HOMEBUYER TAX CREDIT CLOSING DATE EXTENDED
JULY 1, 2010 - Congress has passed a bill extending the Homebuyer Tax Credit closing date to September 30, 2010. The previous deadline was June 30, 2010. The extension applies only to transactions that had ratified contracts in place as of April 30, 2010, and have not yet closed. There will be no gap between June 30, 2010, and the date the President signs the bill into law.
FLOOD INSURANCE PROGRAM REINSTATED
JULY 1, 2010 - According to the National Association of Realtors (NAR), Congress has extended the National Flood Insurance Program (NFIP) through September 30, 2010. The bill is retroactive and will cover the lapse period from June 1, 2010, to the date the law is enacted. NAR will continue to work with Congress on the NFIP Bill.
NATIONAL FLOOD INSURANCE PROGRAM EXPIRES
WASHINGTON - May 31, 2010 - Once again, Congress left town without reauthorizing the National Flood Insurance Program (NFIP). The NFIP has now expired. Until Congress extends NFIP, no new or renewal flood policies can be issued. Without the flood insurance coverage provided by NFIP, thousand of residential and commercial transactions are on hold.
What's At Stake?
The NFIP insures millions of residential and commercial property owners in nearly 20,000 communities across the U.S. With the expiration of this program’s authority, the flood insurance that lenders require as a condition of a mortgage in federally-designated flood areas is no longer available. Families and businesses in those areas are no longer able to buy property. Just as importantly, those with existing mortgages are not able to renew their required coverage.
From policyholders, the Federal government collects billions in premiums to protect against risks ranging from hurricanes in the South to flooding in the Midwest. The Federal government stands to lose those premiums, in which case post-disaster relief for those in the path of the next hurricane the size of Ike or Katrina would be far more expensive.
FORECLOSURE COURT FILINGS DOWN IN FIRST QUARTER
TALLAHASSEE, Fla. – June 16, 2010 – The number of foreclosure filings for the first quarter of the year is down significantly compared to the past two years.
According to the Office of State Courts Administrator, the number of foreclosure filings for January through April stand at 105,149. During that same period in 2009, there had been 143,936 filings and in 2008 there were 111,337.
"Is it where it could be?" asked Miami-Dade Judge Jennifer Bailey, who chaired a Florida Supreme Court task force on the foreclosure crisis. "No. Is it getting better? Yeah."
The crush of foreclosure cases has been an ongoing problem for the state court system as the state budget tightened and they had fewer people to handle the massive amount of paperwork associated with foreclosures.
The result was a painful process for homeowners and lenders.
The number of cases created a huge backlog in courtrooms, with cases that once took three months getting dragged out to six months. In 2007, the court recorded 182,044 foreclosure filings. In 2008, that number jumped to 368,742 and increased again in 2009 to 399,120 filings.
At the order of the Florida Supreme Court, local court systems have created foreclosure mediation programs over the past several months to ease the process by bringing all the parties together before it heads to court.
SHOULD YOU BUY OR RENT?
WASHINGTON - June 7, 2010 - To rent or buy? For millions of Americans, that is the question. The recent housing boom and subsequent bust seem to provide a clear answer -- given an affordable mortgage, we would all rather be buyers.
With the piercing clarity that is 20-20 hindsight, many people burned by the mortgage market may now think differently. After all, you can't be foreclosed on if you don't own in the first place. For them, renting has become not only the smart move, but also the sensible one.
Many people are questioning if home ownership is an inherent element of the American Dream. However, part of that dream is based upon economic common sense. Besides stability and status, owning a home can help build equity, improve credit ratings, and be a tax deduction.
Given these benefits, the dream of home ownership is hard to give up. Much as sales of trucks and SUVs are rebounding, Americans seem to need only the slightest nudge to jump back into the housing market. In April, sales of existing homes rose 7.6 percent nationwide, according to the National Association of Realtors. For new homes, sales surged 14.8 percent.
PENDING HOME SALES SURGE CONTINUES
WASHINGTON - June 2, 2010 - Pending home sales have risen for three consecutive months, reflecting the impact of the homebuyer tax credit and favorable housing affordability conditions, according to the National Association of Realtors (NAR).
The Pending Home Sales Index (PHSI), a forward looking indicator, rose 6.0 percent to 110.9, based on contracts signed in April from 104.6 in March. It's 22.4 percent higher than April, 2009, when it was 90.6. The April increase follows gains of 7.1 percent in March and 8.3 percent in February.
The PHSI is at its highest level since last October when the index reached 112.4 and first-time buyers were rushing to beat the initial deadline for the tax credit. The data reflects contracts, not closings which usually occur with a lag time of one or two months.
SHOPPING FOR A BARGAIN?
Distressed properties account for a large part of today’s housing market; however, after some consideration, most buyers choose to keep looking rather than purchase a home in foreclosure. According to the NAR 2009 Profile of Home Buyers and Sellers, almost half of all buyers and 56 percent of first-time buyers considered purchasing a foreclosed home but ultimately did not.
The survey revealed several factors that went into buyers’ decisions not to move forward with a foreclosed property. Twenty-five percent of buyers couldn’t find the right home, 17 percent thought the home was in poor condition and 16 percent felt the process was too difficult. Ten percent of buyers ended up purchasing a foreclosed home, up four percentage points from last year.
