Role Of The Hardship Letter In A Short Sale

What happened? Seriously what happened? When you took the loan out everything was great. You were making money, your credit was good and by all accounts you appeared financially sound.


Now you’re in default and telling your lender you need to sell the property short to avoid the home being repossessed by foreclosure? Ok, then tell us what happened.


We hear this all of the time and we tell the homeowners this is exactly what the bank is thinking and this is what they will have to explain. So just how do you explain it…you write a very compelling hardship letter.


Bad things sometimes happen to good people. It is highly doubtful that the homeowner intended to default on his / her mortgage and end up in foreclosure.


Most likely their enjoyment of the American Dream of homeownership was interrupted by some tragic event.


Maybe the loss of a job, a bitter divorce, or the unfortunate untimely illness or death of a family member caused the homeowner borrower to default on his mortgage.


Whatever the catalyst, the lender wants to hear from the borrower just what happened to cause them to be in the financial situation they are in.

If the bank is going to consider taking a short sale, they need to be convinced that something drastic has happened to the borrower that will make it impossible for the borrower to recover and that it is in the bank’s best interest to accept a short sale on the defaulted mortgage.

Top 10 Home Buying Mistakes

1. Doing it alone. Buying a house is a complex transaction. Even if you don’t use an agent, you’ll need a complete, dependable team: lender, lawyer, inspector, insurer, as well as referrals and advice from friends and family. Enlist the help of these individuals early in the buying process.



2. Buying at first sight. You may be in love with the place, but does it fit your family’s needs and budget? Make a list of your needs and wants and make sure the house fits your requirements. Check out the neighborhood and the community before you buy by visiting at different times of the day and week to learn about noise and traffic patterns. Even if you don’t have kids, check out the local schools to make sure your resale value will be good.



3. Not getting pre-qualified and pre-approved. Being pre-qualified gives you a general idea of how much you can afford to borrow. Being pre-approved means a lender has verified your information and credit rating and agreed to provide you with a specific amount of money. You are in a better position to go house hunting knowing exactly how much you can afford and that you have financing.



4. Overbuying. You may qualify to borrow more, but can you afford to? Analyze your monthly costs: debt, food, transportation, entertainment, and savings. As a general rule, your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Be sure to budget enough to cover closing costs (often two to five percent of the home’s purchase price), plus moving, redecorating and maintenance. Allow for increases in ongoing expenses such as utilities and taxes.



5. Misplacing your trust. No matter how much you like the agent, sellers, inspector, or the guy down the block who vouches for them, remember this is a business transaction. Your decision is binding. Do your own research and know your support team’s roles and responsibilities.



6. Relying on oral agreements. Get it right and get it in writing. Written agreements almost always trump oral ones when it comes to contracts. If the offer says the lawnmower is negotiable, but the agent says it’s included, get it in writing.



7. Skipping the fine print. You need to understand what you’re signing before you pick up a pen. Ask for documents in advance, make time to read them and ask questions. Get copies of your mortgage papers a few days ahead of closing.



8. Forgetting or betting on resale. Avoid buying a home that costs 50 percent more than neighboring homes and think before buying the most expensive home on the block. Your neighbors’ lower home values will weaken yours. Remember, markets change. If you buy intending to flip your investment and the market falls and you have to sell, your selling price may not be enough to even cover your mortgage.



9. Making an unconditional offer. Protect yourself with at least two of these contingencies in your offer:

* Mortgage financing -- You’re pre-approved, but is the house? Before a bank will lend you money, it will want a formal appraisal of the property to confirm that there is sufficient equity in it to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.
* Inspection -- never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.
* Insurance -- confirm you can get adequate coverage. In some areas, it’s difficult to get hazard insurance.



10. Having buyer’s remorse. No place is perfect. There will always be surprises. Don’t let a few initial blips spoil the whole ride. And don’t miss a great house waiting for the perfect one!

Quiz School - Try this quiz and get your own certificate

Rose Realty Joins Realty USA

Rose Realty has entered into an agreement to merge its Sidney Real Estate Firm with RealtyUSA’s Otsego/Delaware region. Rose Realty in Sidney NY has served the region proudly for over twelve years. Owners Steven and Jacqlene Rose and their team will join RealtyUSA’s Sidney Office at 39 Main Street.

Steven Rose states, "It is with sincerest gratitude that we recognize, appreciate and thank the customers and clients that have made our office so successful over the last 12 years. This new partnership will make it possible for us to offer much more services and products to them and to continue the relationships that we have built and will continue to build for many years to come. We are pleased to partner up with such a professional and successful organization."

Merle Whitehead, Broker/Owner of RealtyUSA, said “I am excited to add such a great team to our current Otsego/Delaware family. This is a great fit that will help us continue to serve the Southern Tier market with distinction.”

RealtyUSA is the largest, independent real estate company in New York State with over 55 offices and nearly 2,500 agents and employees. RealtyUSA is ranked #5 in the United States in terms of the largest independent real estate firms.

• Merle L. Whitehead, CRB


• President / CEO


• RealtyUSA.com, Inc.


• 6505 East Quaker Street


• Orchard Park, NY 14127


• (716) 662-2000


• (716) 662-3385

France’s Carrefour Negotiating with Indian Cos for its Indian Retail Venture

French retailer Carrefour (CARR.PA) is in talks with Indian companies for a partnership and expects to start its business in India with cash-and-carry activities, the company told Reuters. The world’s second largest retailer, however, declined to give names of the companies it is negotiating with and also did not confirm whether it was in talks with Future Group, which runs Pantaloon Retail (PART.BO), India’s largest listed retailer.


“Carrefour and some Indian companies have been discussing partnerships but we do not want to comment on any of the company we have been talking to,” Carrefour said in a emailed statement to Reuters. Indian media has speculated on a tie-up between Pantaloon and Carrefour to launch franchise stores in India. Earlier this week, Future Group Chief Executive Kishore Biyani told Reuters that his company was in talks with several overseas retailers but declined to specify whether Carrefour was one of them.


Indian regulations do not allow foreign direct investment by multi-brand retailers although they can come in through franchise agreements with local players. Foreign retailers are allowed to invest up to 51 percent in single-brand retail and 100 percent in cash-and-carry ventures. India’s robust economic growth at more than 7 percent and its burgeoning middle-class with greater spending power are magnets for foreign retailers who are facing declining demand in their home markets.


The Indian retail market is estimated to be worth about $450 billion, of which organized retail with a share of 6 percent is growing at more than 20 percent. The restrictions on foreign investments in retail have left overseas players with no choice but to enter the Indian market with domestic partners, or set up cash and carry ventures. “Carrefour will develop its activities in India with the start of cash & carry activities in 2010,” the company said. The French firm has set up two entities in India - Carrefour WC&C India Pvt Ltd to carry on cash and carry business and Carrefour Master Franchise Company Pvt Ltd for its retail business.


Carrefour, which has been scouting the Indian market for nearly seven years, has been meeting local vendors and suppliers to finalize sourcing arrangements for food and non-food items. The company already sources supplies worth about $2 billion from India, according to industry estimates. Wal-Mart which has a joint venture with Bharti Enterprises has set up its cash-and-carry store in north India while Germany’s Metro AG (MEOG.DE) operates around five cash-and-carry stores in the country.

Foreclosures Keep Rising Despite Prevention Efforts

Foreclosure prevention efforts and moratoria that were in place in January and most of February do not seem to be effective in reducing foreclosures across the nation, especially in Sunbelt areas.

According to Realty Trac, the number of houses under foreclosure process has risen by 30 percent in February as compared to what it was a year ago. It has also increased 6 percent from January 2009.

A total of 290,631 properties were facing foreclosure nationwide, the report said. The states with highest foreclosure rates included Nevada, California and Arizona. Closed on the heels were Florida, Michigan, Idaho, Georgia, Illinois, Oregon and Ohio.

The states where the highest number of homes were under the process of foreclosure included California, Arizona and Florida. They were followed by Nevada, Michigan, Illinois, Ohio, Georgia, Texas and Virginia.

Impact of Budget 2010 on Real Estate Sector in India

The Budget 2010 presents a mixed bag for real estate sector in India.

With the recession fading out gradually and fund raising showing gradual and steady increase once again, the Indian real estate sector was clearly looking at 2010 as a year to build on its 2008 run. While concerns over liquidity and demand constraints have eased, developers were looking to execute the planned projects to maintain cash flows rather than raise more debt. The industry was therefore looking at Budget 2010 for “boosters” like tax breaks for townships / affordable housing sector, allaying the ambiguities on the real estate mutual funds to heal the bruises that the sector suffered in 2009. While the “infrastructure” status still alludes the real estate sector, a clear lean towards low-cost real estate especially housing was seen. It would be interesting to look at both sides of the coin flipped up by the Budget 2010.

The Positives

The pending housing projects have been granted a one year extension for completion, from the existing four years to five years, for claiming a 100% deduction on their profits under section 80-IB of the Income Tax Act, 1961 (“Act”). This extension is available for housing projects approved by a local authority on or after April 1, 2005.


In addition, under section 80-IB of the Act the built-up area of shops and other commercial establishments in housing projects has been relaxed to 3% of the aggregate built-up area of the housing project or 5000 square feet, whichever is less, from the existing 5% of the aggregate built-up area or 2000 square feet, whichever was less.


A 4 month extension has been provided for setting up and commencing operations of hotels and convention centers in National Capital Territory of Delhi and specified surrounding regions. Such hotels and convention centers would now be eligible to claim specified deductions, where such facilities are set up and commence business by July 31, 2010.


Investment linked incentives have been proposed for the business of building and operating new hotels of two-star or above category, anywhere in India, which start functioning after April 1, 2010. The incentives are in the nature of 100% deduction with respect to capital expenditure, incurred wholly and exclusively, for the purposes of such business, provided such expenditure is incurred prior to commencement of operations and the amount is capitalized in the books of such undertaking.


One per cent interest subvention on housing loans up to Rs.10 lakh (where the cost of the house does not exceed Rs.20 lakh) has been extended till March 31, 2011.


There has been higher allocation under Indira Awas Yojana and other rural development/infrastructure schemes.

What it means:

The extension of time period for completion of existing projects will give the industry players the comfort of time and help developers whose projects were held up during the slowdown of last year.
The relaxations regarding commercial establishments in the housing projects would enable basic facilities for the residents and help developers and real estate companies to make their projects more viable. Whilst the demand for “infrastructure” status to hotels has not been acceded to, inclusion of hotels for eligible deduction, through an investment linked incentive and not a profit linked one (as demanded by the industry players) does sweeten the deal and is likely to stimulate investments in this sector.
The interest subvention along with increase in the tax slab rates for individuals should provide the necessary demand boost for low-cost housing. It may also encourage the developers to build more houses in this segment to benefit from this demand pick-up.

And The Negatives

Budget 2010 in spite of positives like incentives to hotel business, housing projects, higher allocation under Indira Awas Yojana and other rural development/infrastructure schemes, is unlikely to meet the expectations of the industry primarily due to some of the service tax proposals such as.


Service tax on commercial rentals: The High Court of Delhi in the case of Home Retail Solution and Ors. v. Union of India had clarified that renting of commercial property would not be subject to the levy of service tax. The Budget has amended the scope of ‘Renting of Immovable Property Service’ to directly overrule the High Court judgment and to explicitly cover the activity of mere renting as well and this has been done with retrospective effect from 1st June 2007.
Moreover, renting of vacant land where the agreement of contract between lessor and lessee provided for undertaking construction of building/structure on such land for furtherance of business or commerce during the lease period will also be subjected to service tax.


Construction of real estate complexes will now attract service tax, unless the entire consideration for the property is paid after the completion of construction, that is, on obtaining the occupation certificate from the concerned authorities.


Service tax will now also be levied on additional services provided by a builder to buyers for extra charge like preferential location, internal and external development of complexes.


Increase in the standard rate of excise duties to 10% and also on cement, which is a major input for real estate construction.


What it means: Service tax on the activity of construction would primarily mean, buyers paying higher price for property which is under construction.


The expansion of scope of ‘Renting of Immovable Property Service’ is likely to be one of the most controversial proposals. Pursuant to the Delhi High Court judgment, most industry players refrained from paying service tax pursuant to such transactions. This amendment would have a significant impact on both the real estate sector as also sectors which rely on lease of immovable property for running their business. Further, retrospective nature of the amendment will now result in an adverse impact on the sector and may lead rise to a large amount of litigation.


In an industry where agreement of contract between lessor and lessee providing for construction of building/structure on vacant lands are a common phenomenon, an imposition of service tax on such transactions is not likely to go down too well with the real estate sector.


The increase in the standard rate of excise duty and increase in duty of cement and petroleum products will increase the cost of construction and it is expected that per unit cost for prospective buyers will also increase. But, the industry may also have to bear the pinch of such increase in excise duties, as at present, when the demand is on a slow recovery path, it may not be able to pass on the entire increase in the cost of construction to the buyers.

Conclusion

From demand boosters and other reliefs, to far-ranging service taxes and higher excise duties, the Budget 2010 presents a mixed bag for real estate sector in India. However, it has failed to address some of the key demands of the real estate developers, including infrastructure status to the real estate sector, relaxation of external commercial borrowings to fund projects, provision of separate deduction of Rs. 1 lakh for housing loan repayment or increasing the overall 80C deduction to Rs. 2 lakhs et al.
Though the positives mentioned above will indeed ease the burden imposed by widening the service tax net and rise in excise duties, it is difficult to be clairvoyant on the impact of the policy announcements at this time. However, it seems the service tax implications, especially from renting of property that are now required to be reckoned from 2007 are likely to be the dampeners in the growth driven and growth stimulated Budget 2010.

Indian Real Estate Sector Cautious about Expansion

It’s at the cusp of a recovery, but India’s usually aggressive real estate sector is being cautious about expansions this time. Excesses by large realty firms—such as aggressive land buying, massive projects with long gestation periods, and venturing into new territories such as power and logistics—as well as the downturn had pushed the sector into a deep slump in 2009.

Now, as growth returns, developers are ordering feasibility studies before launching projects, entering into strategic tie-ups for raw material and labour, appointing project management consultants, and outsourcing construction work for quicker delivery, say property consultants.

Such measures are fairly new for a sector dominated by family-run businesses. “Builders are back with a bang,” said Aditi Vijaykar, executive director (residential) at Cushman and Wakefield India, a property advisory. “They want to try out new locations for projects and are trying to test market a product before launching it.” DLF Ltd, India’s largest developer by market value, said it will not buy land in 2010-11 or launch projects until it has regulatory approvals.

Its working capital model will depend on cash flow from pre-sales, customer advances and bank debt. “It is difficult to stop speculative buying, but a system like one home per family is required,” DLF executive director Rajeev Talwar said. “The chances of end users exiting projects are less because property investments are usually a lifelong affair for them.”


Mumbai-based DB Realty Ltd, which has aggressive plans in suburban Pune, is conducting feasibility studies on the sizes and pricing of homes to ensure the right profile for its projects. Consultants said this was rarely done earlier. Shahid Balwa, managing director of DB Realty, did not respond to queries.


Also, realty firms that are raising money though initial public offerings (IPOs) are aiming to use the funds for ongoing and proposed projects or to retire debt, said J.C. Sharma, MD of Bangalore-based Sobha Developers Ltd. The firms are monetizing land banks and reworking sales strategies to reach a larger clientele, he said. “This is very different from what realty IPOs in 2006 and 2007, including Sobha, did. That time, everyone was raising money only to buy more land,” added Sharma.



In February, Housing Development and Infrastructure Ltd (HDIL), the country’s third largest developer by market value, announced a 1.2 million sq. ft slum redevelopment project valued at Rs2,000 crore. HDIL, which had turned its focus from slum projects to residential development last year, has big-ticket launches coming up this year.

It plans to launch another two or three slum projects in the next six-seven months. Hari Pandey, assistant vice-president (finance) at HDIL, said execution has become crucial for the firm. If pre-sales account for more than half the units of a residential project within three months of its launch, it has a high chance of being self-funded, he said.



“We are outsourcing about 80% of construction work to contractors, which we would do ourselves earlier. This is for speedy delivery as we are also scaling up our plans,” Pandey added. Developers are also looking at special purpose vehicles or joint ventures instead of purchasing land outright. Parsvnath Developers Ltd is looking at a month-on-month delivery target for faster completion. The company wants to construct around 45 million sq. ft of space in the next 24 months, and build around 1.25 million sq. ft in the last quarter.



The company has outsourced construction and appointed a project management consultant to keep a check on the work, as well as tied up with vendors for long-term supply of key materials. “We are also looking at a project-on-project basis of funding either through debt or private equity (PE) channels,” said Pradeep Jain, chairman of Parsvnath Developers. PE investors are also enforcing some good practices. Ramesh Jogani, MD and chief executive of Indiareit Fund Advisors Pvt. Ltd, said developers need to ensure their projects are rational in profile. “Even in residential projects, what is the need to build 30-40 storeyed towers which take five-six years to finish?” asked Jogani. “One needs to travel the middle path and offer mid-range products which assure quality.”

Micro-blogging - Breaking News for Real Estate

Pat Kitano, over at Transparent RE, posted about micro-blogging for real estate. Micro-blogging is being defined as immediate posting of breaking news, with little or no delay using Twitter and other immediate posting sites.


Pat mentions the delay in RSS feeds, as they are dependent upon the subscriber's reader, and how often it requests to be updated. He also differentiates between the two types of blogging, as one is much more immediate than the other, allowing a real estate professional to release "breaking news" type items for immediate display, say on a Twitter page. As Twitter feeds can also be displayed on other networking sites, such as Facebook, this would create an instantaneous, or close to it, breaking real estate news service some people would like.


I'm not sure how many real estate professionals actually have enough "breaking news" type of items to release in this way, or how many people actually would want to get them, but some may choose to receive them as text messages or in other ways that are very immediate in nature. Here are two ways to get this done:


* Immediate WordPress Post to Twitter - Using the Birdfeeder plugin, I've tested and a post is immediately fed to Twitter from a WordPress blog. However, unless you want all of your posts to go out immediately, this plugin won't help. It doesn't allow selecting posts for immediate release to your Twitter account. If it's truly "breaking news" you want to treat this way, you could have a blog set up just for these releases, thus all posts would apply.

* A 5 to 30 Minute Release - I know of one way to get blog posts to Twitter in 5 to 30 minutes. I use Twitterfeed, which takes my RSS feed and sends the posts to Twitter. Twitterfeed will check your feed every 30 minutes (sorry no quicker), and send the post to Twitter.

* I have found most getting there in under 30 minutes, many in five or so. If it's been 25 minutes since the last check, and I hit the publish button, then the post will get there faster. I send all of my posts there, but you could create a category just for "breaking news," and use that category to feed a special Twitter account just for this purpose. I think that I don't have any news that can't wait a half hour.


Think about whether you really have information that will have enhanced value if immediately delivered. If not, you may risk losing followers who find that your "breaking news" isn't useful news.

Home sales 27% higher in 4th quarter over last year

Home sales posted strong gains in the fourth quarter and prices rose in nearly 45% of U.S. metropolitan areas compared with a year earlier, more evidence of an improving climate in housing.


Bolstered by low interest rates and a first-time home buyers tax credit, existing-home sales rocketed 27.2% from the fourth quarter of 2008 to a seasonally adjusted annual rate of 6.03 million, the National Association of Realtors reported Thursday.


The national median price for an existing single-family home was $172,900, or 4.1% below the median price in fourth-quarter 2008. That was the smallest price decline in more than two years.


Prices rose in 67 out of 151 metro areas in the fourth quarter compared with a year earlier. Only 30 areas had annual price increases in the third quarter.


Sixteen areas had double-digit increases last quarter, led by Saginaw, Mich., up 53.5% to a median of $67,400.


"There's a growing body of evidence that the housing market has stabilized. The question is how quickly can it recover and will we bump along at the bottom for a couple of months?" says Bernard Baumohl, chief global economist at the Economic Outlook Group. "In the first couple of months of 2010, we should see a healthy turnaround."


Baumohl says the combination of low interest rates and tax credits for qualifying home buyers should lure buyers, further stabilizing prices and boosting sales.


But the market could falter once the tax credit expires April 30 and if interest rates begin to climb later this year as many economists expect.


The credit is worth up to $8,000 for first-time buyers and up to $6,500 for repeat buyers. But they must have purchase contracts signed by April 30 and close by June 30.


The national average mortgage rate for a 30-year, fixed-rate loan fell to 4.97% this week, down from 5.01% a week ago, Freddie Mac reported Thursday.


But foreclosures are expected to climb, which could further depress prices. Foreclosure filings were reported on 315,716 properties in January, 15% more than a year ago, RealtyTrac reported Thursday.


"It's premature to say the coast is clear. The housing credit really played a role in juicing up sales," says Mark Zandi at Moody's Economy.com. "We're closer to the end of the downturn than the beginning, but we're not there yet."

Real Estate Firms Concerned Over Diminishing NRI Interest in Indian Property

Apart from biting cold weather of the capital, lack of enthusiasm among overseas Indians to buy properties in India has further dampened spirits of some of the realty firms, as well as around half a dozen banks, which put up impressive stalls outside the venue of the recently concluded Pravasi Bhartiya Divas (PBD) at Vigyan Bhavan. Of course, realty firms were trying to woo the ‘pravasis’ to buy their products while banks were ready to clear their home loans, then and there. But, both got a rude shock. In a way, it was a departure from earlier PBD meets when a large number of NRIs used to book their properties in various parts of the country.


So, what went wrong this time round; why aren’t the NRIs taking any interests in the upcoming projects of realty firms? Are they facing a financial crunch? After taking to several NRIs at the meet, one thing has clearly emerged - that a reallife version of “Khosla ka ghosla” is being played out with an increasing number of NRIs. A furious Naresh Chopra, a NRI from America, said that he had booked one flat in Gurgaon in a project of a very well-known realty player. He had also been paying whatever money the realty firm was asking of him. Despite that, there was no progress on the project. The realty firm failed to deliver the flat to him, which they promised to hand over almost a year ago. While narrating his tale, he also said he would take up this matter with Vayalar Ravi, overseas Indian affairs minister.


Complaints of real estate deals going sour, illegal encroachment and unauthorized occupation of properties have flooded the officials of ministry of overseas Indian affairs during this PBD. Property dispute is one of the most common complaints by NRIs. They are unable to protect their property due to long absences or lack of awareness of laws, Vayalar Ravi admitted. Moreover, some realty firms are not delivering them their flats on time. The largest number of complaints is from major real estate markets like Delhi, Mumbai, Bangalore , and also from Andhra Pradesh, Kerala and Punjab. The nature of the complaints are mainly over protection of properties that have been forcibly occupied or encroached, disputes relating to division of property or inheritance, and cases where investors have been cheated by real estate developers.


Though there was a session on property disputes at the PBD, only assurances were given to harassed overseas Indians by officials. Navin Raheja, CMD of Raheja group, who had a stall at the PBD venue, admitted that the NRI response was rather cold. “They seem to be reluctant to invest here as some unscrupulous developers have duped them of their money by not delivering projects at all, or in some cases, projects have got inordinately delayed as well. These factors have contributed towards a comparative lack of interest on part of overseas Indians,” he admits.


R K Arora, CMD of Supertech group, admits that NRIs are buying fewer properties now as compared to two-three years ago. “They buy properties in the range of Rs 60 lakhs to Rs 80 lakhs. They buy properties for purely investment purpose. There is hardly any emotional factor that is involved. As and when they get good appreciation on their properties , they dispose it off,” he says.

After not-so-great response from NRIs last year, at the PBD held in Chennai , realty advisory Century 21 India did not put up its stall in Delhi this time. Sanjay Singh, marketing director of Century 21 India, says that NRIs can again start buying properties in India provided authorities ensure that their interests are not compromised. “It is also not true that they are not buying properties here at all. They are still buying , but not in a big way. My advice to them would be to stick to metros and major cities only, as Tier 2 and Tier 3 cities still face uncertainty on the oversupply situation,” says Sanjay. Samir Jasuja, CMD of PropEquity, has a word of caution.


“They must see to it that they invest with developers with a proven track record and not be taken in by glitzy ads or aggressive media campaigns,” he says. According to him, unlike the general perception, NRIs do not invest in properties in a big way. “Indian realty market would not crash if they desert it. There are basically two types of NRIs who invest in realty market. One, those who buy property from a purely commercial angle. Two, those who send money from some European country or US to their parents or close relatives to buy properties. In both cases, the number is not that really big,” he says.


Chandrasekhar Tiwari, an eminent scholar on Indian diaspora affairs, says that perhaps only those NRIs are buying properties in India who have migrated to other countries during the last 25 yeas or so. They are still very much close to their roots. “I am pretty sure that those who had shifted before 25 years or so are not buying properties. Only the first generation NRIs are coming back to India. All stakeholders should see to it that NRIs keep their ties with India intact. We should create a situation which is ideal for them so that they keep on investing here,” feels Tiwari. Ashish Jindal, regional head (North) at Knight Frank India Pvt Ltd, says that the current situation is right for NRIs to enter the market as the market has started its upward movement and prices would definitely harden over the next few months.


Experts also say that NRIs have always been active in the Indian real estate sector. They have always bought into built up units in major cities or purchased land in their ancestral city or town. The global boom till 2007 witnessed a lot of investment by NRIs in India . The global recession, which also hit India majorly, saw some NRIs scout Indian cities for distressed assets sale. An officer of Punjab National Bank admitted that there were not many NRIs looking for home loan from them during PBD. “As economic slowdown has also badly hurt them, it is possible that when things started looking up again, they would start to buy properties here,” he says. Till recently, NRIs from the US, the UK, Canada and Gulf were the cynosure of realty sector. Among NRIs settled or working in these countries, Punjabis and Malayalis used to buy properties in a big way, every year, in all the major parts of the country. It is a well-known fact that Malayalis and Punjabis have migrated in hordes over the years. Some of them are also buying commercial space.


Samy Velu, a leader of the Malaysian Indian Congress and former minister in his adopted country, said that the purpose of PBD would be defeated if the government only looks at the dollars part of overseas Indians and fails to address their genuine woes and issues. He was referring to the speech of Prime Minister Manmohan Singh at the PBD in which he urged NRIs to invest in India.

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Florida Court Decision Could Impact Builders and Bank Foreclosure Processes

A ground-breaking South Florida court decision has paved the way to a legal solution for condominium and homeowners associations to address the under-reported but highly commonplace practice of banks stalling their foreclosures.

Banks may engage in this tactic in an effort to delay taking title to financially upside down units and avoiding payment of past due assessments and legal fees due to associations. The new legal approach puts an end to this practice and is poised to dramatically strengthen the financial health of communities throughout the state of Florida.

From the firm that innovated "blanket receiverships" last year, now Association Law Group (ALG) has created the "reverse foreclosure" procedure in cases where an association has already acquired title to the property by its own foreclosure, but the bank’s foreclosure action is still pending or stalled. Under ALG’s new reverse foreclosure procedure, the association intentionally admits, in response to the bank’s foreclosure lawsuit, that the bank is entitled to take title to the financially upside down unit immediately.

Under such procedure, the association knowingly waives its right of redemption and its right to a foreclosure sale, requests the court to grant a partial summary judgment against the association immediately, and further requests that the court direct the Clerk of Court to issue a certificate of title to the bank immediately, thereby making the bank the owner immediately and responsible for the association dues.

Attorney Ben Solomon of Association Law Group explains, "ALG’s reverse foreclosure procedure will finally help associations force banks to take title to financially upside down units much faster than ever before. This innovative new legal strategy holds banks accountable for paying their fair share of assessments and significantly reduces the amount of bad debt incurred by such associations." ALG’s new reverse foreclosure procedure cuts down on the bank’s opportunity to stall such foreclosure proceedings for an additional six months to a year or more (by intentionally delaying the setting of hearings, taking advantage of prolonged sale dates, etc.) because it forces the bank to take title to the upside down unit much quicker than usual because both parties agree they are immediately entitled to the property.
Stalling by the bank typically adds to the amount of bad debt write offs an association eventually incurs when the bank finally does foreclose because by statute the bank is only obligated to pay the lesser of 12 months of past due assessments or 1% of the original mortgage for an HOA or 6 months of assessments or 1% for condos. The balance of past due assessments is then typically written off as bad debt and becomes a common expense to be paid by the rest of the unit owners.


This landmark case, HSBC Bank USA, et al. vs. Keys Gate Community Association, Inc., A Florida Non Profit Corporation, et al., was decided on January 12th in the 11th Judicial Circuit of Miami-Dade County. ALG represented Keys Gate Community Association, Inc. (Keys Gate), a homeowners association in Miami-Dade County with over 3,000 homes.

In this precedential case, Keys Gate was awarded a partial final summary judgment of foreclosure against itself and in favor of HSBC Bank USA. As a part of that judgment, Keys Gate waived its right to public sale and requested a certificate of title be issued directly and immediately to the bank. Pursuant to the judgment, the Clerk of Court issued a certificate of title to HSBC the same day making the bank immediately liable for the payment of past due assessments and legal fees.


Based on the issuance of the certificate of title, the bank also was required to pay all current assessments as they become due. This new legal strategy saved Keys Gate a minimum of eight months or more of bad debt write offs because the association did not have to wait for the bank to get a foreclosure judgment, schedule a foreclosure sale, and sell the property at public auction. Importantly, this case sheds light on a little known banking practice that has been paralyzing homeowner and condominium associations across Florida -- namely that banks are significantly stalling their foreclosures to avoid paying the liabilities to the applicable association. This particular bank foreclosure case had been pending since 2007.


Specifically, in this case, Keys Gate filed and foreclosed its own claim of lien on the property and acquired title to the property through its own foreclosure sale back in April of 2007. The bank filed its foreclosure against the property in June of 2007 and through repeated stall tactics has still failed to complete the same for more than two and a half years. As a last resort, in November of 2009, ALG initiated its first reverse foreclosure procedure and moved the bank's foreclosure case forward by setting a hearing for summary judgment against its client Keys Gate. ALG then asked the court to issue a partial summary judgment in favor of the bank and to immediately grant the bank's request to take title to the unit as stated in its foreclosure complaint.
As part of such reverse foreclosure, Keys Gate waived its rights to the property and, as the current unit owner, waived its right to public sale. The motion was granted and the Clerk of Court issued a certificate of title the same day transferring ownership of the property to the bank. The certificate of title then triggered HSBC Bank's requirement to pay its share of past due assessments, legal fees, court costs, and all assessments going forward. The bank's claim as to the other defendants is still pending.


The practice of banks delaying in foreclosure proceedings is not uncommon but it has a severe detrimental impact upon associations. Under the current law, a bank is not liable for condominium or homeowners associations' assessments until it takes title. As such, once a foreclosure is filed by a bank, there is little incentive for it to complete such foreclosure and take title to the unit until it has a buyer for the property or is otherwise ready to take responsibility for the liabilities associated with the property. It is this critical step in the process where banks have delayed -- sometimes for years -- to avoid having to pay assessments.
Every month of delay equals another month of potential bad debt write off for an association. Until now, associations were left to fall further into debt and were powerless to encourage the banks to complete their foreclosures and collect back assessments. Some judges have tried to make banks liable for assessments if they did not aggressively pursue the foreclosure by granting a motion to compel, but that attempt to hold the banks accountable was recently ruled invalid by the Third District Court of Appeal.


ALG's innovative new legal strategy of reverse foreclosure has been enthusiastically endorsed by the Clerk of Court as another method to reduce their backlog of foreclosure sales. ALG has already been successful in implementing its "reverse foreclosure" procedure in both Miami-Dade and Broward counties and has plans to file dozens more in the upcoming months in multiple other counties.

Building Permits and Inspections

Building Permits and Inspections - Necessary For Your Protection
Probably the most intimidating part of building your own house is the permit process. Not only do the requirements vary from township to township, but at times the decisions made seem so subjective that we find ourselves seething in frustration. However, permits and inspections are a necessary step, and they are in place predominately for your protection.

Ask any earthquake victim in Iran. Because I am concerned here with new construction, I won't go into the permits required for renovation; that's another story. In a new development, the buyer usually doesn't have to think about permits; the builder takes care of all the details. With independent projects, you may end up engaging a contractor who hires all the sub- contractors and takes care of the permits.

This makes life infinitely easier for the buyer, but you'll pay for that convenience. In rural areas, because township officials are usually volunteers, they tend to work only one or two hours a week, and often after five o'clock. If you miss their time, you'll probably have to wait another week. This could run your builder ragged and cause unwelcome delays.


If you decide to get the permits yourself, the first thing you want to do is go to the township office and acquire their Code Requirements for Single Family Dwellings, and also their Building Permit Requirement Checklist (or whatever they call these documents).

The Code Requirements will cover everything from smoke detectors to egress windows, from stair requirements to insulation, from foundations to chimneys and anything in between. It wouldn't hurt to send a copy to your log home manufacturer, just in case. The Building Permit checklist, though more simply worded, will be the most important document to familiarize yourself with. If even one of these items are unchecked, you won't get that permit that day!


Once you start the process, you come to realize that the Construction Permit is the most important, the most sought-after, and the most critical objective in your immediate scope. Without it, you cannot even break ground. Since everything ties together, the township wants to make sure you have your "ducks in a row" before they "permit" you to start. There will usually be a one-year time limit to the permit or a six-month time limit if construction is stopped in the middle.

You should budget about $1500-$2000 for your average building permit, unless there unusual circumstances attached to your project (wetlands delineation, variances, etc.).


Here is what may be acquired to qualify for the building permit:

1. TAX CERTIFICATION: This document is to verify the ownership of the land and that payments are current.

2. TWO SETS OF SEALED BUILDING PLANS: What they want is an Architect's or Building Engineer's stamp on the plans that come from the home manufacturer. Do not assume that the plans will come pre-stamped. Not all manufacturers have the ability to apply a seal from every state. Included in the building plan will probably be a separate foundation plan, since most log homes do not provide a foundation as part of the building. If there is a separate foundation plan, it too will need to be stamped by a qualified engineer or architect.

3. SIGNED, SEALED ELECTRIC PERMIT APPLICATION: Don't expect the log home manufacturer to provide electrical drawings. Once you hire an electrician, you'll have to sit down with him and determine where you are putting your outlets, light switches and fixtures. Local code will determine how close together your outlets will go. Do yourself a favor and put in many more outlets than you think you will need; retrofitting could be unsightly. Also, plan on twice as many light fixtures than a standard home - wood sucks up light like a sponge. While you are at it, it helps to include your cable wires, phone wires and CAT5 in every room; even though you may not think you'll need it. Once you move into the house, you may change a room's usage from your original conception - we did, and regretted our shortsightedness.

4. SIGNED, SEALED PLUMBING PERMIT APPLICATION: This is another set of drawings that will not come from the home manufacturer. You and the plumber must figure out where the fixtures are going, and if you live in the country remember that the plumbing needs to hook into your septic. (This permit is separate from the septic design permit).

5. APPROVED COUNTY SEPTIC DESIGN: The septic design comes from the local civil engineer. The permit application comes from the township, but the septic approval came from the county. HVAC DIAGRAM: Showing where your ductwork is going.

6. DRIVEWAY PERMIT: In some cases, this comes from the Director of Public Works.
7. STATE WELL PERMIT and TOWNSHIP WELL PERMIT (if you are digging your own well): If there is a drought going on, they might put a hold on new well permits, which will put a hold on the whole project. So get it as quickly as possible.

8. PLOT PLAN AND ZONING APPROVAL: The Plot Plan will come from the local civil engineer. This is not the same as a survey, which will be required by the mortgage company. The plot plan shows the location of the house, driveway, well and septic as well as the perimeter of the building envelope.

9. WATER TABLE INVESTIGATION these are the big ones. You might have local wetland delineation issues, easements or setbacks to worry about. Once you get that Construction Permit, treat yourself to a celebratory dinner. You'll have earned it! The Construction Permit needs to be prominently displayed on the job site. You also need to keep one of those sealed sets of building plans on site at all times, just in case you get a surprise visit from an inspector. Hopefully by now you will have made friends with the township inspector, because he's going to have a big say in the ease or difficulty of your project.

10. ON REPORT: This will help you determine whether you can dig a basement, or do you need to raise the house up?


The inspections are all spelled out and will be required at each step in the process before you can move on. This could cause a delay of one to several days (not counting bad weather), so think ahead - but not too far ahead.

The first inspection will come pretty quick. When your excavator digs the hole for your foundation, the township may inspect the bottom of the footing trenches before placement of footings. If you are using a Superior Walls precast foundation system, there will be no footings so this inspection will be unnecessary.

However, the footings for your deck and porches will need to be inspected. There will be a foundation inspection before the backfill is shoveled in. The big inspection will be the framing inspection. This must be done before the insulation is added. Then, there will be an inspection for the plumbing, the electrical panel and wiring, the septic or sewer service, then insulation.

At the end of the project, there will be a final inspection before issuance of a Certificate of Occupancy; the inspector will look at the finishing work, the smoke detectors, fixtures, etc. There may be other inspections in between, depending on the township. Unless you are acting as your own general contractor, inspections should not concern you, except that if something fails the whole project grinds to a halt.

If you are the Homeowner Builder, you will probably be arranging the inspections yourself, and it helps to know what the township is looking for.

Benjamin Bratt Exits the Village

SELLER: Benjamin Bratt and Talisa Soto

LOCATION: New York City, NY

PRICE: $2,500,000

SIZE: 3 bedrooms, 2 bathrooms


YOUR MAMAS NOTES:

We read with great interest today on the always informative City File that actor Benjamin Bratt and his model/actress/stay at home mommy wife Talisa Soto sold their lofty apartment in the Village for $2,500,000.


Your Mama carries a warm spot in our cold heart for Mister Bratt. See kiddies, once upon a time, back when Your Mama was still hawking high priced home furnishings to scads of rich and famous people, we did a bit o' bizness with Benjamin Bratt. Besides being much taller and far more dee-lishusly juicy in real life than on the boob-toob, he was just so incredibly nice and refreshingly free of any of those annoyingly entitled and haughty airs famous people sometimes put on when they're dealing with the help. And, make no mistake butter beans, we were definitely the help, nothing but a shop sitter in a good pair of shooz charging large sums of money to a parade of black Amex cards. Yes, we may have owned the shop, but we were still just a lowly shop sitter to most of the famous folks we dealt with.


Anyhoo, the very bizzy actor recently finished up a long, long, long run on Law & Order. Since then he's made just one appearance on an episode of Modern Family–one of the better new sitcoms as far as Your Mama and our friend Chow-lee are concerned–but previous to and concurrently with his run on Law & Order, Mister Bratt appeared in tee-vee programs such as The Cleaner and E-Ring, and also worked his beautiful light brown skinned stuff in films like Blood in Blood Out, Miss Congeniality, Traffic and Piñero. We can't honestly say we've seen any of those programs or films besides Traffic, but we adore Mister Bratt anyway.


Property records show that Mister Bratt and Miz Soto scooped up their 7th floor apartment in September of 2003. Unfortunately Your Mama doesn't have any idea what they paid for the 3 bedroom and 2 pooper place, which carries monthly maintenance costs of $2,443.


The airy and open plan main living space has hardwood floors, a 13-foot ceiling and tall and wide windows on two walls. What it does not have, as evidenced by the through window air-conditioner, is a central heat and air system. Your Mama would have gladly suffered through such an inconvenience during our many years in Noo York City in exchange for a direct and dramatic view of the Empire State Building and a 900 square foot living/dining area that is, quite frankly, more than twice the size of most 1-bedroom apartments in the Village.


Technically, as per the listing, there are three bedrooms, but one of them was used by Mister Bratt and Miz Soto as an office/library. Besides, given that there's not actually a closet in there, it's not really, legally, a bedroom anyway. None the less, we love that narrow space with the shelves that go to the ceiling and the wee reading room tucked back into a quite corner. The one switch up we'd make in here is to haul in and hang that capiz shell chandelier in the living room, which is dwarfed by the voluminous space into the library, and where it would have an lovely over-sized appeal. Then we'd take that lovely little green glass pendant and put it in the reading nook along with a couple of very cozy chairs and little else. Your Mama can think of few luxuries we'd love more than to have a wee room with some natural light whose only purpose was to provide a comfortable and serene spot to read.


The kitchen, oddly shaped and with a column right in the damn middle, is separated from the main living space by a mahogany breakfast bar–at least we think it's mahogany–and the white cabinets with a raised panel give it a slight country house thing going on. We don't care for that country house in the city look and we're quite sure we'd smack right into that pole over and over and over again, particularly after a we get a few cocktails in us. And when don't we have a few cocktails in us, you know what Your Mama is saying?


The two bedrooms that function like bedrooms are tucked back up into the back of the apartment and the master bedroom includes a nice big dressing room and a pooper with two gigantic windows, an exhibitionists dream.


Mister Bratt hails from good ol' San Francisco where until 2007 he and the Missus owned a residence on Page Street in the Haight Ashbury neighborhood. However, that's been sold and we read somewhere but can not confirm that Missus Bratt–and we presume Mister Bratt and their two shorties–lives somewhere in hills above Los Angeles in a house without swimming pool. Wherever they live, it's not on West 13th Street in New York City.

It’s likely closing time for these chains in 2010

Tight-fisted consumers, plunging sales and shuttered stores. That was pretty much the retail story during the bulk of 2008 and 2009, when a drab market brought the headaches of overcapacity, liquidity problems (in some cases) and a round of consolidation.


Will 2010 be better? To a degree. A lot of excess inventory has been drawn down, aligning supply with demand. Analysts hold up Starbucks, Foot Locker and Jones Apparel as healthy companies that are getting healthier because they've been smart enough to rid themselves of excess by shutting down locations.


Most economic forecasters are anticipating a modest recovery this year. That, combined with consumers' voluntary rationing during the last two years, could spike demand for more goods. Industry economic consultant Retail Forward, part of Kantar Retail, forecasts 1.5 percent to 2 percent sales growth during the first half of 2010, with a pickup to 3 percent or more during the second half. That's promising but still below pre-recession levels.

Revival in real estate could come as a boon for float glass industry

When major sectors in the economy do well, it augurs well for several ancillary industries that depend on them. A case in point is the Rs
5,500-crore Indian glass industry, which has shown good growth in the past few quarters driven by an uptick in demand from user-industries such as infrastructure, construction, automobiles, food processing, beverages, pharmaceuticals and cosmetics, among others. The past four quarters have seen a steady growth in the fortunes of glass companies —with some of them swinging to profit.


For the industry, FY09 was not particularly favourable. During the first half, when demand was relatively buoyant, companies faced soaring prices of key inputs. And during the second half, when commodity prices stabilised, demand stagnated due to the economic slowdown.


In FY2010, with economy coming back on track and input costs remaining benign, the industry is again witnessing a revival as reflected by the improving financials.


Robust growth in automobiles, infrastructure, liquor & other beverages, boom in building and construction have enabled the companies in the glass sector to post healthy results over the past four trailing quarters.


Hindusthan National Glass, the market leader in packaging glass, has reported 4% Y-o-Y increase in its revenues and flat growth in profit. With its prime customers in food processing, liquor and pharmaceutical industry registering growth in volumes, the company is already seeing signs of recovery in demand. It’s expecting to close the fiscal with a 75% increase in profit and more than 20% increase in revenues.

Asahi India Glass, a major supplier of float and sheet glass to the auto industry, has posted a 8% growth in its consolidated net sales over the past four trailing quarters and significantly reduced its loss to Rs 5.5 crore against Rs 58.3 crore a year ago. With auto sales growing at a healthy pace, the prospects for this company also are bright.


Piramal Glass, an export-oriented specialty glass player, has started showing signs of recovery and swung to reporting profits since the past two quarters. Catering to the packaging needs of the fast-growing cosmetics and perfumery sector, the company is steadily gaining market share in the overseas market on account of being a low-cost manufacturer. With crude oil prices remaining stable over the past couple of quarters, the industry has seen an expansion in the operating profit margins.


With stability on the cost side and good outlook on the demand side, the packaging glass segment has good prospects. The float glass segment, with its primary use in the real estate industry, is seeing good demand pick-up from the residential real estate segment. With commercial real estate sector showing signs of revival, the prospects of float glass industry are likely to improve over the next few quarters.

East Hampton Launches CPF Website To Provide Transparency

East Hampton - East Hampton's Department of Land Acquisition, the division that manages the Community Preservation Fund (CPF), will be launching a new website on Friday in an attempt to provide increased transparency and accountability to one of the most controversial town offices.


The site, which will be accessible through the town's website (www.town.east-hampton.ny.us) by choosing the "Departments" tab and finding the Department of Land Acquisition, seeks to provide East Hampton's resident will access to the department's budget, the meeting schedule and minutes of the CPF Committee, which rates potential properties for acquisition and sets priorities for stewardship and management, graphs of the monthly revenues that fuel the fund through a two percent tax on real estate transactions and the state and town legislation that created the fund, as well as information on the acquisition process.


Visitors to the site can also see photographs of properties purchased through the CPF (organized by hamlet) and the restoration efforts that have gone into maintaining the town's open spaces.


The website is in its first iteration, according to Department Director Scott Wilson, and should be set to go as soon as the Town Board signs off on it. "The key word is 'Transparency,'" CPF Committee chairman Tim Brenneman asserted, voicing his approval of the site and its goals. Both the committee and the department are hopeful that this first step will help bridge the gap between bureaucracy and the people.

Pending Home Sales Dropped This Month

A drop is observed in the number of contract signed for pending home sales in November over the preceding month, though the sales are still higher from what was recorded in the same month last year.

This is the finding of a report made public by National Association of Realtors (NAR).


According to the report, which is based on a Pending Home Sales Index maintained by NAR, pending home sales recorded a drop of 16 percent from 114.

3 in October to 96 in November this year. The sale percentage of November when compared to the same period of the previous year is found to be higher by about 15.5 percent.

The officials at NAR are optimistic about the gains in sales activity again in early spring as a response by the first time home buyers to the recently expanded tax credt.

Green Buildings: Fewer Sick Days, Higher Rents

Environmentally-friendly construction practices have gotten a lot of hype over the past few years but do they really pay off as an investment? A new study found that tenants in green buildings experience increased productivity and fewer sick days. The research also found that that green buildings have lower vacancy rates and higher rents than non-green counterparts.


The study, conducted by the University of San Diego and commercial real estate broker CB Richard Ellis Group, found that tenants in green buildings such as the Behnisch Architekten-designed Unilever offices in Hamburg above are more productive based on two measures: the average number of tenant sick days and a productivity change. Respondents reported an average of 2.88 fewer sick days in their current green office versus their previous non-green office. About 55% of respondents indicated that employee productivity had improved.


Based on the average tenant salary, an office space of 250 square feet per worker and 250 workdays a year, the decrease in sick days translated into a net impact of nearly $5.00 per square foot per year. The increase in productivity translated into a net impact of about $20 per square foot. The study also showed that green buildings have 3.5% lower vacancy rates and 13% higher rental rates than the market.


The work was based on surveys of 154 buildings under CBRE's management, totaling more than 51.6 million square feet and housing 3,000 tenants in ten markets across the U.S. The study defined a green building as those with LEED certification at any level or those that bear the EPA ENERGY STAR ® label.


Another report out in the past week concluded that constructing new green buildings or retrofitting existing structures with energy efficient air conditioning, solar panels and the like will support 7.9 million U.S. jobs and pump $554 billion into the American economy over the next four years. The study, by the U.S. Green Building Council and Booz Allen Hamilton, determined that green construction spending currently supports more than 2 million American jobs and generates more than $100 billion in gross domestic product and wages.


The economic impact of the total green construction market from 2000 to 2008, the study found, was $178 billion. It created or saved 2.4 million jobs and generated $123 billion in wages.


The U.S. Green Building Council certifies LEED buildings and obviously has an interest in the movement, but Rick Fedrizzi, chief exec of the group said something remarkably down to earth in releasing the report: “Our goal is for the phrase ‘green building’ to become obsolete, by making all building and retrofits green – and transforming every job in our industry into a green job.”


Can't argue with that.

Home Inventories Expected to Rise Due to Bank Foreclosures

Home foreclosures are expected to cause the housing inventory to increase in 2010 as a rising number of homeowners are defaulting on their home loans.


In 2009, a record three million homes went into bank foreclosure. Analysts predict 3.1 million home foreclosures in 2010. The federal home loan-modification program, which is part of the stimulus package, has not improved home foreclosure rates.


Many financial institutions did not have the resources to modify defaulted home loans. Additionally, the program doesn't work for many people, as 61 percent of modified home loans in 2008 still went into bank foreclosure.

Why Will Bank Foreclosures Continue to Rise?

The projected number of bank foreclosures will continue to rise for many reasons, including:


* continued high unemployment.
* the expiration of stimulus package programs that have helped the housing market.
* the large number of adjustable rate home loans that are due to be reset to higher interest rates.
* the postponement of repossessions in 2009 due to pressure from the federal government to modify home loans.
* very low home prices in the real estate market, which cause many homeowners to owe more on their home loans than their homes are worth.


Will the Stimulus Package Programs for the Housing Market Be Extended?
The real estate market has shown some positive signs in late 2009 due to low home sale prices, low mortgage rates, and a home tax credit program that has been extended and expanded.


However, many of the housing portions of the economic stimulus package are scheduled to end in the spring, which is a crucial time for home sales. For example, the home tax credits for first-time home buyers and repeat home buyers expires at the end of April unless they are extended again.


In addition, the Federal Reserve stimulus program that is buying back mortgage-backed securities and agency debt is scheduled to end on March 31. However, there are indications that the program may also be extended, depending on the economy.

Mortgage Rates Start the New Year Slightly Lower Than They Ended the Old Year

McLean, VA today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.09 percent with an average 0.7 point for the week ending January 7, 2009, down from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 5.01 percent.

The 15-year FRM this week averaged 4.50 percent with an average 0.7 point, down from last week when it averaged 4.54 percent. A year ago at this time, the 15-year FRM averaged 4.62 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.44 percent this week, with an average 0.6 point, unchanged from last week when it averaged 4.44 percent. A year ago, the 5-year ARM averaged 5.49 percent.

The 1-year Treasury-indexed ARM averaged 4.31 percent this week with an average 0.6 point, down from last week when it averaged 4.33 percent. At this time last year, the 1-year ARM averaged 4.95 percent.


(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) "Mortgage rates eased slightly this week after rising consecutively through December," said Frank Nothaft, Freddie Mac vice president and chief economist. "Current interest rates for fixed-rate mortgages are just about at their annual average for 2009, while ARM rates are considerably below their averages for last year."


"As the economy strengthens further and the Federal Reserve (Fed) decides to raise its overnight target rate, ARM rates will follow suit because they are typically tied to shorter-term interest rates. However, the federal funds futures market does not anticipate any Fed action until the second half of 2010."

Megan Fox Gets A New House

BUYER: Megan Fox

LOCATION: Los Angeles, CA

PRICE: $2,942,500

SIZE: 5,200 square feet, 4 bedrooms, 5 bathrooms

YOUR MAMAS NOTES: In late November, sultry and sexual Transformers ack-tress Megan Fox went on the boob-toob and told the world that she bought her on-again/off-again boy-beau Brian Austin Green a red 1966 Ford Mustang Fastback. A few weeks later, according to Freddie Feedsusinformation who knows all things real estate in Los Feliz, Miss Fox also bought herself a new home in the Los Feliz area of Los Angeles for, according to property records, $2,942,500.


Listen children, Your Mama has never seen a Transformers movie nor do we intend to see one. Therefore, what little we know about Miss Fox is, for better or worse, based on what we've read in the gossip glossies and on the interweb. Our completely meaningless assessment of Miss Fox is that beehawtcha has a tendency towards verbal diarrhea, frequently whining to the press about everything including Transformers director Michael Bay, her absent boyfriend, the Hollywood grind, and how men are "scared of confident vaginas." Oh, lo-ward have mercy on Miss Fox. Your Mama will slap the sexy right off her 23-year old damn face if she starts complaining about the fat paychecks she pulls in from her crappy acting jobs that allow her to spend millions on a fancy new house.


Listen up her little Miss Fox because Your Mama is going to give you some free and sage advice about how to remain viable in Tinseltown when you've yet to reveal any real acting chops: Bitch and bellyache all you want to your friends and family about how terrible it is it be pretty and how tiresome it it to be compared to Angelina Jolie–who, Miss Fox, is actually an Oscar winning actress, something you'd be so lucky to be–but we suggest you put a sensor in your large-lipped mouth when talking to the press because listening to rich and privileged 20-something year old celebrities complain about their success tends to grate on fans' nerves like nails on a chalkboard and, at the rate you're going, you're going to blather your way to the graveyard of forgotten starlets.


Anyhoo, property records for the mini-manse Your Mama is told Miss Fox bought indicates the 1936 Mediterranean measures 4,052 square feet and includes 4 bedrooms and 5 poopers. Listing information for the recently re-worked residence, however, states the there are 5,200 square feet with 5 bedrooms and 4 poopers including a master suite with walk-in closet, private terrace and a spa-like bathroom with lots of Carrara marble, a free standing soaking tub and a terlit closet that, we are happy to report, has a window.


The house also includes a formal living room with fireplace and several French doors that open to a tiled terrace that runs along the back of the house, a formal dining room, family room, media/pool table room, and a newly done dee-luxe kitchen with wood floors, snow white flat-fronted cabinetry, a Hyundai-sized Viking range, Carrara marble counter tops, and a huge window above the sink with a view of downtown L.A. that is so lovely that it could probably even entice the Dr. Cooter–who avoids dishpan hands with a fervor akin to a middle aged first wife avoiding a much younger plastic boobied second wife–to do some after dinner dishes.


The walled and gated home, according to listing information, also has custom hardwood floors, dee-ziner poopers, restored vintage details, whole-house audio, panoramic views that stretch from downtown to the ocean, a pill-shaped swimming pool with several terraces and lawn areas surrounding it, and–natch–state-of-the-art security which means any of you moe-rons who have the dumb-ass idea to knock on Miss Fox's new door will be greeted with some serious and deserved unpleasantness.


It's unclear if Miss Fox's former fiancée and current man-friend Brian Austin Green, he of Beverly Hills 90210 fame, will be moving his underpants into her new digs but, given that he currently has his 1920s Tudor style house in the Hollywood Hills on the market at $2,395,000, there's a pretty good chance he'll soon need a place to park his Ford Mustang.

Real estate market expected to remain strong in first half of 2010

A new Royal LePage survey predicts Canada's residential real estate market will remain unusually strong through the first half of 2010.

The real estate firm says as confidence in the economic recovery grows, average prices are expected to continue to increase.

Royal LePage executive Phil Soper says the real estate market enters 2010 with "considerable momentum from an unusually strong finish to the previous year."
He says the stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity to new highs.

Royal LePage says house prices appreciated in late 2009, with fourth quarter price averages higher than fourth quarter 2008.

The average price of detached bungalows rose to $315,055 (up 6 per cent), the price of standard two-storey homes rose to $353,026 (up 5.2 per cent), and the price of a standard condominium rose to $205,756 (up 6.4 per cent).

Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C. Vancouver in particular experienced a robust quarter, with home prices rising across all housing types surveyed.

"No other sector of the economy has been as highly affected by economic stimulus as housing," said Soper.

"As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property."

Maharashtra State Govt Increases Real Estate Value by 10-20%

Property in Maharashtra just got more expensive. The state government has increased the market value of real estate by 10-20 per cent in its Ready Reckoner 2010. The ready reckoner is a guide for the market price of residential and commercial properties, based on which stamp duty and registration fee for their sale and purchase are calculated. Under the revised rates, a land owner would have to pay more stamp duty because his land got more expensive; the developer would raise the sale price of his finished property since his land acquisition cost got higher; and a retail buyer would have to cough up more for property, stamp duty and registration fee.

This is likely to have its rippling effect on redevelopment of old, dilapidated buildings in Mumbai and surrounding Tier II cities, too. With the upward revision of rates, properties being developed on textile mill land would also see a sharp rise as the ready reckoner raised their value on an average by 13 per cent. “The state government expects to mobilise Rs 5,075 crore through stamp duty and registration fee by the end of 2009-10,” a senior state government official, who did not want to be quoted, said, justifying the rate revision. A large number of builders and developers representing the Confederation of Real Estate Developers’ Association (Credai) and the Maharashtra Chamber of Housing Industry (MCHI) expressed their dissatisfaction over the decision.

“The increased rates in the ready reckoner will be applicable for land, residential and commercial properties and various premiums charged on additional floor space index (FSI), staircase, etc. This will adversely affect redevelopment of old buildings, chawls and rented houses. There are over 19,000 old and dilapidated buildings in Mumbai alone, in addition to the fresh properties being developed. Same is the story for other Tier II cities,” said a Credai official, requesting not to be quoted. The revised rates would be applicable in Nagpur, Pune, Aurangabad, Amravati and Nanded as well. The Credai official added that with the revised rates, the land that cost Rs 1 crore (Rs 10 million) would now be valued at Rs 1.15 crore (Rs 11.5 million). A flat of Rs 20 lakh would cost Rs 23 lakh, not to mention the extra Rs 15,000 that one would haave to shell out for stamp duty and other charges.

Ranjan Bandalkar, vice-president, MCHI, said residential property buyers would have to pay more transaction cost. “There is a possibility that prices of houses may increase 10-5 per cent in Mumbai and rest of Maharashtra. The government will have to reconsider its decision.” Rajani S Ajmera, former president of MCHI, said the government should not have increased the ready reckoner rates when the real estate sector was just looking up. “We have in fact demanded that stamp duty should be brought down to 3 per cent from 5 per cent. The rationalisation of these rates is necessary.” Credai Vice-President Dharmesh Jain, too, said the government needed to reconsider the decision as the real estate sector was yet to recover from the global economic meltdown.

Credai members also warned that there could be less takers for commercial properties. “Development of commercial properties has already been affected due to the global meltdown and it has yet to see the revival.” Otherwise an annual exercise, the ready reckoner was not revised after January 2008 due the economic downturn.

Invest In Foreign Real Estate Using Your Retirement Funds

U.S. stock markets have rallied recently. If you’ve recouped some of your losses, now could be a good time to consider diversifying a portion of your IRA funds out of U.S. markets by putting them into a home—maybe a winter retreat—overseas.


You can think of it as an investment...or as an insurance policy. There’s no saying what the U.S. markets will do over the next few years and diversifying internationally this way can help limit your U.S. exposure.


The good news is: You can find the property of your dreams anywhere in the world, purchase all or part of it with your retirement assets (gaining the tax advantages that delivers), and eventually take ownership of it—completely legally.


The IRS allows a great deal of flexibility when it comes to investing the assets of your retirement account. As a U.S. citizen, you can use your IRA or other self-directed retirement account to buy international real estate.


The rules governing the ownership of real estate are simple. You can own virtually any kind of real estate you could name in your IRA or other retirement account, including: raw land, condos, office buildings, single-family homes, multi-family homes, apartments, and improved land.


You can own the real estate fully, you can purchase an option on the real estate, or you can buy outright using a land trust, L.L.C., or similar entity.


All of these options are allowed for the kind of investment I’m describing. You can pay for the property in full using retirement assets—or you can finance it.

Commercial Real Estate At Lowest Level Since 2002

The commercial real estate market has been in free fall the past couple of years. We think that residential real estate took a hit, but the commercial markets are down 44% since the peak in October 2007, a scant 26 months ago.


On a good note, declines are expected to slow down in the coming months. But the caveat is that tight lending markets are going to continue to impact the commercial real estate market. Since commercial debt is cyclical commercial borrowers need to refinance much more often than residential property owners.

2010 is shaping up to be a rough year for commercial real estate property owners.

He Moody’s/REAL Commercial Property Price Indices fell 1.5 percent in October from September to the lowest since August 2002. Prices were down 36 percent from a year earlier and are 44 percent below the peak in October 2007, Moody’s Investors Service Inc. said in a statement.


Values are dropping as U.S. unemployment climbs and consumers cut spending. Office vacancies may approach 20 percent next year as employers hold off hiring, commercial property brokers Jones Lang LaSalle Inc. and Grubb & Ellis Co. said last month. via Bloomberg.