WASHINGTON – Nov. 18, 2010 – Although the recent trend of rising long-term borrowing rates may mean higher mortgages for consumers in the coming months, the greater obstacles to housing market recovery are job creation and availability of credit, according to a National Association of Realtors® (NAR) analysis.
“Modest changes in mortgage rates are less important to a housing market recovery than the number of people who are able to obtain mortgages,” says NAR Chief Economist Lawrence Yun.
Last week, NAR’s Board of Directors approved a credit policy to urge the mortgage lending industry to reassess and amend their policies so more qualified homebuyers can become homeowners.
“Currently, the overly tight underwriting standards are holding back the pace of housing market recovery,” says Yun. “In particular, creditworthy small business owners and those who want to purchase investor properties have encountered extreme difficulties in obtaining a mortgage. In contrast, all indications are that recently originated mortgages with Fannie Mae, Freddie Mac and the Federal Housing Administration have solid loan performance, implying that credit is only going to the most well-qualified borrowers. Additional creditworthy borrowers who are willing to stay well within budget and meet reasonable underwriting criteria should be able to obtain a loan to help speed the housing and economic recovery.”
To qualify for a loan, most buyers also must be gainfully employed. As Congress reconvenes this week and considers an extension of the Bush tax cuts, their decision could impact job creation.
If the Bush tax cuts are extended for those earning less than $250,000 but taxes are increased for higher earners, Yun expects about 1.5 million net new jobs to be added to the economy in 2011. Mortgage rates are expected to rise to 5.4 percent by the end of 2011 from the current 4.2 percent average rate, provided the inflation rate stays manageable at near 2 percent. Total home sales, both existing and new combined, would rise to 5.5 million in 2011 from 5.1 million in 2010. If the Consumer Price Index inflation rate was to reach 3 percent, then mortgage rates could rise to 6 percent by the end of 2011, cutting home sales to 5.2 million.
“If the Bush tax cuts were extended for everyone across the board, an additional 400,000 additional jobs could be created in 2011, with home sales rising by an additional 60,000 to 80,000,” says Yun. “Of course, there are many factors that could influence job creation, and we also need to be mindful of the very high current budget deficits.”
© 2010 Florida Realtors®
http://www.oreinternationalrealty.com
Friday, November 19, 2010
Florida leads U.S. in serious mortgage delinquencies
BY JEFF OSTROWSKI
PALM BEACH POST
Florida still leads the nation in the percentage of homeowners who are ``seriously delinquent'' on their loans, the Mortgage Bankers Association said Thursday.
In the state, 19.52 percent of borrowers were either 90 days past due or in foreclosure in the third quarter. Add in borrowers who are 30 and 60 days late, and nearly one in four Floridians are behind on their loans.
The good news is that Florida's seriously delinquent rate is down from 20.13 percent in the second quarter. But no other state met Florida's lofty level of late payers. Nevada was No. 2 at 17.83 percent, while Illinois' 10.77 percent ranked third.
With Florida's job market still weak and home prices way down from a few years ago, it's no surprise that the state's delinquency rates are so high, said Jack McCabe, a real estate analyst in Deerfield Beach.
``With 48 percent of the state's homeowners underwater, we're going to continue to see delinquencies go up,'' McCabe said. ``The truth is a lot of people have given up and have stopped paying their mortgages.''
Part of the blame lies with the way foreclosures are handled in Florida, said Michael Fratantoni, the Mortgage Bankers' vice president of research and economics. Florida and other states where foreclosures go through the courts have foreclosure inventories that are twice as high as so-called non-judicial states, he said.
Of course, the court system is only partly to blame for Florida's delinquency problem. The bigger culprits are a withering collapse in prices and an 11.9 percent jobless rate that's well above the national unemployment rate of 9.6 percent.
Nationally, the delinquency rate fell, too, which the Mortgage Bankers Association attributed to modest improvements in the job market. The foreclosure freeze at some lenders hasn't played a role in falling delinquencies.
``The foreclosure paperwork issues announced by several large servicers in late September and early October are unlikely to have had a large impact on the third-quarter numbers,'' Fratantoni said.
http://www.oreinternationalrealty.com
PALM BEACH POST
Florida still leads the nation in the percentage of homeowners who are ``seriously delinquent'' on their loans, the Mortgage Bankers Association said Thursday.
In the state, 19.52 percent of borrowers were either 90 days past due or in foreclosure in the third quarter. Add in borrowers who are 30 and 60 days late, and nearly one in four Floridians are behind on their loans.
The good news is that Florida's seriously delinquent rate is down from 20.13 percent in the second quarter. But no other state met Florida's lofty level of late payers. Nevada was No. 2 at 17.83 percent, while Illinois' 10.77 percent ranked third.
With Florida's job market still weak and home prices way down from a few years ago, it's no surprise that the state's delinquency rates are so high, said Jack McCabe, a real estate analyst in Deerfield Beach.
``With 48 percent of the state's homeowners underwater, we're going to continue to see delinquencies go up,'' McCabe said. ``The truth is a lot of people have given up and have stopped paying their mortgages.''
Part of the blame lies with the way foreclosures are handled in Florida, said Michael Fratantoni, the Mortgage Bankers' vice president of research and economics. Florida and other states where foreclosures go through the courts have foreclosure inventories that are twice as high as so-called non-judicial states, he said.
Of course, the court system is only partly to blame for Florida's delinquency problem. The bigger culprits are a withering collapse in prices and an 11.9 percent jobless rate that's well above the national unemployment rate of 9.6 percent.
Nationally, the delinquency rate fell, too, which the Mortgage Bankers Association attributed to modest improvements in the job market. The foreclosure freeze at some lenders hasn't played a role in falling delinquencies.
``The foreclosure paperwork issues announced by several large servicers in late September and early October are unlikely to have had a large impact on the third-quarter numbers,'' Fratantoni said.
http://www.oreinternationalrealty.com
Wednesday, November 10, 2010
Report: September Data Shows Foreclosure Timelines Extending; Extreme Delinquencies on the Rise
RISMEDIA, November 10, 2010-- The September Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE: LPS) shows that foreclosure timelines continue to increase, with the average number of days delinquent in five judicial foreclosure states (New York, Florida, New Jersey, Hawaii and Maine) exceeding 500 days. At the same time, the foreclosure timeline extension has been significantly more pronounced in non-judicial states.
Approximately 275,000 loans started foreclosure during the month and, while delinquencies in September dropped 7.8 percent as compared to a year ago, in the context of "normal market conditions," delinquencies remain at historically high levels and foreclosure inventories are only slightly below all-time highs. More than 4.3 million loans are 90 or more days delinquent or in foreclosure.
Timelines in the 90-days-or-greater delinquency category have continued to increase even as inventories have declined. As of the end of September, 32 percent of 90-days-or-greater delinquencies could be categorized as "extremely delinquent," with borrowers not having made payments for 12 months or more. The average days delinquent for loans in the 90-days-or-greater delinquency category is 316 days, and the average loan in foreclosure has not had a payment made in 484 days, or roughly 16 months.
This month's report also shows that approximately 1.13 million loans that were current at the beginning of January 2010 are at least 60 days delinquent or in foreclosure as of the end of September 2010 – a month-over-month increase of approximately 120,000 loans. The last two months have seen an increasing trend in this new problem loan category – 1.84 percent of loans that were current six months ago are 60 or more days delinquent today.
http:www.oreinternationalrealty.com
Approximately 275,000 loans started foreclosure during the month and, while delinquencies in September dropped 7.8 percent as compared to a year ago, in the context of "normal market conditions," delinquencies remain at historically high levels and foreclosure inventories are only slightly below all-time highs. More than 4.3 million loans are 90 or more days delinquent or in foreclosure.
Timelines in the 90-days-or-greater delinquency category have continued to increase even as inventories have declined. As of the end of September, 32 percent of 90-days-or-greater delinquencies could be categorized as "extremely delinquent," with borrowers not having made payments for 12 months or more. The average days delinquent for loans in the 90-days-or-greater delinquency category is 316 days, and the average loan in foreclosure has not had a payment made in 484 days, or roughly 16 months.
This month's report also shows that approximately 1.13 million loans that were current at the beginning of January 2010 are at least 60 days delinquent or in foreclosure as of the end of September 2010 – a month-over-month increase of approximately 120,000 loans. The last two months have seen an increasing trend in this new problem loan category – 1.84 percent of loans that were current six months ago are 60 or more days delinquent today.
http:www.oreinternationalrealty.com
Bankrate: Mortgage Rates Return to Record Low Territory
RISMEDIA, November 9, 2010--Mortgage rates revisited record lows this week, with the average rate on the benchmark conforming 30-year fixed mortgage rate returning to 4.42 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.
To see mortgage rates in your area, go tohttp://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage hit a new low of 3.81 percent, and the larger jumbo 30-year fixed rate did as well, sinking to 5.04 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM falling to 3.57 percent and the average 7-year ARM retreating to 3.87 percent.
Mortgage rates fell back into record low territory this week. The Federal Reserve has announced another injection of $600 billion over the next 8 months, but it remains to be seen if this is enough to push Treasury yields and mortgage rates lower, and if so, by how much. Even if the Fed is successful in pushing rates lower, it doesn't alter the fact that many would-be borrowers are upside-down, living on a reduced income, or concerned about a lack of job security.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.42 percent, the monthly payment for the same size loan would be $1,003.89, a savings of $238 per month for a homeowner refinancing now.
SURVEY RESULTS
30-year fixed: 4.42% -- down from 4.51% last week (avg. points: 0.37)
15-year fixed: 3.81% -- down from 3.90% last week (avg. points: 0.28)
5/1 ARM: 3.57% -- down from 3.67% last week (avg. points: 0.34)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
http://www.oreinternationalrealty.com
To see mortgage rates in your area, go tohttp://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage hit a new low of 3.81 percent, and the larger jumbo 30-year fixed rate did as well, sinking to 5.04 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM falling to 3.57 percent and the average 7-year ARM retreating to 3.87 percent.
Mortgage rates fell back into record low territory this week. The Federal Reserve has announced another injection of $600 billion over the next 8 months, but it remains to be seen if this is enough to push Treasury yields and mortgage rates lower, and if so, by how much. Even if the Fed is successful in pushing rates lower, it doesn't alter the fact that many would-be borrowers are upside-down, living on a reduced income, or concerned about a lack of job security.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.42 percent, the monthly payment for the same size loan would be $1,003.89, a savings of $238 per month for a homeowner refinancing now.
SURVEY RESULTS
30-year fixed: 4.42% -- down from 4.51% last week (avg. points: 0.37)
15-year fixed: 3.81% -- down from 3.90% last week (avg. points: 0.28)
5/1 ARM: 3.57% -- down from 3.67% last week (avg. points: 0.34)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
http://www.oreinternationalrealty.com
Wednesday, October 27, 2010
NAR: September existing-home sales show another strong gain
WASHINGTON – Oct. 25, 2010 – National existing-home sales rose again in September, affirming that a sales recovery has begun, according to the National Association of Realtors®.
Existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, jumped 10.0 percent to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August, but remain 19.1 percent below the 5.60 million-unit pace in September 2009 when first-time buyers were ramping up in advance of the initial deadline for the tax credit last November.
NAR Chief Economist Lawrence Yun said the housing market is in the early stages of recovery. “A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions,” he said.
According to Freddie Mac, the national commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.35 percent in September from 4.43 percent in August; the rate was 5.06 percent in September 2009.
The national median existing-home price for all housing types was $171,700 in September, which is 2.4 percent below a year ago. Distressed homes accounted for 35 percent of sales in September compared with 34 percent in August; they were 29 percent in September 2009.
NAR President Vicki Cox Golder said opportunities abound in the current market. “A decade ago, mortgage rates were almost double what they are today, and they’re about one-and-a-half percentage points lower than the peak of the housing boom in 2005,” she said. “In addition, home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing rush on record.”
To illustrate the jump in housing affordability, the median monthly mortgage payment for a recently purchased home is several hundred dollars less than it was five years ago. “In fact, the median monthly mortgage payment in many areas is less than people are paying for rent,” Golder said.
Housing affordability conditions today are 60 percentage points higher than during the housing boom, so it has become a very strong buyers’ market, especially for families with long-term plans. “The savings today’s buyers are receiving are not a one-time benefit. Buyers with fixed-rate mortgages will save money every year they are living in their home – this is truly an example of how homeownership builds wealth over the long term,” Golder added.
Total housing inventory at the end of September fell 1.9 percent to 4.04 million existing homes available for sale, which represents a 10.7-month supply at the current sales pace, down from a 12.0-month supply in August. Raw unsold inventory is 11.7 percent below the record of 4.58 million in July 2008.
“Vacant homes and homes where mortgages have not been paid for an extended number of months need to be cleared from the market as quickly as possible, with a new set of buyers helping the recovery along a healthy path,” Yun said. “Inventory remains elevated and continues to favor buyers over sellers. A normal seasonal decline in inventory is expected through the upcoming months.”
A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in September, almost unchanged from 31 percent in August. Investors were at an 18 percent market share in September, down from 21 percent in August; the balance of purchases were by repeat buyers. All-cash sales were at 29 percent in September compared with 28 percent in August.
Single-family home sales increased 10.0 percent to a seasonally adjusted annual rate of 3.97 million in September from a pace of 3.61 million in August, but are 19.5 percent below the 4.93 million level in September 2009. The median existing single-family home price was $172,600 in September, down 1.9 percent from a year ago.
Existing condominium and co-op sales rose 9.8 percent to a seasonally adjusted annual rate of 560,000 in September from 510,000 in August, but are 16.2 percent lower than the 668,000-unit level one year ago. The median existing condo price was $165,400 in September, down 6.2 percent from September 2009.
Regionally, existing-home sales in the Northeast increased 10.1 percent to an annual pace of 760,000 in September but are 20.8 percent below September 2009. The median price in the Northeast was $239,200, which is 1.4 percent below a year ago.
Existing-home sales in the Midwest jumped 14.5 percent in September to a level of 950,000 but are 26.4 percent below a year ago. The median price in the Midwest was $139,700, down 5.2 percent from September 2009.
In the South, existing-home sales rose 10.6 percent to an annual pace of 1.77 million in September but are 14.9 percent lower than September 2009. The median price in the South was $149,500, down 2.6 percent from a year ago.
Existing-home sales in the West increased 5.0 percent to an annual level of 1.05 million in September but are 16.7 percent below a year ago. The median price in the West was $213,600, which is 4.9 percent lower than September 2009.
© 2010 Florida Realtors®
http:www.oreinternationalrealty.com
Existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, jumped 10.0 percent to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August, but remain 19.1 percent below the 5.60 million-unit pace in September 2009 when first-time buyers were ramping up in advance of the initial deadline for the tax credit last November.
NAR Chief Economist Lawrence Yun said the housing market is in the early stages of recovery. “A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions,” he said.
According to Freddie Mac, the national commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.35 percent in September from 4.43 percent in August; the rate was 5.06 percent in September 2009.
The national median existing-home price for all housing types was $171,700 in September, which is 2.4 percent below a year ago. Distressed homes accounted for 35 percent of sales in September compared with 34 percent in August; they were 29 percent in September 2009.
NAR President Vicki Cox Golder said opportunities abound in the current market. “A decade ago, mortgage rates were almost double what they are today, and they’re about one-and-a-half percentage points lower than the peak of the housing boom in 2005,” she said. “In addition, home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing rush on record.”
To illustrate the jump in housing affordability, the median monthly mortgage payment for a recently purchased home is several hundred dollars less than it was five years ago. “In fact, the median monthly mortgage payment in many areas is less than people are paying for rent,” Golder said.
Housing affordability conditions today are 60 percentage points higher than during the housing boom, so it has become a very strong buyers’ market, especially for families with long-term plans. “The savings today’s buyers are receiving are not a one-time benefit. Buyers with fixed-rate mortgages will save money every year they are living in their home – this is truly an example of how homeownership builds wealth over the long term,” Golder added.
Total housing inventory at the end of September fell 1.9 percent to 4.04 million existing homes available for sale, which represents a 10.7-month supply at the current sales pace, down from a 12.0-month supply in August. Raw unsold inventory is 11.7 percent below the record of 4.58 million in July 2008.
“Vacant homes and homes where mortgages have not been paid for an extended number of months need to be cleared from the market as quickly as possible, with a new set of buyers helping the recovery along a healthy path,” Yun said. “Inventory remains elevated and continues to favor buyers over sellers. A normal seasonal decline in inventory is expected through the upcoming months.”
A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in September, almost unchanged from 31 percent in August. Investors were at an 18 percent market share in September, down from 21 percent in August; the balance of purchases were by repeat buyers. All-cash sales were at 29 percent in September compared with 28 percent in August.
Single-family home sales increased 10.0 percent to a seasonally adjusted annual rate of 3.97 million in September from a pace of 3.61 million in August, but are 19.5 percent below the 4.93 million level in September 2009. The median existing single-family home price was $172,600 in September, down 1.9 percent from a year ago.
Existing condominium and co-op sales rose 9.8 percent to a seasonally adjusted annual rate of 560,000 in September from 510,000 in August, but are 16.2 percent lower than the 668,000-unit level one year ago. The median existing condo price was $165,400 in September, down 6.2 percent from September 2009.
Regionally, existing-home sales in the Northeast increased 10.1 percent to an annual pace of 760,000 in September but are 20.8 percent below September 2009. The median price in the Northeast was $239,200, which is 1.4 percent below a year ago.
Existing-home sales in the Midwest jumped 14.5 percent in September to a level of 950,000 but are 26.4 percent below a year ago. The median price in the Midwest was $139,700, down 5.2 percent from September 2009.
In the South, existing-home sales rose 10.6 percent to an annual pace of 1.77 million in September but are 14.9 percent lower than September 2009. The median price in the South was $149,500, down 2.6 percent from a year ago.
Existing-home sales in the West increased 5.0 percent to an annual level of 1.05 million in September but are 16.7 percent below a year ago. The median price in the West was $213,600, which is 4.9 percent lower than September 2009.
© 2010 Florida Realtors®
http:www.oreinternationalrealty.com
Stalled foreclosures could swamp local home-buying market
ORLANDO, Fla. – Oct. 27, 2010 – As big lenders’ recent freeze on foreclosures begins to thaw, local real-estate agents worry that those bargain properties will now flood the market and further sink housing prices.
Just a few weeks after Bank of America, J.P. Morgan Chase and other big banks announced a temporary halt to foreclosures because of concerns about improperly signed documents, they are preparing to restart the process. The question is: How many of those stalled foreclosures will lenders put on the market at the same time?
“That’s the big question – will they come back in a big thud or will they trickle in?” said Winter Park real-estate broker David Welch of Re/Max 200. “Unfortunately, I don’t know anyone who knows what the answer is. I think if they come flooding back it obviously won’t be a good thing in the market.”
Since the moratoriums were announced at the beginning of the month, 53 percent of the scheduled foreclosure sales in Orange County have been canceled – creating a backlog of as many as 850 properties that lenders pulled from the process just prior to their hitting the market. In the three weeks preceding the freeze, only 38 percent of the county’s auctions had been canceled, primarily because of judicial requirements for mediation and for face-to-face conversations between lenders and borrowers.
In Orange County Courthouse Room 350, crammed with investors attending the daily foreclosure auctions, longtime buyer Jack Coughlin said last week that he sees banks sitting on a growing inventory of foreclosed houses just waiting to hit the market.
“Are they going to release them all? If they do, there is going to be a 20 percent drop in values,” Coughlin said. “People ask, ‘Where are these properties?’ They are sitting in banks’ vaults.”
Thomas Kelly, a spokesman for J.P. Morgan Chase, said last week his company is still reviewing cases and had not announced any kind of timetable for releasing foreclosed properties to the market.
Orlando ranks 10th in the nation for foreclosure filings, according to a September report by the real estate research company RealtyTrac Inc. The crash that followed the peak-market conditions of three or four years ago has dragged down Orlando’s median resale price from $264,000 in July 2007 to $105,000 last month. Bargain-basement prices already dominate the market: More than 70 percent of the area’s existing-home sales currently involve bank-owned or short-sale properties that sell for less than market value, according to the Orlando Regional Realtor Association.
Lenders’ decision to halt foreclosures in early October did two things to Orlando’s real-estate market: drove up prices and drove down sales. The absence of those bargain properties from the market has caused the median price to spike about $10,000 in recent weeks, to about $115,000, said Welch, who continually tracks the market. And the inventory of active listings has dropped by about 3 percent, he added.
State attorneys general had stepped up pressure on lenders after it was revealed that bank employees had signed foreclosure affidavits without verifying that the documents were accurate – a process known as “robo-signing.” But after reviewing more than 100,000 documents in Florida and 22 other states, Bank of America announced last week that it was restarting the foreclosure process. GMAC Mortgage also said it was resuming work on its foreclosures.
The banks had never stopped litigating the cases; they had just canceled the foreclosure sales to give themselves time to investigate the suspect paperwork and signatures, said Orlando lawyer Matt Englett, whose firm handles tens of thousands of foreclosures. He said robo-signing can become apparent if the names of certain bank employees continually show up on certain documents.
People will still lose their homes, Englett said, but they may be able to walk away without a deficiency judgment against them – without owing any additional money, in other words – if it turns out their paperwork includes suspect signatures. Owners may also be in a better position to get their mortgage terms modified if their foreclosure paperwork has been tarnished in some way.
So far, local real-estate agents haven’t seen any signs of once-stalled foreclosures hitting the market.
“I had more than a third of my listings pulled,” Maitland real-estate agent Lee Acker said. “We had a buyer ready to close on one. It’s just frustrating. These were properties ready to go to owner-occupants.”
In the short term, Acker said, the moratoriums “created an artificial demand for the property that’s left. What I’m afraid of is when they go back on the market.”
Copyright © 2010, The Orlando Sentinel, Fla., Mary Shanklin. Distributed by McClatchy-Tribune Information Services.
http:www.oreinternationalrealty.com
Just a few weeks after Bank of America, J.P. Morgan Chase and other big banks announced a temporary halt to foreclosures because of concerns about improperly signed documents, they are preparing to restart the process. The question is: How many of those stalled foreclosures will lenders put on the market at the same time?
“That’s the big question – will they come back in a big thud or will they trickle in?” said Winter Park real-estate broker David Welch of Re/Max 200. “Unfortunately, I don’t know anyone who knows what the answer is. I think if they come flooding back it obviously won’t be a good thing in the market.”
Since the moratoriums were announced at the beginning of the month, 53 percent of the scheduled foreclosure sales in Orange County have been canceled – creating a backlog of as many as 850 properties that lenders pulled from the process just prior to their hitting the market. In the three weeks preceding the freeze, only 38 percent of the county’s auctions had been canceled, primarily because of judicial requirements for mediation and for face-to-face conversations between lenders and borrowers.
In Orange County Courthouse Room 350, crammed with investors attending the daily foreclosure auctions, longtime buyer Jack Coughlin said last week that he sees banks sitting on a growing inventory of foreclosed houses just waiting to hit the market.
“Are they going to release them all? If they do, there is going to be a 20 percent drop in values,” Coughlin said. “People ask, ‘Where are these properties?’ They are sitting in banks’ vaults.”
Thomas Kelly, a spokesman for J.P. Morgan Chase, said last week his company is still reviewing cases and had not announced any kind of timetable for releasing foreclosed properties to the market.
Orlando ranks 10th in the nation for foreclosure filings, according to a September report by the real estate research company RealtyTrac Inc. The crash that followed the peak-market conditions of three or four years ago has dragged down Orlando’s median resale price from $264,000 in July 2007 to $105,000 last month. Bargain-basement prices already dominate the market: More than 70 percent of the area’s existing-home sales currently involve bank-owned or short-sale properties that sell for less than market value, according to the Orlando Regional Realtor Association.
Lenders’ decision to halt foreclosures in early October did two things to Orlando’s real-estate market: drove up prices and drove down sales. The absence of those bargain properties from the market has caused the median price to spike about $10,000 in recent weeks, to about $115,000, said Welch, who continually tracks the market. And the inventory of active listings has dropped by about 3 percent, he added.
State attorneys general had stepped up pressure on lenders after it was revealed that bank employees had signed foreclosure affidavits without verifying that the documents were accurate – a process known as “robo-signing.” But after reviewing more than 100,000 documents in Florida and 22 other states, Bank of America announced last week that it was restarting the foreclosure process. GMAC Mortgage also said it was resuming work on its foreclosures.
The banks had never stopped litigating the cases; they had just canceled the foreclosure sales to give themselves time to investigate the suspect paperwork and signatures, said Orlando lawyer Matt Englett, whose firm handles tens of thousands of foreclosures. He said robo-signing can become apparent if the names of certain bank employees continually show up on certain documents.
People will still lose their homes, Englett said, but they may be able to walk away without a deficiency judgment against them – without owing any additional money, in other words – if it turns out their paperwork includes suspect signatures. Owners may also be in a better position to get their mortgage terms modified if their foreclosure paperwork has been tarnished in some way.
So far, local real-estate agents haven’t seen any signs of once-stalled foreclosures hitting the market.
“I had more than a third of my listings pulled,” Maitland real-estate agent Lee Acker said. “We had a buyer ready to close on one. It’s just frustrating. These were properties ready to go to owner-occupants.”
In the short term, Acker said, the moratoriums “created an artificial demand for the property that’s left. What I’m afraid of is when they go back on the market.”
Copyright © 2010, The Orlando Sentinel, Fla., Mary Shanklin. Distributed by McClatchy-Tribune Information Services.
http:www.oreinternationalrealty.com
Majority of Americans: Buying a Home Is a Good Decision
RISMEDIA, October 27, 2010--Despite the continuing challenges facing the U.S., nearly eight out of 10 respondents believe buying a home is a good financial decision, according to NAR's eighth annual Housing Opportunity Pulse Survey.
The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in eight years of sampling, with 70 percent of Americans saying that job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership. The telephone survey of 1,209 urban and suburban adults in the top 25 metropolitan statistical areas was conducted for NAR by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program.
Some key results:
* Americans continue to believe that buying a home is a good financial decision (77 percent believe strongly or not so strongly, 68 percent strongly so).
* More than two-thirds of respondents (68 percent) say that now is a good time to buy a home.
* Job insecurity and the lack of jobs continue to be the primary obstacle to home ownership and market recovery.
* Respondents see the recession and job losses as the main reasons for the foreclosure problem, a shift from last year when they were more likely to blame homeowners who bought homes they could not afford.
* A majority of renters say that owning a home at some point in the futureis either one of their highest priorities (39 percent) or a moderate priority (24 percent). Just 21 percent of renters say that owning a home is not a priority at all.
* Frustration with banks is up: now a majority worry that banks have made it too hard to qualify for a home mortgage loan.
* 51 percent of respondents say foreclosures remain a big or moderate problem in their area. While there has been a significant drop in the percentage of those surveyed who say foreclosures have increased, 51 percent say that the rate of foreclosures is about the same as it was last year.
* Most of those surveyed say that it is harder to sell a home in their neighborhood than it was a year ago.
* Looking forward, 70 percent expect real estate sales in their neighborhood to remain about the same over the next few months. A nearly identical number (69 percent), also expect home values to remain the same.
* Nearly one-quarter (23 percent) are now very concerned about the number of homes and condos for sale in their area—a number that is up 7 points from last year.
* Most respondents are more concerned about the drop in home values than they are about home costs being too high. Still, cost remains the significant barrier to many who would otherwise like to buy a home.
http:www.oreinternationalrealty.com
The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in eight years of sampling, with 70 percent of Americans saying that job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership. The telephone survey of 1,209 urban and suburban adults in the top 25 metropolitan statistical areas was conducted for NAR by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program.
Some key results:
* Americans continue to believe that buying a home is a good financial decision (77 percent believe strongly or not so strongly, 68 percent strongly so).
* More than two-thirds of respondents (68 percent) say that now is a good time to buy a home.
* Job insecurity and the lack of jobs continue to be the primary obstacle to home ownership and market recovery.
* Respondents see the recession and job losses as the main reasons for the foreclosure problem, a shift from last year when they were more likely to blame homeowners who bought homes they could not afford.
* A majority of renters say that owning a home at some point in the futureis either one of their highest priorities (39 percent) or a moderate priority (24 percent). Just 21 percent of renters say that owning a home is not a priority at all.
* Frustration with banks is up: now a majority worry that banks have made it too hard to qualify for a home mortgage loan.
* 51 percent of respondents say foreclosures remain a big or moderate problem in their area. While there has been a significant drop in the percentage of those surveyed who say foreclosures have increased, 51 percent say that the rate of foreclosures is about the same as it was last year.
* Most of those surveyed say that it is harder to sell a home in their neighborhood than it was a year ago.
* Looking forward, 70 percent expect real estate sales in their neighborhood to remain about the same over the next few months. A nearly identical number (69 percent), also expect home values to remain the same.
* Nearly one-quarter (23 percent) are now very concerned about the number of homes and condos for sale in their area—a number that is up 7 points from last year.
* Most respondents are more concerned about the drop in home values than they are about home costs being too high. Still, cost remains the significant barrier to many who would otherwise like to buy a home.
http:www.oreinternationalrealty.com
Sunday, October 17, 2010
Improve Your Credit Score Before Searching for a Home
RISMEDIA, October 16, 2010-By Paige Tepping -Many prospective homeowners find out the hard way the importance of a good credit score when they apply for a home mortgage, especially after the subprime loan crisis. If you are considering buying a home in the near future, it is a good idea to give your credit score a check-up and then take positive steps to improve your credit score if you find problems. Ideally, it is best to begin working on improving your credit score at least six months before you plan to start shopping for a home.
According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.
The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.
By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.
Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.
If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.
Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.
After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.
It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.
By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.
http://www.oreinternationalrealty.com
According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.
The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.
By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.
Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.
If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.
Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.
After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.
It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.
By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.
http://www.oreinternationalrealty.com
Gen X Faces Unique Challenge in Gen Y
RISMEDIA, October 16, 2010--(MCT)-By Cindy Krischer Goodman-I marvel at young reporters who turn stories on deadline while sipping a cappuccino in Starbucks. The concept of working from anywhere at any time is second nature, something they never even question. It's an option my generation never had when we came on the work scene, when laptops, Wi-Fi and compassionate bosses were scarce.
Now, here we are, the 30 and 40-year-olds who make up Generation X, managing the twenty-somethings as their supervisors and mentors and trying to figure out why they have such a different attitude about work and what to do about it. Most of us haven't really thought about the important role we play in molding this new generation of workers.
I wrote recently about how the recession has been a giant slice of humble pie for younger workers, turning bold and brash Generation Y into Generation Comply.
From their first entry into the workplace a few years ago, Gen Y, smart and brash, has bumped up against corporate cultures steeped in the chained-to-your-desk mentality. Nationally, advocacy groups are putting up a good fight to coax workplaces to be more accommodating about where and when work gets done. The White House even launched its own push for flexibility. But Gen Y consistently says their biggest obstacle is managers who can't let go of the need to exercise authority over employees — in person.
Jaret Davis, a 35-year-old partner at the law firm Greenberg Traurig, considers himself "a bridge between two extremes." He's smack in the middle of the younger attorneys who want flexibility and work life balance, and the older lawyers in top management who want to preserve a corporate culture where tradition and face time is valued.
"The Gen Y perspective is not foreign to my generation," Davis said. "We came with the mindset to work hard, do what it takes, but we're open to Gen Y who looks at it as, 'How can I work hard and master my craft while not sacrificing my life?' "
Davis says he's working with young lawyers at his firm to figure out how to tap into innovations that would give millennials flexibility and still get the work done.
A few months ago, while working on a Father's Day column, I learned that new fathers who work in corporate America are using informal flexibility at work, rather than the formal flexibility many mothers use. They said their immediate managers (Gen Xers) as opposed to top executives (boomers and matures), were from dual-career households, too, and were quite supportive of the work life challenges they face. That was the first time I saw my generation as a bridge.
Like Davis, Karen Gilmartin, a Miami Lakes workers compensation attorney, understands her role in modernizing the workplace.
The young lawyers need Gen Xers to teach them that they can have success but they have to earn it, she said. Gilmartin, 49, leads by example, showing her young female associates that it's possible to be a respected law partner and a mom. "I'm here at 7 a.m. but I might cut out early to go to my child's hockey game."
Clearly, we were the pioneers who suffered the perils of flex time and allowed personal schedules to take us off our career paths. But maybe as pioneers we can help the next generation build on our experience and figure out how to do it even better, how to use a flexible work arrangement without it taking someone off the path to the top.
Behind the millennials come an even different bunch, already being referred to as the iGeneration. As a mother of a 13- and 14-year-old, I see how different they are from the twenty-somethings. This generation would rather text than talk. They want to be constantly connected, available and multitasking in a way even the millennials don't quite get. They don't remember a time without the constant connectivity to the world via sophisticated handheld devices. In a decade, when they enter the workplace, I bet they won't be able to fathom why they can't split early to go to a baseball game when clearly they can handle any client need from their smart phones.
It's telling that even in this time of high unemployment, millennials don't feel compelled to take any old job offered to them. According to an annual survey by the National Association of Colleges and Employers, 41 percent of college grads who were offered jobs turned them down and 57 percent believe another, better job opportunity will come up in just a few months.
Meanwhile, they are comfortable with economic uncertainty and content to live with their parents and hold out for that perfect opportunity or start their own businesses on a shoestring. "They are still searching for what is purposeful," explains Tamara Bell, founder and editor-in-chief of Y Gen Out Loud, an online news organization.
Gen Y is telling us they are not going to put up with unappreciative workplaces and arrogant bosses, particularly after the economy recovers. I see my generation as smart enough to realize that companies need young workers to keep them relevant in the digital age. We need their perspective, energy and know-how. We are the current and future bosses who will try to hang on to Gen Y workers, incorporate their ideas and work styles and make sure they advance. >From my view, we're up to the task.
(c) 2010, The Miami Herald.
Distributed by McClatchy-Tribune Information Services.
http://www.oreinternationalrealty.com
Now, here we are, the 30 and 40-year-olds who make up Generation X, managing the twenty-somethings as their supervisors and mentors and trying to figure out why they have such a different attitude about work and what to do about it. Most of us haven't really thought about the important role we play in molding this new generation of workers.
I wrote recently about how the recession has been a giant slice of humble pie for younger workers, turning bold and brash Generation Y into Generation Comply.
From their first entry into the workplace a few years ago, Gen Y, smart and brash, has bumped up against corporate cultures steeped in the chained-to-your-desk mentality. Nationally, advocacy groups are putting up a good fight to coax workplaces to be more accommodating about where and when work gets done. The White House even launched its own push for flexibility. But Gen Y consistently says their biggest obstacle is managers who can't let go of the need to exercise authority over employees — in person.
Jaret Davis, a 35-year-old partner at the law firm Greenberg Traurig, considers himself "a bridge between two extremes." He's smack in the middle of the younger attorneys who want flexibility and work life balance, and the older lawyers in top management who want to preserve a corporate culture where tradition and face time is valued.
"The Gen Y perspective is not foreign to my generation," Davis said. "We came with the mindset to work hard, do what it takes, but we're open to Gen Y who looks at it as, 'How can I work hard and master my craft while not sacrificing my life?' "
Davis says he's working with young lawyers at his firm to figure out how to tap into innovations that would give millennials flexibility and still get the work done.
A few months ago, while working on a Father's Day column, I learned that new fathers who work in corporate America are using informal flexibility at work, rather than the formal flexibility many mothers use. They said their immediate managers (Gen Xers) as opposed to top executives (boomers and matures), were from dual-career households, too, and were quite supportive of the work life challenges they face. That was the first time I saw my generation as a bridge.
Like Davis, Karen Gilmartin, a Miami Lakes workers compensation attorney, understands her role in modernizing the workplace.
The young lawyers need Gen Xers to teach them that they can have success but they have to earn it, she said. Gilmartin, 49, leads by example, showing her young female associates that it's possible to be a respected law partner and a mom. "I'm here at 7 a.m. but I might cut out early to go to my child's hockey game."
Clearly, we were the pioneers who suffered the perils of flex time and allowed personal schedules to take us off our career paths. But maybe as pioneers we can help the next generation build on our experience and figure out how to do it even better, how to use a flexible work arrangement without it taking someone off the path to the top.
Behind the millennials come an even different bunch, already being referred to as the iGeneration. As a mother of a 13- and 14-year-old, I see how different they are from the twenty-somethings. This generation would rather text than talk. They want to be constantly connected, available and multitasking in a way even the millennials don't quite get. They don't remember a time without the constant connectivity to the world via sophisticated handheld devices. In a decade, when they enter the workplace, I bet they won't be able to fathom why they can't split early to go to a baseball game when clearly they can handle any client need from their smart phones.
It's telling that even in this time of high unemployment, millennials don't feel compelled to take any old job offered to them. According to an annual survey by the National Association of Colleges and Employers, 41 percent of college grads who were offered jobs turned them down and 57 percent believe another, better job opportunity will come up in just a few months.
Meanwhile, they are comfortable with economic uncertainty and content to live with their parents and hold out for that perfect opportunity or start their own businesses on a shoestring. "They are still searching for what is purposeful," explains Tamara Bell, founder and editor-in-chief of Y Gen Out Loud, an online news organization.
Gen Y is telling us they are not going to put up with unappreciative workplaces and arrogant bosses, particularly after the economy recovers. I see my generation as smart enough to realize that companies need young workers to keep them relevant in the digital age. We need their perspective, energy and know-how. We are the current and future bosses who will try to hang on to Gen Y workers, incorporate their ideas and work styles and make sure they advance. >From my view, we're up to the task.
(c) 2010, The Miami Herald.
Distributed by McClatchy-Tribune Information Services.
http://www.oreinternationalrealty.com
Friday, October 15, 2010
Survey: Buyer slowdown tied to economy
EAGAN, Minn. – Oct. 14, 2010 – Nearly two-thirds (63 percent) of Americans say the current economic situation is making them less likely to buy a house, according to a new national survey by FindLaw.com.
Despite record-low mortgage rates and an abundance of home listings, only 8 percent of people say the current economic situation makes them more likely to buy a house. About a quarter of respondents (28 percent) say they are neither more likely nor less likely to buy a house because of the economy.
The current economy is impacting lower-income individuals and families most. People with annual incomes less than $50,000 were significantly less inclined to buy a house than people with higher incomes.
“The current economic situation has greatly changed the dynamics of the housing market,” said Stephanie Rahlfs, an attorney and editor with FindLaw.com. “Although mortgage rates are near record lows, stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures. Together, these factors are causing many people to shy away from the idea of buying a house. Buying a home, selling a home and owning a home are all becoming more complicated, and it’s important to know the ins and outs of contracts, finances and your rights as a buyer, seller or owner.”
The FindLaw.com survey was conducted using a demographically balanced telephone survey of 1,000 American adults and has a margin of error of plus-or-minus 3 percent.
© 2010 Florida Realtors®
http://www.oreinternationalrealty.com
Despite record-low mortgage rates and an abundance of home listings, only 8 percent of people say the current economic situation makes them more likely to buy a house. About a quarter of respondents (28 percent) say they are neither more likely nor less likely to buy a house because of the economy.
The current economy is impacting lower-income individuals and families most. People with annual incomes less than $50,000 were significantly less inclined to buy a house than people with higher incomes.
“The current economic situation has greatly changed the dynamics of the housing market,” said Stephanie Rahlfs, an attorney and editor with FindLaw.com. “Although mortgage rates are near record lows, stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures. Together, these factors are causing many people to shy away from the idea of buying a house. Buying a home, selling a home and owning a home are all becoming more complicated, and it’s important to know the ins and outs of contracts, finances and your rights as a buyer, seller or owner.”
The FindLaw.com survey was conducted using a demographically balanced telephone survey of 1,000 American adults and has a margin of error of plus-or-minus 3 percent.
© 2010 Florida Realtors®
http://www.oreinternationalrealty.com
Real estate should have done more in crisis
WASHINGTON – Oct. 14, 2010 – The real estate industry must accept its “proper share of the blame” leading to the global economic recession and the housing and commercial property decline, says Urban Land Institute (ULI) Chairman Jeremy Newsum.
“There were many keys to this bomb, and we held one,” said Newsum at ULI’s 2010 Fall Meeting in Washington. “The fact is, we (real estate industry professionals) lost control of the agenda. Real estate is about buildings and the people who occupy them, collectively forming an urban community,” he said. “Real estate is not primarily about money, and we should not have allowed real estate to become just another playground for financial engineers.”
According to Newsum, the “new normal” for the industry is one that is focused on the operators – the creators and owners of real estate who view their businesses as a long-term investment. The “old abnormal” was real estate being the “puppet of finance,” he said, with real estate viewed more as an investment opportunity than a building for occupation.
During the boom leading to the bust, it became increasingly common for large financial institutions to hold direct portfolios of real estate – a mistake, Newsum said, because those managing the portfolios are more apt to give priority to “collecting the rent checks” than analyzing real estate fundamentals or ensuring the well-being of building users.
Newsum pointed to closed-ended real estate funds (generally unlisted private real estate funds with a fixed fund size and a limited term, typically 5-10 years) as being “inherently unstable,” in that they “blithely ignore” the long-term nature of the underlying assets. For the industry to restabilize, such opportunity funds should “always be a sideshow rather than the main event,” and not become the industry norm for how and when properties are bought and sold, he said. “The era when funds predominated is over. I want to see many more new property companies,” Newsum said.
He pointed to the Hong Kong real estate industry – which is now dominated by companies focused on the long term – as an example of what the industry should strive for in the United States and Europe.
A company-specific example: Almacantar in London, an investment and development firm formed by two executives from the Almacantar fund. “They have spotted the future,” Newsum said. Another example: New York City-based Vornado Realty Trust, a company Newsum said “saw the light and came over to the operating side,” and which now owns and manages more than 100 million square feet of commercial real estate in the United States. “Vornado is not a ‘vehicle.’ It’s a business with a mission,” Newsum said.
To attract the best and brightest to the real estate industry, Newsum suggested that seasoned professionals must put more effort into “selling the slow buck” and emphasizing the value of long-term thinking to the next generation of younger practitioners, whose penchant for instant gratification will not serve them well in real estate.
“No matter how badly you want to do something, and you think you have only one chance to do it, that is rarely true. So, being patient and having the ability to stay focused on the long term are very important,” he said. “Understanding timing and time scales is absolutely critical (to being successful) in land use. The business of community building is a business that spans decades. Each of us is adding something to what is ultimately a continuous process.”
One of the most important real estate lessons from the recession, Newsum said, is the near-certain formula for failure caused by over-extension. “In the future, real estate business leaders and shareholders must take more responsibility for the way their businesses are financed. The bust will come again, and just as before, those fixated by the short term will have too much leverage and will fail.”
http://www.oreinternationalrealty.com
“There were many keys to this bomb, and we held one,” said Newsum at ULI’s 2010 Fall Meeting in Washington. “The fact is, we (real estate industry professionals) lost control of the agenda. Real estate is about buildings and the people who occupy them, collectively forming an urban community,” he said. “Real estate is not primarily about money, and we should not have allowed real estate to become just another playground for financial engineers.”
According to Newsum, the “new normal” for the industry is one that is focused on the operators – the creators and owners of real estate who view their businesses as a long-term investment. The “old abnormal” was real estate being the “puppet of finance,” he said, with real estate viewed more as an investment opportunity than a building for occupation.
During the boom leading to the bust, it became increasingly common for large financial institutions to hold direct portfolios of real estate – a mistake, Newsum said, because those managing the portfolios are more apt to give priority to “collecting the rent checks” than analyzing real estate fundamentals or ensuring the well-being of building users.
Newsum pointed to closed-ended real estate funds (generally unlisted private real estate funds with a fixed fund size and a limited term, typically 5-10 years) as being “inherently unstable,” in that they “blithely ignore” the long-term nature of the underlying assets. For the industry to restabilize, such opportunity funds should “always be a sideshow rather than the main event,” and not become the industry norm for how and when properties are bought and sold, he said. “The era when funds predominated is over. I want to see many more new property companies,” Newsum said.
He pointed to the Hong Kong real estate industry – which is now dominated by companies focused on the long term – as an example of what the industry should strive for in the United States and Europe.
A company-specific example: Almacantar in London, an investment and development firm formed by two executives from the Almacantar fund. “They have spotted the future,” Newsum said. Another example: New York City-based Vornado Realty Trust, a company Newsum said “saw the light and came over to the operating side,” and which now owns and manages more than 100 million square feet of commercial real estate in the United States. “Vornado is not a ‘vehicle.’ It’s a business with a mission,” Newsum said.
To attract the best and brightest to the real estate industry, Newsum suggested that seasoned professionals must put more effort into “selling the slow buck” and emphasizing the value of long-term thinking to the next generation of younger practitioners, whose penchant for instant gratification will not serve them well in real estate.
“No matter how badly you want to do something, and you think you have only one chance to do it, that is rarely true. So, being patient and having the ability to stay focused on the long term are very important,” he said. “Understanding timing and time scales is absolutely critical (to being successful) in land use. The business of community building is a business that spans decades. Each of us is adding something to what is ultimately a continuous process.”
One of the most important real estate lessons from the recession, Newsum said, is the near-certain formula for failure caused by over-extension. “In the future, real estate business leaders and shareholders must take more responsibility for the way their businesses are financed. The bust will come again, and just as before, those fixated by the short term will have too much leverage and will fail.”
http://www.oreinternationalrealty.com
Home repos soar to record highs in September
WASHINGTON – Oct. 14, 2010 – More than 13,200 Floridians lost their homes to the banks in September, a record number expected to plummet next month with lender freezes on foreclosure sales, according to real estate analysis firm RealtyTrac.
The Irvine, Calif.-based company, which releases its September foreclosure report today, predicts bank repossessions – the last phase in the foreclosure process – will fall in October as some of the nation’s largest lenders halt foreclosure evictions and sales.
While a reprieve for delinquent homeowners, RealtyTrac experts say the delay in the foreclosure process could hurt Florida’s economy. More than 24,200 notices of foreclosure sale were issued in September to Florida properties – possibly vacant or abandoned – that are now in limbo.
“This adds a whole new cloud of uncertainty to the housing market,” said RealtyTrac spokesman Daren Blomquist. “These properties represent a big chunk of what’s being sold in Florida.”
According to RealtyTrac, 45 percent of all home sales in September were either short sales or sales of bank-owned homes.
New foreclosure filings were down overall in Florida compared with September last year, with 22,071 homes getting their first notice. That’s a 31 percent decrease from 2009.
Palm Beach County saw a 42 percent drop in initial foreclosure filings compared with last year with 1,175 homes receiving their first notice.
Despite the decreases, Florida still posted the nation’s second-highest state foreclosure rate in September with one in every 148 homes receiving a foreclosure filing.
Nevada ranked first with one in 69 homes receiving a foreclosure filing.
Copyright © 2010 The Palm Beach Post, Fla., Kimberly Miller. Distributed by McClatchy-Tribune Information Services.
http://www.oreinternationalrealty.com
The Irvine, Calif.-based company, which releases its September foreclosure report today, predicts bank repossessions – the last phase in the foreclosure process – will fall in October as some of the nation’s largest lenders halt foreclosure evictions and sales.
While a reprieve for delinquent homeowners, RealtyTrac experts say the delay in the foreclosure process could hurt Florida’s economy. More than 24,200 notices of foreclosure sale were issued in September to Florida properties – possibly vacant or abandoned – that are now in limbo.
“This adds a whole new cloud of uncertainty to the housing market,” said RealtyTrac spokesman Daren Blomquist. “These properties represent a big chunk of what’s being sold in Florida.”
According to RealtyTrac, 45 percent of all home sales in September were either short sales or sales of bank-owned homes.
New foreclosure filings were down overall in Florida compared with September last year, with 22,071 homes getting their first notice. That’s a 31 percent decrease from 2009.
Palm Beach County saw a 42 percent drop in initial foreclosure filings compared with last year with 1,175 homes receiving their first notice.
Despite the decreases, Florida still posted the nation’s second-highest state foreclosure rate in September with one in every 148 homes receiving a foreclosure filing.
Nevada ranked first with one in 69 homes receiving a foreclosure filing.
Copyright © 2010 The Palm Beach Post, Fla., Kimberly Miller. Distributed by McClatchy-Tribune Information Services.
http://www.oreinternationalrealty.com
States’ probe of foreclosures could force reforms
WASHINGTON – Oct. 14, 2010 – A joint investigation by every state and the District of Columbia could force mortgage companies to settle allegations that they used flawed documents to foreclose on hundreds of thousands of homeowners.
It could take months, at least, for any settlement to be reached. But legal experts say lenders could be forced to accept an independent monitor to ensure they follow state foreclosure laws. The banks could also be subject to financial penalties and be forced to pay some people whose foreclosures were improperly handled.
For banks, “the most efficient way for them to get out from under this is to settle across the board,” said Kathleen Engel, a law professor at Suffolk University in Boston.
Employees of several major lenders have acknowledged in depositions that they signed thousands of foreclosure documents without reading them as required by state laws.
“This is not simply about a glitch in paperwork,” Iowa Attorney General Tom Miller, who’s leading the probe announced Wednesday, said in a statement. “It’s also about some companies violating the law and many people losing their homes.”
At a news conference, Miller said the states might be open to alternatives to financial penalties for the banks. They might, for example, agree instead to have lenders step up their efforts to help people reduce their loan payments so they can avoid foreclosure.
The document problems could prolong the housing downturn if many homebuyers become unwilling to purchase foreclosed homes. But for a few months anyway, the problems could help prop up prices, because fewer low-priced foreclosed homes will be for sale.
Analysts don’t expect many people who lost homes to foreclosure to recover them.
Lenders seized more U.S. homes this summer than in any three-month stretch since the housing market began to bust in 2006, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service. But many of the foreclosures may be challenged in court because of the allegations of flawed documents.
Banks have seized more than 816,000 homes through the first nine months of the year. They had been on pace to seize 1.2 million by the end of 2010. But fewer are expected now that several major lenders have begun to respond to pressure from state and federal officials. They have done so by suspending some foreclosures and sales of repossessed homes until they can sort out the foreclosure-documents mess.
JPMorgan Chase & Co. said Wednesday it would extend its review of its foreclosure cases to 41 states - doubling the number of its cases under review to 115,000. JPMorgan had previously said it was halting foreclosures in the 23 states where foreclosures must be approved by a judge.
This week, GMAC Mortgage, a unit of Ally Financial Inc., said it had hired legal and accounting firms to review its foreclosure procedures in all 50 states. GMAC has halted some foreclosures in 23 states. Bank of America has done so in all 50.
And Wells Fargo & Co. has said it would review pending foreclosures for potential defects. Wells says it’s discovered no problems.
In their announcement Wednesday, the state officials said they would review evidence that documents were signed by mortgage company employees who didn’t verify the information in them. They also said many documents appeared to have been signed without a notary public witnessing that signature – a violation of state law.
Attorneys general have taken the lead in responding to the revelations. State officials, not the federal government, enforce foreclosure laws, which vary by state.
Not all attorneys general have identical powers to investigate. Without clear evidence of a crime, they usually file lawsuits to force businesses to stop actions or to pay damages to wronged consumers.
The filing of false documents in court can be prosecuted as perjury. Any lawyers involved in improper foreclosures could suffer sanctions or lose their law licenses for unethical activity.
As part of their probe, state officials will be able to issue subpoenas to extract potentially incriminating documents from the industry. Such evidence could be used in lawsuits or to force settlements with lenders.
A key question is whether state investigators can persuade bank employees to divulge some of the industry’s secrets, said Ray Brescia, an Albany Law School professor who has tracked the mortgage crisis. Some mortgage company workers could have a powerful incentive to do so rather than face criminal charges, he noted.
“It’s quite possible that there will be insiders who come forward to reveal the inner workings of these “boiler room” foreclosure mills, which likely won’t be good for the banks,” Brescia said.
A lawsuit that Ohio Attorney General Richard Cordray filed this month against GMAC Mortgage and Ally Financial could preview things to come around the country.
Cordray’s lawsuit seeks to halt potentially illegal foreclosure practices. It also asks that a judge stop sales of any foreclosed homes involving paperwork filed by a GMAC employee who signed hundreds of faulty documents. And it aims to toss out foreclosure judgments on homes that haven’t yet sold.
The Ohio lawsuit also seeks damages for consumers and civil penalties of $25,000 for each separate violation. If similar cases were brought in all 50 states, it could total billions of dollars in damages and fines for lenders and others involved in foreclosures.
The allegations raise the possibility that foreclosure proceedings nationwide could be subject to legal challenge. More than 2.5 million homes have been lost to foreclosure since the recession started in December 2007, according to RealtyTrac Inc.
Kendall Coffey, a former U.S. attorney in Miami, said that fixing faulty or fraudulent mortgage paperwork can be relatively easy if a case is ongoing. But it’s far more complex if a foreclosure has been completed and the home already sold.
There also are limits to what officials in some states can do.
For example, in Florida, an epicenter for foreclosure cases, Attorney General Bill McCollum suffered a setback last week in a probe into practices by four law firms that handled foreclosures. A judge ruled that McCollum had no authority to subpoena records from one firm. It said the state’s bar association was the proper forum to decide whether to sanction the firm.
A different Florida firm involved in that investigation, the Law Offices of David J. Stern, is seeking a similar ruling. Government-controlled mortgage buyers Fannie Mae and Freddie Mac have stopped referring foreclosures to Stern’s firm while they review the firm’s filings.
Also Wednesday, federal regulators said all mortgage companies that work with Fannie and Freddie will have to review foreclosure documents and refile them if they spot problems. That will affect most of the industry, because Fannie and Freddie own or guarantee about half the nation’s home loans.
In cases where no problems turn up, foreclosures “should proceed without delay,” the Federal Housing Finance Agency, the agency that regulates Fannie and Freddie, said.
Copyright © 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Anderson reported from Miami.
http://www.oreinternationalrealty.com
It could take months, at least, for any settlement to be reached. But legal experts say lenders could be forced to accept an independent monitor to ensure they follow state foreclosure laws. The banks could also be subject to financial penalties and be forced to pay some people whose foreclosures were improperly handled.
For banks, “the most efficient way for them to get out from under this is to settle across the board,” said Kathleen Engel, a law professor at Suffolk University in Boston.
Employees of several major lenders have acknowledged in depositions that they signed thousands of foreclosure documents without reading them as required by state laws.
“This is not simply about a glitch in paperwork,” Iowa Attorney General Tom Miller, who’s leading the probe announced Wednesday, said in a statement. “It’s also about some companies violating the law and many people losing their homes.”
At a news conference, Miller said the states might be open to alternatives to financial penalties for the banks. They might, for example, agree instead to have lenders step up their efforts to help people reduce their loan payments so they can avoid foreclosure.
The document problems could prolong the housing downturn if many homebuyers become unwilling to purchase foreclosed homes. But for a few months anyway, the problems could help prop up prices, because fewer low-priced foreclosed homes will be for sale.
Analysts don’t expect many people who lost homes to foreclosure to recover them.
Lenders seized more U.S. homes this summer than in any three-month stretch since the housing market began to bust in 2006, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service. But many of the foreclosures may be challenged in court because of the allegations of flawed documents.
Banks have seized more than 816,000 homes through the first nine months of the year. They had been on pace to seize 1.2 million by the end of 2010. But fewer are expected now that several major lenders have begun to respond to pressure from state and federal officials. They have done so by suspending some foreclosures and sales of repossessed homes until they can sort out the foreclosure-documents mess.
JPMorgan Chase & Co. said Wednesday it would extend its review of its foreclosure cases to 41 states - doubling the number of its cases under review to 115,000. JPMorgan had previously said it was halting foreclosures in the 23 states where foreclosures must be approved by a judge.
This week, GMAC Mortgage, a unit of Ally Financial Inc., said it had hired legal and accounting firms to review its foreclosure procedures in all 50 states. GMAC has halted some foreclosures in 23 states. Bank of America has done so in all 50.
And Wells Fargo & Co. has said it would review pending foreclosures for potential defects. Wells says it’s discovered no problems.
In their announcement Wednesday, the state officials said they would review evidence that documents were signed by mortgage company employees who didn’t verify the information in them. They also said many documents appeared to have been signed without a notary public witnessing that signature – a violation of state law.
Attorneys general have taken the lead in responding to the revelations. State officials, not the federal government, enforce foreclosure laws, which vary by state.
Not all attorneys general have identical powers to investigate. Without clear evidence of a crime, they usually file lawsuits to force businesses to stop actions or to pay damages to wronged consumers.
The filing of false documents in court can be prosecuted as perjury. Any lawyers involved in improper foreclosures could suffer sanctions or lose their law licenses for unethical activity.
As part of their probe, state officials will be able to issue subpoenas to extract potentially incriminating documents from the industry. Such evidence could be used in lawsuits or to force settlements with lenders.
A key question is whether state investigators can persuade bank employees to divulge some of the industry’s secrets, said Ray Brescia, an Albany Law School professor who has tracked the mortgage crisis. Some mortgage company workers could have a powerful incentive to do so rather than face criminal charges, he noted.
“It’s quite possible that there will be insiders who come forward to reveal the inner workings of these “boiler room” foreclosure mills, which likely won’t be good for the banks,” Brescia said.
A lawsuit that Ohio Attorney General Richard Cordray filed this month against GMAC Mortgage and Ally Financial could preview things to come around the country.
Cordray’s lawsuit seeks to halt potentially illegal foreclosure practices. It also asks that a judge stop sales of any foreclosed homes involving paperwork filed by a GMAC employee who signed hundreds of faulty documents. And it aims to toss out foreclosure judgments on homes that haven’t yet sold.
The Ohio lawsuit also seeks damages for consumers and civil penalties of $25,000 for each separate violation. If similar cases were brought in all 50 states, it could total billions of dollars in damages and fines for lenders and others involved in foreclosures.
The allegations raise the possibility that foreclosure proceedings nationwide could be subject to legal challenge. More than 2.5 million homes have been lost to foreclosure since the recession started in December 2007, according to RealtyTrac Inc.
Kendall Coffey, a former U.S. attorney in Miami, said that fixing faulty or fraudulent mortgage paperwork can be relatively easy if a case is ongoing. But it’s far more complex if a foreclosure has been completed and the home already sold.
There also are limits to what officials in some states can do.
For example, in Florida, an epicenter for foreclosure cases, Attorney General Bill McCollum suffered a setback last week in a probe into practices by four law firms that handled foreclosures. A judge ruled that McCollum had no authority to subpoena records from one firm. It said the state’s bar association was the proper forum to decide whether to sanction the firm.
A different Florida firm involved in that investigation, the Law Offices of David J. Stern, is seeking a similar ruling. Government-controlled mortgage buyers Fannie Mae and Freddie Mac have stopped referring foreclosures to Stern’s firm while they review the firm’s filings.
Also Wednesday, federal regulators said all mortgage companies that work with Fannie and Freddie will have to review foreclosure documents and refile them if they spot problems. That will affect most of the industry, because Fannie and Freddie own or guarantee about half the nation’s home loans.
In cases where no problems turn up, foreclosures “should proceed without delay,” the Federal Housing Finance Agency, the agency that regulates Fannie and Freddie, said.
Copyright © 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Anderson reported from Miami.
http://www.oreinternationalrealty.com
Wednesday, October 13, 2010
Firm battles state probe
The Law Offices of David J. Stern took its fight against the attorney general's investigation to court on Tuesday, moving to quash the state's subpoena.
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
The battle between Attorney General Bill McCollum and four law firms accused of shoddy foreclosure practices continued in Broward County Court on Tuesday, with the Law Offices of David J. Stern challenging the state's subpoena.
Jeffrey Tew, legal counsel for Stern's Plantation-based firm, argued that the attorney general's office does not have jurisdiction to investigate law firms under the Federal Deceptive and Unfair Trade Practices Act, or FDUTPA.
That statute -- the basis of McCollum's case -- only applies in cases where goods and services are being transferred between the accused and the alleged victim, Tew said.
``The alleged quote-unquote `victims' in this case are the borrowers,'' said Tew, presenting a motion to ``quash'' the subpoena. ``FDUTPA requires that the law firm be exchanging goods and services of monetary value with the borrowers.''
Tew said that the law firm was exchanging its services with the banks, not the borrowers.
The judge, Eileen O'Connor, said she would rule in a couple of days.
The case is crucial to the state's investigation, because it comes on the heels of another ruling in which a Palm Beach judge quashed the state's subpoena of the Shapiro & Fishman law firm. That judge said the Florida Bar and the Supreme Court have jurisdiction to sanction lawyers, not the attorney general.
O'Connor indicated that she would judge independently.
``That's not your better argument,'' she told Tew after he referenced the Palm Beach case.
Lawyers for the attorney general's office challenged Tew's tactic, arguing that the state had full jurisdiction to investigate the law firm through its role as a consumer advocate.
``We are authorized as a consumer protection agency to [investigate], and that's what we're doing,'' said Theresa Edwards, counsel for the attorney general's office.
Presenting one of the lead investigators on the case, the state attorneys made the case that the probe is already under way, and serious allegations of fraud are being substantiated by sworn testimony. It has received more than 200 complaints against the firms under investigation.
http://www.oreinternationalrealty.com
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
The battle between Attorney General Bill McCollum and four law firms accused of shoddy foreclosure practices continued in Broward County Court on Tuesday, with the Law Offices of David J. Stern challenging the state's subpoena.
Jeffrey Tew, legal counsel for Stern's Plantation-based firm, argued that the attorney general's office does not have jurisdiction to investigate law firms under the Federal Deceptive and Unfair Trade Practices Act, or FDUTPA.
That statute -- the basis of McCollum's case -- only applies in cases where goods and services are being transferred between the accused and the alleged victim, Tew said.
``The alleged quote-unquote `victims' in this case are the borrowers,'' said Tew, presenting a motion to ``quash'' the subpoena. ``FDUTPA requires that the law firm be exchanging goods and services of monetary value with the borrowers.''
Tew said that the law firm was exchanging its services with the banks, not the borrowers.
The judge, Eileen O'Connor, said she would rule in a couple of days.
The case is crucial to the state's investigation, because it comes on the heels of another ruling in which a Palm Beach judge quashed the state's subpoena of the Shapiro & Fishman law firm. That judge said the Florida Bar and the Supreme Court have jurisdiction to sanction lawyers, not the attorney general.
O'Connor indicated that she would judge independently.
``That's not your better argument,'' she told Tew after he referenced the Palm Beach case.
Lawyers for the attorney general's office challenged Tew's tactic, arguing that the state had full jurisdiction to investigate the law firm through its role as a consumer advocate.
``We are authorized as a consumer protection agency to [investigate], and that's what we're doing,'' said Theresa Edwards, counsel for the attorney general's office.
Presenting one of the lead investigators on the case, the state attorneys made the case that the probe is already under way, and serious allegations of fraud are being substantiated by sworn testimony. It has received more than 200 complaints against the firms under investigation.
http://www.oreinternationalrealty.com
Banks Foreclosing on Active Military Members—Part 1
by Amy Ransdell ~ Short Sale Daily News
Just when you thought you had heard it all in terms of foreclosure horror stories, we have a new area of the American population being affected. Active members of the military—and often those personnel stationed overseas fighting our many battles.
Foreclosures in cities near active military bases are increasing at a rates of nearly four times the national average, according to RealtyTrac data. In Columbia, South Carolina, for example, where the Army trains members specifically for combat in
Iraq and Afhganistan, properties in some part of the foreclosure process skyrocketed 492 % from the previous year.
The stats are nearly as bad in Norfolk, Virginia, location of the Navy’s largest base. Here, the increase is 217 % over a year ago.
Unfortunately, current law makes it difficult for those currently in military service or even veterans to refinance higher cost mortgages into VA-guaranteed notes. So basically, you can risk your life for your country, we just can’t seem to have adequate or fair laws in place to guarantee your family will have a place to call home while you’re stationed thousands of miles away.
“Conveniently,” neither the Department of Veterans Affairs nor the Pentagon track the number of military families dealing with foreclosure. That way, you don’t have to fix something you don’t even know is broken.
For those military members with VA loans, there are at least a few protections in place. However, with the onslaught of subprime mortgages during the Bush administration, military personnel were able to get lower initial rates and easier terms and qualifications than if they had gone the VA loan route. Consequently, the number of people taking out VA loans has, in recent years, dropped to its lowest rate in 12 years.
Stay tuned in Part 2 when we talk about some of the proposed legislation in Washington to help stem this disgraceful practice of foreclosing on active military members and how real estate agents can take action on this as well.
http://www.oreinternationalrealty.com
Just when you thought you had heard it all in terms of foreclosure horror stories, we have a new area of the American population being affected. Active members of the military—and often those personnel stationed overseas fighting our many battles.
Foreclosures in cities near active military bases are increasing at a rates of nearly four times the national average, according to RealtyTrac data. In Columbia, South Carolina, for example, where the Army trains members specifically for combat in
Iraq and Afhganistan, properties in some part of the foreclosure process skyrocketed 492 % from the previous year.
The stats are nearly as bad in Norfolk, Virginia, location of the Navy’s largest base. Here, the increase is 217 % over a year ago.
Unfortunately, current law makes it difficult for those currently in military service or even veterans to refinance higher cost mortgages into VA-guaranteed notes. So basically, you can risk your life for your country, we just can’t seem to have adequate or fair laws in place to guarantee your family will have a place to call home while you’re stationed thousands of miles away.
“Conveniently,” neither the Department of Veterans Affairs nor the Pentagon track the number of military families dealing with foreclosure. That way, you don’t have to fix something you don’t even know is broken.
For those military members with VA loans, there are at least a few protections in place. However, with the onslaught of subprime mortgages during the Bush administration, military personnel were able to get lower initial rates and easier terms and qualifications than if they had gone the VA loan route. Consequently, the number of people taking out VA loans has, in recent years, dropped to its lowest rate in 12 years.
Stay tuned in Part 2 when we talk about some of the proposed legislation in Washington to help stem this disgraceful practice of foreclosing on active military members and how real estate agents can take action on this as well.
http://www.oreinternationalrealty.com
Overcoming Communications Styles Can Boost Business Efficiencies
RISMEDIA, October 13, 2010--Ever find that there is one co-worker that is harder to get along with than the others? It might be because you have different communication styles. However, in the work environment, especially in a small business, employees and managers have to get along to meet the bottom-line.
Small- to medium-sized business (SMB) expert Denise O'Berry offers advice on how to work with others more effectively by using the I Opt® assessment tool, a proven technique to help identify four key communication styles in the workplace. O'Berry provides insights on what each style looks like in the business environment and how to best work with each one for a positive and productive office environment. Small businesses can visit www.telephones.att.com/smb for O'Berry's advice and learn more about communicating with their employees.
What Communication Style are You?
Trying to work with introverts and extroverts, and ensure that everyone is playing nice in the cubicle sandbox can be challenging. However, examining employees' communication styles can help turn any team into a powerhouse by leveraging the strengths of each person. Most people can fit into one of four communication styles:
* Relational Innovator -- This is an idea person who will communicate in "big picture" terms. A phone call is a great way to help them throw out ideas that pop in their heads.
* Logical Processor -- This person communicates by finding the process of a situation and is very detail oriented. Social media is the worst way to communicate with them, as you can't give enough details in 140 characters!
* Hypothetical Analyzer -- The Hypothetical Analyzer loves to discover the "why" by digging deeply into a discussion to dissect all the elements. Managers should arrange a meeting or phone call to answer questions and help them explore the various options of a problem.
* Reactive Stimulator -- They are an action-oriented communicator with low attention to detail. A quick call or short email is an ideal way to connect with them.
"There will always be conflict in the work space, but by determining each employee's communication style, managers can help connect with staff and increase productivity and efficiency by eliminating confusion and misunderstandings," said O'Berry, SMB blogger and author of Small Business Cash Flow: Strategies for Making Your Business a Financial Success. "If a manager is constantly sending one-off emails to a Relational Innovator, it will only lead to frustration for everyone. They need a conversation or short call to let them talk about their ideas and new, exciting approaches to getting things done."
http://www.oreinternatioanalrealty.com
Small- to medium-sized business (SMB) expert Denise O'Berry offers advice on how to work with others more effectively by using the I Opt® assessment tool, a proven technique to help identify four key communication styles in the workplace. O'Berry provides insights on what each style looks like in the business environment and how to best work with each one for a positive and productive office environment. Small businesses can visit www.telephones.att.com/smb for O'Berry's advice and learn more about communicating with their employees.
What Communication Style are You?
Trying to work with introverts and extroverts, and ensure that everyone is playing nice in the cubicle sandbox can be challenging. However, examining employees' communication styles can help turn any team into a powerhouse by leveraging the strengths of each person. Most people can fit into one of four communication styles:
* Relational Innovator -- This is an idea person who will communicate in "big picture" terms. A phone call is a great way to help them throw out ideas that pop in their heads.
* Logical Processor -- This person communicates by finding the process of a situation and is very detail oriented. Social media is the worst way to communicate with them, as you can't give enough details in 140 characters!
* Hypothetical Analyzer -- The Hypothetical Analyzer loves to discover the "why" by digging deeply into a discussion to dissect all the elements. Managers should arrange a meeting or phone call to answer questions and help them explore the various options of a problem.
* Reactive Stimulator -- They are an action-oriented communicator with low attention to detail. A quick call or short email is an ideal way to connect with them.
"There will always be conflict in the work space, but by determining each employee's communication style, managers can help connect with staff and increase productivity and efficiency by eliminating confusion and misunderstandings," said O'Berry, SMB blogger and author of Small Business Cash Flow: Strategies for Making Your Business a Financial Success. "If a manager is constantly sending one-off emails to a Relational Innovator, it will only lead to frustration for everyone. They need a conversation or short call to let them talk about their ideas and new, exciting approaches to getting things done."
http://www.oreinternatioanalrealty.com
Tuesday, October 12, 2010
Seven Steps to a Sound Retirement
RISMEDIA, October 12, 2010--(MCT)-By Robert Powell - There are seven keys to a lot of things in life. There are seven steps to heaven and seven types of intelligence and seven habits of effective leaders.
Now we have seven steps to retirement planning courtesy of the Society of Actuaries, which just released a 64-page report with the not-so-consumer-friendly title "Segmenting the Middle Market: Retirement Risks and Solutions Phase II Report."
"Retirement financial planning requires a methodical approach that identifies and quantifies each important component that affects the asset accumulation, income management and product selection/investment decision processes," according to the report, which was sponsored by the society's committee on post-retirement needs and risk and written by Noel Abkemeier of Milliman.
Not surprisingly, Abkemeier says this approach is especially important for middle-income Americans who likely have less than $100,000 set aside for retirement. So what are those steps?
1. Quantify assets and net worth.
The first order of business is taking a tally of all that you own — your financial and non-financial assets, including your home and a self-owned business, and all that you owe. Your home, given that it might be your largest asset, could play an especially important part in your retirement, according to Abkemeier.
And at minimum, you should evaluate the many ways you can create income from your home, such as selling and renting; selling and moving in with family; taking out a home-equity loan; renting out a room or rooms; taking a reverse mortgage; and paying off your mortgage.
Another point that sometimes gets lost in the fray is that assets have to be converted into income and income streams need to be converted into assets. "When we think of assets and income, we need to remember that assets can be converted to a monthly income and that retirement savings are important as a generator of monthly income or spending power," according to SOA's report. "Likewise, income streams like pensions have a value comparable to an asset."
One reason retirement planning is so difficult, according to SOA, is that many people are not able to readily think about assets and income with equivalent values and how to make a translation between the two. Assets often seem like a lot of money, particularly when people forget that they will be using them to meet regular expenses.
Consider, for instance, the notion that $100,000 in retirement savings might translate into just $4,000 per year in retirement income.
2. Quantify risk coverage.
Take stock of all the insurance that you might already have or need — health, disability, life, auto and homeowners. In addition, consider whether you might need long-term-care insurance, especially in light of the cost associated with long-term care and the very real possibility that you might need some assistance at some point in your life.
According to the report, those households with limited assets — say, less than $200,000 in financial assets — may need to spend down their assets and rely on Medicaid, while those with more than $2 million in financial assets can cover long-term-care costs out of pocket. But those households with assets in between $200,000 and $2 million should include long-term care insurance in their plan, according to the SOA. And the best time to buy such insurance is in the late preretirement years.
The SOA also notes in its report the possible need for life insurance, the death benefit of which can be used for bequests or to provide income to a surviving spouse. Life insurance premiums can be expensive if you're getting on in years. That's why the SOA report suggests that you continue "existing preretirement coverages during the retirement period."
Of note, there will soon be many policies that combine long-term-care insurance with life insurance and annuities.
3. Compare expenditure needs against anticipated income.
The thing about retirement is that it's filled with expenses, which according to the SOA report "can be thought of as the minimum needed to sustain a standard of living, plus extra for nonrecurring needs and amounts to help meet dreams." What's more, those expenses are likely to change over time.
So to make your retirement plan work in reality, you first have to make it work on paper. You need to compare whether you'll have enough guaranteed income to cover your essential living expenses, including food, housing and health-insurance premiums, at the point of retirement and then compare what amount of income you'll need to cover your discretionary expenses, such as travel and the like (if those are indeed what you might consider discretionary expenses).
Your guaranteed sources of income include Social Security and possibly a pension and annuity. Not so guaranteed: earnings from work and income from assets such as capital gains, dividends, interest and rental property.
No doubt, as you go about the process of matching income to expenses, you might find yourself having to revise your discretionary expenses, especially if there aren't enough guaranteed sources of income to meet essential expenses.
4. Compare amounts needed in retirement against total assets.
So here's where your math skills (or your Google search skills) might come into play. Besides calculating your income and expenses at the point of retirement, you need to figure out whether your funds will last throughout retirement. In other words, you need to calculate the net present value of your expenses throughout retirement.
Now, truth be told, finding the present value of your expenses is a bit tricky, especially since there are many factors that can affect how much is really needed, including the date of your retirement, inflation rates, gross and after-tax investment returns, and your life expectancy.
But the bottom line is this: If, after crunching the numbers, the present value of your expenses is greater than the present value of your assets, you've got some adjustments to make. And the good news is that there are plenty of adjustments that you can make.
You could, for instance, delay the date of your retirement. You could return to work or work part-time. Those actions might be enough to offset the difference. In addition, you might consider trimming your expenses or consider a more tax-efficient plan to draw down income.
5. Categorize assets.
The SOA also recommends that assets be grouped to fund early, middle and late phases of retirement. Thus, assets for early retirement should be liquid, while mid-retirement assets should include intermediate-term investments such as laddered five- to 10-year Treasury bonds, Treasury Inflation-Protected Securities, laddered fixed-interest deferred annuities, balanced investment portfolios, income-oriented equities, variable annuities and the like. And late retirement assets include longevity insurance, TIPS, balanced portfolios, growth and income portfolios, laddered income annuities, deferred variable annuities and life insurance.
6. Relate investments to investing capabilities and portfolio size.
This should come as no surprise. The SOA recommends that you invest only in things that are suitable, relative to your risk tolerance, investment knowledge and the capacity of the portfolio to accommodate volatility. "In short, a retiree should not invest beyond his investment skills, including those of his adviser," the SOA report stated.
7. Keep the plan current.
This too might be a bit obvious, but retirement-income plans must not be built and set on a shelf. The plan is a point-in-time analysis that must be reviewed on a regular basis.
Consider, for instance, just some of the things that could change in one year, according to the SOA. Health status or health-care costs could change; your life expectancy might change; your investment returns and inflation might be quite different than your assumptions; and your employment status and expected retirement date might change.
What's more, you might suffer the loss of a spouse through death or divorce, or perhaps you might not be able to live independently any longer, or perhaps you might need to sell your house or unexpectedly care for dependents, or change your inheritance plans.
Said Abkemeier: "You want to keep your plan current. You need to tie everything together and go back to the start of the process each year. You want to enjoy retirement, but you don't want to be at rest."
(c) 2010, MarketWatch.com Inc.
Distributed by McClatch
http://www.oreinternationalrealty.com
Now we have seven steps to retirement planning courtesy of the Society of Actuaries, which just released a 64-page report with the not-so-consumer-friendly title "Segmenting the Middle Market: Retirement Risks and Solutions Phase II Report."
"Retirement financial planning requires a methodical approach that identifies and quantifies each important component that affects the asset accumulation, income management and product selection/investment decision processes," according to the report, which was sponsored by the society's committee on post-retirement needs and risk and written by Noel Abkemeier of Milliman.
Not surprisingly, Abkemeier says this approach is especially important for middle-income Americans who likely have less than $100,000 set aside for retirement. So what are those steps?
1. Quantify assets and net worth.
The first order of business is taking a tally of all that you own — your financial and non-financial assets, including your home and a self-owned business, and all that you owe. Your home, given that it might be your largest asset, could play an especially important part in your retirement, according to Abkemeier.
And at minimum, you should evaluate the many ways you can create income from your home, such as selling and renting; selling and moving in with family; taking out a home-equity loan; renting out a room or rooms; taking a reverse mortgage; and paying off your mortgage.
Another point that sometimes gets lost in the fray is that assets have to be converted into income and income streams need to be converted into assets. "When we think of assets and income, we need to remember that assets can be converted to a monthly income and that retirement savings are important as a generator of monthly income or spending power," according to SOA's report. "Likewise, income streams like pensions have a value comparable to an asset."
One reason retirement planning is so difficult, according to SOA, is that many people are not able to readily think about assets and income with equivalent values and how to make a translation between the two. Assets often seem like a lot of money, particularly when people forget that they will be using them to meet regular expenses.
Consider, for instance, the notion that $100,000 in retirement savings might translate into just $4,000 per year in retirement income.
2. Quantify risk coverage.
Take stock of all the insurance that you might already have or need — health, disability, life, auto and homeowners. In addition, consider whether you might need long-term-care insurance, especially in light of the cost associated with long-term care and the very real possibility that you might need some assistance at some point in your life.
According to the report, those households with limited assets — say, less than $200,000 in financial assets — may need to spend down their assets and rely on Medicaid, while those with more than $2 million in financial assets can cover long-term-care costs out of pocket. But those households with assets in between $200,000 and $2 million should include long-term care insurance in their plan, according to the SOA. And the best time to buy such insurance is in the late preretirement years.
The SOA also notes in its report the possible need for life insurance, the death benefit of which can be used for bequests or to provide income to a surviving spouse. Life insurance premiums can be expensive if you're getting on in years. That's why the SOA report suggests that you continue "existing preretirement coverages during the retirement period."
Of note, there will soon be many policies that combine long-term-care insurance with life insurance and annuities.
3. Compare expenditure needs against anticipated income.
The thing about retirement is that it's filled with expenses, which according to the SOA report "can be thought of as the minimum needed to sustain a standard of living, plus extra for nonrecurring needs and amounts to help meet dreams." What's more, those expenses are likely to change over time.
So to make your retirement plan work in reality, you first have to make it work on paper. You need to compare whether you'll have enough guaranteed income to cover your essential living expenses, including food, housing and health-insurance premiums, at the point of retirement and then compare what amount of income you'll need to cover your discretionary expenses, such as travel and the like (if those are indeed what you might consider discretionary expenses).
Your guaranteed sources of income include Social Security and possibly a pension and annuity. Not so guaranteed: earnings from work and income from assets such as capital gains, dividends, interest and rental property.
No doubt, as you go about the process of matching income to expenses, you might find yourself having to revise your discretionary expenses, especially if there aren't enough guaranteed sources of income to meet essential expenses.
4. Compare amounts needed in retirement against total assets.
So here's where your math skills (or your Google search skills) might come into play. Besides calculating your income and expenses at the point of retirement, you need to figure out whether your funds will last throughout retirement. In other words, you need to calculate the net present value of your expenses throughout retirement.
Now, truth be told, finding the present value of your expenses is a bit tricky, especially since there are many factors that can affect how much is really needed, including the date of your retirement, inflation rates, gross and after-tax investment returns, and your life expectancy.
But the bottom line is this: If, after crunching the numbers, the present value of your expenses is greater than the present value of your assets, you've got some adjustments to make. And the good news is that there are plenty of adjustments that you can make.
You could, for instance, delay the date of your retirement. You could return to work or work part-time. Those actions might be enough to offset the difference. In addition, you might consider trimming your expenses or consider a more tax-efficient plan to draw down income.
5. Categorize assets.
The SOA also recommends that assets be grouped to fund early, middle and late phases of retirement. Thus, assets for early retirement should be liquid, while mid-retirement assets should include intermediate-term investments such as laddered five- to 10-year Treasury bonds, Treasury Inflation-Protected Securities, laddered fixed-interest deferred annuities, balanced investment portfolios, income-oriented equities, variable annuities and the like. And late retirement assets include longevity insurance, TIPS, balanced portfolios, growth and income portfolios, laddered income annuities, deferred variable annuities and life insurance.
6. Relate investments to investing capabilities and portfolio size.
This should come as no surprise. The SOA recommends that you invest only in things that are suitable, relative to your risk tolerance, investment knowledge and the capacity of the portfolio to accommodate volatility. "In short, a retiree should not invest beyond his investment skills, including those of his adviser," the SOA report stated.
7. Keep the plan current.
This too might be a bit obvious, but retirement-income plans must not be built and set on a shelf. The plan is a point-in-time analysis that must be reviewed on a regular basis.
Consider, for instance, just some of the things that could change in one year, according to the SOA. Health status or health-care costs could change; your life expectancy might change; your investment returns and inflation might be quite different than your assumptions; and your employment status and expected retirement date might change.
What's more, you might suffer the loss of a spouse through death or divorce, or perhaps you might not be able to live independently any longer, or perhaps you might need to sell your house or unexpectedly care for dependents, or change your inheritance plans.
Said Abkemeier: "You want to keep your plan current. You need to tie everything together and go back to the start of the process each year. You want to enjoy retirement, but you don't want to be at rest."
(c) 2010, MarketWatch.com Inc.
Distributed by McClatch
http://www.oreinternationalrealty.com
Survey: Economy Driving People Out of the Housing Market
ISMEDIA, October 12, 2010--Nearly two-thirds of Americans say the current economic situation is making them less likely to buy a house, according to a new national survey by FindLaw.com (http://www.findlaw.com), a popular legal information website.
Sixty-three percent of American adults say they are less likely to buy a house because of the current state of the economy. Despite record-low mortgage rates and an abundance of houses available on the market, only 8 percent of people say the current economic situation makes them more likely to buy a house. About a quarter of people – 28 percent – say they are neither more likely nor less likely to buy a house because of the economy.
In particular, the current economy is driving lower-income individuals and families out of the market. People with annual incomes less than $50,000 were significantly more likely to say they are less inclined to buy a house than people with higher incomes.
"The current economic situation has greatly changed the dynamics of the housing market," said Stephanie Rahlfs, an attorney and editor with FindLaw.com. "Although mortgage rates are near record lows, stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures. Together, these factors are causing many people to shy away from the idea of buying a house. Buying a home, selling a home and owning a home are all becoming more complicated, and it's important to know the ins and outs of contracts, finances and your rights as a buyer, seller or owner."
Free Internet resources such as the FindLaw Real Estate center (http://realestate.findlaw.com/) can provide helpful information on buying, selling and owning a home, including obtaining a loan, borrowers' rights, finding the best mortgage, homeowners' rights, avoiding foreclosure and more. It also has useful information for renters, including negotiating a lease, tenants' rights, and fair housing and discrimination laws.
The FindLaw.com survey was conducted using a demographically balanced telephone survey of 1,000 American adults and has a margin of error of plus-or-minus 3 percent.
http://www.oreinternationalrealty.com
Sixty-three percent of American adults say they are less likely to buy a house because of the current state of the economy. Despite record-low mortgage rates and an abundance of houses available on the market, only 8 percent of people say the current economic situation makes them more likely to buy a house. About a quarter of people – 28 percent – say they are neither more likely nor less likely to buy a house because of the economy.
In particular, the current economy is driving lower-income individuals and families out of the market. People with annual incomes less than $50,000 were significantly more likely to say they are less inclined to buy a house than people with higher incomes.
"The current economic situation has greatly changed the dynamics of the housing market," said Stephanie Rahlfs, an attorney and editor with FindLaw.com. "Although mortgage rates are near record lows, stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures. Together, these factors are causing many people to shy away from the idea of buying a house. Buying a home, selling a home and owning a home are all becoming more complicated, and it's important to know the ins and outs of contracts, finances and your rights as a buyer, seller or owner."
Free Internet resources such as the FindLaw Real Estate center (http://realestate.findlaw.com/) can provide helpful information on buying, selling and owning a home, including obtaining a loan, borrowers' rights, finding the best mortgage, homeowners' rights, avoiding foreclosure and more. It also has useful information for renters, including negotiating a lease, tenants' rights, and fair housing and discrimination laws.
The FindLaw.com survey was conducted using a demographically balanced telephone survey of 1,000 American adults and has a margin of error of plus-or-minus 3 percent.
http://www.oreinternationalrealty.com
Monday, October 11, 2010
Amendment 4 cost: $44.6M to $83.4M annually
TALLAHASSEE, Fla. – A new analysis by Florida TaxWatch reveals that if Amendment 4 passes in the upcoming Nov. 2 election, it will negatively impact the state’s economy but also significantly increase costs to taxpayers and local governments.
In a new briefing, “In Addition to Devastating Impacts on the Economy and Jobs, Amendment 4 Will Increase Costs to Taxpayers through Added Elections and Increased Litigation Against Local Governments,” Florida TaxWatch details future fiscal costs and concerns with the potential passage of Amendment 4, which would require voter approval of all changes to local comprehensive land use plans (“comp plans”). Cities use complains to outline their future development.
“Instead of adopting Amendment 4 and spending tens of millions, if not hundreds of millions, of taxpayers’ hard-earned money annually on expensive elections, likely lawsuits and unnecessary overhead, Florida should invest in early learning for its children and youth, high-quality education, public safety and modern infrastructure, which would allow Floridians to compete and prosper in the twenty-first century,” says Dominic Calabro, president and CEO of Florida TaxWatch.
According to the briefing, voter approval for all changes to comp plans would result in hundreds, if not thousands, of elections, which would cost millions of dollars. Florida TaxWatch estimates that direct cost to the taxpayers throughout the state for these special elections would be $44.6 million to $83.4 million annually.
Furthermore, Florida cities that have adopted an Amendment 4-type approach to comp plans have had a significant increase in litigation and legal challenges. If implemented statewide, TaxWatch estimates that Amendment 4 could result in local government legal costs of more than $1 billion annually –more than $135 per Florida household.
In addition to higher costs, Amendment 4 would have a chilling effect on essential investment in Florida, negatively impacting jobs and long-term economic growth. It would stymie business formation and expansion as higher costs emerge for approved commercial and residential investment.
Florida TaxWatch is currently conducting an econometric analysis to quantify the dynamic economic impact of Amendment 4.
© 2010 Florida Realtors®
http://www.oreinternationalrealty.com
In a new briefing, “In Addition to Devastating Impacts on the Economy and Jobs, Amendment 4 Will Increase Costs to Taxpayers through Added Elections and Increased Litigation Against Local Governments,” Florida TaxWatch details future fiscal costs and concerns with the potential passage of Amendment 4, which would require voter approval of all changes to local comprehensive land use plans (“comp plans”). Cities use complains to outline their future development.
“Instead of adopting Amendment 4 and spending tens of millions, if not hundreds of millions, of taxpayers’ hard-earned money annually on expensive elections, likely lawsuits and unnecessary overhead, Florida should invest in early learning for its children and youth, high-quality education, public safety and modern infrastructure, which would allow Floridians to compete and prosper in the twenty-first century,” says Dominic Calabro, president and CEO of Florida TaxWatch.
According to the briefing, voter approval for all changes to comp plans would result in hundreds, if not thousands, of elections, which would cost millions of dollars. Florida TaxWatch estimates that direct cost to the taxpayers throughout the state for these special elections would be $44.6 million to $83.4 million annually.
Furthermore, Florida cities that have adopted an Amendment 4-type approach to comp plans have had a significant increase in litigation and legal challenges. If implemented statewide, TaxWatch estimates that Amendment 4 could result in local government legal costs of more than $1 billion annually –more than $135 per Florida household.
In addition to higher costs, Amendment 4 would have a chilling effect on essential investment in Florida, negatively impacting jobs and long-term economic growth. It would stymie business formation and expansion as higher costs emerge for approved commercial and residential investment.
Florida TaxWatch is currently conducting an econometric analysis to quantify the dynamic economic impact of Amendment 4.
© 2010 Florida Realtors®
http://www.oreinternationalrealty.com
For Investors: Re-evaluate Your Insurance Policies
Submitted by Deborah Boza-Va... on 11 October 2010 - 7:17amInsurance
RISMEDIA, October 11, 2010--With winter weather creeping in, landlords should be aware of exactly what their landlord insurance policy covers.
Many building owners could be surprised at what costly items are not covered in a standard policy, especially with high fire hazard months ahead. Residential fires are more prevalent in winter months than in spring or summer months, according to the U.S. Fire Administration. A residential fire can completely destroy a structure and all of its contents, which may not be covered by a policy.
LandlordInsurance.net points out some costly items that may not be insured under a policy.
Fires in homes increase in colder months mainly due to the higher number of cooking and heating fires. Heating a home becomes more expensive in the winter so people turn to their fireplaces, wood stoves, space heaters and other cheaper alternatives to common utilities. Although these can be a good option, they do come with risks that are preventable. Safety precautions must be taken to avoid residential fires.
However, accidents do happen and policies vary from company to company. Many property owners would think that their landlord insurance policy would cover the financial damages from a fire. A basic policy will likely cover the building itself, whether it is a house, apartment, duplex, townhouse, quad, condominium (condo), vacation rental or other dwelling. But usually the contents within the building must
be insured under a separate section.
In addition to the structure, any personal contents that are provided by the building owner for use by the renters should be covered by liability protection. The landlord contents insurance can have a limited or full contents policy. Limited contents policies are generally used for unfurnished or partly furnished properties and will typically cover items such as light fixtures and fittings, curtains, carpets and appliances. Regardless if the unit is sparsely furnished with such items, an owner should consider liability coverage in case of injury to tenants or guests caused by defective cookers, lighting fixtures, or stairs. If there was an incident, the compensation of the claim would be substantial.
http://www.oreinternationalrealty.com
RISMEDIA, October 11, 2010--With winter weather creeping in, landlords should be aware of exactly what their landlord insurance policy covers.
Many building owners could be surprised at what costly items are not covered in a standard policy, especially with high fire hazard months ahead. Residential fires are more prevalent in winter months than in spring or summer months, according to the U.S. Fire Administration. A residential fire can completely destroy a structure and all of its contents, which may not be covered by a policy.
LandlordInsurance.net points out some costly items that may not be insured under a policy.
Fires in homes increase in colder months mainly due to the higher number of cooking and heating fires. Heating a home becomes more expensive in the winter so people turn to their fireplaces, wood stoves, space heaters and other cheaper alternatives to common utilities. Although these can be a good option, they do come with risks that are preventable. Safety precautions must be taken to avoid residential fires.
However, accidents do happen and policies vary from company to company. Many property owners would think that their landlord insurance policy would cover the financial damages from a fire. A basic policy will likely cover the building itself, whether it is a house, apartment, duplex, townhouse, quad, condominium (condo), vacation rental or other dwelling. But usually the contents within the building must
be insured under a separate section.
In addition to the structure, any personal contents that are provided by the building owner for use by the renters should be covered by liability protection. The landlord contents insurance can have a limited or full contents policy. Limited contents policies are generally used for unfurnished or partly furnished properties and will typically cover items such as light fixtures and fittings, curtains, carpets and appliances. Regardless if the unit is sparsely furnished with such items, an owner should consider liability coverage in case of injury to tenants or guests caused by defective cookers, lighting fixtures, or stairs. If there was an incident, the compensation of the claim would be substantial.
http://www.oreinternationalrealty.com
As More Homeowners Walk Away, Experts Fear for Nation's Morals
RISMEDIA, October 11, 2010--(MCT)-By Gail MarksJarvis-Americans have taken a sharp slap in the face from the housing crisis, financial crisis and jobs crisis. Now, some wonder if the residue of those harsh realities is an ethical crisis.
For the first time in the nation's history, bankers say, people are walking away from mortgages they can otherwise afford to pay. The phenomenon known as strategic default was once unthinkable. It represents a calculated decision to hand over the keys to a home without making good on a loan, reasoning that it makes no sense to keep paying the monthly mortgage when the home is worth thousands of dollars less than the obligation.
Jeff Horton, a 33-year-old Orlando, Fla., technology manager, is among those who recently decided to take the step. He told his lender that he's done making payments on the condo he bought in 2005 and the home he bought in 2007, because he wants to move from Florida and can't sell or rent the properties at a price nearly high enough to cover his payments.
"Life is too short," said Horton, who has mortgages totaling about $400,000 with Bank of America — about twice as much as he thinks he would get if he could sell the property. He says he has little choice because the bank has refused to refinance the mortgages or adjust original terms.
Strategic default is a symptom of a housing market that suddenly turned from "American Dream" to financial trap. With the Norman Rockwell-like images of homeownership decimated by a 30 percent plunge in prices, some fear America is also losing its grip on another idyllic notion: that people will live by the slogan, "My word is my bond."
Morgan Stanley recently estimated that about 18 percent of defaults will be strategic. In a recent Pew Research Center survey, 36 percent of Americans said that walking away without paying a mortgage is acceptable, at least under certain circumstances. Fifty-nine percent said the practice is unacceptable.
The saying "My word is my bond" was first posted in the London Stock Exchange in the late 1920s to convey living up to promises. Now, after the worst financial disaster since that period, people such as Horton say they have no such image of Wall Street or large banks as trustworthy institutions, and that has allayed guilt about walking away from mortgages.
"I felt guilty at first," said Horton. "It all stopped when I saw them take $90 million in executive bonuses. They take bailout money and do nothing for the little guy. They wouldn't do anything for me."
Most people walking away from homes see little choice, says John Maddux, chief executive of UWalkAway, a Web site that provides advice on the strategic-default process. "They bought the house thinking of it as an investment in their future," he said. "For some, it was to be their retirement; for others, it was seen as forced savings, and now it's bleeding them dry."
Overburdened with mortgages, people conclude they won't be able to send their children to college, save anything for retirement or move to a place where they can find a job. But as they go through the soul-searching and guilt connected with walking away, Maddux noted they often point to a sense of betrayal.
He said he frequently hears: "I don't feel bad for the banks. They let this happen. Banks made the mistake of giving a loan to anyone if they had a pulse. Their loose lending standard led to a bubble, and the regulators should have controlled this."
Banking expert E. Philip Davis sympathizes with that point of view, but he also points out the implication of homeowners walking away from a commitment.
"It makes them as bad as the bankers," said Davis, a Baptist minister in the United Kingdom who teaches courses on fostering stability in the financial system.
The erosion of the ethic of keeping promises "will be a cancer for society," said Davis, who was with the Bank of England and is now a fellow at the U.K.'s National Institute of Economic and Social Research.
On the surface, one consequence is evident: If bankers don't trust that people will pay off their loans, banks will demand higher interest and other assurances before lending in the future.
In fact, there's research behind the concern, says Tom Donaldson, a University of Pennsylvania Wharton business ethics professor. And it shows that both bankers and borrowers are at risk if trust erodes.
"We've known for decades that trust is critical to successful business," said Donaldson. "Studies have shown that if one party cheats on one end, the other party feels more entitled to cheat. It's not the most noble way, but it is human nature, and it becomes a race to the bottom."
Research into strategic default by University of Chicago Booth School of Business professor Luigi Zingales shows what he calls "the contagion effect." "The stigma goes down once you see someone else do it," he said.
Donaldson adds, "I hope bankers are thinking about restoring trust. It's enormously in their interest."
Jim Wallis, the author of "Rediscovering Values: On Wall Street, Main Street and Your Street," is discouraged. He had hoped that the financial crisis would lead individuals and business leaders to seek what he calls "a moral recovery," and deal with issues such as "enough is enough" and "we're in it together."
But while he saw interest from businesses at the Davos World Economic Forum after the financial meltdown in 2008, he said the focus has shifted. Now he sees a lot of "anger and yelling" by individuals, and occasionally business people approach him to "voice frustration and yearning. There is no champion for a values discussion."
While Wallis tries to get individuals to question whether individual debt levels were a moral breach leading up to the financial crisis, others say people now have an ethical duty to their families to walk away from debts if paying mortgages would hurt their financial stability.
Brent White, a University of Arizona law professor, argued in a recent paper that people have a moral obligation to their families to move on from mortgages that will overburden them. He said mortgages are legal contracts written with the understanding that they might be breached.
Those agreements stipulate what will occur if a borrower does not make payments as required. The borrower must turn the collateral, or home, back to the bank, and when that is done the contract is fulfilled.
Historically, taking back homes was a satisfactory remedy for banks. But that is no longer true, because both individuals and banks find themselves in the abyss of the housing crisis. Some homeowners can't afford their mortgages, while banks are struggling to manage the record number of foreclosures.
http://www.oreinternationalrealty.com
For the first time in the nation's history, bankers say, people are walking away from mortgages they can otherwise afford to pay. The phenomenon known as strategic default was once unthinkable. It represents a calculated decision to hand over the keys to a home without making good on a loan, reasoning that it makes no sense to keep paying the monthly mortgage when the home is worth thousands of dollars less than the obligation.
Jeff Horton, a 33-year-old Orlando, Fla., technology manager, is among those who recently decided to take the step. He told his lender that he's done making payments on the condo he bought in 2005 and the home he bought in 2007, because he wants to move from Florida and can't sell or rent the properties at a price nearly high enough to cover his payments.
"Life is too short," said Horton, who has mortgages totaling about $400,000 with Bank of America — about twice as much as he thinks he would get if he could sell the property. He says he has little choice because the bank has refused to refinance the mortgages or adjust original terms.
Strategic default is a symptom of a housing market that suddenly turned from "American Dream" to financial trap. With the Norman Rockwell-like images of homeownership decimated by a 30 percent plunge in prices, some fear America is also losing its grip on another idyllic notion: that people will live by the slogan, "My word is my bond."
Morgan Stanley recently estimated that about 18 percent of defaults will be strategic. In a recent Pew Research Center survey, 36 percent of Americans said that walking away without paying a mortgage is acceptable, at least under certain circumstances. Fifty-nine percent said the practice is unacceptable.
The saying "My word is my bond" was first posted in the London Stock Exchange in the late 1920s to convey living up to promises. Now, after the worst financial disaster since that period, people such as Horton say they have no such image of Wall Street or large banks as trustworthy institutions, and that has allayed guilt about walking away from mortgages.
"I felt guilty at first," said Horton. "It all stopped when I saw them take $90 million in executive bonuses. They take bailout money and do nothing for the little guy. They wouldn't do anything for me."
Most people walking away from homes see little choice, says John Maddux, chief executive of UWalkAway, a Web site that provides advice on the strategic-default process. "They bought the house thinking of it as an investment in their future," he said. "For some, it was to be their retirement; for others, it was seen as forced savings, and now it's bleeding them dry."
Overburdened with mortgages, people conclude they won't be able to send their children to college, save anything for retirement or move to a place where they can find a job. But as they go through the soul-searching and guilt connected with walking away, Maddux noted they often point to a sense of betrayal.
He said he frequently hears: "I don't feel bad for the banks. They let this happen. Banks made the mistake of giving a loan to anyone if they had a pulse. Their loose lending standard led to a bubble, and the regulators should have controlled this."
Banking expert E. Philip Davis sympathizes with that point of view, but he also points out the implication of homeowners walking away from a commitment.
"It makes them as bad as the bankers," said Davis, a Baptist minister in the United Kingdom who teaches courses on fostering stability in the financial system.
The erosion of the ethic of keeping promises "will be a cancer for society," said Davis, who was with the Bank of England and is now a fellow at the U.K.'s National Institute of Economic and Social Research.
On the surface, one consequence is evident: If bankers don't trust that people will pay off their loans, banks will demand higher interest and other assurances before lending in the future.
In fact, there's research behind the concern, says Tom Donaldson, a University of Pennsylvania Wharton business ethics professor. And it shows that both bankers and borrowers are at risk if trust erodes.
"We've known for decades that trust is critical to successful business," said Donaldson. "Studies have shown that if one party cheats on one end, the other party feels more entitled to cheat. It's not the most noble way, but it is human nature, and it becomes a race to the bottom."
Research into strategic default by University of Chicago Booth School of Business professor Luigi Zingales shows what he calls "the contagion effect." "The stigma goes down once you see someone else do it," he said.
Donaldson adds, "I hope bankers are thinking about restoring trust. It's enormously in their interest."
Jim Wallis, the author of "Rediscovering Values: On Wall Street, Main Street and Your Street," is discouraged. He had hoped that the financial crisis would lead individuals and business leaders to seek what he calls "a moral recovery," and deal with issues such as "enough is enough" and "we're in it together."
But while he saw interest from businesses at the Davos World Economic Forum after the financial meltdown in 2008, he said the focus has shifted. Now he sees a lot of "anger and yelling" by individuals, and occasionally business people approach him to "voice frustration and yearning. There is no champion for a values discussion."
While Wallis tries to get individuals to question whether individual debt levels were a moral breach leading up to the financial crisis, others say people now have an ethical duty to their families to walk away from debts if paying mortgages would hurt their financial stability.
Brent White, a University of Arizona law professor, argued in a recent paper that people have a moral obligation to their families to move on from mortgages that will overburden them. He said mortgages are legal contracts written with the understanding that they might be breached.
Those agreements stipulate what will occur if a borrower does not make payments as required. The borrower must turn the collateral, or home, back to the bank, and when that is done the contract is fulfilled.
Historically, taking back homes was a satisfactory remedy for banks. But that is no longer true, because both individuals and banks find themselves in the abyss of the housing crisis. Some homeowners can't afford their mortgages, while banks are struggling to manage the record number of foreclosures.
http://www.oreinternationalrealty.com
Thursday, October 7, 2010
"Foreclosure freeze slows South Florida's residential real estate sales"
As banks suspend foreclosures, sales crucial in South Florida's troubled real estate market are in limbo.
BY TOLUSE OLORUNNIPA
The decision by three major banks to freeze foreclosures will buy distressed homeowners months of extra time and temporarily block lenders from reclaiming homes.
But it also threatens to buckle South Florida's home sales.
Bank-owned properties make up about 40 percent of home sales in South Florida, and suspensions by JP Morgan Chase, Bank of America and GMAC could deliver a debilitating blow to that crucial segment of the embattled real estate market.
``People don't realize that this is our market,'' said Matthew Murray, a Realtor with Pat Dahne Realty Group who specializes in bank-owned sales. ``It's what's selling. If you delay the process, it's going to delay the recovery.''
There are mounting reports of approved foreclosure sales being stopped pre-closing, and buyers being left in limbo as banks try to deal with exposed ``robo-signers'' and unverified affidavits.
As the foreclosure moratoriums play out, a slowdown in low-priced, bank-owned properties coming through the pipeline could further hamper sales in South Florida, which depends on foreclosures more than most parts of the country.
The lenders have put the brakes on their foreclosure operations after bank employees and affiliates confessed they had been individually signing thousands of legal documents each month without verifying the details of the cases. Those documents, which contain crucial information like the amount owed and the owner of the note, have sparked allegations that thousands of foreclosure filings are tainted by fraud and forgery.
As paperwork issues stall sales, the hottest sector of the local market -- bank-owned properties, or so-called REOs -- lies at risk of going cold.
Together, the three lenders represent nearly a third of the local REO market. Bank of America, for example, has nearly 500 REO properties listed for sale in Miami-Dade and Broward counties, according to its website. GMAC, now known as Ally Financial, has at least 200 REOs in South Florida and JP Morgan has at least 250. Many of those properties have buyers and are currently pending sales, the banks' websites show. Other banks could follow suit in stopping foreclosure sales, although Wells Fargo announced Wednesday that it would not go that route.
IN LIMBO
Realtor Matthew Murray pointed out that most of his sales have not yet been affected, but other Realtors said bank suspensions have left some current sales in limbo and the future of the REO market uncertain.
Ashton Coleman, a Realtor with Keller Williams, planned to close on the sale of a North Bay Village condo this Friday before he got a letter from Bank of America saying the sale was being stalled.
``We figured that it would be fine since the bank already owned the property, but we figured that the bank probably found something wrong,'' Coleman said. ``The bank will be delaying [the sale] for at least 15 days, and for as many as 90 days.''
GMAC sent out letters to real estate agents last month alerting them that pending REO sales would be delayed an additional 30 days, Realtors said.
Anthony Askowitz, who has a few pending deals on GMAC-owned properties in Miami, said many of his buyers are investors, and have been willing to wait.
``If it's an investor, the investor is going to be able to handle it a lot easier than someone who has to move out of their current home by a certain date,'' said Askowitz, a broker and owner of two Re/Max offices.
But the depths of the foreclosure mess have not fully been uncovered, and no one knows for sure how long it will take lenders to clear up paperwork problems and re-start the foreclosure machine. With banks facing new calls for federal investigations and full-on foreclosure moratoriums, 30 days might not be enough.
HIGH-LEVEL CALLS
U.S. House Speaker Nancy Pelosi, Sen. Al Franken and Florida Congressman Alan Grayson are among those calling for bank probes and foreclosure halts across the U.S.
Most REO sales contracts have provisions that allow banks to halt a sale if issues come up concerning the property's title, said Murray, who added that has happened to him just twice in 20 years.
``The only way that happens is if they can't give you free and clear marketable title,'' he said.
Banks have authority to push these sales back for months, but not all buyers will be willing to hang around. Bank-owned properties are often abandoned and unkempt, and the longer a home stays empty, the more vulnerable it is to vandalism and disrepair, which can affect the home's value.
``It's in the bank's best interest to get this rectified as soon as possible,'' Askowitz said. ``So I don't think that this is going to drag on.''
Dennis Donet, a Miami foreclosure defense attorney, said that the despite the banks' desire to fix things quickly, legal battles could stall foreclosure sales for a year or more.
One of his clients recently learned that the sale of his foreclosed property was being canceled by its new owner GMAC, because of problems with the lender's foreclosure affidavit. Jeffrey Stephan, the GMAC employee who signed the affidavit, was exposed last month as a so-called ``robo-signer'' during a deposition. Stephan said he had signed more than 10,000 foreclosure documents each month, indicating that he had not taken the time to verify the details of each case.
LONG-TERM ISSUE
Donet has been talking with attorneys that represent banks, and said the general consensus is that questionable affidavits and lost documents will leave foreclosures hanging in the balance for a long time to come.
``There isn't anybody saying that this isn't going to be at least a six-month to one-year delay on the process,'' he said. ``Anything that interrupts the flow of capital is bad for the community.''
Read more: http://www.miamiherald.com/2010/10/06/1861253_p2/foreclosure-freeze-slows-home.html#ixzz11gWzsnP8
http://www.oreinternationalrealty.com
BY TOLUSE OLORUNNIPA
The decision by three major banks to freeze foreclosures will buy distressed homeowners months of extra time and temporarily block lenders from reclaiming homes.
But it also threatens to buckle South Florida's home sales.
Bank-owned properties make up about 40 percent of home sales in South Florida, and suspensions by JP Morgan Chase, Bank of America and GMAC could deliver a debilitating blow to that crucial segment of the embattled real estate market.
``People don't realize that this is our market,'' said Matthew Murray, a Realtor with Pat Dahne Realty Group who specializes in bank-owned sales. ``It's what's selling. If you delay the process, it's going to delay the recovery.''
There are mounting reports of approved foreclosure sales being stopped pre-closing, and buyers being left in limbo as banks try to deal with exposed ``robo-signers'' and unverified affidavits.
As the foreclosure moratoriums play out, a slowdown in low-priced, bank-owned properties coming through the pipeline could further hamper sales in South Florida, which depends on foreclosures more than most parts of the country.
The lenders have put the brakes on their foreclosure operations after bank employees and affiliates confessed they had been individually signing thousands of legal documents each month without verifying the details of the cases. Those documents, which contain crucial information like the amount owed and the owner of the note, have sparked allegations that thousands of foreclosure filings are tainted by fraud and forgery.
As paperwork issues stall sales, the hottest sector of the local market -- bank-owned properties, or so-called REOs -- lies at risk of going cold.
Together, the three lenders represent nearly a third of the local REO market. Bank of America, for example, has nearly 500 REO properties listed for sale in Miami-Dade and Broward counties, according to its website. GMAC, now known as Ally Financial, has at least 200 REOs in South Florida and JP Morgan has at least 250. Many of those properties have buyers and are currently pending sales, the banks' websites show. Other banks could follow suit in stopping foreclosure sales, although Wells Fargo announced Wednesday that it would not go that route.
IN LIMBO
Realtor Matthew Murray pointed out that most of his sales have not yet been affected, but other Realtors said bank suspensions have left some current sales in limbo and the future of the REO market uncertain.
Ashton Coleman, a Realtor with Keller Williams, planned to close on the sale of a North Bay Village condo this Friday before he got a letter from Bank of America saying the sale was being stalled.
``We figured that it would be fine since the bank already owned the property, but we figured that the bank probably found something wrong,'' Coleman said. ``The bank will be delaying [the sale] for at least 15 days, and for as many as 90 days.''
GMAC sent out letters to real estate agents last month alerting them that pending REO sales would be delayed an additional 30 days, Realtors said.
Anthony Askowitz, who has a few pending deals on GMAC-owned properties in Miami, said many of his buyers are investors, and have been willing to wait.
``If it's an investor, the investor is going to be able to handle it a lot easier than someone who has to move out of their current home by a certain date,'' said Askowitz, a broker and owner of two Re/Max offices.
But the depths of the foreclosure mess have not fully been uncovered, and no one knows for sure how long it will take lenders to clear up paperwork problems and re-start the foreclosure machine. With banks facing new calls for federal investigations and full-on foreclosure moratoriums, 30 days might not be enough.
HIGH-LEVEL CALLS
U.S. House Speaker Nancy Pelosi, Sen. Al Franken and Florida Congressman Alan Grayson are among those calling for bank probes and foreclosure halts across the U.S.
Most REO sales contracts have provisions that allow banks to halt a sale if issues come up concerning the property's title, said Murray, who added that has happened to him just twice in 20 years.
``The only way that happens is if they can't give you free and clear marketable title,'' he said.
Banks have authority to push these sales back for months, but not all buyers will be willing to hang around. Bank-owned properties are often abandoned and unkempt, and the longer a home stays empty, the more vulnerable it is to vandalism and disrepair, which can affect the home's value.
``It's in the bank's best interest to get this rectified as soon as possible,'' Askowitz said. ``So I don't think that this is going to drag on.''
Dennis Donet, a Miami foreclosure defense attorney, said that the despite the banks' desire to fix things quickly, legal battles could stall foreclosure sales for a year or more.
One of his clients recently learned that the sale of his foreclosed property was being canceled by its new owner GMAC, because of problems with the lender's foreclosure affidavit. Jeffrey Stephan, the GMAC employee who signed the affidavit, was exposed last month as a so-called ``robo-signer'' during a deposition. Stephan said he had signed more than 10,000 foreclosure documents each month, indicating that he had not taken the time to verify the details of each case.
LONG-TERM ISSUE
Donet has been talking with attorneys that represent banks, and said the general consensus is that questionable affidavits and lost documents will leave foreclosures hanging in the balance for a long time to come.
``There isn't anybody saying that this isn't going to be at least a six-month to one-year delay on the process,'' he said. ``Anything that interrupts the flow of capital is bad for the community.''
Read more: http://www.miamiherald.com/2010/10/06/1861253_p2/foreclosure-freeze-slows-home.html#ixzz11gWzsnP8
http://www.oreinternationalrealty.com
"Facebook Seen as Next Frontier for Online Sales"
RISMEDIA, October 7, 2010--(MCT)-By Maria Halkias-Brick-and-mortar retailers badly want to tap into Facebook's 500 million users.
Retailers realize that for a growing number of Facebook users, it's no longer just a website. It's a new platform, one of the "big new disruptors" in the online world, according to experts assembled at last week's Shop.org annual retail technology summit in Dallas.
Stores are chatting with customers on Facebook about what's new in stores, holding contests and posting weekly ads. Now, in time for the holidays, companies are building Facebook "stores" that will allow people to shop without leaving Facebook.
Retailers want to "turn all these (social media) conversations into conversions," said Henry Wong, chief executive of Adgregate Markets, a company that's about to put a dozen retailers, including the Gap, Banana Republic and Old Navy, into social commerce.
Adgregate, based in Sausalito, Calif., is working with McAfee to provide security for the shopping platforms.
Why do shoppers need a new platform?
"Because this is where the customer is hanging out," Wong said. "They're not hanging out on websites."
More than 30 billion pieces of content are shared monthly on Facebook. More than 1 million websites have integrated with Facebook to accommodate those users, of which 50 percent sign on daily.
Mike Murphy, vice president of global sales for Facebook, said "there's a lot of page-building happening with the functionality to allow shopping" inside Facebook.
"We want it to happen," he said.
Best Buy is an example of a large retailer with a "shop" tab on its Facebook page. Its entire inventory is on Facebook, and users are encouraged to share items they're considering with their friends and read what others think about a product.
"That allows the customer to make a good purchase," Murphy said.
"Originally, we all thought of Facebook as a destination website that people went to" and now it's viewed as a platform, said Josh Goldman, general partner of Norwest Venture Partners. Goldman is the former CEO of mySimon Inc., a popular shopping search engine in the 1990s that was sold to CNET for $730 million.
It's helping to define what Goldman calls "social retailing."
Some of the move to Facebook is an example of the old "location, location, location" axiom, said Rob Solomon, president and chief operating officer of Groupon, the fast-growing daily deal site. "In the old days, everyone had to be on Yahoo. Now you have to be on Facebook."
For some retailers, especially brick-and-mortar vs. online-only retailers, Facebook pages are seeing more traffic than websites, Murphy said.
Gaming, especially Zynga's FarmVille and Cafe World, have taken off faster on Facebook than retailing, Murphy said. A new company is trying to tap into that popularity for retailers.
Ifeelgoods, based in Menlo Park, Calif., has created a promotional tool that allows retailers to give Facebook credits used by gamers instead of expensive coupons or discounts.
The credits cost the retailer as little as 10 cents and could be offered for sharing a product with friends or signing up for retailers' e-mails.
Murphy described what Facebook imagines as the future.
Retail pages won't be the same for everyone. They'll be customized, and shoppers will vote on what goes on sale next week, he said.
And beyond shopping?
"You sign into a set-top box, and it informs you that six of your friends watched 'Entourage,' and your dad taped it for you," Murphy said. "Fourteen of your friends like 'Modern Family,' and we taped it for you."
(c) 2010, The Dallas Morning News.
Distribut
http://www.oreinternatioanalrealty.com
Retailers realize that for a growing number of Facebook users, it's no longer just a website. It's a new platform, one of the "big new disruptors" in the online world, according to experts assembled at last week's Shop.org annual retail technology summit in Dallas.
Stores are chatting with customers on Facebook about what's new in stores, holding contests and posting weekly ads. Now, in time for the holidays, companies are building Facebook "stores" that will allow people to shop without leaving Facebook.
Retailers want to "turn all these (social media) conversations into conversions," said Henry Wong, chief executive of Adgregate Markets, a company that's about to put a dozen retailers, including the Gap, Banana Republic and Old Navy, into social commerce.
Adgregate, based in Sausalito, Calif., is working with McAfee to provide security for the shopping platforms.
Why do shoppers need a new platform?
"Because this is where the customer is hanging out," Wong said. "They're not hanging out on websites."
More than 30 billion pieces of content are shared monthly on Facebook. More than 1 million websites have integrated with Facebook to accommodate those users, of which 50 percent sign on daily.
Mike Murphy, vice president of global sales for Facebook, said "there's a lot of page-building happening with the functionality to allow shopping" inside Facebook.
"We want it to happen," he said.
Best Buy is an example of a large retailer with a "shop" tab on its Facebook page. Its entire inventory is on Facebook, and users are encouraged to share items they're considering with their friends and read what others think about a product.
"That allows the customer to make a good purchase," Murphy said.
"Originally, we all thought of Facebook as a destination website that people went to" and now it's viewed as a platform, said Josh Goldman, general partner of Norwest Venture Partners. Goldman is the former CEO of mySimon Inc., a popular shopping search engine in the 1990s that was sold to CNET for $730 million.
It's helping to define what Goldman calls "social retailing."
Some of the move to Facebook is an example of the old "location, location, location" axiom, said Rob Solomon, president and chief operating officer of Groupon, the fast-growing daily deal site. "In the old days, everyone had to be on Yahoo. Now you have to be on Facebook."
For some retailers, especially brick-and-mortar vs. online-only retailers, Facebook pages are seeing more traffic than websites, Murphy said.
Gaming, especially Zynga's FarmVille and Cafe World, have taken off faster on Facebook than retailing, Murphy said. A new company is trying to tap into that popularity for retailers.
Ifeelgoods, based in Menlo Park, Calif., has created a promotional tool that allows retailers to give Facebook credits used by gamers instead of expensive coupons or discounts.
The credits cost the retailer as little as 10 cents and could be offered for sharing a product with friends or signing up for retailers' e-mails.
Murphy described what Facebook imagines as the future.
Retail pages won't be the same for everyone. They'll be customized, and shoppers will vote on what goes on sale next week, he said.
And beyond shopping?
"You sign into a set-top box, and it informs you that six of your friends watched 'Entourage,' and your dad taped it for you," Murphy said. "Fourteen of your friends like 'Modern Family,' and we taped it for you."
(c) 2010, The Dallas Morning News.
Distribut
http://www.oreinternatioanalrealty.com
Wednesday, October 6, 2010
For Your Clients: Downsizing? How to Live Large in a Small Space
RISMEDIA, October 6, 2010--(MCT)-By Jaclyn Banash-It's a constant battle: Small versus big. Less or more? There are arguments to support both sides.
Having just downsized to the smallest apartment I have ever lived in, I was intrigued by the idea of small being the new big. The challenge of storage and saving space is usually the No. 1 problem for most small-home dwellers. Organization is key, as is making the space work for your lifestyle.
I have been racking my brain for months over how to make my new 656-square-foot apartment work best for me. I have found some great new ideas to integrate with some of my old tricks of the trade.
Creative use of furniture is essential in small spaces or even in larger spaces that might need to be multifunctional. Take, for instance, a guest bedroom that doubles as an office. Instead of crowding the room on a daily basis with a bed that only gets used a few times a year, why not use a sleeper sofa or a chair and a half with a twin sleeper sofa? This will free so much space for day-to-day activities in the office.
A daybed is another good-looking piece of furniture that multitasks. A daybed is a great way to divide a large space, but in a small space, if positioned against the wall, it doubles as a sofa with pillows across the back and an extra sleeping spot when the pillows are removed.
Lots of furniture pieces are known for their great multipurpose and space-saving qualities. The ever-popular pouf, for example, can double as an ottoman, become a small table for books, computers and drinks to rest upon or even turn into extra seating.
Nesting tables also provide options for tiny spaces because they are small and easily moved. Storage ottomans are an obvious choice for doubling as a bench or coffee table that can house toys, blankets and extra bedding.
In dining room/eating areas, a custom-built bench/banquette with storage underneath is a great option for tight spaces. If your budget does not allow for custom, then good-looking storage boxes fit nicely under most pre-made banquettes. If you are not looking for more storage but are just short on space, a breakfast nook can be created with a small table and stools that can tuck underneath when not in use.
Simply by pushing a dining table against a wall or window you can save at least three feet. All you have to do is pull the table out for dinner parties. And don't forget, an old or unattractive table can always be put to use and instantly jazzed up with a custom table skirt in a fabulous fabric. Voila, another spot for hidden storage!
One of my recent favorite small-space solutions is installing built-in top-to-bottom mirrors on the inset of closet doors. How brilliant! No longer are you taking up precious wall space in the room with a floor-length mirror.
As for the actual layout and decoration of a small space, conflicting theories abound. Some say not to fill a small room with over-scaled furniture, as it eats up the space and feels cramped. Others say big furniture makes a small room seem grander.
I gravitate toward the middle. In general, I stay away from large, overstuffed furniture and do find that too many small pieces can feel cluttered. But I need enough seating for entertaining and recently purchased a set of Lucite folding chairs (clear furniture is another small-space trick) that can be stowed when not in use.
I have never subscribed to pure minimalism, although I admire those who can. I find it almost impossible to not surround myself with lovely items that I find along my travels, antiquing or shopping. The key is rigorous editing. I have seen many small, successful spaces that have a plethora of mementos or objets d'art.
But once you get to a certain point, it becomes necessary to do the practice of one thing in, one thing out. After all, no matter what size your space is, you need the room to enjoy it.
(c) 2010, The Kansas City Star.
Distributed by McClatchy-Tribune Information Services.
http://www.oreinternationalrealty.com
Having just downsized to the smallest apartment I have ever lived in, I was intrigued by the idea of small being the new big. The challenge of storage and saving space is usually the No. 1 problem for most small-home dwellers. Organization is key, as is making the space work for your lifestyle.
I have been racking my brain for months over how to make my new 656-square-foot apartment work best for me. I have found some great new ideas to integrate with some of my old tricks of the trade.
Creative use of furniture is essential in small spaces or even in larger spaces that might need to be multifunctional. Take, for instance, a guest bedroom that doubles as an office. Instead of crowding the room on a daily basis with a bed that only gets used a few times a year, why not use a sleeper sofa or a chair and a half with a twin sleeper sofa? This will free so much space for day-to-day activities in the office.
A daybed is another good-looking piece of furniture that multitasks. A daybed is a great way to divide a large space, but in a small space, if positioned against the wall, it doubles as a sofa with pillows across the back and an extra sleeping spot when the pillows are removed.
Lots of furniture pieces are known for their great multipurpose and space-saving qualities. The ever-popular pouf, for example, can double as an ottoman, become a small table for books, computers and drinks to rest upon or even turn into extra seating.
Nesting tables also provide options for tiny spaces because they are small and easily moved. Storage ottomans are an obvious choice for doubling as a bench or coffee table that can house toys, blankets and extra bedding.
In dining room/eating areas, a custom-built bench/banquette with storage underneath is a great option for tight spaces. If your budget does not allow for custom, then good-looking storage boxes fit nicely under most pre-made banquettes. If you are not looking for more storage but are just short on space, a breakfast nook can be created with a small table and stools that can tuck underneath when not in use.
Simply by pushing a dining table against a wall or window you can save at least three feet. All you have to do is pull the table out for dinner parties. And don't forget, an old or unattractive table can always be put to use and instantly jazzed up with a custom table skirt in a fabulous fabric. Voila, another spot for hidden storage!
One of my recent favorite small-space solutions is installing built-in top-to-bottom mirrors on the inset of closet doors. How brilliant! No longer are you taking up precious wall space in the room with a floor-length mirror.
As for the actual layout and decoration of a small space, conflicting theories abound. Some say not to fill a small room with over-scaled furniture, as it eats up the space and feels cramped. Others say big furniture makes a small room seem grander.
I gravitate toward the middle. In general, I stay away from large, overstuffed furniture and do find that too many small pieces can feel cluttered. But I need enough seating for entertaining and recently purchased a set of Lucite folding chairs (clear furniture is another small-space trick) that can be stowed when not in use.
I have never subscribed to pure minimalism, although I admire those who can. I find it almost impossible to not surround myself with lovely items that I find along my travels, antiquing or shopping. The key is rigorous editing. I have seen many small, successful spaces that have a plethora of mementos or objets d'art.
But once you get to a certain point, it becomes necessary to do the practice of one thing in, one thing out. After all, no matter what size your space is, you need the room to enjoy it.
(c) 2010, The Kansas City Star.
Distributed by McClatchy-Tribune Information Services.
http://www.oreinternationalrealty.com
Tuesday, October 5, 2010
Majority of Companies Do Not Have Social Media Strategy - Do You?
RISMEDIA, October 5, 2010--Social media is changing the way people find jobs, but according to the latest Emerging Workforce Study by SFN Group, most companies are out of step. In fact, less than one-fourth have a formal social media strategy in place, and of those, only one-third say they've had success.
"In the old talent attraction model, companies showed scant concern for the job seeker experience, enjoyed relative anonymity in terms of the true nature of their corporate culture and work environment, and rarely marketed themselves as a place to work," said Roy Krause, CEO of SFN Group, Inc. "The online revolution has changed all that, fueling the need for companies to build relevant social media strategies into their workforce planning efforts."
While successful adoption of social media requires a radical mindset change, the SFN study found many companies continue to apply conventional thinking to attracting, cultivating and retaining workers — a strategy that may fall short in today's digital world.
Conventional Misfire #1: Attracting Talent Is Most Successful through Traditional Means
According to the study, only four percent of HR executives use social networking to recruit. For many, attracting workers remains a sterile, one-size-fits-all approach, regardless of an onslaught of social media that now offers boundless opportunities to target specific candidate groups and tap into markets, which might otherwise have been inaccessible.
Conventional Misfire #2: Providing a Paycheck Alone Ensures an Engaged Workforce
The Emerging Workforce Study found that for 75 percent of workers, their job means more than just a way to earn a living. A full 88 percent want to think of new and creative ways to do things, with most workers naming growth potential as the top reason to stay beyond pay and benefits. One of the most effective venues to engage workers is social media, yet of the 44 percent of businesses using it, only 20 percent use it to motivate existing employees.
Conventional Misfire #3: Social Media Has Little to Do with Retaining Workers
Less than 20 percent of companies leverage social media to retain employees, according to the study. This is not surprising, when only 23 percent of HR executives said they are concerned about retention. However, utilizing social media to reinforce a company's commitment to its mission can deliver tremendous dividends in employee loyalty.
The study found that workers who feel their employer has a clear corporate mission — and follows through on it — are nearly twice as likely to stick around, compared to those who work for companies without a clear mission.
Arguably, a compelling reason behind the growth of social media is it allows people to be heard. Giving workers an outlet to speak their minds can dramatically improve employee retention.
Krause concluded, "The new rules of attracting, cultivating and retaining talent center on intangibles, such as respect, clarity of mission, career growth and employer brand values. Social media represent an ideal delivery option and stands to be a game changer in the ability to compete successfully."
http://oreinternationalrealty.com
"In the old talent attraction model, companies showed scant concern for the job seeker experience, enjoyed relative anonymity in terms of the true nature of their corporate culture and work environment, and rarely marketed themselves as a place to work," said Roy Krause, CEO of SFN Group, Inc. "The online revolution has changed all that, fueling the need for companies to build relevant social media strategies into their workforce planning efforts."
While successful adoption of social media requires a radical mindset change, the SFN study found many companies continue to apply conventional thinking to attracting, cultivating and retaining workers — a strategy that may fall short in today's digital world.
Conventional Misfire #1: Attracting Talent Is Most Successful through Traditional Means
According to the study, only four percent of HR executives use social networking to recruit. For many, attracting workers remains a sterile, one-size-fits-all approach, regardless of an onslaught of social media that now offers boundless opportunities to target specific candidate groups and tap into markets, which might otherwise have been inaccessible.
Conventional Misfire #2: Providing a Paycheck Alone Ensures an Engaged Workforce
The Emerging Workforce Study found that for 75 percent of workers, their job means more than just a way to earn a living. A full 88 percent want to think of new and creative ways to do things, with most workers naming growth potential as the top reason to stay beyond pay and benefits. One of the most effective venues to engage workers is social media, yet of the 44 percent of businesses using it, only 20 percent use it to motivate existing employees.
Conventional Misfire #3: Social Media Has Little to Do with Retaining Workers
Less than 20 percent of companies leverage social media to retain employees, according to the study. This is not surprising, when only 23 percent of HR executives said they are concerned about retention. However, utilizing social media to reinforce a company's commitment to its mission can deliver tremendous dividends in employee loyalty.
The study found that workers who feel their employer has a clear corporate mission — and follows through on it — are nearly twice as likely to stick around, compared to those who work for companies without a clear mission.
Arguably, a compelling reason behind the growth of social media is it allows people to be heard. Giving workers an outlet to speak their minds can dramatically improve employee retention.
Krause concluded, "The new rules of attracting, cultivating and retaining talent center on intangibles, such as respect, clarity of mission, career growth and employer brand values. Social media represent an ideal delivery option and stands to be a game changer in the ability to compete successfully."
http://oreinternationalrealty.com
Foreign buyers see big opportunity in housing bust
By MICHELLE CONLIN (AP) - The Viceroy, a swanky condominium complex in downtown Miami, gives the impression that the United States is in another real estate boom. The sales office is strangely exuberant. Buyers gush about the glam condos — designed by hipster tastemaker Kelly Wearstler — and their hotel-like amenities: poolside libations, daily housekeeping and room service food stirred up by a celebrity chef.
Since January, 262 of the Viceroy's 372 units have sold. But there's a twist: Almost 90 percent of the buyers are foreigners. And they all paid cash.
The Viceroy's story is playing out across Miami. Individual investors from as far as Argentina, Canada, Colombia, France, Israel, Italy, Norway and Venezuela are swarming the city's sales offices to get in on what they see as one of the greatest real estate fire sales in the history of the United States.
At one time, these people would have invested in the U.S. stock market. Now they see the opportunity of a lifetime in the nation's debilitated housing market. The idea is to rent out the properties and then sell them once the economy turns around.
The math is seductive: Prices at the Viceroy are roughly 52 percent off the 2007 peak. Units once sold for as much $670 a square foot. Today the average price is $319.
"I have never seen such a high concentration of foreign nationals acquiring real estate," says Peter Zalewski, who has been in real estate for 15 years and founded Condo Vultures, a consulting and brokerage firm. "Eighty percent of the sales in downtown Miami are foreign-based. This is unprecedented."
Miami is hardly the only hot spot for buyers from outside the United States. Real estate brokers say they've seen a surge in Washington, New York, Las Vegas, Los Angeles and San Francisco. In Seattle, Asians are buying property sight unseen, says Joe Brazen of Brazen Sotheby's International. In New York, 25 percent of buyers at the Armani-designed 20 Pine building, near the World Trade Center site, are from overseas.
"It's a positive in a sea of negatives," says Jonathan Miller, chief executive of Miller Samuel, a real estate consulting firm in New York.
This year in Phoenix, for the first time, there have been more buyers from Canada than from California, according to real estate data outfit Information Market. With the Canadian dollar approaching parity with its U.S. counterpart, the opportunity was simply irresistible to Jim Chuong, a 38-year-old Novartis sales manager from Toronto.
Chuong, whose house in Canada is already paid off, used to invest in U.S. stocks. Now he's investing in Phoenix condos, paying $50 a square foot for units that would cost $500 a square foot in Toronto.
"It's ridiculous is what it is," Chuong says.
For foreigners with cash, the deals can make them money from day one. Chuong buys two-bedroom condos for less than $40,000 in low-crime areas. He only picks up units that already have renters. After paying association fees and taxes, he walks away with $300 a month, pre-tax, on each. The deals are now easy to do, thanks to the cottage industry of companies that has grown up to manage virtually everything for foreign buyers, down to badgering renters for the monthly check.
For the international investor class, the United States' bloated inventory of homes, high unemployment and weak currency make for an unusually attractive buyer's market.
"Never before have all these things come together like this," says Patrick O'Neill, chief executive officer of the Hong Kong-based O'Neill Group, which helps Chinese invest in international real estate. O'Neill says Chinese buying in places like New York is on track to double this year.
"Unless you want to go to Baghdad," O'Neill says, "the United States is the best you can get."
The trend is showing up in the statistics. In a National Association of Realtors report released in July, 28 percent of brokers reported they had worked with at least one international client, up from 23 percent a year earlier. Among those, 18 percent had completed at least one sale, compared with 12 percent in the 2009 report.
"I was going invest in the stock market, but I decided to invest in real estate instead," says Diego Garcia, a Mexico City native on assignment in New York City with Pfizer Inc., where he is a regional finance director. Garcia paid $850,000 for a Manhattan one-bedroom in a gleaming new high-rise that he plans to live in for now. "I'm a conservative guy," Garcia says, "and this was more conservative."
That's not to say there aren't steep risks. An economic jolt could easily throw the whole plan into disarray. The housing market is far from a recovery. In many places, prices continue to fall. What happens if currency values reverse and a foreign owner needs a quick sale? Or a renter bolts in the middle of the night, leaving an empty unit and no cash flow?
It's not as if foreign buying can be counted on for a housing market turnaround. Overseas buyers represent a mere 7 percent or so of today's total. Yet in some cities, such as Miami and Washington, the foreign sales are helping to stabilize the markets.
In past downturns, buying a property in the U.S. was the prestigious purview of the wealthy, but today the market is within reach of the swelling ranks of the global upper-middle class.
Colombians, who often call Miami the most beautiful city in their country, have always been drawn to Florida. The difference now is the upside-down economics. It is cheaper to buy in Miami than in Bogota, and you can fly between the two cities for $59 each way.
"Muchos muchos muchos muchos opportunity," says Elsa de Blaschke, who owns a construction company with her husband in Barranquilla, Colombia, and is hunting for an investment property to buy in Miami. De Blaschke chose not to invest the capital at home because she says Florida offers a better chance of a bigger return.
"The international buyer pool is better than we have ever seen it before," says Phillip White, president of Sotheby's International, based in New York.
To match demand, U.S. brokerages are hiring agents who can speak foreign languages and are pouring more resources into marketing overseas.
In October, agents from 11 Sotheby's International branches will descend on Hong Kong's convention center to regale wealthy buyers there with slick visuals on showcase properties. In Toronto, agents from Florida Home Finders play to crowds of 800 every other Sunday at a Holiday Inn banquet hall. Jenny Huertas, Condo Vultures' international sales director, throws seminars for potential clients across South America.
"Their jaws drop. They can't believe it," Huertas says. "They think these deals are too good to be true."
http:/www.oreinternatioanalrealty.com
Since January, 262 of the Viceroy's 372 units have sold. But there's a twist: Almost 90 percent of the buyers are foreigners. And they all paid cash.
The Viceroy's story is playing out across Miami. Individual investors from as far as Argentina, Canada, Colombia, France, Israel, Italy, Norway and Venezuela are swarming the city's sales offices to get in on what they see as one of the greatest real estate fire sales in the history of the United States.
At one time, these people would have invested in the U.S. stock market. Now they see the opportunity of a lifetime in the nation's debilitated housing market. The idea is to rent out the properties and then sell them once the economy turns around.
The math is seductive: Prices at the Viceroy are roughly 52 percent off the 2007 peak. Units once sold for as much $670 a square foot. Today the average price is $319.
"I have never seen such a high concentration of foreign nationals acquiring real estate," says Peter Zalewski, who has been in real estate for 15 years and founded Condo Vultures, a consulting and brokerage firm. "Eighty percent of the sales in downtown Miami are foreign-based. This is unprecedented."
Miami is hardly the only hot spot for buyers from outside the United States. Real estate brokers say they've seen a surge in Washington, New York, Las Vegas, Los Angeles and San Francisco. In Seattle, Asians are buying property sight unseen, says Joe Brazen of Brazen Sotheby's International. In New York, 25 percent of buyers at the Armani-designed 20 Pine building, near the World Trade Center site, are from overseas.
"It's a positive in a sea of negatives," says Jonathan Miller, chief executive of Miller Samuel, a real estate consulting firm in New York.
This year in Phoenix, for the first time, there have been more buyers from Canada than from California, according to real estate data outfit Information Market. With the Canadian dollar approaching parity with its U.S. counterpart, the opportunity was simply irresistible to Jim Chuong, a 38-year-old Novartis sales manager from Toronto.
Chuong, whose house in Canada is already paid off, used to invest in U.S. stocks. Now he's investing in Phoenix condos, paying $50 a square foot for units that would cost $500 a square foot in Toronto.
"It's ridiculous is what it is," Chuong says.
For foreigners with cash, the deals can make them money from day one. Chuong buys two-bedroom condos for less than $40,000 in low-crime areas. He only picks up units that already have renters. After paying association fees and taxes, he walks away with $300 a month, pre-tax, on each. The deals are now easy to do, thanks to the cottage industry of companies that has grown up to manage virtually everything for foreign buyers, down to badgering renters for the monthly check.
For the international investor class, the United States' bloated inventory of homes, high unemployment and weak currency make for an unusually attractive buyer's market.
"Never before have all these things come together like this," says Patrick O'Neill, chief executive officer of the Hong Kong-based O'Neill Group, which helps Chinese invest in international real estate. O'Neill says Chinese buying in places like New York is on track to double this year.
"Unless you want to go to Baghdad," O'Neill says, "the United States is the best you can get."
The trend is showing up in the statistics. In a National Association of Realtors report released in July, 28 percent of brokers reported they had worked with at least one international client, up from 23 percent a year earlier. Among those, 18 percent had completed at least one sale, compared with 12 percent in the 2009 report.
"I was going invest in the stock market, but I decided to invest in real estate instead," says Diego Garcia, a Mexico City native on assignment in New York City with Pfizer Inc., where he is a regional finance director. Garcia paid $850,000 for a Manhattan one-bedroom in a gleaming new high-rise that he plans to live in for now. "I'm a conservative guy," Garcia says, "and this was more conservative."
That's not to say there aren't steep risks. An economic jolt could easily throw the whole plan into disarray. The housing market is far from a recovery. In many places, prices continue to fall. What happens if currency values reverse and a foreign owner needs a quick sale? Or a renter bolts in the middle of the night, leaving an empty unit and no cash flow?
It's not as if foreign buying can be counted on for a housing market turnaround. Overseas buyers represent a mere 7 percent or so of today's total. Yet in some cities, such as Miami and Washington, the foreign sales are helping to stabilize the markets.
In past downturns, buying a property in the U.S. was the prestigious purview of the wealthy, but today the market is within reach of the swelling ranks of the global upper-middle class.
Colombians, who often call Miami the most beautiful city in their country, have always been drawn to Florida. The difference now is the upside-down economics. It is cheaper to buy in Miami than in Bogota, and you can fly between the two cities for $59 each way.
"Muchos muchos muchos muchos opportunity," says Elsa de Blaschke, who owns a construction company with her husband in Barranquilla, Colombia, and is hunting for an investment property to buy in Miami. De Blaschke chose not to invest the capital at home because she says Florida offers a better chance of a bigger return.
"The international buyer pool is better than we have ever seen it before," says Phillip White, president of Sotheby's International, based in New York.
To match demand, U.S. brokerages are hiring agents who can speak foreign languages and are pouring more resources into marketing overseas.
In October, agents from 11 Sotheby's International branches will descend on Hong Kong's convention center to regale wealthy buyers there with slick visuals on showcase properties. In Toronto, agents from Florida Home Finders play to crowds of 800 every other Sunday at a Holiday Inn banquet hall. Jenny Huertas, Condo Vultures' international sales director, throws seminars for potential clients across South America.
"Their jaws drop. They can't believe it," Huertas says. "They think these deals are too good to be true."
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