Tag Archives: South Salem Homes for Sale

It’s official: JPMorgan signs $13B RMBS settlement | South Salem Real Estate

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Mega bank JPMorgan Chase (JPM) signed an agreement with government agencies to end all existing legacy mortgage-backed securities issues for $13 billion.

New York Attorney General Eric Shneiderman, who co-chairs a working group overseeing legacy mortgage investigations, announced the deal, calling it the largest settlement with a single entity in American history.

Schneiderman chairs the RMBS working group, which has spent the past year investigating RMBS issues on behalf of state and federal regulators. The bank reached the deal with the RMBS Working Group, the Department of Justice, and countless other agencies.

The settlement reportedly resolves federal and civil claims related to the bank’s packaging, marketing, sale and issuance of mortgage-backed securities prior to the housing downturn. It also covers legacy issues left over from Bear Stearns and Washington Mutual, two entities JPM took over in the wake of the financial meltdown.

As part of the final agreement, JPMorgan will pay $9 billion, while also providing $4 billion in consumer relief in the form of loan modifications for borrowers at risk of foreclosure.

New York state alone will receive $1 billion from the settlement, including $613 million in cash and another $400 million in consumer relief for struggling borrowers in the state.

Some of the aid will fund families impacted by Superstorm Sandy, with the rest going to legal services and counseling for distressed New York homeowners.

The RMBS Working Group that Schneiderman co-chairs helped usher in the deal. The organization is a joint state and federal effort launched back in 2012 to engage several agencies in the fight against legacy RMBS issues. Those entities include the Department of Justice and various federal and state law enforcement groups.

“Since my first day in office, I have insisted that there must be accountability for the misconduct that led to the crash of the housing market and the collapse of the American economy,” said Attorney General Schneiderman in a statement. “This historic deal, which will bring long-overdue relief to homeowners around the country and across New York, is exactly what our working group was created to do.”

 

 

 

http://www.housingwire.com/articles/28036-its-official-jpmorgan-signs-13b-mbs-settlement-deal-with-the-doj

Dive Into Rental Listings Across Miami’s History | South Salem NY Real Estate

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In Miami, renting an apartment always had a certain appeal, and was marketed—with reservations—towards tourists. Renting for the winter season was a halfway point between hotels and owning property. A renter was already someone who came to Miami Beach but who wasn’t ready, or perhaps couldn’t afford, to commit to purchasing.

It was a strange middle-space that ad-men marketed to with pretty ads, showing the beautiful spaces one could occupy, but without full embrace, and always next to the much flashier, much bigger, and much more glamorous ads of those spaces one could own. We tore through old issues of the Miami News on the Google News Archives. So here we present, without further ado, a selection of apartment advertisements from some key boom times in Miami’s history, the 20s, the 40s, and the 50s.

  • A ceiling fan, gas heating, closet space, jalousies!
  • The Carl T. Fisher company, builders of Miami Beach, which placed many, many luscious advertisements for land for sale, limited their rental advertisements to modest, one column listings in the classified section. Bias much?
  • It’s a ‘cooperative apartment’, a.k.a. a Co-op, not actually a rental and a total rarity in Miami.
  • Towards the middle of the century oceanfront, and near-to-oceanfront apartments became more common. An extension of the resort hotel experience, the resort ‘apartment’ duplicated the hotel but one lived there on a longer term basis. You’d rent an apartment for the season, or perhaps buy a condo.
  • The real money was always, of course, in real estate for purchase, not rent. From the beginning realtors and builders knew this. Although you could rent a garden apartment in Coral Gables, what they really wanted you to do was buy. The Biltmore wasn’t built in the middle of a residential neighborhood for nothing.

 

 

http://miami.curbed.com/archives/2013/11/18/dive-into-rental-listings-across-miamis-history.php

More properties going to the auction block as judicial foreclosure states clear backlogs | South Salem Real Estate

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Foreclosure backlogs continue to ease in states where courts handle the process as the number of properties headed to the auction block climbed for the 16th month in a row in October, according to the latest report from foreclosure data aggregator RealtyTrac.

Overall U.S. foreclosure activity — filings of default notices, scheduled auctions and bank repossessions — rose 2 percent from September to October, but was down 28 percent year over year. Filings came in on 133,919 U.S. properties, or 1 in every 978 units. Florida, Nevada, Maryland, Ohio and Illinois posted the nation’s highest foreclosure rates among states.

But the total number of scheduled judicial foreclosure auctions, or “notices of foreclosure sale,” increased 7 percent on an annual basis last month and 10 percent on a monthly basis to 30,023. Judicial foreclosure states with the biggest annual spikes in auctions included Maryland (up 177 percent), Delaware (up 142 percent), New York (up 98 percent), New Jersey (up 97 percent), Pennsylvania (up 58 percent), Connecticut (up 35 percent), and Florida (up 32 percent), RealtyTrac said.

“The backlog of delayed judicial foreclosures continues to make its way through the pipeline, with many of these properties now being scheduled for the public auction after starting the foreclosure process last year or earlier this year,” said Daren Blomquist, vice president at RealtyTrac, in a statement.

“Lenders are likely moving these properties more rapidly to the public auction given that there is strong demand from institutional buy-to-rent investors at the auction and that rising home prices mean more of the loan losses can be recouped, either by selling to an investor at the auction or by repossessing the property and reselling as bank owned.”

 

 

 

 

– See more at: http://www.inman.com/2013/11/13/more-properties-going-to-the-auction-block-as-judicial-foreclosure-states-clear-backlogs/#sthash.O8QuuyEh.dpuf

Even as Housing Prices Rise, Mortgage Rates Should Stay Low | South Salem Real Estate

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The real estate market is stabilizing, as more foreclosures and short sales leave the market, and mortgage rates look fairly low going forward.

One fly in the ointment: Home prices may be rising, so buyers don’t want to wait too long to lock down a good property before prices rise too high next year — a real possibility.

The evidence? Two reports out signaling lower mortgage rates but higher home prices.

First up is data from the California Association of Realtors, which reports that housing affordability in California has fallen for a sixth-straight quarter.

That could lead to many homebuyers being locked out in a state that includes three of the most visible housing markets in the nation — San Francisco, Los Angeles and San Diego.

According to the association, only 32% of Golden State homebuyers can afford to buy a median-priced single-family residence. That’s down significantly from the third quarter of 2012, when that figure stood at 49%.

What does it take to handle a median-price home in California these days? The association estimates it takes at least an income of $89,000 for a new home valued at $433,940. The monthly payment would clock in at $2,230 after a 20% down payment and an interest rateHYPERLINK  \l “” of 4.36%.

Compare that with the third quarter of last year, when the median home price in the state wa$339,930 and the bottom-line annual incomeHYPERLINK  \l “” to buy a property in that price range was only $65,828.

The association says every major regional housing market in the state saw home prices rise by 10% or more from last year to this year.

That sobering news is countered by data from Toronto’s RateSupermarket.com, a home mortgage Web exchange that shows mortgages rates in the U.S. and Canada should remain low well into next year.

“Canadian and U.S. bond yields remain low due to assurances that economic stimulus will remain for the longer term in both countries,” the company says in a report out this week. “This will lead to continued downward pressure on yields and, as a result, moderate discounts to fixed mortgage rate options.”

 

 

http://www.thestreet.com/story/12106829/1/

NAR takes steps to build ‘Rockefeller Center’-like headquarters in Chicago | South Salem Realtor

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Chicago may have its own Realtor Plaza in the not-too-distant future, modeled on New York’s iconic landmark, Rockefeller Center. Cheers and applause followed a vote by the board of directors of the National Association of Realtors today in which the board approved a redevelopment project for the trade group’s Chicago headquarters at 430 North Michigan Ave.

The project would involve demolishing the existing building, which is more than a half-century old, and combining it with an adjoining parcel to create a mixed-use development that would include retail, condominiums, a flagship hotel, and office space. NAR currently has a nonbinding understanding with a partner to build the project.

The trade group’s leaders declined to name the partner at today’s meeting. Pamela Monroe, chair of NAR’s Real Property Operations Committee, said the unidentified entity is “a world-class partner with premium credentials” that is “very private” and “extremely well-capitalized.”

“Our No. 1 priority is to maintain a permanent high-quality, high-productive work environment of which members and staff can be proud,” Monroe said, adding that other priorities include opportunities for branding and a return on investment.

NAR Treasurer Bill Armstrong noted that he and NAR CEO Dale Stinton had been in discussions with the partner for “a long time,” but had been prohibited from mentioning the project to members due to nondisclosure agreements.

The partner, which has “billions to invest,” proposed a 93-story, 2 million-square-foot building that would be a “Rockefeller Center-type venue,” Armstrong said.“This is one really exciting project we are trying to look into. The economics are very,very good,” he added.

 

 

– See more at: http://www.inman.com/2013/11/11/nar-takes-steps-to-build-rockefeller-center-like-headquarters-in-chicago/#sthash.V7yrz5Pf.dpuf

Home equity lines due for reset may be looming financial disaster | South Salem Real Estate

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Could the real estate market be heading for a new financial storm? Maybe.

Some mortgage and credit experts worry that billions of dollars of home equity credit lines that were extended a decade ago during the housing boom could be heading for big trouble soon, creating a new wave of defaults for banks and homeowners.

That’s because these credit lines, which are second mortgages with floating rates and flexible withdrawal terms, carry mandatory “resets” requiring borrowers to begin paying both principal and interest on their balances after 10 years. During the initial 10-year draw period, only interest payments are required.

But the difference between the interest-only and reset payments on these credit lines can be substantial — $500 to $600 or more per month in some cases. If borrowers cannot afford or choose not to make the fully amortizing payments that reduce the principal debt, the bank that owns the note can demand full payment and foreclose on the house if there is sufficient equity.

According to federal financial regulators, about $30 billion in home equity lines dating to 2004 are due for resets next year, $53 billion the following year and a staggering $111 billion in 2018. Amy Crews Cutts, chief economist for Equifax, one of the three national credit bureaus, calls this a looming “wave of disaster” because large numbers of borrowers will be unable to handle the higher payments. This will force banks to either foreclose, refinance the borrower or modify their loans.

But refinancings often will not be possible, Cutts says, because the homeowners won’t qualify under the tougher mortgage rules taking effect in January, or the combined first and second mortgages may exceed the value of the house. Complicating matters further, interest rates are likely to rise from their current low levels as the Federal Reserve tapers its purchases of Treasury and mortgage-backed securities. Higher base rates would make the payment shocks even worse. Plus, according to Cutts, many of the owners with high-balance credit lines already have low credit scores — legacies of the housing bust and recession — and have an elevated statistical risk of default after the reset.

Financial regulators, including the comptroller of the currency, are aware of the coming bulge in high-risk resets and have been urging the biggest banks to set aside extra reserves for possible losses. Last month, Citigroup said it was increasing reserves on its nearly $20 billion in home equity lines and acknowledged that the reset payment shocks for borrowers could be a major challenge.

 

 

 

http://www.latimes.com/business/realestate/la-fi-harney-20131110,0,6997479.story#axzz2kHRdpZUW

Survey shows most brokers don’t fear Zillow, Trulia and realtor.com, but they get most leads elsewhere | South Salem Real Estate

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A survey of real estate brokers’ attitudes toward national listing portals like Zillow, Trulia and realtor.com shows that while most don’t feel threatend by them, they’re not depending all that heavily on them for new business, either.

The survey, by Bellevue, Wash.-based Imprev Inc., a provider of integrated marketing tools, also found that while brokers are generally satisfied with the quality of “leads” they get from national sites, they’re less thrilled with the job their agents do following up on them.

The bottom line was that brokers still see traditional methods of drumming up business like open houses, yard signs, walk-in business and getting in touch with past clients as a better value than national portals.

The online survey of more than 260 brokers and franchise executives, conducted in October,  found that among the top three national listing portals — Zillow, Trulia and realtor.com — realtor.com was seen in the most positive light.

That’s perhaps not surprising, given the site’s formal ties to the National Association of Realtors. Zillow, Trulia and other property search portals not operated by a real estate broker are often referred to by industry insiders as “third-party” websites.

While 24 percent of those surveyed had a “negative” (8 percent) or “somewhat negative” (16 percent) view of realtor.com in terms of how the site impacts or could impact their business, Zillow and Trulia tallied higher “fear factor” scores.

 

 

 

– See more at: http://www.inman.com/2013/11/06/survey-shows-most-brokers-dont-fear-zillow-trulia-and-realtor-com-but-they-get-most-leads-elsewhere/#sthash.uMBIrVjF.dpuf

August Values Rose in Fewer Local Markets | South Salem NY Homes

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Prices increased on a month-over-month basis in 253 of the top 300 markets, fewer than 293 in July, according to Homes.com’s Local Market Index for August.

The downtrend in the number of markets that gain monthly is likely due to both seasonal trends and the state of recovery for these markets. Of the 47 markets that saw declines last month, 40 percent have fully recovered their decline in home prices from the housing bubble, while another 28 percent were found to be unaffected by the boom-bust scenario, illustrating that the weakness is a result of leveling off in home prices.

As a complement to Local Market Index, Homes.com publishes an exclusive Rebound Report, highlighting how the housing recovery process is unfolding across the country. It measures each market’s peak-to-trough decline in index value, which had been attributed to the bursting of the U.S. housing bubble.

Rising home values in the third quarter saw four more top 100 markets reach full recovery. More than a quarter of the top 100 real estate markets have now fully recovered the value they lost in the housing crash. Nearly half of the remaining markets have recovered 50 percent of their lost value, increasing by four markets from the previous month.

Twenty-two midsized markets showed little to no effect from value lost in the 2007 housing bubble and experienced more stable changes in index values. Half of those 22 bubble-proof markets are from Texas, and more than 70 percent are from energy producing states where typical housing boom-bust scenarios did not occur. The remainder of midsized markets showed 51 markets, or 29 percent, with a 100 percent recovery and 94 markets with a 50 percent or more recovery.

“We found the effects of the housing boom-bust lingering in some areas because of the instability they suffered and the long, steep price slope needed for rebound.  While these particular markets are improving somewhat, higher rates of negative equity increase risk of foreclosure and can lock move-up buyers-who are also sellers-out of the marketplace, thus slowing overall recovery in certain local areas. Yet other markets that did not experience the bursting bubble to the same degree are in a better position to take full advantage of the recovery.  Their prices are appreciating faster, and they are rebounding earlier,” said Brock MacLean, executive vice president of Homes.com.  “The important thing to realize is that all markets are in some form of recovery, and different factors contribute to recovery scenarios across the country.  With data from the top 300 markets, the Homes.com Local Market Index and Rebound Report analyze trends in local communities where millions of Americans live-key trends missed by other real estate reports.”

 

http://www.realestateeconomywatch.com/2013/10/6784/

 

Gruesome incidents may not be disclosed to homebuyers | South Salem NY Real Estate

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Halloween is upon us and some house hunters out there may be wondering what spooky things have occurred in the homes they’re eyeing. Tales of haunted real estate abound at this time of year, and they are often tied to a particularly traumatic incident in a home’s history. But the reality is that most prospective buyers may not find out about any such incident unless they ask.

In most states, a murder, suicide or other violent crime occurring in a home does not have to be disclosed, Walt Molony, spokesman for the National Association of Realtors, told USA Today.

Most lawmakers agree the psychological damage of such an incident in a home would not be a material defect that should be required to be disclosed to buyers, the paper said.

But at least one case is heading to a state supreme court next month. In 2007, Pennsylvania homeowner Janet Milliken found out her home, purchased the year before, had been the scene of a murder-suicide after experiencing several disturbing incidents in the home, including the sound of a gun clicking.

She filed suit against the former owner of the house and the real estate agents involved in the deal, alleging fraud and breach of the state’s real-estate disclosure law.

Source: USA Today

– See more at: http://www.inman.com/wire/gruesome-incidents-may-not-be-disclosed-to-homebuyers/#sthash.CgJAr5ol.dpuf