1,113; and Jefferson, $864.
The Denver Post; Denver Post file photo
Blueprint for National Budget Deficit Would Slay Sacred Cows
Under the $3.8 trillion plan,
the home-mortgage tax break
is one that would go.
the home-mortgage tax break
is one that would go.
“Sleeper” House is sold
At foreclosure auction, $1.5 million buys home featured in ’73 Allen film
The futuristic Genesee Mountain house made famous by Woody
Allen’s “Sleeper” movie sold at a foreclosure auction
Wednesday for $1.5 million— $1 more than the minimum bid
placed by the lender that foreclosed on the iconic home.
Denver investor John Dilday, a regular on the auction
circuit who is known by his cronies in the industry as
“the Godfather,” said he already has a number of people
interested in buying the house at 855 Visionary Trail.
Dilday typically buys homes to flip them to other investors.
“I usually don’t buy houses like this unless I have interest,”
Dilday said.
The futuristic Genesee Mountain house made famous by Woody
Allen’s “Sleeper” movie sold at a foreclosure auction
Wednesday for $1.5 million— $1 more than the minimum bid
placed by the lender that foreclosed on the iconic home.
Denver investor John Dilday, a regular on the auction
circuit who is known by his cronies in the industry as
“the Godfather,” said he already has a number of people
interested in buying the house at 855 Visionary Trail.
Dilday typically buys homes to flip them to other investors.
“I usually don’t buy houses like this unless I have interest,”
Dilday said.
Mortgage Rates Continue Record Slide
Freddie Mac reports that rates on fixed mortgages again fell to their lowest levels in decades this past week, with the average interest on 15-year loans dipping to 3.57 percent from 3.63 percent a week earlier, and the average interest for 30-year loans sliding to 4.17 percent from 4.24 percent. That is the lowest since 1971.
The impact of the favorable borrowing costs is being muted somewhat, however, by a high rate of joblessness, foreclosures, and tight credit.
The impact of the favorable borrowing costs is being muted somewhat, however, by a high rate of joblessness, foreclosures, and tight credit.
Thursday, November 11, 2010
Mortgage rates fall to fresh lows this week
Posted: 11/11/2010 08:30:18 AM MSTUpdated: 11/11/2010 09:42:14 AM MST, Denver Post
NEW YORK — Rates on fixed mortgages dropped to their lowest levels in decades this week after the Federal Reserve unveiled a massive bond-buying program to help spur economic growth.
Mortgage buyer Freddie Mac said Tuesday the average rate for 30-year fixed loans fell to 4.17 percent from 4.24 percent last week. That's the lowest on records dating back to 1971.
The average rate on 15-year fixed loans fell to 3.57 percent from 3.63 percent. That's the lowest since the survey began in 1991.
The Fed detailed plans last week to buy $600 billion in Treasury bonds. On Wednesday, the central bank gave more details, saying it plans to purchase $105 billion in Treasurys over the next month. The extra demand means Treasurys will produce lower yields for investors. Mortgage rates tend to track those yields.
Mortgage rates have been at or near historic lows since April as investors, concerned about the health of the global economy, shift their money into Treasurys, pushing down rates on the bonds and consumer and business loans.
While more borrowers have refinanced their home loans, low rates have done little to boost the beleaguered housing market. Would-be buyers remain on the sidelines, too worried about their jobs or unable to qualify for a loan because of tighter credit standards. Others can't sell their own homes before buying another.
Home sales were the worst in decades this summer, and home prices fell in half of U.S. cities in the third quarter, the National Association of Realtors said Thursday.
To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.
Rates on five-year adjustable-rate mortgages fell to their lowest level in at least five years. They averaged 3.25 percent, down from 3.39 percent a week earlier. It is the lowest rate on records dating back to January 2005.
Rates on one-year adjustable-rate home loans were unchanged at 3.26.
The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount.
The average fee for 30-year and 15-year fixed loans in Freddie Mac's survey was 0.8 point. It was 0.7 point for 1-year and five-year mortgages.
Read more: Mortgage rates fall to fresh lows this week - The Denver Post http://www.denverpost.com/breakingnews/ci_16584270?source=rss#ixzz150mrSSzW
NEW YORK — Rates on fixed mortgages dropped to their lowest levels in decades this week after the Federal Reserve unveiled a massive bond-buying program to help spur economic growth.
Mortgage buyer Freddie Mac said Tuesday the average rate for 30-year fixed loans fell to 4.17 percent from 4.24 percent last week. That's the lowest on records dating back to 1971.
The average rate on 15-year fixed loans fell to 3.57 percent from 3.63 percent. That's the lowest since the survey began in 1991.
The Fed detailed plans last week to buy $600 billion in Treasury bonds. On Wednesday, the central bank gave more details, saying it plans to purchase $105 billion in Treasurys over the next month. The extra demand means Treasurys will produce lower yields for investors. Mortgage rates tend to track those yields.
Mortgage rates have been at or near historic lows since April as investors, concerned about the health of the global economy, shift their money into Treasurys, pushing down rates on the bonds and consumer and business loans.
While more borrowers have refinanced their home loans, low rates have done little to boost the beleaguered housing market. Would-be buyers remain on the sidelines, too worried about their jobs or unable to qualify for a loan because of tighter credit standards. Others can't sell their own homes before buying another.
Home sales were the worst in decades this summer, and home prices fell in half of U.S. cities in the third quarter, the National Association of Realtors said Thursday.
To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.
Rates on five-year adjustable-rate mortgages fell to their lowest level in at least five years. They averaged 3.25 percent, down from 3.39 percent a week earlier. It is the lowest rate on records dating back to January 2005.
Rates on one-year adjustable-rate home loans were unchanged at 3.26.
The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount.
The average fee for 30-year and 15-year fixed loans in Freddie Mac's survey was 0.8 point. It was 0.7 point for 1-year and five-year mortgages.
Read more: Mortgage rates fall to fresh lows this week - The Denver Post http://www.denverpost.com/breakingnews/ci_16584270?source=rss#ixzz150mrSSzW
Sunday, November 7, 2010
Leaks Can Dry Up Your Wallet
WSJ 11.7.10
By Amy Hoak
Left unchecked, water leaks can be a house’s worst enemy.
“Water is one of the most destructive things to a house,” says David Tamny, president of the American Society of Home Inspectors. “It can account for so many things going wrong in a structure.”
Water damage is the second most-common cause of damage in homes, following fires, says Scott Spencer, world-wide appraisal and loss-prevention manager for insurer Chubb Group.
Leaks that aren’t obvious often produce the biggest issues. “If your bathtub or shower is leaking, you’re going to recognize that quickly and take steps to fix it. The hidden problems, people don’t know to fix,” Mr. Tamny says. As a result, they tend to worsen over time.
Still, if you know what to look for, it’s not difficult to identify water leaks before they flood into bigger—and more expensive—headaches. In addition to watching for spikes in your water bill, which could indicate leaky fixtures, look out for the problems in the following places.
1 The Roof
Your roof can last many years, but it’s important to regularly check on its condition, says Mr. Spencer, “especially after a traumatic event like a hailstorm or a windstorm.” Identifying a roof leak quickly can limit the amount of repair work needed and limit the spread of mold.
Also, you should make a visit to the attic at least once a year, says David Lupberger, home-improvement expert for Service- Magic.com , which connects consumers with home-improvement specialists. “Make sure that it doesn’t smell musty or moldy,” he says.
Most roofing contractors will offer free roof inspections, but remember, their objective is to find something wrong so they can fix it, Mr. Spencer says.
Another option is to hire a home inspector, Mr. Tamny says. The cost of home-inspection services vary, but if you just want the roof looked at, ask for a partial inspection, which will help keep the expense down.
Skylights also can be vulnerable to leaks because of their location and the challenges they present in installation, according to Chubb. Inside the house, check for any staining in the skylight area, which could be caused by a build-up of condensation.
2 The Basement
The best way to prevent problems in the basement starts outside, Mr. Lupberger says.
“Every spring and fall you should be cleaning your gutters and downspouts, and you want to make sure that water is not puddling next to your foundation,” he says. “Then, walk around the house and make sure there aren’t low points next to the foundation. Ninety percent of water in the basement is due to improper drainage.”
Crawlspaces also should be checked on occasion for signs of mold. “Liquid water is only one part of the equation,” Mr. Tamny says. Humidity can also be destructive, and lead to mold. For that reason, be mindful when setting a humidifier. “Humidity in the house should never be above 50%. The colder it gets, the lower the humidity should be,” he says.
3 Bathroom and Kitchen
Because of the frequency with which people use their bathrooms, it’s likely that problems will be spotted early. Still, there are preventive steps that can be taken so problems don’t have a chance to develop.
The shower and bath area is a vulnerable place for water leaks, making it important to proactively replace the caulk around fixtures every couple of years, Mr. Spencer says.
Also, replace broken toilet flappers, the rubber part in the tank that seals the drain, and address leaky fixtures, says Jimmy Carter, senior director of corporate field services for American Leak Detection. If you hear water running when the bathroom isn’t being used, you could have a problem.
In the bathroom and the kitchen, regularly feel the pipes under sinks to make sure there aren’t any leaks, Mr. Spencer says.
As the weather turns cooler, one of the “fast and furious” water leaks that homeowners encounter occurs when a pipe freezes and bursts, he says. To prevent that, never turn the heat below 55 degrees, he says. On particularly cold days, leave the bottom vanity open so there are no extremely cold temperatures near the pipes.
“Be particularly aware of those water fixtures on exterior walls of the home,” Mr. Spencer says, since those walls will be colder.
4 Appliances
Check washing-machine hoses to make sure they’re not loose fitting or aged. You may see a bulge in the washer’s rubber hose when it’s starting to wear, says Mr. Carter. Hoses become brittle and often require replacing every five to seven years, according to Chubb.
Also keep an eye on your water heater, which Mr. Spencer says is a “classic source of damage from water loss.” Age matters; water heaters typically have a lifespan of 10 to 12 years, he says.
Check the silver plate mounted on the water heater, which includes manufacturer information, Mr. Spencer adds. Look for evidence of leaks around the pipes and at the base of the water heater, as well as rust on any of the parts, according to Chubb.
By Amy Hoak
Left unchecked, water leaks can be a house’s worst enemy.
“Water is one of the most destructive things to a house,” says David Tamny, president of the American Society of Home Inspectors. “It can account for so many things going wrong in a structure.”
Water damage is the second most-common cause of damage in homes, following fires, says Scott Spencer, world-wide appraisal and loss-prevention manager for insurer Chubb Group.
Leaks that aren’t obvious often produce the biggest issues. “If your bathtub or shower is leaking, you’re going to recognize that quickly and take steps to fix it. The hidden problems, people don’t know to fix,” Mr. Tamny says. As a result, they tend to worsen over time.
Still, if you know what to look for, it’s not difficult to identify water leaks before they flood into bigger—and more expensive—headaches. In addition to watching for spikes in your water bill, which could indicate leaky fixtures, look out for the problems in the following places.
1 The Roof
Your roof can last many years, but it’s important to regularly check on its condition, says Mr. Spencer, “especially after a traumatic event like a hailstorm or a windstorm.” Identifying a roof leak quickly can limit the amount of repair work needed and limit the spread of mold.
Also, you should make a visit to the attic at least once a year, says David Lupberger, home-improvement expert for Service- Magic.com , which connects consumers with home-improvement specialists. “Make sure that it doesn’t smell musty or moldy,” he says.
Most roofing contractors will offer free roof inspections, but remember, their objective is to find something wrong so they can fix it, Mr. Spencer says.
Another option is to hire a home inspector, Mr. Tamny says. The cost of home-inspection services vary, but if you just want the roof looked at, ask for a partial inspection, which will help keep the expense down.
Skylights also can be vulnerable to leaks because of their location and the challenges they present in installation, according to Chubb. Inside the house, check for any staining in the skylight area, which could be caused by a build-up of condensation.
2 The Basement
The best way to prevent problems in the basement starts outside, Mr. Lupberger says.
“Every spring and fall you should be cleaning your gutters and downspouts, and you want to make sure that water is not puddling next to your foundation,” he says. “Then, walk around the house and make sure there aren’t low points next to the foundation. Ninety percent of water in the basement is due to improper drainage.”
Crawlspaces also should be checked on occasion for signs of mold. “Liquid water is only one part of the equation,” Mr. Tamny says. Humidity can also be destructive, and lead to mold. For that reason, be mindful when setting a humidifier. “Humidity in the house should never be above 50%. The colder it gets, the lower the humidity should be,” he says.
3 Bathroom and Kitchen
Because of the frequency with which people use their bathrooms, it’s likely that problems will be spotted early. Still, there are preventive steps that can be taken so problems don’t have a chance to develop.
The shower and bath area is a vulnerable place for water leaks, making it important to proactively replace the caulk around fixtures every couple of years, Mr. Spencer says.
Also, replace broken toilet flappers, the rubber part in the tank that seals the drain, and address leaky fixtures, says Jimmy Carter, senior director of corporate field services for American Leak Detection. If you hear water running when the bathroom isn’t being used, you could have a problem.
In the bathroom and the kitchen, regularly feel the pipes under sinks to make sure there aren’t any leaks, Mr. Spencer says.
As the weather turns cooler, one of the “fast and furious” water leaks that homeowners encounter occurs when a pipe freezes and bursts, he says. To prevent that, never turn the heat below 55 degrees, he says. On particularly cold days, leave the bottom vanity open so there are no extremely cold temperatures near the pipes.
“Be particularly aware of those water fixtures on exterior walls of the home,” Mr. Spencer says, since those walls will be colder.
4 Appliances
Check washing-machine hoses to make sure they’re not loose fitting or aged. You may see a bulge in the washer’s rubber hose when it’s starting to wear, says Mr. Carter. Hoses become brittle and often require replacing every five to seven years, according to Chubb.
Also keep an eye on your water heater, which Mr. Spencer says is a “classic source of damage from water loss.” Age matters; water heaters typically have a lifespan of 10 to 12 years, he says.
Check the silver plate mounted on the water heater, which includes manufacturer information, Mr. Spencer adds. Look for evidence of leaks around the pipes and at the base of the water heater, as well as rust on any of the parts, according to Chubb.
Wednesday, October 27, 2010
Home-loan delinquencies
Home-loan delinquencies
dip B washington» The
percentage rate of single-family
home loans behind in payments
by at least 90 days improved
between August and
September, government-controlled
lender Freddie Mac
said Tuesday. The company
said its single-family homeloan
delinquency fell to 3.80
percent in September from
3.83 percent in August.
Denver Post staff and wire reports
dip B washington» The
percentage rate of single-family
home loans behind in payments
by at least 90 days improved
between August and
September, government-controlled
lender Freddie Mac
said Tuesday. The company
said its single-family homeloan
delinquency fell to 3.80
percent in September from
3.83 percent in August.
Denver Post staff and wire reports
Denver Rated 5th Smartest City
Denver rated fifth-smartest
city. Denver was ranked the
fifth-smartest city in the nation
in the Daily Beast’s second
annual ranking of America’s
55 largest cities.
Denver came in behind Boston;
Hartford-New Haven,
Conn.; San Francisco-Oakland-
San Jose, Calif.; and
Raleigh-Durham, N.C.
city. Denver was ranked the
fifth-smartest city in the nation
in the Daily Beast’s second
annual ranking of America’s
55 largest cities.
Denver came in behind Boston;
Hartford-New Haven,
Conn.; San Francisco-Oakland-
San Jose, Calif.; and
Raleigh-Durham, N.C.
Quest for the Perfect Credit Score-Some consumers take every step they can to reach rare 850 mark
Chicago Tribune/CNN
September 7, 2010
A major league pitcher dreams of throwing a perfect game. High schoolers eyeing the Ivy League study furiously in hopes of earning 2400 on the SAT. Meanwhile, Chris Peplinski is pursuing his own brand of flawlessness: an 850 credit score.
The 37-year-old stay-at-home dad from Rogers, Ark., has nabbed 813 on the FICO scale, the credit scoring system most lenders use in sizing up potential borrowers.
That ranks him above more than 82 percent of Americans and comes with a big payoff: It entitles him to ultralow rates on loans, saving him tens of thousands of bucks over a lifetime.
Nevertheless, Peplinski won't be satisfied until he hits the maximum: 850. Why?
"Your credit score tells a lot about you," Peplinski said. "A high score means you're responsible and in control of your life. You're trustworthy."
To reach his goal, Peplinski voraciously reads up on every element that goes into a FICO score, checks his number every three months and tweaks his behavior to eke out every possible additional point.
Two years ago, he took out a car loan even though he and his wife, Chrissy, had the cash to buy their wheels outright. He figured that adding to his mix of credit might boost his score.
In spite of Chris' best efforts, landing an 850 may be a quixotic goal: Only about 0.5 percent of Americans manage it, FICO reports.
"The 850 score is kind of like a unicorn," said John Ulzheimer, a credit scoring expert with Credit.com who used to work for FICO. "Everybody talks about it, but nobody's seen it."
The reality is that you don't need to catch the unicorn to catch the best rates. But adopting some of the habits of members of the 800 club can help you improve your own score.
And that can translate into real money: On a $300,000, 30-year fixed-rate mortgage, the most creditworthy borrowers will pay $14,200 less than those one tier below; $25,600 less than those two tiers below.
But as for exactly how many points you'll gain or lose for, say, taking on a mortgage, being late on a bill or charging credit cards up to the max? That's proprietary information: "It's a black box," said FICO spokesman Craig Watts.
Mystery feeds obsession. Some credit score aficionados passionately debate their hypotheses on message boards like the FICO Forums at myfico.com. Others use themselves as guinea pigs to discover which moves will nudge a score up or down.
Some check their score obsessively, at least every few months, at a cost of $50 or more a year. They also fixate on their credit reports, upon which the scores are based.
Leland Lim, a 41-year-old doctor from northern California, is vigilant about scanning these for errors that might drag down his number.
"It took me three years to get a derogatory entry on one of them corrected," said Lim, who now earns an 806.
As for what makes an 800-plus score, these self-made experts basically say the same thing FICO does: Payment history is the single most important factor.
"I have this fetish about paying bills as soon as they come in the house," said Dick Husemann, 66, a retired Air Force officer from Wilmington, N.C. He and his wife, Brenda, 69, attribute their high scores, matching 818s, to never missing a credit payment.
The Husemanns also never charge more than 10 percent of their credit limit. They're not alone in that: Most score enthusiasts aim to keep a low "utilization ratio," or the amount they owe compared with the amount of credit available to them. FICO verifies that a low ratio can help your score.
With lenders routinely closing inactive accounts, Lim rotates all his credit cards into circulation.
But because his charges also affect that ratio, a few months before applying for a loan he stops using the cards or pays them off before the statement is generated. That way, Lim said, "my score jumps a bit," just in time for the lender to see.
The 800 club members are also conscious of their mix of credit.
Lim got interested in the scoring process two years ago while refinancing a home-equity loan into a home-equity line of credit. Having heard that revolving debt could affect a score more than an installment loan, he studied up.
His research revealed that home-equity lines of credit are not considered revolving debt in the FICO model. (The scoring firm confirms this.) And remember that car loan Peplinski took out, even though he didn't have to? He did it because FICO favors those with a variety of credit types.
"I probably paid $100 in interest," he said. "But it was worth it because we raised our credit scores by 15 points."
September 7, 2010
A major league pitcher dreams of throwing a perfect game. High schoolers eyeing the Ivy League study furiously in hopes of earning 2400 on the SAT. Meanwhile, Chris Peplinski is pursuing his own brand of flawlessness: an 850 credit score.
The 37-year-old stay-at-home dad from Rogers, Ark., has nabbed 813 on the FICO scale, the credit scoring system most lenders use in sizing up potential borrowers.
That ranks him above more than 82 percent of Americans and comes with a big payoff: It entitles him to ultralow rates on loans, saving him tens of thousands of bucks over a lifetime.
Nevertheless, Peplinski won't be satisfied until he hits the maximum: 850. Why?
"Your credit score tells a lot about you," Peplinski said. "A high score means you're responsible and in control of your life. You're trustworthy."
To reach his goal, Peplinski voraciously reads up on every element that goes into a FICO score, checks his number every three months and tweaks his behavior to eke out every possible additional point.
Two years ago, he took out a car loan even though he and his wife, Chrissy, had the cash to buy their wheels outright. He figured that adding to his mix of credit might boost his score.
In spite of Chris' best efforts, landing an 850 may be a quixotic goal: Only about 0.5 percent of Americans manage it, FICO reports.
"The 850 score is kind of like a unicorn," said John Ulzheimer, a credit scoring expert with Credit.com who used to work for FICO. "Everybody talks about it, but nobody's seen it."
The reality is that you don't need to catch the unicorn to catch the best rates. But adopting some of the habits of members of the 800 club can help you improve your own score.
And that can translate into real money: On a $300,000, 30-year fixed-rate mortgage, the most creditworthy borrowers will pay $14,200 less than those one tier below; $25,600 less than those two tiers below.
But as for exactly how many points you'll gain or lose for, say, taking on a mortgage, being late on a bill or charging credit cards up to the max? That's proprietary information: "It's a black box," said FICO spokesman Craig Watts.
Mystery feeds obsession. Some credit score aficionados passionately debate their hypotheses on message boards like the FICO Forums at myfico.com. Others use themselves as guinea pigs to discover which moves will nudge a score up or down.
Some check their score obsessively, at least every few months, at a cost of $50 or more a year. They also fixate on their credit reports, upon which the scores are based.
Leland Lim, a 41-year-old doctor from northern California, is vigilant about scanning these for errors that might drag down his number.
"It took me three years to get a derogatory entry on one of them corrected," said Lim, who now earns an 806.
As for what makes an 800-plus score, these self-made experts basically say the same thing FICO does: Payment history is the single most important factor.
"I have this fetish about paying bills as soon as they come in the house," said Dick Husemann, 66, a retired Air Force officer from Wilmington, N.C. He and his wife, Brenda, 69, attribute their high scores, matching 818s, to never missing a credit payment.
The Husemanns also never charge more than 10 percent of their credit limit. They're not alone in that: Most score enthusiasts aim to keep a low "utilization ratio," or the amount they owe compared with the amount of credit available to them. FICO verifies that a low ratio can help your score.
With lenders routinely closing inactive accounts, Lim rotates all his credit cards into circulation.
But because his charges also affect that ratio, a few months before applying for a loan he stops using the cards or pays them off before the statement is generated. That way, Lim said, "my score jumps a bit," just in time for the lender to see.
The 800 club members are also conscious of their mix of credit.
Lim got interested in the scoring process two years ago while refinancing a home-equity loan into a home-equity line of credit. Having heard that revolving debt could affect a score more than an installment loan, he studied up.
His research revealed that home-equity lines of credit are not considered revolving debt in the FICO model. (The scoring firm confirms this.) And remember that car loan Peplinski took out, even though he didn't have to? He did it because FICO favors those with a variety of credit types.
"I probably paid $100 in interest," he said. "But it was worth it because we raised our credit scores by 15 points."
Is the mortgage interest deduction on the way out?
Yahoo News 10.25.10
ROCHESTER, N.Y. -- The federal income tax deduction for mortgage interest that I pay on my home is under attack yet again. Last year I paid $3,099 in deductible interest on the house my wife, our four cats and I live in. According to The Wall Street Journal, the National Commission on Fiscal Responsibility and Reform is looking at changing that in an effort to address the massive deficits that the nation is running.
An article in The Christian Science Monitor suggests that the mortgage interest deduction will reduce federal income tax revenues $131 billion in 2012. The deduction was introduced in 1913 and has been a mainstay of home ownership ever since. The Tax Foundation reports that, on 2008 returns, 26.8 percent of all filers used the deduction and the average amount deducted was $12,221.
Those amounts and percentages do vary by state. As you might expect, California is much higher than average. About 30 percent of California filers took the deduction, at an average of $18,876.
The National Commission is charged with finding ways to reduce the deficit. No one wants to raise taxes, especially on the nearly 50 percent of Americans that pay little or no federal income tax. However, that $131 billion is a lot of money. It is nearly seven times the 2011 budget for NASA. It is more than the budget for the Department of Veterans Affairs or the Department of Labor or the Department of Education.
Home ownership peaked in the United States at a record high of 69 percent of the population. It declined to 67.4 percent by 2009. In the last 25 years, the lowest rate of home ownership was in 1988, at 63.8 percent.
In my home state of New York, in that same 25 years, the home ownership rates have ranged from a low of 50.3 percent in 1985 to a high of 55.9 percent in both 2005 and 2007. In 2009 the rate was 54.4 percent.
Home ownership is not a benefit of the wealthy. In 2005, 51 percent of the people in the lowest 25 percent of the U.S. population by income owned their own home. Some commentators might suggest that this is due to the volume of sub-prime loans. However, such loans made up less than 30 percent of all mortgage loans in the period 2004 through 2006 and less than 10 percent of all mortgages in the period 2001 through 2003.
One key data point about home ownership is age. Age 35 appears to be the age at which most Americans begin to undertake home ownership. By the time Americans retire, at age 65, just over 80 percent of us own our homes. The Census Bureau reports that in 2009, half of all homes without mortgages were owned by the elderly. One third of all owner occupied homes had no mortgage, 24.2 million out of 76.4 million total units.
The Census Bureau also shows that 8 percent of all homes were owned by people with incomes below the poverty level. Twenty-eight percent of homes were owned by families making what my family made or less in 2009.
Our deduction seems a bit paltry when compared to the national or to the California averages. We are a retired couple and our mortgage is just a few years from being paid off. That means most of the mortgage interest has already been paid. It also means that our income is much less than those folks paying $18,000 in mortgage interest.
Would removal of some or all of the mortgage interest deduction constitute a tax increase? Certainly. Around $131 billion or so.
Would it affect most Americans? Base upon the percentages who file and take the deduction, no. 73 percent of those filing income tax returns do not use it.
Would it affect some Americans disproportionately? Yes. That $3,000 deduction means a lot to my wife and I. In 2009 it was 10 percent of our gross income and in 2010 it will be closer to 20 percent. As the data shows, we are not alone.
Eliminating the mortgage interest deduction on income tax would be a financial blow to many homeowners. Reducing the federal deficit by increasing taxes on lower income homeowners may not be a choice that our elected officials will want to make.
ROCHESTER, N.Y. -- The federal income tax deduction for mortgage interest that I pay on my home is under attack yet again. Last year I paid $3,099 in deductible interest on the house my wife, our four cats and I live in. According to The Wall Street Journal, the National Commission on Fiscal Responsibility and Reform is looking at changing that in an effort to address the massive deficits that the nation is running.
An article in The Christian Science Monitor suggests that the mortgage interest deduction will reduce federal income tax revenues $131 billion in 2012. The deduction was introduced in 1913 and has been a mainstay of home ownership ever since. The Tax Foundation reports that, on 2008 returns, 26.8 percent of all filers used the deduction and the average amount deducted was $12,221.
Those amounts and percentages do vary by state. As you might expect, California is much higher than average. About 30 percent of California filers took the deduction, at an average of $18,876.
The National Commission is charged with finding ways to reduce the deficit. No one wants to raise taxes, especially on the nearly 50 percent of Americans that pay little or no federal income tax. However, that $131 billion is a lot of money. It is nearly seven times the 2011 budget for NASA. It is more than the budget for the Department of Veterans Affairs or the Department of Labor or the Department of Education.
Home ownership peaked in the United States at a record high of 69 percent of the population. It declined to 67.4 percent by 2009. In the last 25 years, the lowest rate of home ownership was in 1988, at 63.8 percent.
In my home state of New York, in that same 25 years, the home ownership rates have ranged from a low of 50.3 percent in 1985 to a high of 55.9 percent in both 2005 and 2007. In 2009 the rate was 54.4 percent.
Home ownership is not a benefit of the wealthy. In 2005, 51 percent of the people in the lowest 25 percent of the U.S. population by income owned their own home. Some commentators might suggest that this is due to the volume of sub-prime loans. However, such loans made up less than 30 percent of all mortgage loans in the period 2004 through 2006 and less than 10 percent of all mortgages in the period 2001 through 2003.
One key data point about home ownership is age. Age 35 appears to be the age at which most Americans begin to undertake home ownership. By the time Americans retire, at age 65, just over 80 percent of us own our homes. The Census Bureau reports that in 2009, half of all homes without mortgages were owned by the elderly. One third of all owner occupied homes had no mortgage, 24.2 million out of 76.4 million total units.
The Census Bureau also shows that 8 percent of all homes were owned by people with incomes below the poverty level. Twenty-eight percent of homes were owned by families making what my family made or less in 2009.
Our deduction seems a bit paltry when compared to the national or to the California averages. We are a retired couple and our mortgage is just a few years from being paid off. That means most of the mortgage interest has already been paid. It also means that our income is much less than those folks paying $18,000 in mortgage interest.
Would removal of some or all of the mortgage interest deduction constitute a tax increase? Certainly. Around $131 billion or so.
Would it affect most Americans? Base upon the percentages who file and take the deduction, no. 73 percent of those filing income tax returns do not use it.
Would it affect some Americans disproportionately? Yes. That $3,000 deduction means a lot to my wife and I. In 2009 it was 10 percent of our gross income and in 2010 it will be closer to 20 percent. As the data shows, we are not alone.
Eliminating the mortgage interest deduction on income tax would be a financial blow to many homeowners. Reducing the federal deficit by increasing taxes on lower income homeowners may not be a choice that our elected officials will want to make.
New home sales rise 6.6 pct. after dismal summer
Denver Post 10.27.10
WASHINGTON—Sales of new homes improved last month after the worst summer in nearly five decades, but not enough to lift the struggling economy.
The Commerce Department says new home sales in September grew 6.6 percent from a month earlier to a seasonally adjusted annual sales pace of 307,000. Even with the increase, the past five months have been the worst for new home sales on records dating back to 1963.
Paul Dales, U.S. economist with Capital Economics, called the September home sales encouraging. But he said it doesn't change the fact that activity remains at extremely low levels.
"That's unlikely to change for a few years," Dales said.
Most major homebuilder stocks fell after the report's release. Toll Brothers Inc. fell nearly 1 percent.
New home sales have risen 9 percent from the bottom in May but are still down 78 percent from their peak sales pace of nearly 1.4 million homes in July 2005. A healthy sales pace is around 800,000 new homes.
Builders are competing with millions of foreclosures and other distressed properties that show no signs of abating. They are unlikely to ramp up construction until those are cleared away and demand picks up.
High unemployment, tight credit and uncertainty about home prices have kept people from buying homes. Government tax credits propelled the market earlier in the year, but those expired in April.
The September sales figures were driven by a 61 percent monthly surge in the Midwest. Sales grew about 3 percent in the South and Northeast. They fell by nearly 10 percent in the West.
The median sales price was $223,800. That was up 3.3 percent from a year earlier.
The number of unsold new homes on the market fell to 204,000, the lowest since July 1968. At the current sales pace, it would take about eight months to exhaust that supply, compared with a healthy level of about six months.
The industry is suffering the fallout of a massive building boom, in which many homes were sold to speculators. They then resold the homes, often to borrowers who took out risky loans and defaulted. Those unsustainable boom times aren't coming back.
Read more: New home sales rise 6.6 pct. after dismal summer - The Denver Post http://www.denverpost.com/breakingnews/ci_16446361?source=rss#ixzz13ZyNFi16
WASHINGTON—Sales of new homes improved last month after the worst summer in nearly five decades, but not enough to lift the struggling economy.
The Commerce Department says new home sales in September grew 6.6 percent from a month earlier to a seasonally adjusted annual sales pace of 307,000. Even with the increase, the past five months have been the worst for new home sales on records dating back to 1963.
Paul Dales, U.S. economist with Capital Economics, called the September home sales encouraging. But he said it doesn't change the fact that activity remains at extremely low levels.
"That's unlikely to change for a few years," Dales said.
Most major homebuilder stocks fell after the report's release. Toll Brothers Inc. fell nearly 1 percent.
New home sales have risen 9 percent from the bottom in May but are still down 78 percent from their peak sales pace of nearly 1.4 million homes in July 2005. A healthy sales pace is around 800,000 new homes.
Builders are competing with millions of foreclosures and other distressed properties that show no signs of abating. They are unlikely to ramp up construction until those are cleared away and demand picks up.
High unemployment, tight credit and uncertainty about home prices have kept people from buying homes. Government tax credits propelled the market earlier in the year, but those expired in April.
The September sales figures were driven by a 61 percent monthly surge in the Midwest. Sales grew about 3 percent in the South and Northeast. They fell by nearly 10 percent in the West.
The median sales price was $223,800. That was up 3.3 percent from a year earlier.
The number of unsold new homes on the market fell to 204,000, the lowest since July 1968. At the current sales pace, it would take about eight months to exhaust that supply, compared with a healthy level of about six months.
The industry is suffering the fallout of a massive building boom, in which many homes were sold to speculators. They then resold the homes, often to borrowers who took out risky loans and defaulted. Those unsustainable boom times aren't coming back.
Read more: New home sales rise 6.6 pct. after dismal summer - The Denver Post http://www.denverpost.com/breakingnews/ci_16446361?source=rss#ixzz13ZyNFi16
Fidelity will require warranties on all REO sales
Bank of America already on board
By Inman News, Monday, October 25, 2010.
Inman News
The nation's largest title insurer, Fidelity National Financial, will require warranties from all lenders beginning Nov. 1 limiting the company's liability in "robo-signing" disputes before it will insure title on real estate owned (REO) properties.
Fidelity had previously reached an agreement with Bank of America to provide representations that all foreclosure documentation and procedures associated with a property comply with state law and local practices, and that the lender will indemnify Fidelity against any losses that are the result of the bank's failure to comply with those laws and practices.
By Inman News, Monday, October 25, 2010.
Inman News
The nation's largest title insurer, Fidelity National Financial, will require warranties from all lenders beginning Nov. 1 limiting the company's liability in "robo-signing" disputes before it will insure title on real estate owned (REO) properties.
Fidelity had previously reached an agreement with Bank of America to provide representations that all foreclosure documentation and procedures associated with a property comply with state law and local practices, and that the lender will indemnify Fidelity against any losses that are the result of the bank's failure to comply with those laws and practices.
Friday, October 22, 2010
Denver ranks fifth in best U.S. cities to trick-or-treat
A new analysis ranks Denver as the fifth- best U.S. city for trick-or-treating.
Zillow Blog, a website that commonly analyzes real estate data, has turned around and used the same data to find the best places to trick-or-treat based on where children will get the most candy while having to walk less without safety concerns.
The first city, according to the rankings, was Seattle, followed by San Francisco, Portland, Ore., and San Jose, Calif. Eleven of the 20 best cities named are found in the West.
The Denver Post
For other national cities go to:
http://www.zillow.com/blog/zillow-ranks-20-best-cities-to-trick-or-treat/2010/10/18/
Zillow Blog, a website that commonly analyzes real estate data, has turned around and used the same data to find the best places to trick-or-treat based on where children will get the most candy while having to walk less without safety concerns.
The first city, according to the rankings, was Seattle, followed by San Francisco, Portland, Ore., and San Jose, Calif. Eleven of the 20 best cities named are found in the West.
The Denver Post
For other national cities go to:
http://www.zillow.com/blog/zillow-ranks-20-best-cities-to-trick-or-treat/2010/10/18/
Where Do Most People Want to Live?
The Harris Poll has asked this question every year since 1997. While California tops the list of most popular states to live in among Echo Boomers (now ages 18 to 33) and Gen Xers (ages 34 to 45), Hawaii is the top pick for Baby Boomers (ages 46 to 64) and Matures (ages 65 and over). Among Echo Boomers, Hawaii drops out of the top five.
Here are the top-10 states across the age groups:
1. California
2. Hawaii
3. Florida
4. Colorado
5. Arizona
6. North Carolina
7. Oregon
8. Texas
9. New York
10. Washington
Here are the top-10 states across the age groups:
1. California
2. Hawaii
3. Florida
4. Colorado
5. Arizona
6. North Carolina
7. Oregon
8. Texas
9. New York
10. Washington
Thursday, October 21, 2010
New-home starts increase slightly
The industry begins showing “a faint pulse” as construction rises 0.3 percent in September.
By Alan Zibel The Associated Press
WASHINGTON» Home construction rose slightly last month on the strength of single-family homes, but the market was still too weak to propel growth in the battered industry.
Construction of new homes and apartments rose 0.3 percent in September from a month earlier to a seasonally adjusted annual rate of 610,000, the Commerce Department said Tuesday. It was the strongest report on home construction since April.
Housing starts are up 28 percent from their bottom in April 2009. Still, they are down 73 percent from their peak in January 2006 and 40 percent below the 1 million annual rate that analysts say is consistent with healthy housing markets.
The industry is “showing signs of stabilization and perhaps even a faint pulse,” said Joshua Shapiro, chief U.S. economist at MFR Inc. in New York.
August’s figure was revised upward to an annual rate of 608,000 from an earlier estimate of 598,000.
Construction was driven by a 4.4 percent monthly increase in single-family homes, the second consecutive increase for this category, which represents about 80 percent of the market.
Construction of condos and apartments fell by nearly 10 percent.
The number of building permits issued for new homes, a sign of future activity, fell 5.6 percent from a month earlier to a seasonally adjusted annual rate of 539,000. That drop, however, was driven by a 20 percent decline in those for condominiums and apartments. Permits for single-family homes rose 0.5 percent.
By Alan Zibel The Associated Press
WASHINGTON» Home construction rose slightly last month on the strength of single-family homes, but the market was still too weak to propel growth in the battered industry.
Construction of new homes and apartments rose 0.3 percent in September from a month earlier to a seasonally adjusted annual rate of 610,000, the Commerce Department said Tuesday. It was the strongest report on home construction since April.
Housing starts are up 28 percent from their bottom in April 2009. Still, they are down 73 percent from their peak in January 2006 and 40 percent below the 1 million annual rate that analysts say is consistent with healthy housing markets.
The industry is “showing signs of stabilization and perhaps even a faint pulse,” said Joshua Shapiro, chief U.S. economist at MFR Inc. in New York.
August’s figure was revised upward to an annual rate of 608,000 from an earlier estimate of 598,000.
Construction was driven by a 4.4 percent monthly increase in single-family homes, the second consecutive increase for this category, which represents about 80 percent of the market.
Construction of condos and apartments fell by nearly 10 percent.
The number of building permits issued for new homes, a sign of future activity, fell 5.6 percent from a month earlier to a seasonally adjusted annual rate of 539,000. That drop, however, was driven by a 20 percent decline in those for condominiums and apartments. Permits for single-family homes rose 0.5 percent.
Calls for Help
Here is the breakdown of the largest mortgage servicers and their shares of the calls coming in from the Colorado Foreclosure Hotline:
Servicer
1. Bank of America 32% of Calls
2. Wells Fargo 28% of Calls
3. Chase 22% of Calls
4. Citi 10% of calls
5. GMAC Mortgage 8% of Calls
Servicer
1. Bank of America 32% of Calls
2. Wells Fargo 28% of Calls
3. Chase 22% of Calls
4. Citi 10% of calls
5. GMAC Mortgage 8% of Calls
Wednesday, October 20, 2010
Year-to-Date Sales down 7%-9%
Year-to-Date Sales down 7%-9%
Jefferson County ranks third in the number of transactions closed year-to-date, trailing Denver and Arapahoe Counties. On a year-to-date basis, transactions are down 7%-9% for residential properties. Condo transactions are down 6%. All single-family residential (condo and residential) are 7% to 8% lower, depending on the county. The largest number of closed transactions are in the $100,00 to $199,000 price range. Thirty-four percent of the closed transactions fell within this price range. Seventy-three percent of closed transactions were priced at $299,999 or lower. Here are the numbers: 6 County Report (Adams, Arapahoe, Broomfield, Denver, Douglas, Jefferson),
8 County Report (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert, Jefferson), 11 County Report (Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, Park). The statistics are provided by independent broker Gary Bauer.
Jefferson County ranks third in the number of transactions closed year-to-date, trailing Denver and Arapahoe Counties. On a year-to-date basis, transactions are down 7%-9% for residential properties. Condo transactions are down 6%. All single-family residential (condo and residential) are 7% to 8% lower, depending on the county. The largest number of closed transactions are in the $100,00 to $199,000 price range. Thirty-four percent of the closed transactions fell within this price range. Seventy-three percent of closed transactions were priced at $299,999 or lower. Here are the numbers: 6 County Report (Adams, Arapahoe, Broomfield, Denver, Douglas, Jefferson),
8 County Report (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert, Jefferson), 11 County Report (Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, Park). The statistics are provided by independent broker Gary Bauer.
Tuesday, October 19, 2010
Banks, funds hide roles in foreclosure schemes
By Fred Schulte Huffington Post Investigative Fund
Nearly a dozen major banks and hedge funds, anticipating quick profits from homeowners who fall behind on property taxes, are quietly plowing hundreds of millions of dollars into businesses that collect the debts, tack on escalating fees and threaten to foreclose on the homes of those who fail to pay.
The investors, which include Bank of America and JPMorgan Chase, have purchased from local governments the right to collect delinquent taxes on several hundred thousand properties, many in distressed housing markets, the Huffing-ton Post Investigative Fund has found.
In many cases, banks and hedge funds created new companies to do their bidding.
In exchange for paying overdue real-estate taxes, the investors gain legal powers to collect the debts and levy fees. At first, property owners may owe little more than a few hundred dollars, only to find their bills soaring into the thousands. Some jurisdictions tack on bills, such as for water, sewer and sidewalk repair.
Some states allow the investors to bill for up to 18 percent interest and a passel of legal fees and other charges. When property owners fail to make full payment, the investors can sue to foreclose — in some states within as little as six months.
In June, Bank of America snatched up liens on properties in Florida owned by low-income residents and nonprofit public-interest groups, including a Salvation Army shelter, a preschool and a wildlife-rescue group involved in the Gulf of Mexico oil-spill cleanup, tax records show.
Over the past year, Bank of America has bought liens on properties in at least a dozen states.
The bank has bid in Florida tax-lien sales using colorful names such as Bennu LLC, named after a mythical bird said to be the soul of the ancient Egyptian sun god.
Some banks purchased liens directly; others financed investment groups that did so.
Fortress Investment Group, a hedge fund run by former Fannie Mae chief Daniel Mudd, has bought tax liens under 17 corporate names. Some evoke tranquil, bucolic settings, such as Pleasant Valley Capital LLC and Travis Farm Investments LLC.
Representatives of several prominent banks and hedge funds contacted by the Investigative Fund, including JPMorgan, Bank of America and Fortress Investment Group, declined to comment for this article.
Mudd also had no comment.
Nearly a dozen major banks and hedge funds, anticipating quick profits from homeowners who fall behind on property taxes, are quietly plowing hundreds of millions of dollars into businesses that collect the debts, tack on escalating fees and threaten to foreclose on the homes of those who fail to pay.
The investors, which include Bank of America and JPMorgan Chase, have purchased from local governments the right to collect delinquent taxes on several hundred thousand properties, many in distressed housing markets, the Huffing-ton Post Investigative Fund has found.
In many cases, banks and hedge funds created new companies to do their bidding.
In exchange for paying overdue real-estate taxes, the investors gain legal powers to collect the debts and levy fees. At first, property owners may owe little more than a few hundred dollars, only to find their bills soaring into the thousands. Some jurisdictions tack on bills, such as for water, sewer and sidewalk repair.
Some states allow the investors to bill for up to 18 percent interest and a passel of legal fees and other charges. When property owners fail to make full payment, the investors can sue to foreclose — in some states within as little as six months.
In June, Bank of America snatched up liens on properties in Florida owned by low-income residents and nonprofit public-interest groups, including a Salvation Army shelter, a preschool and a wildlife-rescue group involved in the Gulf of Mexico oil-spill cleanup, tax records show.
Over the past year, Bank of America has bought liens on properties in at least a dozen states.
The bank has bid in Florida tax-lien sales using colorful names such as Bennu LLC, named after a mythical bird said to be the soul of the ancient Egyptian sun god.
Some banks purchased liens directly; others financed investment groups that did so.
Fortress Investment Group, a hedge fund run by former Fannie Mae chief Daniel Mudd, has bought tax liens under 17 corporate names. Some evoke tranquil, bucolic settings, such as Pleasant Valley Capital LLC and Travis Farm Investments LLC.
Representatives of several prominent banks and hedge funds contacted by the Investigative Fund, including JPMorgan, Bank of America and Fortress Investment Group, declined to comment for this article.
Mudd also had no comment.
US 36 Toll Lane Extension To Boulder Looking Possible
U.S. 36 toll forecast positive
Those promoting the extension of HOV/HOT lanes on U.S. 36 say initial data show future toll revenue from the express lanes may be sufficient to back a key federal loan needed to make the project work.
By Jeffrey Leib The Denver Post
On Monday, state transportation officials released information showing that tolling single-occupant vehicles in new express lanes added to the 6.8-mile stretch of U.S. 36 between Pecos Street and Wadsworth Parkway would generate enough revenue to back a federal loan yielding about $37 million for construction of the project.
If vehicles with two occupants also were required to pay tolls — and only those with three or more were exempted from paying — the additional toll revenue would back about $53 million in federal loan money, according to data that traffic and revenue consultants presented to the Colorado High Performance Transportation Enterprise, or HPTE.
Their analysis assumes a toll rate between 5 cents a mile and 60 cents a mile, depending on the time of day. The minimum toll would be 25 cents.
Those promoting the extension of HOV/HOT lanes on U.S. 36 say initial data show future toll revenue from the express lanes may be sufficient to back a key federal loan needed to make the project work.
By Jeffrey Leib The Denver Post
On Monday, state transportation officials released information showing that tolling single-occupant vehicles in new express lanes added to the 6.8-mile stretch of U.S. 36 between Pecos Street and Wadsworth Parkway would generate enough revenue to back a federal loan yielding about $37 million for construction of the project.
If vehicles with two occupants also were required to pay tolls — and only those with three or more were exempted from paying — the additional toll revenue would back about $53 million in federal loan money, according to data that traffic and revenue consultants presented to the Colorado High Performance Transportation Enterprise, or HPTE.
Their analysis assumes a toll rate between 5 cents a mile and 60 cents a mile, depending on the time of day. The minimum toll would be 25 cents.
Monday, October 18, 2010
Mortgage rates hit lowest level since record-keeping began in '71
NEW YORK — Rates on 30-year, fixed-rate mortgages fell to the lowest level in decades for the ninth time in 12 weeks, pushed down by traders anticipating a move by the Federal Reserve to pump more money into the economy.
The average rate for 30-year, fixed-rate loans dropped to 4.27 percent, mortgage buyer Freddie Mac said Thursday. That's the lowest on records dating to 1971 and down from 4.32 percent the previous week.
The average rate on 15-year, fixed-rate loans dropped to 3.72 percent from 3.75 percent. That was the lowest on records dating to 1991.
Rates have mostly fallen since the spring as investors shifted money into the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields. The Associated Press
The average rate for 30-year, fixed-rate loans dropped to 4.27 percent, mortgage buyer Freddie Mac said Thursday. That's the lowest on records dating to 1971 and down from 4.32 percent the previous week.
The average rate on 15-year, fixed-rate loans dropped to 3.72 percent from 3.75 percent. That was the lowest on records dating to 1991.
Rates have mostly fallen since the spring as investors shifted money into the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields. The Associated Press
A Foreclosure Sitcom
First we
learned America’s
biggest
banks couldn’t
properly lend.
Then we
learned they
couldn’t keep themselves solvent
without taxpayer assistance.
Then we learned they
couldn’t effectively work with
troubled borrowers in a bursting
housing bubble. And now
we’ve learned they don’t even
know how to foreclose.
Last week, attorneys general
from 50 states launched investigations
into the defective and
fraudulent paperwork banks
have been filing in courts as
they foreclose their bad loans
across the land. Banks have
been caught deploying “robosigners”
who sign off on thousands
of documents and affidavits
without even so much as
looking at them.
This is more than just a little
paperwork problem. Ohio Attorney
General Richard Cordray
put it best: “This is about the
private-property rights of homeowners
facing foreclosure and
the integrity of our court system,
which cannot enter judgments
based on fraudulent evidence.”
Imagine losing your home
and then another bank says it
wants to foreclose on you, too.
“But I was already foreclosed,”
you might say. And the bank
might say, “Whoops. The court
gave your house to the wrong
bank.”
First, banks took shortcuts
madly writing millions of bad
mortgages and pawning them
off on investors. Now, their
shoddy paperwork is biting
them back. So what’s their solution
to the cascade of foreclosures
their own shortcutting let
loose? More shortcuts.
Acknowledging such problems,
Bank of America had already
suspended foreclosures
nationwide before the attorneys
general jumped on the case.
GMAC Home Mortgage (a unit
of Ally Financial), J.P. Morgan
Chase and PNC Bank had already
suspended them in the 23
states where foreclosures require
court approval.
Not to miss a chance to pile
on, lame-duck Senate Banking
Chairman Chris Dodd (D., Conn.)
set a hearing for Nov. 16 to scrutinize
the mess. “Regulators at
the federal, state and local levels
have a responsibility to uphold
the law,” he explained.
Really, Senator? And here we
thought their job was to stand
pat as banks papered themselves
with lies, from false income
statements and appraisals
to inadequate disclosures on
mortgage-backed securities.
Systemic reckless lending
laid the U.S. economy to ruin.
And after all the bailouts, reforms
and loan-modification programs,
banks still can’t keep up
with their own mess.
Terry Smiljanich, a former
federal prosecutor and fraud attorney
in Tampa, Fla., compares
banks’ latest antics to a memorable
episode of “I Love Lucy.”
Lucy and Ethel are working
beside a chocolate-factory conveyor
belt. Their job is to wrap
chocolates in paper. But the
chocolates whip by so fast, they
can’t paper them all. Panicked
they’ll be fired, they start devouring
the chocolates and stuffing
them under their hats. (Take
a look at the scene at youtube.
com/watch?v=4wp3m1vg06Q.)
“Keeping up with the paperwork
was Lucy’s job and what
these robo-signers were trying
to do,” Mr. Smiljanich says.
“These banks are overwhelmed,”
he says. “The factory
needs to hire more people to do
the paperwork properly. ...It’s
sad we had to get to this point to
force them to do the right thing.”
learned America’s
biggest
banks couldn’t
properly lend.
Then we
learned they
couldn’t keep themselves solvent
without taxpayer assistance.
Then we learned they
couldn’t effectively work with
troubled borrowers in a bursting
housing bubble. And now
we’ve learned they don’t even
know how to foreclose.
Last week, attorneys general
from 50 states launched investigations
into the defective and
fraudulent paperwork banks
have been filing in courts as
they foreclose their bad loans
across the land. Banks have
been caught deploying “robosigners”
who sign off on thousands
of documents and affidavits
without even so much as
looking at them.
This is more than just a little
paperwork problem. Ohio Attorney
General Richard Cordray
put it best: “This is about the
private-property rights of homeowners
facing foreclosure and
the integrity of our court system,
which cannot enter judgments
based on fraudulent evidence.”
Imagine losing your home
and then another bank says it
wants to foreclose on you, too.
“But I was already foreclosed,”
you might say. And the bank
might say, “Whoops. The court
gave your house to the wrong
bank.”
First, banks took shortcuts
madly writing millions of bad
mortgages and pawning them
off on investors. Now, their
shoddy paperwork is biting
them back. So what’s their solution
to the cascade of foreclosures
their own shortcutting let
loose? More shortcuts.
Acknowledging such problems,
Bank of America had already
suspended foreclosures
nationwide before the attorneys
general jumped on the case.
GMAC Home Mortgage (a unit
of Ally Financial), J.P. Morgan
Chase and PNC Bank had already
suspended them in the 23
states where foreclosures require
court approval.
Not to miss a chance to pile
on, lame-duck Senate Banking
Chairman Chris Dodd (D., Conn.)
set a hearing for Nov. 16 to scrutinize
the mess. “Regulators at
the federal, state and local levels
have a responsibility to uphold
the law,” he explained.
Really, Senator? And here we
thought their job was to stand
pat as banks papered themselves
with lies, from false income
statements and appraisals
to inadequate disclosures on
mortgage-backed securities.
Systemic reckless lending
laid the U.S. economy to ruin.
And after all the bailouts, reforms
and loan-modification programs,
banks still can’t keep up
with their own mess.
Terry Smiljanich, a former
federal prosecutor and fraud attorney
in Tampa, Fla., compares
banks’ latest antics to a memorable
episode of “I Love Lucy.”
Lucy and Ethel are working
beside a chocolate-factory conveyor
belt. Their job is to wrap
chocolates in paper. But the
chocolates whip by so fast, they
can’t paper them all. Panicked
they’ll be fired, they start devouring
the chocolates and stuffing
them under their hats. (Take
a look at the scene at youtube.
com/watch?v=4wp3m1vg06Q.)
“Keeping up with the paperwork
was Lucy’s job and what
these robo-signers were trying
to do,” Mr. Smiljanich says.
“These banks are overwhelmed,”
he says. “The factory
needs to hire more people to do
the paperwork properly. ...It’s
sad we had to get to this point to
force them to do the right thing.”
Home Prices Taking Turns
Areas that escaped the
mess of distressed sales
may see it now, as some
hard-hit areas stabilize.
By Margaret Jackson
The Denver Post
Homes in metro Denver neighborhoods
that previously appeared insulated
from the housing crisis are seeing
a decline in prices as foreclosures
and short sales tick up. Meanwhile,
those communities that were hit hardest
are showing signs of improvement.
While foreclosures and short sales—
knowncollectively as “distressed sales”
—stillmakeupa larger share of themarket
in lower-priced neighborhoods, the
slight decline in those sales is expected
to help prices there stabilize.
“If you’re in a neighborhood where
the number of distressed sales is increasing,
it’s going to push prices
down,” said Lon Welsh, managing broker
of Your Castle Real Estate. “If
you’re in a neighborhood where the
number of distressed sales is declining,
you should see values improving.”
An analysis of Metrolist data by
Your Castle showed that homes
priced at $461,000 or more saw the distressed
sales increase from 12 percent
of the total volume in the first quarter
of 2008 to 17 percent in the second
quarter of 2010.
Meanwhile, 69 percent of homes
sold in the $95,000-$149,000 price
mess of distressed sales
may see it now, as some
hard-hit areas stabilize.
By Margaret Jackson
The Denver Post
Homes in metro Denver neighborhoods
that previously appeared insulated
from the housing crisis are seeing
a decline in prices as foreclosures
and short sales tick up. Meanwhile,
those communities that were hit hardest
are showing signs of improvement.
While foreclosures and short sales—
knowncollectively as “distressed sales”
—stillmakeupa larger share of themarket
in lower-priced neighborhoods, the
slight decline in those sales is expected
to help prices there stabilize.
“If you’re in a neighborhood where
the number of distressed sales is increasing,
it’s going to push prices
down,” said Lon Welsh, managing broker
of Your Castle Real Estate. “If
you’re in a neighborhood where the
number of distressed sales is declining,
you should see values improving.”
An analysis of Metrolist data by
Your Castle showed that homes
priced at $461,000 or more saw the distressed
sales increase from 12 percent
of the total volume in the first quarter
of 2008 to 17 percent in the second
quarter of 2010.
Meanwhile, 69 percent of homes
sold in the $95,000-$149,000 price
Fed crafting aid package, chief says
washington» The Federal Reserve is prepared to take further
steps to rejuvenate the economy by buying Treasury bonds but is
wrestling with how big the program should be, Chairman Ben Bernanke
said Friday.
Bernanke also indicated that Fed policymakers are trying to
craft a plan to lift inflation from super-low levels. He made his remarks
in a speech at a Fed conference in Boston.
Bernanke said the Fed must both weigh the risks of a Treasury-
buying program and determine how the debt purchases
should be paced. The Fed’s bond purchases would be intended
to lower long-term interest rates to stimulate buying and spending
and help lower unemployment. Those Treasury purchases
would inject many more dollars into the financial system, but
that poses a longer-term risk: high inflation.
Fed policymakers are expected to announce a Treasury-buying
program at their Nov. 2-3 meeting. The Associated Press; AP photo
steps to rejuvenate the economy by buying Treasury bonds but is
wrestling with how big the program should be, Chairman Ben Bernanke
said Friday.
Bernanke also indicated that Fed policymakers are trying to
craft a plan to lift inflation from super-low levels. He made his remarks
in a speech at a Fed conference in Boston.
Bernanke said the Fed must both weigh the risks of a Treasury-
buying program and determine how the debt purchases
should be paced. The Fed’s bond purchases would be intended
to lower long-term interest rates to stimulate buying and spending
and help lower unemployment. Those Treasury purchases
would inject many more dollars into the financial system, but
that poses a longer-term risk: high inflation.
Fed policymakers are expected to announce a Treasury-buying
program at their Nov. 2-3 meeting. The Associated Press; AP photo
Join the inner circle in dome-home tour
By Sheba R. Wheeler
The Denver Post
fairplay» Keith Wortman had a
potential deal-breaker when he
was dating his future wife, Sylvia.
“I told her if she was going to get
serious about me,” says the retired
herpetologist, “then someday she
was going to be living in a dome.”
Turns out Sylvia Wortman was
on board—as long as that dome included
a walk-in pantry and a sewing
room, which it does.
Now, just 10 weeks after moving
into their new 4,000-square-foot
dome home, the Wortmans are
opening their doors to the public
today and Sunday as part of the
10th annual Dome Tour.
Their home—which was constructed
beneath an inflatable
frame— along with another dome
home in Conifer and several others
around the country built by the
Texas-based Monolithic Dome Institute
will be open for tours this
weekend. The goal of these tours is
to educate people about the benefits
of living in the round. Those
benefits include extreme energy efficiency
and structural durability.
“The shape of the dome isn’t
what people tend to envision when
they think of their dream home,”
says Larry Byrne, Monolithic’s vice
president of design. “The tours reshape
that vision … because people
can experience domes and see
things that others have done to
dress them up.”
Wortman, 60, used to travel the
country lecturing on exotic venom-
ous reptiles. He started dreaming
about living in a dome about
three decades ago after he saw a
million-gallon water tank in Wisconsin
and imagined it as a
burn- and rot-proof home.
He later lectured at a school in
Idaho built by the Monolithic
Dome Institute. That visit cemented
Wortman’s goal of having
a dome of his own.
His home is nestled among
bristlecone pine trees on a
10-acre lot overlooking a valley.
It boasts picturesque views of
central Colorado’s Mosquito
Range and resembles a Mickey
Mouse hat. One 47-foot diameter
dome is molded to two smaller,
36-foot diameter domes. Half of
the central dome sits atop a
10-foot-high, vertical retaining
wall near a pond.
Unlike geodesic dome homes,
which generally are made of several
panels, a Monolithic dome
is made from reinforced concrete
sprayed into an inflatable
nylon form. Three inches of
steel-reinforced polyurethane insulates
the structure.
“People are shocked to learn
that just a 50-gallon electric hot
water heater keeps 4,000 square
feet of building heated,” says
Wortman, who is assisting another
couple in planning for their
Rocky Mountain dome home.
Wortman’s dome cost roughly
$129 per square foot and is likely
to outlive him.
“It’s constructed like a bomb
bunker,” he says. “This house
will be here 500, maybe 1,000
years from now.”
Personal decorating touches
enhance the Wortmans’ dome,
like the bear tracks stamped into
the front walkway and the Western
motif highlighted by the couple’s
extensive collection of Indian
kachina dolls, paintings, beadwork
and rugs.
The kitchen, dining room, upper
living room and sunken living
room are set off by a metal
art panel and railings.
Sylvia, a retired teacher, is
pleased that at least one part of
her husband’s dream home
wasn’t realized.
“My original dream included
having a pond for my collection
of crocs and venomous snakes in
that sunken living room,”Wortman
says. “But we discovered
my reptiles didn’t do so good at
10,000 feet.”
Every room includes concave
details well-suited to the home’s
textured concrete backbone.
Turn right from the main dome,
walk past the living room, and
visitors find the master bedroom
suite. Turn left and walk down a
hallway to the second dome to
find the library, two guest rooms
and two hobby rooms— one for
Sylvia’s sewing and the other for
Keith’s photography.
Having a devoted sewing
room is a step up for Sylvia, who
used to stash her sewing machine
in a closet, especially because
this room offers views of
high-country wildlife. “I told all
my friends that I came out of the
closet,” she jokes.
Keith and Sylvia Wortman’s
dome home is open for free tours
today and Sunday from 8 a.m. to
5 p.m. It’s located at 2066 Platte
Drive, Fairplay. For more information,
visit monolithic.com.
Sheba R. Wheeler: 303-954-1283
The Denver Post
fairplay» Keith Wortman had a
potential deal-breaker when he
was dating his future wife, Sylvia.
“I told her if she was going to get
serious about me,” says the retired
herpetologist, “then someday she
was going to be living in a dome.”
Turns out Sylvia Wortman was
on board—as long as that dome included
a walk-in pantry and a sewing
room, which it does.
Now, just 10 weeks after moving
into their new 4,000-square-foot
dome home, the Wortmans are
opening their doors to the public
today and Sunday as part of the
10th annual Dome Tour.
Their home—which was constructed
beneath an inflatable
frame— along with another dome
home in Conifer and several others
around the country built by the
Texas-based Monolithic Dome Institute
will be open for tours this
weekend. The goal of these tours is
to educate people about the benefits
of living in the round. Those
benefits include extreme energy efficiency
and structural durability.
“The shape of the dome isn’t
what people tend to envision when
they think of their dream home,”
says Larry Byrne, Monolithic’s vice
president of design. “The tours reshape
that vision … because people
can experience domes and see
things that others have done to
dress them up.”
Wortman, 60, used to travel the
country lecturing on exotic venom-
ous reptiles. He started dreaming
about living in a dome about
three decades ago after he saw a
million-gallon water tank in Wisconsin
and imagined it as a
burn- and rot-proof home.
He later lectured at a school in
Idaho built by the Monolithic
Dome Institute. That visit cemented
Wortman’s goal of having
a dome of his own.
His home is nestled among
bristlecone pine trees on a
10-acre lot overlooking a valley.
It boasts picturesque views of
central Colorado’s Mosquito
Range and resembles a Mickey
Mouse hat. One 47-foot diameter
dome is molded to two smaller,
36-foot diameter domes. Half of
the central dome sits atop a
10-foot-high, vertical retaining
wall near a pond.
Unlike geodesic dome homes,
which generally are made of several
panels, a Monolithic dome
is made from reinforced concrete
sprayed into an inflatable
nylon form. Three inches of
steel-reinforced polyurethane insulates
the structure.
“People are shocked to learn
that just a 50-gallon electric hot
water heater keeps 4,000 square
feet of building heated,” says
Wortman, who is assisting another
couple in planning for their
Rocky Mountain dome home.
Wortman’s dome cost roughly
$129 per square foot and is likely
to outlive him.
“It’s constructed like a bomb
bunker,” he says. “This house
will be here 500, maybe 1,000
years from now.”
Personal decorating touches
enhance the Wortmans’ dome,
like the bear tracks stamped into
the front walkway and the Western
motif highlighted by the couple’s
extensive collection of Indian
kachina dolls, paintings, beadwork
and rugs.
The kitchen, dining room, upper
living room and sunken living
room are set off by a metal
art panel and railings.
Sylvia, a retired teacher, is
pleased that at least one part of
her husband’s dream home
wasn’t realized.
“My original dream included
having a pond for my collection
of crocs and venomous snakes in
that sunken living room,”Wortman
says. “But we discovered
my reptiles didn’t do so good at
10,000 feet.”
Every room includes concave
details well-suited to the home’s
textured concrete backbone.
Turn right from the main dome,
walk past the living room, and
visitors find the master bedroom
suite. Turn left and walk down a
hallway to the second dome to
find the library, two guest rooms
and two hobby rooms— one for
Sylvia’s sewing and the other for
Keith’s photography.
Having a devoted sewing
room is a step up for Sylvia, who
used to stash her sewing machine
in a closet, especially because
this room offers views of
high-country wildlife. “I told all
my friends that I came out of the
closet,” she jokes.
Keith and Sylvia Wortman’s
dome home is open for free tours
today and Sunday from 8 a.m. to
5 p.m. It’s located at 2066 Platte
Drive, Fairplay. For more information,
visit monolithic.com.
Sheba R. Wheeler: 303-954-1283
Foreclosed-home buyers antsy
By Dave Carpenter
The Associated Press
It seemed too good to be true: You
bought a house in foreclosure at a fraction
of the former price. Maybe you
even knocked out a wall or two and remodeled
with all the money you saved.
But now thousands of foreclosures
across the country may be invalid because
of bank paperwork problems.
Should you worry?
“Anyone who’s purchased a foreclosed
property in the last three years should really
be concerned,” said George Babcock,
a Providence, R.I., attorney who represents
homeowners who have been foreclosed
on. “They should call the attorney
that did their closing and say, ‘Hey, do I
have a problem?’ ”
Bank of America, JPMorgan Chase and
other major lenders have frozen tens of
thousands of foreclosures in at least
some states while they review the paperwork
for errors or mishandling.
For homeowners, there are several
questions to ask. But first, experts say,
they should check to make sure they have
title insurance, which protects the homebuyer
from any claim on the property
that surfaces after the deal has closed.
Those claims can arise from unpaid
taxes or legal glitches in the ownership
documents. Most people who take out
mortgages are required by their lenders
to buy a policy. For those paying cash,
it’s optional but highly advisable, especially
now.
“If you’re a bona fide purchaser with title
insurance and no knowledge of any irregularities
in the transaction, courts
are going to be extremely loath to set
aside the sale,” said DianeThompson, an
attorney with the National Consumer
Law Center.
The Associated Press
It seemed too good to be true: You
bought a house in foreclosure at a fraction
of the former price. Maybe you
even knocked out a wall or two and remodeled
with all the money you saved.
But now thousands of foreclosures
across the country may be invalid because
of bank paperwork problems.
Should you worry?
“Anyone who’s purchased a foreclosed
property in the last three years should really
be concerned,” said George Babcock,
a Providence, R.I., attorney who represents
homeowners who have been foreclosed
on. “They should call the attorney
that did their closing and say, ‘Hey, do I
have a problem?’ ”
Bank of America, JPMorgan Chase and
other major lenders have frozen tens of
thousands of foreclosures in at least
some states while they review the paperwork
for errors or mishandling.
For homeowners, there are several
questions to ask. But first, experts say,
they should check to make sure they have
title insurance, which protects the homebuyer
from any claim on the property
that surfaces after the deal has closed.
Those claims can arise from unpaid
taxes or legal glitches in the ownership
documents. Most people who take out
mortgages are required by their lenders
to buy a policy. For those paying cash,
it’s optional but highly advisable, especially
now.
“If you’re a bona fide purchaser with title
insurance and no knowledge of any irregularities
in the transaction, courts
are going to be extremely loath to set
aside the sale,” said DianeThompson, an
attorney with the National Consumer
Law Center.
Still skittish about, the asking price for Yester House, an 18thcentury
Still skittish about
Scottish home’s tab
By Peter Woodifield Bloomberg News
edinburgh, scotland» Scotland’s most expensive
house for sale, an 18th-century mansion
with 85 rooms, had its price slashed for the second
time this year as the global economic slump
curbs the enthusiasm of millionaire buyers.
The owner of Yester House, 23 miles east of Edinburgh,
cut the asking price to 8 million pounds
($12.7 million) after failing to attract offers at
$19.05 million. Italian-American opera composer
Gian Carlo Menotti’s adopted son originally put
it on the market for $23.8 million in August 2008.
“A lot of people were interested before the
world started to go to pot,” said John Coleman of
Knight Frank LLP, which is marketing the house.
Yester House, designed by Scottish architects,
was commissioned in 1697 by John Hay,
the 2nd Marquess of Tweeddale, whose family
occupied the house until 1967.
Scottish home’s tab
By Peter Woodifield Bloomberg News
edinburgh, scotland» Scotland’s most expensive
house for sale, an 18th-century mansion
with 85 rooms, had its price slashed for the second
time this year as the global economic slump
curbs the enthusiasm of millionaire buyers.
The owner of Yester House, 23 miles east of Edinburgh,
cut the asking price to 8 million pounds
($12.7 million) after failing to attract offers at
$19.05 million. Italian-American opera composer
Gian Carlo Menotti’s adopted son originally put
it on the market for $23.8 million in August 2008.
“A lot of people were interested before the
world started to go to pot,” said John Coleman of
Knight Frank LLP, which is marketing the house.
Yester House, designed by Scottish architects,
was commissioned in 1697 by John Hay,
the 2nd Marquess of Tweeddale, whose family
occupied the house until 1967.
Lawyer: Foreclosure Staffs Had No Training
By Michelle Conlin
The Associated Press
new york» In an effort to
rush through thousands of
homeforeclosures since 2007,
financial institutions and
their mortgage-servicing departments
hired hairstylists,
Wal-Mart floor workers and
peoplewhohad workedon assembly
lines and installed
them in “foreclosure expert”
jobs with no formal training, a
Florida lawyer says.
In depositions released
Tuesday, many of those
workers testified that they
barely knew what a mortgage
was. Some couldn’t define
the word “affidavit.” Others
didn’t know what a complaint
was, or even what was
meant by personal property.
Most troubling, several said
they knew they were lying
when they signed the foreclosure
affidavits and that they
agreed with the defense lawyers’
accusations about document
fraud.
“The mortgage servicers
hired people whowould never
question authority,” said
Peter Ticktin, a Deerfield
Beach, Fla., lawyer who is defending
3,000 homeowners
in foreclosure cases.
As part of his work, Ticktin
gathered 150 depositions
from bank employees who
say they signed foreclosure
affidavits without reviewing
the documents or ever laying
eyes on them, earning them
the name “robo-signers.”
The deposed employees
worked for the mortgageservice
divisions of banks
such as Bank of America and
JP Morgan Chase, as well as
for mortgage servicers like
Litton Loan Servicing, a division
of Goldman Sachs.
Ticktin said he would make
the testimony available to
state and federal agencies that
are investigating financial institutions
for allegations of
possible mortgage fraud. This
comeson the eve of an expected
announcement today from
40 state attorneys general that
they will launch a collective
probeinto the mortgage industry.
“This was an industrywide
scheme designed to defraud
homeowners,” Ticktin said.
Thedepositions paint a surreal
picture of foreclosure experts
who didn’t understand
even the most elementary aspects
of the mortgage or foreclosure
process — even
though they were entrusted
as the records custodians of
homeowners’ loans.
The Associated Press
new york» In an effort to
rush through thousands of
homeforeclosures since 2007,
financial institutions and
their mortgage-servicing departments
hired hairstylists,
Wal-Mart floor workers and
peoplewhohad workedon assembly
lines and installed
them in “foreclosure expert”
jobs with no formal training, a
Florida lawyer says.
In depositions released
Tuesday, many of those
workers testified that they
barely knew what a mortgage
was. Some couldn’t define
the word “affidavit.” Others
didn’t know what a complaint
was, or even what was
meant by personal property.
Most troubling, several said
they knew they were lying
when they signed the foreclosure
affidavits and that they
agreed with the defense lawyers’
accusations about document
fraud.
“The mortgage servicers
hired people whowould never
question authority,” said
Peter Ticktin, a Deerfield
Beach, Fla., lawyer who is defending
3,000 homeowners
in foreclosure cases.
As part of his work, Ticktin
gathered 150 depositions
from bank employees who
say they signed foreclosure
affidavits without reviewing
the documents or ever laying
eyes on them, earning them
the name “robo-signers.”
The deposed employees
worked for the mortgageservice
divisions of banks
such as Bank of America and
JP Morgan Chase, as well as
for mortgage servicers like
Litton Loan Servicing, a division
of Goldman Sachs.
Ticktin said he would make
the testimony available to
state and federal agencies that
are investigating financial institutions
for allegations of
possible mortgage fraud. This
comeson the eve of an expected
announcement today from
40 state attorneys general that
they will launch a collective
probeinto the mortgage industry.
“This was an industrywide
scheme designed to defraud
homeowners,” Ticktin said.
Thedepositions paint a surreal
picture of foreclosure experts
who didn’t understand
even the most elementary aspects
of the mortgage or foreclosure
process — even
though they were entrusted
as the records custodians of
homeowners’ loans.
Friday, October 15, 2010
Colorado is No. 4 in Forbes business ranking.
Colorado is No. 4 in Forbes business ranking. Forbes has ranked Colorado as the fourth-best state for businesses and for fostering economic growth for the second year in a row.
The Forbes ranking puts Colorado first for labor supply, sixth for overall economic climate and growth prospects, and ninth for quality of life.
The Forbes ranking puts Colorado first for labor supply, sixth for overall economic climate and growth prospects, and ninth for quality of life.
Sleeper House foreclosure sale rescheduled.
The foreclosure sale of the Sleeper House on Genesee Mountain has been rescheduled for Nov. 10, according to Jefferson County foreclosure records.
Bayview Loan Servicing LLC, which holds the home’s mortgage, filed to foreclose in June on the home. Businessman Michael Dunahay bought the house in 2006 for $3.43 million.
As of June 2, Dunahay owed $2.77 million on the original $3.13 million loan. On Sept. 21, he filed his intention to “cure,” or become current on, his mortgage. He needs to pay $170,773 to do so, according to county records.
The 7,000-square-foot house, known for its futuristic design, was used in director Woody Allen’s 1973 movie “Sleeper.”
Denver Post 10.15.10
Bayview Loan Servicing LLC, which holds the home’s mortgage, filed to foreclose in June on the home. Businessman Michael Dunahay bought the house in 2006 for $3.43 million.
As of June 2, Dunahay owed $2.77 million on the original $3.13 million loan. On Sept. 21, he filed his intention to “cure,” or become current on, his mortgage. He needs to pay $170,773 to do so, according to county records.
The 7,000-square-foot house, known for its futuristic design, was used in director Woody Allen’s 1973 movie “Sleeper.”
Denver Post 10.15.10
RECORD HOME REPOSSESSIONS IN SEPTEMBER
Denver Post staff and wire reports
More than 100,000 homes were seized by lenders in September, a record number that probably will decline in coming months as major banks halt repossessions and review their foreclosure practices.
Lenders took over 102,134 properties last month, Realty-Trac Inc. said in a report Thursday. That was the highest monthly tally since the company began tracking the data in 2005, surpassing the August record of 95,364.
In Colorado, lenders took back 2,313 properties last month. Foreclosure filings rose 3 percent to 6,030, with one of every 357 households receiving a notice.
More than 100,000 homes were seized by lenders in September, a record number that probably will decline in coming months as major banks halt repossessions and review their foreclosure practices.
Lenders took over 102,134 properties last month, Realty-Trac Inc. said in a report Thursday. That was the highest monthly tally since the company began tracking the data in 2005, surpassing the August record of 95,364.
In Colorado, lenders took back 2,313 properties last month. Foreclosure filings rose 3 percent to 6,030, with one of every 357 households receiving a notice.
Wednesday, October 13, 2010
"Great Neighborhoods" singles out LoDo.
The Denver Post
Posted: 10/13/2010 01:00:00 AM MDTUpdated: 10/13/2010 08:50:33 AM MDT
Denver's Lower Downtown has been named one of the 10 Great Neighborhoods for 2010 under the American Planning Association's Great Places in America program.
The organization singled out LoDo for its strong political leadership by current and former mayors, historical character and adaptive reuse of warehouse buildings, and use of planning to guide its revitalization. Through the Great Places program, the planning association recognizes unique and authentic characteristics found in three essential components of all communities: streets, neighborhoods and public spaces.
Read more: "Great Neighborhoods" singles out LoDo. - The Denver Post http://www.denverpost.com/business/ci_16323214?source=rss#ixzz12G6gwexs
Posted: 10/13/2010 01:00:00 AM MDTUpdated: 10/13/2010 08:50:33 AM MDT
Denver's Lower Downtown has been named one of the 10 Great Neighborhoods for 2010 under the American Planning Association's Great Places in America program.
The organization singled out LoDo for its strong political leadership by current and former mayors, historical character and adaptive reuse of warehouse buildings, and use of planning to guide its revitalization. Through the Great Places program, the planning association recognizes unique and authentic characteristics found in three essential components of all communities: streets, neighborhoods and public spaces.
Read more: "Great Neighborhoods" singles out LoDo. - The Denver Post http://www.denverpost.com/business/ci_16323214?source=rss#ixzz12G6gwexs
Sunday, October 10, 2010
Mortgage interest rates at all-time low, but qualifying can be tough
By Alan J. Heavens
The Philadelphia Inquirer
With fixed mortgage-interest rates at an all-time low, it might seem as if real estate offices should have house hunters lining up, ready to sign on the dotted line. Last week, Freddie Mac announced that the average 30-year rate had fallen to 4.27 percent.
At that rate, a $200,000 mortgage — not including hazard insurance and taxes — would cost $986.22 a month. Add to that the decline in home prices, and it seems like a combination that’s hard to resist.
But banks are extra-careful these days about whom they lend money to, with the result that many looking to buy houses aren’t able to qualify for the lowest interest rates — or for mortgages, period.
Real estate agents and mortgage brokers say they are trying to work with buyers to clear obstacles to borrowing created by cautious lenders. In some cases, the agents and brokers say, such efforts might include providing lenders more income documentation and clearing up borrowers’ credit issues.
The Philadelphia Inquirer
With fixed mortgage-interest rates at an all-time low, it might seem as if real estate offices should have house hunters lining up, ready to sign on the dotted line. Last week, Freddie Mac announced that the average 30-year rate had fallen to 4.27 percent.
At that rate, a $200,000 mortgage — not including hazard insurance and taxes — would cost $986.22 a month. Add to that the decline in home prices, and it seems like a combination that’s hard to resist.
But banks are extra-careful these days about whom they lend money to, with the result that many looking to buy houses aren’t able to qualify for the lowest interest rates — or for mortgages, period.
Real estate agents and mortgage brokers say they are trying to work with buyers to clear obstacles to borrowing created by cautious lenders. In some cases, the agents and brokers say, such efforts might include providing lenders more income documentation and clearing up borrowers’ credit issues.
Friday, October 8, 2010
Another Gain for Pending Home Sales
Daily Real Estate News | October 5, 2010 | Share
Another Gain for Pending Home Sales
Pending home sales have increased for the second consecutive month, according to the NATIONAL ASSOCIATION OF REALTORS®.
The Pending Home Sales Index, a forward-looking indicator, rose 4.3 percent to 82.3 based on contracts signed in August from a downwardly revised 78.9 in July, but is 20.1 percent below August 2009 when it was 103.0. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, said the latest data is consistent with a gradual improvement in home sales in upcoming months.
“Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market,” he said. “However, the pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence.”
Although Yun expects a continuing steady rise in home sales from favorable affordability conditions and some job creation, he cautioned any sudden rise in mortgage rates could slow the recovery.
“Current low consumer price inflation has helped keep mortgage interest rates very attractive this year. However, recent rising trends in producer prices at the intermediate and early stages of production, along with very high commodity prices, are raising concerns about future inflation and future mortgage interest rates,” he said. “Higher inflation would mean higher mortgage interest rates. In the meantime, housing affordability is hovering near record highs.”
The PHSI in the Northeast declined 2.9 percent to 60.6 in August and remains 28.8 percent below August 2009. In the Midwest the index rose 2.1 percent in August to 68.0 but is 26.5 percent below a year ago. Pending home sales in the South increased 6.7 percent to an index of 90.8 but are 13.1 percent below August 2009. In the West the index rose 6.4 percent to 101.1 but remains 19.6 percent below a year ago.
Source: NAR
Another Gain for Pending Home Sales
Pending home sales have increased for the second consecutive month, according to the NATIONAL ASSOCIATION OF REALTORS®.
The Pending Home Sales Index, a forward-looking indicator, rose 4.3 percent to 82.3 based on contracts signed in August from a downwardly revised 78.9 in July, but is 20.1 percent below August 2009 when it was 103.0. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, said the latest data is consistent with a gradual improvement in home sales in upcoming months.
“Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market,” he said. “However, the pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence.”
Although Yun expects a continuing steady rise in home sales from favorable affordability conditions and some job creation, he cautioned any sudden rise in mortgage rates could slow the recovery.
“Current low consumer price inflation has helped keep mortgage interest rates very attractive this year. However, recent rising trends in producer prices at the intermediate and early stages of production, along with very high commodity prices, are raising concerns about future inflation and future mortgage interest rates,” he said. “Higher inflation would mean higher mortgage interest rates. In the meantime, housing affordability is hovering near record highs.”
The PHSI in the Northeast declined 2.9 percent to 60.6 in August and remains 28.8 percent below August 2009. In the Midwest the index rose 2.1 percent in August to 68.0 but is 26.5 percent below a year ago. Pending home sales in the South increased 6.7 percent to an index of 90.8 but are 13.1 percent below August 2009. In the West the index rose 6.4 percent to 101.1 but remains 19.6 percent below a year ago.
Source: NAR
Helmsley Mansion Sells at Deep Discount
Daily Real Estate News | October 6, 2010 | Share
Helmsley Mansion Sells at Deep Discount
The Greenwich, Conn., estate of the late hotel magnates Leona and Harry Helmsley has finally sold for $35 million. The property was originally listed in early 2008 for $125 million. It was most recently listed at $55 million by Lyn Stevens of Greenwich Fine Properties.
Cynthia L. Smith of the Greenwich law firm Whitman, Breed, Abbott & Morgan LLP, purchased the property. Jane Basham of David Ogilvy & Assoc. sold the property.
The 28-room, 22,000-square-foot home on more than 40 acres was originally built in 1918. In 1989, the Helmsleys were accused of illegally billing their company for more than $3 million in renovations to this property. Mrs. Helmsley was convicted and sentenced to 16 years in prison, though she served less than two. Mr. Helmsley was too ill to stand trial.
Source: Greenwich Time, Susan Nova (10/05/2010)
Helmsley Mansion Sells at Deep Discount
The Greenwich, Conn., estate of the late hotel magnates Leona and Harry Helmsley has finally sold for $35 million. The property was originally listed in early 2008 for $125 million. It was most recently listed at $55 million by Lyn Stevens of Greenwich Fine Properties.
Cynthia L. Smith of the Greenwich law firm Whitman, Breed, Abbott & Morgan LLP, purchased the property. Jane Basham of David Ogilvy & Assoc. sold the property.
The 28-room, 22,000-square-foot home on more than 40 acres was originally built in 1918. In 1989, the Helmsleys were accused of illegally billing their company for more than $3 million in renovations to this property. Mrs. Helmsley was convicted and sentenced to 16 years in prison, though she served less than two. Mr. Helmsley was too ill to stand trial.
Source: Greenwich Time, Susan Nova (10/05/2010)
Sunday, October 3, 2010
Tips for fall home sellers
MOST REAL ESTATE agents say spring is theseasontosella home,but don’truleout fall just yet. Theremay be fewerbuyers, buttheytendtobemoremotivated. Thekey is to findthem fast, because you don’t have much time before the holidays kick in and real estate really slows down, says Annalisa Burgos of HGTV’s FrontDoor.com . Try these selling tips:
Price aggressively. You don’t have the luxury of starting high and making incremental price drops. Be competitive —price your home 5% to 15% below comparable homes on the market.
Stage it to sell. Fall is one of the most beautifultimes of the year, but it can also be hard on home maintenance. Make sure the front yard is clear of leaves, clean out gutters and downspouts, and touch up paint. Incorporate tasteful fall decor. If you have afireplace, make it the focal point of the room.
Be flexible. Bargain hunters are out in force in the fall, so don’t be discouraged by low-ball offers. See them as opportunities to negotiate. If you don’t want to come down on price, be creative, such as offering to pay for closing costs or repairs.
Price aggressively. You don’t have the luxury of starting high and making incremental price drops. Be competitive —price your home 5% to 15% below comparable homes on the market.
Stage it to sell. Fall is one of the most beautifultimes of the year, but it can also be hard on home maintenance. Make sure the front yard is clear of leaves, clean out gutters and downspouts, and touch up paint. Incorporate tasteful fall decor. If you have afireplace, make it the focal point of the room.
Be flexible. Bargain hunters are out in force in the fall, so don’t be discouraged by low-ball offers. See them as opportunities to negotiate. If you don’t want to come down on price, be creative, such as offering to pay for closing costs or repairs.
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