Lakewood Ranch, FL Blog

I suppose it's something of a Christmas Miracle...mortgage finance companies Fannie Mae and Freddie Mac are suspending foreclosures and evictions for about two weeks in a temporary break for borrowers during the holiday season.

It's a shame that this is even noteworthy but I guess it took an executive decision to not throw families out on the street during the holidays.  The suspension, announced Thursday by the government-controlled companies, runs from this Saturday through Jan. 3. “No family should have to face the prospect of being evicted during the holiday season,” Michael Williams, Fannie Mae's chief executive, said in a statement.  I'd say that no family living in their principle homestead property should be evicted in this economy when there are so many other possible alternatives.  I don't advocate a something for nothing or a giveaway approach but why not refinance all of these loans using today's current low rate and extend the period of the loan or create a balloon--something that gets the monthly payment under control.  It is better for everyone to keep these properties occupied than it is to have them go to foreclosure.

I just completed training to become certified as a "SFR" or Short Sale and Foreclosure Resource and while much of the program focused on assisting buyers and sellers of short sale and foreclosure properties, there was also an emphasis on helping borrowers avoid foreclosure, too.

We hear everyday from folks who are facing or have already been thru foreclosure.  There are programs and initiatives to help but they are still limited as to who can use them and I've read that many banks are not exactly helpful when it comes to implementing these programs.  A new program promises to assist with loans outside of Freddie and Fannie but we'll see how effective that program will be.  Lenders aren't required to live by it until April.

Fannie and Freddie are only part of the picture but at least they are willing to suspend the foreclosure and eviction process for a little while.  It's not enough but it is a start.  Let's hope that things get better next year.

Merry Christmas, Happy Hannukah and here's to a Happy 2010!

I write a market news update each month and in my last couple of entries I mentioned that I expected prices to level out this year.  To be sure, there have been (and still are) good deals for almost every buyer but this activity has also heated up the market as courageous buyers have snapped up the lowest priced properties.  This activity is statewide and has not escaped the attention of Hoffman Development Group, the developer who took over the Miramar Condominium project in Lakewood Ranch.

Yesterday, HDG announced that they were raising prices on their remaining inventory of Miramar townhouses and single level condos.  Charlie Brasington, President and CEO of HDG, said he is "now certain that the market is turning and prospects realize the time to buy is now.  Everywhere I go, I’m seeing sales at pretty darn good prices, pretty good pace." 

HDG has had overwhelming success in selling Miramar at aggressively low prices, and Brasington concluded the market could support higher prices.

Here's the thing:  nothing happens unto itself.  If HDG sees it is possible to raise prices and keep sales going, other companies will follow suit.  Once new product prices rise, resales are likely to follow. 

The Federal Reserve decided yesterday to pump a trillion dollars into the economy, including $300 billion into government bonds and $750 billion into mortgage backed securities.  These moves could result in 4% mortgage rates as early as today.  That is an incredible rate and many analysts are suggesting that this move may actually turn the housing decline around.

Expect banks to be swamped by mortgage applications.  There is a website:

http://www.makinghomeaffordable.gov where you can determine your eligibility for government help.

There hasn't been much good news in the housing market lately but for first time homebuyers and those who have not owned a principal residence in the past three years, the government is now providing a $8000 tax credit for purchases made in 2009.  It is easy to get, doesn't need to be repaid, and is a true tax credit.  For example, if you would normally owe $9000 in income tax for 2009, you'd pay $1000.  If you'd owe $5000 in tax, you'd get a check back for $3000!  There are some rules, of course, but it appears to be a pretty good deal with not alot of strings attached.

For complete information go to: http://www.federalhousingtaxcredit.com/2009/home2.html