Over 6,600 American families a day are losing their homes to foreclosure. In the next five years, over 8,000,000 American family homes will be lost to foreclosure, unless we do something now. If we don’t, the value of all of our homes will keep going down and our neighborhoods will suffer.
DON’T LET THE BANKS BLOCK THIS NO-COST ACTION TO SAVE FAMILY HOMES AND OUR COMMUNITIES AND HELP RESTORE OUR NATION’S ECONOMY
Our Senators have the opportunity to pass legislation that would allow courts to change bad mortgages so struggling homeowners can save their homes from foreclosure. The result? Fewer foreclosures and more stable home prices for all of us.
Tell your Senators to support Senate Bill 61 - the Helping Families Save Their Homes in Bankruptcy Act of 2009. Reduce home foreclosures at no cost to taxpayers.
Call your United States Senators toll free: 877.354.4958
Or email them at: www.nacba.org/TellCongress
The mortgage modification proposal has been endorsed by leading economists, 22 state Attorneys General, state and local elected officials, newspaper editorial boards from around the country and nearly 100 leading national organizations representing seniors, consumers, religious affiliations, financial professionals, working families, and civil rights and housing groups.
Provided for by the National Association of Consumer Bankruptcy Attorneys, Inc., a nationwide organization dedicated to protecting the rights of honest, hard-working, financially distressed Americans. Go to www.nacba.org/S61 for more information about the bill and how you can help get it passed.
Monday, March 16, 2009
Thursday, March 5, 2009
In today’s Wall Street Journal, http://online.wsj.com/home-page there is a superb article by Nick Timiraos titled, “Mortgage-Assistance Program Offers Disparate Treatment Depending on Goals and Circumstances”.
With respect to the full article, I am excerpting a small section of it because it details important components of the program. Mr. Timiraos writes:
….
The program has two main components. One provision will allow diligent borrowers who are current on their mortgage payments but have little or no equity in their homes to refinance their first mortgage to take advantage of current interest rates, which have fallen to near record lows. That is designed to allow responsible borrowers -- mainly those who have been hurt by falling home prices -- to benefit from the current climate. Lenders won't refinance borrowers who don't have equity in their homes.
With respect to the full article, I am excerpting a small section of it because it details important components of the program. Mr. Timiraos writes:
….
The program has two main components. One provision will allow diligent borrowers who are current on their mortgage payments but have little or no equity in their homes to refinance their first mortgage to take advantage of current interest rates, which have fallen to near record lows. That is designed to allow responsible borrowers -- mainly those who have been hurt by falling home prices -- to benefit from the current climate. Lenders won't refinance borrowers who don't have equity in their homes.
The second component involves modifying mortgage loans to lower monthly payments to 31% of the borrowers' gross monthly income, mainly by reducing the interest rate on the loan. This effort would target borrowers who are falling behind on their mortgage payments or who are in danger of falling behind. The government will provide financial incentives to lenders and mortgage servicing companies to encourage them to offer the reduced payment plans, which last for five years.
But as with any broad effort, homeowners are treated unevenly in the programs. The refinance provision is open only to borrowers who have loans that are owned by Fannie Mae or Freddie Mac. That excludes large numbers of borrowers with subprime and other exotic mortgages sold to investors; and borrowers with so-called "jumbo" loans that are too large for government backing. Those groups will be eligible for the modification part of the plan, but only for loans up to $729,750.
Borrowers who owe more than 105% of the current value of their home also won't be eligible for refinancing. That means that fewer borrowers in the nation's most over-heated housing markets, including California and Florida, and in some of the most depressed market in the Midwest can take advantage of the program. "Most of the people we serve are too far underwater to take advantage of this," says Dan Elsea, a mortgage broker in Detroit.
Nationally, 25% of mortgage holders have conforming loans that are within the 80% to 105% loan-to-value ratio needed to qualify for the program, according to real estate Web site Zillow.com. But that number falls in certain high-cost housing markets that have seen big price declines. In Los Angeles, for example, just 9% of mortgage holders are eligible to refinance, while 8% of conforming borrowers are too far underwater, according to Zillow.com.
….
Tuesday, March 3, 2009
Open Letter to our Legislators
As my elected official, you should know that I strongly support President Obama's initiatives to help millions of American homeowners and reduce the massive wave of home foreclosures that are fueling today's national economic crisis. I urge you to adopt the President's plan to prevent home foreclosures that do not need to happen. A key part of the Obama plan would permit distressed homeowners to seek home loan modifications in bankruptcy court.
I do not think that what has been tried so far to stop the foreclosure crisis is working. If families are going to stay in their homes and avoid foreclosure, it seems clear that court-supervised mortgage modifications are necessary. We have wasted too much time already on half measures and other dead-end efforts that have done nothing to slow down the runaway foreclosure crisis.
I particularly like the judicial modification approach because it can prevent hundreds of thousands of foreclosures without spending one penny of taxpayer money. Is it too much to ask that you take this no-cost action for homeowners? After all, you have seen fit to spend billions of dollars on bailing out banks, car companies, brokerage firms and other corporate giants. It's time that we face facts: We can't end the financial crisis without ending the rising tide of foreclosures.
At a time when an estimated 6,600 families are losing their home to foreclosure each and every day, there is no time for delay. I urge you in the strongest possible terms to support this urgently needed legislation.
American families are reeling under the weight of the recession today. At a point where you can help lighten that load and save the homes of many Americans, I am asking you to support judicial modification of mortgages. This nation needs to put the housing crisis behind it.
As my elected official, you can be assured that I will be watching with great interest to see how you come down on this issue of great importance to my family, my neighborhood and my community.
Please keep me informed about how you vote on this important issue.
Sincerely,
Michele A. Peters, Esq.
Monday, March 2, 2009
Partying on with our money!
Another bailout pays for their party. Did you know?
The Northern Trust Company has recently received $1.6 billion from the citizens of the United States as part of the government's bailout program.
Recently, the Northern Trust spent millions of dollars to sponsor a golf tournament (The Northern Trust Open at the Riviera Country Club in Los Angeles). In connection therewith, the company incurred the following expenses:
- Airfare for hundreds of clients and employees to Los Angeles.
- Hotel rooms, including rooms at very upscale properties, for hundreds of people.
- Dinner and cocktail parties.
- Chicago concert.
- Earth, Wind, & Fire concert.
- Sheryl Crow concert.
Northern Trust responded that it did not ask for the $1.6 billion but took it only to help the government reach its goal of having the participation of all major banks. It should be noted that Northern Trust is also current with its repayment plan. See Bailout Bank Blows Millions Partying in L.A., TMZ.com, Feb. 24, 2009; Stephen Bernard, Northern Trust faces scrutiny for event spending, AP, Feb. 25, 2009; and Northern Trust, An Open Letter to Northern Trust Shareholders, Clients and Staff, Feb. 24, 2009.
Why do I post this? Because I RESENT my tax dollars going to these institutions. If any corporation is in need of our "bail out" dollars - they should be in bankruptcy and under the supervision of the court and the U.S. Trustees who will ensure that the money goes to the proper places.
Friday, February 20, 2009
6 things to know about the Economic Stimulus package
Here are six things you need to know about the Economic Stimulus package which includes the much discussed - $8,000 first-time home buyer tax credit.
1. Eight grand, new first-time home buyers: The tax credit included in the economic stimulus legislation is much narrower than the original proposed amount. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. It does not have to be repaid.
2. First time buyers defined: For the purpose of legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before purchasing a house. (The date of purchase is considered the day that title is transferred.) If you have owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit. You would have to prove where your principal residence has been during that time.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.
6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)
1. Eight grand, new first-time home buyers: The tax credit included in the economic stimulus legislation is much narrower than the original proposed amount. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. It does not have to be repaid.
2. First time buyers defined: For the purpose of legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before purchasing a house. (The date of purchase is considered the day that title is transferred.) If you have owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit. You would have to prove where your principal residence has been during that time.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.
6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)
Monday, January 19, 2009
What a Difference 4 Months Make
On this very historical Martin Luther King Jr. Day - the eve of Barack Obama's inauguration, the feeling in the City is optimistic for the first time in many, many months.
The snow is falling and still there is a smile on so many New Yorkers' faces. We can all use a good dose of optimism and I welcome our new administration with open arms.
The snow is falling and still there is a smile on so many New Yorkers' faces. We can all use a good dose of optimism and I welcome our new administration with open arms.
Friday, December 26, 2008
Crashing into Christmas
I love the day after Christmas where I'm usually found hanging around the house in my slippers and robe. I can quietly enjoy the day after all the whirlwind of festivities and take the time to reflect on what has happened and what may happen in the new year.
Manhattan real estate has been absolutely amazing over the past three months. It's as if - again - "the sky is falling" syndrome has returned. I love taking the time to think how to restructure and organize our business so we can change with the market. Because that is afterall the key to success - be changeable with the times.
By my side is Charleston (my faithful dog), who is essentially sleeping off the doggie treats he has been enjoying. He's encouraging me to do the same.
I wish everyone a wonderful holiday and I look forward to learning more in the new year.
Manhattan real estate has been absolutely amazing over the past three months. It's as if - again - "the sky is falling" syndrome has returned. I love taking the time to think how to restructure and organize our business so we can change with the market. Because that is afterall the key to success - be changeable with the times.
By my side is Charleston (my faithful dog), who is essentially sleeping off the doggie treats he has been enjoying. He's encouraging me to do the same.
I wish everyone a wonderful holiday and I look forward to learning more in the new year.
Friday, December 5, 2008
NYC Apartment Rents Fell in November, Vacancies Rose
Bloomberg.com December 04, 2008
NYC Apartment Rents Fell in November, Vacancies Rose
Sharon L. Lynch
Manhattan apartment rents fell for a fourth consecutive month in November and vacancy rates reached 2 percent for the first time in almost two years as Wall Street’s financial turmoil took a toll on the housing market.
Rents dropped 2.2 percent to 4.9 percent across all sizes of apartments, with the biggest drop in the smallest flats. Studios rented for an average of $1,808, down from $1,901 in October, New York-based real estate broker Citi Habitats said today in a report.
Rents are declining as New York City is forecast to lose as many as 165,000 jobs, including 35,000 in the financial industry, as the impact of the credit crisis spreads throughout the economy. Wall Street firms including Merrill Lynch & Co. have produced mortgage-related losses and writedowns of more than $900 billion and are cutting staff as the economy weakens.
“There’s a lot of volatility out there. A lot of people are worried about their personal circumstances,” Citi Habitats President Gary Malin said in an interview. “Everyone is definitively conscious about price.”
SoHo Most Expensive
The city’s most expensive neighborhood remained the Soho/TriBeCa area, with studios renting for an average of $2,395, one bedrooms for $3,637, two bedrooms going for $5,300 and three bedrooms for $7,045.
A three bedroom in Soho/TriBeCa costs almost 20 percent more to rent than on the Upper West Side, the second most expensive neighborhood for that size apartment.
Excluding areas north of 96th Street, the cost of a studio apartment fell the most in West Midtown, with the average declining 10.6 percent to $1,832. One bedrooms dropped the most in Midtown East, where they fell 7.5 percent to $2,621.
Murray Hill had the biggest drop in two-bedroom apartment rents, falling 10.4 percent to $3,225.
The biggest drop in three-bedroom apartments was in the Wall Street/Battery Park City neighborhood, where the average cost dropped 6.1 percent to $5,304.
The least expensive neighborhood south of 96th Street for studio apartments, two- and three-bedroom apartments was the Lower East Side. Studio rents there fell 1 percent to $1,600 a month, two bedrooms declined 3.2 percent to an average of $2,917 and three-bedrooms were little changed at $4,081.
For one-bedroom units south of 96th Street, the least expensive area was the Upper East Side, where prices fell 2.6 percent to $2,228.
More Discounts
Rising vacancies are also prompting some landlords to offer incentives such as a free month’s rent, Malin said.
“If I’m a tenant, I’m certainly going to have more options of apartments to look at,” Malin said. “They are also going to have more options when it comes to pricing.”
Rents are falling in Manhattan as apartment sales also decline and the inventory of unsold properties rises.
Sales fell for the third consecutive quarter and inventory rose by a third even in the three months ended Sept. 30 even as prices continued to extend a five-year streak of gains, New York-based real estate appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said in a report on Oct. 3.
Transactions dropped 24 percent to 2,654 from a year earlier and the number of apartments on the market increased to 7,003. The median price of a condominium and co-op jumped 7.4 percent to $928,263, the second highest on record.
The third-quarter Manhattan property market results were the first to capture sales since Bear Stearns & Co. was forced to sell itself to rival JPMorgan Chase & Co. in March after customers and lenders fled on speculation the company was short of cash.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCnxy9pXB7O0
NYC Apartment Rents Fell in November, Vacancies Rose
Sharon L. Lynch
Manhattan apartment rents fell for a fourth consecutive month in November and vacancy rates reached 2 percent for the first time in almost two years as Wall Street’s financial turmoil took a toll on the housing market.
Rents dropped 2.2 percent to 4.9 percent across all sizes of apartments, with the biggest drop in the smallest flats. Studios rented for an average of $1,808, down from $1,901 in October, New York-based real estate broker Citi Habitats said today in a report.
Rents are declining as New York City is forecast to lose as many as 165,000 jobs, including 35,000 in the financial industry, as the impact of the credit crisis spreads throughout the economy. Wall Street firms including Merrill Lynch & Co. have produced mortgage-related losses and writedowns of more than $900 billion and are cutting staff as the economy weakens.
“There’s a lot of volatility out there. A lot of people are worried about their personal circumstances,” Citi Habitats President Gary Malin said in an interview. “Everyone is definitively conscious about price.”
SoHo Most Expensive
The city’s most expensive neighborhood remained the Soho/TriBeCa area, with studios renting for an average of $2,395, one bedrooms for $3,637, two bedrooms going for $5,300 and three bedrooms for $7,045.
A three bedroom in Soho/TriBeCa costs almost 20 percent more to rent than on the Upper West Side, the second most expensive neighborhood for that size apartment.
Excluding areas north of 96th Street, the cost of a studio apartment fell the most in West Midtown, with the average declining 10.6 percent to $1,832. One bedrooms dropped the most in Midtown East, where they fell 7.5 percent to $2,621.
Murray Hill had the biggest drop in two-bedroom apartment rents, falling 10.4 percent to $3,225.
The biggest drop in three-bedroom apartments was in the Wall Street/Battery Park City neighborhood, where the average cost dropped 6.1 percent to $5,304.
The least expensive neighborhood south of 96th Street for studio apartments, two- and three-bedroom apartments was the Lower East Side. Studio rents there fell 1 percent to $1,600 a month, two bedrooms declined 3.2 percent to an average of $2,917 and three-bedrooms were little changed at $4,081.
For one-bedroom units south of 96th Street, the least expensive area was the Upper East Side, where prices fell 2.6 percent to $2,228.
More Discounts
Rising vacancies are also prompting some landlords to offer incentives such as a free month’s rent, Malin said.
“If I’m a tenant, I’m certainly going to have more options of apartments to look at,” Malin said. “They are also going to have more options when it comes to pricing.”
Rents are falling in Manhattan as apartment sales also decline and the inventory of unsold properties rises.
Sales fell for the third consecutive quarter and inventory rose by a third even in the three months ended Sept. 30 even as prices continued to extend a five-year streak of gains, New York-based real estate appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said in a report on Oct. 3.
Transactions dropped 24 percent to 2,654 from a year earlier and the number of apartments on the market increased to 7,003. The median price of a condominium and co-op jumped 7.4 percent to $928,263, the second highest on record.
The third-quarter Manhattan property market results were the first to capture sales since Bear Stearns & Co. was forced to sell itself to rival JPMorgan Chase & Co. in March after customers and lenders fled on speculation the company was short of cash.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCnxy9pXB7O0
Tuesday, November 25, 2008
Thanksgiving
It seems with all that is happening in our real estate market - there is still much to be thankful for and that includes right now the ability to even complain about it.
Can I just start charging people $1.00 every time I'm asked - "How's the market?" I think it would help offset my bus fare. My favorite response has always been - "which market are you asking about?" Because we certainly have a commercial; residential; rental; sales; uptown; downtown; midtown; etc. set of markets all of which have been performing differently at different times. But we can be really safe saying now -- every one of these markets is essentially just WAITING. But -- the big one here -- if people felt edged out over the past year by prices, please start looking because there are possibilities out there now. For instance, co-op studios have dropped under 300K - and there is more to follow. Of course, many properties were just simply over-priced to begin with but there's no question that prices have dropped from 2007 - to the tune of 30%.
Traditionally everyone waits about 60 days after a Presidential election (Yea Obama!) to make any major decision, and this year is no different.
I'm longing for January 2009.
I loved receiving from Rick Gregory, my main man at Weichert Financial, the first news of the drop in rates today - followed up by his remarks that he will do whatever it takes to get the deal done for us. Now that's a CAN DO type of attitude I love. He's also a rarity in this business.
What is it about most Manhattanites that everyone has to be so cranky, all of the time? Is it because no matter how much money you make, it's never enough? No matter how many sit-ups you do, it's never enough? No matter how many friends you make - or for that matter, enemies, it's never enough? And on that note - it seems I have no end of either friends or enemies. I've been told it's because I speak my opinion -- classic Sagittarius trait I reckon. But for better and often for worse, I have unfortunately spoken my opinion.
So leading with "crankiness" -- we are smack up against Thanksgiving - a time of reflection, draggin' out the old speeches that other people wrote and said. And I'm feeling a wee bit cranky myself.
Can I just start charging people $1.00 every time I'm asked - "How's the market?" I think it would help offset my bus fare. My favorite response has always been - "which market are you asking about?" Because we certainly have a commercial; residential; rental; sales; uptown; downtown; midtown; etc. set of markets all of which have been performing differently at different times. But we can be really safe saying now -- every one of these markets is essentially just WAITING. But -- the big one here -- if people felt edged out over the past year by prices, please start looking because there are possibilities out there now. For instance, co-op studios have dropped under 300K - and there is more to follow. Of course, many properties were just simply over-priced to begin with but there's no question that prices have dropped from 2007 - to the tune of 30%.
Traditionally everyone waits about 60 days after a Presidential election (Yea Obama!) to make any major decision, and this year is no different.
I'm longing for January 2009.
I loved receiving from Rick Gregory, my main man at Weichert Financial, the first news of the drop in rates today - followed up by his remarks that he will do whatever it takes to get the deal done for us. Now that's a CAN DO type of attitude I love. He's also a rarity in this business.
What is it about most Manhattanites that everyone has to be so cranky, all of the time? Is it because no matter how much money you make, it's never enough? No matter how many sit-ups you do, it's never enough? No matter how many friends you make - or for that matter, enemies, it's never enough? And on that note - it seems I have no end of either friends or enemies. I've been told it's because I speak my opinion -- classic Sagittarius trait I reckon. But for better and often for worse, I have unfortunately spoken my opinion.
So leading with "crankiness" -- we are smack up against Thanksgiving - a time of reflection, draggin' out the old speeches that other people wrote and said. And I'm feeling a wee bit cranky myself.
Thursday, November 13, 2008
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