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Latest head-line news
on mortgage, housing market, remodeling, investment in residential &
commercial real estate, and more
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Reynoldsburg
tightens design regulations for apartment complexes Columbus Dispatch
03/09/2010 Legally, Reynoldsburg city officials can't ban the construction
of apartment complexes, but last night, they did their best to discourage
it. The law passed last night tightened design regulations for multi-unit
complexes. It established pricier building standards, specifying high-end
construction materials, limiting developers to four units per building and
requiring one-third of a lot to be green space.
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Strategic
defaults on homes on the rise San Francisco Chronicle
03/08/2010 Of all U.S. mortgage holders, about one quarter, or 11.3 million
households, are underwater, according to First American CoreLogic, which
collects and analyzes mortgage data. In California, 35 percent of mortgage
holders are underwater. "Negative equity gives you the universe of
homeowners who are vulnerable to default," said Sam Khater, First
American senior economist.
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Optimism
growing in commercial real estate industry Richmond Times-Dispatch
03/08/2010 Virtually everyone in commercial real estate these days will say
things are better than they have been in some time. Though not altogether
supported by the data, a positive outlook is spreading slowly but surely
into the business. Nothing compares well with commercial real estate
activity in the good old days of 2007, but "off the bottom" is not
a bad place to be when the industry's prospects over the next few years
"could threaten America's already-weakened financial system,"
according to a recently released government report.
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Detroit
Wants to Save Itself by Shrinking New York Times
03/08/2010 Detroit, the very symbol of American industrial might for most
of the 20th century, is drawing up a radical renewal plan that calls for
turning large swaths of this now-blighted, rusted-out city back into the
fields and farmland that existed before the automobile. Roughly a quarter
of the 139-square-mile city could go from urban to semi-rural. Near
downtown, fruit trees and vegetable farms would replace neighborhoods that
are an eerie landscape of empty buildings and vacant lots. Suburban
commuters heading into the city center might pass through what looks like
the countryside to get there.
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Program
Will Pay Homeowners to Sell at a Loss New York Times
03/07/2010 In an effort to end the foreclosure crisis, the Obama
administration has been trying to keep defaulting owners in their homes.
Now it will take a new approach: paying some of them to leave. This latest
program, which will allow owners to sell for less than they owe and will
give them a little cash to speed them on their way, is one of the administrations
most aggressive attempts to grapple with a problem that has defied
solutions.
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Buyers
should be wary of private-transfer fees Columbus Dispatch
03/07/2010 How about this for a new and ingenious real-estate money
machine: Every time a house sells during the next 99 years, 1 percent of
the price goes back to the original developer or is shared among investor
partners. Ka-ching! The levy won't be subject to haggling between future
buyers and sellers, either. That's because it's a covenanted mandate - a
novel type of lien on the underlying real estate - called a
private-transfer fee. It's not a government transfer tax. Nor is it a
homeowner-association or environmental-protection covenant. It's purely a
private requirement that runs with the land. If a seller refuses to pay it
to a third-party trustee at closing, the sale won't proceed.
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Treasury
reiterates support for Fannie, Freddie Denver Post
03/06/2010 The Treasury Department was forced Friday to reiterate its
financial support for Fannie Mae and Freddie Mac after a key lawmaker
rattled investors by pointing out that their debt does not enjoy the
explicit guarantee of the federal government.
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Home
Front: Sacramento-area mortgage loan gone wrong is one of thousands Sacramento Bee
03/05/2010 Herbert Salguero is just one homeowner among thousands starting
to realize that most problem mortgages may not be modified after all.
Everything about mortgage lending in America was wrong in 2006, when
Salguero, a federal employee and mechanic for the U.S. Postal Service,
bought his modest dream house in Rancho Cordova. Now, his efforts to keep
it show what is still going wrong for striving folks who simply believed
what they were told.
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End
to Fed program seen as housing test St. Louis Post-Dispatch
03/05/2010 The U.S. housing market recovery faces its first real test this
month when the Federal Reserve concludes its $1.25 trillion mortgage-bond
buying program, Federal Housing Administration Commissioner David Stevens
said. "Getting private investors back into the market without a
significant jump in mortgage interest rates will mean progress,"
Stevens said. About 95 percent of the home loan financing market in the
U.S. is controlled by government-run mortgage buyers Fannie Mae and Freddie
Mac and Stevens' agency, which provides federal insurance for residential
mortgages, he said.
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Mansions
go modular as costs, timeline lure high-end buyers Washington Post
03/04/2010 One day in February, it was an empty, snow-covered lot in
Bethesda. In 32 hours, the property held a six-bedroom, six-and-a-half-bath
French country mansion with a walkout basement. The 7,200-square-footer
that appeared in Greenwich Forest 14 days ago is not yet a finished house.
But it sure looks like one, with its gleaming windows, four sets of patio
doors and symmetrical roof dormers. The heat, electricity and sewer went in
last week.
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Janitor
Facing Eviction Cleans Up After CEO Whose Bank Bought Her House finance.yahoo.com
03/04/2010 At first, Minneapolis janitor Rosalina Gomez said she didn't
realize she was cleaning up after the CEO of the bank that bought her
foreclosed home in a September sheriff's sale.
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CMHA's
leader for 24 years will retire, Housing officials from Chicago, Norfolk,
Va., hired Columbus
Dispatch
03/03/2010 The longtime chief of the Columbus Metropolitan Housing
Authority, Dennis Guest, announced yesterday that he will retire at the end
of June. The authority's Board of Commissioners named his successor
yesterday, too. Charles Hillman, a former CMHA employee who became a senior
vice president with the Chicago Housing Authority, is to start working
alongside Guest as associate executive director on April 19. Hillman, 43,
is to be paid $185,000 a year when he takes over the authority in July,
board Chairman Stanley Harris said.
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City
offered $500 for old building that group wants to save Columbus Dispatch
03/02/2010 The folks who think a 100-year-old Near East Side commercial
building is too valuable to tear down have offered to take it off the
city's hands for $500. That's $500 more than Columbus Development Director
Boyce Safford III thinks it's worth, Bronzeville Neighborhood Association
President Willis Brown said yesterday.
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FDIC
to grease mortgage market with $1.8 bln deal Washington Post
03/01/2010 The U.S. Federal Deposit Insurance Corp is planning to sell $1.8
billion of guaranteed asset-backed debt, according to IFR, in what may be a
step toward restoring confidence in securities closely tied to the
financial meltdown. The debt will be backed by residential mortgage assets
of failed banks seized by the FDIC, market sources said. The two-part deal
is expected to sell this week via Barclays Capital, said IFR, a Thomson
Reuters service.
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FHA
loan allows for fix-up costs to be folded in mortgage Oakland Tribune
02/28/2010 The WORDS ''as-is" can produce one scary phrase. Especially
when buying a home in today's market where foreclosures and short sales
that need fix-up work are plentiful. But a little-known Federal Housing
Administration loan program that's been around since 1978 can help take the
sting out of "as-is." Only 219 borrowers took advantage of the
FHA's 203(k) program in 2009. Not that many lending and real estate
professionals are aware of the program, say observers.
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Be
prepared: Rates will rise again St. Louis Post-Dispatch
02/28/2010 The rate hikes are coming! The rate hikes are coming!
Eventually. Days after the Federal Reserve seemed to sound the alarm that
the era of near-zero interest rates is ending, Chairman Ben Bernanke
tempered those expectations a bit this week. Just because the Fed boosted
the rate it charges banks, he told Congress, doesn't mean it will move any
time soon to boost broader interest rates too.
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Columbus
bucks U.S. decline in home sales Columbus Dispatch
02/27/2010 Central Ohio home sales and prices inched up in January, in
sharp contrast to national sales, which plummeted in the month. According
to the Columbus Board of Realtors, 1,025 homes were sold in central Ohio in
January, 6.9 percent more than in January 2009. The average price rose
6.2percent from a year earlier, to $145,993 from $137,446. Homes also sold
more quickly. The average home took 90 days to sell, compared with 97 a
year earlier.
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Housing
market shows weakness for 2nd month Washington Post
02/26/2010 Sales of previously owned homes plunged in January to their
lowest level since summer, evidence that high unemployment and tight
lending standards are undercutting the government's attempts to prop up the
market. The results Friday, the weakest since June, were far worse than
forecast and suggest the housing recovery will sputter without government
support. The government has spent billions to keep mortgage rates low and
give buyers tax breaks, but both programs are set to end this spring.
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With losses
mounting, Freddie Mac warns of foreclosures Denver Post
02/25/2010 Freddie Mac lost almost $26 billion last year, ominous news for
taxpayers who are footing the bill to rescue the mortgage finance company
and its sibling, Fannie Mae. Freddie Mac, which has lost a total of almost
$80 billion since the housing crisis started in 2007, is bracing for more
pain. The McLean, Va.-based company said a record 4 percent of its
borrowers are at least three months behind on their payments and facing
foreclosure.
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Index
shows home prices continue rising for seventh straight month Washington Post
02/24/2010 Home prices continued to climb for the seventh consecutive month
in December, according to a report released Tuesday that provided yet
another hopeful sign that the battered housing market may be slowly
recovering. The Standard & Poor's/Case-Shiller home-price index, a
closely watched measure of the housing market's health, showed that prices
of single-family homes rose in most parts of the country when adjusted for
seasonal factors, climbing 0.3 percent in December from November. That's
the biggest monthly rise since August.
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New
Home Sales Hit Record Low in January New York Times
02/24/2010 Sales of new homes plunged to a record low in January,
underscoring the formidable challenges facing the housing industry as it
tries to recover from the worst slump in decades. The Commerce Department
reported Wednesday that new home sales dropped 11.2 percent last month to a
seasonally adjusted annual sales pace of 309,000 units, the lowest level on
records going back nearly a half century. The big drop was a surprise to
economists who had expected sales would rise about 5 percent over
December's pace.
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Senate
approves $1,000 tax breaks for new hires Washington Post
02/24/2010 Companies that hire the unemployed would claim new tax breaks under
a jobs-promoting bill the Senate passed Wednesday, delivering President
Barack Obama and Democrats a much-needed victory. The 70-28 vote sends the
bill back to the House, which passed a far more costly measure in December.
Many in the House consider the Senate bill too puny, but they may simply
adopt it and send it to Obama in order to get a win. Democratic leaders
promise more so-called jobs bills are on the way.
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Ohio
State to put $10 million in tax incentives back into East Side Columbus Dispatch
02/23/2010 Ohio State University will reinvest $10 million in tax
incentives from an expansion of its campus medical center to improve health
care and housing on the East Side, officials said today.
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Home
prices rise slightly in December Washington Post
02/23/2010 Home prices rose for the seventh straight month in December, a
sign of price stability as the U.S. housing market continues its bumpy road
to recovery. The Standard & Poor's/Case-Shiller 20-city home price
index released today rose 0.3 percent from November to December, to a
seasonally adjusted reading of 145.87. Only five of 20 cities in the index
showed declines from November to December. The index is now up more than 3
percent from its bottom in May, but still 30 percent below its May 2006
peak.
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A
tale of 2 citizens mired in mortgage upheaval Philadelphia Inquirer
02/22/2010 Jim Townsend is a retired Philadelphia sanitation worker with a
decent pension and a love of the Jersey Shore, where he bought a home for his
retirement. Miles away is Talina Johnson, who bought a rowhouse in
Clementon. Both planned their moves with care. But both of them got sucked
into the nation's convulsive financial crisis, and each is trying to
navigate the government's stumbling efforts to reduce the mounting number
of foreclosures.
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Definition
of rich varies by income, place Denver Post
02/21/2010 Sharon Poczatek knows many people would call her rich. Others
might say her high income constitutes a just reward for hard work. All she
knows for certain is that her successful Boulder dental practice has her
contemplating the fairness of government asking quarter-million-dollar
earners to pay higher taxes. When President Barack Obama first proposed tax
hikes on the wealthy to start closing the budget gap, Poczatek had what she
calls a "knee-jerk" idea of cutting back her practice to lower
her income from $320,000 to just below the $250,000 trigger.
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Will
bank stocks soar or dive this year? Richmond Times-Dispatch
02/21/2010 Questions about housing, credit may limit bank stocks Bank
stocks rose like a phoenix from the financial ashes over the past year or
so, lifting the results of the funds that owned them as well. It would seem
logical that an economic recovery would loft them even higher in 2010. The
problem is that nagging questions about government intervention, housing
and consumer credit may weigh them down.
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U.S.
tries to keep struggling owners in homes Miami Herald
02/20/2010 The government threw a $1.5 billion lifeline to unemployed and
underwater homeowners on Friday, amid a new report suggesting the nation's
foreclosure crisis may be easing. Under the initiative, Florida and four
other states that have seen home prices fall by at least 20 percent since
their peak will be eligible to apply for the funds.
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A
lot has changed for homes since '00 Modesto Bee
02/19/2010 The buyer's market continues for housing in the Northern San
Joaquin Valley. That's a nice way of saying home prices plunged again in
January. But a lot changed during that decade: Because average incomes
increased and mortgage interest rates declined, Stanislaus homes are much
more affordable now.
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Nosy
neighbors or not, public records are public Charlotte Observer
02/18/2010 OK, so Mecklenburg County's online real estate records are
probably used by nosy neighbors as often as they are by real estate agents,
surveyors, lawyers and others with a business-related interest. But
Mecklenburg commissioners should reject an effort to make those public
records less accessible to the public.
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Ohio
foreclosures set record in 2009 Oxford Press
02/17/2010 Residential foreclosures in Ohio set a new record in 2009, with
signs that the continuing crisis has spread to rural and upscale suburban
counties, according to data released on Wednesday, Feb. 17, by the Ohio
Supreme Court. Statewide, there were 89,053 foreclosures, up 3.8 percent
from the 85,773 in 2008. The 14.7 percent increase in Warren County 1,498
compared to 1,308 in 2008 represented the spread of the problem to
suburban counties, said Bill Faith, executive director of the Coalition on
Homelessness and Housing in Ohio.
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Homebuilder
confidence increase in February Washington Post
02/16/2010 The National Association of Home Builders said Tuesday its
housing market index rose two points in February, a sign that low interest
rates and federal tax credits are boosting demand for new homes. The
builders group said the index reached 17 in February, after falling for two
consecutive months. The increase may also signal builders are feeling
better about their prospects following data that the job market could be
improving.
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Tax
bite from selling Mom's home? realestate.yahoo.com
02/16/2010 Defer capital gains hit with 1031 exchange.
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State
Supreme Court makes it tougher for lenders to foreclose Tampa Tribune
02/15/2010 The Florida Supreme Court continues to make it more difficult
for lenders to foreclose in the Sunshine State. The court says lenders are
now required to verify they own loans before they file a foreclosure
lawsuit. And, according to the court order, lenders can no longer charge
the homeowner for that investigation. This follows the court's order in
late December that requires lenders to offer owners of primary residences a
chance to negotiate with a third-party mediator before moving forward with
foreclosure.
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Equity
showing signs of recovery Columbus Dispatch
02/14/2010 With all the bad news about "underwater" homeowners
and strategic walkaways, one might think that homeowners' equity holdings
are in the tank. But the least-publicized recent statistic on real estate
is that -- despite these scary reports -- home equity is again on the rise.
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Housing
charities use condos to boost urban homeownership Washington Post
02/13/2010 They won't get granite kitchen counters or exotic hardwood
floors, but nine Northern Virginia families are about to become condominium
owners. The nine-unit Madison Ridge condo, off Lee Highway just west of
Fairfax City, is the newest project of the Northern Virginia chapter of
Habitat for Humanity, the nonprofit developer best known for its
volunteer-built single-family houses. The building is one of a smattering
of condos built by nonprofit organizations around the region.
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Homeowner
equity makes a surprise turnaround Richmond Times-Dispatch
02/13/2010 With all the bad news about underwater homeowners and strategic
walkaways, you might think that American homeowners' equity holdings are in
the tank. But the least publicized recent statistic on real estate is that
-- despite these scary reports -- home equity is again on the rise.
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Foreclosures
down in January, but surge on way? San Francisco Chronicle
02/12/2010 The number of U.S. households facing foreclosure in January
increased 15 percent from the same month last year, and a surge in
cash-strapped homeowners who've fallen behind on mortgages could be on the
way. More than 315,000 households received a foreclosure-related notice in
January, RealtyTrac Inc. reported Thursday. That number is down nearly 10
percent from 349,000 in December, which saw the third highest total since
the company began tracking foreclosure data in 2005.
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Citi
to let distressed homeowners stay for 6 mos. finance.yahoo.com
02/11/2010 Citigroup Inc. plans to let homeowners on the verge of
foreclosure stay in their homes for six months if they turn over the deed
to their property. Citi said Thursday it is launching the pilot program,
dubbed "Foreclosure Alternatives," this week in Texas, Florida,
Illinois, Michigan, New Jersey and Ohio. Initially, about 1,000 homeowners
are expected to participate. Citi may expand the program nationwide.
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Real
estate sales jump from last year, prices continue to drop Myrtle Beach Sun News
02/11/2010 Real estate sales continued to show gains over last years in
January, showing significant improvements over what was a bad month in
2009. Single-family homes were up 13 percent and condominium sales were up
74 percent last month when compared to the same month the previous year,
according to statistics from the Multiple Listing Service gathered today.
Median prices - the price at which half of the homes sell for more and half
of the homes sell for less - dropped when compared to last year.
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Home
prices show signs of recovery; all big Ohio cities up Columbus Dispatch
02/11/2010 Home prices rose in more than 40 percent of U.S. cities in the
fourth quarter of last year, as massive federal spending helped the housing
market show signs of stability. Among the biggest gainers was Cleveland.
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Reversal
of fortune, After trend of rising prices, some housing markets see
about-face MarketWatch.com
02/10/2010 One in five housing markets entered a second leg of home price
declines in late 2009, after showing price increases for nearly half of
last year, according to a report released Wednesday by Zillow.com, a
real-estate Web site. In 29 of the 143 markets tracked by the site --
including Boston, Atlanta and San Diego -- prices flattened or began to
decrease again in the second part of last year, after five or more months
of consecutive monthly increases, according to the site's fourth quarter
real-estate market report.
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$1.9
million in fed stabilization money buys 150 homes Columbus Dispatch
02/09/2010 Columbus has spent about $1.9 million to buy 150 homes with
federal money designed to shore up city neighborhoods ravaged by
foreclosures and vacant housing. The city bought the houses in Linden,
Franklinton and the Hilltop and on the South Side. Purchase prices averaged
about $12,666; officials say they expected to spend twice as much, another
stark reminder of how bad things have become in some neighborhoods.
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Half
of homes in South Florida sell for a loss Palm Beach Post
02/09/2010 Nearly half of South Florida homes sold in December did so at a
loss, a 4 percent increase from the previous year and a
"disturbing" sign for anyone with a home on the market. The data,
released this morning by analysts at Zillow.com, evaluated sales by region,
county and ZIP code a measure that showed 53 percent of West Palm Beach
homes sold at a loss in December, while 68 percent of Port St. Lucie homes
were purchased at prices lower than the previous sale. Statewide, 47
percent of homes sold at a loss in December, nearly equal to the 48 percent
in Miami-Dade, Broward and Palm Beach counties combined.
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Rental
prices expected to fall as Tampa's vacancy rate rises Tampa Tribune
02/08/2010 Apartment complexes are following the housing market in their
suffering, and it's about to get worse, a new report says. The reason: So
many investors stuck with homes are eager to rent, and for less, said Casey
Babb, a senior associate with Marcus & Millichap, authors of the
report. In many cases, apartment owners just can't compete. This is good
news for those in the market to rent. Average apartment rents in Tampa are
projected to fall 4 percent to $713 per month, compared with a 6 percent
decrease in 2009, the report said.
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Stock
investors see threats from all directions San Francisco Chronicle
02/07/2010 Jittery stock traders react to each day's news as if it could be
the start of Financial Crisis 2.0. On Thursday, the Standard & Poor's
500 index suffered its biggest one-day drop in more than nine months
because of worries about debt problems in Greece, Portugal and Spain.
Concerns about China's plans to limit economic growth and proposed
regulatory bank changes from Washington also have pummeled the market. The
fears aren't as intense as in 2008, when the S&P 500 fell 38.5 percent.
But January was the worst month for the market since it began its recovery
last March. And the S&P 500 has fallen 7.3 percent from the high of
1,150.23 it reached Jan. 19.
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For
Sale By Owner in a down housing market NJ Record & Herald News
02/07/2010 Retirees Frank and Dee Caputo have sold two homes without the
help of a real estate agent. Now they're trying again, with their Clifton
bi-level. Though they started out by listing with a Realtor last summer,
they decided they could more easily lower their price to attract more
buyers if they didn't have to pay an agent's commission. In a tough market,
they say, that's an advantage. "We have room to negotiate," said
Dee Caputo. The house is now on the market for $459,000, down from $479,000
when it was listed with an agent.
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Fewer
D.C. affordable housing options left as city rents rise Washington Post
02/06/2010 Rents have increased more in the District than they have in most
major cities, and renters are spending a larger portion of their paychecks
to keep a roof over their heads, according to an analysis released Friday
by the DC Fiscal Policy Institute that examines the city's rental housing
market.
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New
refinancing trend is cash in instead of cash out Charlotte Observer
02/05/2010 Thinking of cashing out some equity when you refinance your
mortgage? That used to be what millions of homeowners did when they needed
extra money. But now get ready for the post-boom, post-crash trend that's
really hot: "Cash-in" refis - the diametric opposite of
cash-outs. "It almost sounds un-American," quipped Frank Nothaft,
chief economist for mortgage giant Freddie Mac.
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Sales
of million-dollar-plus homes way down San Francisco Chronicle
02/05/2010 Times are tough in the mansion market. Last year's sales of $1
million-plus homes in California were paltry compared to the boom days,
according to a real estate report released Thursday. Tight credit, skittish
buyers and sagging prices caused the number of homes changing hands for
more than $1 million to fall 23.8 percent in 2009 compared with 2008,
according to MDA DataQuick, a San Diego real-estate firm. A total of 18,621
California homes sold for more than $1 million last year. That's barely a
third of the 54,773 such homes that changed hands in 2005.
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City
tallies wins, losses as it readies new Downtown plan Columbus Dispatch
02/04/2010 There's less vacant space in Downtown office buildings, but that's
partly because so many have been turned into condominiums. There are more
people living in those condos and apartments than there were a decade ago,
but the number of Downtown residents still is less than 20 percent of the
total from 1950.
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Battling
Back, Home Builders Cut Prices, Work Faster Wall Street Journal
02/03/2010 Home builders have lost half their share of the U.S. housing
market in the past two years, largely because of competition from cheap
foreclosed houses. In 2009 only 7.6% of the homes sold were newly
constructed, down from the average of about 16% over the previous two
decades. But home builders are fighting back, cutting prices, promising to
complete homes faster, and warning about the risks of buying foreclosed
property. Their efforts may be starting to pay off. On Tuesday, D.R. Horton
Inc., the second-largest U.S. builder, swung to a surprise quarterly
profit, its first since the sector crashed, aided by improving business and
a tax benefit.
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Condo
buyers, sellers face a gauntlet of lender rules Wilmington Star-News
02/02/2010 Condo and townhouse buyers face government- and lender-imposed
rules that are helping to create chilling ripple effects in the local real estate
market, lenders and brokers say. Beach condos, in particular, are subject
to a set of new rules and regulations recently imposed by Freddie Mac,
Fannie Mae and the Federal Housing Administration.
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Treasury
Expects TARP Outlays to Stay Under $550 Billion Wall Street Journal
02/01/2010 The Treasury Department now expects to use less money from the
Troubled Asset Relief Program than the maximum it projected when the rescue
effort was extended late last year. The Obama administration's fiscal year
2011 budget proposal suggests total obligations under TARP will reach
$546.4 billion. That figure is $230.3 billion less than projected in the
president's midsession budget review in August and $13.6 billion less than
the maximum Treasury Secretary Timothy Geithner said would be disbursed
under the extended program.
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FHA
suspends anti-flipping policy Columbus Dispatch
01/31/2010 Call it killing three birds with one stone: The federal
government hopes simultaneously to help low-down-payment homebuyers,
investors who fix up foreclosures, and communities burdened with too many
bank-owned and foreclosed homes -- all with one potentially far-reaching
policy change. For years, the FHA has had a strict prohibition: It wouldn't
insure a mortgage on a house owned by the seller for less than 90 days. The
ban was a reaction to fraudulent quick flips of houses that inflated their
values far beyond true market worth.
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Bank
leaves trail of flipping, fraud Atlanta
Journal-Constit.
01/31/2010 Atlantas downtrodden neighborhoods proved a gold mine for Omni
National Bank and its founders, who amassed tens of millions of dollars
worth of mansions, company stock and a private jet after launching an
unusual bank that financed renovations of inner-city houses. But the only
thing growing at Omni these days is the list of casualties racked up since
the banks failure 10 months ago. Hundreds of homes that should have been
improved instead sit vacant and crumbling. Though most depositors werent
hurt, the banks demise has cost the Federal Deposit Insurance Corp.s
insurance fund an estimated $289 million and wiped out shareholders who
owned about half the company, once valued at about $100 million.
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Three
Charlotte families struggle to save their homes Charlotte Observer
01/31/2010 Reggie Belk and his sister Nancy Belk are struggling to make
mortgage payments on their home and have been rejected each time trying to
obtain a loan modification. The company Argent Mortgage a subsidiary of
Ameriquest where they obtained the loan has since been charge with a class
action lawsuit for predatory leaning. The siblings sit at the table where
the documents were signed.
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Double
standard in mortgage walkaway Bluffton Today
01/30/2010 Tishman Speyer Properties walks away from 11,232 Manhattan
apartments because it cant pay its mortgage. Thats good business. Rick
Gilson, a college custodial supervisor in South Dakota, wants to walk away
from the mortgage on his mobile home. If he does, hell be adeadbeat. Those
two borrowers face the same financial dilemma: Their mortgages far exceed
the values of their properties. Yet one gets to walk away without guilt,
while the other cant.
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Two
local malls on commerical watch list Richmond Times-Dispatch
01/29/2010 The commercial real estate market in the Richmond area is
deteriorating, with more properties here showing up on industry watch
lists. Real Capital Analytics, a New York-based commercial real estate
research firm, is tracking 25 properties in distress in the Richmond area
with an outstanding debt balance of $371 million. These aren't the only
properties facing possible trouble.
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Texas
Leads U.S. in High-Growth Cities Business Week
01/28/2010 Here's some good news that shows that even during the worst of
the recession plenty of American cities, towns, and suburbs continue to
grow. One such place is Atascocita, Tex. A mostly residential community 20
miles from Houston, it gained more than 1,800 households in 2009, an 8%
year-over-year increase, according to new data from Little Rock-based data
firm Gadberry Group.
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Fed
sees mixed economy, holds interest rates low Columbus Dispatch
01/28/2010 The Federal Reserve pledged yesterday to hold interest rates at
record lows to nurture the economic recovery and lower unemployment. But
its decision drew a dissent from one member, signaling the Fed's challenge
in deciding when to pull back stimulus money it pumped into the economy.
The Fed's statement sketched a mixed picture of the economy. Pointing to
weakness, it noted that bank lending is contracting. And it dropped a
reference in its previous statement to an improving housing market. But on
the positive side, the Fed said business spending on equipment and software
seems to be rising. And it said economic activity "continues to
strengthen."
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Gov't
readies changes to mortgage relief plan San Francisco Chronicle
01/27/2010 The Treasury Department on Thursday plans to unveil changes
designed to streamline burdensome paperwork required for its foreclosure
relief plan, according to people briefed on the matterLenders will now be
required to collect two pay stubs at the start of the process, and
borrowers will have to give the Internal Revenue Service permission to
provide their most recent tax returns at the same time, according to the
people who declined to be identified because the details were not yet
final.
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Area
home sales rise as U.S. deals plunge Columbus Dispatch
01/26/2010 Home sales rose in central Ohio but plummeted nationally in
December, offering a turbulent end to a turbulent decade in housing.
Columbus-area home sales increased 11 percent, the fourth-straight monthly
gain.
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December
home sales down nearly 17 percent LA Times
01/25/2010 Sales of previously occupied homes took the largest monthly drop
in more than 40 years last month, sinking more dramatically than expected
after lawmakers gave buyers additional time to use a tax credit. The report
reflects a sharp drop in demand after buyers stopped scrambling to qualify
for a tax credit of up to $8,000 for first-time homeowners. It had been due
to expire on Nov. 30. But Congress extended the deadline until April 30 and
expanded it with a new $6,500 credit for existing homeowners who move.
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IRS
finalizes repeat-purchase credit Columbus Dispatch
01/24/2010 If you've been holding back on getting involved with the new
$6,500 federal tax credit for repeat home purchases, there's no longer an
excuse for inaction. That's because the IRS finally published the rules for
the repeat-purchase credit that had been missing since President Barack
Obama signed the legislation creating the program on Nov. 6.
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Reduced
mobility a key part of employment picture Richmond Times-Dispatch
01/23/2010 Single and unemployed, Adam Holguin knows he could find better
job opportunities outside California, with its unemployment rate of about
12 percent. But with little savings, plus college loans and credit-card
bills to pay off, the 31-year-old says relocating out of state is something
he can't afford. "I don't have the finances at this time to
move," he said.
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Repeat
homebuyers need to act fast NJ Record & Herald News
01/22/2010 By now it is well documented that today's affordable housing
prices, historically-low interest rates and federal homebuyer tax credit
have combined to create one of the most attractive first-time buyer markets
in recent memory. What many Americans might not realize is that a recent
expansion of the buyer tax credit has created an equally desirable
opportunity for existing homeowners.
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Loan
modification? Good luck with that as One reader details his nightmarish
experience MarketWatch.com
01/22/2010 "It's a never-ending game that banks are playing with
customers," J.N. said. "If all banks are doing this, I'm
surprised most folks haven't just given up and let their homes go into
bankruptcy."
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FHA
premiums, down payments rise Chicago Sun-Times
01/21/2010 Government-guaranteed mortgages will be more expensive for
homebuyers as the Federal Housing Administration raises insurance rates and
tightens credit- score rules to combat a 14 percent delinquency rate. The
premiums that the FHA charges to insure mortgages will rise to 2.25 percent
from 1.75 percent this year, the agency said Wednesday.
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Office,
industrial and retail vacancy rates rising Richmond Times-Dispatch
01/21/2010 Look for 2010 to be the start of a long and possible painful
recovery for the commercial real estate market in the Richmond area. A lot
of office space is available for rent. Vacancy rates in all sectors --
office, industrial and retail -- are rising. More foreclosures could be in
store. For instance, 25 commercial properties across all sectors are in
financial distress in the Richmond area, according to Real Capital
Analytics, a New York-based market researcher. But the worst seems to be
over, industry experts say.
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Home
construction falls; wholesale prices edge up San Francisco Chronicle
01/20/2010 The housing market remains a significant risk to the economy,
data Wednesday showed, as bad weather across much of the country hammered the
construction industry. Along with icy storms, the real estate recovery is
facing man-made headwinds. On Wednesday, the government said buyers will
face higher fees and tougher standards for home loans backed by the Federal
Housing Administration, a popular source of loans for first-time buyers.
Unemployment is expected to remain high throughout the year, which will
drive the foreclosure rate to new records.
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Cost
to build new public housing soars Columbus Dispatch
01/19/2010 Officials at a state agency are trying to cap rising costs
associated with low-income housing projects they finance across Ohio,
including those in Franklin County that have increased 76 percent since
2004. In Franklin County, for example, the per-unit cost rose from an
average of $98,158 in 2004 to $172,828 in 2009. Statewide, the average
per-unit cost rose from $117,679 to $162,540 during the same period, a 38
percent jump.
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Silicon
Valley office vacancies to remain high this year San Jose Mercury News
01/18/2010 Nearly one-fifth of Silicon Valley's commercial office buildings
stood empty at the end of 2009 the worst vacancy rate in at least 15
years and that figure is only expected to increase in 2010. Vacancies in
research and development space the most plentiful workplaces in the
valley are the worst in four years. That's 44 million square feet of
office and research space about 83 San Jose City Halls in need of
tenants, according to data from brokerage NAI/BT Commercial.
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Homeowners
opt to flee instead of fight as loan modifications start to lose luster
Palm Beach Post
01/17/2010 Desperate homeowners scrambling to get a loan modification
through federal foreclosure relief programs are beginning to shun the
offer, opting for a strictly business approach to the dilemma walking
away. Because the majority of modifications don't reduce the principal
payment on loans made during the overpriced boom years, underwater
mortgages could still be drowning 10 years out.
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One-fourth
who received fed mortgage aid still can't pay Charlotte Observer
01/16/2010 About 25 percent of homeowners who received trial loan
modifications through President Barack Obama's foreclosure prevention plan
aren't keeping up with their reduced payments, the Treasury Department said
Friday. At least 196,000 borrowers have missed some or all of their
required payments, according to comments Treasury officials made on a
conference call and calculations from government data.
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Why
Many Investors Keep Fooling Themselves Wall Street Journal
01/16/2010 Since 1926, according to Ibbotson Associates, U.S. stocks have
earned an annual average of 9.8%. Their long-term, net-net-net return is
under 4%. All other major assets earned even less. If, like most people,
you mix in some bonds and cash, your net-net-net is likely to be more like
2%. The faith in fancifully high returns isn't just a harmless fairy tale.
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JPMorgan
Chase Earns $11.7 Billion in Year 2009 New York Times
01/15/2010 JPMorgan Chase kicked off what is expected to be a robust and
controversial reporting season for the nations banks Friday with news
that its profit and pay for 2009 soared. In a remarkable rebound from the
depths of the financial crisis, JPMorgan earned $11.7 billion last year,
more than double its profit in 2008, and generated record revenue. The bank
earned $3.3 billion in the fourth quarter alone.
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'09
set record for foreclosure-related notices Columbus Dispatch
01/14/2010 A record 2.8 million households were affected by foreclosure
last year, and that number is expected to rise this year as more unemployed
and cash-strapped homeowners fall behind on their mortgages. The number of
households that received a foreclosure-related notice in 2009 rose 21 percent
from the previous year, RealtyTrac reported today. One in 45 homes was sent
a filing, which includes default notices, scheduled foreclosure auctions
and bank repossessions.
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Market
advances as financials, pharma rebounds Denver Post
01/13/2010 The stock market closed higher Wednesday, led by gains in shares
of banks and drugmakers, while energy companies were held back by a drop in
crude oil. The Dow Jones industrial average closed up 53 points after
trading above 10,700 for the first time in 15 months. Broader indicators
also advanced. Treasury prices fell, pushing interest rates higher, after
jumping on Tuesday.
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Consumers
Spend on Brands with Social Purpose and Encourage Others Too realestate.yahoo.com
01/12/2010 Are you in the business of building homes or building better
communities? Do you offer more than a "great" buy? Does your
product help or hinder the environment? According to the third annual
Edelman goodpurpose TM Consumer Study your answer to these questions may
just affect your future sustainability as a real estate builder, developer,
contractor, remodeler, etc. The survey found that despite the recession,
consumers are still spending with companies and brands that have a social
purpose.
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What
2010 holds for commercial real estate Richmond Times-Dispatch
01/11/2010 As the "aught" decade comes to a close, for the real
estate industry it can best be described as a wonderful love affair that
came to a fiery ending. Developers experienced a glowing, bubbly kind of
relationship with lenders and in vestors in the early part of the decade.
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Despite
high foreclosure rate, banks still making profits Columbus Dispatch
01/10/2010 The country's biggest banks profited in 2009 in a variety of
ways. When banks help consumers by originating mortgages, they're pocketing
profits from those loan originations. This year, many people also have
refinanced to take advantage of low mortgage interest rates.
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Fannie
Mae selling thousands of REO houses upon listing realestate.yahoo.com
01/10/2010 Mortgage giant Fannie Mae is unhappy about the mounting
thousands of REO houses it's stuck with, but now it's moving to sell off
that inventory faster than it has in the past, potentially opening up some
interesting opportunities for home buyers and their agents.
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In hard times,
young Floridians are flocking to early-bird deals Arizona Daily Star
01/09/2010 Across Florida, in fact, the early-bird special is experiencing
a revival. With that label and some newer versions, several restaurants
have introduced early dining discounts since the recession started, and
younger people are arriving in larger numbers at classic establishments
that have been serving up free dessert for decades.
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Owners
of record-price NYC complex miss payment San Francisco Chronicle
01/08/2010 The partnership that paid a record $5.4 billion for two of New
York City's biggest apartment complexes is having money problems. The group
led by Tishman Speyer and BlackRock Realty says it wasn't able to make a
full $16 million loan payment that was due Friday. The companies say the
missed payment won't affect the 25,000 tenants of Stuyvesant Town and Peter
Cooper Village in Manhattan.
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Ambitious
Redland roadside stand rises from real-estate collapse Miami Herald
01/07/2010 A couple of years back, when real estate was booming and the
good times rolling, Glenn and Christina Whitney used their bucolic
five-acre plot in the Redland as a place to park the 25 or so vehicles they
owned through their property management company.
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Buying
a Home? Protect Yourself from Problem Drywall realestate.yahoo.com
01/06/2010 With the first-time home buyer tax credit extension, many buyers
are flooding into the market for a new home. But in the midst of the rush
for a new home at a cheap price, beware of a recent problem with poorly
created drywall, now known as Problem Drywall.
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Pending
Home Sales Fall 16 Percent in Nov. 2009 Wall Street Journal
01/05/2010 The number of buyers who agreed to purchase previously occupied
homes fell sharply in November, a sign sales will fall this winter,
undermining last summer's recovery. The National Association of Realtors said
Tuesday its seasonally adjusted index of sales agreements fell 16 percent
from October to a November reading of 96. It was the first decline
following nine straight months of gains and the lowest reading since June.
The drop was far larger than the 2 percent expected from economists
surveyed by Thomson Reuters, and analysts were surprised.
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Bernanke
details Fed's missteps; blames poor regulation Pittsburgh Tribune-Review
01/04/2010 Federal Reserve Chairman Ben Bernanke said the central bank's
low interest rates didn't cause the past decade's housing bubble and that
better regulation would have been more effective in limiting the boom.
"The best response to the housing bubble would have been regulatory,
rather than monetary," Bernanke said Sunday in remarks during the
American Economic Association's annual meeting in Atlanta.
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Stagers
move in to sell houses Columbus Dispatch
01/03/2010 The three-bedroom waterfront estate in Fort Lauderdale usually
would rent for about $5,000 a month. But Angela Genereux gets to live there
for roughly a third of the cost. The trade-off is that she has to keep the
place in show condition -- no dirty dishes, please -- and move out when it
sells. That's the deal she struck with Showhomes, a home-management and
staging company that opened a Fort Lauderdale franchise in the summer.
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Land
banks might help counties fight blight Columbus Dispatch
01/02/2010 A proposal that would allow Franklin and 27 other Ohio counties
to acquire foreclosed properties to repair and sell before speculators
snatch them up goes before the Ohio Senate in the new year. The bill would
give counties a new mechanism -- countywide land banks -- to take control
of vacant and abandoned properties plaguing neighborhoods by issuing bonds
to acquire homes.
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