Real Estate News
An increasing number of home owners are boosting their mortgage balance at a time when it could be more financially prudent to reduce debt.
The official federal numbers aren"t out yet -- and won"t be released until after Thanksgiving. But some home mortgage lenders are jumping the gun and actively offering low-cost "conforming" loans in amounts far in excess of the mortgage size limits set annually by the nation"s giant housing finance investors, Fannie Mae and Freddie Mac.
The message from the federal government to mortgage lenders, brokers, title companies and other real estate settlement service firms could not be clearer: No matter what you may have heard to the contrary, marking-up the costs of consumer credit reports, appraisals, title recordations and other routine mortgage closing fees is illegal.
The Mortgage Bankers Association of America is expected to unveil a far-reaching, $58 billion real estate "economic stimulus" package at its annual convention tomorrow in Toronto.
A well-intended, but somewhat poorly timed, lease-purchase program sponsored by Freddie Mac and the Bank of America could cause buyers to pay more for a home than it"s worth.
Rep. Mel Watt has lived the American dream. Now he wants other African Americans to do the same.
Real estate appraisers are in Washington demanding new rules to protect both lenders and the public against fraud -- and also to assure a greater role for industry professionals.
Although there is no evidence the programs have met their objectives, the Department of Housing and Urban Development"s Officer Next Door and Teacher Next Door property disposition initiatives are "on target" to restart with new controls in place as scheduled on Aug. 1st.
Question: We owe about $55,000.00 on a 30 year, 9% mortgage that is 19 years old. We are in the 31% tax bracket, but plan to "retire" within the next five years. We intend to continue to live in the same house following retirement.
In a statement to the House Financial Services Committee today, the National Association of Realtors® recommended a four-point plan to stimulate home sales and stabilize housing valuations.
While the emerging softer economy suggests prudent financial behavior, more and more consumers from college students to home owners are giving in to easy credit, piling on debt and putting their homes in the line of fire.
WASHINGTON, D.C. -- School loans are proving to be an increasingly tough subject. The number of college students graduating with school loan debts of more than $20,000 has nearly doubled in recent years and most debt-ridden students have no idea what they are getting into -- or how to get out.
With the holidays just around the corner, you better get busy shopping. Here"s a short wish-list of this years must-have gadgets and gizmos for the home. These modern gifts are sure to get your motor running while also enhancing the functionality and livability of your household.
During the real estate transaction (especially if you"re a first-time buyer), you"re hit with so many foreign terms, fees and requirements your head spins. One of those strange and unfamiliar costs is title insurance. In most cases, borrowers have no option -- either you get title insurance (among other requirements) or you don"t get a loan.
Interest Rate Activity During The Past Week
The Federal Housing Administration"s main insurance fund is in the best financial condition ever, according to an audit by a respected accounting firm. But the Department of Housing and Urban Development"s own inspector general says otherwise.
Interest Rate Activity During The Past Week
It used to be that adjustable rate mortgages -- ARMs -- were a good financial option for many borrowers. Combine low start rates with more liberal qualification standards than fixed-rate financing and ARMs could often be the most attractive mortgage option for many borrowers.
Dallas/Ft. Worth, Texas Realtors are so up on their market that they even created a web site about it: www.DFWHousingFacts.org. The web site touts all the reasons the 4th largest metropolitan area in the U.S. is a great place to buy in today’s economic environment.
You"re purchasing a new home and wonder how you can build equity quicker than you have in the past. The answer could be a shorter-term mortgage.
You"ve been dreaming of building that extension on the house for several years. And despite lots of number-crunching and saving, it appears you won"t be able to achieve that dream without a loan. That"s an option which
In today"s fast-paced seller"s market, it"s not uncommon for prospective buyers to find themselves in a bidding war over a house. And while it may appear an innocent move (after all, the lucky bidder gets the house!) there can be dangerous downstream affects.
Prepayment penalties are those charges which a lender imposes if you
After 90 days of rapidly rising mortgage rates ""balloon"" mortgages are
Three years ago, credit scoring had little to do with mortgage lending .
It"s amazing how many people think bi-weekly mortgage
Peter G. Miller
"There"s not much sparkle on the Christmas tree" this year for Canadian retailers, economist Maureen Farrow told delegates to the recent conference of the International Council of Shopping Centers (ICSC) in Toronto. The state of the economy dominated the conversation at the recent conference, but at a panel discussion featuring mayors from across the country, two long-term development issues -- infrastructure and sustainability -- were the big topics.
Does it make a difference what part of the month you choose for closing on
When a 1998 Intellitech survey showed that only 14% of 1,000 refinancing
The U.S. Department of Housing and Urban Development has asked Congress to
Right now, with interest rates at their lowest levels in decades, most
Let"s say you"ve never missed a mortgage payment, you"ve never been late on
Two-thirds of baby boomers who make more than $100,000 intend to downsize in suburbia, according to a report from building industry watcher Hanley Wood. Boomers are the Americans born between 1946 and 1964 and number 78 million strong -- 28 percent of the population.
Each year about 40 percent of all home sales involve first-time buyers, which means that 60 percent of all transactions involve people who have bought and financed before. Surely buyers, sellers, and brokers must wonder why it is that with each home sale buyers must be repeatedly qualified and why debt from one home cannot be transported to another.
increasing abundance of loan options. Unlike credit or personal loans, the interest from home equity loans is typically tax
"Home equity lending is already big business, and it"s growing as real estate prices rise dramatically in the Bay Area," says Norma Garcia, staff attorney with Consumers Union. "While some loans can help consumers, others only lead to dangerous debt and foreclosure for the "cash-poor, equity-rich." We want to help home owners understand the difference between a good loan and a dangerous one, and give them the information to protect themselves and their homes."
Advice for spending your tax refund -- which could be more than $2,000 this year -- is a lot like advice for using home equity money.
It may not always make sense to sell your home. If that"s the case, renting it could be a good option. But understanding the rental process and using expert help will alleviate extra stress.
As more homeowners remodel their kitchens with comfort and the environment
President Bush has proposed -- once again -- major tax reforms. And with a friendly Congress, it appears likely that some form of tax legislation will be enacted early this year. Indeed, there is even talk of making some of the tax laws retroactive, which will make it even more difficult for most taxpayers to prepare and file their income tax return.
Don"t confuse deferred maintenance with the need to call the repairman.
Transforming your house to meet the specific needs of your family, adding
As you trim your tree, hang the lights, and wrap your gifts, you"ll want to
It would be easy to write a 2010 real estate forecast by repeating the industry line that “the new year will mark a turnaround for real estate values; those who act fast will be able to get the best buys.” Real world facts, at least in San Diego, seem to indicate otherwise.
Move up, move down, move sideways; it just doesn"t matter. Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners. It is unfortunate that the credit has too often been characterized as a credit for "move-up" homeowners. The phrase carries the implication that the new home must cost more than the sale price of the former one. Indeed, even the November 6 White House Press Release said that the credit would be available to qualified homeowners who "wish to step up to a new home." Same implication.
If your listing isn"t selling and you"re not sure that a price reduction is the best solution, what else can you look at? Well, it might be really simple. Have you checked access lately? Lockbox still there? Key still in it? Key still work in the lock (sticky locks kill showings)?
So, you work in a resort community where most of the buyers and sellers live somewhere else. It"s not likely you"ll run into them at the grocery store or local coffee shop, and they probably won"t be having a housewarming party you can finagle an invitation to (or even offer to host!). And unless their friends all decide they want to keep up with the Jones"s and buy a vacation home, too, your past clients probably won"t be a good source of referrals, no matter how deliriously happy they are with you.
One reason that many real estate agents are less than enthusiastic about short sales is that, too often, a commissionectomy may be involved. By demanding a certain amount of net proceeds, the lender effectively cuts the commission that had been stipulated in the listing agreement. (To be sure, since March 1, 2009 Fannie Mae has prohibited its servicers from cutting short-sale commissions below 6%; and, as of August 20, Freddie Mac announced the same policy. But not all loans are held by those agencies.) Brokers and agents should be pleased, then, to learn of a recent court case that awarded a broker"s commission when a lender sought to cut it just before closing.
I have discovered the secret for creating Job Security as a Real Estate agent. Okay. Maybe it’s not such a big secret, since almost every agent already knows about it. But I guarantee that few actually do it consistently. So what’s the big secret?
If only the President’s foreclosure-prevention plan worked as well as “cash for clunkers”. But it hasn’t. When the Administration announced the Making Homes Affordable plan in February of 2009, officials said they hoped it would help 4 million distressed homeowners to stay in their homes. As of this writing (8/2/09), the Administration has acknowledged that there are only 200,000 trial loan modifications under way.
Champion Rule: We usually attack the time management problem out of order.
A lot of times people ask me what they can do to be a better salesperson and more effectively grow their business. And while I certainly don"t have a silver bullet, one size fits all answer, I will bring up something Realtors™ can do right now that can have a significant impact on their business.
Converting FSBO listings involves a process that, in a number of ways, is similar to working with expired listings. However, there are two key differences between the two areas.
I’ve been doing a little private SOI (Sphere of Influence) tutoring with some local Denver agents.
Like a train, a transaction can get derailed at any point on the track. A closing can be hit by a clouded title, a home not appraising for value, a rapid change in interest rates, an undisclosed credit or income issue, or one of countless other unanticipated issues.
A Champion accepts nothing less than excellence. When you look at successful individuals and successful companies, good is not good enough. They are clearly striving for excellence. In Jim Collins" best selling book, Good to Great, one of his premises is that good is really the enemy of great; that if we are willing to settle for good, we will never achieve greatness. I agree that to hit the Champion level as an Agent, you can"t be satisfied with mid-level skills, abilities, and mindset. You must resolve to raise your level of expectation and performance, first for yourself and then for your staff, to the predetermined Champion level.
There has been a lot of discussion of late on real estate blogs regarding buyer agency and the plusses and minuses of working in a buyer agency-only firm (Exclusive Buyer Agency) versus practicing buyer agency in a brokerage that also includes seller agency.
On January 13 Fannie Mae released an announcement describing a new policy that will allow qualified renters to remain in Fannie Mae-owned foreclosure properties. Formally known as the National Real Estate Owned Rental Policy, it is meant to address the difficulties faced by tenants who – often through no fault of their own – face serious disruptions in their lives because the owner of the property in which they live has been foreclosed upon.
The past year will be remembered as one of the most eventful years in economic history our country has seen in many decades. Scandals and financial crises dominated the headlines. Not a month passed without news about something "crashing", corporate or government "back-room deals", and emergency bailouts to fix problems that many consumers had been unaware of.
For Sale by Owner"s can be uncomfortable for real estate Agents to work with. They can often be extremely rude and inconsiderate. They also can be a great source of income if handled in the appropriate manner. The reality is you do not have to look for them; they are out there. They are advertising in the newspaper saying, "Come list me."
Landlords who pay attention to such things know that they may incur a wide range of liabilities for the behavior of their tenants, their tenants" guests, their tenants" dogs, etc. Moreover, as lawsuits go on and on and court opinions are rendered, the trend continually seems to be that this range of liability is expanded, never contracted.
Time-consuming fires are the hot issues that result from the emotional turmoil involved in many real estate transactions. Sometimes they require calm and caution; other times you need to put on a fireman’s hat and start dousing the flames of a delayed closing, emotionally frustrated buyer or seller, problem co-op agent, or slow moving inspector, appraiser, or loan officer. Let the following rules guide your responses:
Question: Some HOA websites and newsletters include a service directory which are recommendations of members. The board has been advised by our lawyer to refrain from posting such lists. I feel the service of these lists overpowers the possibility of legal risk.
We have noted that The 2008 National Association of Realtors® Profile of Home Buyers and Sellers contains valuable information for sellers and their agents as to how buyers find the homes that they ultimately buy. The profile also contains valuable and interesting information as to how both buyers and sellers find the agents that they ultimately use.
During the recent California legislative session a number of bills have been introduced that attempted to deal with various problems associated with the enormous amount of foreclosures taking place in the state. Not all of those bills have passed, of course, and some that did were vetoed by the Governor. One that did survive and was signed into law is Senate Bill 1137 (Perata). It addressed problems experienced by three different groups: homeowners in default, renters of homes that have gone into foreclosure, and communities in which foreclosed properties are located.
What is the secret to success?
Sometimes to implement the concepts in this system, you have to make room for them in your business plan. In my career and now in coaching some of the top agents in North America, it has been proven that an agent must free up time and energy doing low-profit, low-priority, and sometimes down-right stupid activities.
Here"s a fact: Most real estate Agents know too little about the markets in which they operate. That is one of the reasons why consumers think they know more -- or at least as much as -- their Agents do and why they don"t hold their Agents in higher regard.
Have you ever heard the commission-negotiation-avoidance strategy of creating a menu of packages for a seller to choose among? For example (all figures are illustrative only), you might offer a 4 percent package which includes minimal services; a 5 percent package which has a moderate level of service and a 6 percent package that includes a kitchen-sink level of service.
Did you know that you could be sabotaging yourself in trying to implement the Law of Attraction? If you are going to practice the Law of Attraction successfully, there can"t be any "room for self-criticism."
You"ve done it. You"ve found a buyer to purchase your home. In fact, he"s even signed the purchase agreement. All should be grand. Then it hits---a major case of seller"s remorse. What should you do now? Call the buyer to back out of the sale?
Here"s a question for you? What type of pipe carries gas into your home? This isn"t Trivial Pursuit; it"s actually an important question that many homeowners and interested buyers can"t answer. But they ought to know for safety reasons.
If you are being transferred, enlarging your family, or preparing to make an offer on another home, you are a motivated seller - ready to make the best deal to sell your home quickly. You and your real estate agent can take numerous and appropriate actions to help you meet your goals.
Reverse exchanges often strike fear in the hearts of legal and tax professionals trying to protect clients who are determined to use this technique to pay as little tax as possible. This is because there has been no formal acknowledgement of reverse exchanges by the Service until now.
The 15-year FRM this week averaged 5.72 percent with an average 0.6 point, down from last week when it averaged 6.14 percent. A year ago at this time, the 15-year FRM averaged 5.99 percent.
The only constant beside taxes and death is change...an oxymoron if ever
There are ten houses on your street for sale: they"ve sat for six months and
Sales volumes in the GTA decreased 18 per cent compared to the first half of October 2007, when 3,297 transactions were recorded and are down 10 per cent compared to the same period in 2006 when 3,007 sales took place.
A new report by economist Derek Holt of RBC Economics has a positive outlook for the Canadian mortgage market, largely thanks to recent mortgage innovations such as 30-and 40-year mortgages.
The thorny issue of allowing Canadian homeowners to deduct mortgage interest payments from their income tax is back in the news, after the Canadian Institute of Actuaries suggested it would help people save for retirement. And that"s important because a recent study commissioned by the group says that two-thirds of Canadians expecting to retire in 2030 are not saving enough money to avoid financial hardship.
When can you afford to be wrong?
If you are starting to feel old, perhaps you should blame the buildings in which you live, work and play. They are not the age-free environments that we need to support us as we move through different stages of life.
A new report, Much Ado About Nothing: Canadian House Prices Not Based on Demographics Alone, predicts that Canadian house prices are likely to double in the next 20 years, and not drop as some analysts have feared.
Rising real estate values have made Canadians "house rich," but their spending habits may keep too many of them "cash poor." Canadian households currently carry about C$1.10 in debt for every dollar of disposable income, even though residential real estate continued to be the major contributor to growth in national wealth, according to Statistics Canada.
The early arrival of Daylight Savings Time (DST) serves as an excellent reminder of two basic elements of home equity management: annual scheduled maintenance and response to change.
Well-designed work space doesn"t just happen.
Canadians typically think "back to school" when it comes to September, but most real estate professionals have education on their mind all year long.
The 15-year FRM this week averaged 6.14 percent with an average 0.6 point, up from last week when it averaged 5.63 percent. A year ago at this time, the 15-year FRM averaged 6.08 percent.
There"s been a dramatic change to Toronto"s skyline in the last few years as dozens of new high-rise condominiums have been built to feed the current housing boom. While it appears the market may be cooling, a new survey suggests that the long-term prognosis is good for condo developers in Canada.
Most Canadians would agree that August is a great time to be lazy, so why not use this summer"s doldrums to save yourself time and money once summer is over. Get really lazy and let someone else do your real estate updating for you. A lot has happened over the past year, but if you haven"t kept track of all the changes that affect real estate, you may miss out on an opportunity.
Prosperity does not descend on Canadian communities by accident, but through the hard work and determination of its visionary residents. One living example of Canadian resourcefulness is a community in the shadow of one of the world"s natural wonders.
A lot of people assume that the federal bailout law is all about helping banks and buying toxic mortgage portfolios. That"s true, but Congress included some important tax items in the Emergency Economic Stabilization Act that could be of immediate use by owners and developers of investment real estate.
After covering the home improvement industry for more than 20 years, I"m still astounded at the number of innovative products that keep coming on the market. Some are brand new inventions from Canadian companies, and some are time-tested ideas from around the world that are just now making it to this country.
Savvy Canadian buyers seek out professional real estate advice and cutting edge mortgage info before signing on the dotted line to purchase a new home, but how many take a close look at the impact the garden is having on property value? Home inspections have become fairly standard in resale and new home purchases, but who can help you evaluate the cost of maintaining or transforming this personal oasis?
Overall year-to-date sales at the end of the month were nearly five per cent ahead of 2005"s pace, following a record first-quarter this year.
Two new studies released by Canadian banks this week say that although the housing market is still booming, price gains are moderating to a more sustainable level. But in red-hot Vancouver, where prices have been appreciating by 22 per cent a year, there may be trouble looming for investors.
Escaping a couple of weeks of winter weather sounds great, but Canadians without school-aged children to contend with, should consider extended-stay vacationing and get a real break from
Swept up in the season"s frenzied search for presents, Canadians may overlook gifts that will truly keep on giving -- perhaps beyond the gift-giver"s own lifetime. The intense media hype driving material present-giving can overshadow the long-lasting appreciation derived from gifts that support and sustain our way of life. Among local nonprofit organizations deserving gifts of time or money, donated on behalf of loved ones, in your name or anonymously, are Land Trusts, which are dedicated to preserving neighbourhood connections and protecting cherished, and often at-risk, natural areas.
Government regulation of real estate is a hot topic these days.
Suburban Canadians love their cars, but they love their homes and green spaces more, so a new "green" shift in subdivision design may be a welcome change.
The Canadian economy gained momentum in 2004 that promises to roll on through 2005. Reports from Canadian real estate sectors reveal their activity during last year should be reflected in solid performance this year even though local variations may occur.
In almost all Canadian metropolitan areas, home ownership rates rose throughout the 1990s, particularly between 1996 and 2001. This improvement was a response to factors that include accelerating income levels and low interest rates. Although the move towards home ownership promises to continue through 2005, not all Canadian families can join this trend whatever their dreams.
In the center of the country, a market is turning upward and it might be prophetic that it"s in middle America. Kansas City home buyers now may look back and realize they"ve missed the absolute best deals in this Missouri/Kansas city that is split between the two states.
Canada"s federal housing agency, Canada Mortgage and Housing Corporation (CMHC), reports that its experts are continually fielding questions from housing industry professionals who are anxious about the state of trade relations with Canada"s largest trading partner, the United States. From CMHC"s viewpoint, the key question is: Do Canadian companies in the housing industry have what it takes to compete internationally?
A few short weeks ago, the 95% of Canadians who gave gifts went on a holiday spending spree that might limit individual opportunities for owning real estate in 2004. Those who spent cash may be ahead since they start the new year without holiday debt. Canadians who used credit cards may benefit from a behaviour-modifying post mortem of their spending habits to reduce debts and increase saving.
Icynene Inc., the Ontario-based manufacturer of a polyicynene foam-based insulation system, has support from the Canada Mortgage and Housing Corporation (CMHC) to expand its operations south of the border.
Canada"s economic future depends on support provided by the small business sector during periods of slower job creation, according to Scotiabank"s recent small business economic report, Small Business ... Supporting National Employment as Job Creation Slows. Companies in the construction and real estate industries, and related service areas, play a major role in small business growth.
"It"s a scary world out there," said one neighbour to another when they met on a Canadian street corner between heat waves. Comments like this are replacing the traditional Canadian "hot enough for you" mantra, but there is no humour or bonhomme in this resignation to the fates.
When you visit a new home site or condominium showroom, do you ask whether the house or condo would qualify for a reverse mortgage? Although more and more Canadians are aware of these financial products, reverse mortgages are far from a mainstream concept in Canada. And yet the day will probably come when being able to access the accumulated value in your real estate will be an important part of your buying decisions.
With more than 500,000 condominium units in Canada and one in four new homes built as condominiums, Canadian buyers need basic condominium buying skills to protect them in any market.
Several years ago, I took the 90-minute drive from Toronto to the Blue Mountain area of Ontario to spend a few days on Georgian Bay, which has the longest freshwater beach in the world. The beach was great, but the accommodation and local attractions left much to be desired. That"s all changed with the development of The Village at Blue Mountain, the latest resort from Intrawest Corporation of Vancouver, B.C.
According to Canadian Business Magazine: "For the second year in a row, precious metals/mining stocks led the rankings, capturing nine of the top 10 spots. If you invested in sectors such as energy and real estate, you also may have seen some impressive gains."
Two new model homes, just erected on one of the busiest highways in Canada, are attracting a lot of attention. One is a stylish bungalow ideal for a young family or for empty nesters; the other is a two-storey cottage that will have a lot of appeal for those driving by on the way to Ontario"s cottage country. The homes, like many other modern new home developments, have top-quality finishes and plenty of custom features.
It"s been 46 years since Canadians could get a deal this good for a mortgage. But 46 years ago, there were few places to go if you wanted a mortgage. Most people went to their local banks, hat in hand, and took whatever terms were offered.