This week the Cororan Group released their current sales report. Their figures report an overall decline in all contracted sales of 35% since February 2008 -- it does give one "pause". Also during the last six months, only about 3% of all deals were "at" or above the asking price. In other words, deals are being done with negotiation and the asking price is rarely the contract of sale price anymore. Let those prices simply be a guideline.
This is a time where astute research will pay off for the buyer. Be aware of "like kind" properties in comparing what is being sold because there is a difference between a cooperative and a condominium sale to state the obvious. Ask your broker to present you with the hard facts and not suppositions. All brokers have access to the same information and it is all to work for the public good.
Personally I am not in support of the $8,000 tax rebate for first time buyers. I believe there has been more than enough incentive to get people out of their rental "digs" and into their first homes. I believe we need to focus on helping middle income earners who are small business owners or independent contractors who are all fighting for their financial lives right now. I'd love to hear what you have to say about it.
Thank you.
Monday, October 26, 2009
Monday, August 31, 2009
Rents in Manhattan are falling as unemployment climbs
NYC Apartment Rents Fall as Tenants Gain Leverage (Update3)
By Brian Louis
Aug. 25 (Bloomberg) -- Manhattan apartment rents fell as much as 10 percent in August from a year ago as tenants gained negotiating power in the recession and forced landlords to offer concessions.
In buildings attended by doormen, rents on one-bedroom apartments dropped 10 percent from a year earlier to an average of $3,274 a month, according to a report by the Real Estate Group of New York. Studio prices fell 7 percent at those properties to $2,329 and two-bedrooms declined almost 6.9 percent to $5,161. Soho and TriBeCa were the most expensive neighborhoods.
Rents in Manhattan are falling as unemployment climbs. The number of job seekers rose to 402,200 in July, the most since 1992, New York City’s Comptroller William Thompson said yesterday. Landlords are offering incentives such as free rent and paying brokerage fees to lure tenants, said Daniel Baum, chief executive officer of the Real Estate Group.
“The concessions out there right now are pretty aggressive,” he said.
The city’s unemployment rate climbed to a 12-year high of 9.6 percent in July even as the national rate ticked down to 9.4 percent. The U.S. economy has lost 6.7 million jobs since the recession began in December 2007, making it the biggest employment slump in the last eight decades. Economists surveyed by Bloomberg predict the unemployment rate will reach 10 percent by early next year.
Rising U.S. Vacancies
That translates into less pricing power for landlords. U.S. apartment vacancies jumped to 7.5 percent in the second quarter, the highest level in 22 years, according to New York-based research firm Reis Inc. Asking rents dropped 0.7 percent from a year earlier to an average of $1,040 a month.
Rising vacancies and falling rents sent shares of real estate investment trusts that own apartments lower in the last year. The 13-member Bloomberg index of apartment landlords fell 36 percent in the 12 months through yesterday.
The Manhattan survey released today is based on data from more than 10,000 available apartment listings, according to the Real Estate Group.
In Manhattan’s non-doorman buildings, the average rent for studio apartments fell 8 percent to $1,931. One-bedrooms dropped 5.9 percent to $2,606 and two-bedrooms fell 8.2 percent to an average of $3,527.
On the Upper West Side, the average rent for a one-bedroom apartment in a doorman building was $3,236. In Greenwich Village, a similar apartment averaged $3,654.
Across Central Park on the Upper East Side, the average rent for a one-bedroom apartment in a doorman building is $3,276. In Gramercy Park, the price averages $3,656.
The least expensive average rents were in Harlem, where the monthly price ranged from $1,274 for a studio to $2,105 for a two-bedroom unit in a building without doormen.
To contact the reporter on this story: Brian Louis in Chicago at blouis1@bloomberg.net. Last Updated: August 25, 2009 14:09 EDT
By Brian Louis
Aug. 25 (Bloomberg) -- Manhattan apartment rents fell as much as 10 percent in August from a year ago as tenants gained negotiating power in the recession and forced landlords to offer concessions.
In buildings attended by doormen, rents on one-bedroom apartments dropped 10 percent from a year earlier to an average of $3,274 a month, according to a report by the Real Estate Group of New York. Studio prices fell 7 percent at those properties to $2,329 and two-bedrooms declined almost 6.9 percent to $5,161. Soho and TriBeCa were the most expensive neighborhoods.
Rents in Manhattan are falling as unemployment climbs. The number of job seekers rose to 402,200 in July, the most since 1992, New York City’s Comptroller William Thompson said yesterday. Landlords are offering incentives such as free rent and paying brokerage fees to lure tenants, said Daniel Baum, chief executive officer of the Real Estate Group.
“The concessions out there right now are pretty aggressive,” he said.
The city’s unemployment rate climbed to a 12-year high of 9.6 percent in July even as the national rate ticked down to 9.4 percent. The U.S. economy has lost 6.7 million jobs since the recession began in December 2007, making it the biggest employment slump in the last eight decades. Economists surveyed by Bloomberg predict the unemployment rate will reach 10 percent by early next year.
Rising U.S. Vacancies
That translates into less pricing power for landlords. U.S. apartment vacancies jumped to 7.5 percent in the second quarter, the highest level in 22 years, according to New York-based research firm Reis Inc. Asking rents dropped 0.7 percent from a year earlier to an average of $1,040 a month.
Rising vacancies and falling rents sent shares of real estate investment trusts that own apartments lower in the last year. The 13-member Bloomberg index of apartment landlords fell 36 percent in the 12 months through yesterday.
The Manhattan survey released today is based on data from more than 10,000 available apartment listings, according to the Real Estate Group.
In Manhattan’s non-doorman buildings, the average rent for studio apartments fell 8 percent to $1,931. One-bedrooms dropped 5.9 percent to $2,606 and two-bedrooms fell 8.2 percent to an average of $3,527.
On the Upper West Side, the average rent for a one-bedroom apartment in a doorman building was $3,236. In Greenwich Village, a similar apartment averaged $3,654.
Across Central Park on the Upper East Side, the average rent for a one-bedroom apartment in a doorman building is $3,276. In Gramercy Park, the price averages $3,656.
The least expensive average rents were in Harlem, where the monthly price ranged from $1,274 for a studio to $2,105 for a two-bedroom unit in a building without doormen.
To contact the reporter on this story: Brian Louis in Chicago at blouis1@bloomberg.net. Last Updated: August 25, 2009 14:09 EDT
New Consumer Protections for Credit Cards and Mortgages: How They Can Help Borrowers
With all the discussion of Health Care Reform, much of what has occurred with other legislation has gotten a bit lost in the news. I believe the credit card reform bill is one of them and people should be informed to the rights that have been reinstated to them regarding notice; and also there is an important segment related to home mortgages and disclosures (see more by scrolling below).
The FDIC's press release today, lists many of the key issues - and since they have done better than what I could only hope to summarize, I'm reprinting here in its entirety their release for your convenience and information.
New Consumer Protections for Credit Cards and Mortgages: How They Can Help Borrowers Avoid Surprises Other Topics in the Latest FDIC Consumer News Include Making the Most of Bank Rewards Programs and New Resources Explaining Deposit Insurance Coverage
FOR IMMEDIATE RELEASE August 31, 2009
Media Contact: Jay Rosenstein (202) 898-7303 jrosenstein@fdic.gov
New federal consumer protections for credit cards and mortgages -- including prohibitions against abusive lending practices and requirements for clearer, more timely disclosures -- will help people avoid surprises. The Summer 2009 issue of FDIC Consumer News from the Federal Deposit Insurance Corporation features key changes in the rules and what they mean for the public. The protections for credit cards are the result of a new law passed in May that is intended to help shield consumers from abusive fees, penalties, interest rate increases and other unwarranted changes in account terms. Most of the provisions start next year, but some took effect August 20, 2009, including a requirement that card issuers must generally provide a 45-day advance notice of a rate increase or other significant changes in account terms, up from 15 days.
The expanded notice period should give consumers more time to react to rate increases or other adverse account changes.
As for mortgages, the new rules feature prohibitions by the Federal Reserve Board against a variety of unfair or deceptive lending practices involving loans made on or after October 1, 2009. Some of the Fed's rules apply to all home mortgages except for home equity lines of credit, and they include prohibitions against inaccurate appraisals (to prevent a consumer from overpaying for a home or borrowing too much) and the unfair handling of loan payments (to avoid unnecessary fees).
Other parts of the Fed's rules protect subprime borrowers obtaining high-cost mortgages. More broadly, there are new requirements from the Fed and the U.S. Department of Housing and Urban Development for early disclosures of mortgage terms and costs.
Also in this issue of the FDIC's quarterly newsletter for consumers are tips on making the most of bank rewards programs, such as credit cards that enable users to gradually accumulate cash rebates or "points" good for free travel or merchandise, and checking accounts that offer cash or other prizes for frequently using a debit card. The publication says that these programs can be great deals for consumers, but the key is to be on guard against potential pitfalls that include allowing the rewards to overshadow the more important features of an account when comparison shopping, and overspending (in pursuit of the free benefits) that can result in interest charges and unmanageable debt.
The newsletter also notes the availability of a new FDIC brochure and video to help consumers understand their deposit insurance coverage, including how to have far more than $250,000 protected at the same bank. The latest FDIC Consumer News can be read or printed at www.fdic.gov/consumers/consumer/news/cnsum09. To order up to two free paper copies, consumers can use the online form on that same Web page or call the Federal Citizen Information Center toll-free at 1-888-8-PUEBLO (1-888-878-3256) weekdays from 8:00 a.m. to 8:00 p.m. Eastern Time and ask for Department D96.
The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and information about financial matters, free of charge. To find current and past issues, including special editions, visit www.fdic.gov/consumernews or request paper copies by contacting the FDIC's Public Information Center toll-free at 1-877-275-3342, by e-mail to publicinfo@fdic.gov, or by writing to the FDIC Public Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226. There are two ways to subscribe to the quarterly FDIC Consumer News. To receive an e-mail about each new issue with links to stories, go to www.fdic.gov/about/subscriptions/index.html.
To receive the newsletter in the mail, free of charge, contact the Public Information Center as listed above. The FDIC encourages financial institutions, government agencies, consumer organizations, educators, the media and anyone else to help make the tips and information in FDIC Consumer News widely available. The publication may be reprinted in whole or in part without advance permission. Organizations also may link to or mention the FDIC Web site.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,195 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.
The FDIC receives no federal tax dollars -- insured financial institutions fund its operations. FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-158-2009
The FDIC's press release today, lists many of the key issues - and since they have done better than what I could only hope to summarize, I'm reprinting here in its entirety their release for your convenience and information.
New Consumer Protections for Credit Cards and Mortgages: How They Can Help Borrowers Avoid Surprises Other Topics in the Latest FDIC Consumer News Include Making the Most of Bank Rewards Programs and New Resources Explaining Deposit Insurance Coverage
FOR IMMEDIATE RELEASE August 31, 2009
Media Contact: Jay Rosenstein (202) 898-7303 jrosenstein@fdic.gov
New federal consumer protections for credit cards and mortgages -- including prohibitions against abusive lending practices and requirements for clearer, more timely disclosures -- will help people avoid surprises. The Summer 2009 issue of FDIC Consumer News from the Federal Deposit Insurance Corporation features key changes in the rules and what they mean for the public. The protections for credit cards are the result of a new law passed in May that is intended to help shield consumers from abusive fees, penalties, interest rate increases and other unwarranted changes in account terms. Most of the provisions start next year, but some took effect August 20, 2009, including a requirement that card issuers must generally provide a 45-day advance notice of a rate increase or other significant changes in account terms, up from 15 days.
The expanded notice period should give consumers more time to react to rate increases or other adverse account changes.
As for mortgages, the new rules feature prohibitions by the Federal Reserve Board against a variety of unfair or deceptive lending practices involving loans made on or after October 1, 2009. Some of the Fed's rules apply to all home mortgages except for home equity lines of credit, and they include prohibitions against inaccurate appraisals (to prevent a consumer from overpaying for a home or borrowing too much) and the unfair handling of loan payments (to avoid unnecessary fees).
Other parts of the Fed's rules protect subprime borrowers obtaining high-cost mortgages. More broadly, there are new requirements from the Fed and the U.S. Department of Housing and Urban Development for early disclosures of mortgage terms and costs.
Also in this issue of the FDIC's quarterly newsletter for consumers are tips on making the most of bank rewards programs, such as credit cards that enable users to gradually accumulate cash rebates or "points" good for free travel or merchandise, and checking accounts that offer cash or other prizes for frequently using a debit card. The publication says that these programs can be great deals for consumers, but the key is to be on guard against potential pitfalls that include allowing the rewards to overshadow the more important features of an account when comparison shopping, and overspending (in pursuit of the free benefits) that can result in interest charges and unmanageable debt.
The newsletter also notes the availability of a new FDIC brochure and video to help consumers understand their deposit insurance coverage, including how to have far more than $250,000 protected at the same bank. The latest FDIC Consumer News can be read or printed at www.fdic.gov/consumers/consumer/news/cnsum09. To order up to two free paper copies, consumers can use the online form on that same Web page or call the Federal Citizen Information Center toll-free at 1-888-8-PUEBLO (1-888-878-3256) weekdays from 8:00 a.m. to 8:00 p.m. Eastern Time and ask for Department D96.
The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and information about financial matters, free of charge. To find current and past issues, including special editions, visit www.fdic.gov/consumernews or request paper copies by contacting the FDIC's Public Information Center toll-free at 1-877-275-3342, by e-mail to publicinfo@fdic.gov, or by writing to the FDIC Public Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226. There are two ways to subscribe to the quarterly FDIC Consumer News. To receive an e-mail about each new issue with links to stories, go to www.fdic.gov/about/subscriptions/index.html.
To receive the newsletter in the mail, free of charge, contact the Public Information Center as listed above. The FDIC encourages financial institutions, government agencies, consumer organizations, educators, the media and anyone else to help make the tips and information in FDIC Consumer News widely available. The publication may be reprinted in whole or in part without advance permission. Organizations also may link to or mention the FDIC Web site.
# # #
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,195 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.
The FDIC receives no federal tax dollars -- insured financial institutions fund its operations. FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-158-2009
Thursday, July 23, 2009
Can I prevent a foreclosure on my home?
The best defense in a foreclosure is to prevent it. Whatever the reason – be it lack of employment, medical bills - thousands of people are discovering that they can no longer make their loan / mortgage payments.
This is not the time to fall into a daze of denial. You must remain in a pro-active position. Act while you are still in the bank’s good graces!
You can stop a foreclosure.
This is not the time to fall into a daze of denial. You must remain in a pro-active position. Act while you are still in the bank’s good graces!
You can stop a foreclosure.
First:
- Contact your lender – ask for the loss mitigation department. You will need your loan number. Tell them your situation and what steps you are taking.
- Do not ignore any notices.
- Keep all records of your contacts with the lender – who you spoke to, what day and time, what was the result of your conversation. Even if no one will speak with you – record that note.
- If you need to send anything in writing, send it by certified mail return receipt.
A foreclosure defense attorney can intercede on your behalf. I have found that too many people are in such denial that they ignore the proceedings until the auction is scheduled and then that week they call my office for help – and there are few options at that point!
Remain pro-active – many laws have been passed to protect homeowners and you can benefit from them.
Monday, June 15, 2009
Beware of Neighbor’s Home Foreclosure
Today, the media reported on the escalating number of foreclosures across America.
Forbes Magazine via a Reuters Report additionally spoke on the impact in Manhattan. This story by Bob Tedeschi in the New York Times, speaks on the subject of what happens to you if your neighbor falls into foreclosure. With respect to him and the New York Times, I am publishing it below for your convenience to read. The excellent graph which accompanies the article can be found at the Times website http://www.nytimes.com/2009/06/14/realestate/mortgages/14mort.html?nl=your-money&emc=b2
If you know anyone in the position of facing foreclosure, I represent sellers in foreclosure defense. Please contact my office for further information at 800.461.3190.
Beware of Neighbor’s Home Foreclosure
The New York Times
By BOB TEDESCHI
Published: June 12, 2009
WHEN it comes to selling your house or planning your next home equity line of credit, being a nosey neighbor could very well pay off.
That’s one implication of a recent report from the Center for Responsible Lending, a consumer advocacy group based in Durham, N.C.
The report, which was released in May, focuses on the ripple effects of home foreclosures, and suggests that homeowners who are concerned about their home’s value should watch for signs of trouble among their closest neighbors.
This year alone, it says, foreclosures will cause an estimated 69.5 million nearby homes to suffer price declines averaging $7,200 per home. The loss in property value could total $500 billion.
The resulting loss in financial flexibility is significant. “Homeowners who had counted on using their home equity to finance their retirement, cover tuition costs, start a small business, or pay medical bills in many cases no longer have this option,” the report said.
Ellen Schloemer, the executive vice president of the Center for Responsible Lending, said that over the next four years, foreclosures would affect an estimated 91.5 million neighboring homes.
“As the foreclosure crisis continues to worsen, the contagion is spreading,” Ms. Schloemer said. “You can’t just say those foreclosures are hurting someone else.”
The rate of home foreclosures has rise sharply since 2007, when the first subprime adjustable-rate mortgages began resetting to higher rates. But even borrowers with good credit have defaulted on their loans as the economy has faltered.
According to the Mortgage Bankers Association, an industry trade group, about 1.4 percent of all first mortgages entered foreclosure in the first quarter of this year, a 20 percent jump from the fourth quarter of 2008, and a record high.
The center’s report relied on forecasts from Credit Suisse, which said late last year that about nine million homes would probably go into foreclosure in 2009 to 2012. The center also used late 2008 data from the Mortgage Bankers Association to estimate this year’s foreclosure figures (about 2.4 million homes).
Two earlier reports released by the Center for Responsible Lending examined the spillover effects of the mortgage crisis. But this year it relied on new research about how a foreclosure affects neighborhood home values — specifically, a 2008 study that includes researchers at Fannie Mae, the government-sponsored agency, and the University of Connecticut.
This study found that homeowners who lived within 300 feet of a foreclosed residential property experienced a drop of 1.3 percent in home value; those living 300 to 500 feet of the foreclosed home typically see a drop in value of 0.6 percent.
John P. Harding, a professor at the University of Connecticut’s Center for Real Estate and Urban Economic Studies, and an author of the study, said the properties that are most affected by a foreclosure are the ones close enough to see the peeling paint, broken windows and overgrown lawns that often accompany such situations.
The worst time for immediate neighbors to sell their homes, refinance or cash out some of their home equity, Mr. Harding said, is just before the bank takes title to the property, because that is the point of greatest neglect.
After that point, Mr. Harding said, many lenders will at least maintain the property’s appearance well enough to attract prospective buyers.
Of course, the best time to try to sell a home or convert equity into cash is when neighbors are on sound financial footing, though it may not be easy to determine.
Job loss is the biggest cause of mortgage default, according to industry experts, so if a neighbor becomes unemployed, you should probably start your own clock ticking.
For those living outside the immediate vicinity of the foreclosure, but still in the neighborhood, Mr. Harding said home values typically bottom out around the time when the bank actually sells the home.
“My advice would be to try to ride that out, not panic, and know that this is the peak effect from lower-priced competition,” he said.
Mr. Harding said that banks, municipalities and the federal government are justified in financing foreclosure-avoidance programs, but not if they help homeowners just barely afford to stay in their homes. In such situations, neighboring homes could still see values drop.
“You want to offer help at a level at which people can still do critical maintenance to the property,” he said.
Forbes Magazine via a Reuters Report additionally spoke on the impact in Manhattan. This story by Bob Tedeschi in the New York Times, speaks on the subject of what happens to you if your neighbor falls into foreclosure. With respect to him and the New York Times, I am publishing it below for your convenience to read. The excellent graph which accompanies the article can be found at the Times website http://www.nytimes.com/2009/06/14/realestate/mortgages/14mort.html?nl=your-money&emc=b2
If you know anyone in the position of facing foreclosure, I represent sellers in foreclosure defense. Please contact my office for further information at 800.461.3190.
Beware of Neighbor’s Home Foreclosure
The New York Times
By BOB TEDESCHI
Published: June 12, 2009
WHEN it comes to selling your house or planning your next home equity line of credit, being a nosey neighbor could very well pay off.
That’s one implication of a recent report from the Center for Responsible Lending, a consumer advocacy group based in Durham, N.C.
The report, which was released in May, focuses on the ripple effects of home foreclosures, and suggests that homeowners who are concerned about their home’s value should watch for signs of trouble among their closest neighbors.
This year alone, it says, foreclosures will cause an estimated 69.5 million nearby homes to suffer price declines averaging $7,200 per home. The loss in property value could total $500 billion.
The resulting loss in financial flexibility is significant. “Homeowners who had counted on using their home equity to finance their retirement, cover tuition costs, start a small business, or pay medical bills in many cases no longer have this option,” the report said.
Ellen Schloemer, the executive vice president of the Center for Responsible Lending, said that over the next four years, foreclosures would affect an estimated 91.5 million neighboring homes.
“As the foreclosure crisis continues to worsen, the contagion is spreading,” Ms. Schloemer said. “You can’t just say those foreclosures are hurting someone else.”
The rate of home foreclosures has rise sharply since 2007, when the first subprime adjustable-rate mortgages began resetting to higher rates. But even borrowers with good credit have defaulted on their loans as the economy has faltered.
According to the Mortgage Bankers Association, an industry trade group, about 1.4 percent of all first mortgages entered foreclosure in the first quarter of this year, a 20 percent jump from the fourth quarter of 2008, and a record high.
The center’s report relied on forecasts from Credit Suisse, which said late last year that about nine million homes would probably go into foreclosure in 2009 to 2012. The center also used late 2008 data from the Mortgage Bankers Association to estimate this year’s foreclosure figures (about 2.4 million homes).
Two earlier reports released by the Center for Responsible Lending examined the spillover effects of the mortgage crisis. But this year it relied on new research about how a foreclosure affects neighborhood home values — specifically, a 2008 study that includes researchers at Fannie Mae, the government-sponsored agency, and the University of Connecticut.
This study found that homeowners who lived within 300 feet of a foreclosed residential property experienced a drop of 1.3 percent in home value; those living 300 to 500 feet of the foreclosed home typically see a drop in value of 0.6 percent.
John P. Harding, a professor at the University of Connecticut’s Center for Real Estate and Urban Economic Studies, and an author of the study, said the properties that are most affected by a foreclosure are the ones close enough to see the peeling paint, broken windows and overgrown lawns that often accompany such situations.
The worst time for immediate neighbors to sell their homes, refinance or cash out some of their home equity, Mr. Harding said, is just before the bank takes title to the property, because that is the point of greatest neglect.
After that point, Mr. Harding said, many lenders will at least maintain the property’s appearance well enough to attract prospective buyers.
Of course, the best time to try to sell a home or convert equity into cash is when neighbors are on sound financial footing, though it may not be easy to determine.
Job loss is the biggest cause of mortgage default, according to industry experts, so if a neighbor becomes unemployed, you should probably start your own clock ticking.
For those living outside the immediate vicinity of the foreclosure, but still in the neighborhood, Mr. Harding said home values typically bottom out around the time when the bank actually sells the home.
“My advice would be to try to ride that out, not panic, and know that this is the peak effect from lower-priced competition,” he said.
Mr. Harding said that banks, municipalities and the federal government are justified in financing foreclosure-avoidance programs, but not if they help homeowners just barely afford to stay in their homes. In such situations, neighboring homes could still see values drop.
“You want to offer help at a level at which people can still do critical maintenance to the property,” he said.
Monday, June 8, 2009
CALL TO ACTION - NYS Homebuyer Tax Credit 2009
We only have two weeks left --- please let our New York State legislative persons know that you support the Homebuyer Tax Credit. Please find below a sample letter you can use.
Subject: Please Support $7,000 Homebuyer Tax Credit
As a constituent, I am asking for your support on a critical piece of legislation that would provide a personal income tax credit for the purchase of a home in New York State (A.7125 by Assemblyman Vito Lopez/S.3900 by Senator Joseph Addabbo). With just two weeks left in the 2009 Legislative Session, your support is critical.
Under this legislation, homebuyers would be able to receive a $7,000 New York State personal income tax credit that would be returned to the homeowner over the course of their first three years of homeownership, dependent upon their tax credit eligibility. This tax credit would be applied to the purchase of a one or two family house, townhouse, condominium or cooperative apartment that was purchased for one million dollars or less. The homeowner must reside in the property for at least six months of each year to receive the tax credit.
In light of the current housing and economic crisis, this proposal to ease the tax burden paid by homebuyers is a significant step towards stimulating the New York housing market and revitalizing the economy. Over the past year, sales of single family homes in New York State have dropped over 25% and the statewide median sales price has plummeted by more than $22,000 over the past two years.
This State tax credit will work in conjunction with the temporary $8,000 federal housing tax credit, set to expire on December 1, 2009, further stimulating the New York housing market and economy. Increased home purchases will reduce current inventory and lead to production of new housing, resulting in a recovery from the currently depressed building and construction economic sectors. This will ultimately generate additional tax revenue for New York State government from increased income taxes tied to construction employment, increased real estate mortgage recording and real estate transfer taxes, and increased sales tax revenue on items associated with a home purch ase including home furnishings and durable goods such as refrigerators, washing machines, clothes dryers, etc.
Just this year, California enacted a $10,000 homebuyer tax credit, Utah passed a $6,000 new homebuyer tax credit, and 14 other states have introduced home buyer tax credit legislation. New York State is competing with states such as these to lure and retain a young and well-educated workforce and enacting this legislation is a definitive step in the right direction.
In order to retain a qualified workforce, sustain our economy and strengthen our communities, we must make homeownership more affordable to the average homebuyer. I urge you to become a sponsor of A.7125 by Assemblyman Vito Lopez/S.3900 by Senator Joseph Addabbo and help bring this bill to a vote before the end of the 2009 Legislative session. Time is of the essence and the economy in New York State cannot afford to wait.
Thank you.
Subject: Please Support $7,000 Homebuyer Tax Credit
As a constituent, I am asking for your support on a critical piece of legislation that would provide a personal income tax credit for the purchase of a home in New York State (A.7125 by Assemblyman Vito Lopez/S.3900 by Senator Joseph Addabbo). With just two weeks left in the 2009 Legislative Session, your support is critical.
Under this legislation, homebuyers would be able to receive a $7,000 New York State personal income tax credit that would be returned to the homeowner over the course of their first three years of homeownership, dependent upon their tax credit eligibility. This tax credit would be applied to the purchase of a one or two family house, townhouse, condominium or cooperative apartment that was purchased for one million dollars or less. The homeowner must reside in the property for at least six months of each year to receive the tax credit.
In light of the current housing and economic crisis, this proposal to ease the tax burden paid by homebuyers is a significant step towards stimulating the New York housing market and revitalizing the economy. Over the past year, sales of single family homes in New York State have dropped over 25% and the statewide median sales price has plummeted by more than $22,000 over the past two years.
This State tax credit will work in conjunction with the temporary $8,000 federal housing tax credit, set to expire on December 1, 2009, further stimulating the New York housing market and economy. Increased home purchases will reduce current inventory and lead to production of new housing, resulting in a recovery from the currently depressed building and construction economic sectors. This will ultimately generate additional tax revenue for New York State government from increased income taxes tied to construction employment, increased real estate mortgage recording and real estate transfer taxes, and increased sales tax revenue on items associated with a home purch ase including home furnishings and durable goods such as refrigerators, washing machines, clothes dryers, etc.
Just this year, California enacted a $10,000 homebuyer tax credit, Utah passed a $6,000 new homebuyer tax credit, and 14 other states have introduced home buyer tax credit legislation. New York State is competing with states such as these to lure and retain a young and well-educated workforce and enacting this legislation is a definitive step in the right direction.
In order to retain a qualified workforce, sustain our economy and strengthen our communities, we must make homeownership more affordable to the average homebuyer. I urge you to become a sponsor of A.7125 by Assemblyman Vito Lopez/S.3900 by Senator Joseph Addabbo and help bring this bill to a vote before the end of the 2009 Legislative session. Time is of the essence and the economy in New York State cannot afford to wait.
Thank you.
Wednesday, May 20, 2009
FICO Web Site May Help Homeowners Seeking Loan Modifications -- as reported on Bloomberg.com
This article is just too wonderful and jam packed with useful information and website links -- so with all respect and credit to Bloomberg.com, I am posting it here for your information.
FICO Web Site May Help Homeowners Seeking Loan Modifications
By Alexis Leondis
April 17 (Bloomberg) -- FICO, owner of the credit-scoring formula that many lenders use in making mortgages, is now helping homeowners figure out if they can keep them.
The Minneapolis-based credit-rating company is unveiling a new Web site today, mortgagereliefonline.com, to help struggling homeowners avoid foreclosure. Borrowers complete a confidential online form and should find out within seconds whether they may qualify for loan modifications or refinancing, according to a statement from the company. A free credit counselor approved by the U.S. Housing and Urban Development department will contact the eligible borrower within 48 hours, FICO said.
“This site enables consumers to come to one place and have almost immediate feedback in terms of what they’re eligible for,” said Lisa Nelson, vice president of global scoring for FICO. The company partnered with nonprofit organizations Minneapolis-based Homeownership Preservation Foundation and Houston-based Money Management International, which will provide the credit counseling at no cost to homeowners.
U.S. foreclosure filings rose 24 percent in the first quarter from a year earlier, Irvine, California-based RealtyTrac Inc., a seller of default data, said yesterday. The unemployment rate jumped to 8.5 percent in March, the highest since 1983, as 663,000 jobs were lost, according to the Labor Department.
The initiative by FICO, formerly known as Fair Isaac Corp., follows President Barack Obama’s Making Home Affordable plan to assess who is likely to qualify for foreclosure prevention.
Government Web Site
A government Web site, Makinghomeaffordable.gov, created by the Obama administration in March, also provides an online questionnaire, which analyzes a homeowner’s eligibility for loan modification or refinancing. Links to free HUD-approved counselors are listed on the government’s site for homeowners to contact.
The housing-rescue plan is intended to help as many as 9 million homeowners who may be close to default refinance into cheaper loans. It has two main parts: having lenders lower monthly payments for 3 million to 4 million homeowners by modifying their loan terms; and refinancing the loans of 4 million to 5 million Americans whose properties have dropped in value and may owe more than their homes are worth.
Loan servicers and non-profit credit counseling agencies have been inundated with calls from homeowners concerned about defaulting on their mortgages, said Barry Zigas, director of housing policy for the Washington-based Consumer Federation of America. “The site may be a way to cut through waiting on hold,” Zigas said.
Homeowners should keep in mind that a loan modification or refinancing is ultimately decided by the loan servicer, Zigas said.
Federal Aid
Banks receiving federal aid through the U.S. Troubled Asset Relief Program must also take part in the government’s mortgage modification initiatives, HUD Secretary Shaun Donovan said in an April 9 interview on Bloomberg television.
The mortgage servicing divisions of JPMorgan Chase & Co., Citigroup Inc., GMAC LLC, Morgan Stanley, Credit Suisse Group AG and Wells Fargo & Co. have signed contracts to participate, according to the Making Home Affordable Web site.
Borrowers struggling with their mortgages are better served by working directly with their loan servicer or a nonprofit agency than with for-profit companies that charge fees, said Thomas Kelly, a spokesman for New York-based JPMorgan.
Lenders such as JPMorgan will benefit from the new FICO site because it will streamline the number of consumers looking to modify or refinance their loans, said Nelson of FICO.
Seek Counseling
Homeowners who do not meet the government’s guidelines for foreclosure prevention and are deemed ineligible by FICO’s online form will be recommended to seek debt counseling and also be contacted by a counselor, Nelson said.
About 7.6 million mortgage holders don’t qualify because their mortgages are more than 105 percent of the value of their homes, according to real estate valuation service Zillow.com.
“Without congressional action to allow bankruptcy judges to modify the mortgage on a person’s primary residence, voluntary efforts by lenders will continue to fall short and be outpaced by the rising tide of foreclosures that’s at the root of the recession,” said Charlene Crowell, communications manager for the Center for Responsible Lending, a consumer group in Durham, North Carolina.
-- With reporting by Dan Levy in San Francisco and Dawn Kopecki in Washington. Editors: Rick Levinson, William Ahearn.
To contact the reporter on this story: Alexis Leondis in New York aleondis@bloomberg.net.
Last Updated: April 17, 2009 00:01 EDT
FICO Web Site May Help Homeowners Seeking Loan Modifications
By Alexis Leondis
April 17 (Bloomberg) -- FICO, owner of the credit-scoring formula that many lenders use in making mortgages, is now helping homeowners figure out if they can keep them.
The Minneapolis-based credit-rating company is unveiling a new Web site today, mortgagereliefonline.com, to help struggling homeowners avoid foreclosure. Borrowers complete a confidential online form and should find out within seconds whether they may qualify for loan modifications or refinancing, according to a statement from the company. A free credit counselor approved by the U.S. Housing and Urban Development department will contact the eligible borrower within 48 hours, FICO said.
“This site enables consumers to come to one place and have almost immediate feedback in terms of what they’re eligible for,” said Lisa Nelson, vice president of global scoring for FICO. The company partnered with nonprofit organizations Minneapolis-based Homeownership Preservation Foundation and Houston-based Money Management International, which will provide the credit counseling at no cost to homeowners.
U.S. foreclosure filings rose 24 percent in the first quarter from a year earlier, Irvine, California-based RealtyTrac Inc., a seller of default data, said yesterday. The unemployment rate jumped to 8.5 percent in March, the highest since 1983, as 663,000 jobs were lost, according to the Labor Department.
The initiative by FICO, formerly known as Fair Isaac Corp., follows President Barack Obama’s Making Home Affordable plan to assess who is likely to qualify for foreclosure prevention.
Government Web Site
A government Web site, Makinghomeaffordable.gov, created by the Obama administration in March, also provides an online questionnaire, which analyzes a homeowner’s eligibility for loan modification or refinancing. Links to free HUD-approved counselors are listed on the government’s site for homeowners to contact.
The housing-rescue plan is intended to help as many as 9 million homeowners who may be close to default refinance into cheaper loans. It has two main parts: having lenders lower monthly payments for 3 million to 4 million homeowners by modifying their loan terms; and refinancing the loans of 4 million to 5 million Americans whose properties have dropped in value and may owe more than their homes are worth.
Loan servicers and non-profit credit counseling agencies have been inundated with calls from homeowners concerned about defaulting on their mortgages, said Barry Zigas, director of housing policy for the Washington-based Consumer Federation of America. “The site may be a way to cut through waiting on hold,” Zigas said.
Homeowners should keep in mind that a loan modification or refinancing is ultimately decided by the loan servicer, Zigas said.
Federal Aid
Banks receiving federal aid through the U.S. Troubled Asset Relief Program must also take part in the government’s mortgage modification initiatives, HUD Secretary Shaun Donovan said in an April 9 interview on Bloomberg television.
The mortgage servicing divisions of JPMorgan Chase & Co., Citigroup Inc., GMAC LLC, Morgan Stanley, Credit Suisse Group AG and Wells Fargo & Co. have signed contracts to participate, according to the Making Home Affordable Web site.
Borrowers struggling with their mortgages are better served by working directly with their loan servicer or a nonprofit agency than with for-profit companies that charge fees, said Thomas Kelly, a spokesman for New York-based JPMorgan.
Lenders such as JPMorgan will benefit from the new FICO site because it will streamline the number of consumers looking to modify or refinance their loans, said Nelson of FICO.
Seek Counseling
Homeowners who do not meet the government’s guidelines for foreclosure prevention and are deemed ineligible by FICO’s online form will be recommended to seek debt counseling and also be contacted by a counselor, Nelson said.
About 7.6 million mortgage holders don’t qualify because their mortgages are more than 105 percent of the value of their homes, according to real estate valuation service Zillow.com.
“Without congressional action to allow bankruptcy judges to modify the mortgage on a person’s primary residence, voluntary efforts by lenders will continue to fall short and be outpaced by the rising tide of foreclosures that’s at the root of the recession,” said Charlene Crowell, communications manager for the Center for Responsible Lending, a consumer group in Durham, North Carolina.
-- With reporting by Dan Levy in San Francisco and Dawn Kopecki in Washington. Editors: Rick Levinson, William Ahearn.
To contact the reporter on this story: Alexis Leondis in New York aleondis@bloomberg.net.
Last Updated: April 17, 2009 00:01 EDT
Thursday, May 7, 2009
Senate Approves Measure to Reduce Home Foreclosures
May 7, 2009 - Today the New York Times reported that once again the Bankruptcy Reform Bill was tossed away - but the Senate did vote to approve the foreclosure situation somewhat with new legislation. Did anyone make note of the results of the last legislative efforts from last summer and called, "Hope for Homeowners"?
It's somewhat buried within the following article, but I quote here: "Only one mortgage was modified (emphasis added) under the program, which lawmakers had hoped would help as many as 400,000 homeowners." HELLO! Please read more below. Thank you New York Times for the report. Found at http://www.nytimes.com/2009/05/07/us/politics/07housing
Senate Approves Measure to Reduce Home Foreclosures
By DAVID M. HERSZENHORN
WASHINGTON — The Senate on Wednesday approved a bill that would expand federal efforts to prevent mortgage foreclosures, shield mortgage service companies from lawsuits if they participate in federal loan modification programs, and give renters of foreclosed properties at least 90 days’ notice before eviction.
The bill included an expansion of federal efforts to combat homelessness, which has risen during the economic downturn.
The Senate bill, however, did not include Democrats’ most ambitious proposal to aid troubled homeowners: a provision that would have allowed bankruptcy judges to modify the terms of primary mortgages. That provision, championed by Senator Richard J. Durbin, Democrat of Illinois, failed last week to get the 60 votes needed to advance.
The broader housing measure, which the Senate approved on Wednesday, 91 to 5, must now be reconciled with similar legislation approved by the House in March. The House version included the bankruptcy provision but the speaker, Nancy Pelosi, said it would be removed.
So far, the federal programs to reduce foreclosures have largely fallen flat, particularly the Hope for Homeowners program approved by Congress last summer. Only one mortgage was modified under the program, which lawmakers had hoped would help as many as 400,000 homeowners.
The new Senate bill does not include additional money to aid mortgage borrowers, but it does draw $2.3 billion from the Treasury’s $700 billion financial bailout fund for various provisions.
The bill also would increase the borrowing authority for the Federal Deposit Insurance Corporation to $100 billion from $30 billion, a move that will save banks billions of dollars by reducing the extra premiums that they would have had to pay to shore up the deposit insurance fund.
The bill also extends through 2013 the $250,000 maximum value of deposits insured by the F.D.I.C. Before the financial crisis, the maximum amount insured had been $100,000.
“This bill is principally designed to provide that long sought-for relief for people who are facing foreclosure,” Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the banking committee, said at a news conference after the vote. “The bill does other things, but certainly, a major target is to deal with peoples’ housing issues and try to stem the tide.”
Senator Jack Reed, Democrat of Rhode Island, a main proponent of the bill, had a strong role in the homeless prevention provisions and others that would give the Treasury secretary more latitude in deciding when to use taxpayer money to buy stock in financial institutions receiving bailout assistance.
Mr. Reed, at the news conference with Mr. Dodd, stressed the effort to fight homelessness. “We’re facing the greatest crisis in homelessness since the Great Depression,” he said, citing news accounts of tent cities appearing.
The Senate bill would provide $2.2 billion for homelessness assistance and up to $440million for prevention.
It's somewhat buried within the following article, but I quote here: "Only one mortgage was modified (emphasis added) under the program, which lawmakers had hoped would help as many as 400,000 homeowners." HELLO! Please read more below. Thank you New York Times for the report. Found at http://www.nytimes.com/2009/05/07/us/politics/07housing
Senate Approves Measure to Reduce Home Foreclosures
By DAVID M. HERSZENHORN
WASHINGTON — The Senate on Wednesday approved a bill that would expand federal efforts to prevent mortgage foreclosures, shield mortgage service companies from lawsuits if they participate in federal loan modification programs, and give renters of foreclosed properties at least 90 days’ notice before eviction.
The bill included an expansion of federal efforts to combat homelessness, which has risen during the economic downturn.
The Senate bill, however, did not include Democrats’ most ambitious proposal to aid troubled homeowners: a provision that would have allowed bankruptcy judges to modify the terms of primary mortgages. That provision, championed by Senator Richard J. Durbin, Democrat of Illinois, failed last week to get the 60 votes needed to advance.
The broader housing measure, which the Senate approved on Wednesday, 91 to 5, must now be reconciled with similar legislation approved by the House in March. The House version included the bankruptcy provision but the speaker, Nancy Pelosi, said it would be removed.
So far, the federal programs to reduce foreclosures have largely fallen flat, particularly the Hope for Homeowners program approved by Congress last summer. Only one mortgage was modified under the program, which lawmakers had hoped would help as many as 400,000 homeowners.
The new Senate bill does not include additional money to aid mortgage borrowers, but it does draw $2.3 billion from the Treasury’s $700 billion financial bailout fund for various provisions.
The bill also would increase the borrowing authority for the Federal Deposit Insurance Corporation to $100 billion from $30 billion, a move that will save banks billions of dollars by reducing the extra premiums that they would have had to pay to shore up the deposit insurance fund.
The bill also extends through 2013 the $250,000 maximum value of deposits insured by the F.D.I.C. Before the financial crisis, the maximum amount insured had been $100,000.
“This bill is principally designed to provide that long sought-for relief for people who are facing foreclosure,” Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the banking committee, said at a news conference after the vote. “The bill does other things, but certainly, a major target is to deal with peoples’ housing issues and try to stem the tide.”
Senator Jack Reed, Democrat of Rhode Island, a main proponent of the bill, had a strong role in the homeless prevention provisions and others that would give the Treasury secretary more latitude in deciding when to use taxpayer money to buy stock in financial institutions receiving bailout assistance.
Mr. Reed, at the news conference with Mr. Dodd, stressed the effort to fight homelessness. “We’re facing the greatest crisis in homelessness since the Great Depression,” he said, citing news accounts of tent cities appearing.
The Senate bill would provide $2.2 billion for homelessness assistance and up to $440million for prevention.
Sunday, April 19, 2009
NYC Budget Update - As reported by NYSAR
City budget update
On April 1, 2009, City Council Speaker Christine Quinn released the council’s Fiscal Year 2010 Preliminary Budget Response. This document is a result of a month of testimony by city agencies and the public.
The council projects an even bleaker fiscal picture for New York City, forecasting tax revenue in the current and next fiscal year to be $438 million lower than the mayor’s estimates. The council also projects that revenues from the real property transfer tax and mortgage recording tax will decrease 43.4 percent and 48.6 percent, respectively, in the current fiscal year with further declines anticipated in Fiscal Year 2010.
The mayor will release his executive budget by April 30, 2009, whereupon the city council will hold another series of public hearings. The fiscal year 2010 budget must be passed by June 30, 2009.
On April 1, 2009, City Council Speaker Christine Quinn released the council’s Fiscal Year 2010 Preliminary Budget Response. This document is a result of a month of testimony by city agencies and the public.
The council projects an even bleaker fiscal picture for New York City, forecasting tax revenue in the current and next fiscal year to be $438 million lower than the mayor’s estimates. The council also projects that revenues from the real property transfer tax and mortgage recording tax will decrease 43.4 percent and 48.6 percent, respectively, in the current fiscal year with further declines anticipated in Fiscal Year 2010.
The mayor will release his executive budget by April 30, 2009, whereupon the city council will hold another series of public hearings. The fiscal year 2010 budget must be passed by June 30, 2009.
Latest Bankruptcy Conference in New Jersey
So Friday found me blurry eyed having worked all night prior at my Manhattan office - driving to a nine a.m. bankruptcy conference to learn what's new and exciting.
OK, I can think of a hundred at least other ways of spending my time - no less working on something else - than attending another bankruptcy conference. But I seem to never stop having to know more about what is going on. What if anything is changing in this market? How can I learn something else that can be of use...
So - a few things to report. The Third Circuit is sypathetic to debtors. That's the good news. The bad news - take a look at the means test requirements. That's enough to make anyone take pause, no less an attorney as to why and how a person can qualify to file bankruptcy. The link I've given here to the New Jersey Bankruptcy Court page has some valuable information for homeowners and others who find themselves distressed by their current economic problems.
http://www.njb.uscourts.gov/ The bankruptcy legislation that I spoke about in my last post is still of the utmost importance to be passed. Please read - write, call, e-mail your representatives in support of this legislation.
On another subject - somewhat related - what about just walking away from real estate property that can no longer be afforded?
I am frankly amazed at the number of phone calls I receive from people thinking that the bad investments they have made in real estate should somehow just be forgiven and forgot by everyone involved in them. I imagine that folks think that how easy it was for them to be wrongly qualified to purchase - it should be just as easy for them to walk away from it. Something akin to - you thought I could afford this - well I can't - so here, take it back and don't bother me again.
It isn't so easy. So....if you find yourself in that situation - please call my office and let's talk about what options may be available...212.461.4240.
Let's talk soon.
OK, I can think of a hundred at least other ways of spending my time - no less working on something else - than attending another bankruptcy conference. But I seem to never stop having to know more about what is going on. What if anything is changing in this market? How can I learn something else that can be of use...
So - a few things to report. The Third Circuit is sypathetic to debtors. That's the good news. The bad news - take a look at the means test requirements. That's enough to make anyone take pause, no less an attorney as to why and how a person can qualify to file bankruptcy. The link I've given here to the New Jersey Bankruptcy Court page has some valuable information for homeowners and others who find themselves distressed by their current economic problems.
http://www.njb.uscourts.gov/ The bankruptcy legislation that I spoke about in my last post is still of the utmost importance to be passed. Please read - write, call, e-mail your representatives in support of this legislation.
On another subject - somewhat related - what about just walking away from real estate property that can no longer be afforded?
I am frankly amazed at the number of phone calls I receive from people thinking that the bad investments they have made in real estate should somehow just be forgiven and forgot by everyone involved in them. I imagine that folks think that how easy it was for them to be wrongly qualified to purchase - it should be just as easy for them to walk away from it. Something akin to - you thought I could afford this - well I can't - so here, take it back and don't bother me again.
It isn't so easy. So....if you find yourself in that situation - please call my office and let's talk about what options may be available...212.461.4240.
Let's talk soon.
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