Tuesday, September 30, 2008
House defeats $700B financial markets bailout
The House on Monday defeated a $700 billion emergency rescue for the nation's financial system, ignoring urgent warnings from President Bush and congressional leaders of both parties that the economy could nosedive into recession without it."
McColl: Wachovia sale is 'body blow' to Charlotte
"Charlotte-based Wachovia Corp., saddled with bad loans and a loss of investor confidence that escalated on Friday, said today it is selling its retail bank, wealth management unit and corporate and investment bank to Citigroup Inc."
Thursday, September 25, 2008
Beazer settles federal probe
"Beazer Homes, once a major Charlotte-area homebuilder, said Wednesday it settled one of several federal investigations admitting no wrongdoing and paying no fine."
Wednesday, September 24, 2008
BofA names new head of mortgage sales
"Bank of America Corp., the nation's second-largest bank, named Craig Buffie as its top mortgage-sales executive, displacing former Countrywide Financial Corp. executive Drew Gissinger."
No Exceptions for Short Sales
"Increasingly, sellers seeking short sales are encountering a new twist. Lenders are agreeing to let some short sales go through, but they want the home owners to sign a note promising to pay some or all of the balance due - debts that could burden borrowers for the rest of their lives. Moody's Economy.com estimates that about 10 million homeowners have negative equity, a condition known colloquially as being upside down or underwater. By next June, the forecasting company expects the total to rise to 12.7 million-a quarter of all homeowners who have mortgages.
'The first wave of foreclosures involved a lot of investors who just disappeared,' says Lance Churchill of Frontline Seminars, which teaches real estate practitioners how to negotiate with lenders on short sales. 'Now, homeowners with jobs and assets are underwater and want to sell. The banks want as much as they can get, today or in the future, and the owners want to get away clean.'
If the lender does a short sale without extracting anything from the seller, everyone in the country who is upside down could try to wiggle out from under and banks will take a fresh wave of hits. But if the lender pushes too hard, the borrower will default, leaving the bank in worse shape.
Source: The New York Times, David Streitfeld (09/18/08)"
'The first wave of foreclosures involved a lot of investors who just disappeared,' says Lance Churchill of Frontline Seminars, which teaches real estate practitioners how to negotiate with lenders on short sales. 'Now, homeowners with jobs and assets are underwater and want to sell. The banks want as much as they can get, today or in the future, and the owners want to get away clean.'
If the lender does a short sale without extracting anything from the seller, everyone in the country who is upside down could try to wiggle out from under and banks will take a fresh wave of hits. But if the lender pushes too hard, the borrower will default, leaving the bank in worse shape.
Source: The New York Times, David Streitfeld (09/18/08)"
REAL Trends Comment on: $700 Billion Bailout!
REAL Trends Comment: The proposed bailout was brought on by several factors. High levels of liquidity in world capital pools and extremely low interest rates for too long a period of time created an environment where debt became too attractive a means for investment; both regulated and unregulated mortgage conduits lowered or removed any restraints as to historical underwriting standards; the "mark-to-market" provisions of recent financial re-regulation forced firms to write down and write off bad investments and the affordability crisis hit housing sales hard enough to drop units and prices hard.
Whether a bailout of the proportions estimated by the Treasury will actually diminish the declines in prices and units is unknown at the time of this writing. We do believe that the last thing that Federal regulators should do at this time is reduce liquidity or raise interest rates.
Whether a bailout of the proportions estimated by the Treasury will actually diminish the declines in prices and units is unknown at the time of this writing. We do believe that the last thing that Federal regulators should do at this time is reduce liquidity or raise interest rates.
$700 Billion Bailout!
The Bush administration's proposed $700 billion financial rescue began to take shape today with lawmakers debating whether to add provisions to protect taxpayers, according to CNNMoney.com. Banks and other companies called for expanding its scope beyond mortgages. CNNMoney reports that Democrats want independent oversight, homeowner protections and limits on executive pay.
Jerry Howard, executive vice president and CEO of the National Association of Home Builders (NAHB), says "The National Association of Home Builders applauds the Bush Administration, Federal Reserve and Congress for moving quickly to stem the ongoing financial crisis. Policymakers realize the root causes-falling home prices, mounting foreclosures and a frozen credit market-must be addressed now.
John A. Courson, Chief Operating Officer of the Mortgage Bankers Association (MBA) agrees. "The broader steps outlined by Treasury are aimed at ending the further meltdown in the financial markets and are designed to minimize the resulting impact of the market turmoil on the broader economy. It's another step in the long-term process of restoring a balance between the supply and demand for housing in a number of markets and thus addressing the continuing problem of mortgage delinquencies and foreclosures.
However, The Center for Responsible Lending's President Mike Calhoun says that the bailout won't stop foreclosures that push down property values. "The government plan announced by Treasury Secretary Paulson and Fed Chairman Bernanke fails to deal with the root cause of the crisis- families in foreclosure-and instead is purely and simply a bailout of the lenders who created this disaster. The bailout will not solve our economic problems because it will do virtually nothing to stop the foreclosure epidemic.
Jerry Howard, executive vice president and CEO of the National Association of Home Builders (NAHB), says "The National Association of Home Builders applauds the Bush Administration, Federal Reserve and Congress for moving quickly to stem the ongoing financial crisis. Policymakers realize the root causes-falling home prices, mounting foreclosures and a frozen credit market-must be addressed now.
John A. Courson, Chief Operating Officer of the Mortgage Bankers Association (MBA) agrees. "The broader steps outlined by Treasury are aimed at ending the further meltdown in the financial markets and are designed to minimize the resulting impact of the market turmoil on the broader economy. It's another step in the long-term process of restoring a balance between the supply and demand for housing in a number of markets and thus addressing the continuing problem of mortgage delinquencies and foreclosures.
However, The Center for Responsible Lending's President Mike Calhoun says that the bailout won't stop foreclosures that push down property values. "The government plan announced by Treasury Secretary Paulson and Fed Chairman Bernanke fails to deal with the root cause of the crisis- families in foreclosure-and instead is purely and simply a bailout of the lenders who created this disaster. The bailout will not solve our economic problems because it will do virtually nothing to stop the foreclosure epidemic.
VA Loans still don't need down payment
"The U.S. Department of Veterans Affairs, whose loans remain one of the few no-down-payment options in this tight market, have made more than 162,000 home loan guaranties this year, an increase of more than 31 percent over the same period last year.
The VA has tried to streamline the loan process by allowing veterans to apply for a loan before they obtain a VA Certificate of Eligibility. Once the borrowers have demonstrated that they are otherwise eligible, lenders can access the program's Web portal to use VA's online Automated Certificate of Eligibility (ACE) system and obtain the certificate for the veteran. Many times, lenders can receive the certificate within seconds. The VA can process the application in less than 24 hours.
VA-guaranteed home loans are made to eligible veterans, service members, and surviving spouses through private mortgage lenders throughout the United States."
The VA has tried to streamline the loan process by allowing veterans to apply for a loan before they obtain a VA Certificate of Eligibility. Once the borrowers have demonstrated that they are otherwise eligible, lenders can access the program's Web portal to use VA's online Automated Certificate of Eligibility (ACE) system and obtain the certificate for the veteran. Many times, lenders can receive the certificate within seconds. The VA can process the application in less than 24 hours.
VA-guaranteed home loans are made to eligible veterans, service members, and surviving spouses through private mortgage lenders throughout the United States."
Saturday, September 20, 2008
BofA claims success in halting foreclosures
A Bank of America official testified Wednesday that the company helped save 52,000 homes from foreclosure in the two months following its purchase of Countrywide, the troubled mortgage lender.
Tuesday, September 16, 2008
UNCC economist: Charlotte economy ‘robust'
"The economy's worst may be behind us, but don't expect things to improve anytime soon."
Monday, September 15, 2008
Agent killer found guilty
Being a REALTOR can be a serious safety situation. Our office teaches us many aspects of safety and the story below will make you believe how important it is.
(EL CAJON, Calif.) - A man who shot and killed his listing agent in a dispute over the sale of a condominium has been found guilty of second-degree murder.
A jury said Michael Ray Jennison killed agent James Magot on Feb. 1, 2007.
Testimony indicated that Jennison became angry with the agent because the agent wanted to purchase Jennison's condo for himself, rather than sell it to another person who had put in a bid. The two men fought at the condo, then Jennison went to another room, retrieved a gun, and fired twice into Magot's head. Evidence in the trial indicated Jennison was distraught over the death of his mother who had owned the condo."
(EL CAJON, Calif.) - A man who shot and killed his listing agent in a dispute over the sale of a condominium has been found guilty of second-degree murder.
A jury said Michael Ray Jennison killed agent James Magot on Feb. 1, 2007.
Testimony indicated that Jennison became angry with the agent because the agent wanted to purchase Jennison's condo for himself, rather than sell it to another person who had put in a bid. The two men fought at the condo, then Jennison went to another room, retrieved a gun, and fired twice into Magot's head. Evidence in the trial indicated Jennison was distraught over the death of his mother who had owned the condo."
REALTOR Safety is REAL!
(WASHINGTON) - NAR has declared this week (Sept. 14-20) as Realtor Safety Week and is urging members to take advantage of courses that teach them how to remain safe in their daily meetings with strangers.
The association is offering a safety training course online at: http://www.Realtor.org/RealtorUniversity
It also is offering these basic tips:
-- Follow clients while touring potential homes instead of leading.
-- Always take your own car for showings.
-- Meet potential new clients for the first time in your office.
-- Carry pepper spray.
-- Check in with your office often."
The association is offering a safety training course online at: http://www.Realtor.org/RealtorUniversity
It also is offering these basic tips:
-- Follow clients while touring potential homes instead of leading.
-- Always take your own car for showings.
-- Meet potential new clients for the first time in your office.
-- Carry pepper spray.
-- Check in with your office often."
Friday, September 12, 2008
NAR - Home Sales to Sold is Steady
The level of home sales is expected to show little movement in the months ahead, according to the latest projections by the National Association of Realtors®.
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in July, fell 3.2 percent to 86.5.
"Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings," says Lawrence Yun, NAR chief economist. Looking at middle-ground assumptions, existing-home sales are projected to total 5.01 million this year before rising 6.9 percent in 2009 to 5.35 million. After declining an average of 4 to 7 percent this year, home prices are forecast to rise by 2 to 4 percent next year.
Here's how the PHSI fared across the United States:
* Midwest: rose 2.8 percent to 81.6 in July but remains 2.4 percent below a year ago.
* South: unchanged, holding at 93.7, but is 13.4 percent below July 2007.
* Northeast: fell 7.5 percent to 73.6 in July and is 13.2 percent below a year ago.
* West: dropped 10.6 percent to 90.3 but is 6.5 percent higher than July 2007.
While the South is holding steady, a bright spot in Florida is Osceola County (near Orlando) where nearly 9 percent more home sales took place in that county during August 2008 than during August 2007.
REAL Trends Comment: Initial results from REAL Trends Housing Report show that housing closings for August 2008 were ahead of August 2007 in over 10 states including California, Nevada, Arizona and Florida. More soon from the REAL Trends Housing Report.
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in July, fell 3.2 percent to 86.5.
"Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings," says Lawrence Yun, NAR chief economist. Looking at middle-ground assumptions, existing-home sales are projected to total 5.01 million this year before rising 6.9 percent in 2009 to 5.35 million. After declining an average of 4 to 7 percent this year, home prices are forecast to rise by 2 to 4 percent next year.
Here's how the PHSI fared across the United States:
* Midwest: rose 2.8 percent to 81.6 in July but remains 2.4 percent below a year ago.
* South: unchanged, holding at 93.7, but is 13.4 percent below July 2007.
* Northeast: fell 7.5 percent to 73.6 in July and is 13.2 percent below a year ago.
* West: dropped 10.6 percent to 90.3 but is 6.5 percent higher than July 2007.
While the South is holding steady, a bright spot in Florida is Osceola County (near Orlando) where nearly 9 percent more home sales took place in that county during August 2008 than during August 2007.
REAL Trends Comment: Initial results from REAL Trends Housing Report show that housing closings for August 2008 were ahead of August 2007 in over 10 states including California, Nevada, Arizona and Florida. More soon from the REAL Trends Housing Report.
Wednesday, September 10, 2008
Mortgage rates ease on news indicting consumer spending may be slow
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.35 percent with an average 0.7 point for the week ending September 04, 2008, down from last week when it averaged 6.40 percent. Last year at this time, the 30-year FRM averaged 6.46 percent.
'Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow,' says Frank Nothaft, Freddie Mac vice president and chief economist. 'The economy grew at an upwardly revised 3.3 percent pace in the second quarter, boosted by the smallest trade deficit in eight years, and residential fixed investment slowed growth by 0.6 percent, the least amount since the same period a year ago. 'However, personal income fell 0.7 percent in July, the first decline since August 2005 and will likely slow consumer spending in the third quarter.'"
'Mortgage rates eased a bit over the holiday-shortened week following release of economic data that suggest consumer spending may slow,' says Frank Nothaft, Freddie Mac vice president and chief economist. 'The economy grew at an upwardly revised 3.3 percent pace in the second quarter, boosted by the smallest trade deficit in eight years, and residential fixed investment slowed growth by 0.6 percent, the least amount since the same period a year ago. 'However, personal income fell 0.7 percent in July, the first decline since August 2005 and will likely slow consumer spending in the third quarter.'"
Home sales plummet 34.5% | www.charlotteobserver.com
Tuesday, September 9, 2008
Buy or rent college nest?
Markets embrace Fannie, Freddie takeover
"Bank stocks jumped this morning as investors embraced the federal government's takeover of Fannie Mae and Freddie Mac as a step toward stabilizing the floundering mortgage market."
Sunday, September 7, 2008
NAR's Newest Designation Is Green
REALTOR® Magazine-Daily News-NAR's Newest Designation Is Green
In response to growing consumer demand for green homes and eco-friendly building practices, the NATIONAL ASSOCIATION OF REALTORS® has introduced a new Green designation for real estate practitioners.
In response to growing consumer demand for green homes and eco-friendly building practices, the NATIONAL ASSOCIATION OF REALTORS® has introduced a new Green designation for real estate practitioners.
Thursday, September 4, 2008
Positive Sign in Real Estate Outlook
REAL Trends : "Signs of an improving housing market are beginning to appear, and should become apparent in 2009 in the majority of housing markets, says Housing Predictor."
End in Sight for Seller-Funded Down Payments
REALTOR® Magazine-Daily News-End in Sight for Seller-Funded Down Payments:
"Prospective homeowners have until Oct. 1, 2008, to use down payment assistance from a seller to purchase a house."
"Prospective homeowners have until Oct. 1, 2008, to use down payment assistance from a seller to purchase a house."
Charlotte is one of the Top 5 American Cities Where Home Prices Are Likely To Rise!
Where U.S. home prices are likely to rise - Buy a House: MLS Listings & Home Buying Tips - MSN Real Estate:
1.Albuquerque, N.M.
2.Charlotte, N.C.
3.San Antonio
4.Portland, Ore.
5.Austin, Texas"
1.Albuquerque, N.M.
2.Charlotte, N.C.
3.San Antonio
4.Portland, Ore.
5.Austin, Texas"
Wednesday, September 3, 2008
Observer cutting 9 percent of workforce | www.charlotteobserver.com
Observer cutting 9 percent of workforce www.charlotteobserver.com
So I know this isn't "Real Estate specific" exactly but I wanted to point this out as a reference to how newspapers and all forms of print media are dying a slow death. Real Estate agents spend a ton of cash on print advertising, mostly at their clients request. And we do so to make them happy. But the truth is that it doesn't work. Not anymore at least. So take this as a sign and get yourself situated online. It's gonna be a frustrating road if you don't.
So I know this isn't "Real Estate specific" exactly but I wanted to point this out as a reference to how newspapers and all forms of print media are dying a slow death. Real Estate agents spend a ton of cash on print advertising, mostly at their clients request. And we do so to make them happy. But the truth is that it doesn't work. Not anymore at least. So take this as a sign and get yourself situated online. It's gonna be a frustrating road if you don't.
Tuesday, September 2, 2008
REALTOR Shoes!
Got to love the new Reebok Reverse Jam - Monopoly Edition Shoes! Wear these with a suit and the office will love ya! The conventions will be envious!
Another condo project stalls
Another condo project stalls | www.charlotteobserver.com:
"Add a Fourth Ward project to the number of stalled condo tower projects in uptown Charlotte."
"Add a Fourth Ward project to the number of stalled condo tower projects in uptown Charlotte."
Davidson master plan lures developer | www.charlotteobserver.com
Davidson master plan lures developer | www.charlotteobserver.com
More commercial and residential development is ahead for Davidson's 125-acre mixed-use hub at Interstate 77 Exit 30.
Davidson Commons East, the latest project to be announced, is planned off Griffith Street near the Children's Community School and a Harris Teeter supermarket.
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