Source: The Wall Street Journal online
MARKETWATCH
AUGUST 29, 2010
By AMY HOAK
A growing number of homeowners are choosing to pay down their mortgages at a faster rate--even if it means a substantial jump in their monthly payments.
Between January and June, 26% of homeowners who refinanced chose a 15-year fixed-rate mortgage, according to data from CoreLogic, a provider of financial, property and consumer information. During all of 2009, 18.5% of borrowers who refinanced opted for a 15-year term.
Andy Rash
What's prompting the shift to shorter loans? Historically low interest rates for fixed-rate mortgages.
Homeowners are doing the math and realizing that rates have fallen enough so the increase in payment between a new 15-year mortgage and their current loan is no longer unbearable for their budgets, says Bob Walters, chief economist at online lender Quicken Loans.
The average rate on a 15-year fixed-rate mortgage was 3.86% for the week ending Aug. 26, according to Freddie Mac's weekly survey of conforming mortgage rates.
A Change in Thinking
The financial situation of those capable of refinancing today is a factor in the shift, Mr. Walters says. These people typically are homeowners with the best credit and the most equity -- and, therefore, most suited for a shorter-term loan.
But there might be some other psychology at work. "We're seeing a different view on debt than maybe we've seen in the past," he says. Today, homeowners are saying, "I really want to pay this off. I'm going to bite the bullet and take the payment and work toward paying this down."
A 15-year mortgage also acts as somewhat of a forced savings account for homeowners, says Leif Thomsen, chief executive of Mortgage Master, a privately owned lender, given that the higher payments help a borrower pay down the principal at a quicker clip.
This is a huge shift in borrower thinking. "There was a drive a couple of years ago to take out the biggest mortgage that you could and use all of the money you would have otherwise had in the house and put it into stocks and bonds--to think of your house and mortgage as part of your entire investment portfolio," says Amy Crews Cutts, deputy chief economist for Freddie Mac.
"That worked for people who do investment finance for a living and are good at managing accounts," she says. "But for the average person, debt is a drag on their psyche as well as their overall budget." Many Americans have reverted to the goal of paying off their house and getting rid of their mortgage, Ms. Cutts adds.
Doing the Math
Refinancing into a shorter-term mortgage isn't a strategy for everyone, however.
Choosing a shorter term usually means you'll get a better rate--and you'll pay much less interest over the life of the loan--but a shorter time frame ramps up monthly mortgage payments.
For example, with a 4.5% interest rate on a 30-year fixed-rate mortgage of $200,000, you would have a monthly payment of $1,015, including principal and interest, Ms. Cutts says. The monthly payment jumps to about $1,480 with a 4% interest rate on a 15-year fixed-rate loan.
Of course, if the refinancing borrower's current 30-year loan has a higher rate, the difference between the monthly payments could be lower. Still, you should count on some increase in monthly payments.
In general, Mr. Walters says, those who choose 15-year fixed-rate mortgages are older and have more equity and less debt than other folks. They also earn higher incomes and don't have some of the added expenses that younger homeowners typically do.
"People who are taking these loans are financially stable and can afford the payments, but at the same time are planning on staying in their home for an extended period of time," Mr. Thomsen says.
Mr. Walters says you shouldn't take on a 15-year fixed-rate mortgage unless you have substantial savings, including at least a year's worth of living expenses in liquid accounts.
Also, he recommends having a debt-to-income ratio below 35%. So if you have a gross salary of $5,700 per month, for instance, your monthly debt--including any mortgage payments, taxes, insurance, homeowners-association dues as well as auto and student loans and credit-card debt--would have to be a max of $1,995 to get a 35% ratio.
Make That Extra Payment
Borrowers who don't meet those standards, or are worried about future loss of income, might be better served taking a longer-term mortgage but making extra payments on the principal to pay off the loan faster, says Mr. Walters.
For instance, if you refinance a $200,000 mortgage into a 30-year loan with a 4.5% rate, and then apply $100 of the savings to the principal payment each month, you'd save $31,700 in interest over the life of the loan, Ms. Cutts says. And you would pay off the mortgage in 25 years, instead of 30, she adds.
What's more, you would have the flexibility of not paying that $100 in months when money gets tight. "Maybe today you're feeling flush with money. Maybe you're worried in the future that income might change," Ms. Cutts says. With a 30-year mortgage, you have more flexibility. "Shortening to 15 years is a pretty big bump in payment."
Showing posts with label Foreclosures. Show all posts
Showing posts with label Foreclosures. Show all posts
Thursday, September 9, 2010
The American Home is Shrinking
NEW YORK (CNNMoney.com) -- The American home is shrinking. Toll the bell for the McMansion.
After years of growth, the Census Bureau recently reported that median new home size fell to 2,135 square feet in 2009 after peaking at more than 2,300 earlier in the decade.
"Home buyers are asking for less, cutting back on options and reducing square footage," said Steven Pace of the North Carolina-based Pace Development Group, which builds both custom and tract houses ranging in price from below $250,000 to more than $2 million.
"They're saying, 'Maybe we don't need that 5,000 square footage;" he said. "'Maybe our bath doesn't need to be big enough for our whole family and all our neighbors to take a shower at the same time.'"
Kermit Baker, chief economist for the American Institute of Architects, pointed out that consumers don't ask for as much for spaces devoted to single purposes, such as media rooms for watching videos and game rooms for shooting pool. Instead, the requests are for rooms with shared uses.
"We continue to move away from the 'McMansion' chapter of residential design," he said.
QUIZ: Do you have an All-American house?
Now, the typical U.S. owner-occupied home has six rooms, with three of them being bedrooms, according to the Census Bureau's annual American Housing Survey. The most common number of baths is two or more.
For those who remember the days of long, hot summers. Those are over, too. Nearly 90% of all new homes now have central air conditioning. And 63% of all homes are now cooled.
These are a big increases from even 10 years ago, when only 52% of owner-occupied homes -- i.e. non-rental properties or second homes -- boasted central air.
Newbie homebuyers go small
More than three-quarters of all homeowners now load up dishwashers, up from 65% a decade ago. And garbage disposals can be found in nearly half of owner-occupied homes, up from 46%.
On a broader scope, the survey revealed that, despite the recent hoopla about the new urbanism and return to cities, most Americans still lead a "Leave it to Beaver" lifestyle.
Of the more than 76 million owner-occupied homes in 2009, 63 million were traditional detached, single-family residences. And city dwellers, you're outnumbered: Far more homeowners live in the suburbs than in cities.
Regionally, the South, held the largest number of owner-occupied units, followed by the Midwest, then the West and finally the Northeast
After years of growth, the Census Bureau recently reported that median new home size fell to 2,135 square feet in 2009 after peaking at more than 2,300 earlier in the decade.
"Home buyers are asking for less, cutting back on options and reducing square footage," said Steven Pace of the North Carolina-based Pace Development Group, which builds both custom and tract houses ranging in price from below $250,000 to more than $2 million.
"They're saying, 'Maybe we don't need that 5,000 square footage;" he said. "'Maybe our bath doesn't need to be big enough for our whole family and all our neighbors to take a shower at the same time.'"
Kermit Baker, chief economist for the American Institute of Architects, pointed out that consumers don't ask for as much for spaces devoted to single purposes, such as media rooms for watching videos and game rooms for shooting pool. Instead, the requests are for rooms with shared uses.
"We continue to move away from the 'McMansion' chapter of residential design," he said.
QUIZ: Do you have an All-American house?
Now, the typical U.S. owner-occupied home has six rooms, with three of them being bedrooms, according to the Census Bureau's annual American Housing Survey. The most common number of baths is two or more.
For those who remember the days of long, hot summers. Those are over, too. Nearly 90% of all new homes now have central air conditioning. And 63% of all homes are now cooled.
These are a big increases from even 10 years ago, when only 52% of owner-occupied homes -- i.e. non-rental properties or second homes -- boasted central air.
Newbie homebuyers go small
More than three-quarters of all homeowners now load up dishwashers, up from 65% a decade ago. And garbage disposals can be found in nearly half of owner-occupied homes, up from 46%.
On a broader scope, the survey revealed that, despite the recent hoopla about the new urbanism and return to cities, most Americans still lead a "Leave it to Beaver" lifestyle.
Of the more than 76 million owner-occupied homes in 2009, 63 million were traditional detached, single-family residences. And city dwellers, you're outnumbered: Far more homeowners live in the suburbs than in cities.
Regionally, the South, held the largest number of owner-occupied units, followed by the Midwest, then the West and finally the Northeast
Labels:
Bonita Springs,
Estero,
Florida,
Foreclosures,
Fort Myers,
Fort Myers Beach,
Ginny Nobbe,
Heather Wightman,
Home buying,
Home Loan,
John R. Wood,
listing,
Naples,
Real Estate,
Sold Home
Tuesday, April 13, 2010
Lee County foreclosure auctions finally online
Source: News-press online: BY PAT GILLESPIE • pgillespie@news-press.com • April 4, 2010
Sitting in a bathrobe, sipping coffee may be the new way to buy a foreclosed Lee County house. Starting Monday, you can do just that. That's when they will be sold online through an auction process similar to eBay. Starting Monday, you can do just that.
That's when they will be sold online through an auction process similar to eBay. The Web site — www.lee.realforeclose.com — has a calendar of each day's foreclosure sales along with links to the property's information on the Clerk of Court, Property Appraiser and Tax Collector Web sites and photos, if available.
By expanding Lee County's houses to a global audience, Lee County Clerk of Court Charlie Green believes it could help the value of available properties.
"Hopefully, it'll generate more money for the seller or bank," he said. "It should increase the value of properties with additional bidders."
Charles Cosby, a real estate investor who owns The Foreclosure Team, said there are positive and negative consequences to going online. People who might not know the pitfalls of a house, such as it having Chinese drywall, existing liens and vandalism, could lose money if they don't do research.
"The more accessible it is for the average Joe, the more potential for hurt," Cosby said. "A lot of people don't know the process."
Until now, bankers, buyers and others working on behalf of investors invaded the Lee County Justice Center to bid on houses one by one. With the increase in foreclosure cases in the last few years, as many as 2,500 filed a month, the bidders became so numerous they were moved to a room on the second floor to avoid disruption.
Though foreclosures have decreased in recent months - about 1,100 were filed last month - Green now will get people scouring the properties out of the building altogether.
"This is something we needed to do," Green said. "This is a big deal for Lee County."
After target dates of January and March came and went, Green's main hang-up was that Realauction.com, the company that would be hosting foreclosure sales, would be collecting and transferring the millions of dollars used to buy the houses purchased daily at the courthouse. Green said he now feels confident in the process based on a change in bidder payment options.
Lloyd McClendon, CEO of the Fort Lauderdale-based company, said that as of Friday, 935 bidders had registered on the site and $1.5 million had been deposited.
"We're ecstatic," he said. "For us, we're excited to bring in a client that was so large. It was a long time coming."
Users create names and passwords and deposit money into an online account on the Web site. After winning a bid on a foreclosed house, users must pay 5 percent of the winning bid and then the remaining balance and fees within 24 hours.
Registry fees are 3 percent of the first $500 and 1 percent of the remaining sale price. Other fees apply.
Sitting in a bathrobe, sipping coffee may be the new way to buy a foreclosed Lee County house. Starting Monday, you can do just that. That's when they will be sold online through an auction process similar to eBay. Starting Monday, you can do just that.
That's when they will be sold online through an auction process similar to eBay. The Web site — www.lee.realforeclose.com — has a calendar of each day's foreclosure sales along with links to the property's information on the Clerk of Court, Property Appraiser and Tax Collector Web sites and photos, if available.
By expanding Lee County's houses to a global audience, Lee County Clerk of Court Charlie Green believes it could help the value of available properties.
"Hopefully, it'll generate more money for the seller or bank," he said. "It should increase the value of properties with additional bidders."
Charles Cosby, a real estate investor who owns The Foreclosure Team, said there are positive and negative consequences to going online. People who might not know the pitfalls of a house, such as it having Chinese drywall, existing liens and vandalism, could lose money if they don't do research.
"The more accessible it is for the average Joe, the more potential for hurt," Cosby said. "A lot of people don't know the process."
Until now, bankers, buyers and others working on behalf of investors invaded the Lee County Justice Center to bid on houses one by one. With the increase in foreclosure cases in the last few years, as many as 2,500 filed a month, the bidders became so numerous they were moved to a room on the second floor to avoid disruption.
Though foreclosures have decreased in recent months - about 1,100 were filed last month - Green now will get people scouring the properties out of the building altogether.
"This is something we needed to do," Green said. "This is a big deal for Lee County."
After target dates of January and March came and went, Green's main hang-up was that Realauction.com, the company that would be hosting foreclosure sales, would be collecting and transferring the millions of dollars used to buy the houses purchased daily at the courthouse. Green said he now feels confident in the process based on a change in bidder payment options.
Lloyd McClendon, CEO of the Fort Lauderdale-based company, said that as of Friday, 935 bidders had registered on the site and $1.5 million had been deposited.
"We're ecstatic," he said. "For us, we're excited to bring in a client that was so large. It was a long time coming."
Users create names and passwords and deposit money into an online account on the Web site. After winning a bid on a foreclosed house, users must pay 5 percent of the winning bid and then the remaining balance and fees within 24 hours.
Registry fees are 3 percent of the first $500 and 1 percent of the remaining sale price. Other fees apply.
Labels:
Bonita Springs,
Estero,
financing,
Florida,
Foreclosures,
Fort Myers,
Fort Myers Beach,
Ginny Nobbe,
Heather Wightman,
Home buying,
John R. Wood,
Naples,
News,
Real Estate
Monday, March 29, 2010
Don't Foreclose - Do a Short Sale
Source: CNN Money.com Les Christie, staff writer March 29, 2010: 3:46 AM ET
NEW YORK (CNNMoney.com) -- Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.
"Banks have ramped up short sale approvals," said Duane Legate of House Buyer Network, which connects short sellers with buyers. "They're hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales."
These transactions, where lenders allow homeowners to sell their houses for less than they owe, accounted for 17% of all residential real estate sales in February, up from nearly 13% in November, according to a monthly real estate market survey by Campbell/Inside Mortgage Finance.
And Bank of America (BAC, Fortune 500), the country's largest mortgage servicer, has more than doubled the number of short sales it processed in recent months.
Elizabeth Weintraub, a Sacramento, Calif.-area real estate agent who handles many short sales, was amazed at how quickly a recent deal went through. "Bank of America approved it in 24 days," she said. "That flipped me out."
This is a huge change from even just six months ago when the short-sale market was stalled and most people would describe the process has real estate hell. Because lenders stand to lose so much on these transactions, they have been reluctant to make short sales happen, often waiting months before getting back to potential buyers.
Beware: You lost your house but still have to pay
"In the past, many short sales would never come to fruition and the ones that did averaged over half a year to complete," said Chris Saitta, CEO of Equator, which produces short sale software.
"Things would just fall into a black hole and not come out again," added Weintraub.
And even when banks did agree to the sale, the process could be further complicated if the original owner had a second mortgage.
In most cases, the first lender is repaid in full before any money flows to a second-lein holder. And because most distressed borrowers are severely underwater, there's usually nothing left to send on. As a result, second-lein holders are left holding the bag and have been killing many deals.
But that has been changing. For one thing, banks realize that they make out far better financially with a short sale than a foreclosure. "The lenders lose 50% on a foreclosure and only 30% on a short sale," said Glenn Kelman, founder of the real estate Web site Redfin. "And short sales offer a way to get distressed properties off their books quickly."
And on April 5, lenders and mortgage investors will have even more incentives to offer troubled borrowers short sales instead of foreclosing.
Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 "relocation incentive" and servicers will get $1,500 for handling a short sale.
The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.
Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days.
Equator's Saiita anticipates a short sale explosion in response to the new program. "The challenge will be handling all the volume," he said.
The company has already tweaked its software, which 58 servicers use, to handle the new HAFA rules. And that should help reduce the time it takes to execute a sale, which currently averages 88 days.
The boom in short sales may accelerate the end to the foreclosure crisis by cleaning out the overhang of borrowers in distress and replacing them with more stable homeowners.
Plus, these sales are better for distressed borrowers because their credit scores suffer less. Going through a foreclosure can knock 200 points off a FICO score, twice as much as the penalty for a short sale
NEW YORK (CNNMoney.com) -- Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.
"Banks have ramped up short sale approvals," said Duane Legate of House Buyer Network, which connects short sellers with buyers. "They're hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales."
These transactions, where lenders allow homeowners to sell their houses for less than they owe, accounted for 17% of all residential real estate sales in February, up from nearly 13% in November, according to a monthly real estate market survey by Campbell/Inside Mortgage Finance.
And Bank of America (BAC, Fortune 500), the country's largest mortgage servicer, has more than doubled the number of short sales it processed in recent months.
Elizabeth Weintraub, a Sacramento, Calif.-area real estate agent who handles many short sales, was amazed at how quickly a recent deal went through. "Bank of America approved it in 24 days," she said. "That flipped me out."
This is a huge change from even just six months ago when the short-sale market was stalled and most people would describe the process has real estate hell. Because lenders stand to lose so much on these transactions, they have been reluctant to make short sales happen, often waiting months before getting back to potential buyers.
Beware: You lost your house but still have to pay
"In the past, many short sales would never come to fruition and the ones that did averaged over half a year to complete," said Chris Saitta, CEO of Equator, which produces short sale software.
"Things would just fall into a black hole and not come out again," added Weintraub.
And even when banks did agree to the sale, the process could be further complicated if the original owner had a second mortgage.
In most cases, the first lender is repaid in full before any money flows to a second-lein holder. And because most distressed borrowers are severely underwater, there's usually nothing left to send on. As a result, second-lein holders are left holding the bag and have been killing many deals.
But that has been changing. For one thing, banks realize that they make out far better financially with a short sale than a foreclosure. "The lenders lose 50% on a foreclosure and only 30% on a short sale," said Glenn Kelman, founder of the real estate Web site Redfin. "And short sales offer a way to get distressed properties off their books quickly."
And on April 5, lenders and mortgage investors will have even more incentives to offer troubled borrowers short sales instead of foreclosing.
Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 "relocation incentive" and servicers will get $1,500 for handling a short sale.
The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.
Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days.
Equator's Saiita anticipates a short sale explosion in response to the new program. "The challenge will be handling all the volume," he said.
The company has already tweaked its software, which 58 servicers use, to handle the new HAFA rules. And that should help reduce the time it takes to execute a sale, which currently averages 88 days.
The boom in short sales may accelerate the end to the foreclosure crisis by cleaning out the overhang of borrowers in distress and replacing them with more stable homeowners.
Plus, these sales are better for distressed borrowers because their credit scores suffer less. Going through a foreclosure can knock 200 points off a FICO score, twice as much as the penalty for a short sale
Thursday, March 18, 2010
Florida Appliance Rebates
The State of Florida will implement a mail-in rebate program to help residents replace older,
inefficient appliances with ENERGY STAR® qualified appliances. The program is tentatively
scheduled to begin in April 2010 and is scheduled to last two weeks. The program is timed to
coincide with Florida's Earth Day Activities.
Eligible products include
Refrigerators
Freezers
Clothes washers
Dishwashers
Room air conditioners
Gas tankless water heaters
Florida will offer residents a 20% rebate off the price of a new ENERGY STAR qualified
appliance. Consumers may also receive an additional rebate with proof of having recycled
the old appliance.
Contact: Florida Energy & Climate Commission
Total Funding: $17,585,000
Program information subject to change. Rebates may be offered for a limited time only. Before purchasing a product, check with your program sponsor to ensure rebates are available, and to confirm product eligibility and program requirements. Products purchased must meet efficiency criteria as established by the state.
inefficient appliances with ENERGY STAR® qualified appliances. The program is tentatively
scheduled to begin in April 2010 and is scheduled to last two weeks. The program is timed to
coincide with Florida's Earth Day Activities.
Eligible products include
Refrigerators
Freezers
Clothes washers
Dishwashers
Room air conditioners
Gas tankless water heaters
Florida will offer residents a 20% rebate off the price of a new ENERGY STAR qualified
appliance. Consumers may also receive an additional rebate with proof of having recycled
the old appliance.
Contact: Florida Energy & Climate Commission
Total Funding: $17,585,000
Program information subject to change. Rebates may be offered for a limited time only. Before purchasing a product, check with your program sponsor to ensure rebates are available, and to confirm product eligibility and program requirements. Products purchased must meet efficiency criteria as established by the state.
Monday, January 4, 2010
NAR - The Decade in Real Estate
The National Association of Realtors (NAR) has put together a retrospective of the real estate market for the last decade. Notable developments: In 1999, buyers who went online in search for a home were in the minority – only 37 percent of buyers used the Internet in their home search. Today, 90 percent of buyers are searching online. Despite the current price declines, median home values over the past decade have increased more than 25 percent, from $137,600 in November 1999 to $172,600 in November 2009. Fewer people are buying detached, single family homes – 82 percent in 1999 compared to 78 percent in 2009 – but more people are buying homes in suburban neighborhoods – 46 percent in 1999 compared to 54 percent today.
Married couples comprised 68 percent of all home purchases at the beginning of this century but only represent 60 percent of all buyers today. Single men and women have made up the difference – single men purchased 10 percent of all homes last year, compared to only 7 percent 10 years ago. Single women now represent more than one-fifth of all home buyers – 21 percent, up from 15 percent in 1999. Other things haven’t changed. The median age for home buyers last year was 39, just as it was in 1999. Neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future. “... one constant during [the last 100 years] has been the persistence of homeownership as the American Dream,” says NAR president Vicki Cox Golder.
Married couples comprised 68 percent of all home purchases at the beginning of this century but only represent 60 percent of all buyers today. Single men and women have made up the difference – single men purchased 10 percent of all homes last year, compared to only 7 percent 10 years ago. Single women now represent more than one-fifth of all home buyers – 21 percent, up from 15 percent in 1999. Other things haven’t changed. The median age for home buyers last year was 39, just as it was in 1999. Neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future. “... one constant during [the last 100 years] has been the persistence of homeownership as the American Dream,” says NAR president Vicki Cox Golder.
Tuesday, December 29, 2009
Happiest U.S. States Pinned Down
Source: LiveScience.com
By Jeanna Bryner, Managing Editor
posted: 17 December 2009 02:00 pm ET
A new study found that a person's self-reported happiness matches up with objective measures of state-level happiness.
The results are based on an examination of two data sets, one that included personal reports of happiness for 1.3 million Americans and the other that included objective measures, such as how crowded that state is, air quality, home prices and other factors known to impact quality of life.
Click here to learn more about the survey and what it means.
Here are the 50 U.S. states (and the District of Columbia) in order of their well-being:
1. Louisiana
2. Hawaii
3. Florida
4. Tennessee
5. Arizona
6. Mississippi
7. Montana
8. South Carolina
9. Alabama
10. Maine
11. Alaska
12. North Carolina
13. Wyoming
14. Idaho
15. South Dakota
16. Texas
17. Arkansas
18. Vermont
19. Georgia
20. Oklahoma
21. Colorado
22. Delaware
23. Utah
24. New Mexico
25. North Dakota
26. Minnesota
27. New Hampshire
28. Virginia
29. Wisconsin
30. Oregon
31. Iowa
32. Kansas
33. Nebraska
34. West Virginia
35. Kentucky
36. Washington
37. District of Columbia
38. Missouri
39. Nevada
40. Maryland
41. Pennsylvania
42. Rhode Island
43. Massachusetts
44. Ohio
45. Illinois
46. California
47. Indiana
48. Michigan
49. New Jersey
50. Connecticut
51. New York
By Jeanna Bryner, Managing Editor
posted: 17 December 2009 02:00 pm ET
A new study found that a person's self-reported happiness matches up with objective measures of state-level happiness.
The results are based on an examination of two data sets, one that included personal reports of happiness for 1.3 million Americans and the other that included objective measures, such as how crowded that state is, air quality, home prices and other factors known to impact quality of life.
Click here to learn more about the survey and what it means.
Here are the 50 U.S. states (and the District of Columbia) in order of their well-being:
1. Louisiana
2. Hawaii
3. Florida
4. Tennessee
5. Arizona
6. Mississippi
7. Montana
8. South Carolina
9. Alabama
10. Maine
11. Alaska
12. North Carolina
13. Wyoming
14. Idaho
15. South Dakota
16. Texas
17. Arkansas
18. Vermont
19. Georgia
20. Oklahoma
21. Colorado
22. Delaware
23. Utah
24. New Mexico
25. North Dakota
26. Minnesota
27. New Hampshire
28. Virginia
29. Wisconsin
30. Oregon
31. Iowa
32. Kansas
33. Nebraska
34. West Virginia
35. Kentucky
36. Washington
37. District of Columbia
38. Missouri
39. Nevada
40. Maryland
41. Pennsylvania
42. Rhode Island
43. Massachusetts
44. Ohio
45. Illinois
46. California
47. Indiana
48. Michigan
49. New Jersey
50. Connecticut
51. New York
Labels:
Boating,
Bonita Springs,
Entertainment,
Estero,
Florida,
Foreclosures,
Fort Myers,
Fort Myers Beach,
Ginny Nobbe,
Heather Wightman,
Local,
Naples,
News,
Waterside,
Waterside at Bay Beach
Move Up / Repeat Home Buyer Tax Credit
The Worker, Home ownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for
qualified ed move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009
and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).
The following questions and answers are from www.federalhousingtaxcredit.com and provide basic information about
the tax credit. If you have more specif c questions, we strongly encourage you to consult a qualified ed tax advisor or legal
professional about your unique situation.
Who is eligible to claim the $6,500 tax credit?
Qualified move-up or repeat home buyers purchasing any kind of home are
eligible to claim this credit.
What is the definition of a move-up or repeat home buyer?
The law defines a tax credit qualified move-up home buyer (“long-time
resident”) as a home owner who has owned and resided in a home for at
least five consecutive years of the eight years prior to the purchase date.
For married taxpayers, the law tests the home ownership history of both
the home buyer and his/her spouse. Repeat home buyers do not have
to purchase a home that is more expensive than their previous home to
qualify for the tax credit.
How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a
maximum of $6,500. Purchases of homes priced above $800,000 are not
eligible for the tax credit.
Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $125,000; the limit is $225,000
for married taxpayers filing a joint return. The tax credit amount is reduced
for buyers with a modified adjusted gross income (MAGI) above those
limits. The phaseout range for the tax credit program is equal to $20,000.
That is, the tax credit amount is reduced to zero for taxpayers with MAGI
of more than $145,000 (single) or $245,000 (married) and is reduced
proportionally for taxpayers with MAGIs between these amounts.
How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?
The previous tax credits applied only to first-time home buyers and were
for different amounts of money.
How do I claim the tax credit? Do I need to complete a form or application?
Are there documentation requirements?
You claim the tax credit on your federal income tax return. Specifically,
home buyers should complete IRS Form 5405 to determine their tax credit
amount, and then claim this amount on line 67 of the 1040 income tax form
for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No
other applications are required, and no pre-approval is necessary.
HUD is now allowing "monetization" of the tax credit. What does that mean?
It means that HUD allows buyers using FHA-insured mortgages to apply
their anticipated tax credit toward their home purchase immediately rather
than waiting until they file their 2009 or 2010 income taxes to receive a
refund. These funds may be used for certain downpayment and closing
cost expenses. Under HUD’s guidelines, non-profits and FHA-approved lenders are
allowed to give home buyers short-term loans of up to $8,000. The
guidelines also allow government agencies, such as state housing finance
agencies, to facilitate home sales by providing longer term loans secured
by second mortgages.
Frequently Asked Questions About the Move-Up/Repeat Home Buyer Tax Credit
Please see www.FederalHousingTaxCredit.com for more detailed answers and more FAQ.
Source: www.FederalHousingTaxCredit.com
Information accessed: 11/8/09
qualified ed move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009
and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).
The following questions and answers are from www.federalhousingtaxcredit.com and provide basic information about
the tax credit. If you have more specif c questions, we strongly encourage you to consult a qualified ed tax advisor or legal
professional about your unique situation.
Who is eligible to claim the $6,500 tax credit?
Qualified move-up or repeat home buyers purchasing any kind of home are
eligible to claim this credit.
What is the definition of a move-up or repeat home buyer?
The law defines a tax credit qualified move-up home buyer (“long-time
resident”) as a home owner who has owned and resided in a home for at
least five consecutive years of the eight years prior to the purchase date.
For married taxpayers, the law tests the home ownership history of both
the home buyer and his/her spouse. Repeat home buyers do not have
to purchase a home that is more expensive than their previous home to
qualify for the tax credit.
How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a
maximum of $6,500. Purchases of homes priced above $800,000 are not
eligible for the tax credit.
Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $125,000; the limit is $225,000
for married taxpayers filing a joint return. The tax credit amount is reduced
for buyers with a modified adjusted gross income (MAGI) above those
limits. The phaseout range for the tax credit program is equal to $20,000.
That is, the tax credit amount is reduced to zero for taxpayers with MAGI
of more than $145,000 (single) or $245,000 (married) and is reduced
proportionally for taxpayers with MAGIs between these amounts.
How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?
The previous tax credits applied only to first-time home buyers and were
for different amounts of money.
How do I claim the tax credit? Do I need to complete a form or application?
Are there documentation requirements?
You claim the tax credit on your federal income tax return. Specifically,
home buyers should complete IRS Form 5405 to determine their tax credit
amount, and then claim this amount on line 67 of the 1040 income tax form
for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No
other applications are required, and no pre-approval is necessary.
HUD is now allowing "monetization" of the tax credit. What does that mean?
It means that HUD allows buyers using FHA-insured mortgages to apply
their anticipated tax credit toward their home purchase immediately rather
than waiting until they file their 2009 or 2010 income taxes to receive a
refund. These funds may be used for certain downpayment and closing
cost expenses. Under HUD’s guidelines, non-profits and FHA-approved lenders are
allowed to give home buyers short-term loans of up to $8,000. The
guidelines also allow government agencies, such as state housing finance
agencies, to facilitate home sales by providing longer term loans secured
by second mortgages.
Frequently Asked Questions About the Move-Up/Repeat Home Buyer Tax Credit
Please see www.FederalHousingTaxCredit.com for more detailed answers and more FAQ.
Source: www.FederalHousingTaxCredit.com
Information accessed: 11/8/09
Monday, October 19, 2009
Foreclosures: 'Worst three months of all time'
Source: Les Christie, CNNMoney.com staff writer
Despite signs of broader economic recovery, number of foreclosure filings hit a record high in the third quarter - a sign the plague is still spreading.
Last Updated: October 15, 2009: 7:34 AM ET
NEW YORK (CNNMoney.com) -- Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.
"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.
During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.
Nevada continued to be the worst-hit state with one filing for every 23 households. But even tranquil Vermont, where the foreclosure crisis has barely brushed the housing market, saw foreclosure filings jump nearly 170% compared with the third quarter of 2008. Still, that resulted in just one filing for every 5,023 households in the state -- the best record in the country.
The RealtyTrac report also unveiled the results for September, and it found that there was slight relief from foreclosure filings. Last month, notices totaled 343,638, down 4% compared with August. Unfortunately, that total accounts for 87,821 homes that were repossessed by lenders.
That deluge contributed significantly to the quarter's record 237,052 repossessions, a 21% jump from the previous three months. So far this year lenders have taken back 623,852 homes.
"REO activity increased from the previous quarter in all but two states and the District of Columbia, indicating that lenders may be starting to work through some of the pent-up foreclosure inventory caused by legislative delays, loan-modification efforts and high volumes of distressed properties," James Saccacio, RealtyTrac's CEO, said in a statement.
Most disturbing is that all foreclosures -- not just repossessions -- are rampant despite efforts to corral them. Not only has the Obama administration's Making Home Affordable foreclosure prevention program taken a bite out of REOs but lenders themselves have scaled back repossessions over the past few months to give the program time to work.
And in some low-price markets, lenders simply aren't following through on foreclosures, according to Jim Rokakis, treasurer for Cuyahoga County, Ohio, which includes Cleveland.
"They'll even set the date for the sheriff's sale, but they don't file the final papers," he said. "They hold it in abeyance and let the residents stay in the house."
In ever more frequent cases, delinquent borrowers want out of the mortgage worse than the lenders. There are no firm statistics for it, but many industry watchers claim the percentage of REOs caused by borrowers voluntarily walking away from their homes is skyrocketing.
A study of the trend by the Chicago Booth School of Business and the Kellogg School of Management determined that when home price declines drop home values 10% below the mortgage balances, people start to give up their homes. When "negative equity" approaches 50%, 17% of households default, even when they can still afford their mortgage payments.
No end in sight
The foreclosure crisis may not diminish anytime soon. "The fastest growing area is in the 180 days late-plus category, the most seriously delinquent borrowers," Sharga said. "It's going to be a lingering problem."
Plus, the RealtyTrac statistics may understate the depth of the foreclosure mess because lender and government actions have delayed many filings. As a result, some delinquencies have not been counted on the foreclosure tallies. That means the crisis may not end quickly.
And because there are so many delinquent borrowers, Sharga predicts the banks will be slow to take back their properties and put the repossessed homes back on the market.
"It's hard to envision [the banks] putting millions on properties up for sale and cratering prices," he said. "Recovery will be slow and gradual. I don't see home prices getting much better until 2013."
First Published: October 15, 2009: 3:39 AM ET
Despite signs of broader economic recovery, number of foreclosure filings hit a record high in the third quarter - a sign the plague is still spreading.
Last Updated: October 15, 2009: 7:34 AM ET
NEW YORK (CNNMoney.com) -- Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.
"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.
During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.
Nevada continued to be the worst-hit state with one filing for every 23 households. But even tranquil Vermont, where the foreclosure crisis has barely brushed the housing market, saw foreclosure filings jump nearly 170% compared with the third quarter of 2008. Still, that resulted in just one filing for every 5,023 households in the state -- the best record in the country.
The RealtyTrac report also unveiled the results for September, and it found that there was slight relief from foreclosure filings. Last month, notices totaled 343,638, down 4% compared with August. Unfortunately, that total accounts for 87,821 homes that were repossessed by lenders.
That deluge contributed significantly to the quarter's record 237,052 repossessions, a 21% jump from the previous three months. So far this year lenders have taken back 623,852 homes.
"REO activity increased from the previous quarter in all but two states and the District of Columbia, indicating that lenders may be starting to work through some of the pent-up foreclosure inventory caused by legislative delays, loan-modification efforts and high volumes of distressed properties," James Saccacio, RealtyTrac's CEO, said in a statement.
Most disturbing is that all foreclosures -- not just repossessions -- are rampant despite efforts to corral them. Not only has the Obama administration's Making Home Affordable foreclosure prevention program taken a bite out of REOs but lenders themselves have scaled back repossessions over the past few months to give the program time to work.
And in some low-price markets, lenders simply aren't following through on foreclosures, according to Jim Rokakis, treasurer for Cuyahoga County, Ohio, which includes Cleveland.
"They'll even set the date for the sheriff's sale, but they don't file the final papers," he said. "They hold it in abeyance and let the residents stay in the house."
In ever more frequent cases, delinquent borrowers want out of the mortgage worse than the lenders. There are no firm statistics for it, but many industry watchers claim the percentage of REOs caused by borrowers voluntarily walking away from their homes is skyrocketing.
A study of the trend by the Chicago Booth School of Business and the Kellogg School of Management determined that when home price declines drop home values 10% below the mortgage balances, people start to give up their homes. When "negative equity" approaches 50%, 17% of households default, even when they can still afford their mortgage payments.
No end in sight
The foreclosure crisis may not diminish anytime soon. "The fastest growing area is in the 180 days late-plus category, the most seriously delinquent borrowers," Sharga said. "It's going to be a lingering problem."
Plus, the RealtyTrac statistics may understate the depth of the foreclosure mess because lender and government actions have delayed many filings. As a result, some delinquencies have not been counted on the foreclosure tallies. That means the crisis may not end quickly.
And because there are so many delinquent borrowers, Sharga predicts the banks will be slow to take back their properties and put the repossessed homes back on the market.
"It's hard to envision [the banks] putting millions on properties up for sale and cratering prices," he said. "Recovery will be slow and gradual. I don't see home prices getting much better until 2013."
First Published: October 15, 2009: 3:39 AM ET
Subscribe to:
Posts (Atom)