REAL ESTATE TAXES – The Senate passed a plan to lower real estate taxes yesterday, but it differs from the House version of real estate tax reform that includes substantial help for non-homestead and commercial property. The differences must be worked out if voters are to consider an amendment in January.
DISASTER INSURANCE – A move to add windstorm coverage to federal flood insurance stumbled in the U.S. Senate yesterday when a committee failed to consider the change. However, Florida Sen. Mel Martinez says he’ll work to get windstorm included before the issue goes to a vote.
COMMERCIAL REAL ESTATE – Commercial real estate lenders, spooked by the state of residential housing, are reining in riskier loans on fears that underwriting standards were too loose.
SUBPRIME MORTGAGES – Banks hope that a fund created to spread out balance sheet losses over time will prevent turmoil in mortgage-backed securities from further spilling into other parts of the credit market. But analysts say that while the fund should help avert a short-term crisis, the jury is still out on whether it will be successful over the long haul.
SHORT SALES – The niche market of short selling is keeping pace with rising foreclosures. Short selling occurs when a homeowner sells for less than what is owed on the mortgage –a last-ditch resort sellers use to avoid foreclosure when they are having a financial hardship. Many real estate associates are getting specialized training on the short-sale process. The question remains though, does the real estate associates have sufficient background and knowledge to properly handle the short sale effectively.
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