Metas
Naples Real Estate News 07/18/08
MORTGAGE RATES
As investors’ fears that the Federal Reserve would soon tighten credit policy to stall inflation lessened, mortgage rates fell this week: 30-year mortgage rates averaged 6.26 percent, the lowest level in six weeks, according to Freddie Mac.
COUNTRYWIDE
A handful of states are suing Countrywide Financial Corp. for misleading borrowers, and Florida initiated its case on July 1. Yesterday, however, California added another charge to its roster, claiming Countrywide paid higher commissions to agents who put borrowers into loans they weren’t qualified to receive.
HOME BUYING
Builders in the Tampa Bay area and across Florida are turning to smaller homes to spur sales, figuring out how to cut down on construction costs and offer more affordable prices. They note that smaller homes are popular for first-time buyers, seasonal residents, those wanting to downsize and people who just don’t want to stretch their budgets too much.
Divosta’s Village Walk in Bonita Springs is also seeing cut backs on construction costs on their various models. The Divosta subsidiary or division of Pulte homes, is changing from its popular poured concrete with reinforcing rebar to concrete block construction.
FANNIE AND FREDDIE
Treasury officials and senior lawmakers huddled behind closed doors yesterday, searching for a way the Treasury Department might safely invest in mortgage finance giants Fannie Mae and Freddie Mac without exposing taxpayers to massive losses.
Naples Real Estate News 07/17/08
FANNIE AND FREDDIE
Federal Reserve Chairman Ben Bernanke told Congress Wednesday that troubled mortgage giants Fannie Mae and Freddie Mac are in “no danger of failing.” However, he says that “weakness of market confidence” is hurting the companies.
STATE FARM
State Farm, Florida’s largest private property insurer, asked the state for an average rate increase of 47.1 percent on homeowner policies, saying it needs the money to pay claims if major storms strike. The planned increase tests lawmakers’ efforts to curb property insurance prices that doubled or tripled in some cases after hurricanes hit in 2004 and 2005.
AMENDMENT 5
If Florida voters pass Amendment 5 in November, property taxes will drop by 25 to 40 percent, but the amendment must first face a court challenge. A Tallahassee judge will hear arguments on August 13.
Naples Real Estate News 07/16/08
MORTGAGES
Local banks in Naples, Bonita Springs, Estero, through-out Florida, and the nation are telling investors that they should relax - “We’re fine.” A general fear of bank failures has made consumers wary of all financial institutions, even though most banks have no liquidity problems and very little risk.
HOMEBUYERS
There’s a dilemma for the nation’s lawmakers and millions of Americans priced out of homeownership: any rescue policy to stem foreclosures could artificially prop up home prices and perpetuate affordability problems.
FANNIE MAE AND FREDDIE MAC
Key Republicans on Tuesday expressed skepticism about an emergency Treasury Department plan to bolster troubled mortgage giants Fannie Mae and Freddie Mac, raising doubts on Wall Street about quick enactment.
MORTGAGE INSURANCE
Mortgage insurers have been tightening their standards throughout the U.S., further squeezing potential home buyers. Borrowers with less than a 20 percent downpayment now find few ways to avoid private mortgage insurance.
Naples Real Estate News 07/15/08
MORTGAGE REGULATIONS
The Federal Reserve issued new guidelines, effective Oct. 1, to curb shady lending practices. “It seems clear that unfair or deceptive acts and practices by lenders resulted in the extension of many loans, particularly high-cost loans, that were inappropriate for or misled the borrower,” says Fed Chairman Ben Bernanke.
HOUSING AID
The Fannie Mae/Freddie Mac problem will likely boost momentum for a quick final passage of Congress’ massive housing aid bill, aimed at helping some 400,000 struggling homeowners. “I’m confident we’re going to get this done,” said Senator Christopher J. Dodd. “Unfortunately, these events over the last few days have probably increased the importance of this in the minds of some.”
MORTGAGES
There were encouraging signs Monday for the Fannie Mae/Freddie Mac rescue plan, but also signs of concern; and in the wake of the IndyMac seizure by the federal government, investors worry about other big banks that might be in trouble. For homebuyers, it could mean tighter lending rules and fewer loan approvals.
OFFSHORE DRILLING
To drill or not to drill, that is the question. Louisiana, which allows drilling, gets about $1.5 billion annually in oil and gas revenue, and many Americans now want drilling to offset the high price of gasoline. Will Florida’s leaders give in to demand?
Naples Real Estate News 07/14/08
HOMEOWNERS INSURANCE
Start shopping around now for the best rates on homeowners insurance for your Naples, Bonita Springs or Estero residence. As the largest insurer of homes, condos and apartments in the state, Citizens Property Insurance has nearly 9,000 agents writing policies. But the insurance agents say that Citizens doesn’t pay them enough, especially in light of the heavier workload expected in February when new forms are introduced for its windstorm policies.
FHA
Starting today, homeowners trying to save their homes from foreclosure may find it easier to get federal help. FHASecure guidelines have been relaxed, expanding its eligibility standards to include borrowers with ARMS who were late on two monthly mortgage payments in the past 12 months, even if they were consecutive.
FORECLOSURES
With foreclosure rates at record highs, the Bush administration has been trying to keep people from losing their homes. But “many of today’s unusually high number of foreclosures are not preventable,” Treasury Secretary Henry Paulson said last week. “There is little public policymakers can, or should, do to compensate for untenable financial decisions.”
MORTGAGES
If Fannie Mae and Freddie Mac collapsed, it would deal a blow to the mortgage market. But the federal government unveiled a broad program yesterday to bolster the troubled mortgage giants. Both companies said they were financially sound but grateful for the confidence-building efforts.
Naples Real Estate News 07/11/08
NAPLES HOUSING MARKET
The Naples home sales statistics don’t tell the whole story. In some areas, neighborhoods have not been hurt much by the housing slowdown, such as those close to business areas or good schools, while other neighborhoods have taken a greater hit. The same is true of the Bonita Springs and Estero areas.
MORTGAGE RATES
Rates on 30-year mortgages edged up this week to 6.37 percent, while rates on other home loans were a mixed bag.
MORTGAGE MARKET
Beset by widespread speculation about their losses, mortgage giants Fannie Mae and Freddie Mac have seen their stock drop amid talk that the federal government could take over their operations. The two entities back half of all U.S. mortgages.
CREDIT SCORES
Americans can save billions of dollars annually on credit card and other interest payments by raising their credit scores, but many consumers still don’t know enough about their credit risk, according to a study released yesterday.
Naples Real Estate News 07/10/08
DEMOGRAPHICS
Florida cities continue to grow, but at a slower pace than in previous years, according to the U.S. Census Bureau. New Orleans netted the top growth spot, but its population is still about half what it was before Hurricane Katrina hit.
MY SAFE FLORIDA HOME
Reports of the death of the My Safe Florida Home inspection program have been greatly exaggerated. State officials announced last week that they expected to reach their goal last weekend and put the program on hiatus, but about 10,000 more inspection requests will now be accepted on a first-come, first-served basis.
FORECLOSURES
Florida homeowners facing foreclosure have access to a lawyer and free legal advice through a program offered by the Florida Bar and Florida Legal Services. An attorney will, at no charge, negotiate with a lender on behalf of a homeowner to help keep the home out of foreclosure.The Statewide effort called FLASH (Florida Attorneys Saving Homes) has launched a toll-free hot line (866-607-2187) and will take calls from 8 a.m. through 4 p.m. Monday through Friday.
VETERAN HOUSING
The U.S. House approved a homeless-veterans housing bill overwhelmingly Wednesday, even though the White House may veto it. The bill authorizes $200 million to be used for housing and services, 20,000 rental vouchers per year and $1 million for nonprofit groups to provide veterans’ services.
FORECLOSURES
Month-to-month, the number of U.S. households in some phase of foreclosure fell 3 percent in May, according to RealtyTrac. However, the number is up 53 percent compared to the same month in 2007. In Florida, some counties have been hit harder than others.
Naples Real Estate News 07/09/08
SHORT SALES
Short sales sound like a dream: The seller escapes foreclosure. The buyer gets a bargain price. The bank holding the home loan eats the difference. But the deals can be incredibly cumbersome to negotiate, and in a recent survey, 94 percent of the real estate agents who have worked with a short sale say they have had problems. However, a short sale home or condo in the Naples, Bonita Springs or Estero areas could represent an excellent purchase opportunity, as long as the proper extensive research is done by the real estate agent representing the buyer.
HOUSING AID
Housing and Urban Development Secretary Steve Preston criticized parts of the massive homeowners rescue bill, saying that taxpayers could end up absorbing “preventable and foreseeable losses” if the final bill does not include safeguards for the Federal Housing Administration (FHA). For example, the Bush administration wants the FHA to be able to charge borrowers insurance premiums based on credit risk.
CONDO CONVERSIONS
Condo conversions were like a game of musical chairs - the last projects to convert lost out when the real estate market stalled. Now many of those condo-conversion owners find that the developer has retained controlling interest in the property, and they have almost no say in the operation.
Some condo conversions currently in this in between stage are Lugano Bay and Oasis in Naples. I am not aware of any in the Bonita Springs or Estero areas.
PENDING HOME SALES
Existing-home sales should see some modest movement soon with a recovery beginning in the second half of the year, according to National Association of REALTOR’s latest forecast. NAR’s latest Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, stands at 84.7, down 4.7 percent from its April reading.
The overall pending sales for Naples were down about 5.6 percent, Bonita Springs was down 24.5 percent, and the Estero area 21.9 percent from April’s figures.
MORTGAGES
The Federal Reserve will issue new lending rules next week to protect future homebuyers from shady lending practices. The plan would apply to new loans made by thousands of lenders of all types, including banks and brokers.
Naples Real Estate News 07/08/08
HOUSING AID
A mortgage rescue plan to save hundreds of thousands of homeowners from foreclosure drew overwhelming Senate support on Monday, inching toward possible passage by the end of the week despite Republican objections. The bill’s centerpiece is a new $300 billion Federal Housing Administration program to allow struggling homeowners who are currently too financially risky to qualify for government-backed loans to refinance into safer, more affordable mortgages.
REAL ESTATE OWNED
While it’s impossible to predict the future of median home prices, some experts don’t think REOs will decline any more since banks are cutting such great deals right now.
Naples Real Estate News 07/07/08
PERMANENT GENERATOR PERMITTED?
If you installed a “permanent generator” for you home or condo in Naples, Bonita Springs or Estero - was it properly permitted and installed to code?
If a home listing includes a “permanent generator,” it may not be installed to code. Building officials estimate tens of thousands of open permit cases exist in just Broward and Palm Beach counties. Some contractors, in the post-hurricane rush to install generators, did not follow through and get the necessary permits and inspections.
FORECLOSURES
Democrat Barack Obama and Republican John McCain both promise help for homeowners facing foreclosure. But even the optimism that surrounds a new president taking office cannot resurrect home values overnight, and presidents have no direct ability to reduce mortgage rates.
But they do have the ability to work with Congress and the lenders to be more pro-active to alleviate the issues facing homeowners.
HOMEOWNERS INSURANCE
Consumers coping with rising prices for food, gas and electricity should explore ways to save on homeowners insurance - some areas for exploration could be reviewing their policies to determine if the coverage is appropriate for today’s real estate replacement value, insuring structures that do not exist, adding hurricane protection, having a fire extinguisher, adding smoke alarms, strengthening their home security with new deadbolt locks and alarm system installation or monitoring.