Recently, a single mother lost her job in a central Florida town and was about to lose her house, too. But then she made a seemingly simple request of the bank: Show me the original mortgage paperwork. And just like that, the foreclosure proceedings came to a standstill. This homeowner, and others like her around the country, are managing to stave off foreclosure by employing a strategy that goes to the heart of the whole nationwide mess.
During the real estate frenzy of the past decade, mortgages were sold and resold, bundled into securities and peddled to investors. In many cases, the original note signed by the homeowner was lost, stored away in a distant warehouse or destroyed. Persuading a judge to compel production of hard-to-find or nonexistent documents can, at the very least, delay foreclosure, buying the homeowner some time and turning up the pressure on the lender to renegotiate the mortgage.
In recent interviews with The Associated Press, lawyers, homeowners and advocates outlined the produce-the-note strategy. Exactly how many homeowners have employed it is unknown. Nor is it clear how successful it has been; some judges are more sympathetic than others. A Tampa lawyer, whose Consumer Warning Network Web site offers the free court documents this woman used to file her request, has played a major role in promoting the produce-the-note strategy.
Conversely, the deputy executive director of the American Securitization Forum, a group that represents banks, law firms and investors, dismissed the strategy as merely a stalling tactic. He said homeowners are “making lawyers jump through procedural hoops to delay what’s likely to be inevitable.” In his opinion, the original note is almost always electronically retained and can eventually be found.
Although Judges MAY be willing to accept electronic documentation; and, lenders are sometimes allowed to produce other paperwork to establish they are the holder of a loan, assembling such documents, to a judge’s satisfaction, takes time, which to homeowners is the point.
A University of Iowa study last year suggested that companies servicing mortgages are often negligent when it comes to producing the documentation to support foreclosure. In the study of more than 1,700 bankruptcy cases stemming from home foreclosures, the original note was missing more than 40 percent of the time, and other pieces of required documentation also were routinely left out.
The first big success of the produce-the-note movement came in 2007 when a federal judge in Cleveland threw out 14 foreclosures by Deutsche Bank National Trust Co. because the bank failed to produce the original notes.
Democratic Rep. Marcy Kaptur of Ohio endorsed the strategy in a fiery speech on the House floor during debate on the federal bank bailout last month. “Don’t leave your home,” she said. “Because you know what? When those companies say they have your mortgage, unless you have a lawyer that can put his or her finger on that mortgage, you don’t have that mortgage, and you are going to find they can’t find the paper up there on Wall Street.”
April Charney, head of foreclosure defense for Jacksonville Area Legal Aid in Florida, said the strategy has been so successful for her that she now travels around the country to train other lawyers in how to use it. She said she has gotten cases delayed for years by demanding that lenders produce paperwork they cannot find.
“This is an army of lawyers getting out there to stop foreclosures so we can get to the serious business of creating solutions,” Charney said. “Nothing good is going to happen as long as we continue to bleed homeowners.”
So, what about that central Floridian single mother's case? Well, she filed her "produce-the-note demand" last fall after the bank acknowledged that her original mortgage document had been lost or destroyed. Since then, there has been no activity on the foreclosure - no letters from the lender, and no court filings.
Through the years, legislative bodies and professional organizations have tried to make it easier for Buyers and Sellers of residential properties to complete their transactions without the aid of attorneys. But more people these days are going to their closings accompanied by an attorney, or are at least having one review their sales and financing contracts in advance. And we agree!
Seems as though each and every day we hear horror stories of "sales gone bad" and the rising tide of foreclosures doesn't help one bit. It makes a lot more sense to seek a professional legal opinion BEFORE problems arise. It'll probably be the best $100 +/- you'll ever invest!
Suits occur after a sale ... before a sale in consummated ... when a contract is unfulfilled ... for specific performance ... just about anytime. With the aid of expert legal advice and, sometimes, the simplest addition of specific language, many problems are easily averted.
Many local REALTORS don’t like the idea of lawyers being involved in what should be a simple residential sale. With most firms not employing in-house counsel, they don't like shelling out the extra dollars from their commissions. But the laws are changing all the time, getting more complex, not less. And a legal review is a VERY good idea!
Housing prices will hit bottom in the fourth quarter of 2009, predicts Moody’s Economy.com in a new report. “Despite the darkening national economic outlook and the weak conditions in the housing market, some positive signs give hope that a bottom in the housing market is coming into view,” the report says. On average, home prices will decline 36 percent from the peak in the first quarter of 2006, the report says. By the end of the housing downturn, nearly 62 percent of the nation’s 381 metropolitan areas will have experienced double-digit-percent declines in house prices, peak-to-trough, says the report. The declines will exceed 20 percent in about 100 metro areas, according to the report, and the recovery will be “lackluster.” “A number of uncertainties in both the housing and economic outlooks remain, and the risks tilt to the downside,” says Moody’s Economy.com Chief Economist, Mark Zandi.
Ralph R. Roberts, consumer advocate and spokesperson for Federal Loan Modification Law Center, LLP, released a list of the top 10 steps homeowners can take to negotiate an affordable loan modification. The following steps apply to homeowners working directly with a lender, as well as to those teaming up with an attorney or alternative third-party representative.
1. Come clean. It can be tempting to bend the truth when you are trying to convince a lender to approve a loan modification. Only by laying all your cards on the table and disclosing the truth can you begin to develop and implement solutions that will put you back on the path to long-term financial health.
2. Understand your lender’s point of view. As far as your lender is concerned, it all boils down to money. You are most likely to be approved if you can show modifying your loan will cost the lender less than a foreclosure.
3. Keep a cool head. Expressing anger toward your lender puts you in an extremely disadvantageous position. For example, your lender may decide that you are unreasonable and that foreclosing would be less costly overall.
4. Give them what they need. In order to expedite the situation, find out exactly which forms you need to fill out and which documents your lender needs to process your application. Make sure you provide everything to your lender or representative in the manner specified.
5. Ask for what you want. Before meeting with your lender, make sure you spend some time figuring out what you want and need. For example, how much can you realistically afford to pay each month?
6. Let them do their job. Loan modifications typically take between 30-90 days from start to finish. During this time, avoid the temptation to micromanage the process. To alleviate unnecessary anxiety, ask your lender for an anticipated timeline.
7. Get your financial house in order. Put a tracking system in place today and start developing a budget to ensure you are not spending more money than you are earning.
8. Keep everyone posted of any changes. If anything changes related to your financial situation, be sure to keep your loan modification representative or lender in the loop.
9. Make sure the lender’s offer is truly affordable. If the loan modification is unaffordable or makes your budget so tight that you are only one car repair or medical bill away from defaulting again, head back to the negotiating table to try to work out a better deal.
10. Hold up your end of the bargain. The key to success is discipline and commitment. All the effort you spend setting up a plan is of no use if you don’t follow the plan you created or agreed to.
Al Muller had numbers on parade Wednesday when he spoke to the Navarre Area Board of Realtors about where the local real estate market has been and where it is. But what his audience of nearly 90 really wanted to know was: How soon will things get better?
Muller’s answer: That pretty much depends on the intersection of projected & actual trend lines when it comes to sales. That would align the ability to buy based on actual income and when prices become affordable again. “When will the two lines meet?” Muller asked rhetorically. “Optimistically, by the end of 2009 ... pessimistically, by the end of 2010 ... realistically the middle of next year.”
Muller is with Metro Market Trends, which provides reporting and analysis information on real estate sales, tracking and market share for Florida and South Alabama. His PowerPoint presentation showed resales of single-family homes down 19 percent in Navarre and on Navarre Beach since 1991. Condo resales are down 58 percent for the same span. “Booms are followed by busts,” Muller said, “but bubbles are followed by carnage. ... This is the first time in our history that a real estate decline has pushed the economy into recession, instead of the other way around.” Declining home prices and an increasing foreclosure rate were factors he listed on both the positive and negative sides of the ledger. “That’s our medicine,” Muller said, “and there is no other answer but time.”
Unless, of course, President Barack Obama’s administration and key federal agencies intervene.
“We forget that the federal government now owns Freddie Mac and Fannie Mae,” Muller said, “and if they want to decide Monday that rates are 4 percent on a 30-year fixed loan, they can do it. ... This would mean something to people who could refinance or people who are sitting on the fence about buying.”
James Baker from Fort Walton Beach-based mortgage banker Baker and Lindsey Inc. saw elements of hope in the presentation. “It’s felt negative for a long time, but the data he has supports our feeling that there’s good mixed in with the bad,” Baker said. “What struck me most was hearing that it’s much worse in other areas. That means we can feel better about this market coming out of it sooner.”
And what about those 4 percent loans? “Definitely not a pipe dream,” Baker said. “It would be one of the most effective things the government can do. It would help people buy homes, and if they refinanced with that rate, the value and the payments would be more in line. That would make people feel better about their homes, and that would directly affect foreclosures.”
A new tax credit of up to $8,000 for first-time homebuyers that’s being included in the economic stimulus package was far less than the homebuilding industry wanted, and analysts expect it will provide only a modest boost to the battered U.S. housing market.
The tax credit is part of the economic stimulus package expected to be signed by President Barack Obama on Monday. It was scaled back from a Senate proposal of $15,000 and limited to first-time buyers who act between the start of this year and the end of November. The credit for 10 percent of the value of a home, up to $8,000 was estimated to cost the government $6.6 billion. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Struggling homebuilders, already looking ahead to the traditional spring selling season, had been counting on Congress to help spur pent-up sales after completing the worst year for new home sales since 1982. Executives for one major builder noted earlier this week that they had seen an uptick in traffic over the weekend as many prospective buyers learned of the Senate’s original incentive provision. But with that proposal gone, Wall Street analysts said the homebuyer provision will have a negligible effect on homebuilders’ fortunes. “Congress, unambiguously, left the builders out in the cold,” said Deutsche Bank analyst Nishu Sood. “It’s a pretty big disappointment that they scaled it back.”
Real estate agents were more optimistic. The National Association of Realtors projected the change will stimulate an additional 200,000 home sales. The big unknown, however, was the state of the economy. With employers laying off thousands of workers, many potential homebuyers are nervous about making such a big financial commitment.
Mortgage rates remain low, falling this week to a national average of 5.16 percent for a 30-year fixed-rate mortgage, according to mortgage finance company Freddie Mac. But credit remains tight and borrowers need a downpayment of at least 3.5 percent to qualify for a loan backed by Federal Housing Administration, a popular option for many first-time buyers.
Many potential buyers haven’t saved up enough money for a downpayment. “If you don’t have a way to get that, the tax credit doesn’t do them much good,” said James McCanless, an analyst who covers builders for FTN Midwest Securities.
But if the government can prod lenders to loosen credit standards and buy enough mortgage-backed securities to keep mortgage rates low, the tax credit could make a difference, said Mark Zandi, chief economist at Moody’s Economy.com. “I don’t think it’s enough to jolt the housing market back to life, but it’s a plus,” he said. Last year, Congress enacted a $7,500 tax credit for first-time buyers, but that had to be paid back over 15 years and the impact on home sales was negligible.
First-time buyers, in last year’s law, were defined as those who haven’t owned their own homes for three years. “The bulk of the market right now is first-time buyers,” he said. First-time homebuyers bought 2.2 million new and existing homes last year, according to the National Association of Realtors, making up about 41 percent of total U.S. home sales, up from 39 percent in 2007 and 36 percent in 2006.
Concerns about the bill’s overall costs, plus criticism that a much larger credit would not benefit borrowers on the verge or foreclosure, and mainly help people with healthy enough incomes to buy a house helped sink plans for a much larger credit. The homebuilding industry mounted an unsuccessful push for a credit for up to $20,000 for all buyers, flying builders in from around the country last month for a massive lobbying push that wound up falling short. “What the builders wanted was massive relief – not targeted toward where the real problem was – paid for by everybody,” said Thomas Lawler, a Northern Virginia housing economist. “That seemed to be pretty egregious.”
Sales fell in the fourth quarter of last year around the country, except for six states where buyers have been able to snap up foreclosed homes at a bargain: Nevada, California, Arizona, Florida, Minnesota and Virginia, the National Association of Realtors said Thursday. Nationwide, the median sales price was $180,100, down 12 percent from a year ago.
Stephen Elias, author of "The Foreclosure Survival Guide: Keep Your House or Walk Away with Money in Your Pocket" has the following take on foreclosures: "Businesses know that they can take advantage of legal options to change or abandon the terms of the contracts they sign ... but individuals tend to be far more reluctant to do so. Just as people don't like to file for bankruptcy, they don't want to allow a foreclosure," Elias said. "They feel they should pay their debts."
Some change their minds when they see the hopelessness of their situation or the advantages of walking away from what they owe. But others feel honor-bound to pay if they possibly can. Such folks will do what they can to avoid foreclosure, and move out as soon as it's clear they're losing their homes. Those folks aren't stupid. What may not be the smartest decision in financial terms is still the right choice for them. "It's so much more important to listen to your heart and go that way," Elias said, "than to take advice from someone like me."
If you're weighing whether to fight for your home, Elias suggests you ask yourself these three questions: (1) Can you make your mortgage payments while meeting your other obligations? Those obligations include feeding your family, paying your other bills and saving for retirement. If you can trim your expenses and reduce your bills to make your mortgage more manageable, clearly you should. But if your payment already gobbles up half or more of your gross income and more increases are on the horizon, your situation may be untenable. (2) Can you keep your home without raiding your retirement funds? It's almost never a good idea to dip into your 401(k) or individual retirement account to pay continuing bills. Withdrawals trigger serious tax penalties and deprive you of future tax-deferred returns -- figure that every $1,000 withdrawal costs you $10,000 in future retirement income. That sacrifice might be worth it if you'll actually keep your house, but many who are tempted to raid their retirement funds will only delay, rather than prevent, the loss of their homes. Then they're left with no home AND no retirement. (3) Is a rescue in sight? Don't mortgage your future by holding out for a rescue that may never come. Talk to a HUD-approved housing counselor. These folks know all the details of the loan modification plans and can help you assess whether, and how much, you'll be helped. You can find referrals through your Personal Real Estate Consultants.
If you decide to explore foreclosure ... Avoid scams. Ignore anyone who contacts you offering foreclosure help or demanding huge upfront payments. HUD counselors, or those from the National Foundation for Credit Counseling, can provide the information you need for free. If you decide you need an attorney's help to save your home, get a referral from your local bar association or Personal Real Estate Consultant. Learn more about the foreclosure process. It varies widely from state to state, moving faster in some than in others and carrying different risks. In some states, for example, lenders can sue you for the difference between what you owe and what the foreclosed home sells for; in others, the risk is lower or nonexistent. Elias' book is an excellent primer, but you'll also want to talk to a bankruptcy attorney.
Lastly, keep an eye on the bankruptcy news. Right now, a bankruptcy doesn't do much to help you keep your home unless you can quickly catch up on your payments. But Congress may soon allow bankruptcy judges to modify terms on primary residence mortgages. If your principal could be reduced and your payments made more affordable, the cost of a Chapter 13 bankruptcy filing could be worthwhile -- but again, you'll want an attorney's advice.
Company executives are reporting FNMA is testing a new "short sale" program aimed at reducing the number of foreclosures by pre-approving sales where homeowners sell their houses for less than the amount owed. How will it work? No one is totally certain yet - but - the plan is to have a branch of the company be responsible for determining an acceptable listing price (for a so-called "short sales") even before a buyer has been found. Is is a smart move? Only time, and submitted offers, will tell.
Homeowners who are having trouble staying current on their mortgages may get some help from the Economic Stabilization Act. The law authorizes the government to work with mortgage servicers and struggling borrowers to modify the loan terms on the mortgages the government owns.
The new law expands the FHA homeownership program as part of the economic stimulus package. Under that program, borrowers facing foreclosure can refinance into FHA backed financing IF the original lender writes down the balance of the mortgage to the current market value,. In some instances, the current market value may be greater than the short sale offers being made from investors to the banks. Another benefit is that current homeowners would get to keep their property at today's market value. And if history has taught us anything - it's taught us that property values WILL rise again.
This program is DEFINITELY something owners should consider and address with lenders should they find themselves having trouble staying current with their mortgage and facing possible foreclosure.
The U.S. Department of Housing and Urban Development recently launched a new, comprehensive website to assist Americans with improving financial literacy, sustaining healthy homeownership and achieving financial security. The My Money, My Home, My Future website (http://portal.hud.gov/portal/page?_pageid=73,7620944&_dad=portal&_schema=PORTAL) provides a range of interactive resources to inform users about the importance of financial literacy, including a Self-Assessment Tool, online games and informative classes.
The new site provides a wide-range of information about all avenues needed to be successful on the road to greater financial education, including:
* Building a Financial Foundation; * Sustaining Healthy Homeownership; and * Achieving Financial Security.
One of the most unique features of this website is the Self-Assessment Tool. The Self-Assessment Tool provides an extensive guide to help users learn more about personalized options for purchasing and/or refinancing their home. Users will be prompted to answer a few questions. Based on the answers given, the Self-Assessment Tool lists numerous links to visit on-line to learn more about the necessary and correct steps to own a home, refinance a home, enhance their financial skills, and much more.
Some of the other links on My Money, My Home, My Future give detailed information about:
* 9 Steps to Buying a Home * Housing Counselors and Lenders * Banking, Credit and Building Wealth * Foreclosure Process and Alternatives * Refinancing Loans and FHA Insured Loans
This new site is also located on www.HUD.gov and www.FHA.gov both in easy to find locations on the main web pages.
Times … they are a changin’! The stock market sucks! Some banks were so overextended – the Fed stepped in and closed them down. Even FNMA and FMAC were in such dire straits that the government had to bail them out. So, waddawedo now?
First – we need to recognize we’re in a recession. It happens. I think the last one was in 2001 (albeit a modest one). Anyone over the age of 50 probably remembers their parents talking about the great depression. (1929-1933). My grandfather had been in America for less than 10 years and was a furrier. To make ends meet, he & my grandmother lived atop their store in a small apartment, worked sales and manufacturing alone and saved what they could. They kept most of their discretionary income in a shoe box, big envelopes and a mattress – after all, nobody trusted banks!
This certainly is NOT a time to keep money under your bed, in a mattress or buried in the backyard. If you’re one of the lucky ones who has some “ready cash,” it’s time to buy if your credit’s okay. Especially real estate!
Whether it be a vacation home or vacant land for use or sale at a later date. When the recession ends (economists are predicting this will be in the not too distant future), the value of real estate will rise again as it always has.
Many of the folks we come in contact with feel there’s no better time to start building equity in real estate … to own a little piece of this earth. Only one problem, many of them live in urban sprawls, like Atlanta, where the pace is quick, the traffic unbearable, and the prices outta sight! So, what are more and more of these folks, unhappy with the stock market, starting to do? Contact WealthCreation in an effort to buy a place outside the city… near the coast. Not vacation homes or rental properties alone – but – vacant land as well. Historically, vacant land has proven to be a valuable part of balanced portfolio. And, in today's market - vacant land is VERY affordable!
Over the past year, the number of homes and land bought for investment purposes has risen and the number is still growing. While some of WealthCreation’s sales have been due to increased speculation, market analysts believe that both first time home buyers AND aging baby-boomers are buying away from the urban sprawls. Their options? Buy a summer home, vacation rental or plot of land where they plan to retire.
What should you look for? (1) Know your market. Talk to your Personal Real Estate Consultant (that’s us!). Is the area growing? What are the comps? What type of appreciation can “reasonably” be forecasted in today’s market? (2) Know what extra costs you may face. In addition to property management fees, don’t forget you’ll also pay property taxes and, in some cases, community association fees as well. Adjust your financial calculations accordingly. (3) Ask questions about what you can expect should you decide to rent the property. Not everyone will have family or friends close by to watch over and help with their rentals. Property management companies charge as little as 5% or as much as 50% depending on the service provided and property location. B-I-G difference!
Successful investors, with full lives, face the same frustrations and hurdles as everyone else. The difference is the way they handle their “indecisions.” Rather than feeling immobilized by their worries, successful people conquer them. They know “You Can Make Money or You Can Make Excuses – But – You Can’t Do Both!” After all – according to Dr. Richard Carlson, courage is best described as being afraid and “doing it anyway.”
Make this New Year Prosperous. Resolve to Step Up…Ask Questions…Get Involved…Make Reservations … Decide … & as Nike says … “Just Do It! “
Over the past year or so, foreclosures have had an unintended effect on renters ... their eviction. Homeowners, looking to get every last dime out of a sour investment, rent their homes ... the owner doesn't pay the mortgage ... never divulges, to the unsuspecting long term renters, the home is in foreclosure proceedings ... then ... renters get served notice they've got 30 days (sometimes less) to vacate. No reprieve! Well, now, it appears, there IS a reprieve on the horizon.
FNMA and FMAC are finalizing a plan to help renters stay in their homes even if the owner enters foreclosure. Under the new plan, renters, who show they can afford the rent, will sign a new lease with FNMA or FMAC while the property is up for sale.
While to us laypeople this policy makes perfect sense ... you have to wonder who, at these quasi-governmental agencies, thought it up, presented it and sold it to their superiors. In the 28 years I was associated / employed with the Federal Govt ... they were NEVER this accommodating! All I can say is - it's about time! I guess some negatives DO produce some positives.
Last year, if your credit score was “tarnished,” the Federal Housing Administration didn’t care. You could obtain a house loan credit score “sight unseen” … not any more. The financial problems on Wall Street coupled with the housing crisis have, as most Americans know, forced lenders to tighten the credit reins. Never before has a good FICO Score been so important. It takes time to build up a credit score. And you need to remember that NO ONE can look out for you better than YOU can!
Check your credit. Get your free annual credit reports . Pay attention to mistakes – get them corrected.
Retirement hot spots like Panama City Beach and the State of Florida in general, have been hit with falling prices. There are tens of thousands of homes for sale which means that in today's market, there's a lot of choice ... and room to bargain. For those folks looking to relocate or retire in the next few years, we'd suggest you vacation with us this winter. Check out our market. In the 2 to 3 years it'll take you to relocate, prices and rates are likely to rise. In our market, for instance, recent RealtyTrac and MLS searches indicate Panama City is showing signs of a slowing inventory and firming of prices.
Growth is bustling in Panama City Beach, but the area’s beauty remains unspoiled. Once a tiny, lesser-known, rural area, Panama City Beach, Florida today is well known for its sugar white sandy beaches, emerald green waters, lagoons and rivers, venues for recreational boating, sailing and fishing. What makes folks want to come back time and time again is the reality that still much of the area is undeveloped and, oh, so pristine. Thanks to the State of Florida, Panama City Beach enjoys neighboring St Andrews State Park that includes picnic pavilions, camp sites, dedicated reefs (enhancing one’s snorkeling and scuba diving experience), restrooms, showers, a boat launch, piers, a bait shop and a dedicated venue for shell collectors, and Shell Island, accessible only via the connecting waterway by boat. If you’re into fishing, you can wet your line in both fresh and salt water in the Panama City Beach area. With any luck, you’ll reel in bonita, king mackerel, speckled trout, mahi-mahi, and/or pompano. Both off shore boat excursions and stationary pier fishing are available. Panama City Beach boasts outstanding restaurants, antique shops, flea markets and art galleries with more businesses relocating here everyday. The area lies between the planned paradise development Seaside (the location of the 1997 hit motion picture “The Truman Show”) and Apalachicola (home to the BEST and MOST RENOWNED oyster beds in the State). Once you have experienced Panama City Beach yourself, don’t be surprised if it sneaks into your mind long after you’ve returned home. Pristine beaches, salt air, quiet days and gentle breezes have that legacy.
The Fed cut it's discount rate to near 0% yesterday. There is not much more ammunition left in the Fed's arsenal to make further cuts and investors wonder what they can do next to shore up our credit system. If you have a prime-based HELOC, that does not have a "floor", you should be turning cartwheels today, but don't expect too much to happen with mortgage rates.
The financial markets already anticipated a cut of 0.5% and that effect was factored in to today's rates. This morning, the market is poised in anticipation of wiping out most of the yesterday's gains as the realization that, "It may not do that much to help" sinks in. On the flip side, if the stock market continues to rise, demand for the Tbills will drop off and could conceivably send those yields up. (Complicated system - that does NOT favor the little guy!) So, a continued rise in stocks MAY put downward pressure on the price of Tbills and drive mortgage rates back up. (Isn't this fun!)
Suffice it to say, the short term psychological reactions will wane very quickly. This FED rate drop will most likely be "short term". Then, as the markets re-gain their composure, rates will return to their previous levels and erase those short term gains. What's the good news?
Rates will still remain at historically low levels; and, we could see a much slower trend downward. But, most likely Banks and Lending Institutions will hoard the spreads to try to recover some of their huge losses in their servicing portfolios and investment banking divisions. (Opportunistic SOB's!)
To become a fact, the 4.5% mortgage (that seems to have everyone's attention) would require extreme intervention by the Fed. We all got wind of that # in the press over the last couple of weeks. What it did was actually slow the recovery! How? Buyers who were otherwise comfortable with the rates in the (historically low) mid 5% range and were ready to buy have now moved back to the sidelines in anticipation of these low rates. It COULD happen, but according to one of our local professionals, the general feeling is that "Even if the FED starts buying mortgages directly, the banks will still try to figure out how to pocket the spread and increase their miserable bottom lines."
With rates at an average of 5.25%, the difference in the payment will be around $45.00 per $100,000. I think when consumers become aware of what that monetary difference is, it will change their perception of whether they need to wait around or not. Now IS the time to buy!
(Special Thanks to Grady Brown, Wells Fargo Mortgage Consultant, for this content; For addntl info - 850-522-6162)
Do some homework and your research will show you Panama City Beach is where many Americans are moving and real estate, although tempered with today's market, is still projected to boom! This “hot little town” not only offers everything from good education to affordable housing, but a solid military presence (NAS Panama City and Tyndall AFB) and a growing job market as well. Most investors, retirees and job seekers hunting for the right town in the sunshine State are seeking an area capable of providing a tempered lifestyle, warm weather, excellent hospitals, crystal clear water, and distinct weather seasons. Panama City Beach has it all!!
According to Renee Rackett, Broker/Associate WealthCreation, "As more people are exposed to this area through vacationing, more want to make a permanent investment by buying a second home or condo. Armed with disposable income, these individuals are turning to the Florida Panhandle and Panama City Beach. The coastal market is shifting. Destin, San Destin, and Perdido Key buyers are heading east. So, shoulder markets, such as Panama City, are now benefiting from buyer’s hunger."
We believe knowledge and information is power – so, we try to stay in contact with you … our buyers … to keep you up to date on the happenings in this area. If you haven't been here lately ... you haven't been here! Happy Holidays!
If you missed the auction this past week-end at Origin of Seahaven but you'd like to get in on the "steal" ... you're up that well known tributary without the proverbial paddle! "Incredible" is the only word that comes to mind.
The first sale was a 3 bedroom unit for $270,000. At 1781 sq ft, that makes the square foot selling price of that unit $151.60! The next unit, a 2 bedroom condo, sold for just over $200,000. At $201,000, the 1306 sq ft 2 bedroom 2 bath unit fared only slightly better than it's 3 bedroom sister. It garnered a mere $153.90 sq ft.
I guess I shouldn't be too surprised. I mean, Palazzo and Ocean Reef sold for just over $200 sq ft and they're beachfron properties. Seahaven, while of first class construction, is, in fact, not Gulfront, rather Gulfview. As such, probably should command a 10% discount. Even so ... buyers at Saturday's auction finally got what Ocean Reef, Marina Landing and Palazzo failed to deliver ... condos at an "Absolute" auction for a bargain basement price.
One of our affiliates has located a company offering credit repair. They currently have about 35 people that are in the process of improving their credit scores. The company providing this service actually helped write the FICO credit scoring model. Interested? Give us a call (Our contact numbers are posted on our home page). We’ll get you where you need to be!
Yesterday, the national average rate on a 30-year fixed rate mortgage fell to 5.49 percent, down slightly from 5.54 percent on Tuesday, according to financial publisher HSH Associates. Rates. Also, yesterday, the Mortgage Bankers Association said mortgage application volume dipped about 7 percent last week after soaring a week earlier. People are beginning to take a "wait-see" type attitude. Falling interest rate significantly effect mortgage notes homeowners pay ... a 1/2% decrease can mean hundreds of dollars in savings for prospective Buyers.
Lower prices in some of the hardest hit markets, and almost irresistible bargains on distressed properties, are bringing some buyers out of the woodwork.
Conversely, lower mortgage rates also could prevent housing prices from dropping as much as they otherwise would. That would mute their effect on the overall economy.
Unlike our sister states, when it comes to condos, Florida real estate professionals have long held the best way to determine the "health" of a market is by examining the price per square foot. Price per square foot is much more relevant than the sales price. For example, while a 2 BR / 2 BA unit at Emerald Beach Resort may sell for $292K; and a 2 bedroom at Shores of Panama for $255K, it's important to note the unit at EBResort unit is 1299 sq ft while the unit at Shores is 1063 sq ft. So at $225 per sq ft vs $240 per sq ft (in this example, only) the Emerald Beach unit would be a better deal. For those interested in the "health" of the respective markets in the Panhandle, a recent comparison of NWFlorida markets yielded the following: Condo units along San-Destin's 30-A corridor (Seaside, WaterColor, etc) had the highest resale value at approx $415 sq ft, followed by Okaloosa Island and Pensacola Beach at $384 and $378 sq ft respectively. Panama City Beach was last at $230 sq ft ... driven down, primarily, by the current auctions clearing excess inventory. The good news is that inventory levels in Panama City are nearing 2005 levels - terrific news for sellers.
A long range development plan for 55,000 acres in our local community area could include as many as 30,000 residential units. The Bay County Commission approved a request from the Knight Family Trust to move forward with the development of a "sector plan" for a property that extends from a beginning point intersection of Hywy 20 and Hywy 79, Eastward to the intersection of Hywy 20 and Hywy 77; then North to Hywy 278; then, back West again -back to Hywy 79; then South (to complete the loop) at the point of beginning. Florida Legislature allows only 5 such "large area sector plans" state-wide; so, this is a distinct opportunity for our area. This, the initial meeting, is designed to provide a broad brush plan to the public ... private citizens ... local govt officials ... and to any concerned agencies. It affords citizens the opportunity to view proposed plans to see where residential and business development might take place as well as conseravtion set-asides. This is the 1st step in a long process!
In Dec's HotSpot NewsNote we'll be covering this topic in greater detail. Suffice it to say, while, at one time, there was quite the concern over Panama City stealing Destin's tourists, businesses and the like ... concerns have settled. Panhandle cities seem to ALL be excited about the possibilities that are prophesied to accompany the new airport. Some, already, seem to be bearing fruition. The increased publicity has spurred a new interest in the area by both investors and the media. Want to learn? Sign-up to receive our monthly HotSpot NewsNote.
Seems as though what goes around – comes around. Vacant land at PCBeach, at one time selling for as much as $300K for lots NEAR the beach has become the favored step-child of late. Premium lots (in gated communities); Beach access lots (within walking distance from the beach); Commercial lots (in terrific locations) are as low as $30K … they’re affordable and are, once again, being scooped up by investors. AND WHY NOT Taxes are low on vacant land, the returns (although generally long term) have been MUCH higher than other speculative strategies .
Of late, there's been a lot of chatter about a plan by the US Treasury Department to use the influence of Fannie Mae and Freddie Mac to lower mortgage rates down to 4.5% for home purchases. The plan, which is in the development stage, would temporarily use the clout of mortgage giants Fannie Mae and Freddie Mac to encourage banks to lend at rates as low as 4.5%, more than a full point lower than prevailing rates for standard 30-year fixed-rate mortgages in order to attempt to stimulate the housing market. It's estimated the idea under consideration could quickly help 1.5 million to 2.5 million people buy homes, giving a major boost to the housing market and broader economy.
So, can you expect 4.5% interest rates? We’ll just have to watch and see. There have been other ideas launched by the government this year and last that haven’t panned out. We can only cross our fingers on this new one!
(Basic article insight provided by Ms Sue Botehlo, Northstar Mortgage, Destin, FL)
With an early Fall cold spell attacking the upper mid-Western and Northeastern U.S., a colder, more brutal, winter predicted for the Northern states, the return of less expensive gas, and the increase in area discounts ... it appears as though things are picking up in the Sunshine State. According to local tourism officials, things slowed down in September and October when the stock market went South ... but, lately people seem to be warming to the idea of travel. Thanksgiving week was especially busy. Some people are here as owners ... some as returning vacationers ... some as curious investors looking for a "deal." Whatever the reason ... WELCOME! We're Glad You're Here!!
Background: In Nov 06, the Scty of the Navy chose NAS Panama City to participate in the DOD backed Joint Land Use Study (JLUS). The study aims to resolve issues of water usage in the Gulf of Mexico, increased population and growth ... just about anything that might pose a risk to the integrity of the Navy's mission.
The first JLUS mtg is being held this evening at the new library on 11th Street in Panama City from 6-8 P.M. With the military being such an integral part of our community, anyone interested in their property rights, quality of life or envisioning possible conflicts of interest should plan to be present.
Gov. Crist placed a temporary freeze on housing foreclosures in Florida to provide some holiday relief from housing and financial turmoil. Although very welcome ... the reprieve will be short lived. Processes are set to begin anew January 9, 2009.
Florida homeowners facing foreclosure are finding help in an unlikely place - the company that insures their mortgage. Some PMI companies, like Genworth Financial, are helping to keep loans from failing and Florida is one of the states where the company has been most successful. In the past year, Genworth has mediated 901 workouts in the Sunshine State. If you're in this unenviable position ... give your private mortgage insurer a call - who knows?
In today's housing market, some people are finding a real estate investment niche by purchasing low-cost homes, then offering them to buyers with owner financing. Depending on the area, it can be critical and the difference between making a sale and not.
The small Campbellton Community Center was filled a few weeks ago with locals gathered to hear East Coast Ethanol's plans to set up a corn ethanol plant on State 273 about a mile west of U.S. 231. Company officials said, if everything goes as planned, a $212 million plant with a capacity of 110 million gallons of ethanol would be built in Jackson County on 295 acres of farmland. The plant should provide 40 to 50 direct jobs and many more supporting the operation.
Like its name suggests, Donut Island sells all manner of donuts: plain, glazed, sprinkled, blueberry, coconut, devils food, iced and sour cream. Donut Island's gourmet-topped donut selections include The Southerner (caramel glaze, pecans and coconut), the Island Colada (vanilla glaze, pineapple, coconut and cherry) and the store's version of the Tiramisu, an Italian dessert. Located just outside the main gate of Naval Support Activity Panama City, Donut Island sits among many other fine food eateries, a "wine boutique" and just down the block from WealthCreation's main office.
Simon spokesman Les Morris said this past week that two new restaurants, Red Robin and Guy Harvey's, are scheduled to open in February 2009. Other retailers scheduled to open at Pier Park before the end of the year include Nike, AT&T, Crocs and Emerald Coast Mirror Maze.
Located next to Panera Bread (facing Back Beach Road), Baja Grille's food features a Southwestern flavor with an Asian fusion thrown in. Scott McGlauflin, former corporate chef for Tampa's Columbia Restaurant Group, said Baja's signature dish is its Baja Tower, which features two tournedos of filet surrounding stacked baja crab cake served with a citrus demi-glaze.
On December 13th, 2008 an auction will be held on site at Origin, the Towne of Seahaven. They will sell 29 condos with over 60 to choose from, including 2, 3, and 4 bedroom options. It is being advertised as no minimums and no reserves with the auction to begin at 11 am CST. Registered bidders are expected to bring a deposit and pay a 10% buyers premium on top of the final auction price.
Edgewater Beach Resort’s been the premier resort in PCBeach for nearly 3 decades. You’d think, with all the new developments, they might be losing some of their luster. Not so. Long a magnet for social, recreational and business events, it’s no surprise Edgewater Beach Resort is planning the first of several “facelifts” between now and Spring 2009. The 32,000sf Convention Center will be upgraded; a children’s pool with a water feature will be added; a new sports complex; tennis courts will be resurfaced and exterior improvements to both the resort towers and landscaping are on the books.
If Airport Authority Chairman Joe Tannehill has anything to say about who’ll be coming to the new airport – expect the best! This past week, Mr. Tannehill let Chamber Members know that the airport authority is negotiating with several carriers; that airlines operating out of the County’s new airport in May 2010, will include a legacy carrier (one offering 1st class, bus class and some sort of reward program) AND a discount cargo carrier (such as FEDEX) as well. And, just in case you didn’t know … Bay County’s new airport will be the nation’s FIRST “green” carbon neutral airport.
Spring break 2009 will see the return of MTV. The agreement guarantees MTV’s Beach concerts and VJ’s will return. This agreement means MTV will be sponsoring PCBeach as the PREMIER Spring Break “place to be” for the country’s college crowd. MTV will be featuring Panama City Beach in a 10 campus kick-off to promote Spring Break.
Plenty of holiday cheer coming to this Simon Property. November will host a food drive with sporadic places for canned goods drops. Mid November to Christmas eve photos with Santa are available. At 6:00 PM on November 28th, there’ll be the 1st Christmas tree lighting ceremony; Throughout December, Pier Park will host a toy drive ; then, culminating the Holiday season, on Dec 31st, Pier Park revelers will be able to enjoy family activities from 5 – 8:30 PM. New Year’s Eve festivities will begin at 9 PM with live entertainment and a giant beach ball drop to welcome the New Year.
