Doors Floors and More

Cited: MSNBC

Sales executive Ren Chirakos did not need his new MBA degree after he was blindsided by law job loss/brain to calculate the scary numbers because the math was extremely easy to calculate. A house payment + new COBRA bills + $0 income = budget problems. The Chirakos family was in a bad financial situation. The answer was simple, refinance their 30-year home loan to a shorter-term mortgage with a lower interest rate, which is the latest trend in mortgages.

“I needed to keep my house,” said Chirakos, who since has found work at a different company in Cuyahoga Falls, Ohio. His wife is a stay-home mom who cares for their two daughters. “It forces you to look at ‘OK, where is our money going?’ You start looking for ways to shave fixed expenses. It really gives you cause to think.”

Chirakos was paying 5.375% on a 30-year loan before he became a victim of downsizing at toolmaker Snap-on Inc. As rates sank and slipped over the summer, he watched and waited. Then he pounced, locking in a 20-year, fixed-rate loan at 4.3% and slashing $140 off the monthly bill for his $220,000 home. With excellent credit and little debt, the re-fi cost him $900, so will pay for itself in about six months. “Every little bit helps,” he said.

For many refinancing homeowners, going shorter is suddenly more appealing. Fixed mortgages of 15 and 20 years are quickly gaining fans among those who previously held 30-year loans, balloon mortgages and adjustable rates, according to a new report from mortgage giant Freddie Mac. The number of fixed-rate, 15-20-year loans, is at their highest level since 2004, the government-controlled company said.

“The psychology of the recession” is simply altering how many Americans look at home ownership, said Jason Biro, author of “Saving Your American Dream: How to Secure a Safe Mortgage, Protect Your Home, and Improve Your Financial Future.”

During the real estate boom, thousands of consumers bought and sold homes every few years, cashing in their fast-built equity to upgrade in size or neighborhood. But since the housing bust, many of those owners have found themselves strapped with lower-valued houses and unaffordable mortgage payments. For generations before the boom, people had viewed their homes as stable, long-term investments — safe places for their money, and safe places to stay for a while.

“We’re seeing a return to that thinking — although it’s what I call a forced return,” said Biro, a 14-year veteran of the real estate and lending business. “With home values plummeting, you would think people would shy away from putting more money into their homes. But homeowners see they won’t be able to sell or move any time soon. The economy is shaky. In this respect, they’ve been forced to re-evaluate what owning a home is really about: the long term.”

Who should consider swapping their fixed, 30-year loan for a shorter variety?

Let’s start with who should not. This strategy is probably not best, Biro said, for homeowners in “financial distress” — those without stable jobs, good credit or cash in the bank. (Chirakos was an exception because he had no credit-card debt, no car payments and some home equity).

Homeowners with discretionary money — those who can afford to absorb a slightly higher monthly mortgage payment — are ideal candidates, several lending experts said. A minority of refinancers, like Chirakos, can assemble shorter-term mortgage deals that actually trim their monthly payments or leave them unchanged. Those outcomes are more apt to accompany 20-year loans. Typically, switching from a 30- to a 15-year mortgage brings at least a small bump in payments.

Even so, some owners are choosing to refinance to a shorter term even if it means paying a bit more. Blame the financial fright of hard times — and re-embracing old-school values. “There has been a shift in sentiment to pay down personal debt involving mortgages faster,” said Todd Huettner, president of Denver-based Huettner Capital, a real estate mortgage brokerage.

Readers, are you working more than one job?

Consider these side-by-side comparisons. For a $200,000 mortgage, a 30-year loan fixed at 4.5% carries a monthly principal and interest payment of $1,013 a month. Over the life of the loan the homeowner will pay $164,813 in interest. For the same mortgage, a 15-year loan at all .5% costs $1,530 a month ($517 more), but over the life of the loan the homeowner will pay $75,397 in interest, for a savings of $89,416.

And with rates dropping repeatedly in recent months, qualified owners might be able to refinance for 15 years at 4%, for a monthly payment of $1,479.

“Many people are much more motivated to gain the long-term savings even if they must pay more each month,” Huettner said.

“These homeowners see that money they could typically put into an interest-bearing savings account or a CD is not making a decent return,” Biro added. “And they’re wary of putting money into the stock market. … They are keeping their money close to home, literally. … By paying their home off sooner, many people feel they will be able to weather an impending storm.”

What’s more, the fees attached to shorter-term, fixed loans “are negligible” compared with those that come with 30-year mortgages, said Edward Mermelstein, a real estate attorney and co-founder of Rheem Bell & Mermelstein, a real estate law firm with offices in New York and Moscow.

“As long as the rates continue to stay as low as they are, it should continue to make sense to go after the 15-year term,” Mermelstein said. “It makes sense to pay down the loan at the highest price you can.”

Huettner warns, however, that if your budget is a bit squeezed by current bills, a 15-year mortgage may be too risky. “Don’t try to force yourself into a 15-year-loan,” he said.

Other brokers caution their clients to avoid shorter-term, fixed loans all together.

Owners who simply crave to pay off their mortgages sooner may be missing one vital wallet reality: “They lose all flexibility with their largest liability,” said Jon Prettyman, a senior broker at the Columbia, Md., branch of Waterstone Mortgage Corp. “Right now, all money is cheap. Fixed and ARM products are as low as 3%. The people that have the ability to pay the larger payment are doing so because it is cheap” from a long-term interest perspective.

But, Prettyman contends, “the consumer would be better off taking the 30-year and saving the difference in payment from the 15-year. … What happens when the kids need money for school? Many people are so worried about paying the bank back that they forget to give themselves the cash cushion they need to remain flexible in this strenuous market.”

Prettyman stated that short-term mortgages simply “help the banks get their money quicker. Granted, it is slightly cheaper. That money would be so much better in the family bank account. We, as taxpayers, have given these banks enough. Let’s line our pockets as consumers or a while and see if we can get the homeowner back in the black.”

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My Take: It seems to be a situation of whether your income can handle a 15-year mortgage or not. I do agree that most people would not be able to handle it because the economy right now. I would suppose that it would also depend on whether you are having a house built or if you were buying a house that is already built.

If you are having one built, you need to be careful because things can happen during construction that may cost you. If there is an accident on the worksite, you might need to contact Bronx construction accident lawyer to see if you’re liable or if the contractor is liable. If you are buying an already built house, you would need to be concerned about the construction problems.

You do need to consider your bills, besides the mortgage, they are the biggest expense you have. You have your utilities, credit cards (possibly), car payment and if you have children, childcare. Of course, were childcare is concerned, you may want to search for cheaper daycare centers. You can find child care on the Internet in your area fairly easily.

You also would need to make sure you have enough money to set aside for emergencies such as a car accident. You would need to pay for your car repairs or get a new car. It wasn’t your fault you would need to contact the New York City car accidents lawyer to recoup your losses. Or you could have something happen to the house, like a tree falling in on the roof. Your homeowners insurance may not cover all of it.

One expense that many people can’t afford is maid services MD. If you’re lucky enough to be able afford MD home cleaning, need to make sure that you set aside enough to cover it. There are probably a lot of other expenses that I can think of, but need to make sure you have a complete list of all of your expenses and a list of possible emergency expense before you decide to change mortgage. This will allow you to figure out if you can change your mortgage to a short term.

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The Natural Look

Whether you make your home in a lakeside cabin by the mountains, an elegant modern home or you find shelter in a cozy seaside cottage, one company has quality pieces that will reflect your casually sophisticated style and love for the nature around you. From the farm tables to the elegant European chairs, you are bound to find that special piece you have been looking for. This company starts with only the best reclaimed, hand crafted furniture industry. They will help you create the look that best suits your lifestyle whether that is Victorian or rustic furniture.

Protecting Books from the Sun

Just because a bookshelf and a bunch of books are inside a residence doesn’t mean that they might not be hit by the rays of the sun at some point during the day. To reduce the chance that valuable books might be faded by the sun it’s important to look into window film Colorado to make sure that if the sun happens to peek through a window during the afternoon that the rays that are let into the home aren’t so intense that books and even furniture fades due to the intensity. This is important for residents at just about any elevation.

Designing an Entry Way

There’s more to the door of a home than just the object that hangs on a pair of hinges at the front of the facade. Creating a stylish entrance to a home is easily accomplished these days with the available designer and iron doors that are popular in the marketplace today but a great way to tie everything around the door together is to match the hardware on the door with that of any light switches and lamps or sconces around the entrance. A door and the items around it should all match in color scheme and theme.

Components of a Standard Roof

A roof is composed of many layers and isn’t simply a wooden plank attached to the top of your house. There’s a reason it takes some education to build, maintain, and repair the roof of a building. A standard roof will often start with a roof truss which is the skeleton of the roof made of beams that support the finished roof. Things like rafters are part of the roof truss. The dark, heavy tar paper that you might notice covering an unfinished roof is called sheathing and is there so shingles can be attached when the roof is first built or in the event of Virginia roof repair.

Security Systems

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The Expert Painters

These Long Island painting services specialize in wallpaper and painting. As former union wallpaper hangers there is no type of wall coverings that are too difficult to work with. They use paper backed products, silk, grass and vinyl, fabrics, among others. You may simply want to accent a painted room with a paper border. How about a chair rail for a real statement? Okay, they can do a good job but what about reliability. After doing thousands of jobs over the past 15 years they can assure you that you will be satisfied with both their professionalism and quality for Long Island exterior painting.

Uses for Window Blinds

Employing window blinds strictly as a tool for privacy is certainly acceptable when creating a living space, but with the many colors and textures available on the market today, creating your own, personally designed space can be fun and rewarding. As window blinds are often used to keep things like the sun at bay on hot, sunny days, window treatments are a great place to see the perfect combination of function and design. Window blinds can exist as pieces of art for your window as well as serve as a barrier of privacy between a room and the outside world.

Cited: Reuters

Mortgage rates have fallen to the lowest level in decades over the past two months and could dip below 4% if the economy worsens.

The average rate for 30-year fixed loans fell this week to 4.42%, mortgage buyer Freddie Mac said Thursday. It was the eighth time in nine weeks that rates have fallen to the lowest level since Freddie Mac began tracking rates in 1971.

Investors fear the recovery is slowing. The latest sign came Thursday when the government reported a half-million people applied for jobless benefits last week, a nine-month high.

Mortgage rates are following the economic jitters. Rates track the yields on U.S. Treasury’s. Those yields have lowered in recent months as more investors put their money into safer Treasury’s.

Rates could fall to 4% sometime next year if the economy slips back into a recession, said Michael Moskowitz, chief executive of Equity Now, a New York-based mortgage lender with operations in six states.

For those looking for mortgage assistance . . . One Louisville Mortgage Company is a wholesale mortgage broker that shops many of the country’s largest lenders daily as well as the wholesale rate catalog in order to find their clients exceptional pricing. Perfect credit is not required to qualify for many of their best offerings and all personal information is kept confidential and secure if you are looking for KY refinancing.

“The economy is going nowhere for a very long time,” he said.

The average rate on 15-year fixed loans dropped to 3.9%. That was down from 3.92% last week and the lowest on records dating back to 1991.

Low rates have not helped the struggling housing market. It is hampered by tight credit and a weak economy that is producing few jobs.

More people are taking advantage of the rates to refinance their existing loans, with activity reaching the highest level since May 2009.

Many lenders are having a hard time keeping up. Like many employers, they have also slashed jobs because of the tough economy. Now they have fewer people available to process loans.

“They’re trying to slow the number of loans they have coming in because they can’t handle the volume,’” said Cameron Findlay, chief economist at LendingTree.com.

Rates are unlikely to fall to 4% in the next few weeks but could easily do so in the coming months, Findlay said.

To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

Average rates on 5-year adjustable-rate mortgages were unchanged at 3.56%. Rates on 1-year adjustable-rate mortgages also were unchanged at an average of 3.53%.

However, these rates do not include fees known as points. A point is generally equal to 1% of the total loan and nationwide fees for loans in a survey done by Freddie Mac average 0.7% a point for 30-year and 1-year mortgages. For 15-year and 5-year mortgages they averaged 0.6% a point.

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My Take: I, for one, am glad the mortgage rates are still low. I am in the process of buying my 1st home and I would like it to be as cheap as possible, financially speaking. It’s not like I want to buy villas in Marbella or a ranch in Montana. Although, a ranch in Montana sounds good! Even Marbella homes sound good. However, those are for when I become exorbitantly rich by winning the lottery. Ha ha!

I would love to have the cash to build my own home and to afford the Denver CO construction attorneys I would need if I had a problem. Or would those be Denver CO construction defect litigation attorneys. You see, it’s a good thing I don’t have the money to build my own home because I would note contact there was a problem.

I understand that because the rates are so low a lot of investors are purchasing homes and then renting them out. Homes for rent are a big business nowadays. I understand there are a lot of homes for rent right now, some of which may be rent-to-own homes. However, I do not live in Blaine so they will not get my business.

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Inventories Still Low

There has been some interesting movement within the lumber industry regarding the propensity for various lumber holdings companies and businesses featuring live edge lumber where many have decided not to increase inventory levels just yet even though housing markets are certainly more improved than they were a few years ago. There have been many indications that the economy is well on its way to recovery but there hasn’t been a significant amount of effort by various lumber companies to increase the lowered stock levels that have almost become normal stock levels since the effects of the recession have been so lasting.

Glasses Morph into Sunglasses

There has been a lot of development of sunglasses over the last century and a half, but it’s interesting to note that sunglasses were not nearly as widespread in their use at the beginning of the twentieth century as they were by the end of it. The advent of designer sunglasses didn’t come until the 1940s or so and before that, sunglasses were generally only used when people actually needed to wear sunglasses and not simply when a person wanted to get stylish with their sunglasses and make their outfit look great with the additions of various accessories.

Places to Stay

When deciding on places to stay for your vacation needs you may be presented with many different options that can easily change the feel of your holiday. Sometimes choosing to stay in an upscale hotel with luxuries like room service and a concierge would be the best option while on the other hand it might be more advantageous to stay in the more casual atmosphere of a local condo or home for rent. While the location of your vacation home is something to consider, the amenities provided in the residence can certainly guide your decision.

Cited: Reuters

The Obama administration on August 6 acknowledged it had underestimated the number of homeowners who fell seriously behind on their mortgage payments even after getting government help.

Treasury officials blamed the error on mortgage finance giant Fannie Mae, which acts as the program administrator for President Barack Obama’s $50 billion Home Affordable Modification Program (HAMP).

The program had been criticized for its overly optimistic estimates of the number of struggling borrowers helped by its subsidies of new mortgage terms.

Tiny Number Lasting

The actual numbers of permanent modifications that have lasted at least nine months through the end of May is tiny: just 4,764 borrowers. And 53,041 borrowers had one for at least six months through May.

Treasury said about 14.9% of the 4,764 borrowers who have had a permanent modification for at least nine months by the end of May had re-defaulted on their loan. That’s more than six times the 2.4% rate they reported on July 20.

For loans that had been permanently modified for at least six months, about 6.1% had re-defaulted, up from just 1.7% originally estimated. Re-defaults are defined as 90+ days late. For loans 60 days late and not yet in re-default, the number of borrowers in trouble is even higher.

For loans that had been permanently modified for at least nine months, 19.6% of the loans were at least two months behind on their payments, more than two and a half times the 7.7% rate first reported.

On loans permanently modified for at least half a year, 10.1% were 60 days or more behind on payments, compared to the 5.9% originally reported.

“We are confident that this data table correctly reflects the performance of the permanent modifications over time. Early program results indicate that the vast majority who receive permanent modifications through HAMP benefit from them and remain in the program,” said Treasury spokesman Mark Paustenbach.

The issue arose after several Wall Street analysts said the numbers Treasury first issued seemed suspiciously low. Treasury then asked Fannie Mae to review the numbers.

Issue with Fannie Mae Stats

Fannie Mae spokesman Brian Faith said his company found “an issue in its implementation of the delinquency statistic methodology.”

“Fannie Mae has now corrected the implementation and validated the revised table through review and verification by an independent third-party consultant contracted by Fannie Mae’s Internal Audit Group,” Faith said.

Treasury on July 20 said that the number of borrowers dropping out the program grew in June at almost twice the pace of those getting a permanent modification. Those figures were not revised.

The dropout rate could signal a rise in foreclosures in the second half of the year at a time when the housing market is still fragile and analysts fear another housing slump could threaten the nascent economic recovery.

About 91,000 borrowers dropped out of the program in June, putting the total number of dropouts at 530,000. At the same time, about 49,000 borrowers received a permanent modification in June, bringing that total to 389,000.

Just over 30% of those who joined the program have received permanent new terms for their loans since the program’s inception in March 2009. However, more than 40% of the roughly 1.3 million borrowers who joined the program have dropped out of it before they get new terms on their loans.

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My Take: People that are due faulty on their loans probably don’t have jobs anymore. Hopefully, these new terms on their loans were done while they were working. Maybe some of these people should have talked to real estate attorney before they got into the program. They might have had a better idea of what they were getting into.

I think if I would’ve been one of these people I would’ve talked to contracts Attorney before signing a new contract on mortgage. Then again, hindsight is always 20/20. That is the way it’s been with many foreclosures. Phoenix realtors are fighting to help people get a house and to keep it. I am sure realtors all over the country doing the same.

Piermont real estate is probably suffering just as much is California or Texas real estate. It is not just the realtors are having problems, homeowners all over the country are having problems. People who own Palisades real estate or Montana real estate or Texas real estate are having problems. They are all in the same boat. It may not be much consolation; most of them will not survive. I would still like to hang onto a small glimmer of hope for them in the economy

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Flags Galore

One flag vendor is proud to tell its customers that it has been an Annin flag dealer for 20 years. Annin & Co. is the oldest and largest flag maker in the world, having begun operations in 1847. In fact, they stock nylon flags that include every state, country or personal interest category available, including custom flags, marine flags, military flags, British flags, and nautical flags, historical flags such as Betsy Ross flags, Irish flags, Italian flags, Christian flags and even POW MIA flags.

Cited: Reality Times

A forecast that was put out recently included some important observations on housing but did not get the attention it deserved by Federal Reserve chairman Ben Bernanke. He spoke to the economic club of New York describing well-known problems standing in the way of economic growth. In particular the double digit unemployment and consumer confidence that is shaky week-by-week at best.

But buried away in his speech he said: Housing in the coming year is going to be a relative bright spot - a helpful driver of national economic growth, rather than the wet blanket it’s been for the past couple of years.

Think about that: Home sales and new home construction, at least according to the Fed, are likely to stimulate the economy in 2010 — enough to generate jobs and help avoid a double-dip recession.

That forecast just happens to track nicely with another that came out last week: Fannie Mae issued its projections for the coming year — and predicted that housing sales will jump by 11 percent — even in the face of a slow recovery for the economy as a whole. Meanwhile, scattered reports from hard-hit local real estate markets suggest that there may be some reasons for guarded optimism.

For example, research firm MDA DataQuick’s latest report on sales and prices in southern California, including the counties of Los Angeles, Riverside, San Diego, Ventura, San Bernadino and Orange, found that October sales were up nearly three percent over September, and that prices are rebounding as well.

October sales in San Bernadino were 11% higher than September. In Ventura, they were up nearly 10%. Median prices for the six counties were up almost 2% for the month, but were still 6.7% below where they had been in October of 2008. Now, as is almost always the case, not all the news is on the up side. New home starts dropped by a surprisingly large, seasonally-adjusted 10.6%, according to the U.S. Commerce Department.

For those in the real estate and construction industry . . . Success in construction and building contracting requires that you deliver accurate construction cost estimates and proposals to your customers, and execute in the field according to your construction cost estimate. This means you need construction estimating software to accomplish the task accurately. But being accurate in your construction estimate is not enough, you must also have enough volume of work, and therefore volume of new proposals to pay your overhead, keep your best employees busy, and to have enough left over to pay yourself. Having good estimating software ensures your payment.

A lot of the decline came in multifamily housing apartment starts — a volatile month by month index — which plummeted by 35%. But there’s no sugar coating here: starts of single family homes dropped by 6.8%, which was enough of a negative to spook Wall Street.  The magic potion for home buyers this week is mortgage rates that are dropping again further into the upper 4% range. Fixed rate 30 year loans have averaged 4.8% and the popular 15 year loans averaged just 4.3% according to the Mortgage Bankers Association. This was thrown into the mix at the end of November, no wonder Wall Street a spooked.

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My Take: I think I can understand why housing would stimulate the economy, it would make more jobs available to people. More jobs means paychecks and that means people can afford to purchase homes. By building more homes, they create jobs. Workers would be needed to install granite kitchen counters, plumbing, electrical, etc.

Of course, more housing in Bethesda would mean that they would need Maryland house cleaning services, which would also create more jobs in the cleaning industry. Of course those services would have to make sure that they knew how to clean granite slabs properly. I am sure that they would know how to do it. One thing is definitely for sure that maid services MD are always needed as they are everywhere.

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Employment Problems

A law firm with New York employment lawyers specializing in enforcing the rights of employees in an effort to preserve a fair, equal and just employment environment represents plaintiffs in all phases of litigation in all forums including New York State and federal courts, arbitration, and before both state and federal administrative agencies. Sometimes when an employee is fired for the wrong reasons and then a LI civil rights lawyer is needed.

Christmas Videos

There is a service that specializes in duplicating, replicating, labeling and packaging CD/DVD media. Companies cannot compete with their prices and speed because they use the most cutting edge technology to produce a massive amount of product at a daily rate. That means this Christmas you can make all the video you want and be able to get a DVD copy made for every relative at a reasonable price. That means you would be able to get the same West Coast DVD duplication that big companies get.

Warmth and Style

Porches are a great place to start when decorating, an antique rocker or primitive chair gives it a nice touch that invites your guest to sit and relax. Next add an old wood crate or keg as an accent piece that doubles as a plant stand. Finish it off with a hand painted welcome slate and be sure to include some primitive décor as well. Then as you step inside the door, a braided rug will help to warm that cold tile foyer floor. Next add a primitive piece of furniture such as a hall console, adorned with a candle or a lamb for rustic lighting and added warmth.

A fall in the economic gauge is a reminder to people that the recession recovery is going to be patchy even though sales of previously owned US homes jumped last month to their highest level in more than 2-1/2 years.

Sales of existing home sales surged a record 10.1% month-over-month in October, the National Association of Realtors (NAR) said November 23, as buyers rushed to take advantage of a popular tax credit for first-time buyers that had been scheduled to end this month.

“Although the data are biased higher from policy measures, we do believe this sharp gain signals pent-up demand and a willingness to purchase homes, which is a good sign for the sustainability of the housing recovery,” said Michelle Meyer, an economist at Barclays Capital in New York.

The housing numbers, which easily topped market expectations, helped drive up stocks, but a decline in the Federal Reserve Bank of Chicago’s index of national economic activity offered a somewhat more sobering picture.

The White House said on Monday it was reviewing options to spur economic activity and job creation, but stressed any action would be taken in the context of the fiscal challenges facing the country.

Sales of existing home sales surged in October to an annual rate of 6.10 million units, the NAR reported, beating market expectations for a 5.70 million-unit pace and above September’s 5.54 million-unit rate. The housing market is slowly mending after a three-year decline, which helped tip the U.S. economy into its worst recession in seven decades.

U.S. stocks snapped a three-day losing streak on the housing data, which eclipsed the report from the Federal Reserve Bank of Chicago showing its National Activity Index, a measure of the economy, slid to -1.08 from -1.01 in September.

The blue chip Dow Jones industrial average index hit a 13-month high before closing up 1.29%. The Chicago Fed’s National Activity Index’s three-month moving average decreased to -0.91 in October from -0.67 in September, declining for the first time in 2009.

According to the Chicago Fed, a move below -0.70 in the three-month moving average following a period of economic expansion indicates an increasing likelihood a recession has begun.

This development will likely feed into fears the economic recovery that started in the third quarter may lose some momentum once government stimulus wanes, given the high unemployment that is crimping consumer spending.

Analysts are cautiously hoping a sustained housing market recovery will help improve the psychology of households, which has been shaken by an unemployment rate of 10.2%, the highest in 26-1/2 years.

EXISTING HOME SALES BOTTOMED

The NAR said its data, which showed broad-based gains in the largest segment of the housing market, was proof that the decline in purchases of existing homes had bottomed.

“Home prices are almost there. We are seeing less of a decline in house values,” said Lawrence Yun, NAR’s chief economist. He said the Realtors group expected strong sales for November, related to the federal tax credit. Analysts, however, cautioned of some slowdown in the sales pace, citing a drop to 12-year lows in demand for home loans during the week ended November 13.

Distressed transactions accounted for 30 percent of sales last month and continued to weigh on home prices. First-time buyers made up a third of sales in October. A separate survey based on actual home sales showed first-time home owners accounted for 47 percent of sales last month.

The national median home price fell 7.1% from October last year, the smallest decline in over a year, to $173,100. Homes in foreclosure typically sell for 15% to 20% less than other homes. Housing is healing and construction activity added to growth in the third quarter for the first time since 2005.

Recovery is being supported by the $8,000 tax credit for first-time buyers, low mortgage rates and falling house prices. The government this month extended the home buyers’ incentive into next year and added a $6,500 credit for home owners buying a new residence. It had been due to expire on November 30.

Purchases by the U.S. Federal Reserve of mortgage-related assets have helped to push home loans down, boosting the affordability of house and aiding the sector’s recovery.

On Sunday, the president of the St. Louis Federal Reserve Bank, James Bullard, said the U.S. central bank should keep its mortgage-related asset purchase program beyond a scheduled expiration in March. The Fed, which cut interest rates to near zero last December, has committed to keep borrowing costs ultra low for an extended period of time.

In October, sales of single-family homes — the biggest segment of the market — rose 9.7%, while condominium and co-ops increased 13.2%. Sales were up in all four regions of the country. Prices rose in the Midwest, which had not seen the same boom as the rest of the country.

Prices declined in the other three regions. The rise in the Midwest was the first gain in any region since November 2008.

According to the NAR, in October, the supply of existing homes for sale fell to 3.5 7 million units from the previous month. At October’s sales pace, the supply equaled seven months of sales, the lowest in 2-1/2 years and down from September’s eight months. To strike a balance between buyers and sellers, analysts say that the inventory of homes on the market must fall below six months’ supply.

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My Take: I really do not know how many homes are available on the market anywhere. This means that I have to take the word of realtors. If you look on the Internet, you will find Grandview NY properties for sale right alongside foreclosures. It is difficult to understand how the sale of a home can have anything to do with recovery from the recession.

With so many foreclosures up for sale, all I see is how many people who cannot afford to pay their mortgage. I do know that mortgage refinancing is increasing. In fact, if you check with property management companies anywhere in the country you will find homes for sale and rent. In fact, I have seen Palisades real estate and Houston real estate advertised for sale.

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Kentucky Mortgage Refinancing

One mortgage refinancing company is a wholesale mortgage broker that shops many of the country’s largest lenders daily, wholesale rate catalog in order to find their clients exceptional pricing. The best of the Louisville mortgage companies offers a variety and competitiveness of a Fortune 100 company while providing “boutique” client service for any Louisville Kentucky mortgage.

Cited: Reality Times

A class-action suit that was filed by a Texas homeowner in Los Angeles recently that alleges three companies conspired to rig housing prices in Texas and Colorado that cost home buyers millions of dollars and provided dangerous loans to homeowners. The lawsuit charges that a national price inflation scheme was developed by KB Home, Countrywide Financial and LandSafe Appraisal Services to defraud consumers.

The suit, filed yesterday in U.S. District Court in Los Angeles, claims the three companies employed a well-planned scheme to control the typically independent appraisal process, jacking up home values, which, in turn, were used to determine the value of other homes sold by KB, affecting thousands of homeowners.

The suit claims KB Home targeted homeowners throughout Texas and Colorado with the scheme. The complaint states between 2006 and 2008 more than 19,000 homes were delivered to the area. At an average price of $167,533 a home, and conservatively assuming an average inflated appraisal of $20,000 per home, that amounts to almost $300 million in inflated contract prices, the suit states.

The homebuilder has a significant presence in Texas with 17 communities in the Austin area, 10 communities in the Dallas area, 16 communities around San Antonio and 24 communities in Houston, the suit states.

This is the fourth lawsuit Hagens Berman Sobol Shapiro (HBSS) has filed against KB Home, Countrywide and LandSafe alleging a national inflation scheme to defraud consumers. The other lawsuits represent homeowners in California, Arizona, Nevada, Florida, North Carolina and South Carolina.

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“The lawsuit representing Texas and Colorado homeowners mirrors the others suits we’ve filed across the country,” said Steve Berman, managing partner at Hagens Berman Sobol Shapiro. “These three created a systemic and tightly controlled process to inflate home values and home sales with no regard for the homeowners or the dangerous loans the companies pushed on unsuspecting purchasers.” According to the complaint, Countrywide funneled all its KB customers’ home appraisals to a single person at LandSafe, an appraisal subsidiary of Countrywide, who in turn would deliver an appraisal value at whatever KB and Countrywide ordered.

The named plaintiff, Alice Stacy, purchased her home in 2006, and initially signed a purchase agreement for $150,484. An initial appraisal submitted to Countrywide-KB mistakenly put the home’s value at $142,000 - this included a $14,000 sales incentive and rolled in the closing costs of the home that totaled $5,516, the suit states.

The appraiser mistakenly thought KB wanted to sell the home at $142,000, a number too low to support the loans KB and Countrywide decided to foist on Stacy. It was also too low to support the sales pitch KB delivered to Stacy, claiming the home’s value was $150,500.

The plaintiff obtained a report of the lower appraisal, contacted KB and demanded a lower contract price, and the company told her the appraisal was a mistake. KB insisted the house was in fact worth $150,500 and they would fix it, the suit states.

A few days later, the same appraiser submitted a revised appraisal showing an increased value on the home, exactly the level that KB promised Stacy.

“With this case, Alice called KB out and pretty much caught them red handed inflating values after the appraiser mistakenly issued the lower report,” said Berman. “The correction and inflation of the value speaks volumes to the practices we’ve alleged in all our complaint, that KB’s demanding specific home values and LandSafe is delivering without question.” The lawsuit lists several claims against the defendants including violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), violation of California unfair competition law and unjust enrichment.

This information could help you if you or someone who used Countrywide or LandSafe to finance a home through KB home in Texas or Colorado. Homeowners that in this scenario are urged to contact the attorneys by visiting www.hbsslaw.com/kbhomes, by e-mailing or calling 206-623-7292 as soon as possible.

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My Take: Wow, I guess people will do just about anything to make more money. Is not fraud a criminal act? How come a lawsuit is the only legal action being taken? It seems someone should be contacting criminal attorneys! I am sure that at least a Monmouth County criminal defense lawyer should be needed by at least one of those three companies. At least they will not be contacting a New Jersey child molestation law firm.

It is only logical that somebody planned this little scheme in that portion should go to jail for fraud at least. It is not like getting Freehold reckless driving attorneys for traffic violations. To me, this is a lot more serious. Do not get me wrong, if you drink and drive you are going to need Red Bank NJ DUI attorney, but when you mess with somebody’s home and livelihood that is a different story.

The average person works too hard to be able to afford a home to have to worry about whether the builder, financer and/or appraiser are trying to screw them over. In fact, it is difficult for me to believe that Bank of America is even involved. However, the financing company is a branch of Bank of America. I have a feeling that Bank of America is going to be doing some housecleaning of their own.

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Cited: Reality Times

“It is the most effective sales program I have ever seen.” Says Hilton head developer David Brown, it is better than good. Read this incredible good news, especially if you’re a homebuilder, builder/developer, developer or lender fending off commercial foreclosures!

Brown needed to sell his five models. He hired an internet marketing company to help him, then challenged them to design a program around a ‘call to action.”

The company, SaleAMP, suggested the developer give new home buyers what resale real estate thrives on: the opportunity to make an offer- but to do it quietly, fast and with internet marketing thrust at full throttle.

Here are the rules set by SaleAmp. They care, because they get paid profits for performance, a novelty in itself.

• Establish a thirty-day offer window
• Limit inventory
• Keep it publicly quiet to the local market to protect the perception of a distress sell
• Do not use traditional media or an auction house
• No MLS
• No absolute pricing
• No buyer’s premium
• No heavy marketing costs and no intense management
• Employ every internet marketing tool available
• Implement at supersonic speed

Hello, “stealth” auction.

“Within 30 days, we had 22 offers, sold the five models, plus two more homes. We had visitors from New York and California who flew in just to see what we were selling. It was unbelievable,” Brown said.

The results: Brown is opening a second development within a few weeks, something he said he would have never done, if the program had not worked so well.

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Amy Garcia, marketing director for The Reserve At Lake Travis in Austin, Texas, and The Boardwalk at St. Charles Bay, Texas, agrees with Brown. She credits SaleAMP’s real estate internet marketing prospect capture and delivery systems with a forty percent increase in sales of lots and cottages.

“If we get the right offers, we accept the offers. If the offers come in too low we call the buyers, explain that the offers for the properties were too low, and encourage them to raise their bid. If they choose not to, we offer them lower priced lots. We keep two or three units in the offer inventory all the time. It costs us nothing, is totally flexible, easy to control, and requires no management.” Garcia says.

Internet auctions for real estate are nothing new, of course. What seems to be driving sales while protecting property pricing integrity and brand is the stealth approach to online auctions?

This approach gives developers with distressed or pending foreclosure inventory a fast, low cost way to test the market and generate sales without publicly conceding or implying desperation. In less than two months developers could have enough sales to support a request for a forbearance agreement. Lender with foreclosed assets may also move in this direction as a fast way to determine pricing and disposition alternatives. Traditional auction houses already have internet auction capability. So do major real estate franchises. It would be reasonable to assume that online real estate auctions will continue to grow and to become fairly common place in the days ahead.

But Paul Kirchoff, SaleAMP’s Founder and CEO, a former Dell Computer marketing guru, says that the key to any marketing program, whether it be an auction or not, is not the program or event. It is the traffic driven to it.

“It is exciting to design innovative programs like the stealth auction that work, for sure, but the real key, assuming the product is saleable and priced right, is getting traffic to the event. Without it, your auction landing page is nothing but another billboard on a back road to nowhere,” Kirchoff said.

For sure, SaleAMP is not the only internet marketing service out there.

The following key word Google searches were conducted on October 31, 2009. The results were surprising.

• Online real estate auction – 42,800,000 pages
• Online shopping center auction – 5,930,000 pages
• Orlando shopping center auction – 170,000 pages

The bottom line is that there are now real auction choices developers and lenders. They can conduct traditional, online or a combination of both.

Brown believes the stealth auction, or as he calls it, the ‘best offer bid’ will be the dominant new homes marketing strategy in 2010 and beyond.

He could be right or he could already be losing ground to yet unknown technology now being designed somewhere. Who knows?

Of those homeowners who are looking to buy, 85% of them shop on the Internet first. In fact, few people know they are even looking to buy. Another thing, most have not contacted her real estate agent and do not plan to. And stealth sellers are doing more than just drawing traffic, they are selling homes!

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My Take: The only problem I can see with this is the integrity of the seller. If the seller has no integrity, you do not know what you are really buying or the Internet. If you’re buying a house or property as an investment, you will probably have the money to fly to the location to see the house or property. There is not much you can tell from the picture of a home with custom wood entry doors.

Those exterior wood doors could be hiding a disaster area and you would not know it until you went to move it. However, you would definitely be surprised if you found bifold interior doors. I think it is a great idea to sell property online. But they need to have some kind of safeguards or regulations to ensure that people do not get scammed or cheated. Otherwise, people are going to purchase something they think is good, only have to put out more money to repair it.

If it is an investment, the extra cost could cause them to need a commercial loan workout just to keep the investment going. I am sure that nobody would want to have to contact commercial loan specialists following an Internet scam like that.

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