GSIG LLC
On February 11th, Great Florida Bank won a $33.7 million foreclosure judgment over the delayed Arden Park (formerly known as Coscan Shefaor) residential project in Hollywood.
This 33-acre project was a joint venture between Aventura-based Shefaor Development and Fort Lauderdale-based Coscan Homes.
The developer bought the property for $10.8 million back in 2005, when it was a mobile home park. One year later, in 2006, Great Florida Bank granted it a $26.6 million mortgage. The developers removed the residents and cleared the site in hope of building more than 153 single-family homes. Shefaor Development’s Web site listed the sellout value of the project at $246.5 million.
The site, at 3499 Stirling Road, is set for public sale on April 13 at 11 a.m. in the Broward County Courthouse.
Friday, February 26, 2010
Palm Beach Home Prices Rise, Broward Prices Fall
GSIG LLC
The Florida Association of Realtors made an error with the Palm Beach County median price for January 2009. The number should have been $232,100. This means Palm Beach County's median rose nearly 3% last month to $238,600 from a year ago.
This is a far cry from the 30% decline that the Realtors' group announced previously. This is the second month in a row that Palm Beach County prices have increased compared to a year ago. In December, the county's median rose 1% to $247,900 from December 2008.
There were no problems with the Broward County figures. In Broward, the January median was $180,000, a 6% decline from a year ago.
Sales of existing homes increased in both counties last month, as they have for more than a year. Sales in Palm Beach County shot up 34% to 546, while Broward sales rose 5% to 492.
Prospective buyers are looking to take advantage of low prices and interest rates. They also want to beat the April 30 deadline for two federal tax credits.
In the existing condominium markets, the median price dropped 14% in Palm Beach County to $93,700, while Broward’s median fell 18% to $69,500. Condo sales skyrocketed by 56% in Palm Beach County and 47% in Broward.
The Florida Association of Realtors made an error with the Palm Beach County median price for January 2009. The number should have been $232,100. This means Palm Beach County's median rose nearly 3% last month to $238,600 from a year ago.
This is a far cry from the 30% decline that the Realtors' group announced previously. This is the second month in a row that Palm Beach County prices have increased compared to a year ago. In December, the county's median rose 1% to $247,900 from December 2008.
There were no problems with the Broward County figures. In Broward, the January median was $180,000, a 6% decline from a year ago.
Sales of existing homes increased in both counties last month, as they have for more than a year. Sales in Palm Beach County shot up 34% to 546, while Broward sales rose 5% to 492.
Prospective buyers are looking to take advantage of low prices and interest rates. They also want to beat the April 30 deadline for two federal tax credits.
In the existing condominium markets, the median price dropped 14% in Palm Beach County to $93,700, while Broward’s median fell 18% to $69,500. Condo sales skyrocketed by 56% in Palm Beach County and 47% in Broward.
Thursday, February 25, 2010
70 Condo Projects in Florida Have Special Fannie Mae Loan Designation
GSIG LLC
Last week, Fannie Mae updated its list of Florida condominiums that have received special loan approvals. These special loans are meant to boost the state’s troubled condo market by giving more buyers access to Fannie mortgages.
Fannie and sister company Freddie Mac buy the majority of the nation's mortgages from lenders. Now 70 developments have a special designation, meaning lenders can originate and deliver mortgage loans in these condos to Fannie Mae.
With the exception of Sandpiper Cove at Botanica (a 265-unit project in Jupiter), all of these developments are located in Miami-Dade County.
Spokeswoman Amy Bonitatibus concludes:
"Stay tuned, Fannie Mae will be approving more projects in Palm Beach and Broward counties in the weeks and months ahead."
Last week, Fannie Mae updated its list of Florida condominiums that have received special loan approvals. These special loans are meant to boost the state’s troubled condo market by giving more buyers access to Fannie mortgages.
Fannie and sister company Freddie Mac buy the majority of the nation's mortgages from lenders. Now 70 developments have a special designation, meaning lenders can originate and deliver mortgage loans in these condos to Fannie Mae.
With the exception of Sandpiper Cove at Botanica (a 265-unit project in Jupiter), all of these developments are located in Miami-Dade County.
Spokeswoman Amy Bonitatibus concludes:
"Stay tuned, Fannie Mae will be approving more projects in Palm Beach and Broward counties in the weeks and months ahead."
54% of Broward Mortgages are Underwater
GSIG LLC
According to year-end data from First American CoreLogic, half of all residential mortgage holders in Broward County owe more than their homes are worth.
Roughly 54% of Broward mortgage holders (246,675 homeowners) are “underwater.” In Palm Beach County, 45.4% of mortgage holders (157,544 homeowners) are also upside-down.
In addition to pulling equity from their homes by refinancing, most people who owe more than their homes are worth, bought at the peak of the housing boom, between 2004 and 2006.
Mark Fleming, chief economist with First American CoreLogic states:
"Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners."
Adding to the housing market's woes, analysts conclude borrowers are more likely to bail on an underwater mortgage.
According to year-end data from First American CoreLogic, half of all residential mortgage holders in Broward County owe more than their homes are worth.
Roughly 54% of Broward mortgage holders (246,675 homeowners) are “underwater.” In Palm Beach County, 45.4% of mortgage holders (157,544 homeowners) are also upside-down.
In addition to pulling equity from their homes by refinancing, most people who owe more than their homes are worth, bought at the peak of the housing boom, between 2004 and 2006.
Mark Fleming, chief economist with First American CoreLogic states:
"Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners."
Adding to the housing market's woes, analysts conclude borrowers are more likely to bail on an underwater mortgage.
Wednesday, February 24, 2010
New Homes Sales Drop 11.2% in January
GSIG LLC
According to the Department of Housing and Urban Development (HUD), new home sales dropped 11.2% to a seasonally adjusted annual rate of 309,000 from December to January.
Originally, December’s estimated rate was 342,000, a drop of 7.6% from November and was later revised to 348,000. January’s rate was 6.1% below the 2009 estimate of 329,000.
HUD stated the median sales price for new homes sold in January 2010 was $203,500, while the average was $254,500. The December median was $221,300 and the average was $290,600.
The seasonally adjusted estimate of new houses for sale at the end of January was 234,000, representing a supply of 9.1 months at the current sales rate. That’s up from an 8.1-month supply in December.
According to the Department of Housing and Urban Development (HUD), new home sales dropped 11.2% to a seasonally adjusted annual rate of 309,000 from December to January.
Originally, December’s estimated rate was 342,000, a drop of 7.6% from November and was later revised to 348,000. January’s rate was 6.1% below the 2009 estimate of 329,000.
HUD stated the median sales price for new homes sold in January 2010 was $203,500, while the average was $254,500. The December median was $221,300 and the average was $290,600.
The seasonally adjusted estimate of new houses for sale at the end of January was 234,000, representing a supply of 9.1 months at the current sales rate. That’s up from an 8.1-month supply in December.
NAR Tells Congress: Turn Fannie and Freddie into Non-Profits
GSIG LLC
Today, the National Association of Realtors (NAR) is recommending to Congress that the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac be converted into non-profit secondary market authorities.
NAR thinks that the current private profit and public loss structure should be removed while Congress and regulators consider restructuring the GSEs.
NAR noted that Fannie and Freddie are “best positioned” to become government authorities, therefore, they should provide a flow of capital into the secondary market regardless of how volatile the mortgage market is.
However, according to the proposal, they would not be federal agencies. Instead, the authorities would function as “self-sustaining” organizations removed of Congressional funds and profit motives.
Nevertheless, NAR called for the government to guarantee businesses of the authorities through the use of mortgage insurance on products with a loan-to-value (LTV) ratio of 80% or higher and mortgage-backed securities (MBS) fees.
According to the proposal:
“NAR believes that any organization with a private profit and public loss structure, as the GSEs are presently structured, is inherently flawed.”
All surplus revenue should be reinvested to accumulate capital in strong markets in order to spark rebounds in weaker markets. NAR also proposed a guarantee from the Federal Deposit Insurance Corp. to attract private market participation.
This article is brought to you by Housing Wire.
Tuesday, February 23, 2010
11.3 Million Homeowners are Upside-Down
GSIG LLC
11.3 million homeowners now owe more on their mortgages than the value of their home. According to research released by First American CoreLogic, “The Sand States” (California, Florida, Arizona and Nevada) are taking four of the top five in negative equity, or underwater markets.
The number of “upside-down” borrowers represents 24% of all residential properties with mortgages in the United States and an increase from 10.7m, or 23% of all residential mortgage borrowers at the end of the third quarter.
Mark Fleming, chief economist with First American CoreLogic states:
“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners. Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come.”
Among the top five states, upside-down mortgages accounted for 42% of all loans, while they only took a 15% share in the remaining 45 states. Nevada, at 70%, was the state with the highest percentage of negative equity borrowers, followed by Arizona (51%), Florida (48%), Michigan (39%) and California (35%).
11.3 million homeowners now owe more on their mortgages than the value of their home. According to research released by First American CoreLogic, “The Sand States” (California, Florida, Arizona and Nevada) are taking four of the top five in negative equity, or underwater markets.
The number of “upside-down” borrowers represents 24% of all residential properties with mortgages in the United States and an increase from 10.7m, or 23% of all residential mortgage borrowers at the end of the third quarter.
Mark Fleming, chief economist with First American CoreLogic states:
“Negative equity is a significant drag on both the housing market and on economic growth. It is driving foreclosures and decreasing mobility for millions of homeowners. Since we expect home prices to slightly increase during 2010, negative equity will remain the dominant issue in the housing and mortgage markets for some time to come.”
Among the top five states, upside-down mortgages accounted for 42% of all loans, while they only took a 15% share in the remaining 45 states. Nevada, at 70%, was the state with the highest percentage of negative equity borrowers, followed by Arizona (51%), Florida (48%), Michigan (39%) and California (35%).
Obama Pledges 1.5 Billion for Upside-Down Homeowners
GSIG LLC
This past Friday, the White House announced a new initiative to help the nation’s hardest hit housing markets. President Obama has allocated 1.5 billion dollars in aid for states where home prices fell more than 20% after the aftermath of the housing bubble and unemployment is high.
Since the Obama Administration’s economic policies began to take effect almost a year ago, home prices across the country are beginning to stabilize. However, local conditions vary considerably, and the administration says price declines, together with the effects of high unemployment, means that many homeowners are still facing serious challenges.
President Obama is setting up an “innovation fund” for state housing agencies to develop assistance programs for upside-down, unemployed homeowners. Based on home price declines and unemployment rates, a formula will be created for allocating funding among eligible states. According to House Speaker Nancy Pelosi, the money will go to support homeowners in California, Nevada, Arizona, Florida, and Michigan.
The Treasury must approve each Housing Finance Agency’s (HFA) program design, which will include programs that address the challenges of second liens and assistance for the unemployed and borrowers who owe more than their home is worth.
The White House said in a statement: “The funds must be used to pay for mortgage modifications or for other permitted uses under federal guidelines.”
Unemployment has hit many home-owners since the recession began two years ago. Those in states where prices have dropped more than 20% often find themselves owing more than the house is worth. In such circumstances, one use of funds would be for HFAs to begin programs to help unemployed homeowners until they have secured a new job.
For states where home prices have crashed, a large percentage of homeowners are finding themselves upside-down on their mortgage. A sale is often difficult to secure because lenders may not agree to a transaction that fails to pay back the mortgage in full. The White House said HFAs should experiment with programs that will help borrowers negotiate with lenders.
State HFAs will determine the priorities facing their local markets. The administration said agencies’ plans will be under strict transparency and accountability rules, with all funded program designs and success measurements posted online.
The Treasury is expected to announce maximum state level allocations in the next two weeks, along with rules governing the submission of program designs by HFAs.
This past Friday, the White House announced a new initiative to help the nation’s hardest hit housing markets. President Obama has allocated 1.5 billion dollars in aid for states where home prices fell more than 20% after the aftermath of the housing bubble and unemployment is high.
Since the Obama Administration’s economic policies began to take effect almost a year ago, home prices across the country are beginning to stabilize. However, local conditions vary considerably, and the administration says price declines, together with the effects of high unemployment, means that many homeowners are still facing serious challenges.
President Obama is setting up an “innovation fund” for state housing agencies to develop assistance programs for upside-down, unemployed homeowners. Based on home price declines and unemployment rates, a formula will be created for allocating funding among eligible states. According to House Speaker Nancy Pelosi, the money will go to support homeowners in California, Nevada, Arizona, Florida, and Michigan.
The Treasury must approve each Housing Finance Agency’s (HFA) program design, which will include programs that address the challenges of second liens and assistance for the unemployed and borrowers who owe more than their home is worth.
The White House said in a statement: “The funds must be used to pay for mortgage modifications or for other permitted uses under federal guidelines.”
Unemployment has hit many home-owners since the recession began two years ago. Those in states where prices have dropped more than 20% often find themselves owing more than the house is worth. In such circumstances, one use of funds would be for HFAs to begin programs to help unemployed homeowners until they have secured a new job.
For states where home prices have crashed, a large percentage of homeowners are finding themselves upside-down on their mortgage. A sale is often difficult to secure because lenders may not agree to a transaction that fails to pay back the mortgage in full. The White House said HFAs should experiment with programs that will help borrowers negotiate with lenders.
State HFAs will determine the priorities facing their local markets. The administration said agencies’ plans will be under strict transparency and accountability rules, with all funded program designs and success measurements posted online.
The Treasury is expected to announce maximum state level allocations in the next two weeks, along with rules governing the submission of program designs by HFAs.
Fannie Mae Opens Help Center in Miami
GSIG LLC
Fannie Mae’s first regional help center for distressed borrowers with mortgages has a new home in Miami.
This center is the first of many to open nationwide. It houses advisors that will meet with borrowers face-to-face to discuss and implement loss mitigation strategies in an attempt to avoid foreclosure.
Fannie Mae is working with major mortgage servicers, as well as civic and community leaders from Miami-Dade County to launch and run the center. The center’s staff can review borrowers’ loans as well as help them prepare a Making Home Affordable workout plan application.
Fannie Mae executive vice president Terry Edwards states:
“The center in Miami and our future centers across the country will build on Fannie Mae’s long-standing community development network and strong partnerships with local governments nationwide. We are committed to helping struggling borrowers understand all of the options available to them to avoid foreclosure and to provide them with the assistance they need in the most streamlined manner possible.”
Officials hope the center will help deter local scam artists that charge fees for modifications and foreclosure prevention services.
Miami-Dade County commissioner Dorrin Rolle concludes:
“Many homeowners don’t realize what their options are before or during the foreclosure process. There are ways to keep your home, and my thanks go to Fannie Mae for assisting families in understanding their mortgage situations are not hopeless.”
This article is brought to you from House Wire.
Fannie Mae’s first regional help center for distressed borrowers with mortgages has a new home in Miami.
This center is the first of many to open nationwide. It houses advisors that will meet with borrowers face-to-face to discuss and implement loss mitigation strategies in an attempt to avoid foreclosure.
Fannie Mae is working with major mortgage servicers, as well as civic and community leaders from Miami-Dade County to launch and run the center. The center’s staff can review borrowers’ loans as well as help them prepare a Making Home Affordable workout plan application.
Fannie Mae executive vice president Terry Edwards states:
“The center in Miami and our future centers across the country will build on Fannie Mae’s long-standing community development network and strong partnerships with local governments nationwide. We are committed to helping struggling borrowers understand all of the options available to them to avoid foreclosure and to provide them with the assistance they need in the most streamlined manner possible.”
Officials hope the center will help deter local scam artists that charge fees for modifications and foreclosure prevention services.
Miami-Dade County commissioner Dorrin Rolle concludes:
“Many homeowners don’t realize what their options are before or during the foreclosure process. There are ways to keep your home, and my thanks go to Fannie Mae for assisting families in understanding their mortgage situations are not hopeless.”
This article is brought to you from House Wire.
Monday, February 22, 2010
Short Sales Will Outnumber REOs in 2010
GSIG LLC
According to a survey conducted by Campbell / Inside Mortgage Finance (IMF) of more than 1,500 real estate agents, short sales accounted for 15.9% of home purchases in January. This surpasses the share of distressed property activity when real estate owned (REO) properties are measured separately. The purchases taken up by short sales surpassed the move-in-ready REO purchases (13.8%) and damaged REO (13.4%).
As recent as November 2009, short sales accounted for 12.4% of purchases, while move-in-ready REO took 12.6% and damaged REO took 12.3%, according to the Campbell/IMF survey. These figures show a reversal from a fresh trend of distressed sales across these categories.
The January survey also showed first-time homebuyers most often purchased short sales. This trend can be attributed to the fact first-time homebuyers tend to only have one sale and closing time line to work around, whereas existing homeowners often have to sell a current residence at the same time.
Thomas Popik, research director for the Campbell/IMF survey states:
“Short sales activity took a temporary dip in November around the expected expiration of the first-time homebuyer tax credit. Few first-time homebuyers wanted to take the chance that their short sale transaction wouldn’t be approved by the November 30 deadline. But now that the tax credit has been extended, we see first-time homebuyers once again snapping up attractively priced short sales.”
Cary Sternberg, Excellen REO president, recently warned the public of the risks involved with short sales. He stated that short sales are likely to be the choice of borrowers deeply upside-down on their mortgages — however, these sellers will likely not be able to become buyers again for two to seven years because of their credit score as well as their record of a short sale. This elimination of home buyers may lead to a greater supply of homes for sale, which could pressure prices further over time. Sternberg concludes: “2010 is looking to be the year of the short sale!”
This article is brought to you by Housing Wire.
According to a survey conducted by Campbell / Inside Mortgage Finance (IMF) of more than 1,500 real estate agents, short sales accounted for 15.9% of home purchases in January. This surpasses the share of distressed property activity when real estate owned (REO) properties are measured separately. The purchases taken up by short sales surpassed the move-in-ready REO purchases (13.8%) and damaged REO (13.4%).
As recent as November 2009, short sales accounted for 12.4% of purchases, while move-in-ready REO took 12.6% and damaged REO took 12.3%, according to the Campbell/IMF survey. These figures show a reversal from a fresh trend of distressed sales across these categories.
The January survey also showed first-time homebuyers most often purchased short sales. This trend can be attributed to the fact first-time homebuyers tend to only have one sale and closing time line to work around, whereas existing homeowners often have to sell a current residence at the same time.
Thomas Popik, research director for the Campbell/IMF survey states:
“Short sales activity took a temporary dip in November around the expected expiration of the first-time homebuyer tax credit. Few first-time homebuyers wanted to take the chance that their short sale transaction wouldn’t be approved by the November 30 deadline. But now that the tax credit has been extended, we see first-time homebuyers once again snapping up attractively priced short sales.”
Cary Sternberg, Excellen REO president, recently warned the public of the risks involved with short sales. He stated that short sales are likely to be the choice of borrowers deeply upside-down on their mortgages — however, these sellers will likely not be able to become buyers again for two to seven years because of their credit score as well as their record of a short sale. This elimination of home buyers may lead to a greater supply of homes for sale, which could pressure prices further over time. Sternberg concludes: “2010 is looking to be the year of the short sale!”
This article is brought to you by Housing Wire.
5 Million Foreclosures Coming Soon!
GSIG LLC
Studies keep showing what we have known for a long time: fighting foreclosures is a pointless and a counter-productive use of resources.
New studies by John Burns Real Estate Consulting and Standard & Poor’s Financial Services deduce that loan modification will only delay the inevitable, resulting in future foreclosures.
The credit bubble allowed home-buyers to buy houses they couldn’t afford and consequently, get in over their heads. It was game over for many of these buyers once prices came down and the refinancing pipeline came to a halt.
Currently, there are around 7.7 million households in some stage of pre-default delinquency.
The latest estimates are for another 5 million delinquent mortgages to go through foreclosure or short sale over the next few years. These 5 million homes will then come out of the shadows and enter the real estate inventory and whatever reluctant progress that has been made in clearing out some of the excess housing inventory will suffer a huge set back.
The WSJ reports that the problem is “largely concentrated in Arizona, California, Florida and Nevada. The shadow inventory is equivalent to 27 months of sales in Orlando, 24 months in Miami and 18 months in Las Vegas.”
The S&P study also says that the “overhang” of foreclosed homes expected to go on the market will result in lower home prices.
Some borrowers are catching up on payments after having their loan terms modified, but S&P says current trends suggest that 70% of such borrowers will eventually re-default.”
When it comes to foreclosures, there is a silver lining — it helps drive over-priced homes towards normal levels, increases sales, and removes the prior excesses from the market.
In conclusion, foreclosures are not pretty or pain free, but they are a necessary part of recovering from a bubble.
Studies keep showing what we have known for a long time: fighting foreclosures is a pointless and a counter-productive use of resources.
New studies by John Burns Real Estate Consulting and Standard & Poor’s Financial Services deduce that loan modification will only delay the inevitable, resulting in future foreclosures.
The credit bubble allowed home-buyers to buy houses they couldn’t afford and consequently, get in over their heads. It was game over for many of these buyers once prices came down and the refinancing pipeline came to a halt.
Currently, there are around 7.7 million households in some stage of pre-default delinquency.
The latest estimates are for another 5 million delinquent mortgages to go through foreclosure or short sale over the next few years. These 5 million homes will then come out of the shadows and enter the real estate inventory and whatever reluctant progress that has been made in clearing out some of the excess housing inventory will suffer a huge set back.
The WSJ reports that the problem is “largely concentrated in Arizona, California, Florida and Nevada. The shadow inventory is equivalent to 27 months of sales in Orlando, 24 months in Miami and 18 months in Las Vegas.”
The S&P study also says that the “overhang” of foreclosed homes expected to go on the market will result in lower home prices.
Some borrowers are catching up on payments after having their loan terms modified, but S&P says current trends suggest that 70% of such borrowers will eventually re-default.”
When it comes to foreclosures, there is a silver lining — it helps drive over-priced homes towards normal levels, increases sales, and removes the prior excesses from the market.
In conclusion, foreclosures are not pretty or pain free, but they are a necessary part of recovering from a bubble.
Foreclosures Expected to Double in 2010
GSIG LLC
Foreclosure experts at USHUD.com predict that there will be a doubling of foreclosure rates this upcoming year. Driven primarily by financial industry practices and changing government policies, they see a convergence of factors aggravating an already devastated housing market in 2010,
USHUD.com CEO Michael Urbanski says the first and most obvious factor is the unemployment rate, which continues to languish in the 10% range nation-wide, and often much higher regionally. He explained that similar unemployment rates have historically affected 20% to 30% of homeowners’ capability to make their scheduled mortgage payments. The second factor is the constriction of lending due to tightening mortgage requirements.
Urbanski states:
“The mortgage pendulum is now swinging too far to the opposite spectrum of what we saw at the height of the real estate market. Lending institutions are creating hurdles so high that it will put qualified home-buyers back six to 12 months in the buying cycle.”
Urbanski also notes that struggling homeowners who seek loan modifications are increasingly experiencing problems qualifying for programs that could fend off foreclosure.
“The current qualifications are so absurd they require the homeowner to prove that they do not need a modification in order to get one,” said Urbanski, calling the results of the administration’s Making Home Affordable program “underwhelming.”
Urbanski, referring to a National Association of Realtors (NAR) study that finds the average U.S. home depreciated 12% from 2008 to 2009, states selling will become an impossible proposition for a growing number of upside-down homeowners.
“Watch the horizon. Left unchecked, the perfect storm may be only one more bad policy away.”
This article is brought to you from DS NEWS
Foreclosure experts at USHUD.com predict that there will be a doubling of foreclosure rates this upcoming year. Driven primarily by financial industry practices and changing government policies, they see a convergence of factors aggravating an already devastated housing market in 2010,
USHUD.com CEO Michael Urbanski says the first and most obvious factor is the unemployment rate, which continues to languish in the 10% range nation-wide, and often much higher regionally. He explained that similar unemployment rates have historically affected 20% to 30% of homeowners’ capability to make their scheduled mortgage payments. The second factor is the constriction of lending due to tightening mortgage requirements.
Urbanski states:
“The mortgage pendulum is now swinging too far to the opposite spectrum of what we saw at the height of the real estate market. Lending institutions are creating hurdles so high that it will put qualified home-buyers back six to 12 months in the buying cycle.”
Urbanski also notes that struggling homeowners who seek loan modifications are increasingly experiencing problems qualifying for programs that could fend off foreclosure.
“The current qualifications are so absurd they require the homeowner to prove that they do not need a modification in order to get one,” said Urbanski, calling the results of the administration’s Making Home Affordable program “underwhelming.”
Urbanski, referring to a National Association of Realtors (NAR) study that finds the average U.S. home depreciated 12% from 2008 to 2009, states selling will become an impossible proposition for a growing number of upside-down homeowners.
“Watch the horizon. Left unchecked, the perfect storm may be only one more bad policy away.”
This article is brought to you from DS NEWS
Friday, February 19, 2010
Delinquencies & New Foreclosures Fall: Is this the Beginning of the End?
GSIG LLC
Both the national residential delinquency rate and new foreclosures initiated dropped in the fourth quarter of 2009. This is a sign that the industry may have finally turned the corner on the housing crisis.
The Mortgage Bankers Association (MBA) says states:
“We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures that started with the subprime defaults in early 2007, continued with the meltdown of the California and Florida housing markets … and culminated with a recession that saw 8.5 million people lose their jobs.”
According to MBA’s fourth quarter report, the national delinquency rate for mortgage loans on residential properties has fallen to 9.47% of all loans outstanding. That’s down 17 points from 9.64% in the third quarter of 2009.
CitiMortgage Unveils Program for Distressed Homeowners
GSIG LLC
Under a new program, distressed Florida homeowners whose loans were financed by CitiMortgage may be able to stay in their homes for a while and avoid the pain of foreclosure proceedings.
This deed-in-lieu program begins TODAY and will be tested in six states, including Florida. It allows those facing foreclosure to remain in their homes for six months, in exchange for signing over their property deeds to CitiMortgage at the end of the period.
According to a news release, “it is designed “to help homeowners make a smooth transition into the next chapter of their lives.”
Deed in lieu of foreclosure is a practice in which homeowners give away their property to the lender, who then sells it to retrieve a part or all of the loan balance owed.
The program comes with several requirements. Such as, the homeowner must hold the first mortgage with a clear title owned by CitiMortgage. Also, they must be at least 90 days delinquent. Finally, there can be no second mortgage.
Borrowers must maintain the property in its current condition and pay all utility costs. Other costs, such as homeowner association and escrow fees, are to be determined on a case-by-case basis.
CitiMortgage will provide a minimum of $1,000 in relocation costs to help borrowers.
So, what’s in it for CitiMortgage? According to Mark Rogers, Citigroups director of public affairs, it spares the lender the cost of going through a foreclosure, which is lengthy and expensive. The value of the home that is maintained does not diminish. “Once the owner moves, we get the property that’s in better condition, so we can immediately market it,” Rodgers said. “It’s much more likely to sell quickly in good condition than in bad condition.”
Scott Coloney, of the Foreclosure Response Team in Fort Lauderdale doesn’t think it’s going to solve the overwhelming problem plaguing the real estate market – the glut of foreclosures.
“The idea is to create transactions. To get the economy going, you need movement.”
CitiMortgage hopes to prevent homes from being added to the backlog by allowing homeowners to stay put for a while. “If we can get them out in a more measured way, we can hopefully avoid that,” Rodgers said.
RealtyTrac just reported that one in every 187 homes in Florida received a foreclosure notice in January.
Under a new program, distressed Florida homeowners whose loans were financed by CitiMortgage may be able to stay in their homes for a while and avoid the pain of foreclosure proceedings.
This deed-in-lieu program begins TODAY and will be tested in six states, including Florida. It allows those facing foreclosure to remain in their homes for six months, in exchange for signing over their property deeds to CitiMortgage at the end of the period.
According to a news release, “it is designed “to help homeowners make a smooth transition into the next chapter of their lives.”
Deed in lieu of foreclosure is a practice in which homeowners give away their property to the lender, who then sells it to retrieve a part or all of the loan balance owed.
The program comes with several requirements. Such as, the homeowner must hold the first mortgage with a clear title owned by CitiMortgage. Also, they must be at least 90 days delinquent. Finally, there can be no second mortgage.
Borrowers must maintain the property in its current condition and pay all utility costs. Other costs, such as homeowner association and escrow fees, are to be determined on a case-by-case basis.
CitiMortgage will provide a minimum of $1,000 in relocation costs to help borrowers.
So, what’s in it for CitiMortgage? According to Mark Rogers, Citigroups director of public affairs, it spares the lender the cost of going through a foreclosure, which is lengthy and expensive. The value of the home that is maintained does not diminish. “Once the owner moves, we get the property that’s in better condition, so we can immediately market it,” Rodgers said. “It’s much more likely to sell quickly in good condition than in bad condition.”
Scott Coloney, of the Foreclosure Response Team in Fort Lauderdale doesn’t think it’s going to solve the overwhelming problem plaguing the real estate market – the glut of foreclosures.
“The idea is to create transactions. To get the economy going, you need movement.”
CitiMortgage hopes to prevent homes from being added to the backlog by allowing homeowners to stay put for a while. “If we can get them out in a more measured way, we can hopefully avoid that,” Rodgers said.
RealtyTrac just reported that one in every 187 homes in Florida received a foreclosure notice in January.
Thursday, February 18, 2010
Countrywide Sending 16.9 Million Dollars to Florida Homeowners
GSIG LLC
Restitution is finally coming for distressed homeowners merely 16 months after Countrywide Financial reached an agreement with the Florida attorney general’s office to settle one of the biggest predatory lending lawsuits in the nation’s history. More than 2,700 Countrywide borrowers in the Sunshine State are being sent foreclosure relief payments from the lender that now goes by the name Bank of America Home Loans
More than $16.9 million will be distributed this week, and each check will be written for just over $6,000. According to Florida Attorney General Bill McCollum: “these checks will make a significant difference for Floridians who are trying to save their homes. This will provide real relief to struggling homeowners and families.”
In July 2008, McCollum filed a lawsuit against Countrywide – then one of the nation’s largest mortgage companies – for allegedly engaging in deceptive and unfair trade practices. The lawsuit claimed Countrywide put borrowers into mortgages they couldn’t afford. That case was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.
In addition to the $16.9 million in payouts to borrowers, the attorney general also obtained $4 million to fund a statewide foreclosure assistance program.
Countrywide’s former chief executive, Angelo Mozilo, was also named in the suit and the civil case against him is still pending in Broward County Circuit Court. The attorney general has also called on Bank of America, which acquired Countrywide after the lawsuit had been filed, to be more responsive to consumers who are trying to modify their loans and save their homes from foreclosure.
Restitution is finally coming for distressed homeowners merely 16 months after Countrywide Financial reached an agreement with the Florida attorney general’s office to settle one of the biggest predatory lending lawsuits in the nation’s history. More than 2,700 Countrywide borrowers in the Sunshine State are being sent foreclosure relief payments from the lender that now goes by the name Bank of America Home Loans
More than $16.9 million will be distributed this week, and each check will be written for just over $6,000. According to Florida Attorney General Bill McCollum: “these checks will make a significant difference for Floridians who are trying to save their homes. This will provide real relief to struggling homeowners and families.”
In July 2008, McCollum filed a lawsuit against Countrywide – then one of the nation’s largest mortgage companies – for allegedly engaging in deceptive and unfair trade practices. The lawsuit claimed Countrywide put borrowers into mortgages they couldn’t afford. That case was resolved in October 2008, and the settlement agreement included a foreclosure relief payment program for Florida homeowners with qualifying Countrywide mortgages.
In addition to the $16.9 million in payouts to borrowers, the attorney general also obtained $4 million to fund a statewide foreclosure assistance program.
Countrywide’s former chief executive, Angelo Mozilo, was also named in the suit and the civil case against him is still pending in Broward County Circuit Court. The attorney general has also called on Bank of America, which acquired Countrywide after the lawsuit had been filed, to be more responsive to consumers who are trying to modify their loans and save their homes from foreclosure.
New FHA Appraisal Guidelines Take Effect
GSIG LLC
On February 15th, 2010, the new Appraiser Independence (ML 2009-28) requirements for Federal Housing Administration (FHA) loans officially took effect. This implementation was originally planned for January 1st, 2010, but was delayed in order to provide the FHA and lenders with extra time to adjust systems to adapt to the changes.
These new guidelines are similar to the Home Valuation Code of Conduct (HVCC), which has been implemented since May 1st, 2009 for Freddie Mac and Fannie Mae loans. Under FHA’s rules, appraisers are required to receive reasonable compensation and cannot be affiliated with lending agencies. In addition, appraisers are required to have higher standards than before. Furthermore, under FHA’s new guidelines, mortgage brokers are prohibited from directly ordering appraisals for FHA loans.
Jeff Schurman, executive director of TAVMA, said the association’s members already have significant amount of FHA-certified appraisers. There are more than 51,000 FHA-approved appraisers nationwide. Based on the vociferous reaction to the HVCC, of which many Appraiser Independence guidelines were mirrored after, Schurman said he expects that mortgage brokers and independent appraisers with strong business ties to brokers and realtors will again protest these changes. He said there would likely be significant pushback and claims from many that the rules will create bottlenecks, shift work to less-experienced appraisers, and delay deals.
More than 60,000 local appraisers currently work with AMCs, which provide 60% of all appraisals in the mortgage industry. Schurman concludes that considering this; it stands to reason that AMCs will have a presence in virtually every market including working on FHA transactions.
On February 15th, 2010, the new Appraiser Independence (ML 2009-28) requirements for Federal Housing Administration (FHA) loans officially took effect. This implementation was originally planned for January 1st, 2010, but was delayed in order to provide the FHA and lenders with extra time to adjust systems to adapt to the changes.
These new guidelines are similar to the Home Valuation Code of Conduct (HVCC), which has been implemented since May 1st, 2009 for Freddie Mac and Fannie Mae loans. Under FHA’s rules, appraisers are required to receive reasonable compensation and cannot be affiliated with lending agencies. In addition, appraisers are required to have higher standards than before. Furthermore, under FHA’s new guidelines, mortgage brokers are prohibited from directly ordering appraisals for FHA loans.
Jeff Schurman, executive director of TAVMA, said the association’s members already have significant amount of FHA-certified appraisers. There are more than 51,000 FHA-approved appraisers nationwide. Based on the vociferous reaction to the HVCC, of which many Appraiser Independence guidelines were mirrored after, Schurman said he expects that mortgage brokers and independent appraisers with strong business ties to brokers and realtors will again protest these changes. He said there would likely be significant pushback and claims from many that the rules will create bottlenecks, shift work to less-experienced appraisers, and delay deals.
More than 60,000 local appraisers currently work with AMCs, which provide 60% of all appraisals in the mortgage industry. Schurman concludes that considering this; it stands to reason that AMCs will have a presence in virtually every market including working on FHA transactions.
South Florida Ranks 4th in HAMP Activity
GSIG LLC
As of last month, only 116,000 of the more than 1 million American homeowners that started the process of modifying their home loans under the government’s Home Affordable Modification Program (HAMP), actually had their mortgages modified as of January 2010. The program was launched last year in an effort to help Americans remain in their homes.
Those are the latest numbers from the U.S. Department of the Treasury, who says the program is just doing what it was designed to do, despite the low numbers.
Phyllis Caldwell, chief of Treasury's Homeownership Preservation Office, states: "Struggling families are receiving payment relief and the housing market is showing signs of stabilization.”
In total, homeowners have been extended nearly 1.3 million offers for trial modifications. Also, 76,000 additional modifications are awaiting the borrower’s signature.
In Florida, there have been 101,971 active trial loan modifications in January. Of them, 14,598 have been permanently modified.
South Florida ranks fourth out of 15 metropolitan areas with the highest HAMP activity, at 4.75. During January, South Florida saw 39,356 active trial modifications, of which 5,143 have been permanently modified.
This past Tuesday, Bank of America stated that through HAMP, their customers had been able permanently modify more than 12,700 mortgages.
As of last month, only 116,000 of the more than 1 million American homeowners that started the process of modifying their home loans under the government’s Home Affordable Modification Program (HAMP), actually had their mortgages modified as of January 2010. The program was launched last year in an effort to help Americans remain in their homes.
Those are the latest numbers from the U.S. Department of the Treasury, who says the program is just doing what it was designed to do, despite the low numbers.
Phyllis Caldwell, chief of Treasury's Homeownership Preservation Office, states: "Struggling families are receiving payment relief and the housing market is showing signs of stabilization.”
In total, homeowners have been extended nearly 1.3 million offers for trial modifications. Also, 76,000 additional modifications are awaiting the borrower’s signature.
In Florida, there have been 101,971 active trial loan modifications in January. Of them, 14,598 have been permanently modified.
South Florida ranks fourth out of 15 metropolitan areas with the highest HAMP activity, at 4.75. During January, South Florida saw 39,356 active trial modifications, of which 5,143 have been permanently modified.
This past Tuesday, Bank of America stated that through HAMP, their customers had been able permanently modify more than 12,700 mortgages.
Zillow: Homeowner Confidence Shrinking
Homeowners in the South Florida are finally coming to grips with the fact that their homes are not worth what they would like them to be. However, according to the Zillow Q4 Homeowner Confidence Survey, the same cannot be said for their level of optimism about the future.
According to this survey, 49% of homeowners in South Florida believe their home's value decreased this past year. That number is up from 45% in the previous quarter.
Stan Humphries, Zillow's chief economist, states:
"Homeowners are finally succumbing to the notion that, in most areas, declining home values over the past year are no longer the exception, they are the rule."
According to this survey, 30%of homeowners in the South believe their home values stayed the same, while 21% believe they increased. However, in reality, just 7% of the homes in South Florida saw their value remain the same. On the flipside, 29% of the homes in South Florida actually increased in value.
When it comes to predicting the future, 13% of homeowners in South Florida felt their home's value would fall even more in the next six months, 49% believe it will stay the same and 38% believe the value will increase.
Nationwide, homeowners confidence during the fourth quarter fell to the lowest level in seven quarters, with just 20% believing their home's value actually rose. However, in reality, 28% of homes increased in value. 50% of homeowners nationwide said their home's value fell. Whereas, 65% of all homes nationwide lost their value.
38% of Americans believe their homes value will increase in the next six months, while 47% believe it will stay the same and 14% see it falling even further.
Stan Humphries, Zillow's chief economist, said that given the positive news that's been reported about the real estate market, he saw reasons for that optimism.
"Almost three times as many people believe their home's value will increase over the next six months as believe it will decrease in value, a level of optimism that is likely to outpace actually performance in the near term."
Last week, Florida Realtors reported sales of single-family homes and condos were up in the fourth quarter in all Miami-Dade, Broward, and Palm Beach Counties, as well as across Florida.
Still, prices remain low, with the median sales price for an existing home in Florida at $140,000 in the fourth quarter, down 13% from a year ago, when it was $160,600.
"Home values in many markets are still under substantial downward pressure from high levels of foreclosures, and we don't believe we'll see a definitive bottom nationally until the second quarter of this year," Humphries said. "We're not out of the woods yet."
FHFA Survey Shows Prices End '09 on Upswing
GSIG LLC
According to the latest government figures, the average price of a house ended 2009 on a positive note, but not much of one.
The Federal Housing Finance Agency reported that the average price of new and used houses sold in the country’s 32 largest metropolitan markets rose 1.3% in December, from $298,200 to $302,100.
While the increase is hardly one get excited over, it was the largest gain recorded in the agency’s quarterly survey in several years.
According to the latest government figures, the average price of a house ended 2009 on a positive note, but not much of one.
The Federal Housing Finance Agency reported that the average price of new and used houses sold in the country’s 32 largest metropolitan markets rose 1.3% in December, from $298,200 to $302,100.
While the increase is hardly one get excited over, it was the largest gain recorded in the agency’s quarterly survey in several years.
Wednesday, February 17, 2010
Inventory of Foreclosed Homes Will Take Almost Three Years to Clear
GSIG LLC
According to a report from the credit rating agency Standard & Poor’s, distressed mortgages facing foreclosure as well as the “shadow inventory” of bank-repossessed properties, will take nearly three years to clear at the current sales rate. The analysts conclude that during this period, many servicers will likely alter their emphasis from mortgage modification to loan liquidation.
The “shadow inventory” of homes consists of delinquent loans and real-estate owned (REO) properties that have not made it on the market. Amherst Securities estimates the total number of homes in this “shadow inventory” at 7 million, while The Royal Bank of Scotland estimates it at 2.7 million, and First American CoreLogic estimates it at 1.7 million.
Standard & Poor estimates the inventory to equal a 33-month supply of homes. However, analysts insist the estimate is actually conservative, as they did not assume homes not showing signs of distress would default and push the overhang of supply even further.
Furthermore, due to political pressure, court delays and servicing backlogs, the flow of foreclosures hitting the market has slowed to a trickle. The delinquent borrowers who have not received a foreclosure, increase the “rapidly” growing shadow inventory of properties.
The report states: “Overall, it is our opinion that recent positive housing reports should not be construed as a sign that the distress in the residential housing market is abating, but rather should be attributed to the temporarily limited supply of homes on the market.”
Moody’s, another credit rating agency, showed that the underwhelming performance of the Home Affordable Modification Program (HAMP), which the US Treasury Department launched in March 2009, will drive down housing prices another 8% from Q409 to the end of 2010.
According to the report, it will take 29 months to clear this supply of homes. Homes are falling into serious delinquency faster than REO transactions are closing. The total balance of seriously delinquent loans reached well over 400 billion dollars through November 2009, while the balance of REO properties reached its peak in September 2008 and declined to 50 billion dollars. On average, 14.5 billion dollars of seriously delinquent loans or REO property liquidates each month.
The other four months worth of supply comes from re-defaults on delinquent loans currently cured – or brought back to current status through a loan modification. Following current trends, S&P analysts predict that 70% of the cured loans will re-default. The total balance of these re-defaulting loans and the current amount of serious distressed loans will reach 473.4 billion dollars, nearly 30% of the total outstanding balance on all privately securitized loans.
“We believe that the recent constriction in the supply of foreclosed homes on the market is a temporary one,” claim the analysts.
With the launch of HAMP, servicers shifted strategy from modification to liquidation. The amount of loans that progressed from seriously delinquent to REO fell to 28% in Spring 2009 from 58% in June 2008. In that time, seriously delinquent loans that cured went from 32% to 58%, according to the report. But analysts found that this shift was only temporary.
“Loan modifications and the observed extension of time distressed loans remained as such may simply have delayed the inevitable, creating the demonstrated shadow inventory of troubled loans,” they wrote. “Ultimately, the majority of the properties these distressed loans represent will likely have to be liquidated.”
According to a report from the credit rating agency Standard & Poor’s, distressed mortgages facing foreclosure as well as the “shadow inventory” of bank-repossessed properties, will take nearly three years to clear at the current sales rate. The analysts conclude that during this period, many servicers will likely alter their emphasis from mortgage modification to loan liquidation.
The “shadow inventory” of homes consists of delinquent loans and real-estate owned (REO) properties that have not made it on the market. Amherst Securities estimates the total number of homes in this “shadow inventory” at 7 million, while The Royal Bank of Scotland estimates it at 2.7 million, and First American CoreLogic estimates it at 1.7 million.
Standard & Poor estimates the inventory to equal a 33-month supply of homes. However, analysts insist the estimate is actually conservative, as they did not assume homes not showing signs of distress would default and push the overhang of supply even further.
Furthermore, due to political pressure, court delays and servicing backlogs, the flow of foreclosures hitting the market has slowed to a trickle. The delinquent borrowers who have not received a foreclosure, increase the “rapidly” growing shadow inventory of properties.
The report states: “Overall, it is our opinion that recent positive housing reports should not be construed as a sign that the distress in the residential housing market is abating, but rather should be attributed to the temporarily limited supply of homes on the market.”
Moody’s, another credit rating agency, showed that the underwhelming performance of the Home Affordable Modification Program (HAMP), which the US Treasury Department launched in March 2009, will drive down housing prices another 8% from Q409 to the end of 2010.
According to the report, it will take 29 months to clear this supply of homes. Homes are falling into serious delinquency faster than REO transactions are closing. The total balance of seriously delinquent loans reached well over 400 billion dollars through November 2009, while the balance of REO properties reached its peak in September 2008 and declined to 50 billion dollars. On average, 14.5 billion dollars of seriously delinquent loans or REO property liquidates each month.
The other four months worth of supply comes from re-defaults on delinquent loans currently cured – or brought back to current status through a loan modification. Following current trends, S&P analysts predict that 70% of the cured loans will re-default. The total balance of these re-defaulting loans and the current amount of serious distressed loans will reach 473.4 billion dollars, nearly 30% of the total outstanding balance on all privately securitized loans.
“We believe that the recent constriction in the supply of foreclosed homes on the market is a temporary one,” claim the analysts.
With the launch of HAMP, servicers shifted strategy from modification to liquidation. The amount of loans that progressed from seriously delinquent to REO fell to 28% in Spring 2009 from 58% in June 2008. In that time, seriously delinquent loans that cured went from 32% to 58%, according to the report. But analysts found that this shift was only temporary.
“Loan modifications and the observed extension of time distressed loans remained as such may simply have delayed the inevitable, creating the demonstrated shadow inventory of troubled loans,” they wrote. “Ultimately, the majority of the properties these distressed loans represent will likely have to be liquidated.”
Palm Beach Mall Loses 53 Million Dollar Foreclosure
GSIG LLC
After Simon Property Group refused dispute a $53.2 million foreclosure judgment, the Palm Beach Mall is headed to auction and its future remains uncertain.
The 1.2 million-square-foot mall in West Palm Beach, Florida is set for public sale on March 4th, 2010. Following a January 20th, 2010 judgment in favor of a commercial mortgage-backed securities (CMBS) fund with Wells Fargo Bank as trustee,
All the interior stores, including Sears, in the mall closed on January 30th. However, JCPenney and George’s Music, which have outside entrances, remain open. It is not clear what the CMBS fund plans to do with this 42-year-old mall.
No one was available to comment.
After Simon Property Group refused dispute a $53.2 million foreclosure judgment, the Palm Beach Mall is headed to auction and its future remains uncertain.
The 1.2 million-square-foot mall in West Palm Beach, Florida is set for public sale on March 4th, 2010. Following a January 20th, 2010 judgment in favor of a commercial mortgage-backed securities (CMBS) fund with Wells Fargo Bank as trustee,
All the interior stores, including Sears, in the mall closed on January 30th. However, JCPenney and George’s Music, which have outside entrances, remain open. It is not clear what the CMBS fund plans to do with this 42-year-old mall.
No one was available to comment.
Tuesday, February 16, 2010
29 Million Dollar Pompano Beach Foreclosure
GSIG LLC
The site of the delayed Hilton hotel project in Pompano Beach has been targeted by a $28.5 million foreclosure lawsuit filed by Capital Source Finance.
According to Broward County Circuit Court Records, Maryland–based CapitalSource, Inc. (NYSE: CSE) filed the foreclosure action on January 14th, 2010 against Boca Raton-based Ocean Land Financing.
The executive VP of developer affiliate Ocean Land Investments, Mark Issenman, said his company is working with the lender to structure a new partnership to repurchase the land under different terms after they turn over the property.
Ocean Land has built major South Florida projects as the Trump Hollywood and Aquazul in Lauderdale-by-the-Sea. Conversely, several projects planned during the boom never got off the ground. The projects include: the legally blocked 300 Grove Bay condo project, in partnership with the Related Group of Florida, and a failed attempt to purchase and redevelop the entire town of Briny Breezes in Palm Beach County.
The Hilton project was one of those failed projects.
In 2007, with help from a $28.5 million mortgage from CapitalSource, Ocean Land bought the 5.9-acre site on S. Ocean Drive (A1A), for $31.9 million. The property is on both sides of A1A, with 200 feet along the beach and entitlements for a 28-slip marina along the Intracoastal Waterway. The loan was set to mature in October 2008.
With the loan set to mature in October of 2008, Ocean Land demolished a Ramada Inn in that location in 2008, and received zoning approval for a 10-story, 264-room Hilton hotel on the beach. The project’s second phase was an unnamed 317-room hotel with a 910-space parking garage along the Intracoastal.
Nothing was ever constructed.
Miami attorney Cary Lubetsky, who represents CapitalSource in the lawsuit, said Ocean Land has been cooperative in the process and appears willing to transfer the property to the lender. Lubetsky said he did not know what his client would do with the site.
“The economic conditions in South Florida don’t warrant us going forward with this project,” Issenman said. “Both parties are working together to make the foreclosure action as quick and simple as possible so we can go ahead with a purchase deal in the future.”
The site of the delayed Hilton hotel project in Pompano Beach has been targeted by a $28.5 million foreclosure lawsuit filed by Capital Source Finance.
According to Broward County Circuit Court Records, Maryland–based CapitalSource, Inc. (NYSE: CSE) filed the foreclosure action on January 14th, 2010 against Boca Raton-based Ocean Land Financing.
The executive VP of developer affiliate Ocean Land Investments, Mark Issenman, said his company is working with the lender to structure a new partnership to repurchase the land under different terms after they turn over the property.
Ocean Land has built major South Florida projects as the Trump Hollywood and Aquazul in Lauderdale-by-the-Sea. Conversely, several projects planned during the boom never got off the ground. The projects include: the legally blocked 300 Grove Bay condo project, in partnership with the Related Group of Florida, and a failed attempt to purchase and redevelop the entire town of Briny Breezes in Palm Beach County.
The Hilton project was one of those failed projects.
In 2007, with help from a $28.5 million mortgage from CapitalSource, Ocean Land bought the 5.9-acre site on S. Ocean Drive (A1A), for $31.9 million. The property is on both sides of A1A, with 200 feet along the beach and entitlements for a 28-slip marina along the Intracoastal Waterway. The loan was set to mature in October 2008.
With the loan set to mature in October of 2008, Ocean Land demolished a Ramada Inn in that location in 2008, and received zoning approval for a 10-story, 264-room Hilton hotel on the beach. The project’s second phase was an unnamed 317-room hotel with a 910-space parking garage along the Intracoastal.
Nothing was ever constructed.
Miami attorney Cary Lubetsky, who represents CapitalSource in the lawsuit, said Ocean Land has been cooperative in the process and appears willing to transfer the property to the lender. Lubetsky said he did not know what his client would do with the site.
“The economic conditions in South Florida don’t warrant us going forward with this project,” Issenman said. “Both parties are working together to make the foreclosure action as quick and simple as possible so we can go ahead with a purchase deal in the future.”
Homebuyer Tax Credit: Is it for you?
GSIG LLC
The home-buyer tax credit is for individuals and couples who buy a home from April 8, 2008, to June 30, 2010. Homes must be under contract by April 30, 2010.
For first-time buyers, the credit amounts to 10 percent of the purchase price of the home, up to a maximum of $7,500 (or $8,000 for purchases in 2009 or 2010).
Longtime homeowners who buy a replacement home between Nov. 6, 2009, and June 30 may qualify for a credit of up to $6,500.
Homes must be in the U.S., under contract by April 30, and used as the buyer's principal residence. The purchase must close by June 30. For a newly built home, the purchase date is the first date you occupy it.
Taxpayers qualify as first-time buyers if they have not owned another principal residence at any time during the three years before the purchase.
Longtime homeowners qualify if they buy a replacement home from Nov. 6, 2009, to June 30; they must have owned and lived in the same residence for at least five consecutive years during the past eight years.
For income limits and other information, visit: http://www.irs.gov/ and search for "homebuyer tax credit."
The home-buyer tax credit is for individuals and couples who buy a home from April 8, 2008, to June 30, 2010. Homes must be under contract by April 30, 2010.
For first-time buyers, the credit amounts to 10 percent of the purchase price of the home, up to a maximum of $7,500 (or $8,000 for purchases in 2009 or 2010).
Longtime homeowners who buy a replacement home between Nov. 6, 2009, and June 30 may qualify for a credit of up to $6,500.
Homes must be in the U.S., under contract by April 30, and used as the buyer's principal residence. The purchase must close by June 30. For a newly built home, the purchase date is the first date you occupy it.
Taxpayers qualify as first-time buyers if they have not owned another principal residence at any time during the three years before the purchase.
Longtime homeowners qualify if they buy a replacement home from Nov. 6, 2009, to June 30; they must have owned and lived in the same residence for at least five consecutive years during the past eight years.
For income limits and other information, visit: http://www.irs.gov/ and search for "homebuyer tax credit."
Monday, February 15, 2010
Palm Beach, Broward, and Miami-Dade County: Property sales up but prices still down
GSIG LLC
“The surge in home sales was driven by buyers responding strongly to the tax credit combined with record-low mortgage interest rates,” NAR Chief Economist Lawrence Yun said in a news release. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring, with more areas showing higher prices.”
According to Florida real estate experts, compared to the same forth quarter period last year, sales of single family homes and condos in Palm Beach, Broward, and Miami-Dade counties are up. However, simultaneously, prices in all three counties are sliding.
West Palm Beach logged the biggest jolt in sales of single-family homes – up 42% ( 1,706 in the year-ago quarter to 2,423)
The median sales price there slipped 5%, from $252,200 to $239,500 a year ago.
Furthermore, West Palm Beach condo sales shot up 62%, from 1,366 to 2,219. The median price was down 12 percent, from $123,000 to $108,100.
Continuing this trend, sales of single-family homes in Miami were up 32% from 1,250, to 1,649 with the median sales price down 17 percent, from $227,600 to $188,700.
While, Miami condo sales rose 68%, from 1,203 to 2,022. The median sales price for an existing condo fell 21%, from $183,700 to $145,400.
And in Fort Lauderdale, sales of existing homes were up 31%, from 1,764 to 2,314. The median price was down 13%, from $234,100 to $203,800.
Statewide, sales of existing single-family homes rose 44% in the fourth quarter – from 30,610 to 43,926. That’s the sixth consecutive quarter that Florida has seen higher year-over-year existing home sales.
The median sales price for an existing home in Florida was $140,000 in the fourth quarter, down 13% from last year, when it was $160,600.
Statewide, sales of existing condominiums in the fourth quarter rose 93% from 8,410 to 16,255 during the previous year’s quarter. That was the fifth consecutive quarter for increased statewide sales in both the single-family home and condo markets compared to levels one year ago.
The median sales price was $105,500 for the three-month period, down 23% from 2008, when it was $136,600
According to the National Association of Realtors, nationwide, total sales of existing homes, which include single-family and condos rose 13.9% to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter,.
Distressed property accounted for 32% of fourth quarter transactions, down from 37% a year ago.
“The surge in home sales was driven by buyers responding strongly to the tax credit combined with record-low mortgage interest rates,” NAR Chief Economist Lawrence Yun said in a news release. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring, with more areas showing higher prices.”
According to Florida real estate experts, compared to the same forth quarter period last year, sales of single family homes and condos in Palm Beach, Broward, and Miami-Dade counties are up. However, simultaneously, prices in all three counties are sliding.
West Palm Beach logged the biggest jolt in sales of single-family homes – up 42% ( 1,706 in the year-ago quarter to 2,423)
The median sales price there slipped 5%, from $252,200 to $239,500 a year ago.
Furthermore, West Palm Beach condo sales shot up 62%, from 1,366 to 2,219. The median price was down 12 percent, from $123,000 to $108,100.
Continuing this trend, sales of single-family homes in Miami were up 32% from 1,250, to 1,649 with the median sales price down 17 percent, from $227,600 to $188,700.
While, Miami condo sales rose 68%, from 1,203 to 2,022. The median sales price for an existing condo fell 21%, from $183,700 to $145,400.
And in Fort Lauderdale, sales of existing homes were up 31%, from 1,764 to 2,314. The median price was down 13%, from $234,100 to $203,800.
Statewide, sales of existing single-family homes rose 44% in the fourth quarter – from 30,610 to 43,926. That’s the sixth consecutive quarter that Florida has seen higher year-over-year existing home sales.
The median sales price for an existing home in Florida was $140,000 in the fourth quarter, down 13% from last year, when it was $160,600.
Statewide, sales of existing condominiums in the fourth quarter rose 93% from 8,410 to 16,255 during the previous year’s quarter. That was the fifth consecutive quarter for increased statewide sales in both the single-family home and condo markets compared to levels one year ago.
The median sales price was $105,500 for the three-month period, down 23% from 2008, when it was $136,600
According to the National Association of Realtors, nationwide, total sales of existing homes, which include single-family and condos rose 13.9% to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter,.
Distressed property accounted for 32% of fourth quarter transactions, down from 37% a year ago.
Friday, February 12, 2010
38 Million Dollar Bank Owned Foreclosure in South Florida
GSIG LLC
On January 21st, 2010, the largest development project east of I-95 in South Florida (which includes Miami Dade, Broward, and Palm Beach Counties) – Biscayne Landing LLC, lost a $38.3 million foreclosure judgment against it. Consequently, it will be sold at public auction in April.
Biscayne Landing LLC, an affiliate of Deerfield Beach based Boca Developers was approved for almost 6,000 homes along Biscayne Bay. It also holds a 99-year lease from the city of North Miami for 188 acres in an agreement that made the developer responsible for building affordable housing and civic buildings, including a library and Olympic training center.
The Oaks at Biscayne Landing towers were the only completed part of the Biscayne Landing project and were seized in a separate foreclosure auction.
Wells Fargo, which acted as the trustee for a commercial mortgage-backed securities (CMBS) fund and was managed by Credit Suisse First Boston, filed the foreclosure lawsuit in August 2009 against Biscayne Landing LLC and was not challenged by the developers.
Whoever acquires mortgage would obtain the lease from North Miami on the 188 acres, in addition to the $161.3 million first mortgage with a CMBS fund.
Dozens of vendors who filed construction liens against Biscayne Landing LLC will be wiped out if this foreclosure goes through.
For more information on this and other real estate news be sure to check back with us weekly at http://www.gsigllc.com/ or follow us on twitter at http://www.blogger.com/www.twitter.com/gsigllc/
On January 21st, 2010, the largest development project east of I-95 in South Florida (which includes Miami Dade, Broward, and Palm Beach Counties) – Biscayne Landing LLC, lost a $38.3 million foreclosure judgment against it. Consequently, it will be sold at public auction in April.
Biscayne Landing LLC, an affiliate of Deerfield Beach based Boca Developers was approved for almost 6,000 homes along Biscayne Bay. It also holds a 99-year lease from the city of North Miami for 188 acres in an agreement that made the developer responsible for building affordable housing and civic buildings, including a library and Olympic training center.
The Oaks at Biscayne Landing towers were the only completed part of the Biscayne Landing project and were seized in a separate foreclosure auction.
Wells Fargo, which acted as the trustee for a commercial mortgage-backed securities (CMBS) fund and was managed by Credit Suisse First Boston, filed the foreclosure lawsuit in August 2009 against Biscayne Landing LLC and was not challenged by the developers.
Whoever acquires mortgage would obtain the lease from North Miami on the 188 acres, in addition to the $161.3 million first mortgage with a CMBS fund.
Dozens of vendors who filed construction liens against Biscayne Landing LLC will be wiped out if this foreclosure goes through.
For more information on this and other real estate news be sure to check back with us weekly at http://www.gsigllc.com/ or follow us on twitter at http://www.blogger.com/www.twitter.com/gsigllc/
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