Gingrich took in only $638,830 in that month. Gingrich’s largest — $1.03 million — is to Moby Dick Airways, a private jet company. Gingrich also owes a great deal to himself: $580,134. Among Gingrich’s other debts are the $16,525 he ...
British Land's Asset Values Stagnate as Retail Properties Slip Bloomberg
(BLND), the UK's second- largest real estate investment trust, said net asset value was little changed in the quarter through March as gains on office developments were matched by a drop for retail properties. Net asset value rose to 595 pence a share ...
Economists more upbeat about job growth, housing CBS News
NEW YORK — A new survey shows economists are growing slightly more optimistic about recovery in the job and housing markets but expect other pillars of the economy to remain weak. The National Association for Business Economists says in a report ...
A legislative panel called to rescue two stalled foreclosure-prevention bills is bogged down, and Gov. Jerry Brown wants to use part of California's share of the national mortgage settlement to trim the state's budget deficit. SACRAMENTO — Efforts to ease California's foreclosure woes, among the worst in the nation, are running into roadblocks at the state Capitol.
China Money Rate Trades Near 1-Year Low on Rate-Cut Expectation Bloomberg
China's benchmark money-market rate traded near the lowest level in 12 months on speculation the central bank will lower interest rates to support economic growth. Morgan Stanley economists led by Helen Qiao said the central bank may cut both lending ...
Convention center paradox: doing well, but deep in debt Lancaster Newspapers
From a debt standpoint, however, the convention center appears headed for a fiscal cliff. Nearly $64 million in debt hangs over the center, and interest rates have gone up, even as the hotel tax revenues used to make bond payments and fund operations ...
David Jones Seen Luring LBO on Lowest Value Since '04: Real M&A Bloomberg
With Australia's central bank now cutting interest rates, and David Jones in need of a turnaround, now is the time for potential buyers to look, according to Commonwealth Bank of Australia. David Jones' real-estate portfolio is “something tangible that ...
Business Beat: Leesville real estate agent makes national '30 Under 30' list Alexandria Town Talk
Each spring, the magazine selects 30 young Realtors "who are successful in the real estate business and have demonstrated skill, success, creativity, and leadership in their careers." This year's honorees are featured in the May/June issue of Realtor, ...
Mortgage rates dipped again, for the sixth week in a row, pushing the rate on the most common type of mortgage below 4 percent for the first time in the history of Bankrate's survey.
The residential mortgage-foreclosure crisis was good for business at Ahome Affordable Homes in Millville. Make that too good: After several years of growth, the respected nonprofit agency, which had assisted at least 2,100 people facing foreclosure since 2009, laid off four counselors and several other staff members last month because its funding couldn’t keep up with the demand for services.
OBC cuts interest rate on education loans by up to 1% Zee News
New Delhi: State-owned Oriental Bank of Commerce (OBC) has reduced interest rate on education loans by up to 1 percent. "We have slashed rates on education loans across the board effective May 15," OBC Chairman and Managing Director SL Bansal said.
Economists are not using the word “bubble,” even though the real estate picture in American farmland sort of looks like one. Farmland values are up around 20 percent or more in the Midwestern corn belt in the first quarter of the year.
Low interest rates mean good time to refinance LubbockOnline.com
“Today is a very low interest rate environment, and many people should look at refinancing their mortgage if they have a high rate,” Hein said. “A 30-year mortgage today can get about 4 percent. Compare the mortgage interest rate you're paying to that, ...
Oklahoma real estate value includes oil, gas Enid News & Eagle
From AP OKLAHOMA CITY — A largely unseen business has helped fuel Oklahoma's economic power alongside commercial real estate's steady contribution. Oil and gas drilling and mining have accounted for 10 percent of the state's gross domestic product the ...
Understanding Mortgage Rates NASDAQ
Everyone wants to get the lowest mortgage rate they can when buying a home or refinancing their current home loan. But chasing after the lowest rate can be a sucker's game.That's because the lowest interest rate doesn't necessarily mean the least ...
Real Estate Capital Firm Offering Commercial Mortgage Financing for Assisted Living Facilities and Health Care Properties Clopton Capital, a secondary market commercial lender which provides commercial real estate loans for income producing properties nationwide, is announcing the expansion and addition of loan options for developers and owners of assisted living facilities and health care ...
Eurozone Debt Crisis Part 1: When Mexico was Greece and the US was Germany Forbes
Low interest rates combined with hearty risk appetites almost inevitably lead to credit bubbles. Eager investors or lenders seeking yield on the one hand, and professional politicians with election promises to keep on the other, make for great tango ...
The Homes.org weekly mortgage rate report helps buyers and sellers keep updated on what is happening with mortgage interest rates across the nation. The report provides details on what’s impacting today's mortgages - the latest economic activity, current average rates and forecasts for what's likely to happen in the mortgage market.(PRWEB) May 19, 2012 Homes.org mortgage report is delivering ...
The Intriguing Real-Estate Sale at Capmark Barron's
Capmark Financial Group, a former major commercial-real-estate lender, whose failure wiped out investors at the height of the financial crisis, could make at least partial amends over the next two or three years. Started 18 years ago as GMAC Commercial ...
Keystone Real Estate: Give your property an advantage Summit Daily News
These would be perfect buyers who could easily pay full price for each property — again, resort real estate or otherwise. In reality, however, even in today's market with financing at approximately 4 percent for a 30-year-fixed-rate loan, ...
Washington Real Estate Investment Trust Amends and Extends Credit Facility EON: Enhanced Online News (press release)
In addition, the amendment lowers the interest rate to LIBOR plus a margin of 107.5 basis points (previously 122.5 basis points) based on WRIT's current credit rating and eliminates the requirement for guarantees from WRIT's subsidiaries under certain ...
SHERMAN OAKS, Calif., May 18, 2012 /PRNewswire/ -- National real estate expert and sales guru Steve Harney and best-selling author and Prospect Mortgage's Chief Performance Officer Todd Duncan will co-host ...
Interest rates for CCC loans announced Leesville Daily Leader
By Staff reports Commodity Credit Corporation's (CCC) variable interest rate for 2011 commodity loans disbursed in May 2012 is 1.125 percent per annum. CCC's commodity loan program for corn, cotton, rice, grain sorghum, soybeans, sugar, wool, honey, ...
Here at Curbed celebrity real estate is a dime a dozen, from tales of woe, to multimillion-dollar transactions, to sports stars trading one massive mansion for another. How can one make sense of all these famous people buying and selling properties? Enter the Celebrity Real Estate Heat Map. Below, please find the 20 hottest stories from the past few months, taking place as close as Connecticut and as far away as Hawaii. Of course, NYC and Los Angeles are veritable epicenters of celebrity real estate madness, so be sure to zoom in on those cities closely. See someone missing? Leave 'em in the comments.
A number of high street lenders have reduced their loan-to-values, slimmed porting options and raised interest rates in recent weeks Banks and building societies are introducing "stealth" changes to their mortgage ranges to make it harder for borrowers to qualify for loans, as well as increasing their interest rates. Since the credit crunch lenders have been operating strict lending criteria ...
The Association of Landlords Sure maybe theres more pain to come in the housing market But when Time magazine starts running covers that declare Owning a home may no longer make economic sense its time to say Enough is enough...
Celine Dion has listed her 24,000-square-foot private island estate, located some 15 minutes from Montreal, for 29.3M, and one really has to wonder: what would the 24,000-square-foot private island estate of a Vegas headliner who wore a "seven-pound tiara composed of 2,000 Austrian crystals" for her wedding and was once fined for using 6.5M gallons of water a year to fill her pool at her Florida compound actually look like?
Yup, exactly. According to the Wall Street Journal, Dion and husband René Angélil have been spending more time south of the Canadian border recently, which is why they're trying to unload the French Normandy-style castle. In addition to the dizzingly opulent interiors, the pop star will also leave behind Persian rugs, linens, china, flatware, art, and her massive collection of antique furniture, which are all included in the purchase price. Some standout details: a foyer with inlaid marble floors, a dungeon-like stone wine cellar, and a pool house with its own kitchen. All this on an 830,000-square-foot private island that's accessible only by a gated bridge. Don't worry, though, "a helipad can be created to make access by air possible."
With Facebook shares set to begin trading, well, right around now, it only makes sense to take a look around Silicon Valley, where Facebook's IPO is set to ignite the real estate market. According to recent reports, sellers in the Palo Alto area have been anxiously anticipating the flood of newly minted millionaires and speculators have already driven prices up by 10 percent. For all the conjecture, only now will we find out if these Facebook kids have a taste for luxury real estate. To make things a little easier on them, we've picked out five of Silicon Valley's finest—or at least most expensive—properties, starting with this, the Buck Estate. Built in 1934 for a wealthy San Francisco industrialist as a summer retreat, the English country-style residence lies less than eight miles from Facebook headquarters and features the sort of old world finishes that are hard to come by, even for the super wealthy. Currently listed for almost $11M, the 16,900-square-foot, six-bedroom mansion could use some (presumably expensive) TLC on the inside, but otherwise looks fit for a king, as well it should, because the Buck Estate was modeled after "Hampton Court in Middlesex, England, a 16th century royal family residence."
↑ For even more seclusion, we head to the hills of Portola Valley, Calif., where the Villa Lauriston has been languishing on the market, awaiting just this sort of flood of cash. Currently listed for $15.95M, a discount of more than $4M off its 2010 asking price, the villa was built for San Francisco businessman and noted perfectionist Herbert Edward Law and once home to William Randolph Hearst's attorney, who is thought to have burned the "Rosebud" papers in the basement furnace. The 1926 stone structure, with seven bedrooms and ten baths, sits on 28 private acres of hillside.
↑ For something much more modern, befitting a social networking exec, this Swatt Miers-designed contemporary mansion, listed for $19.8M and set on a hilltop in Atherton, checks all the boxes. Known as the Oz Residence, the house sits on 2.6 treed acres and utilized the finest materials in its construction, like Honduran mahogany and African walnut. Partly inspired by the Museum of Modern Art, these sleek accommodations include five bedrooms, four bathrooms, and 9,300 square feet of living space.
↑ Though designed and built in 2008, this Atherton estate doesn't skew quite as modern as the last one, but still carries the sky-high listing price of $15.8M. Built from stone with Post and Beam influences, the 8,100-square-foot main house includes five bedrooms and 4.5 baths, while the grounds are complemented by a broad stone patio with swimming pool and dense plantings that ensure privacy. Luxury finishes abound, with French limestone lining the fireplaces, mahogany windows and doors, and 10-inch-wide plank floors of white oak. The one-acre lot is also home to a one-bedroom guest house and an in-law apartment.
↑ For the thrifty member of the nouveau riche looking to score a deal on their next mansion, this Woodside spread might be just the thing. The 13,000-square-foot French-style estate was built in 1929 and recently listed for as much as $21M, with seven bedrooms and nine bathrooms on roughtly five acres of land, nine miles from Facebook HQ. Le Soleil, as the property is known, is set to be auctioned off to the highest bidder on June 14, which makes this a good fit for a Facebooker, provided one of his or her colleagues doesn't swoop in and pay the "buy it now" price of $12.95M.
Rate Survey: Credit Card Interest Rates Stay Flat a 5th Week Fox Business
By Kelly Dilworth Interest rates on new credit card offers remained unchanged for the fifth straight week, according to the CreditCards.com Weekly Credit Card Rate Report. The national average annual percentage rate (APR ) on new card offers stayed put ...
Washington Real Estate Investment Trust Amends and Extends Credit Facility MarketWatch (press release)
In addition, the amendment lowers the interest rate to LIBOR plus a margin of 107.5 basis points (previously 122.5 basis points) based on WRIT's current credit rating and eliminates the requirement for guarantees from WRIT's subsidiaries under certain ...
James Monahan, 42, New York, New York, the owner of a real estate investment company called Panam Management Group Inc., and Edward Adams, 69, New York, New York, an attorney, have been arrested on mail and wire fraud charges for allegedly operating a fraudulent real estate scheme.
Rosa Galope, Surprise and Avondale, Arizona, had a complaint filed against her alleging that she defrauded homeowners looking for help in obtaining mortgage modifications and saving their homes from foreclosure.
Loan Rate Increase Sparks Concerns Georgetown University The Hoya
By Meghan Patzer The looming expiration of the interest rate for Stafford loans on July 1 has university administrators and student representatives concerned. Stafford loans, which comprise subsidized and unsubsidized student loans granted by the ... Ultimatum: Cut Health Care Or We'll Let Student Loan Rates DoubleBob Englehart | Englehart's View (blog)
These are mortgage foreclosures filed with the civil division of the Circuit Court in November. Names in bold are the subject of or have an interest in the foreclosure action. Lighter names filed the foreclosure action.
(Reuters) - Billionaire investor Warren Buffett sought to buy Residential Capital (ResCap) from Ally Financial before the U.S. auto and mortgage lender put its home-lending unit into bankruptcy, Bloomberg said, citing three persons familiar with the matter. The news agency said Warren Buffett, Berkshire Hathaway Inc's controlling shareholder, appointed investment manager Ted Weschler for talks ...
HOUSING: Foreclosure rate half of what it was a year ago North County Times (blog)
The foreclosure rate in April was half what it had been 12 months earlier in both North San Diego and Southwest Riverside counties, hinting that a six-year foreclosure crisis may be drawing to a close, analysts and data indicated Thursday. A housing...
RATES DROP AGAIN: Average U.S. rates for 30-year and 15-year fixed mortgages fell to record lows for the third straight week, according to a survey by mortgage buyer Freddie Mac.RECORD LOWS: The rate on ...
-Central VA real estate news, trends and opinions » read more ..
Highlights:
- Days on Market (an inherently flawed data point, yet still relevant trend) are down in Charlottesville, Albemarle and Fluvanna.
- Average Sales prices are down (not surprising)
- Total sales across the MSA are down (not surprising)
- Total inventory is down. (this may not be a good thing, but so far this year, it has been perceived as good in Charlottesville) see: Reason & Matrix
Thoughts/initial conclusions:
- More buyers are looking to be closer in/closer to stuff
- Good properties are selling and selling quickly
- Interest rates remain low – a good thing for buyers.
- I think we may have pulled the spring market forward a bit; the early spring may have pulled transactions into the earlier months of the year.
Dead simple Takeaways:
- Buyers: do your due diligence, don’t let emotion enter the equation and make sound, rationale decisions with the intent of holding the property for at least five to seven years
- Sellers: do your due diligence and realize that buyers most often don’t have to buy, but want to buy – it’s your job to make them want to buy your house. This means: price, presentation, perfection … and a great location and setting.
Marshall C. Ezell, III, Georgia, pled guilty to four counts of Residential Mortgage Fraud (O.C.G.A. § 16-8-102) for making false statements during the mortgage lending process.
WASHINGTON, May 17 (UPI) -- Average mortgage rates for long-term, fixed-rate loans fell to record lows for the third consecutive week, the Federal Home Loan Mortgage Corp. said.
Mortgage rates have continued to fall over the past week, setting record lows for both 30-year and 15-year contracts, mortgage giant Freddie Mac said Thursday. The 30-year benchmark now stands at 3.79 percent, down from 3.83 percent a week ago, with an average "point" fee of 0.
Mortgage rates hit record lows in the week ending May 17, with the 30-year fixed-rate mortgage average falling to 3.79% from 3.83% in the prior week, Freddie Mac said Thursday in its weekly report.
Average U.S. rates for 30-year and 15-year fixed mortgages fell to record lows for the third straight week. The rate on the 30-year loan dipped to 3.79 percent. The 15-year mortgage, a popular option for refinancing, declined to 3.04 percent.
Britain's Daily Mailreported earlier this week that embattled Hollywood starlet Lindsay Lohan was renting this hillside villa in Beverly Hills for $25K per month. While this is indeed Lohan's walled retreat, she is apparently paying far less than the claimed $25K for the pleasure of staying there. According to E! and The Real Estalker, Lohan, who dropped out of her rehab program at the Betty Ford Clinic due to financial difficulties, is probably spending more like $9K per month for the glamorous, if not gigantic, pad. The house does have plenty of space for Lohan's family, with four bedrooms and five baths, but few flashy features beyond the sizable swimming pool.
· Lindsay Lohan Leases in Beverly Hills [The Real Estalker]
· Revealed: Lindsay Lohan embraces love of old school Hollywood glamour by renting $25,000 a month Beverly Hills bolthole [Daily Mail]
We need local news reporting; here’s hoping the Berkshire Hathaway purchase provides better local news writing and reporting by the DP.
For those of you interested in the residential real estate market, today’s interest rates (~4%) look pretty good in comparison, don’t they?
The $400 million first lien term loan will have an interest rate of 10.5 percent, which could step down to 9 percent if total leverage were to reach 3.50x. The new loan will be issued at a discount of 11.5 percent and is secured pari passu with the company’s existing 11-3/4 percent senior secured notes due 2017. The closing date of the new credit agreement is expected to be no later than May 24. The existing term loan in the amount of approximately $364 million will be fully repaid the same day the new credit agreement becomes effective. Media General now expects total cash interest expense in 2012 will be approximately $67 million. Total interest expense, including non-cash amortization of issue discount, new issuance fees, and the warrants, is expected to be $80 million in 2012.
David C.H. Lin, 44, Sunnyvale, California, an attorney, was convicted by a federal jury of conspiracy to commit mail and wire fraud, and multiple counts of mail and wire fraud in connection with his role in a private money lender scheme.
Tashia Winstanley, 38, Holly, Michigan, and her company, TLW Mortgage Solutions, face criminal charges for her role in a foreclosure-rescue fraud operation that scammed at least 60 victims across the state out of $250,000.
Can you imagine what your life would be like if you didn't have to send checks to creditors and lenders every month? How much money you'd be able to put aside for retirement, vacation, and other goals?
East Allegheny budget keeps real estate tax rate steady Pittsburgh Post Gazette
By Anne Cloonan East Allegheny school directors have approved a $30.7 million preliminary budget for the coming 2012-2013 school year that would hold real estate taxes at 27.54 mills. Toni Valicenti, district business manager, said estimated expenses ...
In a case started from a review of SARs, a specialized mortgage fraud task force launched an investigation that led to charges against two individuals.
It’s time to share my Three Cents Worth on Curbed NY, at the intersection of neighborhood and real estate in the capitol of the world. And I’m simply here to take measurements.
Since the Euro is creaking under the prevailing sentiment that Greece will flee, I thought it would be interesting to take a look at how Manhattan looks from Europe and the UK’s perspective. I threw in Canada and Australia for good measure. I applied their currencies against the US dollar and the Manhattan inflation adjusted average sales price (dark blue line)…
In the past few days there have been some pretty serious announcements of high end sales in the Manhattan apartment market. First there was the $52M co-op sale at 740 Park Avenue and then there was the $70M condo sale at 50 Central Park South. The former was a record – the highest sales price of a co-op apartment in Manhattan history and the second was a near record sale for a Manhattan condo. One could say this $70M sale was the highest arm’s length condo sale in history since it appears from what I’ve read that the $88M sale at 15 CPW a few months ago was more of a global divorce strategy play.
In appraising we use the “paired sale” technique to extract what certain amenities are worth. One could argue that these 2 recent sales were very similar:
Both were about 10,000 square feet.
Both are duplexes (2 levels).
Both had terraces.
Both located on well known streets/addresses.
Both were located in pre-war buildings.
Both sold at about the same time.
Both appeal to an affluent buyer who doesn’t require financing.
Simplistically speaking the key differences are the form of ownership (co-op v. condo) and the view. The 50 CPS property has full frontage on Central Park, the most sought-after view in Manhattan. The 740 Park Avenue is located on the 12th and 13th floor has city views that do not clear the roof lines of most buildings in the immediate area.
In our market, the premium for a Central Park view can be about 25% of an apartment’s value. In our co-authored research paper on Manhattan co-op v. condo value with NYU Furman Center, the inherent difference in value between a co-op and condo after controlling for all differences is about 9%.
25% + 9% = 34%
This 34% total is pretty consistent with the 34.6% difference between the $52M co-op and the $70M condo sales prices.
So the numbers aren’t so crazy after all.
Wynn lands Ritz-Carlton penthouse for $70M [The Real Deal]
Park Avenue co-op sells for record $52.5 million [CNN/Money]
Fertilizer King Rybolovlev Sued By Wife For $88 Million 15 CPW Purchase [NYO]
The Condominium v. Cooperative Puzzle: An Empirical Analysis of Housing in New York City [Miller Samuel]
Interest Rate Roundup Mortgages CDs Auto Loans Home Equity Credit Cards Find the best mortgage rates in your area. Mortgages 3.97% (30-year fixed) 0.44 (average points)Mortgage rates reached record lows, ...
Other data also pointed to recovery in the market. The delinquency on U.S. home mortgages fell in the first quarter to the lowest level since 2008, though the share of homes in the process inched higher, the ...
Flagler County foreclosure rate worst in Florida Daytona Beach News-Journal
By TOM KNOX, Business writer It's the second time this year that the county earned the distinction. The county had the worst rate in February, too. The county has continually ranked near the top of the foreclosure heap since the housing market streaked ...
Chile Seen Leaving Rates on Hold as Global Woes Threaten Growth Bloomberg
Chile's central bank will leave its benchmark interest rate unchanged for a fourth straight month today as Europe's debt crisis deepens, dimming growth prospects in the world's top copper producer, a survey showed. Policy makers, led by bank President ...
Interest Rate Cut to Benefit Homeowners San Francisco Chronicle (press release)
Leading mortgage broking group, The Mortgage Gallery Rockingham assists clients in order to help them take advantage of the new interest rate adjustments in the banking sector. Perth, Western Australia (PRWEB) May 17, 2012 The Mortgage Gallery ...
No Need to Raise Malaysian Interest Rates, Governor Zeti Says Bloomberg
Zeti Akhtar Aziz, Malaysia's central bank governor, comments on interest rates, inflation, economic growth and consumer debt. She made these remarks in a Bloomberg Television interview in Istanbul. On whether there's a need for monetary policy ...
U.S. mortgage delinquency and foreclosure rates have fallen to their lowest levels since 2008, according to a new Mortgage Bankers Association (MBA) report.
NEW YORK, May 16, 2012 /PRNewswire/ -- Mortgage rates fell for the seventh time in the past eight weeks and set a new record for the fourth consecutive week. The average rate on the benchmark 30-year fixed ...
Greater Toronto Realtors reported 5,142 transactions through the TorontoMLS System during the first 14 days of May 2012. This result was up by more than 14.5 per cent in comparison to the first 14 days of May 2011. The number of new listings continued to grow at a slower pace than sales – up 13 per cent year-over-year to 8,749.
“Annual growth in sales was experienced across the GTA for all major home types in the first half of May. Sales growth was strongest for the condominium apartment segment. While the condo market has generally been the best supplied market over the past year, we have continued to see enough demand to exert moderate upward pressure on average selling prices in this market segment,” said Toronto Real Estate Board President Richard Silver.
The average selling price for transactions in the first 14 days of May was $517,242 – up by six per cent compared to the same period in 2011.
“A shortage of listings in the low-rise segment of the market has resulted in a lot of competition between buyers and above average annual rates of price growth. Tight market conditions are expected to remain in place for the balance of 2012,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Yesterday, after news broke that Ryan Seacrest dropped $37M on Ellen DeGeneres and Portia de Rossi's Beverly Hills compound, an anonymous Curbed commenter mused: "I can't imagine that Ellen is going to be living full time in Malibu"—you'll recall that she just bought Brad Pitt's place there—"what can you really upgrade to from here??????"
To answer your question, bro, it turns out the comedian—and recent winner of the Kennedy Center's Mark Twain Prize for American Humor—and her actress wife are rumored to have purchased another place in Beverly Hills for somewhere in the range of $17M to $18M. According to The Real Estalker, the glassy midcentury modern was originally designed in 1958 by Hal Levitt (these days, he's quite a popular architect with the celebrity set), featured in a 2001 Versace ad campaign, and previously owned by celebrity decorator Kelly Wearstler, who did up the place in her signature, blinged-out maximalist style before photographing it for a decorating monograph.
The 8,500-square-foot main house has only four bedrooms—quite a lifestyle change from the nine DeGeneres and de Rossi enjoyed at the place they just sold to Seacrest—but plenty of space for their famous art collection, not to mention some gorgeous-looking landscaping and a modern marble pool. Wonder if that stainless steel kitchen comes with the private chef (above, second listing photo, above). The place was listed for "From $20,000,000," so there's a good chance he got cut out of the deal.
Last week, I stood in the long line at the Phoenix Sky Harbor security checkpoint like a lamb being led to slaughter. The short line, the one that guys in fancy suits get to use, was strictly forbidden because I didn’t know the secret handshake. I also lacked preferred silver diamond elite status.
I boarded the plane with the Zone 5’ers and passed by the first class passengers as they sipped their free booze and closed multi-million dollar deals on their smartphones. Worse, these stuffy elitists refused to make eye contact with me as I made my way to coach, where I would go to suffer with the rest of the commoners for the next three hours.
Then it dawned on me as I took my middle seat in aisle 27. I’m a 2nd class citizen of the air travel world.
In case you haven’t heard the news, the greater-Phoenix area is a seller’s market again. Inventory levels are down and prices are up. Cash buyers accounted for 40% of all sales in March. And this new phenomenon has turned FHA loan approved buyers into the 2nd class citizens of the housing market.
Why?
For starters, FHA loan approved buyers have very little, if any, cash to put down on their home purchase. In rapidly appreciating markets like Phoenix it’s difficult for appraisers to keep up with values. If you’re a home seller or fix and flipper like me and are under contract with an FHA buyer what happens if your house doesn’t appraise for the offer price? You either lower it to match the appraised value or put the house back on the market. Neither option is very attractive.
If you’re a home seller and are under contract with an FHA buyer and the house does appraise you’re still not out of the woods. The FHA requires a second appraisal, usually ordered about 5-7 days prior to closing. The FHA honors the lower of the two.
Then there’s the inspection. The FHA has a laundry list of stuff that must be done in order for them to approve a buyer’s loan. Last year, I flipped a house to an FHA approved buyer that didn’t ask for any repairs. After the home inspection was complete the FHA came back and required I fix a bunch of stuff – to the tune of $1,500. Even worse, they had to send the inspector back at my expense to verify the items had been corrected, which pushed out the closing one week.
This is why many FHA borrowers are getting squeezed out of the market. They are the last people a home seller wants to deal with. Sellers here know that over asking price offers likely won’t appraise. The only way to get a deal done is to find a cash buyer, or a conventional buyer with enough cash to cover the difference if the appraisal comes back low.
So if you’re an FHA approved buyer what do you do?
I recommend you put more money down. That lets the seller know you can at least make up some of the difference if the appraisal doesn’t match the offer price. If you don’t have any money to put down then save some and buy later. Homeownership is not a life or death proposition.
The alternative is you get treated like a 2nd class citizen. But take it from me; it’s not that bad. Just be prepared to wait in a long line before finally getting to your seat.
Originally posted on Phoenix Real Estate Guy. If you are reading this anywhere but inside your RSS feed reader or your email client, the site you are on is guilty of stealing content.
WASHINGTON, May 16 (UPI) -- The Mortgage Bankers Association said U.S. mortgage activity rose 9.2 percent in the week ended Friday with interest rates hitting record lows.
New App Helps Real Estate Agents and Investors Project Cash Flows MarketWatch (press release)
Capital expenditures can be projected by year and by tenant. Projected sale value can be based on price appreciation, capitalization rate, or even a discount rate with perpetual growth formula. It is probably the only real estate app that can project ...
In another flicker of hope for the battered housing markets, home loans in foreclosure or at least one payment past due have declined to the lowest level since 2008, according to a Mortgage Bankers Assn. delinquency report .
The number of depository institution SARs identifying Mortgage Loan Fraud as a Characterization of Suspicious Activity continued to rise (up 30.6% in calendar year 2011).
Looks like Ryan Seacrest didn't pay quite what Ellen Degeneres and Portia de Rossi wanted for their sprawling Beverly Hills compound: the Journal has reported the final sale at $37M. In what universe is that a steal? One where the property was originally hoping to snag a buyer for $60M. [previously; WSJ]
James D. Levitt, 66, Pawtucket, Rhode Island, a disbarred real estate attorney, was sentenced in U.S. District Court in Providence to 12 months and one day in prison and fined $25,000 for his role in a $1.1 million mortgage fraud scheme.
NEW YORK, NY-- - High yielding mortgage REITs have performed admirably in 2012. The Vanguard REIT ETF is up more than 12 percent-year-to-date. REITS have continued to take advantage of low interest rates ...
When June Snow first looked into refinancing her interest-only mortgage, she was told it would be impossible because the value for her three-bedroom, two-bath ranch style home was not in the necessary range.
Applications for U.S. home mortgages surged last week, driven by increased demand for refinancing as interest rates hit fresh lows, an industry group said on Wednesday. The Mortgage Bankers Association ...
Ashley Lacerda, 32, Egg Harbor Township, New Jersey; Francis Santore, 52, Northfield, New Jersey; and Brian Corley, 27, Egg Harbor, New Jersey, are being arraigned on charges of conspiracy to commit mail and wire fraud, mail and wire fraud, and conspiracy to commit money laundering in a $2.6 million time share mortgage fraud.
K&R Marketing LLC, doing business as Fix My Mortgage Problem, is the subject of a civil lawsuit. The lawsuit charges the business and its owner with multiple violations of Ohio's consumer laws, including failure to deliver.
The first three months of 2012 brought with it little new momentum. The Eurozone’s debt debacle remained at the forefront of the global economic agenda, several critical elections were on the horizon (Russia, France, Greece) and Asia’s highly-effective cooling measures showed no sign of being relaxed. Against this backdrop some luxury buyers took to the side-lines to observe their market’s trajectory.
Primary markets seem to be cooling off a bit. I thought the conclusion was quite powerful.
The safe-haven argument still resonates. Capital flight will continue to focus on cities with low political risk, transparent legal systems, good security and ideally those with an HNWI-friendly tax regime.
About five years ago, The New York Observer started a publicity campaign called The Power 100 where they selected 100 notables in New York Real Estate circles, put them on a list and threw a party to build loyalty and hopefully attract advertisers. It was a fun thing to be a part of. It wasn’t scientific and it wasn’t a serious endeavor nor was it taken seriously. It was just fun and created appreciation from those selected.
I was part of the list in three of it’s first four years. Myself and many others blogged about it. The effort got a lot of attention for NYO which was the intent.
I’ve always liked and respected the reporters there (still do) and I love the flagship NYO publication. I’ve subscribed for years and have been a regular source of market information for the publication.
However this year the publisher changed the methodology by switching it to their other publication The Commercial Observer and excluded media types and most residential types unless you owned a brokerage or sold a few apartments north of $20M.
Of course I’m down with that.
However I didn’t expect the publication to be mean about it. (Not to be confused with snark.) The Commercial Observer published a list of who was cast off (your’s truly) without disclosing the methodology change.
Imagine your kid applying to college but they don’t get accepted – only the college decides to publish their name in a list with all those who weren’t accepted?
I’m think the “Out” list is just as interesting as the “In” list – here’s a sample.
Bill Ackman – Pershing Square Capital
Serena Boardman – Sotheby’s
Timothy Dolan – Archbishop, RC Church of NY.
Steve Cuozzo – New York Post
Si Newhouse – Conde Nast
Howard Rubenstein – Rubenstein Communications
Steven Rubenstein – Rubenstein Communications
Sheldon Silver – Speaker NYS Assembly
Lockhart Steele – Curbed Network
Jay Walder – MTA
I’m going to start a new list “The Tepid 25″ since the word “Power” is a bit obnoxious.
0:47
21:56
14:07 
Duh: heirs of billionaires 
1:00
Looks like Ryan Seacrest didn't pay quite what Ellen Degeneres and Portia de Rossi wanted for their 
