An increasing number of appraisers and consumer experts say unrealistically low price estimates caused by short sales and bank-owned foreclosures are artificially depressing property values.
They are particularly critical of broker price opinions (BPOs), which they say are used because they cost less than property valuations by licensed appraisers.
David Berenbaum, executive vice president of the National Community Reinvestment Coalition, has asked Congress to outlaw using BPOs as a substitute for appraisals in distressed property transactions.
Defenders of BPOs say that real estate professionals know the local area and can do a realistic appraisal accurately.
The National Association REALTORS® said it intends to issue a policy statement in May, but it currently takes no position.
Source: Washington Post Writers Group, Kenneth R. Harney (03/28/2009)
Saturday, March 28, 2009
Friday, March 27, 2009
Banks Spend Billions to Help Troubled Borrowers
JP Morgan Chase & Co. is opening 24 offices nationwide to help home owners facing foreclosure.
"The idea is to reach people who are in trouble--many who may have gone into avoidance mode," spokeswoman Nancy Norris says. "We hope this personal, face-to-face service will enable us to help more of our customers."
JPMorgan Chase and Wells Fargo received $25 billion in federal bailout funds. Bank of America and Citigroup each got $45 billion.
Norris says Chase expects to use this money to help about 700,000 mortgage customers – a total of $110 billion in home loans – by the middle of 2010. In total, Chase has 10.4 mortgage customers.
Some observers are dubious that even this well-funded plan will work.
"Unfortunately, we tend to be a little cynical about these efforts," says Daren Blomquist, a spokesman for RealtyTrac, a research company that tracks foreclosures. "It seems that everything thrown at the problem so far has not been too successful."
Source: Orlando Sentinel, Richard Burnett (03/27/2009)
"The idea is to reach people who are in trouble--many who may have gone into avoidance mode," spokeswoman Nancy Norris says. "We hope this personal, face-to-face service will enable us to help more of our customers."
JPMorgan Chase and Wells Fargo received $25 billion in federal bailout funds. Bank of America and Citigroup each got $45 billion.
Norris says Chase expects to use this money to help about 700,000 mortgage customers – a total of $110 billion in home loans – by the middle of 2010. In total, Chase has 10.4 mortgage customers.
Some observers are dubious that even this well-funded plan will work.
"Unfortunately, we tend to be a little cynical about these efforts," says Daren Blomquist, a spokesman for RealtyTrac, a research company that tracks foreclosures. "It seems that everything thrown at the problem so far has not been too successful."
Source: Orlando Sentinel, Richard Burnett (03/27/2009)
NAR Warns of Rental Property Scam
The National Association of REALTORS®’ name is being used as part of a property rental scam in which rental property is offered to consumers, who are led to believe that NAR is functioning as an intermediary to receive rental deposits from prospective tenants.
“NAR is not involved in this business and has contacted law enforcement officials to request that the matter be investigated. We encourage any consumers who may be affected to file a complaint,” says NAR President Charles McMillan.
The scam claims that on receipt of a deposit, NAR will deliver the keys to the property to the tenant. Prospective tenants are instructed to send money via Western Union to NAR’s purported agent in the United Kingdom.
Some of the listings have been posted on Craigslist, which reportedly has had difficulty in tracing the original listings. NAR does not have an escrow service, or function as an intermediary to receive rental deposits.
Consumers who have encountered this scam may file a complaint with the Internet Crime Complaint Center, sponsored by the Federal Bureau of Investigation and the National White Collar Crime Center.
“Our mission is not only to protect consumers in the real estate transaction, but also guard them against fraud,” McMillan says.
Source: NAR
“NAR is not involved in this business and has contacted law enforcement officials to request that the matter be investigated. We encourage any consumers who may be affected to file a complaint,” says NAR President Charles McMillan.
The scam claims that on receipt of a deposit, NAR will deliver the keys to the property to the tenant. Prospective tenants are instructed to send money via Western Union to NAR’s purported agent in the United Kingdom.
Some of the listings have been posted on Craigslist, which reportedly has had difficulty in tracing the original listings. NAR does not have an escrow service, or function as an intermediary to receive rental deposits.
Consumers who have encountered this scam may file a complaint with the Internet Crime Complaint Center, sponsored by the Federal Bureau of Investigation and the National White Collar Crime Center.
“Our mission is not only to protect consumers in the real estate transaction, but also guard them against fraud,” McMillan says.
Source: NAR
Picking Real Estate Pros Is for the Dogs
When Candy Spelling, the widow of legendary Hollywood producer Aaron Spelling, decided to sell her home, she let her dog pick out the real estate professional for the job.
Spelling asked her security service to bring her beloved Wheaten Terrier Madison in each time she met a candidate and watched how the dog reacted. If Madison did not respond pleasantly, she took the individual off the list.
Sally Forster Jones, an associate with Coldwell Banker Previews International in Beverly Hills, was the winner. She will co-list the 56,500-square-foot mansion, known as “The Manor” in the exclusive Holmby Hills neighborhood of Los Angeles, for $150 million, making it the most expensive house on the market in the U.S.
Both Spelling and Jones told the Associated Press that they are unsure how many rooms the 56,500 square feet, three-story mansion has.
Source: The Associated Press, Alex Veiga (03/27/2009)
Spelling asked her security service to bring her beloved Wheaten Terrier Madison in each time she met a candidate and watched how the dog reacted. If Madison did not respond pleasantly, she took the individual off the list.
Sally Forster Jones, an associate with Coldwell Banker Previews International in Beverly Hills, was the winner. She will co-list the 56,500-square-foot mansion, known as “The Manor” in the exclusive Holmby Hills neighborhood of Los Angeles, for $150 million, making it the most expensive house on the market in the U.S.
Both Spelling and Jones told the Associated Press that they are unsure how many rooms the 56,500 square feet, three-story mansion has.
Source: The Associated Press, Alex Veiga (03/27/2009)
Monday, March 23, 2009
Tenants Losing Out From Foreclosures
Foreclosures are turning inner-city tenants into homeless and shelter residents.The problem is particularly acute in Los Angeles, where the city council recently halted evictions to buy time to solve the problem.
In Chicago, the Cook County Sheriff’s Department has now required banks to give a four-month notice of eviction since the number of foreclosure-related evictions has tripled in two years to 4,500 in 2008.
Boston has battled the problem by aggressively supporting tenants’ rights, including allowing tenants in buildings with no heat to order heating oil and bill the buildings’ owners.
Most of the problems stem from banks that don’t want to be landlords or hire property managers, says Dustin Hobbs, spokesman for the California Mortgage Bankers Association.
Source: The Associated Press, Christina Hoag (03/23/2009)
In Chicago, the Cook County Sheriff’s Department has now required banks to give a four-month notice of eviction since the number of foreclosure-related evictions has tripled in two years to 4,500 in 2008.
Boston has battled the problem by aggressively supporting tenants’ rights, including allowing tenants in buildings with no heat to order heating oil and bill the buildings’ owners.
Most of the problems stem from banks that don’t want to be landlords or hire property managers, says Dustin Hobbs, spokesman for the California Mortgage Bankers Association.
Source: The Associated Press, Christina Hoag (03/23/2009)
Friday, March 20, 2009
Cramdown Bill Stalled in Senate
The plan to allow judges to write down mortgage debt for people in bankruptcy court, a practice known as “cramdowns,” is stalled in the U.S. Senate.
The measure has passed the House already, but will need 60 votes to gain Senate approval. Senate Democrats have been unable to get a handful of moderates from both parties to agree to vote their way. Some lawmakers say the rule would penalize borrowers who have kept current with their mortgage payments.
President Obama included the cramdown idea as part of his broader housing plan.
Banks and other financial institution oppose court-ordered mortgage workouts because they say they it increases the risk for lenders and ultimately will raise mortgage rates.
Source: The Wall Street Journal, Elizabeth Williamson (03/20/2009)
The measure has passed the House already, but will need 60 votes to gain Senate approval. Senate Democrats have been unable to get a handful of moderates from both parties to agree to vote their way. Some lawmakers say the rule would penalize borrowers who have kept current with their mortgage payments.
President Obama included the cramdown idea as part of his broader housing plan.
Banks and other financial institution oppose court-ordered mortgage workouts because they say they it increases the risk for lenders and ultimately will raise mortgage rates.
Source: The Wall Street Journal, Elizabeth Williamson (03/20/2009)
Thursday, March 19, 2009
Mortgage-Help Site, Call-in Number Go Live
The U.S. Treasury Department went live on March 19 with its Making Home Affordable program, which aims to help home owners refinance or modify their mortgages.
The campaign includes a Web site at makinghomeaffordable.gov as well as a telephone hotline number at (888) 995-4673.
The federal government is targeting 9 million home owners whose loans are held by Fannie Mae or Freddie Mac.
Source: Indianapolis Star (03/19/09)© Copyright 2009 Information Inc.
The campaign includes a Web site at makinghomeaffordable.gov as well as a telephone hotline number at (888) 995-4673.
The federal government is targeting 9 million home owners whose loans are held by Fannie Mae or Freddie Mac.
Source: Indianapolis Star (03/19/09)© Copyright 2009 Information Inc.
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