Archive for October, 2009
One-Third of Home Mortgage Applicants Denied
Nearly one third of people who applied for a mortgage last year were denied, the Federal Reserve reported Wednesday.
The denial rate was up 29 percent from 2006 when approvals were highest. Last year’s denial rate was twice as high for African-Americans and Hispanics as it was for whites.
FHA insured more than 50 percent of all loans to African-Americans and 45 percent to Hispanics. Nearly 17 percent of African-Americans and 15 percent of Hispanics got high-priced loans, compared to 7 percent of whites.
The Mortgage Bankers Association said lenders weren’t discriminating by race, but making decisions base on credit score and the size of the down payments.
The data, collected from nearly 8,400 lenders, is required under the Home Mortgage Disclosure Act of 1975.
Source: The Associated Press, Alan Zibel
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Record Streak Continues for Pending Home Sales
Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the NATIONAL ASSOCIATION OF REALTORS®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5.
Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected timeframe. “The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” he said. “No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month.”
The Pending Home Sales Index in the Northeast jumped 8.2 percent to 85.3 in August and is 12.0 percent higher than August 2008. In the Midwest the index rose 3.1 percent to 90.8 in August and is 7.6 percent above a year ago. In the South, pending home sales increased 0.8 percent to an index of 104.6 and is 8.2 percent above August 2008. In the West the index surged 16.0 percent to 130.5 and is 22.3 percent above a year ago.
“There is likely to be some double counting over a span of several months because some buyers whose contracts were cancelled have found another home and signed a new contract to buy,” Yun explained. “Perhaps the real question is how many transactions are being delayed in the pipeline, and how many are being cancelled? Without historic precedents, it’s challenging to assess.”
Yun also noted that the data sample coverage for pending sales is smaller than the measurement for closed existing-home sales, so the two series will never match one for one.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said first-time buyers need to act now. “Potential first-time buyers must make a contract offer very soon to have a reasonable chance of qualifying for the tax credit,” he said. “Congress needs to extend and expand this program because it’s stimulating the economy and reducing inventory close to price stabilization points.”
McMillan said a sizable number of homebuyers already in the pipeline could be let down because of the tight deadline. “We know there is a pent-up demand because sales are below normal levels for the size of our population. The faster we absorb excess inventory, the sooner we’ll turn the corner on home prices, prevent additional families from becoming upside-down in their mortgages, and give Wall Street the confidence to extend credit to other sectors,” he said. “Each home sale pumps an additional $63,000 into the economy through related goods and services, so the benefits of extending and expanding the tax credit far outweigh the costs.”
Yun said the forecast for home sales and prices depends very much on whether a tax credit is extended. “All we can say for certain is sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession,” he said. “Extending and expanding the tax credit is the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy and help reduce the budget deficit.”
Source: NAR
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Youth are encouraged to get involved with the Aiken SPCA.
Those ages 12 to 18 are invited to attend a Tuesday meeting of the newly formed Aiken Junior SPCA program, which enables young people to get involved in a creative way in the nonprofit animal shelter.
The meeting will start at 6 p.m. in room 4 at the H. Odell Weeks Activities Center.
Volunteers with the program come up with their own ideas for ways to benefit and enhance the work the SPCA is doing for homeless animals and the community.
“For example, on Oct. 24, they will be in the paddock playground during the Aiken Fall Steeplechase, and they have come up with their own games and activities,” said SPCA Volunteer Coordinator Anne Ofoje.
The group has even created its own logo and appointed a board of directors.
“It’s a little bit a step above other volunteering efforts,” Ofoje said. “In this group, they can be creative.”
There are no membership dues, but members are required to complete about 10 hours of volunteer service.
“New members are welcome to observe and join during the meeting,” Ofoje said.
For more information, contact Ofoje at 648-6863 or aikenspcavol@yahoo.com.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Retrofitting Old Buildings For Green Savings
Retrofitting old office buildings can reduce their energy usage and make them more desirable for commercial customers. It also can cut down on greenhouse-gas emissions since commercial real estate is responsible for 20 percent of U.S. energy use, environmentalists say.
Among the high-profile buildings undergoing energy updates are the Empire State Building and the Willis Tower, formerly the Sears Tower, in Chicago.
The green retrofit of the 78-year-old Empire State Building by Johnson Controls is expected to save $4.4 million a year on utility bills. The remodel of the Willis Tower will cost $350 million and reduce energy use by 80 percent, its owners say.
While these expenditures seem to make sense, few companies have the money to do this kind of work, says Roger Platt, senior vice president and counsel for the Real Estate Roundtable.
“The hurdle rate is substantially higher than it was even a year ago, because of the fact that real-estate owners and investors need to preserve cash to deal with the recapitalization of real estate,” he says.
Source: The Wall Street Journal, Noah Buhayar
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Small Mortgage Banks Band Together
Scores of independent mortgage banks have closed their doors over the past two years due to the challenges of obtaining short-term credit, and two new trade groups have been established in response.
The Community Mortgage Lenders of America and the Community Mortgage Banking Project both plan to lobby on behalf of local mortgage banks and lenders not owned by large banking companies, insisting they are necessary for a competitive market and holding down rates and fees.
John Courson, CEO of the Mortgage Bankers Association, says his group advocates a “level playing field” for all lenders and is taking steps to keep independent lenders in business.
Source: Wall Street Journal, James R. Hagerty
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Buying a Foreclosure Is No Picnic
Buyers seeking a foreclosed property should realize that not every foreclosure is a good deal.
Urge would-be buyers of foreclosures to have the property thoroughly inspected, says Dan Steward, president of the Tampa-based inspection firm, Pillar to Post. Lenders are not held to the same disclosure requirements as sellers.
Steward says damage isn’t always obvious. While it doesn’t take an expert to see that a toilet has been ripped out, it does require someone with knowledge to know that ripping it out damaged a pipe 20 feet down the line.
The best way for the buyer to get the property is to follow the bank’s instructions closely, says Ryan Melvin, co-owner of More Realty Group in Las Vegas, which specializes in foreclosures.
Another quirk that sometimes surprises buyers of real-estate-owned properties, or REOs, is the scrutiny that banks place on the buyers’ credit, even though they are using a different lender.
Source: The Wall Street Journal, Amy Hoak
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
More than Half of Modified Loans back in Default
More than 50 percent of homeowners whose loans were modified in the first six months of 2008 had fallen behind on their payments a year later, the federal Office of the Comptroller of the Currency and the Office of Thrift Supervision said Wednesday.
The situation could have been worse. One-third of borrowers whose monthly payments were reduced by 20 percent or more had fallen behind again with a year. But more than 60 percent of borrowers whose payments were left unchanged or increased fell behind.
The report covers 34 million loans, representing 60 percent of first mortgages on residences. More than 11 percent of all borrowers covered by the report had missed at least one payment in the first six months of 2009.
Source: The Associated Press, Alan Zibel
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Mortgage Applications Rise as Rates Fall
Falling interest rates pushed mortgage applications up 12.8 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.
On an unadjusted basis, the index rose 24.6 percent compared to the previous week and was up 14 percent compared to the same week a year ago.
Most of the applications were for refinances, with that index rising 17.4 percent, while the purchase index rose 5.6 percent.
The percentage of homes being purchased with government-guaranteed instruments was at 45.7 percent, the highest it has been over the life of the bankers’ survey.
Average mortgage rates fell below 5 percent:
* 30-year fixed-rate mortgages decreased to 4.97 percent from 5.08 percent.
* 15-year fixed-rate mortgages remained unchanged at 4.41 percent.
* 1-year ARMs decreased to 6.52 percent from 6.61 percent.
Source: Mortgage Bankers Association
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Carnival events appeal to sweet tooth, entertain whole family.
Chocolate lovers, prepare to overwhelm your senses with chocolate in all shapes and sizes.
The 21st annual Chocolate Festival put on by St. Mary Help of Christians Catholic School and Church will be held Saturday from 10 a.m. to 4 p.m.
The day involves activities for all ages and chocolate treats to tempt all taste buds.
“The Chocolate Festival is truly a very fun, very family-oriented festival. It has great carnival games, events and activities that can be enjoyed by people of all ages from children to the young at heart,” said Janiece Driscoll, chairman. “We do it at a minimal cost, so the entire family can enjoy.”
This year’s festival will feature loads of fun including games, vendors, inflatables for kids, plant sale, horse-drawn carriage rides through downtown Aiken, T-shirt sale, frozen casserole sale, pie-eating contest, remote-controlled car raceway contest, a chocolate carousel and, of course, lots and lots of chocolate to satisfy the sweet tooth.
The Gourmet Coffee Stand is especially popular in the morning and will be located near the used book sale inside. The book sale will feature VHS tapes, DVDs, CDs, board games and more. Full Story…..
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Preview to give celebration insight.
Reserve seats now to get a sneak peek of plans for the City’s 175th anniversary celebration.
A special preview will be held Saturday at the Washington Center for the Performing Arts on Newberry Street to inform the public of activities scheduled for the City’s anniversary and to gather volunteers to help with the events.
The preview will be in two sessions at 2 and 3 p.m. The sessions – presented by Mayor Fred Cavanaugh and Bill Reynolds, chairman of the anniversary planning committee – are 15 to 20 minutes long and will highlight the events planned for the year.
The City’s yearlong celebration will officially begin on Jan. 9 with a kick-off party downtown from 1 to 5 p.m. The event will commemorate the City’s first year, called the “Sights, Sounds and Tastes of 1835.” The City of Aiken was established on Dec. 19, 1835.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
County Should Be Notified of Mortgage Payoff
Homeowners who pay off their mortgage loan should notify county officials where the property is located, and file proof that the debt is paid.
Otherwise, when they go to sell the property, the title company won’t be able to prove clear title and the sale will almost certainly be delayed.
In some cases, sellers have had to sue their lenders to prove that they have been paid in full. If a lender is no longer in business, the situation is even more complicated, experts say.
When the debt is paid, some lenders file the paperwork with the appropriate county courthouse. Others simply send a note to the borrower and expect them to take care of that detail. If that is the case, the borrower should hand-carry the satisfaction note to the recorder or registrar-of-deed’s office. They should make sure they get back the original document with the filing date and time stamped on it.
Source: MarketWatch.com, Lew Sichelman
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Tough Times Mean High Housing Burden
Declining incomes resulted in more people spending 30 percent or more of their pre-tax income on housing, according to an analysis of U.S. Census data by the Joint Center for Housing Studies at Harvard University.
More than 40 million people in 2008 were above the 30 percent level, which is what the government considers affordable. That was about 600,000 more than paid that percentage in 2007, analysts concluded.
The calculations looked at the housing costs for both buyers and renters.
“Although housing affordability for newly purchased homes has improved, overall affordability for renters or owners is unchanged or worse because of the economy,” says Daniel McCue, research analyst at the center. “People are still hurting.”
Source: USA Today, Stephanie Armour and Barbara Hansen
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.