Press Release FROM US TREASURY
Updated: November 30, 2009
November 30, 2009
Contact: Office of Public Affairs, (202) 622-2960
OBAMA ADMINISTRATION KICKS OFF
MORTGAGE MODIFICATION CONVERSION DRIVE
WASHINGTON - The U.S. Department of the Treasury and Department of Housing and Urban Development (HUD) today kick off a nationwide campaign to help borrowers who are currently in the trial phase of their modified mortgages under the Obama Administration’s Home Affordable Modification Program (HAMP) convert to permanent modifications. The modification program, which has helped over 650,000 borrowers, is part of the Administration’s broader commitment to stabilize housing markets and to provide relief to struggling homeowners and is a primary focus of financial stability efforts moving forward. Roughly 375,000 of the borrowers who have begun trial modifications since the start of the program are scheduled to convert to permanent modifications by the end of the year. Through the efforts being announced today, Treasury and HUD will implement new outreach tools and borrower resources to help convert as many trial modifications as possible to permanent ones.
"We are encouraged by the pace at which trial modifications are now being made to provide immediate savings to struggling homeowners," said the new Chief of Treasury’s Homeownership Preservation Office (HPO), Phyllis Caldwell. "We now must refocus our efforts on the conversion phase to ensure that borrowers and servicers know what their responsibilities are in converting trial modifications to permanent ones." In her new role, Caldwell will lead HPO’s conversion drive efforts.
"Encouraging borrowers to move through the process of converting trial modifications to permanent modifications remains a top priority for HUD," said HUD Assistant Secretary for Housing and FHA Commissioner David Stevens. "As a part of our continuing efforts to improve the execution of the HAMP program, HUD is committed to working with servicers, borrowers, housing counselors and others dedicated to homeownership preservation to improve the transition of distressed homeowners into affordable and sustainable mortgages."
With tens of thousands of trial modifications being made each week, the Administration is now working to ensure that eligible borrowers have the information and the assistance needed to move from the trial to the permanent modification phase. (All mortgage modifications begin with a trial phase to allow borrowers to submit the necessary documentation and determine whether the modified monthly payment is sustainable for them.) As the first round of modifications convert from the trial to permanent phase, the Administration has identified several strategies for addressing the challenges that borrowers confront in receiving permanent modifications.
In addition to the conversion drive that kicks off today, the Obama Administration has already taken several steps to make the transition from trial to permanent modification easier and more transparent by:
Extending the period for trial modifications started on or before September 1st to give homeowners more time to submit required information;
Streamlining the application process to minimize paperwork and simplify the submission process; meeting regularly with servicers to identify necessary improvement to borrower outreach and responsiveness;
Developing operational metrics to hold servicers accountable for their performance, which will soon be reported publicly;
Enhancing borrower resources on the MakingHomeAffordable.gov website and the Homeowner’s HOPE Hotline (888-995-HOPE) to provide direct access to tools and housing counselors.
The Mortgage Modification Conversion Drive will include the following:
Servicer Accountability. As part of the Administration’s ongoing efforts to hold servicers accountable for their commitment to the program and responsibility to borrowers, the following measures will be added:
Top servicers will be required to submit a schedule demonstrating their plans to reach a decision on each loan for which they have documentation and to communicate either a modification agreement or denial letter to those borrowers. Treasury/Fannie Mae "account liaisons" are being assigned to these servicers and will follow up daily as necessary to monitor progress against the servicer’s plan. Daily progress will be aggregated by the end of each business day and reported to the Administration.
Servicers failing to meet performance obligations under the Servicer Participation Agreement will be subject to consequences which could include monetary penalties and sanctions.
The December MHA Servicer Performance Report will include the data on permanent modifications as well as the number of active trial period modifications that may convert by the end of the year if all borrower documents are successfully submitted, sorted by servicer and date.
Servicers will be required to report to the Administration the status of each modification to provide additional transparency about situations where borrowers face obstacles to moving to the permanent phase.
Web tools for borrowers. Because the document submission process can be a challenge for many borrowers, the Administration has created new resources on www.MakingHomeAffordable.gov to simplify and streamline this step. New resources include:
Links to all of the required documents and an income verification checklist to help borrowers request a modification in four easy steps;
Comprehensive information about how the trial phase works, what borrower responsibilities are to convert to a permanent modification, and a new instructional video which provides step by step instruction for borrowers;
A toolkit for partner organizations to directly assist their constituents;
New web banners and tools for outreach partners to drive more borrowers to the site and Homeowner’s HOPE Hotline (888-995-HOPE).
Engagement of state, local and community stakeholders. Through the conversion drive, the Administration is engaging all levels of government - state, local and county - to both increase awareness of the program and expand the resources available to borrowers as they navigate the modification process.
HUD will engage staff in its 81 field offices to distribute outreach tools. HUD will also encourage its 2700 HUD-Approved Counseling Organizations to distribute outreach information to participating borrowers.
By engaging the National Governors Association (NGA), National League of Cities (NLC) and National Association of Counties (NACo) the Administration is connecting with the thousands of state, local, and county offices on the frontlines in large and small communities across the country who are hardest hit by the foreclosure crisis. These offices will now have the tools to increase awareness of the program, connect with and educate borrowers and grassroots organizations on how to request a modification and take the additional steps to ensure they are converted to permanent status; and serve as an additional trusted resource for borrowers who are facing challenges with the program.
In partnering with the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, state regulators will now have enhanced tools to assist borrowers who are facing challenges in converting to a permanent modification and to report to the Administration on the progress and challenges borrowers and servicers are facing on the ground. Regulators will also be empowered to work directly with escalation and compliance teams to ensure that HAMP guidelines are consistently applied.
More information about the Obama Administration’s mortgage modification program can be found at www.MakingHomeAffordable.gov.
Wednesday, December 2, 2009
Sunday, November 8, 2009
First Time Homebuyer Tax Credits extended
President Obama has signed into law the extension and expansion of the Homebuyer Tax Credit, which is part of the Unemployment Compensation Extension Act (H.R. 3548).
The bill provides a new incentive for existing homeowners who have owned their current homes at least five years, making them eligible for tax credits of up to $6,500 when they purchase a new home. I believe this provision benefitting existing home owners, combined with historically low interest rates, will help a large number of qualified move-up buyers who have been sitting on the sidelines, hesitant to list their current homes, if they act now!
The bill also extends the previous incentive for first time homebuyers – or anyone who hasn’t owned a home in the last three years. Those buyers will still get up to an $8,000 refundable tax credit.
The legislation includes other qualification provisions. For example, the credit is available only for the purchase of principal homes (no second or vacation homes) costing $800,000 or less and the credit is eliminated for individuals with annual incomes above $125,000 or couples with incomes above $225,000.
To qualify under either provision, buyers must sign a purchase agreement by April 30, 2010 and close by June 30, 2010. This is likely to be the last tax credit that the government will offer to first-time and move-up buyers. The window of opportunity is shorter than it may seem, especially for potential buyers who need to list and sell their existing homes. We must do everything we can to help them take complete advantage of it.
The bill provides a new incentive for existing homeowners who have owned their current homes at least five years, making them eligible for tax credits of up to $6,500 when they purchase a new home. I believe this provision benefitting existing home owners, combined with historically low interest rates, will help a large number of qualified move-up buyers who have been sitting on the sidelines, hesitant to list their current homes, if they act now!
The bill also extends the previous incentive for first time homebuyers – or anyone who hasn’t owned a home in the last three years. Those buyers will still get up to an $8,000 refundable tax credit.
The legislation includes other qualification provisions. For example, the credit is available only for the purchase of principal homes (no second or vacation homes) costing $800,000 or less and the credit is eliminated for individuals with annual incomes above $125,000 or couples with incomes above $225,000.
To qualify under either provision, buyers must sign a purchase agreement by April 30, 2010 and close by June 30, 2010. This is likely to be the last tax credit that the government will offer to first-time and move-up buyers. The window of opportunity is shorter than it may seem, especially for potential buyers who need to list and sell their existing homes. We must do everything we can to help them take complete advantage of it.
Thursday, September 17, 2009
Could you have an illegal mortgage and not know it?
From the Sun-Sentinel
> Posted by Daniel Vasquez on September 16, 2009 10:50 AM in the Sun-Sentinel
Apparently a majority of Florida attorneys say homeowners are not typically the first to realize they have a mortgage with terms that violate their consumer rights, such as hidden fees or balloon payments they were not told about at signing.
The culprits: Predatory lenders who took advantage of consumers willing to sign anything to get their dream home.
If you've been through the loan process, you realize how confusing the forms and laws can be. Many consumers found out the hard way that they were tricked into signing a bad mortgage, and many will find out soon, according to the Consumer Mortgage Audit Center, which analyzes loan data and problems.
The Center hosted a recent webcast poll in which nearly 64 percent of Florida lawyers who responded said that most homeowners with problematic mortgages are clueless about it. Also, most respondents warned that more mortgage violations and predatory lending will be "detected" in the coming 12 months as opposed to the past 12 months.
Best practices that the Consumer Mortgage Audit Center recommends to homeowners nearing or in foreclosure are:
Compare your HUD-1 document, which buyers get at settlement to outline most costs, with the same lender’s good faith estimate. If the figures on your HUD-1 and your good faith estimate look different, it may be time to call an attorney.
If you suspect there are violations in your mortgage paperwork but can’t be sure, take the time to consult an attorney. Your legal team will appreciate your efforts to be proactive, rather than reactive.
Look for an attorney in your area who handles foreclosure defense cases, as they’re typically most familiar with national homeowner’s rights, as well as laws designed to protect borrowers in your state. Most foreclosure attorneys do not charge for an initial consultation; further, if an attorney wins the foreclosure case against a lender, the lender is responsible for paying the homeowner’s attorney fees.
About the poll: The Consumer Mortgage Audit Center sponsored a Continuing Legal Education webinar for attorneys on July 31, 2009. Of the attorneys in attendance, 47 who practice in Florida shared their opinions, which were used in the above release. Responding attorneys specialize in foreclosure defense (42.6 percent), general practice (17 percent) and real estate (17 percent).
> Posted by Daniel Vasquez on September 16, 2009 10:50 AM in the Sun-Sentinel
Apparently a majority of Florida attorneys say homeowners are not typically the first to realize they have a mortgage with terms that violate their consumer rights, such as hidden fees or balloon payments they were not told about at signing.
The culprits: Predatory lenders who took advantage of consumers willing to sign anything to get their dream home.
If you've been through the loan process, you realize how confusing the forms and laws can be. Many consumers found out the hard way that they were tricked into signing a bad mortgage, and many will find out soon, according to the Consumer Mortgage Audit Center, which analyzes loan data and problems.
The Center hosted a recent webcast poll in which nearly 64 percent of Florida lawyers who responded said that most homeowners with problematic mortgages are clueless about it. Also, most respondents warned that more mortgage violations and predatory lending will be "detected" in the coming 12 months as opposed to the past 12 months.
Best practices that the Consumer Mortgage Audit Center recommends to homeowners nearing or in foreclosure are:
Compare your HUD-1 document, which buyers get at settlement to outline most costs, with the same lender’s good faith estimate. If the figures on your HUD-1 and your good faith estimate look different, it may be time to call an attorney.
If you suspect there are violations in your mortgage paperwork but can’t be sure, take the time to consult an attorney. Your legal team will appreciate your efforts to be proactive, rather than reactive.
Look for an attorney in your area who handles foreclosure defense cases, as they’re typically most familiar with national homeowner’s rights, as well as laws designed to protect borrowers in your state. Most foreclosure attorneys do not charge for an initial consultation; further, if an attorney wins the foreclosure case against a lender, the lender is responsible for paying the homeowner’s attorney fees.
About the poll: The Consumer Mortgage Audit Center sponsored a Continuing Legal Education webinar for attorneys on July 31, 2009. Of the attorneys in attendance, 47 who practice in Florida shared their opinions, which were used in the above release. Responding attorneys specialize in foreclosure defense (42.6 percent), general practice (17 percent) and real estate (17 percent).
Wednesday, September 9, 2009
REAL ESTATE TAX APPEAL DEADLINE
There are only 10 Days left to register your tax appeal petition. If you believe your Taxable Assessed Value is to high you must submit Petition at your Local County Clerks office on or before the 18th of September.
Friday, July 24, 2009
MORTGAGE DISCLOSURE INFORMATION ACT
There are recent changes in the federal Truth in Lending Act regulations which will have an impact on mortgage processes. It will require a fundamental change in how lenders finalize loan terms for the borrower prior to closing. Changes at the closing table could require the borrower to reschedule the closing date if a revised Truth In Lending statement is needed.
Summary
The rules for the Mortgage Disclosure Improvement Act were finalized Friday, May 8th and it is applicable to all mortgage lenders (federally chartered or state licensed). For applications taken as of July 30, 2009, new requirements about the delivery and the accuracy disclosures will apply. One of the new requirements is that the borrower must be provided with an accurate APR (annual percentage rate) disclosure at least three business days prior to closing. It must be in their hands three business days prior to closing and they are permitted to close on the 3rd business day after receiving it or later
An easy way to remember new rule is 3/7/3. This means
3 days after application – An initial truth in lending statement must be provided no later than 3 business days after receipt of the application. Some lenders such as Coldwell Banker Mortgage have a current process which generates an auto-compliance package which complies with this requirement so no changes are needed.
7 business days after initial application – Waiting period - the borrower is not permitted to close until at least seven business days have passed since the TIL (Truth in Lending statement) was placed in the mail or provided to the borrower.
3 business days prior to closing – Waiting period - The borrower must receive an accurate APR on their TIL at least 3 business days prior to closing. If it was provided before that period of time because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8th (¼ for construction loans).
If the final loan terms cause the TIL APR to be understated by more than 1/8th, a revised TIL with an accurate APR must be provided to the borrower so they receive it at least three business days prior to closing. It must be in their hands at that time and they may close on the 3rd business day after it.
Some issues to consider and address:
New timing requirements will limit rush closings and could delay closings.
Closing table changes and redraws may result in having to reschedule the closing date.
Summary
The rules for the Mortgage Disclosure Improvement Act were finalized Friday, May 8th and it is applicable to all mortgage lenders (federally chartered or state licensed). For applications taken as of July 30, 2009, new requirements about the delivery and the accuracy disclosures will apply. One of the new requirements is that the borrower must be provided with an accurate APR (annual percentage rate) disclosure at least three business days prior to closing. It must be in their hands three business days prior to closing and they are permitted to close on the 3rd business day after receiving it or later
An easy way to remember new rule is 3/7/3. This means
3 days after application – An initial truth in lending statement must be provided no later than 3 business days after receipt of the application. Some lenders such as Coldwell Banker Mortgage have a current process which generates an auto-compliance package which complies with this requirement so no changes are needed.
7 business days after initial application – Waiting period - the borrower is not permitted to close until at least seven business days have passed since the TIL (Truth in Lending statement) was placed in the mail or provided to the borrower.
3 business days prior to closing – Waiting period - The borrower must receive an accurate APR on their TIL at least 3 business days prior to closing. If it was provided before that period of time because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8th (¼ for construction loans).
If the final loan terms cause the TIL APR to be understated by more than 1/8th, a revised TIL with an accurate APR must be provided to the borrower so they receive it at least three business days prior to closing. It must be in their hands at that time and they may close on the 3rd business day after it.
Some issues to consider and address:
New timing requirements will limit rush closings and could delay closings.
Closing table changes and redraws may result in having to reschedule the closing date.
Wednesday, July 22, 2009
Coconut Grove Pioneers; KIRK MUNROE
Coconut Grove, Florida had many interesting pioneers. Among the most influential was KIRK MUNROE who came up with the name for his neighbor's new estate; "Vizcaya" and suggesred its emblem; the seahorse. Kirk Munroe was born on September 15, 1850 in a log cabin near Prairie du Chien, Wisconsin. His youngest years were spent on the frontier and then his family moved to Cambridge, Massachusetts where he attended school until he was sixteen. Unsure of what he wanted to do in life, but loving the outdoors, he secured a job as a surveyor's helper on an expedition that crossed the great southwest from Kansas to California to find a route for the first transcontinental railroad. During this time he claimed he helped fight Indians and in one scrimmage he was wounded while eight of his comrades were killed. He met such famous characters of the old west as Custer, Wild Bill Hickok, and Kit Carson.
1876 - Becomes reporter for the New York Sun newspaper
1879 - Becomes the first editor of Harper's Young People magazine.
1879 - Commodore of New York Canoe Club for five years. He was one of the founders of the American Canoe Association in 1880. It still exists and in 2002 had 50,000 members.
1880 May 30 - A national organization of bicycle enthusiasts was founded by Kirk Munroe and a friend. Originally called the League of American Wheelmen, in 1994 it changed its name to the League of American Bicyclists. Munroe held the No. 1 ticket.
1881 - Resigns from Harper's. In future years he returns to the magazine during the summers as a substitute editor.
1881-82 - Takes a winter trip to Florida with his sailing canoe Psyche. Circles most of the state in a 1600 mile cruise.
1883 September 15 - Marries Mary Barr. They take a three month cruise from St. Augustine to Lake Worth.
1885 - They buy a property on Lake Worth.
1885-86 - Munroe and Mary cruise the great Florida reef, ending up in Biscayne Bay.
1886 - They buy a property on Biscayne Bay in Coconut Grove which they name "Scrububs". Later they build the first tennis court in Dade County and organize the first baseball team.
1886 - Wakulla, his first book is published.
1887 February 15 - Munroe becomes the co-founder of Biscayne Bay Yacht Club at a meeting at Scrububs along with Ralph Munroe. Kirk remains its secretary for thirty-five years. The Biscayne Bay Yacht Club still exists and is the oldest organization in Miami-Dade County.
1890-91 - Cruises from Coconut Grove to the Ten Thousand Islands in Allapata, his thirty-five foot sharpie-ketch sailboat.
1893 - Paul Ransom comes to Coconut Grove with a letter of introduction to Kirk Munroe. A week later Munroe sells Ransom the seven and one-half acre property next to Scrububs. This becomes in 1896 the Pine Knot Camp and eventually Ransom-Everglades School.
1893 - Invited to the World's Fair in Chicago where he is voted most popular author by ten thousand children.
1893 - Trip to Alaska four years before the gold rush.
1895 June 15 - The Coconut Grove Library was founded by the members of the "Pine Needle Club". Mary Munroe was the president of this club. In 1901 Kirk Munroe erected a library building on land donated by Ralph Munroe. For many years Kirk Munroe was the President of the Coconut Grove Library Association.
1896 - Munroe is authorized by Ransom to begin building the school. Munroe signs a contract in January with a contractor to begin construction. Munroe and his wife take a trip to Key West. He visits the warship Maine.
1899 - Cruises the Canadian coast from Newfoundland to Hudson's Bay.
1903 - Takes a world tour which includes North Africa, Tibet, Burma, Java, Borneo, China, Korea and Japan. Sees the Russian battleships gathered in Port Arthur just prior to the great battle with the Japanese.
1903 - Returns home to the US - meets wife in San Francisco, together they tour the Canadian northwest
1904? - Travels to Central America, Mexico.
1905 - Last book published, For the Mikado.
1909 - Kirk celebrates his 59th birthday with Cree indians on a thousand mile trip through Canada.
1914 - In discussions with his neighbor, Munroe helps come up with the name of Deering's estate, "Viscaya" and its emblem, the sea horse.
1919 - Coconut Grove is incorporated as a town. One source says that Kirk Munroe ensures that the incorrect spelling "cocoanut" is not approved, but another source says this was done by his wife.
1919 - Sells "Scrububs". Buys a property elsewhere in Coconut Grove on a street called Leafy Way which he names "Kirkland House".
1922 - September. Mary dies.
1924 - Kirk marries Mrs. Mabel Stearns.
1926 - Stearns places him in the Florida Sanatarium in Orlando.
1930 - June 16th. Kirk Munroe dies at age 79. He is buried next to his beloved wife, Mary, at the Woodlawn Park Cemetery on S.W. 8th Street in Miami.
1876 - Becomes reporter for the New York Sun newspaper
1879 - Becomes the first editor of Harper's Young People magazine.
1879 - Commodore of New York Canoe Club for five years. He was one of the founders of the American Canoe Association in 1880. It still exists and in 2002 had 50,000 members.
1880 May 30 - A national organization of bicycle enthusiasts was founded by Kirk Munroe and a friend. Originally called the League of American Wheelmen, in 1994 it changed its name to the League of American Bicyclists. Munroe held the No. 1 ticket.
1881 - Resigns from Harper's. In future years he returns to the magazine during the summers as a substitute editor.
1881-82 - Takes a winter trip to Florida with his sailing canoe Psyche. Circles most of the state in a 1600 mile cruise.
1883 September 15 - Marries Mary Barr. They take a three month cruise from St. Augustine to Lake Worth.
1885 - They buy a property on Lake Worth.
1885-86 - Munroe and Mary cruise the great Florida reef, ending up in Biscayne Bay.
1886 - They buy a property on Biscayne Bay in Coconut Grove which they name "Scrububs". Later they build the first tennis court in Dade County and organize the first baseball team.
1886 - Wakulla, his first book is published.
1887 February 15 - Munroe becomes the co-founder of Biscayne Bay Yacht Club at a meeting at Scrububs along with Ralph Munroe. Kirk remains its secretary for thirty-five years. The Biscayne Bay Yacht Club still exists and is the oldest organization in Miami-Dade County.
1890-91 - Cruises from Coconut Grove to the Ten Thousand Islands in Allapata, his thirty-five foot sharpie-ketch sailboat.
1893 - Paul Ransom comes to Coconut Grove with a letter of introduction to Kirk Munroe. A week later Munroe sells Ransom the seven and one-half acre property next to Scrububs. This becomes in 1896 the Pine Knot Camp and eventually Ransom-Everglades School.
1893 - Invited to the World's Fair in Chicago where he is voted most popular author by ten thousand children.
1893 - Trip to Alaska four years before the gold rush.
1895 June 15 - The Coconut Grove Library was founded by the members of the "Pine Needle Club". Mary Munroe was the president of this club. In 1901 Kirk Munroe erected a library building on land donated by Ralph Munroe. For many years Kirk Munroe was the President of the Coconut Grove Library Association.
1896 - Munroe is authorized by Ransom to begin building the school. Munroe signs a contract in January with a contractor to begin construction. Munroe and his wife take a trip to Key West. He visits the warship Maine.
1899 - Cruises the Canadian coast from Newfoundland to Hudson's Bay.
1903 - Takes a world tour which includes North Africa, Tibet, Burma, Java, Borneo, China, Korea and Japan. Sees the Russian battleships gathered in Port Arthur just prior to the great battle with the Japanese.
1903 - Returns home to the US - meets wife in San Francisco, together they tour the Canadian northwest
1904? - Travels to Central America, Mexico.
1905 - Last book published, For the Mikado.
1909 - Kirk celebrates his 59th birthday with Cree indians on a thousand mile trip through Canada.
1914 - In discussions with his neighbor, Munroe helps come up with the name of Deering's estate, "Viscaya" and its emblem, the sea horse.
1919 - Coconut Grove is incorporated as a town. One source says that Kirk Munroe ensures that the incorrect spelling "cocoanut" is not approved, but another source says this was done by his wife.
1919 - Sells "Scrububs". Buys a property elsewhere in Coconut Grove on a street called Leafy Way which he names "Kirkland House".
1922 - September. Mary dies.
1924 - Kirk marries Mrs. Mabel Stearns.
1926 - Stearns places him in the Florida Sanatarium in Orlando.
1930 - June 16th. Kirk Munroe dies at age 79. He is buried next to his beloved wife, Mary, at the Woodlawn Park Cemetery on S.W. 8th Street in Miami.
Monday, June 22, 2009
Article from St. Petersberg Times:
Million-dollar homes hard to move in down economy
By James Thorner, Times Staff Writer In Print: Sunday, June 21, 2009
A particularly stubborn segment of the real estate market is the super-premium home. Examples include the 25,000-square-foot mansion in Avila, built by corporate raider Paul Bilzerian. It includes a full basketball gym, a racquetball court, a fitness room, a music room and a home theater. It is not on the market now, and was last under contract for $15 million about two years ago. Matt Geiger’s 26,000-square-foot, six-bedroom mansion in East Lake, at left, has a stocked lake and sits on 40 acres next to Crescent Oaks Country Club. Geiger also owns 60 acres of adjacent land. The house is now listed at $12.5 million. It had been for sale for more than $20 million.
From a bunkhouse-turned-sales office on the shores of Lake Thonotosassa, Steve Powell manages home sales at the millionaire enclave of Stonelake Ranch.
It's 98 rural home sites set serenely in rolling horse country 30 minutes east of downtown Tampa. Despite the 13,000- and 20,000-square-foot mansions taking shape at Stonelake, real estate isn't exactly rocking on Lake Thonotosassa.
Developers have trimmed prices as much as 30 percent, and sales have crumbled by about two-thirds the past couple of years. Powell spots fewer Mercedes and Lexuses rolling up the wooded, winding lanes of Stonelake.
"The fact is you're dealing with a more discriminating buyer," Powell said. "Although they may have the money, a lot of them are holding back."
What happens when big spenders with disposable income neither spend nor dispose? The area's high-end real estate market is finding out.
Sales of million-dollar-plus homes in Hillsborough and Pinellas counties plunged 42 percent from 2006 to 2008, from 554 to 321. This year, million-dollar transactions are even harder to find.
As of early June, the two counties had recorded about 70 sales in the million-plus category, the slowest pace in more than a decade. Sometimes the homes have sold, but price chopping knocked them out of the million-dollar club.
North of Tampa in Avila, more than 30 resales clog the listings. Popular with professional athletes and other "new money," Avila is taking it hard. At the top of the sale listings is gold dealer Mark Yaffe's $25 million mansion.
The down market is weighing on prices for condominiums on the St. Petersburg and Clearwater waterfronts, as well. It didn't help when financially distressed Opus Development announced hurried plans to auction luxury units in its new condo tower at 400 Beach Drive.
Several condos have sold this year at Clearwater's ritzy Sandpearl Resort, but prices are hundreds of thousands of dollars less than they were even a year ago.
In classic neighborhoods like Snell Isle in St. Petersburg, buyers demand substantial cuts before they bite. A new house at 851 Brightwaters Blvd., for example, was listed for $4.5 million but sold in May after being discounted to $3.4 million.
Some luxury builders who specialize in the million-dollar-plus market report peak-to-valley sales declines of 80 percent. Upscale builder Mark Maconi declared bankruptcy, and some of its competitors are adjusting to leaner times.
"The meat of our market is in the million-dollar price range — or was," said Charley Hannah of Tampa's Hannah Bartoletta Homes.
To be sure, recession-proof professionals and wealthy retirees are still scarfing up luxury real estate.
In Avila, Mariano Rivera, the New York Yankees' veteran relief pitcher, spent $8.9 million this year for a 9,200-square-foot mansion with a theater, billiard room, guest house and gated motor court with five-car garage. Teammate Derek Jeter is building a 30,875-square-foot home on Davis Islands.
Harold "Hal" Steinbrenner, Yankees executive and son of George Steinbrenner, plunked down $2 million in March for a waterfront house near West Shore Boulevard.
Former University of Florida quarterback Rex Grossman, late of the Chicago Bears, paid $1.7 million in February for a country spread northwest of Tampa.
Pinellas' largest sale this year was a $5.2 million, St. Pete Beach home sold to David Coterel. He's the former Ohio autoworker who won $314 million in the Powerball lottery in 2007.
But million-dollar homes are hardly an easy sell. The buying pool is narrow. House hunters are demanding. Financing is tough.
A particularly stubborn segment are super premium Taj Mahal homes. Examples include the 25,000-square-foot mansion in Avila built by ex-corporate raider Paul Bilzerian and the $19 million bachelor pad near Tarpon Springs owned by former NBA basketball player Matt Geiger. Both have languished.
"Baseball player Derek Jeter paid $7 million for the lot alone. No one's ever going to buy that house," said Ed Gunning, a Realtor who sells luxury homes with Smith & Associates. "Why would you buy someone else's house for $25 million? You'd build your own house. Those are monuments to yourself."
Another problem is appraisals. With so few sales against which to compare prices, banks are going with the lowest, to the chagrin of sellers and Realtors. Even in a market heavy with all-cash deals, many buyers still like to finance part of the purchase price.
Hannah has weathered another phenomenon: wealthy buyers who want the shirt off his back, and maybe the skin underneath for good measure.
Hannah faced the wrath of disappointed buyers when he listed a former $2 million model home in MiraBay, a Key West-style saltwater community in Apollo Beach.
Hannah chopped the price to $1.2 million, but the house hunter offered $700,000. That didn't even cover Hannah's land and construction costs.
"I can appreciate them being savvy buyers, but at some point reasonable is reasonable," the builder said. "The anger has caught me off guard. They'll call you names and fault your morality. I've been called stupid and crazy for not taking the deal."
Bob Glaser, owner of Smith & Associates, expects such "price sensitivity" to last another two years. But one of his agents, Frank Malowany, spies hopeful signs.
Malowany was the agent for the $10 million sale of MarineMax owner Bill McGill's Belleair home last year. It broke a Pinellas County price record.
He said the high-end selection can be so slim that people entering the market these days often express interest in homes not for sale.
"As tough as times are," Malowany said, "the general response is, 'No, we're not interested in selling at any price.' "
By James Thorner, Times Staff Writer In Print: Sunday, June 21, 2009
A particularly stubborn segment of the real estate market is the super-premium home. Examples include the 25,000-square-foot mansion in Avila, built by corporate raider Paul Bilzerian. It includes a full basketball gym, a racquetball court, a fitness room, a music room and a home theater. It is not on the market now, and was last under contract for $15 million about two years ago. Matt Geiger’s 26,000-square-foot, six-bedroom mansion in East Lake, at left, has a stocked lake and sits on 40 acres next to Crescent Oaks Country Club. Geiger also owns 60 acres of adjacent land. The house is now listed at $12.5 million. It had been for sale for more than $20 million.
From a bunkhouse-turned-sales office on the shores of Lake Thonotosassa, Steve Powell manages home sales at the millionaire enclave of Stonelake Ranch.
It's 98 rural home sites set serenely in rolling horse country 30 minutes east of downtown Tampa. Despite the 13,000- and 20,000-square-foot mansions taking shape at Stonelake, real estate isn't exactly rocking on Lake Thonotosassa.
Developers have trimmed prices as much as 30 percent, and sales have crumbled by about two-thirds the past couple of years. Powell spots fewer Mercedes and Lexuses rolling up the wooded, winding lanes of Stonelake.
"The fact is you're dealing with a more discriminating buyer," Powell said. "Although they may have the money, a lot of them are holding back."
What happens when big spenders with disposable income neither spend nor dispose? The area's high-end real estate market is finding out.
Sales of million-dollar-plus homes in Hillsborough and Pinellas counties plunged 42 percent from 2006 to 2008, from 554 to 321. This year, million-dollar transactions are even harder to find.
As of early June, the two counties had recorded about 70 sales in the million-plus category, the slowest pace in more than a decade. Sometimes the homes have sold, but price chopping knocked them out of the million-dollar club.
North of Tampa in Avila, more than 30 resales clog the listings. Popular with professional athletes and other "new money," Avila is taking it hard. At the top of the sale listings is gold dealer Mark Yaffe's $25 million mansion.
The down market is weighing on prices for condominiums on the St. Petersburg and Clearwater waterfronts, as well. It didn't help when financially distressed Opus Development announced hurried plans to auction luxury units in its new condo tower at 400 Beach Drive.
Several condos have sold this year at Clearwater's ritzy Sandpearl Resort, but prices are hundreds of thousands of dollars less than they were even a year ago.
In classic neighborhoods like Snell Isle in St. Petersburg, buyers demand substantial cuts before they bite. A new house at 851 Brightwaters Blvd., for example, was listed for $4.5 million but sold in May after being discounted to $3.4 million.
Some luxury builders who specialize in the million-dollar-plus market report peak-to-valley sales declines of 80 percent. Upscale builder Mark Maconi declared bankruptcy, and some of its competitors are adjusting to leaner times.
"The meat of our market is in the million-dollar price range — or was," said Charley Hannah of Tampa's Hannah Bartoletta Homes.
To be sure, recession-proof professionals and wealthy retirees are still scarfing up luxury real estate.
In Avila, Mariano Rivera, the New York Yankees' veteran relief pitcher, spent $8.9 million this year for a 9,200-square-foot mansion with a theater, billiard room, guest house and gated motor court with five-car garage. Teammate Derek Jeter is building a 30,875-square-foot home on Davis Islands.
Harold "Hal" Steinbrenner, Yankees executive and son of George Steinbrenner, plunked down $2 million in March for a waterfront house near West Shore Boulevard.
Former University of Florida quarterback Rex Grossman, late of the Chicago Bears, paid $1.7 million in February for a country spread northwest of Tampa.
Pinellas' largest sale this year was a $5.2 million, St. Pete Beach home sold to David Coterel. He's the former Ohio autoworker who won $314 million in the Powerball lottery in 2007.
But million-dollar homes are hardly an easy sell. The buying pool is narrow. House hunters are demanding. Financing is tough.
A particularly stubborn segment are super premium Taj Mahal homes. Examples include the 25,000-square-foot mansion in Avila built by ex-corporate raider Paul Bilzerian and the $19 million bachelor pad near Tarpon Springs owned by former NBA basketball player Matt Geiger. Both have languished.
"Baseball player Derek Jeter paid $7 million for the lot alone. No one's ever going to buy that house," said Ed Gunning, a Realtor who sells luxury homes with Smith & Associates. "Why would you buy someone else's house for $25 million? You'd build your own house. Those are monuments to yourself."
Another problem is appraisals. With so few sales against which to compare prices, banks are going with the lowest, to the chagrin of sellers and Realtors. Even in a market heavy with all-cash deals, many buyers still like to finance part of the purchase price.
Hannah has weathered another phenomenon: wealthy buyers who want the shirt off his back, and maybe the skin underneath for good measure.
Hannah faced the wrath of disappointed buyers when he listed a former $2 million model home in MiraBay, a Key West-style saltwater community in Apollo Beach.
Hannah chopped the price to $1.2 million, but the house hunter offered $700,000. That didn't even cover Hannah's land and construction costs.
"I can appreciate them being savvy buyers, but at some point reasonable is reasonable," the builder said. "The anger has caught me off guard. They'll call you names and fault your morality. I've been called stupid and crazy for not taking the deal."
Bob Glaser, owner of Smith & Associates, expects such "price sensitivity" to last another two years. But one of his agents, Frank Malowany, spies hopeful signs.
Malowany was the agent for the $10 million sale of MarineMax owner Bill McGill's Belleair home last year. It broke a Pinellas County price record.
He said the high-end selection can be so slim that people entering the market these days often express interest in homes not for sale.
"As tough as times are," Malowany said, "the general response is, 'No, we're not interested in selling at any price.' "
Wednesday, April 15, 2009
Tree Hugger's Ultimate Hero
SAVE THE TREES!*The power of one woman to vastly improve the lives of millions of suffering people against all odds is proven by the story of Wangari Maathai, the founder of The Green Belt Movement in Kenya, Africa who, with one simple idea; that women should plant trees, was able to overcome years brutal government opposition including death threats and bloody beatings and go on to see her simple idea become a highly successful, international movement and for which she was awarded the Nobel Peace Prize in 2004. Why would the Kenyan government want to kill one woman who simply wanted to teach other woman how to plant trees? If you don't already know Wangari's story you should take the time to learn it...it will inspire the tree-hugger in you or just the human being in you!
http://greenbeltmovement.org/blog/index.php
* Very sadly Wangari Maathai died last year, a great loss for all who love trees and those who defend them from predation.
Wednesday, February 4, 2009
The Ongoing Problem of SQUARE FOOTAGE
I have been trying for over 10 years now to get the local Real Estate Board here in Miami-Dade County to require our Multiple Listing Service (MLS) to have a uniform source for the square footage figures quoted online for listings. To date, they have not done this. So, beware, the square footage shown on realtor's listings may or may not be accurate. Here is a copy of my latest letter to our local real estate board which defines the problem and how it adversely affects the public.
February 3, 2009
Dear MLS Board of Directors,
I am hoping you can help me solve the long-standing problem of deceptive square footage quotes on our MLS system and, if not, perhaps you can direct me to someone who can.
Today is the 10 year anniversary of my quest to have our MLS require all MLS users to use one, authenticated source for the square footage quoted on listings published on MLS yet today, as per usual, a random sampling of several listings on MLS still shows that square footage of listings on MLS can be just about anything the listing agent decides to put in there. This has been the case for many years now and really needs to be corrected. Obviously, without one, agreed upon standard for the source, accuracy and authenticity of square footage figures on MLS our Real Estate Boards continue to fail, with impunity, in their legal duty to protect the public from dishonest real estate practices and I am still requesting that something be done about it soon. Too many realtors are getting away with "puffing up" their square footage on their listings on MLS which throws off all the computations we make on our CMAs and is a huge disservice to the honest realtors who refuse to puff their square footage and whose listings are then rejected by the buyers in favor of the ones with the faked, bigger square footage.
Right now MLS square footage for properties shown in the computer field marked LA: which stands for SqFt Liv Area and from which all our CMA's draw their SQ. FT. data, is auto populated from a feed from the Miami Dade County Tax Assessor but can be manually altered using many possible other sources such as; other public records data bases, an architect's rendering, an appraisal, a builder's spec sheet, a survey, an owner's opinion or a realtor's imagination. There is also no requirement for MLS users to identify the source from which the square footage comes when it has been changed from the auto-populated figure. Some realtors identify the source of the altered square footage in the comments section and some don't. Some diligently upload the document as an attachment on MLS (ideal!). Some realtors identify the source of the altered data but do not have a copy of the document from which they are quoting available to others who wish to check it. And since all of the above sources of square footage figures use completely different methodologies of calculating square footage using MLS square footage figures for "comps" is totally useless and all CMA estimates of value, routinely disseminated to the public upon request, are bogus. All of this is totally unacceptable, unprofessional, completely misleading and easily correctable.
Since the number one thing people want to know, prior to making an offer on a property, is what they are paying on a cost per square foot basis and how that compares to other recent sales, on a cost per square foot basis, realtors have a legal duty to make a reasonable effort to have a competent system in place to facilitate client requests for "comps". When the public asks members of the realtor community for "comps" the realtors have a duty to at least attempt to provide accurate data. While realtors cannot be expected to guarantee the accuracy of all square footage data they acquire from the public records they should not be allowed to knowingly disseminate data to the public which will be relied upon by the public to make important financial decisions that the realtors know may be flawed because there are no standards in place to insure its accuracy. This an open invitation for a class action lawsuit from members of the public who relied upon realtor CMAs to their detriment.
Another problem is that Realtors who choose to overstate the square footage of their listings in the MLS gain an unfair advantage over the honest realtor who declines to engage in such deception. Sellers who hire honest realtors may lose money as their listings do not compare as well to the listings of dishonest realtors who make their listings seem like better deals on a cost per square foot basis by inflating the square footage figures.
Charlette Seidel, manager of Coldwell Banker's Coral Gables office at 1501 Sunset, and I have offered solutions to this problem for the last 10 years, over and over again yet our real estate boards have never acted to fix this problem. Coldwell Banker has a policy that requires a listing agent to have, on hand, proof of square footage claims if they deviate from the public records figures. But we have no control over all the other non-Coldwell Banker realtors who input listings on MLS and whose often flawed data we must rely upon for CMAs which the public demands.
We have suggested, over and over again, that MLS go back to their previous system of blocking any changes on the one computer field that shows adjusted sq. footage which is drawn from the Miami-Dade Public Records and which is used in our CMAs to produce "comps". Obviously, this is not a perfect solution as the public records can be wrong but if the listing agent has an authenticated document that can be posted as an attachment on MLS which authoritatively shows different square footage, calculated using Public Records methodology, then that document can be referred to in the comments section. But, adhering to a strict policy of requiring the square footage quotes in MLS to all come from exactly the same authoritative source is an absolute statistics 101 must. Allowing realtors to post an attachment on MLS claiming different square footage allows for gross errors in the public records. Owners can also lobby the public records to correct their square footage figures. This way realtors and the public will be able to compare apples to apples when they use MLS data to compare properties and not be deceived by the occasional dishonest watermelon thrown in there.
Please let me know how we can go about correcting this problem. I realize that you are not a working realtor out in the field dealing with these issues on a day to day basis and so may not really have insight into how adversely this affects our business and I would be glad to sit down with you and show you specific examples of these problems and explain more fully how and why this really is such a serious and time consuming problem for all us realtors working out here in the trenches.
The market is so difficult right now and with the public really soured on real estate in general we really need to try everything we can to restore the public's confidence in the real estate industry. Having no standards whatsoever that MLS users must adhere to for the square footage we quote on our listings to the public is just absurd and I feel like an idiot having to admit that to my clients. Correcting this problem would go a long way toward trying to build up confidence again in our industry. After 10 years of asking for this to get fixed I don't hold out much hope but, hope springs eternal, right?
Thanks, Laura Mullaney
February 3, 2009
Dear MLS Board of Directors,
I am hoping you can help me solve the long-standing problem of deceptive square footage quotes on our MLS system and, if not, perhaps you can direct me to someone who can.
Today is the 10 year anniversary of my quest to have our MLS require all MLS users to use one, authenticated source for the square footage quoted on listings published on MLS yet today, as per usual, a random sampling of several listings on MLS still shows that square footage of listings on MLS can be just about anything the listing agent decides to put in there. This has been the case for many years now and really needs to be corrected. Obviously, without one, agreed upon standard for the source, accuracy and authenticity of square footage figures on MLS our Real Estate Boards continue to fail, with impunity, in their legal duty to protect the public from dishonest real estate practices and I am still requesting that something be done about it soon. Too many realtors are getting away with "puffing up" their square footage on their listings on MLS which throws off all the computations we make on our CMAs and is a huge disservice to the honest realtors who refuse to puff their square footage and whose listings are then rejected by the buyers in favor of the ones with the faked, bigger square footage.
Right now MLS square footage for properties shown in the computer field marked LA: which stands for SqFt Liv Area and from which all our CMA's draw their SQ. FT. data, is auto populated from a feed from the Miami Dade County Tax Assessor but can be manually altered using many possible other sources such as; other public records data bases, an architect's rendering, an appraisal, a builder's spec sheet, a survey, an owner's opinion or a realtor's imagination. There is also no requirement for MLS users to identify the source from which the square footage comes when it has been changed from the auto-populated figure. Some realtors identify the source of the altered square footage in the comments section and some don't. Some diligently upload the document as an attachment on MLS (ideal!). Some realtors identify the source of the altered data but do not have a copy of the document from which they are quoting available to others who wish to check it. And since all of the above sources of square footage figures use completely different methodologies of calculating square footage using MLS square footage figures for "comps" is totally useless and all CMA estimates of value, routinely disseminated to the public upon request, are bogus. All of this is totally unacceptable, unprofessional, completely misleading and easily correctable.
Since the number one thing people want to know, prior to making an offer on a property, is what they are paying on a cost per square foot basis and how that compares to other recent sales, on a cost per square foot basis, realtors have a legal duty to make a reasonable effort to have a competent system in place to facilitate client requests for "comps". When the public asks members of the realtor community for "comps" the realtors have a duty to at least attempt to provide accurate data. While realtors cannot be expected to guarantee the accuracy of all square footage data they acquire from the public records they should not be allowed to knowingly disseminate data to the public which will be relied upon by the public to make important financial decisions that the realtors know may be flawed because there are no standards in place to insure its accuracy. This an open invitation for a class action lawsuit from members of the public who relied upon realtor CMAs to their detriment.
Another problem is that Realtors who choose to overstate the square footage of their listings in the MLS gain an unfair advantage over the honest realtor who declines to engage in such deception. Sellers who hire honest realtors may lose money as their listings do not compare as well to the listings of dishonest realtors who make their listings seem like better deals on a cost per square foot basis by inflating the square footage figures.
Charlette Seidel, manager of Coldwell Banker's Coral Gables office at 1501 Sunset, and I have offered solutions to this problem for the last 10 years, over and over again yet our real estate boards have never acted to fix this problem. Coldwell Banker has a policy that requires a listing agent to have, on hand, proof of square footage claims if they deviate from the public records figures. But we have no control over all the other non-Coldwell Banker realtors who input listings on MLS and whose often flawed data we must rely upon for CMAs which the public demands.
We have suggested, over and over again, that MLS go back to their previous system of blocking any changes on the one computer field that shows adjusted sq. footage which is drawn from the Miami-Dade Public Records and which is used in our CMAs to produce "comps". Obviously, this is not a perfect solution as the public records can be wrong but if the listing agent has an authenticated document that can be posted as an attachment on MLS which authoritatively shows different square footage, calculated using Public Records methodology, then that document can be referred to in the comments section. But, adhering to a strict policy of requiring the square footage quotes in MLS to all come from exactly the same authoritative source is an absolute statistics 101 must. Allowing realtors to post an attachment on MLS claiming different square footage allows for gross errors in the public records. Owners can also lobby the public records to correct their square footage figures. This way realtors and the public will be able to compare apples to apples when they use MLS data to compare properties and not be deceived by the occasional dishonest watermelon thrown in there.
Please let me know how we can go about correcting this problem. I realize that you are not a working realtor out in the field dealing with these issues on a day to day basis and so may not really have insight into how adversely this affects our business and I would be glad to sit down with you and show you specific examples of these problems and explain more fully how and why this really is such a serious and time consuming problem for all us realtors working out here in the trenches.
The market is so difficult right now and with the public really soured on real estate in general we really need to try everything we can to restore the public's confidence in the real estate industry. Having no standards whatsoever that MLS users must adhere to for the square footage we quote on our listings to the public is just absurd and I feel like an idiot having to admit that to my clients. Correcting this problem would go a long way toward trying to build up confidence again in our industry. After 10 years of asking for this to get fixed I don't hold out much hope but, hope springs eternal, right?
Thanks, Laura Mullaney
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