EHLP helps employment-challenged homeowners

For many homeowners, loans from the new “The Emergency Homeowners’ Loan Program (EHLP)” will amount to a grant they won’t have to pay back. Unfortunately, there’s only so much EHLP to go around and you don't have much time to apply.

by Broderick Perkins
© 2011 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - More struggling homeowners are getting a small slice of the federal bailout pie, served up as a special no-interest loan of up to $50,000.

For many homeowners, loans from the new “The Emergency Homeowners’ Loan Program (EHLP)” will amount to a grant they won’t have to pay back.

Unfortunately, there’s only so much EHLP to go around.

Demand is expected to be so high, even if you are a qualified homeowner you will have to win a lottery to get one of the loans.

The $1 billion federal program is expected to help an estimated 30,000 distressed homeowners facing foreclosure because of unemployment or reduced employment, provided you can also demonstrate the loan will help you resume mortgage payments down the road.

The U.S. Department of Housing and Urban Development recently announced EHLP as the latest infusion from the “Dodd-Frank Wall Street Reform and Consumer Protection Act.”

Get the full scoop here: "EHLP Helps Distressed Homeowners"

• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!" now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

Other DeadlineNews Group Feeds are available from DeadlineNews.Com.

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

Wall Street, not Fannie, Freddie to blame for housing, economic meltdown

Research from the Center for Responsible Lending (CRL) "Wall Street, Not Fannie Mae & Freddie Mac, Created & Led the Toxic Mortgage Market," says toxic subprime loans started the foreclosure crisis and the disaster spread to other mortgages approved without properly qualifying borrowers.

by Broderick Perkins
© 2011 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - A recent study puts much of the blame for the mortgage meltdown squarely at the feet of Wall Street, rather than the federal government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

Research from the Center for Responsible Lending (CRL) "Wall Street, Not Fannie Mae & Freddie Mac, Created & Led the Toxic Mortgage Market," says toxic subprime loans started the foreclosure crisis and the disaster spread to other mortgages approved without properly qualifying borrowers.

"The facts show that Fannie Mae and Freddie Mac were followers, not leaders, in the events leading up to today's foreclosure epidemic," the report says.

"During the 2000s, subprime mortgage lending grew rapidly as Wall Street seized on the opportunity to invest in riskier, higher-interest mortgages. 'Securitization' ... made it possible for loosely-regulated lenders to make loans and then immediately sell them to private firms that created mortgage-backed securities."

CRL's report says:

• GSEs were prohibited from buying subprime mortgages because the loans were outside the prescribed GSE guidelines. Subprime mortgage-backed securities were created in the private sector by Wall Street firms.

• GSEs did purchase subprime mortgage-backed securities as investments, but not in a volume that matched Wall Street purchases.

• GSEs eventually guaranteed and created investments with "Alt-A" loans which went to relatively wealthier borrowers with higher credit scores. The loans did have risky features, such as limited documentation. These investments are primarily why the GSEs were placed into conservatorship. GSEs investments were generally less risky than Wall Street's, but the private market and the GSEs share responsibility for supporting the loans.

• Mortgage loans purchased by Fannie Mae and Freddie Mac - including loans to lower-income borrowers - are performing better than those on the private market. As of June 2010, 13.35 percent of GSE loans to borrowers with credit scores under 660 were 90 or more days delinquent or in foreclosure, compared to 28 percent for subprime loans, according to Mortgage Bankers Association statistics.

• Affordable housing loans weren't the problem. GSEs' losses were generated by risky loans, primarily Alt-A loans that generally went to borrowers with higher incomes.

• GSEs' support of the Alt-A market, in a drive for profit and market share, actually weakened their performance on meeting affordable housing goals.

• The vast majority of subprime loans, 94 percent of them, were made by lenders who were not subject to the Community Reinvestment Act (CRA). The CRA covers banks and thrifts, which didn't make many subprime loans.

• Abusive loan terms were far more responsible for the foreclosure crisis than risky borrowers.

"Recent studies have shown that, comparing borrowers of similar risk characteristics, loans with sensible terms had significantly lower foreclosure rates than explosive subprime loans made by non-bank lenders," CRL's report says.

• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!" now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

Other DeadlineNews Group Feeds are available from DeadlineNews.Com.

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

Predicted home price 'double dip' arrives, price bottom delayed until 2012

Read: Batman busted, beatdown, body slammed

And it comes with the lowest interest rates of the year, but tight credit and slow employment gains aren't allowing buyers to cash in on renewed affordability.

by Broderick Perkins
© 2010 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - The long anticipated double-dip in home prices has arrived.

Also see: Less filling 'double-dip' doom looms

And it comes with the lowest interest rates of the year, but tight credit and slow employment gains aren't allowing buyers to cash in on renewed affordability.

U.S. home values fell 3 percent from the last quarter 2010 to the first quarter this year, posting the largest quarter-over-quarter decline since the fourth quarter of 2008, when many thought the housing market had bottomed, according to the Zillow Home Value Index.

Now, says Zillow, a new home price bottom isn't likely until 2012, according to Zillow's revised forecast.

US Zillow Home Value Index

US Home Values - Interactive chart

Zillow said the first quarter home value decline matches the worst of the housing recession thus far. Negative equity reached a new high -- 28.4 percent of all single-family homeowners suffer mortgages that are underwater (the mortgage is greater than they home is worth), up from 27 percent in fourth quarter of 2010.

Zillow said home values are down 8.2 percent since the first quarter last year and down 29.5 percent since they peaked in June 2006.

The report is similar to Clear Capital's findings which found home prices dropped 4.9 percent quarter-to-quarter, slid 5 percent year-over-year and now stand at 42 percent below the market peak in mid-2006.

Clear Capital also reported home prices are 0.7 percent below the prior low set in March 2009.

A growing number of distressed properties flooding the market are contributing to the double dip in home prices.

Zillow said foreclosures rose throughout the first quarter as banks unfroze moratoriums and allowed foreclosures to resume. Foreclosures had fallen in late 2010, due to the slew of moratoriums brought about by the "robo-signing" controversy.

RealtyTrac reported foreclosure filings on 239,795 U.S. properties in March this year, a 7 percent increase from the previous month. The figure was down from 367,056 a year ago March, RealtyTrac's highest monthly foreclosure total since 2005.

Contributing to affordability that comes with lower home prices, interest rates last week fell to an average 4.71 percent for 30-year, conforming, fixed-rate mortgages (FRMs), matching the year's lowest rate originally set back on Jan. 13, according to Freddie Mac's weekly Primary Mortgage Market Survey.

Unfortunately, credit remains tight and employment unstable. Unemployment rose to 9 percent in April, after falling from 9.4 percent in December 2010 to 8.8 percent in March this year.

"Home value declines are currently equal to those we experienced during the darkest days of the housing recession. With accelerating declines during the first quarter, it is unreasonable to expect home values to return to stability by the end of 2011," said Zillow Chief Economist Dr. Stan Humphries.

"We did expect substantial payback from the homebuyer tax credits, which buoyed the housing market last year, but underlying demand post-tax credit, as well as rising foreclosures and high negative equity rates, make it almost certain that we won't see a bottom in home values until 2012 or later," Humphries said.

• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!" now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

Other DeadlineNews Group Feeds are available from DeadlineNews.Com.

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

State, local housing programs to the rescue

How to drive a hard auto loan bargain

State and local housing programs offer grants and low- and no-interest loans, typically to first-time home buyers with low- to middle-incomes. Check what your state or local jurisdiction has to offer.

by Broderick Perkins
© 2010 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - With tight fisted lenders more often seeking hefty down payments from those seeking to buy a home, more state agencies are pitching in to help qualified borrowers who are cash poor but income rich.

The National Association of Independent Housing Professionals says the number of down payment assistance programs has grown by as much as 5 percent in the last six months.

The programs offer grants and low- and no-interest loans, typically to first-time home buyers with low- to middle-incomes.

Some programs also target teachers, police officers, medical workers and other types of workers crucial to a community's well-being.

The down payment grants are a boon, particularly in high cost areas where median priced homes hit the half million dollar mark and 20 percent down means coming up with $100,000 in hard cash.

Along with down payment assistance, the programs often use preferred lenders who make the mortgage for as much as 1 percent below market rates.

Funded by state and federal agencies, the programs must produce a solid record of home ownerships that don't falter even in hard times.

That means consumers who qualify for the programs must first get counseled on home ownership -- everything from the mortgage application, credit and budgeting to being zealous about preventive maintenance and upkeep.

The counseling may just be the best part of the deal, according to findings recently released in a "National Foreclosure Mitigation Counseling (NFMC) Program Evaluation" generated by the Urban Institute based on data from 960,000 NeighborWorks America (NW) clients counseled in 2008 and 2009 and reported to NW America in January 2010.

NW-assisted home owners facing foreclosure were 1.7 times more likely to save their homes than others who didn’t get the counseling.

Even when a home owner was in the foreclosure pipeline, 55 percent of them with NW-counseling escaped foreclosure within 12 months compared to only 38 percent of home owners in foreclosure working without NW counseling.

See what your state or local government has to offer through the U.S. Department of Housing and Urban Development's (HUD)Local Home Buying Programs web page and follow local and state housing program news.

Also ask your mortgage lender or broker, real estate agents, religious, social and community organizations and non-profit agencies for referrals to local and state programs.

• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!" now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

Other DeadlineNews Group Feeds are available from DeadlineNews.Com.

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

CAI, CPCF: Don't ban private transfer fees

Read: "Feds plan ban
on private transfer fees
on home sales"

Two groups announce support of a fee opposed by federal regulators and real estate industry group. Also see: "Coalition, Congress joins Fed effort to ban private transfer fees on home sales"

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - CAI, CPCF: Don't ban private transfer fees

Banning private transfer fees on home sales could dam up the sale of some 11 to 12 million properties, according to a major homeowner association group and a new coalition supporting the fees.

That view is in direct opposition to other homeowner advocates and federal regulatory efforts that suggest the fees, attached to new homes, are a burden to both sellers and the housing market.

The Community Associations Institute, representing the interests of homeowner and community associations -- typically condo, townhome and other self-governed communities -- say private transfer fees (PTFs) are a boon to community associations' reserve accounts and community improvement projects.

They say as many as 11 million homeowners could find it difficult to sell their homes if the Feds move forward with plans to ban the fees.

According to the new Coalition to Stop Wall Street Home Resale Fees, builders and developers working with Freehold Capital Partners, sometimes attach to a new home sale deed something called a "private transfer fee" or "property transfer fee" (not to be confused with property transfer taxes).

The charge, about 1 percent of the selling price, typically paid by the seller, bounces back to the developer each time the property changes hands -- for 99 years.

The coalition also says disclosures about the tax aren't always clear.

The Federal Housing Finance Agency (FHFA), concerned that the fees are self-serving and used to fund private continuous streams of income, recently proposed a rule that would restrict federal housing agencies from purchasing mortgages on houses sold with the fees.

The FHFA overseas Fannie Mae, Freddie Mac and Federal Home Loan Banks, each of which plays a key role in the housing finance system.

The coalition says it's not just the exorbitant cost. The developer distributes profits to Freehold, which in turn is attempting to bundle the fees into securities, and sell them on Wall Street. Another deal, not unlike subprime securities, designed to allow investors to cash in on future earnings.

CAI says the fees have been used by community associations for decades to help fund reserve accounts or community improvement projects.

"We agree that private transfer fees should get regulatory scrutiny," said CAI CEO Thomas M. Skiba.

"The problem is that the FHFA regulation would apply to any and all deed-based fees. If implemented as drafted, it would be catastrophic," said Skiba.

Nearly half (49 percent) of the 1,252 communities responding to a CAI survey in September have deed-based fees. Extrapolating from that data, CAI estimates that as many as 11 million homes nationally are located in communities that rely on deed-based transfer fees.

Under the FHFA proposal, these homes would no longer be able to qualify for mortgages backed by Fannie Mae, Freddie Mac or any federal home loan bank, which account for up to 90 percent of all residential mortgages.

In addition, most community associations would be unable to comply with the proposed rule. That's because changing deed restrictions typically requires approval of two-thirds or more of all homeowners, which is difficult to achieve.

CAI says the transfer fees charged by community associations are nominal, ranging from a fixed fee (averaging $750) to a percentage of the sales price (averaging 0.25 percent). Also, such funds have allowed financially strapped community associations keep monthly assessments low.

Another new coalition, the Coalition to Preserve Community Funding (CPCF) says the fees, attached to some 12 million homes, aren't new but have been used more since the housing crisis to give developers a long-term revenue stream to help resolve negative equity, pay down development loans and restart stalled projects.

"There is nothing inherently inappropriate or anti-consumer about private transfer fees, though they have been cast in that light by an aggressive misinformation campaign by the National Association of Realtors and the American Land Title Association (members of the Coalition to Stop Wall Street Home Resale Fees)," said Hilary Richards, a spokeswoman for the CPCF.

Richards said much of the current debate is about proper disclosures -- buyers may not always be fully aware the transfer fee will be due at the time of a future sale. Current legislation, if signed into to law, would change that.

U.S. Rep. Phil Gingrey (R-GA), recently introduced "The Homebuyer Enhanced Fee Disclosure Act of 2010 (HEFDA)" which would require adequate disclosures and require that a notice of the fee be filed with the county recorder.

A few years ago, California adopted a similar standard under California Civil Code 1098.5.

"The proposed legislation provides important consumer protections nationwide by ensuring uniform transparency and disclosure of private transfer fees in all relevant real estate transactions, while preserving a valuable mechanism for spreading infrastructure costs, reducing negative equity, and making home ownership more affordable," says Richards.

"Further, the required disclosures help professionals, such as title agents and Realtors, to easily identify the fee through ordinary diligence and allows homebuyers and sellers, by being better informed, to factor the PTFs into their negotiations for a fair sales price," she added.


• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!" now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

Other DeadlineNews Group Feeds are available from DeadlineNews.Com.

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

Unsupervised risky business, greedy homebuyers tanked the housing market

Lot's of blame to spread around for the housing crash: insufficient regulatory oversight in D.C., excessive risk taking on Wall Street and greedy homebuyers.

by Broderick Perkins
© 2010 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - Insufficient regulatory oversight leading to excessive risk taking and homebuyers biting off more than they could chew, spelled doom for the housing market, according to a Harvard University study from the school's Joint Center for Housing Studies.

"Understanding The Boom And Bust In Nonprime Mortgage Lending" says originating risky mortgages was "inextricably linked to demand on the secondary capital markets for mortgages with higher yields than prime mortgages, as well as the multiplication and magnification of this risk through actions taken in the capital markets."

"The combination of a glut of global liquidity, low interest rates, high leverage, and regulatory laxity in the context of initially tight and then overvalued housing markets triggered staggering risk taking," says Eric S. Belsky, managing director of the Joint Center and one of the study's authors.

"Capital markets supplied credit through Wall Street in large volumes for risky loans to risky borrowers and then multiplied these risks by issuing derivatives that exposed investors to risks in amounts much larger than the face amount of all the loans," he added.

Homebuyers didn't help.

Focusing on the monthly mortgage payment rather than the true value of the home, homebuyers used low mortgage rates to bid high in tight housing markets, the report said.

Once house price appreciation took off, the report suggests, backward looking price expectations led both equity grabbing homebuyers and salivating mortgage investors to bank on rapidly rising prices, further fueling the bubble.

Risky loans, the sheer volume of them and the share of them made to speculators and those who couldn't really afford a home, followed by bundling the mortgages into securities caused much damage to the US economy and global financial markets.

Regulatory lapses were many and included the failure to closely supervise nonbank financial intermediaries, the failure to prevent unprecedented risk layering in mortgage underwriting, the failure to adequately supervise the credit ratings agencies, the failure to impose greater transparency in the capital markets and the failure to require higher reserves against risks, the report said.

"One of the biggest problems s that the whole system created the illusion that risks were being adequately managed. This is because rating agencies assigned AAA-ratings to large portions of securities backed by subprime and Alt-A loan pools and synthetic derivatives based on them," said report co-author Nela Richardson.

Securities were over collateralized - the process of issuing a smaller face amount of securities than the total face value of loans in the pools - to hold aside reserves against losses.

"The fundamental underpinnings of the models used to rate these securities were deeply flawed and the capacity of third-party insurers and credit default swaps to make good on claims was inadequate," the report said.

The report also discovered that while high price loans as reported under the Home Mortgage Disclosure Act were disproportionately concentrated in low-income, predominantly minority census tracts, the vast majority of high-priced loans were issued to homeowners outside these communities.

It also finds that loans made by financial institutions regulated under the Community Reinvestment Act in areas where they were assessed for meeting the credit needs of low and moderate income communities constituted less than five percent of all high-price loans at the peak in 2005.

"Looking forward, it is encouraging that actions have been taken within the past two years intended to address many of the regulatory problems we found," commented Belsky.

So-called "Wall Street Reform," the new Restoring American Financial Stability (RAFS) Act of 2010" is heavily laden with strong mortgage regulations.

Said Belsky “But many of the details are left for regulators to work out and how they do so will determine the balance achieved between consumer protection and management of systemic risk on the one hand and financial innovation, efficiencies, and consumer access on the other."

The report says the bust could have been worse.

"The housing market would have struggled even more to recover, absent federal guarantees of mortgages and mortgage-backed securities, and both the cost and availability of mortgage credit moving forward would be negatively affected by any curtailment in the scope of the guarantees," the report says.

However, the report notes the importance of government charging for these guarantees rather than allowing unfunded implicit guarantees of the kind Fannie Mae and Freddie Mac offered.

• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!" now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

Other DeadlineNews Group Feeds are available from DeadlineNews.Com.

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

Seven selling sillies that sap home sales

Mixing the $10 'BP Martini'

Some of the home sales depression comes from home sellers who still just don't get it and make mistakes that tank the deal.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - At last count, nationwide, new home sales were down more than 12 percent and resale home sales down even more -- 27 percent.

In part, it's the economy. The rate of unemployment nationwide remains at just under 10 percent and some locales are still in double digits.

In the Gulf Coast area, blame the oil disaster for washing away more sales.

And, unless your state
is one of the few with a home buying tax credit, the end of the federal tax credit also took a bite out of home sales.

Some of the home sale depression, however, comes from home sellers
who still just don't get it and make mistakes that tank the deal.

To find help for sellers we went to Silicon Valley where, even as home sales dropped nearly 9 percent in August, home prices are up nearly 12 percent a year ago.

Some sellers, apparently, are making all the right moves.

We sought help from Julie Larsen Wyss, a hard core Silicon Valley Intero Real Estate Services broker associate in San Jose, CA.

Wyss, also a broker associate at North Star Mortgage Associates and short sale specialist offered these mistakes sellers ought not make if they want to move their home off the list of homes that languish unsold.

• Pricing too high. A high listing price will cause some buyers to lose interest sight-unseen. It may also lead other buyers to expect more than what you have to offer. Overpriced homes tend to take an unusually long time to sell, ultimately selling at a lower price.

"Every seller obviously wants to get the most money for his product. Ironically, the best way to do this is NOT to list your home at an excessively high price," Wyss advises.

• Mistaking refinance appraisals for the market value. Lenders often estimate the value of homes at a higher level than it's actually worth to encourage refinancing. Ask your real estate agent for the most recent information regarding property sales (similar to yours) in your community.

"This will give you an up to date and factually accurate estimate of your property value," she said.

• Forgetting to "showcase your home." When selling your home, make it look as pleasant and move-in-ready as possible. Make necessary repairs. Clean. De-clutter.

Says Wyss, "A poorly kept home in need of repairs will surely lower the selling price and will even turn away some potential buyers. In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread."

• Using the "hard sell" while showing. "Don't try haggling or forcefully selling. Allow prospective buyers to comfortably examine your property," Wyss said.

Buying a house is always an emotional and difficult decision. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.

• Trying to sell to "looky-loos." A prospective buyer who shows up because they saw a for sale sign likely isn't interested in your property. Buyers who don't come through a real estate agent, typically are six to nine months away from buying. They just want to see what's available. Chances are, they still have to seller their house, haven't been to a lender and may not be able to afford a home yet.

"Your real estate agent can distinguish real potential buyers from lookers because they will take the time to determine a prospective buyer's savings, credit rating, and purchasing power. If your agent fails to do so, you should investigate on your own, avoid wasting time investigating and questioning on your own, and get a new real estate agent," Wyss said.

• Being ignorant of your rights and responsibilities. Know the details of the sales contract. They are legally binding documents that can be complex and confusing. Know your responsibilities before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws affect your transaction? There's much more to know.

Wyss said, "Not knowing can end up costing you a considerable amount of money."

• Signing a listing contract with no escape clause. Hopefully you will choose the best real estate agent. However, stuff happens. Perhaps you misjudged your agent. Perhaps the agent has other priorities. In any case, you should have the right to fire your agent. You are the boss. He or she is your employee. You should also have the right to select another agent. Many real estate companies will simply replace one agent with another one from the same company, without consulting you.

"Take control before signing a real estate listing contract," Wyss said.

• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!" now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

Other DeadlineNews Group Feeds are available from DeadlineNews.Com.

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

Special homeowner relief extended to more 'hardest hit' states

More qualified homeowners struggling with unemployment or under-employment in additional states have been targeted by two expanded foreclosure-prevention efforts from the Obama administration.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - More qualified homeowners struggling with unemployment or under-employment in additional states have been targeted by two expanded foreclosure-prevention efforts from the Obama administration.

First, from the U.S. Department of the Treasury's Housing Finance Agency (HFA) Innovation Fund for the Hardest Hit Housing Markets (the Hardest Hit Fund), comes $2 billion in additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment.

Earlier this year the Hardest Hit Fund launched with $1.5 billion going to only five states Arizona, California, Florida, Michigan and Nevada, where home values have fallen more than 20 percent from peak 2006 and 2007 markets.

The money was earmarked for state housing agency programs that reduce so-called "preventable" foreclosures faced by unemployed home owners, so-called "underwater" home owners and home owners struggling with second mortgages.

The extra $2 billion is earmarked for states that have experienced an unemployment rate at or above the national average over the past 12 months -- Alabama, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee and Washington, D.C.

Each state must submit for approval, proposals for targeted unemployment programs that provide temporary assistance to eligible homeowners to help them pay their mortgage while they seek re-employment, additional employment or undertake job training. The original states can add the new money to previously approved programs or design new ones.

"Keeping unemployed people in their homes is only a good idea if there is hope of obtaining a job near that home. The last thing many of these well-intentioned programs should do is to restrict the mobility of labor," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.

"Additional assistance for people who are in need of relocating to another state or area for a job, who are currently underwater in their home value or in making their mortgage payment, is something that should be given priority as well," she added.

HUD 'bridge' loans sweeten pot

Building on the Hardest Hit Fund, the U.S. Department of Housing and Urban Development (HUD) will soon launch, for the same 17 states and the District of Columbia, a $1 billion Emergency Homeowners Loan Program specifically for emergency zero-interest "bridge" loans to help struggling homeowners make house payments for up to two years.

The loans are earmarked for qualified homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition.

Administered by state and non-profit entities, the emergency loan program will offer declining balance, deferred payment loans for up to $50,000 to assist eligible borrowers in making house payments, including property taxes and homeowners insurance for up to 24 months. The loans will be non-recourse, zero-interest, subordinate loans, that help borrowers "bridge" their financial troubles until they find work.

Eligibility requirements will include:

• The borrower must be at least three months behind on his payment but have a "reasonable likelihood" of resuming his regular monthly payments and related housing expenses within two years.

• The borrower must demonstrate a good payment record prior to the event that caused the reduced income.

• The property must be the borrower's primary residence. Vacation homes and investment properties don't qualify.

HUD promised more details in the coming weeks when the programs roll out.

• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!" now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Under the DeadlineNews Group umbrella:

Perkins is managing editor of HomeAway.com's Gulf Coast Response Center.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Real Estate Examiner
• National Consumer News Examiner
• National Offbeat News Examiner

Other DeadlineNews Group Feeds are available from DeadlineNews.Com.

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

Q&A with Karl Lee, President Santa Clara County Association of Realtors

Karl Lee, President SCCAOR

Silicon Valley's housing market is well on its way up, but it still has a long way to go before home values return to peak prices reached back in 2007. The market's transition prompted us to contact area real estate leaders, including Karl Lee, president of SCCAOR, to gain some market insight for homebuyers and sellers alike.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Silicon Valley's housing market is well on its way up, but it still has a long way to go before home values return to peak prices reached back in 2007.

The market's transition prompted us to contact area real estate leaders to gain some market insight for homebuyers and sellers alike.

We recently sat down in a question-and-answer session with Karl Lee, president of the Santa Clara County Association of Realtors (SCCAOR) and a Santa Clara County native.

Lee also serves on San Jose's General Plan Task Force and the San Jose Foreclosure Prevention Task Force and is broker/owner of the family owned Realty World Results Pros in Milpitas.

Lee also has 13 years of experience in corporate banking finance and enjoys softball, volleyball, skiing, hiking and traveling.

Q: How would you describe today's housing market? Is it a buyer's market or a seller's market?

A: Santa Clara County has become a seller's market in 2010. Multiple offer situations have been common. Every month this year has seen 25 to 30 percent increases in closed sales volume compared to the same months last year. We've also seen double digit average sales price increases.

Q: What do today's housing market conditions mean for buyers and for sellers? How can they obtain the best deal, selling or buying in today's market?

A: The current Santa Clara County real estate market has ample opportunities, but buyers and sellers need to be patient and prepare for the unexpected. Closing a contract is more complicated than ever. We have also experienced delays due to the new federally mandated Good Faith Estimate guidelines.

To be a successful seller, you must make strong pricing and presentation efforts to offer the most attractive home on the market. The strategy reveals to buyers that your home is a better value than other homes. It also allows buyers to visualize how the home fits his or her lifestyle.

Buyers in today's market need to understand the competitive environment they face. Buyers need to carefully evaluate homes and contractual terms, particularly when it comes to short sales and bank-owned homes in poor condition or requiring repairs. Buyers must convince sellers that they have most competitive offer and the best chance to close the transaction.

Q: What do you tell buyers who may be waiting for home prices to fall further?

A: I don't sense that prices will fall significantly in our market. However, if prices do fall some, increasing financing costs will likely offset small savings from falling prices.

Q: What do you tell sellers waiting for home prices to rise?

A: Homeowners should base their selling decision on their life goals and lifestyles, not on a projected direction for the housing market. It is impossible to out-plan the market.

Q: Distressed properties account for a larger percentage of homes for sale than normal. These properties can be a good deal, price-wise, for home buyers looking for a bargain. They can also come with hidden problems. How do you advise buyers considering distressed properties?

A: Short sales represent approximately 42 percent of the market, while foreclosed, bank-owned homes represent a much smaller share, approximately 7.72 percent.

My recommendation for buyers is to focus on the best home for their goals and needs. The market perception that distressed properties are bargains has a created a frenzy for these homes and that's created more competition for them, more so than even for traditional listings.

Bank owned sales, short sales and traditional sales each have their own unique set of dynamics and complications which buyers need to consider and adjust to. When it comes to a distressed property, planning for hidden repair costs and legal issues is key.

Q: What's your advice for someone who has an "underwater" mortgage that's larger than the home is worth, but who is not having a problem making payments?

A: History has shown us that our market will work its way out of the current economic cycle. All indications are that we have already hit the bottom. If your lifestyle and goals make sense with your current home, if you can afford to make your payments, you should continue to make your payments.

Q: What's your advice for a homeowner with an "underwater" mortgage but is struggling to make payments or is soon to face a mortgage rate reset or other condition that could cause problems?

A: The first step is to consult appropriate experts including an attorney, a tax expert, a counselor who is certified by the U.S. Department of Housing and Urban Development (HUD) and a realtor. Each homeowner and each loan agreement have unique legal and tax implications.

A great resource for distressed homeowners in Santa Clara County is ForeclosureHelpSCC.org, created by the San Jose Foreclosure Prevention Task Force, a coalition of the City of San Jose, the Santa Clara County Association of Realtors, the Silicon Valley chapter of the California Association of Mortgage Practitioners, a number of HUD certified counselors and other non-profit agencies.

If a short sale is a viable option, experienced realtors with short sale home selling expertise can manage the marketing and contract negotiations.

Q: Given the market has put downward pressure are the value of homes since the peak of the boom, how can homeowners boost home value or shore up and retain the value of their homes?

A: Maintain upkeep, perform repairs, clean up, remove clutter. A home that shines always brings the most value. Home improvements typically don't provide an equal return on the investment, but their true value comes from living and using the improvements.

Paying down and lowering the principal more than what's required by the loan agreement is a good idea, depending upon your lifestyle and financial goals. Of course, the more you pay down the principal, the less mortgage interest you can deduct.

• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

Rate of homeownership nears 11-year low

I survived Gulf Oil disaster

In the second quarter of 2010, owner-occupied households represented 66.9 percent of all households, a number not seen since the fourth quarter of 1999. The rate was down from 67.1 percent in the first quarter of 2010 and down from 67.4 percent in the second quarter a year ago.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - Revealing the lingering effects of the housing market's hangover, the level of homeownership in the second quarter this year sank to its lowest rate in nearly 11 years.

In the second quarter of 2010, owner-occupied households represented 66.9 percent of all households, a number not seen since the fourth quarter of 1999. The rate was down from 67.1 percent in the first quarter of 2010 and down from 67.4 percent in the second quarter a year ago, according to the Commerce Department.

Vacancy rates also suffered déjà vu.

The 2.5 percent homeowner vacancy rate was 0.1 percentage point lower than last quarter, and identical to the same period a year ago. The number reflects the share of homes that were unoccupied and for sale.

Likewise, rental vacancies stood at 10.6 percent, unchanged from both the first quarter and this time last year and the highest rate since the Commerce Department started keeping track in 1965.

Despite a nationwide housing fire sale and mortgage rates that have been on record-breaking slide, the outlook for a homeownership rate reversal remains bleak for the near future.

Americans just aren't in a buying mood, according to the Conference Board's latest consumer confidence survey. The New York-based research group's index of consumer sentiment fell to 50.4 in July, the lowest level in five months.

Other second quarter findings from the Commerce Department:

• Rental vacancies were highest in the South (13.2 percent), while rates were lower in the Northeast (8.3 percent) and West (8.0 percent).

• Approximately 86 percent of the nation's housing units were occupied, 14.4 percent were vacant. Owner-occupied housing units comprised 57.3 percent of all housing, while renter-occupied housing accounted for 28.3 percent.

• Homeownership rates were highest for householders 65 years old and up (80.4 percent) and lowest for the under-35 crowd (39.0 percent). The rates for householders ages 35-44, 45-54 and 55-64 were lower than their respective rates a year ago, while those householders younger than 35 and those 65 years and over showed no significant change from their corresponding rates in the second quarter of 2009.

Crystal Chow is a DeadlineNews Group associate editor who contributed to this article.

• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

California gets $700 million slice of special $1.5 billion homeowner bailout pie

Spontaneous orgasms real

Earlier this year, President Obama announced a $1.5 billion infusion for state housing agencies in Arizona, California, Florida, Michigan and Nevada. The Golden State scored $700 million of it.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - California struck gold, receiving the biggest chunk of a special $1.5 billion federal fund pie for programs that target struggling homeowners in states hardest hit by the housing crash.

California Housing Finance Agency (CalHFA) recently announced the fat $700 million slice would go toward four different programs ultimately assisting 40,000 homeowners.

Earlier this year President Obama announced the $1.5 billion infusion for state housing agencies in Arizona, California, Florida, Michigan and Nevada, where home values have fallen more than 20 percent from peak 2006 and 2007 markets.

The $1.5 billion will be withdrawn from funds set aside for housing under the Emergency Economic Stabilization Act of 2008 (EESA).

The money is earmarked for state agency programs that reduce so-called "preventable" foreclosures faced by unemployed home owners, so-called "underwater" home owners and home owners struggling with second mortgages.

In addition to California's $699.6 million stake, Florida gets $418 million; Michigan, $154.5 million, Arizona, $125.1 million and Nevada, $102.8 million.

"We are very grateful that the Obama Administration recognizes that California and several other states have been severely impacted by the twin problems of unemployment and home price depreciation," said Steven Spears, executive director of CalHFA

The details aren't finalized and homeowners, who needn't be CalHFA loan holders, must otherwise quality before approval. CalHFA's federally approved "Keep Your Home" programs are:

• Mortgage payment assistance for jobless. Up to six months of mortgage payment assistance, with a $1,500 cap for homeowners who have lost their jobs.

• Mortgage payment assistance for past-due homeowners. Up to $15,000 each, with a mandated match from the mortgage lender, the help those with past-due payments.

• Mortgage principal reduction. Underwater borrowers, who owe significantly more on their loans than their homes are worth, get a mortgage principal reduction to "market levels."

• Transition assistance. For those who can't afford to stay in their homes and are completing a short sale or handing over the deed in lieu of a foreclosure, financial assistance for the transition will be provided.

For more details contact CalHFA's Keep Your Home program online or by phone (916) 373-2585.


• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!

California home prices golden again, sales rusty

Since the home price trough in February 2009, single-family, detached home prices in California have risen a golden 32.3 percent from $245,230 to $324,430, as of May 10, according to the California Association of Realtors.

by Broderick Perkins
© 2010 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime


Deadline Newsroom - California's home prices are literally skyrocketing again, soaring in some of the Golden States' largest metro areas by 30 percent to more than 50 percent in little more than a year.

The price surge may be an indication of California's readiness to take the lead again in the nation's housing recovery -- if it can only get its sales engine going.

Fence-sitters and those looking to go West and put down stakes?

Take note.

California's home prices have been known to take off like wildfires, burning buyers who waited for the bottom only to find it long gone and themselves priced out of the market -- again.

California led the nation as one of the states hardest hit by foreclosures and did not fully hit bottom until February last year, according to the California Association of Realtors (CAR).

However, since that home price trough in February 2009, single-family, detached home prices have risen a whopping 32.3 percent from $245,230 to $324,430, as of May 10, according to CAR.

Get the full story here: "California home prices shine golden again, sales rusty"


• Click on the keywords below for more stories on this subject.

© 2010 DeadlineNews.Com

Advertise on DeadlineNews.Com | Shop DeadlineNews.Com

Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins was the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime

Read more!