Florida Mortgage Lender Blog & Real Estate News

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The shameless liars at CNN and other so-called, U.S. news outlets are again talking about a “bottom” in the U.S. housing market – and trying to entice more victims to jump in. However, the reality is that mortgage statistics show that it has been obvious all along that the collapse in the U.S. real estate market will continue to get worse until at least 2011.

With more than one in ten U.S. mortgages (of all categories) already in default, the biggest wave of “adjustable-rate mortgage” re-sets does not begin until next year – and then will remain at that peak level for at least one full year.

Small banks facing severe loan losses and in need of capital continue to operate, indicating a reluctance on behalf of regulators to shut them down.

Maybe the so-called "zombie" banks didn't die after all.

As recently as two months ago, many on Wall Street speculated that the nation's largest financial institutions -- banks like Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500) -- were only operating as a result of extensive aid from the U.S. government.

Now, many experts wonder how so many small regional and community lenders that are capital starved and overwhelmed by escalating loan losses are able to stay in business.

In metropolitan Atlanta and the state of Florida, for example, more than 50 banks reported non-performing asset levels of 10% or more of total assets as of the end of March, according to the Raleigh, N.C.-based investment bank Carson Medlin.

Non-performing assets are loans that are not collecting interest or principal payments. In more normal economic times, non-performing asset levels remain below 1%.

Up to this point, small lenders, which serve as the primary source of credit for large parts of the country, were considered a picture of health in the banking industry. Most avoided the toxic mortgage products that ruined so many of their big bank peers.

Experts note that the majority of the 8,000 small banks are still thriving. But the outlook for this corner of the nation's banking industry has been tempered in recent weeks as small lenders endure rising losses, partly as a result of exposure to areas like commercial real estate and small business loans.

Next Wednesday, Wall Street will get a clearer sense of what kind of shape the industry is in when the Federal Deposit Insurance Corp. publishes its first-quarter assessment of the industry. One closely-watched part of that report is the agency's so-called "problem bank" list.

As of the end of 2008, that number stood at 252 institutions and it is expected to have climbed even higher during the first three months of 2009.

So far this year, the government has closed 34 banks, including the FDIC's takeover and subsequent sale of Florida-based lender BankUnited (BKUNA) late Thursday to a group of private equity investors. complete story

Source: CNNMoney.com - David Ellis

Stop Foreclosure & Save Your Credit SELL your Home - Short Sale

Prime fixed-rate loans have finally leapfrogged those nasty subprimes to take the lead in the race to foreclosure. The foreclosure rate on primes has in fact doubled in the last year, and almost half of the overall increase in foreclosure starts in the first quarter of this year was due to the increase in primes.

I got a call yesterday from Scott Scredon at the Consumer Credit Counseling Services in Atlanta. He says they’ve seen a distinct change in callers. “We’re getting calls from engineers and attorneys and post graduate students,” he says. “Many of these people run through their 401Ks and their savings and start living off credit cards and then they call a counseling agency for help. So it’s a new kind of person we’re seeing today, but it’s a sign of the times.”

So I asked Jay Brinkmann, chief economist over at the Mortgage Bankers Association, why all these aggressive industry and government modification programs aren’t helping, especially if the troubled borrowers are not in those nasty, exotic subprime loans. complete story

Source: CNBC.com - Diana Olick 

Stop Foreclosure  Save Your Credit Florida Short Sales

As job losses rise, growing numbers of American homeowners with once solid credit are falling behind on their mortgages, amplifying a wave of foreclosures.

In the latest phase of the nation’s real estate disaster, the locus of trouble has shifted from subprime loans — those extended to home buyers with troubled credit — to the far more numerous prime loans issued to those with decent financial histories.

With many economists anticipating that the unemployment rate will rise into the double digits from its current 8.9 percent, foreclosures are expected to accelerate. That could exacerbate bank losses, adding pressure to the financial system and the broader economy.

“We’re about to have a big problem,” said Morris A. Davis, a real estate expert at the University of Wisconsin. “Foreclosures were bad last year? It’s going to get worse.” 

Economists refer to the current surge of foreclosures as the third wave, distinct from the initial spike when speculators gave up property because of plunging real estate prices, and the secondary shock, when borrowers’ introductory interest rates expired and were reset higher.

“We’re right in the middle of this third wave, and it’s intensifying,” said Mark Zandi, chief economist at Moody’s Economy.com. “That loss of jobs and loss of overtime hours and being forced from a full-time to part-time job is resulting in defaults. They’re coast to coast.”

Those sliding into foreclosure today are more likely to be modest borrowers whose loans fit their income than the consumers of exotically lenient mortgages that formerly typified the crisis.

Economy.com expects that 60 percent of the mortgage defaults this year will be set off primarily by unemployment, up from 29 percent last year. complete story

Source: The New York Times - Peter S. Goodman & Jack Healy

Stop Foreclosure & Save Your Credit SELL your Home - Short Sale

Even if your Florida home is cramped for space and has a small yard, you can still get in on growing your own fresh foods for your family's table. The key to growing in small areas is to concentrate on 'must haves' rather than everything under the sun. Family staples like tomatoes take lots of space, but one or two plants can easily provide enough for a family of four all summer long with plenty left over for canning.

How Much is Enough?

Two square feet of dirt is enough to grow a single tomato plant. Most people have more than two square feet of ground somewhere around their Florida home.

Something that may be more difficult to find around your home is ground with enough direct sunlight. Choose an area with plenty of exposure to the sun for the best growing areas. If you live in a condo, you can take advantage of sunlight exposure by using planter boxes or window sill containers.

The Key to Healthy Plants

Keeping the soil well fertilized will help make the best use of your smaller spaces. Use a good commercial fertilizer and blend it in well with your soil.

Give each plant at least the minimum space recommended and carefully plan each row to make maximum use of your small garden.

For a family of four, two tomato plants, a short row of lettuce, carrots, and two bell pepper plants can make a delicious victory garden and give you a fresh salad at every meal.

For more tips on how to maximize the space in your Florida home, subscribe to my blog. You'll receive tips like this in your email a couple of times a week.

Even if you don't have the money for extensive remodeling, you can still live greener in your Florida home with just a few simple changes. Every little improvement we make in the way we live is a step in the right direction toward making our world healthier.

Low-Cost Ways to Green Up Your Home

· Catch the rain: Conserving water by putting in new low-flow fixtures is one way of helping to conserve the planet's resources, but it isn't the only way. You can build a rain water reservoir using old barrels or other large containers to catch rain and use it for watering your garden or washing your car.

· Light up your life: Change the incandescent bulbs in your light fixtures to the new florescent bulbs designed for use in a regular light socket. They last longer, burn brighter and use less electricity.

· Charge up your green: Be choosey on more than just what you spend your money and create debt on, be choosey on the means you use to get credit. Look for credit cards that support green living either by offering value added benefits for using their card or by contributing to earth friendly causes as a portion of their profits.

· Pick green contractors: When you do remodel your Florida home, pick contractors who use green materials and recycled products.

· Hang it up: One of the cheapest ways to make your Florida home greener is to hang a clothesline in the backyard. Take advantage of Mother Nature on nice days and hang your wash outside to dry instead of using the dryer, even if it's an Energy Star appliance. It will save you money and will save the environment too. Your fresh smelling clothes are just an extra bonus.

If you would like more tips on making your home green, subscribe to our blog. It's a very green way to get information because it's emailed to you. No paper or printing necessary.

The new stimulus plan has given many people new hope for their housing futures. At first, many worried that the stimulus package would merely help the banks and other financial institutions and not the actual homeowner looking to buy a Florida home. But, it has become clear that the people who really win with the new plan are those who count—prospective home buyers.

Stimulus for Banks and Buyers

The stimulus package provides huge tax rebates in 2009, and while that is a limited provision, the savings are enormous for those who get out there and buy a new Florida home. The fact that the stimulus plan includes relief for the struggling financial industry also helps buyers by making it more likely they will be able to obtain loans.

Stimulus for Luxury Properties

The stimulus package gives the two major government mortgage companies Fannie Mae and Freddie Mac more power and allows for larger loans for higher priced properties. That is a big incentive if you're looking to buy in a major metropolitan area because you will now be able to get a loan secured by Fannie or Freddie.

The economic boost from the stimulus package will require a little time to really become apparent, but it is working, even now. Slowly the market is rebounding and new home buyers are able to take advantage of loans and tax incentives while getting houses at prices that are extraordinarily low.

If you would like more information on how the stimulus package can help you buy a new Florida home, contact us.