Well property taxes do lag home values, which is great in an appreciating market but bad in a depreciating market. “As a rule, city and county assessors reappraise property values annually or biannually, using recent sales of comparable homes in the neighborhood to set values. So in areas that have seen significant drops in home prices, appraisals – and thereby property taxes – could also drop.”
http://money.cnn.com/2009/05/27/real_estate/property_tax_breaks/index.htm?section=money_realestate
This article caught my attention about how Florida is a great place to have a bank. “Florida has a special spot in bank investors’ hearts for one simple reason. It is a burgeoning source of what bankers prize most: low-cost, stable deposits. In banking, loans may get the headlines (especially when, like now, they’re going sour), but it’s those federally insured deposits that are the secret sauce that can make the business so boring and reliably profitable when run properly.”
I would love to know the percentage of loans that were modified that left a borrower with only $300 or so per month in disposable income. This is the real problem. They are modifying them enough. “Yesterday’s Journal reports that Fitch Ratings looked at mortgages bundled into securities between 2005 and 2007 and managed by some 30 mortgage companies. Fitch found that a conservative projection was that between 65% and 75% of modified subprime loans will fall delinquent by 60 days or more within 12 months of having been modified to keep the borrowers in their homes. This is an even worse result than previous reports by federal regulators. Even loans whose principal was reduced by as much as 20% were still redefaulting in a range of 30% to 40% after 12 months.”
This looks like a must read book. “One risk of writing a tell-all book is that someone might accuse you of not telling everything. In “Busted,” Edmund Andrews uses his own personal-finance fiasco to explain America’s home-foreclosure crisis. Mr. Andrews, an economics reporter for the New York Times, doles out what even he calls “cringe-inducing” details about breaking up his marriage, paying too much for a house and falling hopelessly behind on his mortgage payments. Even so, a blogger for the Atlantic has called him out for failing to mention that his second wife has declared bankruptcy twice, once after her marriage to Mr. Andrews — a detail that, if included in the book, could have drained some of the sympathy that readers might feel for this couple.”
As I have mentioned numerous times before, it has never been a more affordable time to own a home according to the Home Affordability Index.
That is what this article from CNBC states. My thoughts are that most people who were going to fall behind already have unless of course the borrower can pay and decides to walk away due to being so upside down. And I guess of course due to unemployment. Now that I think about it more, I guess it might get worse.
Apparently not and that is what I am seeing too. “Mortgage-servicing companies are struggling to find the best way to modify mortgages so that borrowers can stay in their homes, according to a Fitch Ratings report expected to be released this week.”
This is good news for renters. “Buried in a housing law signed this week by President Obama are protections that will help renters stay in their homes after their landlord has been foreclosed on. The law allows tenants to remain in their foreclosed rentals through the end of their lease and then 90 days after that before being forced to vacate by the lender. Renters without leases will have 90 days, a significant improvement over what most received before: almost no notice at all.”
This is a good article however I don’t feel as though you can benefit from this 10% increase in your home’s value due to banks being so strict on appraisals. The banks are helping to drive prices lower just because of this.
“Even today, it’s worth investing in your home’s exterior. Good landscaping adds about 10% to a home’s value, according to a Michigan State report. Plus, you can use your yard to enjoy some R&R. These four homes are on the market now.”
This is a good article however I don’t feel as though you can benefit from this 10% increase in your home’s value due to banks being so strict on appraisals. The banks are helping to drive prices lower just because of this.
“Even today, it’s worth investing in your home’s exterior. Good landscaping adds about 10% to a home’s value, according to a Michigan State report. Plus, you can use your yard to enjoy some R&R. These four homes are on the market now.”
In tough times you have to think outside of the box and be creative. “a small but growing number of homeowners who are turning to the Internet to swap properties. The sites — there are about a dozen — allow interested homeowners to browse potential swaps narrowed by giving preferences like price range, number of bedrooms and bathrooms, and city of choice. The homeowner also creates an account with the same information for others to browse.”
Located in South Florida, Justin Miller has established himself as a leader in the mortgage community for his expert advice and understanding of the current real estate climate. Contact him.
Jonathon Becker (Coastal Credit Clinic): Justin- GREAT blog post! This is a HUGE questions many of my clients h...
Sean: Justin- Great article...would be great to understand the differences i...
Phil Himes: You are so correct! Many of my clients are currently looking at purch...
Stock quote: Good blog post, nice efforts. It couldn’t appear to have been penned a...
Upside Down Guy: This sounds like a great program for someone like me but my lending in...