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Daily Real Estate News | February 3, 2010 | Share
Lifeline Needed for Underwater Home Owners
An estimated 4.5 million home owners owe 75 percent more than their homes are worth. That number is likely to peak at 5.1 million in June, affecting 10 percent of home owners and making them increasingly likely to just walk away.
''We're now at the point of maximum vulnerability,'' says Sam Khater, a senior economist with First American CoreLogic, the firm that conducted the recent research. ''People's emotional attachment to their property is melting into the air.''
Consultants at Oliver Wyman calculated that 17 percent of owners defaulting in 2008 –about 588,000– chose to default even though they could pay.
First American estimates that it would cost about $745 billion – about the same as the original 2008 bank bailout – to restore all underwater borrowers to the break-even point.
Doing so would be seen as highly unfair by many taxpayers, says Michael S. Barr, assistant Treasury secretary for financial institutions, but doing nothing would be another blow to a fragile economy.
Source: The New York Times, David Streitfeld (02/022010)
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Adjusted for inflation, housing prices are still 15 percent to 20 percent higher than they were in the mid-1990s, calculates housing economist Dean Baker, co-director of the nonpartisan Center for Economic and Policy Research.
“There’s no plausible fundamental explanation for that,” he says.
Baker believes economic fundamentals translate to a weak recovery at best. “People who say this is a temporary story, there’s no real reason to believe anything like that,” he says. “If anything, I expect housing to be weaker than normal rather than stronger over the next decade.”
Baker is opposed to the housing tax credit.
"As a matter of policy I can’t see that we want people to buy a house in 2009 that’s 10-20 percent higher than it would sell for in 2011,” he says. “In so far as the FHA was encouraging people to buy homes in bubble markets that were not deflated, that’s not good for the FHA and you didn’t help the home owner. We didn’t do those people a favor.”
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Ten Inexpensive Ways to Wow Buyers Now is the time for home owners contemplating a spring sale to
spruce up their properties in anticipation of what Mike Larson of Weiss Research
calls a potentially vibrant home-selling season. "If you have been beating your
head against a wall, this is going to feel a lot better,” he
jokes.Here are 10 cheap ways to make a
property more attractive to shoppers.
- Improve first impressions. Touch up the paint on the front door and other areas that buyers see
first.
- Clean up the landscaping. Trim the hedges and trees and plant some annuals in the
flowerbeds.
- Paint the interior. A coat of light yellow or cream with contrasting white woodwork
looks fresh and clean.
- Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them
professionally cleaned.
- Take care of the big problems. If the house needs a roof or the front stoop is crumbling,
get them fixed.
- Buy warranties. Putting appliances under warranty gives homebuyers a secure
feeling.
- Improve energy efficiency. New windows or improved insulation tell a potential buyer the
seller is on top of things plus they come with tax benefits.
- Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer,
create a good first impression.
- Buy a stove.
Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred
dollars by buying a new stove, which gives the room a fresh feel.
- Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained
sinks.
Source: U.S. News &
World Report, Luke Mullins (01/21/2010)
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Big Lake, Sherburne County
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Announcing a price reduction
on 433 Eagle Lake Road S, a 1,530 sq. ft., 1 bath, 3 bdrm 4-level split. Now
MLS®
$129,900
- Beautiful 4 Level Home.
Property information
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The number of consumer loans that are going bad is leveling off, reports Bank of America, Wells Fargo and other large banks, signaling that the worst could be over.
Bankers reported that credit quality is stabilizing with lending losses expected to peak this year.
But analysts warned that any new hit to the economy could reverse the trend with all aspects of the recovery dependent on an improving employment picture.
“In the second half of the year, it will be more and more important for the overall economy to improve at a faster clip,” says Anthony Polini, a banking analyst at Raymond James.
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6 Surprising Facts About the Buyer Tax Credit The homebuyer tax credit is not as simple or straightforward as you might think. Here are some nuances that will affect homebuyers who plan to use it. To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively. Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them. Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months. The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify. The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild. A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.
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Beautifully Landscaped Yard
• 2,500 sq. ft., 3 bath, 4 bdrm bi-level
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MLS®
$169,900
- Just Reduced must see!
Sauk Rapids, Benton County
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1 Year Home Warranty being offered with acceptable offer!
Large home on a Beautifully Landscaped lot. This is a 4 bedroom 3 bath home. Master bedroom has a 3/4 master bath. Kitchen is newly remodeled. The upper living room has vaulted ceilings for that very open feel with a wood fireplace. The lower level L-Shaped family room also has a wood fireplace is very good size for those family get togethers. This home also offers a very nice and open four season addition that leads out to the large backyard with a seperate patio area. This is truly that one house you just do not want to miss seeing!
Property information
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Sauk Rapids, Benton County
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Announcing a price reduction
on 942 1st Ave N, a 2,500 sq. ft., 3 bath, 4 bdrm bi-level. Now
MLS®
$169,900
- Just Reduced must see!.
Property information
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Little Falls, Morrison County
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Announcing a price reduction
on 903 1st Ave NE, a 1,376 sq. ft., 1 bath, 3 bdrm single story. Now
MLS®
$95,000
- Nice Sized Rambler.
Property information
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| 29 | 30 | 1 | 2 | 3 | 4 | 5 | | 6 | 7 | 8 | 9 | 10 | 11 | 12 | | 13 | 14 | 15 | 16 | 17 | 18 | 19 | | 20 | 21 | 22 | 23 | 24 | 25 | 26 | | 27 | 28 | 29 | 30 | 31 | 1 | 2 | | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
Sauk Rapids, Benton County
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We invite everyone to visit our open house at 942 1st Ave N on
December 12
from 1:00 PM to 2:30 PM.
Property information
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East St. Cloud, St. Cloud - Sherburne County
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Announcing a price reduction
on 2262 Liberty Glen Loop, a 1,740 sq. ft., 2 bath, 3 bdrm 2 story. Now
MLS®
$99,900
- 2 Story Townhome.
Property information
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| 29 | 30 | 1 | 2 | 3 | 4 | 5 | | 6 | 7 | 8 | 9 | 10 | 11 | 12 | | 13 | 14 | 15 | 16 | 17 | 18 | 19 | | 20 | 21 | 22 | 23 | 24 | 25 | 26 | | 27 | 28 | 29 | 30 | 31 | 1 | 2 | | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
Sauk Rapids, Benton County
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We invite everyone to visit our open house at 942 1st Ave N on
December 5
from 1:00 PM to 3:00 PM.
Property information
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I recently joined the bone marrow group. If interested on information just send me a quick email
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St. Joseph, Stearns County - Announcing a price reduction on 707 1st Ave SW, a 1,874 sq. ft., 2 bath, 4 bdrm single story. Now MLS® $179,900 - Just Reduced must see!. Property information
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Sauk Rapids, Benton County - Announcing a price reduction on 942 1st Ave N, a 2,500 sq. ft., 3 bath, 4 bdrm bi-level. Now MLS® $179,900 - Just Reduced must see!. Property information
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