Sellers Cut Fewer Listing Prices as Home Price Declines Slow

Good morning. And what an incredible day in Sunny South Florida,I came across this article that talks about in detail on how the current listed inventory its moving faster than anticipated. and with out drastic price reduction.

Let's also take into account that the past two months have been the coldest in the past decade .

This will lead to a great recovery in our Real Estate Industry . Don't loose your opportunity make sure tour Office and Broker can help you and Support you www.RWSF.con




Sellers Cut Fewer Listing Prices as Home Price Declines Slow

SHORT SALE HELP

Great article describing the governments new solution to dealing with short sales.

Its my believe that this expedite the process , so now we have to go get this listing



'Cash for Keys' Deals Helping Homeowners Escape Debt
HOUSING, REAL ESTATE, FORECLOSURE, LOAN, CASH FOR KEYS, MORTGAGE, REFINANCE
Reuters | 12 Mar 2010 | 01:02 PM ET
Jon Daurio, chief executive officer of mortgage investor Kondaur Capital, recently offered a $4,000 check to Barry Culver for the deed to his Bryan, Ohio house.


With the exchange, and a pay-off to a second-lien holder, Culver was freed of $120,000 in crushing mortgage debt on the house, said Daurio, who had bought the right to cut the deal when he purchased the mortgage months earlier. The house, after repairs, is now on the market for $47,500.

"It got me out of a bind," said Culver, a former Kmart employee who has since relocated near his in-laws in Tennessee where job prospects are better. "I got a little cash out of it and was able to pay off other stuff I owed."

Such 'cash-for-keys' offers are common for Orange, California-based Kondaur, one of the largest players in the business of buying and resolving distressed loans for profit. The business is growing more popular, with volumes of loans for sale at their highest since the founding of Kondaur in July 2007, said Daurio, a veteran of the subprime lending industry.

At DebtX, a Boston-based loan exchange, the number of bidders on pools of loans is up 25 percent since last quarter.

Deals Are Increasing

Owners of bad loans are increasingly making deals with borrowers to avoid a foreclosure, which tends to reduce returns for investors and place a black mark on the homeowner's credit.


Lawmakers and regulators are becoming more accepting of these solutions even though they mean the borrower loses the home. The trend comes after more than two years of loan modification programs and foreclosure moratoriums that have produced mixed results, with many homeowners ineligible or defaulting again.

Where a modification isn't feasible, the U.S. Treasury in April will begin paying borrowers who agree to a deed-in-lieu of foreclosure or short sale, where a home is sold for less than outstanding debt. Unlike most modifications, those actions erase excess debt and reset home values, solving the problem of underwater loans that are a top cause of defaults.

U.S. modification efforts to date have been "tragic" in delaying housing and economic recovery, Daurio said. "All you are doing is delaying depreciation of the houses," Daurio said. "You are not preventing it by keeping people in a house that they can't afford."

More than 11 million properties with mortgages are "underwater," according to First American CoreLogic. Efforts to expand use of principal forgiveness haven't caught on.

Delaying the Inevitable

Foreclosures have been stalled on more than 1 million bad loans since the U.S. Home Affordable Modification Program was announced a year ago, resulting in higher costs and losses to investors, according Moody's Investors Service.

This is delaying an inevitable clearing of the housing market that is needed for a lasting rebound, analysts said. A pent-up "shadow inventory" from failed modification efforts could destabilize the market in 2010, they worry.


"You are preventing the orderly transfer of a home from those that can't afford it to those that can afford it," said Rod Dubitsky, a global structured finance specialist at Pacific Investment Management Co. in Newport Beach, California.

The ability to customize loan workouts and earn potentially huge profits are enticing investors to the market, where loans are commonly sold at 40 cents to 60 cents per dollar of principal. Discounts give investors more room to work with borrowers than banks working to mitigate their loss, said Kingsley Greenland, chief executive officer at DebtX.

Investors generally look for a quick workout since it costs them to carry the loan or the property, said Jeff Freud, founder of LoanMarket.net, in Irvine, California.

Distressed whole loans are just a slice of the total mortgage market, however. Many loans are tied up in securities, and banks now with adequate reserves are arranging deed-in-lieu and short sale agreements themselves.

Mountains of cash chasing a limited field of loans has buoyed prices, but that is reducing opportunity for funds, said Louis Lucido, a principal at Los Angeles-based DoubleLine. But that could change if the Federal Deposit Insurance Co. more rapidly unwinds the assets of its failed banks, he said.


New entrants to the market tend to be small investors, who hold less than 100 loans at any one time, analysts said.

Among a pool of loans acquired by Dean Engle, a real estate investor in San Francisco who teaches others how to get a start in the business, was a foreclosed home in Greenwood, Missouri.

It was still occupied by the former owner, who had no money to find a new place to live.

Engle told Ellen Brewood, a local agent to offer the former owner $5,000 to move out, and avoid a lengthy eviction. The house was vacated within five days. After 15 days on the market, it had offers above the $139,000 asking price.

"He wouldn't believe it, that investors wanted to pay him," Brewood said of the former owner.

Mortgage rates dropped slightly this week,

Mortgage rates dropped slightly this week,

Good morning to all. As you probably know there are 49 days left until the expiration of the Home Buyers Credit, but today's great news on the continuing dropping of mortgage rates , will give us an extra reason to get out there and take advantage of this great Real Estate Recovery we are living .

E.Vega www.rwsf.com

Mortgage rates dropped slightly this week, with the 30-year fixed-rate mortgage averaging 4.95% in Freddie Mac's weekly survey of mortgage rates.

The mortgage averaged 4.97% last week and 5.03% a year ago.

The results come as recovery in the U.S. housing market has weakened in recent months. Demand for new and used homes, after strengthening earlier last year, has dropped because of cold weather and continuing high levels of joblessness.

New-home sales unexpectedly hit a record low in January, while existing-home sales also slumped. The National Association of Realtors' index for pending sales of previously owned homes, an indicator of sales to come, fell as well.

The 15-year fixed-rate mortgage averaged 4.32% for the week ending March 11, down from 4.33% last week and 4.64% a year ago. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.05%, down from 4.11% last week and 4.99% a year ago. And 1-year Treasury-indexed ARMs averaged 4.22%, down from 4.27% last week and 4.80% a year ago.

"During a light week of mixed economic reports, mortgage rates eased somewhat," said Frank Nothaft, Freddie Mac vice president and chief economist. "Pending existing home sales fell 7.6% in January, well below the market consensus of a 1% gain."

Ernesto Vega P.A

Ernesto Vega P.A

Housing Market for 2010 the best its on its way

Housing Market for 2010 the best its on its way back




The USA Housing markets have faired quite well regardless of the economic turmoil of recent years. All this markets share something in common: modestly appreciating home prices, a high affordability rating,great economic activity, tourism and a low foreclosure rate.I know its sound like we are describing South Florida

RealtyTrac, estimates that 4.5 million foreclosure filings are expected in 2010, up from 2.8 million in 2009. But this inventory its being pick up by investors and will not affect prices as much as the past wave of foreclosures.

According to Forbes, Pittsburgh, Pennsylvania, has the best housing market in the country for a host of reasons: the second lowest foreclosure rate, a housing affordability rate of 85%, home prices anticipated to increase 2.67% in 2010, and a diversified and comparatively robust economy. This stable economy is largely due to Pittsburgh transforming itself, over several decades, from a center of manufacturing to one of education and health care.

As you can the turn around its all over the country .

GREAT NEWS AFFORDABILITY UP 40% IN SOUTH FLORIDA

Well hello to all, i wanted to share some of the last numbers ,that will give you a realistic picture of our current market.
R real estate prices in South Florida have fallen from their peak five years ago, with more than two-thirds of the 41,000 condo units and town homes for resale listed below $250,000, due to the lack of financing and problems with HOA

Of the 27,000 homes for sale in Miami-Dade, Broward and Palm Beach counties, 40 percent have an asking price below $250,000.this does present a great opportunities for buyers due to the great affordability factor

Broward County has the largest inventory of residential properties (13,655) avalible for resale below $250,000. Condos and townhouses account for 73 percent of Broward's overall inventory priced below $250,000, while single-family houses account for the remaining 27 percent, according to the report.

Miami-Dade County isn’t far behind, with 13,185 residential properties priced below $250,000. Condos and townhouses account for 72 percent, or 9,437 units, of the residential resale inventory available at prices below $250,000.

In Palm Beach County, there are 11,176 residences for resale below $250,000. Condos and townhouses represent 72 percent, or 7,996 units, of the available inventory priced under $250,000.

Nearly 80 percent of the 20,000 residences currently under contract in South Florida are priced below $250,000, according to the report.

In Broward, some 82 percent of the pending contracts are on properties listed for resale at a price below $250,000. In Miami-Dade, 78 percent of the contracts are on properties priced under $250,000. In Palm Beach, 74 percent of the contracts are on resales listed below $250,000, according to the report.

As you can see form all that its taking place that the economy its making that BIG turn.
The great factor for us is Pending Sales which to a small Correction moving forward from 8% to 7.6% .
This number was severely affected by the weather in the northeast. so we can expect a raises over 8% in February .

Another factor in last weeks numbers was the increase in costumer spending , this was the BIG surprise 0.5% .
This show that the consumer feels better about there job security and about their future and are feeling more comfortable spending.

Below its the entire break down of news .
Have a GREAT WEEK

Consumer spending rose 0.5% to $52.4 billion in January, slightly more than economists had anticipated. Personal income increased 0.1% to $11.4 billion.

The Institute for Supply Management reported that the monthly index of manufacturing activity was 56.5 in February after reaching 58.4 in January. Nevertheless, it was the seventh straight month of expansion. A reading above 50 signals expansion.

The Commerce Department reported that total construction spending fell 0.6% in January after falling 1.2% in December. Economists had expected a decrease of 0.7%.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending February 26 rose 14.6% to 629.9. Purchase volume increased 9% to 214.5. Refinancing applications jumped 17.2% to 3,054.3.

The monthly index of non-manufacturing activity rose to 53 in February from 50.5 in January. A reading above 50 signals expansion. Economists had anticipated a reading of 51. The reading was the highest since October 2007.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 7.6% in January after a revised 0.8% increase in December.

The Labor Department reported productivity rose at an annual rate of 6.9% in the fourth quarter. Labor costs fell at an annual rate of 5.9%.

Factory orders rose 1.7% in January, slightly below the 1.8% increase economists had anticipated. It was the fifth straight gain and follows a 1% increase in December.

The unemployment rate held at 9.7% in February. Employers cut 36,000 jobs in February, far fewer than expected. The four-week average for continuing jobless claims fell 134,000 to 4.5 million.

Upcoming on the economic calendar are reports on wholesale trade on March 10, international trade on March 11 and retail sales on March 12

Condos Reverse Foreclosures Hardly a Solution

As you can see from the article below , some condo projects are taking what to me its a drastic approach to the non paying unit owners and forcing an early foreclosure of there units the condo boards then rents the units until the bank forecloses to try to recuperate the HOA fees that there missing .
The problem its that them this complicates ad delays the original foreclosure process , taking the value of this unit and the entire project down .

Also this its opening the door to unscrupulous condo managers that will evict owners to profit from rents and delay for as long as possible the banks foreclosure there fore killing the units value.

I can not say i see a easy solution but this to me its no


BY RACHAEL LEE COLEMAN
rcoleman@MiamiHerald.com
Revenue-starved condominium and homeowners associations struggling to keep the taps running and the lawns mowed have found a novel way to squeeze money from units that don't pay what they owe.

It's called a reverse foreclosure, a tool that can force banks to pay association maintenance fees when unit owners don't.

It's a way for associations to halt the decline that begins when one owner quits paying maintenance fees, followed by another, then another, forcing a reduction in general maintenance, driving down property values even more, and leaving a community riddled with vacancies and vandalism.

Also, it's a way for associations to stick it to banks -- who they are convinced have been sticking it to them since the real estate meltdown began.

Banks, for their part, deny any dishonorable intent and say they are just protecting their interests, as any prudent business would do.

Here's how a reverse foreclosure works: When a home or condominium owner stops paying the mortgage, the bank files a notice of foreclosure to safeguard its stake. After that, some banks deliberately delay the process of taking back the property.

They take their time because, if it's like most South Florida properties, the delinquent unit is worth less than the outstanding mortgage. In the lingo of the trade, such units are ``upside-down.''

Banks are in no rush to have upside-down properties on their books.

Delaying foreclosure can be a nightmare for homeowner and condo associations. When people stop paying the mortgage, they invariably stop paying their maintenance fees. As long as a foreclosure is in limbo -- and the process can take years if a bank wants to slow things down, associations say -- unpaid maintenance fees pile up.

Under a reverse foreclosure, the association files its own foreclosure notice and takes title, which is its right after the homeowner stops paying maintenance fees. The association can't sell because of the bank's lien. But it can renounce its claim on the property in court and ask the judge to give the title back to the bank.

Then the bank has to pay the fees.

It's a hardball tactic, but condo and homeowner associations say they have been forced to resort to it because the Legislature, beholden to lenders and their lobbyists, refuses to make the banks take over the units and cover the unpaid bills.

Although reverse foreclosure is a new concept, it could become very popular very quickly. In a recent survey, 60 percent of Florida condo and homeowner associations reported that half of their units were two months behind in paying maintenance fees.

When unpaid fees become an epidemic, associations sometimes have to charge ``special assessments'' to owners in good standing to make up for lost revenue and cover the cost of utilities, upkeep and insurance.

Special assessments cause fierce neighbor-vs.-neighbor resentment, and can trigger a domino effect -- even more units sliding into default.

``These legal strategies are a direct response to the fact that the laws haven't changed,'' said Ben Solomon, an attorney with Association Law Group. In January, he engineered the state's first reverse foreclosure, on behalf of Keys Gate, a master-planned community in Homestead.

Although a reverse foreclosure sticks a bank with a property it doesn't want, Florida law gives the lender a break on the outstanding bill. Under existing statutes, banks cannot be forced to pay more than 12 months of past-due homeowner association fees or 1 percent of the overall mortgage amount, whichever is less. In the case of condos, the cap is six months