Archive for the 'News & Headlines' Category
Posted by Annalisa Burgos | November 6, 2009
It’s official. The popular first time homebuyer tax credit, which many say is responsible for keeping the housing market afloat, has been extended and expanded to include repeat buyers.
You now have until April 30, 2010, to secure a contract for a home purchase and until June 30, 2010, to close on it. Buyers had been scrambling to close by the previous deadline of Nov. 30.
President Barack Obama signed into law a $24 billion economic stimulus bill today, which includes these incentives. With numerous reports of people abusing the credit, Congress included a provision that requires buyers to submit documentation with their tax returns to claim the credit. The new program is estimated to cost taxpayers $11 billion.
So go out there. Hit up some open houses this weekend. Get house hunting tips and advice at openhouse.com.
You just may find a house you love and get paid for buying it.
Posted by Annalisa Burgos | July 14, 2009
What makes a city or town a “best place to live”?
It varies so greatly from person to person and yet we see these types of lists all the time. Heck, FrontDoor.com is coming up with one too — stay tuned for it!
Not sure if Money Magazine’s new list of Best 100 Small Towns to Live will spur a homebuying spree in the named places, most of which are in middle America.
According to Money, these are the places that ranked highest in terms of factors we value, including a strong local economy, housing affordability, income, education and job growth.
The top spot went to Louisville, CO, which is where we found this 3,200-square-foot, 4-bed, 3.5-bath house listed for $469,500.
Here’s the top 10 and if Money’s list has you longing to move to these places, click on the link and browse homes for sale in that town:
1. Louisville, CO
2. Chanhassen, MN
3. Papillion, NE
4. Middleton, WI
5. Milton, MA
6. Warren, NJ
7. Keller, TX
8. Peachtree City, GA
9. Lake St. Louis, MO
10. Mukilteo, WA
Posted by Annalisa Burgos | July 7, 2009
NFL fans are mourning the loss of football great Steve McNair, who was tragically killed on July 4.
The former quarterback of the Tennessee Titans and later the Baltimore Ravens was found in a Nashville condo he rented, shot dead, along with his 20-year-old girlfriend Sahel Kazemi. Police ruled McNair’s death a homicide and are investigating the case as a possible murder-suicide.
According to reports, the then-married McNair had planned to divorce his wife. The couple had listed their 9-bed, 9.5-bath mansion in the Green Hills neighborhood of Nashville for $3 million.
The 14,000+ square foot home in Woodmont Estates features 26 spacious rooms, vaulted ceilings, a theater room, pool, sauna and hot tub/spa.
See more pictures of the inside and outside of this 1.33-acre estate in the listing on FrontDoor.com.
Perhaps a die-hard Titan fan will find value in walking the halls McNair once did.
Posted by Annalisa Burgos | June 11, 2009
RealtyTrac’s May foreclosure report is out, and as usual, the news is grim. Foreclosure activity is up 18 percent from a year ago. Even worse, most real estate experts are warning us about “shadow foreclosure inventory” which is set to hit the market later this summer. Oh yeah and the unemployment rate is at 9.4 percent. So if you think we’ve hit the so-called “bottom,” think again.
The good news is that President Obama’s stimulus plan seems to be working. Lenders are now more willing to work with struggling homebuyers to refinance or modify their loans or negotiate short sales, in which a house is sold for less than what the borrower owes and a portion of the loan balance is forgiven by the lender. Why would they do this? Because the federal government is giving them money to do this, and besides, better to sell and write off the loss now than deal with the foreclosure process and try to sell a property in crappy condition. I spoke to a short sale expert for Coldwell Banker in San Diego, Troy Huerta, who has some great insight and advice on the subject. Stay tuned for my blog post on that.
Meanwhile, FrontDoor Insider and Freak Out Prevention Specialist Tara-Nicholle Nelson is spreading the word about her Drama-Free Real Estate Guide, which provides concrete solutions to some of the most common issues consumers are facing today. Just in time! Situations like losing your job and trying to make your mortgage payment. Or you got preapproved and suddenly your lender says “no money for you.” Yours truly will post a vlog later taking you behind the scenes of our media tour.
Posted by Annalisa Burgos | June 3, 2009
Treasury Secretary Timothy Geithner’s job is to lead the United States out of the recession. Now he’s got another job — landlord.
Geithner assumed his new role the same way many homeowners in this market do: reluctantly.
The former head of the Federal Reserve Bank of New York listed his five-bedroom Tudor near Larchmont, a suburb north of New York City, for $1.635 million in February. The asking price was later dropped to $1.575 million, about 27K less than what he paid for it in 2004.
Unable to find a buyer, the Geithners opted to rent out the home for $7,500 a month and ride out the rough real estate market.
During a time when home prices are falling faster than a ton of bricks to the bottom of the Hudson, many sellers would rather rent out a home than lose hard-earned equity or do a short sale, where you sell the home for less than what you owe.
Being a landlord isn’t all that bad. Research the local laws and consult a local real estate attorney. If you move out of the city or don’t have the patience to find tenants and maintain the property, you can always hire a property manager.
The downside is that rent usually doesn’t cover all your costs as a homeowner, especially in high-priced markets like New York. Like other sellers put in this position, Geithner still has to cover part of the mortgage payments on $1.25 million in loans and $27,000 in annual property taxes. Ouch. Looks like the housing slump has really hit home for the nation’s top economic official.
SOURCE: Associated Press; Photo by Stephen Chernin
Posted by Annalisa Burgos | May 27, 2009
I never bought a Snuggie. I saw the informercial and laughed at such a ludicrous idea. A year later, Snuggie’s creators are the ones laughing, having sold more than 4 million of those things. Everyone I know has one and raves about them.
I didn’t see that coming.
So it dawned on me, if an infomercial can sell blankets with sleeves, chopping devices, a metal bar you hang on your doorway (Iron Gym) and other random stuff, it can sell houses.
Now bear with me, I’m going somewhere with this.
I was up late one night and one of those “make millions in real estate” commercials came on. You’ve seen these ads — some self-proclaimed millionaire investor goes on TV to hawk their book about how to strike it rich. This particular night a guy named Dean Graziosi was on. I had never heard of him before, but he claimed to have the secret to cashing in on our turbulent housing market. Normally I would have changed the channel. But he must have said something right cause I ended up listening to what he had to say.
What struck me about Dean’s pitch was that he didn’t approach it like “Hey! This is your chance to make money off of people’s misery. Go buy a foreclosure now!” Instead, he talked as if the viewer was a homeowner in financial distress or in danger of losing their home. Sure he’s an investor trying to make a buck, but his testimonials were from people who had major debt and were able to overcome it. I did some research on him, and he generally got good reviews. In a market like this, where so many are frozen with fear, it was nice to hear a positive message of empowerment.
Okay, no, Dean wasn’t actually selling homes on his infomercial, but he was selling a strategy for buying bargain-priced homes that most people are unaware of. And doesn’t that help reduce inventory? The National Association of Realtors (NAR) says housing inventories are up 8.8 percent to nearly 4 million units. Normally, you should have no more than a six-month supply of inventory. At the current level, it would take more than 10 months to sell all these houses.
This week’s batch of housing data shows things are not as bad as they could be, but we’re in no way near recovery. (A few “positive” reports and some economists are throwing that word around again). NAR said April’s existing home sales rose 2.9 percent, with distressed properties, including foreclosures and short sales, accounting for 45 percent. That’s still putting pressure on home prices, which according to NAR, are down 15.4 percent year-over-year.
Meanwhile, the S&P/Case-Shiller National Home Price Index says home prices in March fell 18.7 percent from a year earlier, in the 20 major cities it tracks. Furthermore, home prices have fallen 32.2 percent since the market began its decline in mid-2006.
Oh and did I mention that a new wave of foreclosures are expected to hit the market through the end of this year? More ARMs are about to reset and more properties are moving through the foreclosure process, so expect the number of foreclosures to continue to rise.
Bottom line: There are so many houses for sale out there and not enough buyers to buy them. So maybe an infomercial isn’t such a bad idea. If more people knew how cheap a house can be, more people would buy one, especially if there’s an $8,000 tax credit and tax benefits. I mean if it worked for the Snuggie, maybe it’ll work for real estate.
And yes, I did buy Dean’s book. I’ll let you know how it is after I read it.
Posted by Annalisa Burgos | May 14, 2009
Unless you’re a seasoned real estate investor, most buyers are uncomfortable with approaching a homeowner who’s going through foreclosure and offering to buy their home. Rightfully so, since it’s a very difficult time, emotionally and financially, for the homeowner.
But it’s during this first stage of foreclosure where you can find the best bargains, often through a short sale. Try these helpful tips when dealing directly with the homeowner. Negotiations require patience and tact to avoid hang-ups and slammed doors.
In RealtyTrac’s April foreclosure market report, activity is up 32 percent from last year to another record-high level, mainly due to the first two stages of foreclosure: mortgage defaults and auctions. The third stage — bank repossessions or REOs — fell to their lowest level since March 2008, but RealtyTrac’s CEO James J. Saccacio expects a spike in REOs as more loans “move through the foreclosure process over the next few months.” Not surprisingly, Nevada, Florida and California were the states with the highest rates of foreclosure.
As more homes go through the foreclosure process, more homebuyers are flooding the market in search of bargains. We already saw that in the first quarter, as increased foreclosure sales led to a 14 percent plunge in the median home price from a year earlier, the biggest drop on record, the National Association of Realtors said on Tuesday.
Did you know each state has its own laws governing foreclosures? Do your research before buying. Read about each state’s laws and stay up-to-date with the latest foreclosure news.
Posted by Annalisa Burgos | May 5, 2009
To many of us, the foreclosure crisis is a tragic reality of today’s economy. For savvy con artists, it’s an opportunity to make a lot of money.
Case in point, a California woman, Anna Santos, 22, pled guilty on Monday to mortgage fraud. According to the Mortgage Fraud Blog, Santos reportedly scammed 100 homeowners, offering non-existent loan modification services and conning them out of thousands of dollars. She mailed flyers promoting a foreclosure rescue program that appeared to be from victims’ lenders or a government agency. Victims mailed Santos (operating under a false company name) as much as $3,000 and received forged loan modification documents.
It’s all very sad. You’re facing foreclosure and what little money you have left is stolen by someone you trusted would help you. Which is precisely why lawmakers and government agencies want to more aggressively investigate and prosecute cases of real estate fraud. The Department of Justice, for one, is working to form a national mortgage fraud task force.
Many homeowners facing foreclosure may feel desperate and trapped, and as a result, grasp for any bit of hope they can find. But it’s important to take a breath and research your options. Don’t jump at any offer you get in the mail. In fact, there are three major red flags you should look out for before participating in any foreclosure rescue program.
READ THE RED FLAGS OF MORTGAGE FRAUD.
And get more tips and advice for fighting foreclosure on FrontDoor.com.
Posted by Annalisa Burgos | April 30, 2009
Whenever I go to an open house, the listing agent often offers me the business card of a mortgage broker or loan officer, in case I’m looking for financing. Since I usually secure financing before I go house hunting, I never really think about the recommendation. Figured the guy was a friend, so the agent was doing him a favor by throwing him a bone.
But what if that agent or broker took a kickback for it. A big NO-NO.
Apparently, that’s what the nominee for the head of the Federal Housing Administration is accused of.
David Stevens, president and chief operating officer of Long & Foster, was supposed to be confirmed on Capitol Hill this week, but lawmakers put the vote on hold to review lawsuits alleging his company broke federal anti-kickback laws.
Long & Foster is facing several class action lawsuits, alleging that it shared profits with affiliated mortgage and title companies in exchange for bringing buyers their way. While these relationships are commonplace in the real estate industry, profiting from them is illegal.
If confirmed, mortgage industry vet Stevens will run the FHA, which offers those highly-coveted loans that require as little as a 3.5 percent down payment.
Posted by Annalisa Burgos | April 24, 2009
As far as real estate news is concerned, this week was more of the same. Foreclosure activity is up, home sales are down. And with unemployment up 8.5 percent in March, more out-of-work homeowners will have trouble making their mortgage payments.
Hopefully by now, every struggling homeowner knows there are options to foreclosure, such as a short sale, refinancing or getting a loan modification.
As Rick Sharga, SVP at foreclosure data provider RealtyTrac, explains in this interview earlier this year, three major reasons are fueling the jump in foreclosures across the country.
Meanwhile, one man’s loss is another man’s gain. Not surprisingly, investors and first-time homebuyers are flooding the market looking for bargains. Among the best cities to look? Las Vegas. Sin City had the highest rate of foreclosures of any major city in the first quarter of this year, according to RealtyTrac’s latest report.
And while existing home sales are down 7.1 percent over the past year, the National Association of Realtors says more than half of the homes that were bought in March were snatched up by first-time buyers. Hmmm, must be that $8,000 federal tax credit everyone’s talking about. Wish I could get in on that, but I bought a condo in 2007.
For tips and advice on how to work the foreclosure market, check out FrontDoor.com’s Foreclosure Buying Guide.
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