Owners and Renters Agree That Owning a Home is a Smart Decision

Washington, January 19, 2011

A substantial majority of both home owners and current renters agree that owning a home is a smart decision over the long term. That’s according to the results of a National Association of Realtors® survey of 3,793 adults conducted online by Harris Interactive.
The American Attitudes About Homeownership survey found that in today’s challenging economy, 95 percent of owners and 72 percent of renters believe that over a period of several years, it makes more sense to own a home. In addition, an overwhelming majority of home owners are happy with their decision to own a home – 93 percent of owners surveyed would buy again.
“Home owners and renters agree that home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy,” said National Association of Realtors® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “The results of this survey illustrate just how important issues related to home ownership are to people in this country.” Read the rest of the article at:
http://www.realtor.org/press_room/news_releases/2011/01/owning_home

Short-sale incentives revamped again | Inman News

Short-sale incentives revamped again | Inman News

A new directive from the Treasury Department, which administers the Home Affordable Foreclosure Alternatives Program (HAFA), lifts a cap that had restricted loan servicers to paying second-lien holders no more than 6 percent of outstanding loan balance in exchange for releasing subordinate liens.

See the entire article at Inman News

SJC ruling may void thousands of foreclosures

January 7, 2011 01:08 PM

By Jenifer B. McKim, Globe Staff

The Massachusetts Supreme Judicial Court today upheld a contentious land court ruling that puts in question the ownership of hundreds, possibly thousands, of foreclosed properties in the state.

The ruling challenges the way lenders have traditionally foreclosed on properties -- without having all the paperwork in place at the time a home is seized. It affirms a 2009 lower court decision that invalidated foreclosures on two Springfield homes because the lenders did not hold clear titles to the properties at the time of the proceedings.

Cambridge attorney Paul Collier, who represented one of the homeowners in the case, said the supreme court ruling invalidates thousands of foreclosures, reverting ownership back to the homeowners who lost the homes, at least temporarily. In most cases, those property takings will have to be redone, further clogging an already bogged down foreclosure process than many real estate specialists say has contributed to the stagnant housing market.

"The banks and the investors are going to have to deal with those homeowners as to what happens to those properties," Collier said.

During the housing boom, millions of mortgages were packaged into bonds and sold to investors, a process that resulted in lengthy and tangled paper trails that can obscure ownership. Many lenders believed they could complete foreclosure transactions and later produce formal proof they held a mortgage. Today's ruling makes it clear that the practice will not be allowed in Massachusetts.

"We agree with the [land court] judge that the plaintiffs who were not the original mortgagees, failed to make the required showing that they were the holders of the mortgages at the time of foreclosure,'' the justices said in their opinion.

The decision will also have national implications at a time when lenders' foreclosure practices are being scrutinized by federal regulators and state attorneys general.

http://www.boston.com/business/ticker/2011/01/sjc_ruling_may.html

Pending Home Sales Continue Recovery, Improvement Seen in 2011

Pending Home Sales Continue Recovery,
Gradual Improvement Seen in 2011

 Washington, DC, December 30, 2010 - Pending home sales rose again in November, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator, rose 3.5 percent to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. The index is 5.0 percent below a reading of 97.0 in November 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, said historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” he said. “But further gains are needed to reach normal levels of sales activity.”
The PHSI in the Northeast increased 1.8 percent to 72.6 in November but is 6.2 percent below November 2009. In the Midwest the index declined 4.2 percent in November to 78.3 and is 7.7 percent below a year ago. Pending home sales in the South slipped 1.8 percent to an index of 91.4 and are 7.2 percent below November 2009. In the West the index jumped 18.2 percent to 123.3 and is 0.4 percent above a year ago.
“If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume,” Yun said. “Credit remains tight, but if lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy.”
The 30-year fixed-rate mortgage is forecast to rise gradually to 5.3 percent around the end of 2011; at the same time, unemployment should drop to 9.2 percent.
For perspective, Yun said that the U.S. has added 27 million people over the past 10 years. “However, the number of jobs is roughly the same as it was in 2000 when existing-home sales totaled 5.2 million, which appears to be a sustainable figure given the current level of employment,” he explained.
“All the indicator trends are pointing to a gradual housing recovery,” Yun said. “Home price prospects will vary depending largely upon local job market conditions. The national median home price, however, is expected to remain stable even with a continuing flow of distressed properties coming onto the market, as long as there is a steady demand of financially healthy home buyers.”
Existing-home sales are projected to rise about 8 percent to 5.2 million in 2011 from 4.8 million in 2010, with an additional gain of 4 percent in 2012. The median existing-home price could rise 0.6 percent to $173,700 in 2011 from $172,700 in 2010, which was essentially unchanged from 2009.
“As we gradually work off the excess housing inventory, supply levels will eventually come more in-line with historic averages, and could allow home prices to rise modestly in the range of 2 to 3 percent in 2012,” Yun said.
New-home sales are estimated to rise 24 percent to 392,000 in 2011, but would remain well below historic averages, while housing starts are forecast to rise 21 percent to 716,000.
Yun sees Gross Domestic Product growing 2.5 percent in 2011, and the Consumer Price Index rising 2.3 percent.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
From: www.realtor.org

2011: The Year a House Again Becomes a Home

by The KCM Crew on December 29, 2010

For almost a decade now, every time we talked about real estate we immediately discussed money. We didn’t talk about the value of a home but instead about the price of the house. We didn’t worry about a roof over our heads but instead the ceiling on our interest rate. We didn’t care as much about where we raised our family as we cared about how much we increased our family’s net worth.

That will change in 2011. The KCM Crew believes very strongly that real estate will return to what it has been for the 200+ year history of this country: a place for us and our families to live comfortably. It will also prove to be a great long term investment as it always has been.

Our parents and our grandparents didn’t buy their homes as a short term financial investment. They bought it so they had a place of their own to come home to at the end of the day; a place to raise their family; a place they could feel safe.

Sure they dreamed of a ‘mortgage-burning’ party. They realized it was a form of forced savings. They were taught that, if they paid their mortgage every month, they would wind up with a little retirement account decades later.

And, they realized that wouldn’t happen if they rented.

However, in the last decade, we somehow forgot that the financial aspect was the serendipity not the major reason to buy. We believe that 2011 will be the year that people return to the historic reasons families purchased a home. This is the year when we again remember that homeownership is a major part of the American Dream.

What about the challenges to a housing recovery? Let’s look at them.

The Economy

Most reports are showing that the economy is doing better than expected. This shopping season provided additional proof of this point. As the economy recovers, so will consumer confidence. This will be great news for housing.

Unemployment

There is much talk about a ‘jobless recovery’. We agree that unemployment will continue to be a challenge. However, when you talk about housing, it is not the unemployment rate that is all telling. Instead, it is the change in the rate. As unemployment skyrocketed, people started to worry about their own job. Any change creates concern. Unabated concern turns to fear. Fear causes paralysis. The spike in unemployment has plateaued. People no longer have the feeling that ‘they are next’. The fear will diminish and people will start moving on with their lives. This too will be great news for housing.

Interest Rates

It seems the bottomless pit in which rates have been falling does have a floor after all. And it seems we have found it. Those purchasers who had been waiting for the best interest rate may have already missed it.

Prices

Economists are projecting that prices will not see any appreciation in 2011. Sellers who had been waiting for 2006 to return will come to the realization that waiting any longer makes little sense. They will instead decide to get on with their lives and sell this year.

Prices probably will soften further. However, the possible savings to potential buyers will be minimized by a rise in interest rates.

Bottom Line

This is the year that normalcy returns to real estate. People will buy and sell based on the desire for a better life for themselves and their families. They will realize that is the true value of homeownership and they will be willing to pay for that value.

See the original post at the KMC Blog: http://kcmblog.com/2010/12/29/2011-the-year-a-house-again-becomes-a-home/

Foreclosures in Massachusetts plunge in November

Foreclosures in Massachusetts plunge in November

By Jenifer McKim, Globe Staff

Foreclosures plunged in November in Massachusetts as lenders suspended home seizures following increased scrutiny of their procedures, new data showed today.

Foreclosure deeds fell to 416 in November, dropping more than 40 percent from the number of foreclosures recorded during the same month last year and marking the lowest recorded number of foreclosures in the state in November since 2007, according to the Warren Group, a Boston company that tracks local real estate.

Petitions, the first step in a foreclosure process, fell to 1,109 in November, down almost 43 percent from November last year. November is only the third month in 2010 that foreclosure starts dropped below 2,000.

Timothy M. Warren Jr., cq chief executive of the Warren Group, said he'd expected foreclosures to fall because lenders temporarily suspended activity following increasing concerns across the US about sloppy and fraudulent procedures. Issues include admissions from bank workers now known as robosigners that they signed legal documents without reading them.

"With federal and state governments taking an even closer look at how banks are going about the foreclosure process, I suspect that petitions to foreclose will remain at low levels,'' he said.

To see town-by-town data, click here.

From Boston.com

Homes Sales Resume Upward Trend With Stable Prices

Existing-home sales got back on an upward path in November, resuming a growth trend since bottoming in July, according to the National Association of Realtors®.

Existing-home sales across the U.S., which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 5.6 percent to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9 percent below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.

Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.
Yun added that home buyers are responding to improved affordability conditions. “The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he said. “Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011.”

In the Northeast where we live, existing-home sales rose 2.7 percent to an annual pace of 770,000 in November but are 33.0 percent below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2 percent higher than a year ago.



See the full story at Realtor.org

Top 10 Real Estate Stories of 2010 | Inman News

Top 10 Real Estate Stories of 2010

The health of the national and global economy figured prominently in the state of the housing market in 2010. Still hobbled by high unemployment and millions of distressed owners and foreclosed homes, real estate sales are expected to come in lower this year than the 2009 level, with prices roughly flat. This report highlights the major issues impacting the business of real estate in 2010.

1. All eyes on the economy
2. Goodbye, tax credits
3. Robo-signing complicates foreclosure crisis
4. FHA grows role in lending, tightens underwriting
5. Mobile market matures
6. A year of data deals
7. Congress approves face-lift for financial system
8. Major franchise firms push for growth
9. Zeroing in on location, neighborhood
10. Election 2010: The people have spoken

The full article and details on each story can be seen at: http://www.inman.com/news/2010/12/20/top-10-real-estate-stories-2010

New law clarifies Mass. homestead protections - The Boston Globe

New law clarifies Mass. homestead protections

Protecting your home against creditors will be easier now that Governor Deval Patrick signed into law a bill that automatically provides Massachusetts homeowners with a $125,000 cushion against debt collectors... if they hold that much equity in their properties.

The legislation, signed on December 16, 2010, clarifies ambiguities in a law first enacted in 1851. The statute, amended a number of times in ensuing years, provided $500,000 in protection from creditors — but only for homeowners who file a so-called homestead declaration with a county registry of deeds, a process that can cost between $35 and $100. Under the new law, homeowners do not have to make such a filing unless they hold more than $125,000 in equity in their homes. They can still get $500,000 in protection if they file a homestead declaration.

“It is an important piece of consumer protection,’’ said Michael Goldberg, co-chairman of the legislation committee for the Real Estate Bar Association for Massachusetts. “It ensures that homeowners in the Commonwealth have the protection of a modernized, understandable homestead law.’’

Read the entire article at Boston.com

Home Owners Recoup More with Exterior Replacement Projects, REALTORS® Report

Home Owners Recoup More with Exterior Replacement Projects

December 16, 2010 - The latest cost vs. value report on remodeling a home is now out. What will get you the biggest bang for your buck? A steel entry replacement door averaged a return of 102% of what you spend. Most of the other projects will return you less than 100% of what it costs you, according to this report.

 This report comes out each year and gives the average return on investment for many common home remodeling projects across the US, and is broken down by region. This year, remodeling projects done in New England don't return as much as project done in some other parts of the country, such as the west coast and south Atlantic coast. Lower labor costs seem to make the difference in the southeast, while higher return values is the reason that the west coast's remodeling projects net more money at resale.

Now the problem I have with the report is not so much the value returned, but with the costs of the projects. Maybe that's because I do the majority of my own remodeling projects, or maybe because I get more than one estimate when it comes to hiring a contractor.

For example, I had an exterior fiberglass door installed in my home last year, replacing the original cracked wooden one. According to the report, for the New England area, I should have paid $3,662 for the project. I purchased a good quality door for $349.00 at Home Depot, and the labor to remove the old door and install the new one was $500. I got 3 estimates for labor and this was the middle one. So the total cost for the job was $849, a far cry from $3,662. The value of replacing my front door is $2,079, a figure I would agree with. That means my return on investment (or cost vs. value) is 245%! Quite a difference from the 56% return that the Cost vs. Value report states. 

I believe that many of the cost estimates are overstated. The cost for replacing a roof is put at $23,232. That is around the estimate I got for replacing my roof...but included adding on a full dormer in the rear and 2 doghouse dormers in the front of the house! Just replacing my roof (admittedly, not a large job because it is a cape) was $4,500 to $7,000 (4 estimates received) including removing the existing 2 layers. I did have one client pay over $20,000 for a new roof, but that included removing and disposing of the existing clay tile roof - not an easy job. Yes their are roof out there on McMansions that will easily run in excess of $20,000, but that is not the norm. Most roof replacements I have seen have been in the neighborhood of $5,000 to $15,000. Then again, replacing your roofing isn't really an upgrade. But in a home buyer's mind your home is significantly less valuable if the roof has to be replace within the next few years. They just expect to buy a home with a good roof that will last for years.

Some of the biggest returns are changes made on the exterior of the house. First impressions are extremely important when selling a property, and if you have pealing paint, a cracked front door, shingles falling off the roof and a rotted garage door, the buyers may never go inside to see your beautiful newly remodeled kitchen and bath.

If your home needs some updating, read the Cost vs. Value Report. It contains some good information. But remember that you can probably do better than what is claimed by doing the work yourself, or by making sure you get multiple bids/estimates for any remodeling project.

 Jim Armstrong

Mortgage Rates Back on the Rise

Mortgage Rates Back on the Rise

Rates for 30-year fixed mortgages rose to 4.39 percent this week from 4.17 percent a week ago, and average interest on 15-year loans moved to 3.76 percent from 3.57 percent, said Freddie Mac.

Interest for five-year adjustable-rate mortgages jumped to 3.4 percent from 3.25 percent, meanwhile, and one-year ARMs held at 3.26 percent. Rates have climbed along with long-term Treasury yields as traders unloaded Treasurys purchased before the Federal Reserve announced a $600 billion bond purchase program.

Source: Chicago Sun-Times (11/19/10)

September Home Prices Declined 2.79 Percent Year Over Year

September Home Prices Declined 2.79 Percent Year Over Year

CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today released its September Home Price Index (HPI) that shows that home prices in the U.S. declined for the second month in a row after rising slightly for the first seven months of the year. According to the CoreLogic HPI, national home prices, including distressed sales, declined 2.79 percent in September 2010 compared to September 2009 and declined by 1.08 percent* in August 2010 compared to August 2009. Excluding distressed sales, year-over-year prices declined .73 percent in September 2010.
Highlights as of September 2010

• The top five states with the highest appreciation, including distressed sales, were: New York (+2.67 percent), North Dakota (+1.73 percent), California (+.86 percent), Nebraska (+.78 percent), and Virginia (+.77percent).
• The five states with the greatest depreciation, including distressed sales, were Idaho (-14.04 percent), Alabama (-8.9 percent), Mississippi (-8.3 percent), Florida (-7.68 percent) and New Mexico (-7.47 percent).
• Excluding distressed sales, the top five states with the highest appreciation were: New York (+3.82 percent), North Dakota (+3.19 percent), Rhode Island (+1.71 percent), Vermont (+1.64 percent), and Alaska (+1.53 percent).
• Excluding distressed sales, the five states with the greatest depreciation were: Idaho (-11.06 percent), Nevada (-6.86 percent), Arizona (-6.01 percent), Michigan (-5.67 percent) and Oregon (-4.61 percent).
• Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to September 2010) is -29.13 percent. Excluding distressed properties, the peak-to-current change in the HPI for the same period is -19.96 percent.

“We’re continuing to see price declines across the board with all but seven states seeing a decrease in home prices,” said Mark Fleming, chief economist for CoreLogic. “This continued and widespread decline will put further pressure on negative equity and stall the housing recovery.” Full-month September 2010 national, state-level and top CBSA-level data can be found at http://www.corelogic.com/About-Us/ResearchTrends/Home-Price-Index-Report---September-2010.aspx.
About CoreLogic
CoreLogic (NYSE: CLGX) is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. CoreLogic has built the largest U.S. real estate, mortgage application, fraud, and loan performance databases and is a recognized leading provider of mortgage and automotive credit reporting, property tax, valuation, flood determination, and geospatial analytics and services. More than one million users rely on CoreLogic to assess risk, support underwriting, investment and marketing decisions, prevent fraud, and improve business performance in their daily operations. Formerly the information solutions group of The First American Corporation, CoreLogic began trading under the ticker CLGX on the NYSE on June 2, 2010. The company, headquartered in Santa Ana, Calif., has more than 10,000 employees globally with 2009 revenues of $2 billion. For more information visit www.corelogic.com.

Will Your House Be Worth More in the Spring?

Will Your House Be Worth More in the Spring?

This is a question anyone thinking about selling must ask. Should they sell now or should they wait for the spring? Most years that would be an interesting question. There is a belief that many buyers come out in the spring and, with that increase in demand for housing, prices may appreciate. This year is unlike any year in recent memory. Most experts believe there will be continuing depreciation of home values throughout the next 18 months.

See the rest of the article:
http://kcmblog.com/2010/10/29/will-your-house-be-worth-more-in-the-spring/

5 Reasons You Should Sell Your House TODAY!

5 Reasons You Should Sell Your House TODAY!

Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up.

Below are five reasons you should consider when pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.

Read the rest of the article at:
http://kcmblog.com/2010/10/19/5-reasons-you-should-sell-your-house-today/

Unemployment/Foreclosure Petitions Drop in Massachusetts

The Massachusetts unemployment rate dropped from 8.8 percent in August to 8.4 percent in September, the steepest drop since January 1976, state labor officials said this morning.
"The rate, which has been trending downward from the 9.5 percent rate in January and February, remains below the 9.6 percent national rate," the state's Executive Office of Labor and Workforce Development said in a press release.

Also, the number of Massachusetts foreclosures started by lenders last month dropped about 23 percent from August 2010, and nearly 7 percent from a year ago said the Warren Group, a Boston firm that tracks local real estate activity.

In recent weeks, several big lenders, including Bank of America Corp. and GMAC, temporarily halted foreclosure proceedings in various states over allegations that they erred in processing documents, but now they have restarted the foreclosure process. (Click here to read an AP story on that subject that appeared in this morning's Boston Globe.)
"We will have to wait until the October statistics are tabulated to see the impact from Bank of America's decision to halt foreclosures in Massachusetts, pending a review of its paperwork and procedures," Warren Group chief executive Timothy M. Warren Jr. said in a statement. "From what we can see at the present time, Bank of America is involved in about 2,000 pending foreclosure cases in the Bay State."

Title companies want promises from 'robo signing' lenders

In addition to satisfying federal and state regulators that they're following the letter of the law, lenders embroiled in the "robo signing" scandal may soon have to provide warranties to title insurers in order to continue selling foreclosed homes.

Bank of America has already agreed to provide warranties to Fidelity National Financial Inc. that cover the title insurer's costs if employees processing foreclosure documents for the bank make mistakes, Bloomberg News reports, and is in talks with other title insurers to do the same.

See the rest of the article at Inman News

Mortgage Rates Continue to Fall According to Freddie Mac's Weekly Survey

Mortgage Rates Continue to Fall According to Freddie Mac's Weekly Survey

October 8, 2010, McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which found that the 30-year fixed-rate mortgage rate dropped yet again to break the survey's all-time low; the 15-year fixed-rate did the same. The 5-year ARM also set an all-time survey low.
30-year fixed-rate mortgage (FRM) averaged 4.27 percent with an average 0.8 point for the week ending October 7, 2010, down from last week when it averaged 4.32 percent. Last year at this time, the 30-year FRM averaged 4.87 percent.
15-year FRM this week averaged a record low of 3.72 percent with an average 0.7 point, down from last week when it averaged 3.75 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47 percent this week, with an average 0.6 point, down from last week when it averaged 3.52 percent. A year ago, the 5-year ARM averaged 4.35 percent.
1-year Treasury-indexed ARM averaged 3.40 percent this week with an average 0.7 point, down from last week when it averaged 3.48 percent. At this time last year, the 1-year ARM averaged 4.53 percent.
Frank Nothaft, vice president and chief economist at Freddie Mac report, "The 12-month growth rate in the core price index for personal consumption , which the Federal Reserve closely tracks, has been drifting lower over the past six months ending in August and suggests inflation is running at a tepid pace at best. This allowed mortgage rates to ease to new or near record lows this week."
"Housing affordability increased for the second month in a row in August to tie April's level, according to the National Association of Realtors® (NAR). As a result, pending existing home sales also rose for the second consecutive month in August to the strongest pace in four months, the NAR also reported. Furthermore, since the end of August, mortgage applications for home purchases were up over 14 percent for the week ended October 1st."

Beware of Resale Fees on Home Purchases

Resale Fees If you haven't heard about resale fees, then it's time you did. They are making headlines across the nation, and for good reason.


When you buy a house, how often do you read every line of your sales contract? If new legislation fails to pass, you'll need to read before signing anything.


Resale fees, also known as capital recovery fees or private transfer fees, are fees that a seller pays to the developer, each and every time the home sells for a specified period of time.
A recent article by the New York Times, detailed the story of one family who bought their dream home, only to find that resale fees allowed the developer to collect 1 percent of the sales price from the seller every time the property changes hands -- for the next 99 years.


This particular detail is typically hidden deep inside the sales contract. And homebuyers simply sign away their rights to that 1 percent, without ever having knowledge of it. Why would a builder or developer want to use this questionable practice?


The New York Times explains it this way, "Many developers see the resale fee as a creative way to get new financing. They are hoping to one day use the trickle of cash from these fees as collateral for a loan, or to get cash up front if pools of the fees are packaged into securities to be bought and sold on Wall Street." As they see it, developers are desperate.


How are resale fees legal? They may not be for long.


In September of 2010, US House Representatives Maxine Waters and Albio Sires introduced a bill called the "Home Equity Protection Act of 2010." The bill seeks to amend the Real Estate Settlement Procedures Act (RESPA) by prohibiting the collection of resale fees.
Proponents of the bill and changes to the legality of resale fees, believe the fee robs homeowners of their equity when they sell their property.


In addition, the Federal Housing Finance Agency proposed a similar rule to curb use of resale fees. Their proposal would keep Fannie Mae and Freddie Mac from insuring or purchasing mortgages that include such fees.


These fees have been such a point of contention, that The Coalition to Stop Wall Street Home Resale Fees has been formed. They responded to the news of the proposed legislation, saying, "This bill is an important step in enhancing consumer protections against these for-profit fees and safeguarding our already fragile real estate market from further abuse." They continued, "These fees add no benefit or value to a property, and are little more than a predatory scheme meant to take advantage of unsuspecting homeowners. Our Coalition thanks Congresswoman Waters and the bill's co-sponsors for recognizing the danger that these fees pose to homeowners and the real estate market."


Evan Fuguet, Senior Policy Counsel at the Center for Responsible Lending, noted, "The Home Equity Protection Act of 2010 is a strong step forward that would help consumers across the country, preventing unwarranted and spurious increases in the costs of homeownership. Unlike conveyances that support the community, affordable housing or the environment, these private transfer fees have no added benefit for homeowners and home buyers, and are reminiscent of the irresponsible fee-packing behavior we witnessed during the heyday of abusive subprime home lending ."


Though I have not run into resale fees so far on the north shore. be sure to talk to your agent about your contract and if resale fees could be an issue for you.    

30-Year Mortgage Rate Ties Low While 15-Year Sets New Record

30-Year Mortgage Rate Ties Low While 15-Year Sets New Record McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage rate dropped to tie the survey’s all-time low and the 15-year fixed-rate set another record low. 

30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.8 point for the week ending September 30, 2010, down from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 4.94 percent. 

15-year FRM this week averaged a record low of 3.75 percent with an average 0.7 point, down from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.52 percent this week, with an average 0.6 point, down from last week when it averaged 3.54 percent. A year ago, the 5-year ARM averaged 4.42 percent. 

1-year Treasury-indexed ARM averaged 3.48 percent this week with an average 0.7 point, up from last week when it averaged 3.46 percent. At this time last year, the 1-year ARM averaged 4.49 percent.
Frank Nothaft, vice president and chief economist at Freddie Mac, says, "Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week. The September Consumer Confidence Index by the Conference Board fell to the lowest level since February of this year, while the Business Roundtable CEO Business Outlook for the third quarter was the weakest in the past four quarters. Consequently, rates for the 15-year fixed mortgage and the 5-year hybrid ARM reached new all-time lows and rates for 30-year fixed mortgages tied its record set just four weeks ago." 

"Homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010 after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009, the Federal Reserve Board reported. This, in part, strengthened household balance sheets and reduced serious mortgage delinquencies. For instance, first mortgages 90-days delinquent or worse fell to 3.16 percent in August from 4.76 percent a year prior and was the lowest rate since June 2008, according to the S&P/Experian Consumer Credit Default Indices ."

September Real Estate Round Up

September Round Up: Rates Back Down In Freddie Mac's results of its Primary Mortgage Market Survey. The 30-year fixed-rate mortgage rate dropped to tie the survey’s all-time low and the 15-year fixed-rate set another record low.
30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.8 point for the week ending September 30, 2010, down from the previous week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 4.94 percent.
15-year FRM this week averaged a record low of 3.75 percent with an average 0.7 point, down from the previous week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.52 percent this week, with an average 0.6 point, down from the previous week when it averaged 3.54 percent. A year ago, the 5-year ARM averaged 4.42 percent.
1-year Treasury-indexed ARM averaged 3.48 percent this week with an average 0.7 point, up from the previous week when it averaged 3.46 percent. At this time last year, the 1-year ARM averaged 4.49 percent.
According to Frank Nothaft, vice president and chief economist, Freddie Mac: "Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week. The September Consumer Confidence Index by the Conference Board fell to the lowest level since February of this year, while the Business Roundtable CEO Business Outlook for the third quarter was the weakest in the past four quarters. Consequently, rates for the 15-year fixed mortgage and the 5-year hybrid ARM reached new all-time lows and rates for 30-year fixed mortgages tied its record set just four weeks ago."
"Homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010 after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009, the Federal Reserve Board reported. This, in part, strengthened household balance sheets and reduced serious mortgage delinquencies. For instance, first mortgages 90-days delinquent or worse fell to 3.16 percent in August from 4.76 percent a year prior and was the lowest rate since June 2008, according to the S&P/Experian Consumer Credit Default Indices."
Four Tips for Setting the Right Sales Price
Sellers think their homes are worth more than their real estate professional recommends, and buyers think these same homes are worth less.
It’s a difficult disconnect that makes selling properties a challenge. Successfully marketing a home requires that the price be set carefully -- or it will languish on the market. Among the considerations:

How many homes are for sale in the neighborhood? The more homes on the market, the more important it is to list at the lower end of the scale. "I want buyers to ask why is this house priced so competitively," said NAR President-elect Ron Phipps. "I want the answer to be an offer."

Take short sales and foreclosures into consideration when pricing. If the competing properties are in lousy condition, they are less of an issue, but if they are well taken care of, yet priced 25 percent below market, they can be a serious factor.

Negotiate decisively. "Buyers are not interested in back-and-forth negotiations these days," Phipps said. "They are less emotional and more disciplined. They will walk away."

Cut the price when you have to. If no one shows up for an open house, if no one calls and if there are no offers, then the price is too high. That means it's time to make a meaningful price cut. What's New in New Housing Design Below are the products grabbing the attention of the home building and remodeling industries:

Appliance Drawers. Small warning drawers, modest-sized dishwasher drawers for small loads, refrigerator drawers and microwave drawers.

Counter-depth refrigerators. Some are only 24 inches deep.

Motion-detecting faucets. Like you'd find in the restrooms of businesses.

LED lighting. These are used under cabinets and in ceiling fixtures as a longer-lasting, more efficient alternative to compact fluorescent lamps and incandescent bulbs.

Electric heated floors. A nice touch in bathrooms,

Showers with multiple heads and body sprays. Bathtubs are out. Sellers Quickly Transform Property with Paint
The best way to update a property is to paint it. It’s a job that many sellers can do themselves. Here are six suggestions for making the work go quickly.
1. Move the furniture. Get as much furniture as possible out of the way, and then cover what’s left with plastic drop cloths held in place with masking tape.
2. Buy good paint. Top-quality latex interior paint will hide what’s underneath and make the job go faster.
3. Tape the edges. Taping the edges with painters tape will speed up the job and make the results more professional.
4. Work top down. Paint the ceiling first, then the walls, then the windows and trim and finally the baseboards. This will cut down on time spent repairing drips and splatter marks.
5. Cut in the corners. Applying a three-inch band of paint around the edges will allow you to fill in the middle with a paint roller.
6. Apply paint generously. Trying to stretch the paint won’t save sellers any money if they have to repaint.