News: Real Estate News

April 8, 2009 - Thanks to record low mortgage rates and declining home prices, 55 million families - half of all U.S. households - can afford today's $200,000 median-priced new home, according to figures released by the National Association of Home Builders (NAHB).

"That's an increase of 17 million households from conditions just two years ago, and the best housing affordability number we have seen in years," says NAHB Chairman Joe Robson. "We are now seeing the first signs that buyers are returning to the marketplace."

Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income as they save nearly $500 per month on principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.

Single-family permits rose 11 percent in February; new and existing home sales also posted gains; and the huge inventory backlog is being slowly
whittled down. In a survey for Century 21 Real Estate last month, a majority of prospective first-time home buyers - 78 percent - said that now is a good time to buy a home. Of those responding to the online poll, 68 percent said that now is a better time to buy than six months ago.

Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March, 1.5 million visitors logged on to NAHB's consumer Web site, www.federalhousingtaxcredit.com, to learn more about the tax credit. 

Further, a new survey commissioned by Move Inc. found that nearly 20 percent of those who plan to purchase a home this year are doing so to take
advantage of the tax credit, which expires at the end of November.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

1. Come clean. It can be tempting to bend the truth when you are trying to convince a lender to approve a loan modification. Only by laying all your cards on the table and disclosing the truth can you begin to develop and implement solutions that will put you back on the path to long-term financial health.
2. Understand your lender's point of view. As far as your lender is concerned, it all boils down to money. You are most likely to be approved if you can show modifying your loan will cost the lender less than a foreclosure.
3. Keep a cool head. Expressing anger toward your lender puts you in an extremely disadvantageous position. For example, your lender may decide that you are unreasonable and that foreclosing would be less costly overall.
4. Give them what they need. In order to expedite the situation, find out exactly which forms you need to fill out and which documents your lender needs to process your application. Make sure you provide everything to your lender or representative in the manner specified.
5. Ask for what you want. Before meeting with your lender, make sure you spend some time figuring out what you want and need. For example, how much can you realistically afford to pay each month?
6. Let them do their job. Loan modifications typically take between 30-90 days from start to finish. During this time, avoid the temptation to micromanage the process. To alleviate unnecessary anxiety, ask your lender for an anticipated timeline.
7. Get your financial house in order. Put a tracking system in place today and start developing a budget to ensure you are not spending more money than you are earning.

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State Farm announced today that it's pulling out of the property insurance market throughout Florida. Regulators have 90 days to approve the move, and State Farm cannot drop policies for at least 180 days after that, so current customers face no immediate threat. Florida Insurance Commissioner Kevin McCarty calls the move disappointing but not a surprise.

Since 1999, the Florida Association of Realtors (FAR) has sponsored a Scholarship/Essay Contest for High School Seniors who reside in Florida. Seniors who plan on continuing their education at a college, university, technical school or some other institution of higher learning are eligible. Children of licensed real estate practitioners are not eligible, nor are children whose parents or guardians are employed by any local Realtor board/associations or by the Florida Association of Realtors®.

Students turning in the first-place winning entry in each of FAR's 13 Regional Districts will receive a $1,000 scholarship award. The 13 student winners will go on to compete to win three $5,000 FAR scholarships on a state level, giving each of the state grand prize winners a total of $6,000 in scholarship funding. FAR will award a total of $28,000 in scholarship funding this year to help young people realize their college dreams.

Each year, FAR sends copies of the scholarship/essay contest application kit and other materials to senior high schools' guidance offices throughout Florida. You may also download the materials on the Floridarealtors.org site.

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ORLANDO, Fla. - Jan. 8, 2009 - United Van Lines tracks its moves each year and compares the number of people moving into each state versus the number moving out. In 2008, the company found Florida to be "balanced," meaning the number of inbound and outbound movers was almost equal. The Mid-Atlantic states saw growth, however, while states to the north saw decreases.

The Mid-Atlantic and Western regions
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Floridians will see a 45-day home foreclosure grace period during the 2008 Holiday Season.  Last week, Governor Crist joined officers of the Florida Banking Association and the Florida Credit Union League to announce the start of the Holiday foreclosure relief period.

Financial institutions across the Sunshine State volunteered to participate in the 45-day period, agreeing to stop filing new foreclosure petitions and scheduling foreclosure sales for homestead properties.  Non-homesteaded properties, businesses and second homes are not included.

Over 150,000 Florida households were impacted by the foreclosure process in October. Fannie Mae and Freddie Mac recently made a similar announcement, suspending foreclosure and eviction proceedings from November 26, 2008 through January 9, 2009.

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Good Faith Estimates will be standardized effective Jan. 1, 2010, under rules issued by the U.S. Department of Housing and Urban Development (HUD) yesterday. The change, HUD says, will save consumers $700 at the closing table by making it easier to compare mortgage offers from competing banks.

"It has been a long road, but today we can finally announce a better way to buy homes in America," says HUD Secretary Steve Preston. "Consumers need and deserve to know what they're getting themselves into before they sign on the dotted line. After carefully considering the concerns of consumers and the different businesses in the housing sector, we have developed an approach that empowers the average family to shop for the most appropriate loan to meet their needs."

Last March, HUD proposed reforms to the longstanding regulatory requirements of the Real Estate Settlement Procedures Act (RESPA), and last May, HUD extended the rule's comment period. HUD received approximately 12,000 comment letters following the proposal of its new RESPA rule. In considering those comments, HUD says it made considerable modifications. For example, HUD originally proposed that settlement agents read a closing script at the closing table and that a copy be provided to borrowers. HUD ultimately discarded the script in favor of a new page on the HUD-1 Settlement Statement that allows consumers to compare their final loan terms and closing costs with those listed on their Good Faith Estimate.

The new Good Faith Estimate should clearly answer the following consumer concerns: