Saturday, December 02, 2006

Foreclosures in the US

Top 10 Metro Foreclosure Rates
Detroit, Fort Lauderdale, Denver Top the List
By Rick Sharga November 21, 2006

Elevated foreclosure rates could be coming to a city near you.
Nationwide, 318,355 properties entered some stage of foreclosure during the third quarter of 2006, a 43 percent increase from a year ago and a foreclosure rate of one new foreclosure filing for every 363 households, according to RealtyTrac, an online marketplace for foreclosure properties.
Many cities documented foreclosure rates well above the national average. Leading the foreclosure rate charge were Detroit, Fort Lauderdale and Denver. Completing the top 10 were Miami, Dallas, Indianapolis, Fort Worth, Atlanta, Las Vegas and Memphis. Analysts attribute the sharp increase in foreclosures to higher interest rates, a softening real estate market and the upward adjustment of a large portion of adjustable-rate mortgages taken out in the last few years by many American borrowers.
"In the next 15 months, more than $1 trillion in loans are due to adjust upward," said James J. Saccacio, chief executive officer of RealtyTrac. "With such a large volume of these loans set to increase, it is a trend that definitely bears watching."
Top 10 Cities
Many experts believe the real estate slump could get worse before it gets better. On the other hand, a slow housing market with a glut of foreclosures presents more opportunities for buyers and investors to find bargains and profit from those bargains - if they have the patience to buy and hold. Here's a look at the Top 10 foreclosure cities.
Top 10 Metro Foreclosure Rates - Q3 2006
Metro Area
% of Households in Foreclosure
# Households for Every Foreclosure
Foreclosure Rate to National Average
1. Detroit, MI
1.25% 80 4.5
2. Fort Lauderdale, FL
1.14% 88 4.1
3. Denver, CO
1.11% 90 4.0
4. Miami, FL
1.10% 91 4.0
5. Dallas, TX
1.01% 99 3.7
6. Indianapolis, IN
1.00% 100 3.6
7. Fort Worth, TX
0.99% 101 3.6
8. Atlanta, GA
0.94% 107 3.4
9. Las Vegas, NV
0.87% 115 3.2
10. Memphis, TN
0.70% 144 2.5
% of Households in Foreclosure: Total foreclosures divided by the total households in a metro.
# of Households Per Foreclosure: Total households divided by the total foreclosures in a metro (a.k.a. "Foreclosure Rate").
Foreclosure Rate to National Average: Foreclosure rate in a metro divided by the national average foreclosure rate.

No. 1: Detroit, MI
Detroit's foreclosure rate of one new foreclosure filing for every 80 households was more than 4.5 times the national average. Job losses in the automotive manufacturing sector, a sluggish economy, falling home values and upward-adjusting mortgages are pushing more Detroit homeowners into foreclosure. Detroit automakers and suppliers are cutting thousands of jobs as part of a massive industry restructuring, leaving thousands of laid-off or underemployed Michigan residents swimming in red ink.
And with the auto industry showing no sign of recovery, the future looks bleak for Detroit. The city has lost about 100,000 jobs in the last five years, and total employment is expected to continue to decline until the end of the decade, according to a recent report by Moody's Economy.com.
No. 2: Fort Lauderdale, FL
Fort Lauderdale's foreclosure rate ranked second highest in the nation among major metropolitan areas, with one new foreclosure filing for every 88 households - more than four times the national average.
Like the rest of the nation, the Sunshine State is experiencing a cooling economy, plus rises in property insurance premiums and interest rates. These factors have made it tougher for South Florida homeowners to keep up with their house payments.
South Florida real estate agent Bill Gardner said a lot of properties are sitting on the market unsold because the sellers have financed their properties at 100 percent of what the properties are worth, leaving the sellers no room to reduce their asking price. These sellers are more susceptible to default or foreclosure, especially since investors are now more cautious about sinking money into the housing market.
"Most of the people who are buying now actually need a place to live. And I think all of the investors are kind of pulling out of the market," Gardner said. "My only sales I am making are with people who want to occupy. The properties that are selling are the ones that are under-priced."
No. 3: Denver, CO
Two years ago, the metro Denver region was one of the hottest housing markets in the country. Houses sold in one day for full price. Today, foreclosures are so high in Denver that the state just set up a first-of-its-kind foreclosure help hotline. The hotline received 1,400 calls on the first day.
The Denver region posted the third highest foreclosure rate among the country's 100 largest metropolitan areas during the third quarter of 2006. One out of every 90 households in the metro area entered some stage of foreclosure during the quarter, compared with one out of 363 households nationally. Broad economic factors - such as a housing surplus, stagnant prices, layoffs and the heavy use of adjustable-rate mortgages and interest-only mortgages - contributed to Denver's growing number of foreclosures.
No. 4: Miami, FL
Miami ranked fourth, with one new foreclosure filing for every 91 household, although many of the properties entering into foreclosure in South Florida do not move through the entire process. Steep rises in prices the past few years enable many owners to sell out before losing their properties entirely.
Bill Gardner, the South Florida real estate agent, said buyers and investors should take advantage of the market while it lasts, which he doesn't believe will be for much longer.
"I think after the first of the year people are still going to want to move to Miami," he said. "Even though it's slower now, there are still bargains to be had and now is the time to buy.
"People looking for short-term gains, they missed that boat. But for the long haul it's still a good investment."
No. 5: Dallas, TX
Foreclosure postings in the Dallas area have surged in the past two years, and the city's foreclosure rate consistently ranks among the nation's highest. Interest-only mortgages have accounted for about 10 percent of mortgages in Dallas-Fort Worth this year, according to LoanPerformance, a San Francisco company that collects and analyzes mortgage data.
Stagnated income and rising property taxes have also contributed to the foreclosure spike occurring all over North Texas. More than 9,000 foreclosure filings were recorded in Dallas County during the third quarter of 2006, more than twice the number recorded in the third quarter of 2005.
Dallas real estate agent Jon Callaway said the prevalence of 100 percent financing is pushing many area residents into foreclosure.
"As long as 100 percent financing exists there will be an abnormal amount of people getting into financial troubles and unable to sell their home," he said. "The majority of the homes we see in trouble across the metroplex are 100 percent financing loans."
But Callaway believes the Dallas housing market is showing signs of recovery, an opinion supported by the fact that the area's foreclosure activity rose at a much slower pace than most of the other cities in the top 10.
"Investors from California, Arizona, Florida, Utah and eastern states are soaking up inventory, speculating we are going to be the next hot spot," he said. "I do see us pulling out of the stagnated market we have been in for the last five years and moving forward at a 5 to 7 percent appreciating pace."
No. 6: Indianapolis, IN
Like Detroit, Indianapolis is a big automotive industry supplier that has suffered economic setbacks, and falling home prices have made it more difficult for homeowners in jeopardy to bail out with some profit. Of the top 10 cities on the list only Indianapolis reported decreasing foreclosure rates, with a 2 percent dip from the previous quarter.
No. 7: Fort Worth, TX
In Fort Worth, the median price of a home sold in October - $143,000 - is down 3 percent from last year, according to the North Texas Real Estate Information System. Stagnated income and rising property taxes have contributed to the foreclosure spike occurring in Fort Worth and all over North Texas.
No. 8: Atlanta, GA
Atlanta ranked eighth in the country in foreclosure rate, reporting one new foreclosure filing for every 107 households - more than three times the national average.
"Mortgage fraud, liberal lending practices, and inexperienced investors, along with corporate layoffs and slashed pension funds are contributing causes for the high foreclosure rate," said Atlanta real estate agent Ken McCall.
No. 9: Las Vegas, NV
Experts say Las Vegas is outpacing the national rate as homeowners succumb to rising adjustable interest rates. Some homeowners who bought with no down payment now owe more than their homes are worth. And the foreclosure rate in Las Vegas shows no signs of slowing, with some predictions it could triple in the next six to nine months. One-third of the homes bought in Las Vegas in 2004 and 2005 were purchased using adjustable-rate mortgages. And as mortgage payments increase sharply for those with adjustable rate mortgages, the city's foreclosure rate could continue to rise by the end of the year and in early 2007.
No. 10: Memphis, TN
Memphis rounded out the Top 10 list with a foreclosure rate of one new foreclosure filing for every 144 households. The city's foreclosure rate was more than 2.5 times the national average and was up 2 percent from the previous quarter.
Memphis broker Tommie Criswell-Jones said foreclosures are present for a variety of reasons, including high-ratio loans, bankruptcy frequency, poor underwriting and mortgage fraud. She said Memphis ranks No. 8 in the country for mortgage fraud.
Criswell-Jones noted that the Memphis market is "slow and steady" and has not seen the dramatic increases in home prices in recent years. She cited strong consumer confidence and recent corporate relocations as factors that will help create a more balanced housing market in the near future.
"Sections of our MLS area have higher inventory than demand, but in those areas sales are still considered strong," she said. "We expect to see the local housing market adjust somewhat in line with the national trends, with a gentle slowdown in new home starts. We expect a more balanced market with sellers and buyers, and sales are expected to be at or slightly above 2006."

Friday, December 01, 2006

And I thought being in the doghouse was a bad thing...

Daily Real Estate News December 1, 2006
Sell a Fancy Dog House, Earn a Commission

The housing market is going to the dogs – literally.Doggie Mansions, a company in West Palm Beach, Fla., that builds designer doghouses priced anywhere from $10,500 to $100,000, is offering 10 percent commissions to real estate professionals who make the sale.
Partners (and dog lovers) Stacy Small and Donald Gorbach, a veteran real estate practitioner, started the company last summer and quickly realized the value of paying commissions. "On a $25,000 home, the commission comes to $2,500, and [real estate practitioners) don't have to split it with anybody," says Small, who goes by the title Chief Barketing Officer. "This way we can have a sales force in place."
Cincinnati Bengals quarterback Carson Palmer is among the company’s customers. He spent $25,000 on a two-story, brick-faced Doggie Mansion for his three dogs – two Rottweilers, Chuck and Homer, and a Maltese named Muffin. The 8-by-10-foot luxury dog retreat is equipped with air conditioning, a brushed micro-velvet suede couch, ceramic tile floors, large arched windows, a flat-screen plasma TV that loops classic canine movies like "Benji" and "Rin Tin Tin" and, of course, football-shaped doggie beds. The mansions take two to four weeks to build, and can be shipped around the world.
The company's Web site, www.doggiemansions.com, includes listings of dog houses.

What Do Buyer's Want?

From Real Trends Email Update #858, dated November 29, 2007:

===What is today's consumer's #1 incentive in buying a home?===
When consumers were asked recently what incentive appeals to them most in buying a home, three out of four chose “closing costs paid.” “Not surprising, this would represent a bottom-line savings of several thousand dollars in normal closing cost fees and services,” noted Michael Bearden, president and CEO of HouseHunt, Inc., a consumer-oriented Internet firm which conducted the national e-mail random survey. “In contrast, only two percent of respondents chose a paid trip or vacation as their top incentives.”
Placing a distant second in the homebuyer incentive survey was “free upgrades,” with nine percent of the vote. In third place at six percent was “free property inspection.” Then came “free appliances” and “flooring credits,’ at three and two percent respectively. The incentive scoring last at one percent was “landscaping credits.”Added Bearden: “Our latest national Current Market Conditions survey showed the seller-buyer ratio at 52%-36% ratio, with 12 percent reporting 50-50.
The survey also showed that it is taking longer to sell a home – 74 percent said more than 60 days -- with only 51 percent of sellers getting more than 95 percent of their asking prices. Only 11 percent reported price appreciation of 10 percent or more in the past year. Multiple offers have almost disappeared. We anticipate that results from our fourth quarter market conditions survey in late December will be similar.”

Monday, November 06, 2006

AT&T Launches Remote Home Monitoring Video Service Nationwide

New Offering Advances AT&T Wireline-Wireless Convergence Strategy by Delivering Sensor-Based Video Monitoring Via Pc Or Cingular Wireless Phone
San Antonio, Texas, October 26, 2006
Imagine being on the road and receiving real-time video on your wireless phone when your children arrive safely home from school. Or checking in on a live video feed of your weekend getaway property while you're in the office.
AT&T Inc. (NYSE:T) today launched an innovative new home monitoring service that will help customers stay more connected to their homes and families while they are away. The new service, which is available nationwide, enables customers to use both personal computers and Cingular wireless devices to access high-quality, streaming digital video and other real-time data and information from their homes — at virtually any time and from anywhere.
The new service is an example of AT&T's continuing commitment to innovation, and its strategy for delivering converged, IP-based services that enable customers to access content, critical applications and information virtually anytime, anywhere, and using any device.
The AT&T home monitor service combines live and recorded video (non-audio) capabilities with a range of environmental sensor options to provide customers with a powerful, flexible toolkit to help them stay connected to the people and things they value most. For example, the service allows users to remotely control lighting in their homes, and it can provide a range of alerts and reports on home conditions, such as motion, door and window activity, water leakage, and temperature changes.
"Keeping track of home activities is increasingly challenging today, as we spend more time on the road and on the run," said Susan Johnson, senior vice president of Business Development at AT&T. "The new AT&T home monitoring service will provide an affordable, easy-to-use solution for a variety of challenges in managing a household. This service is ideal for a wide range of potential applications, from keeping an eye on children, elderly parents or pets to monitoring a second home or vacation home."
Users can easily customize alerts and actions based on their specific needs. For example, a user can program the service to send a text message alert to a cell phone when motion is detected in an area of the home, while at the same time automatically turning on lighting and recording video of the same area.
The service is available via AT&T to customers of Cingular Wireless services, and can be accessed via virtually any Cingular wireless phone or PDA capable of supporting Internet access and Java, as well as nearly any broadband-enabled PC. The service is optimized for residential customers who subscribe to AT&T Yahoo! High Speed Internet as well as Cingular services.
The offering includes a starter package of equipment for a one-time cost of $199. The starter packaged includes:
A pan-and-tilt IP camera
Two power modules that enable device connectivity via home power outlets
A wireless door/window sensor
A wireless gateway for connecting equipment to a home network
All needed software and instructions
Thereafter, the service is provided for $9.95 a month.
Additional equipment is available that expands the home monitoring solution, such as additional cameras and contact sensors, wireless temperature and water sensors, and wireless power controls for light fixtures or other appliances.
All monitoring equipment is controlled via an integrated Web-based portal. Users can access these live video feeds and reports from the portal, and establish customized instructions for the service to provide alerts or to take action under specific conditions.
The AT&T home monitoring service is available today exclusively via AT&T online orders and a special customer service number. AT&T currently is marketing the service only in select U.S. states. Customers can receive additional information or order the AT&T home monitoring service by calling 800.237.4588 or by visiting www.att.com/remotemonitor.

Wednesday, November 01, 2006

Tuesday, October 31, 2006

The Vivio's Haunted Cabin


The staff at Vivio's closes for the evening and transforms one of the area's most popular restaurants into "The Haunted Cabin". This Halloween more than 700 people ventured through "The Cabin" compliments of Vivio's.

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Monday, October 16, 2006

Winter-proof Your Home

'Tis the season................

NEW YORK, October 9, 2006 — Winter storms can wreak havoc on your home, and account for a large percentage of homeowners insurance claims, so be prepared by winter-proofing your home, warned the Insurance Information Institute (I.I.I.).Winter storms accounted for 7.8 percent of catastrophe losses from 1986-2005, with losses averaging more than $1 billion a year over that period. Water damage and freezing account for approximately 17 percent of all homeowners insurance claims, while wind and hail account for close to 50 percent. The average claim for water damage and freezing is $5,095, according to the I.I.I.However, many winter-related disasters can be prevented if you take a few simple steps to protect your home from snow, wind and freezing temperatures. “With the weather still relatively mild, autumn is the perfect time to winter-proof your home,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I.The first step is to make sure your home and possessions are properly insured. “Standard homeowners policies cover winter-related disasters such as burst pipes, ice dams and wind damage caused by weight of ice or snow, as well as fire-related losses,” noted Salvatore. Coverage for flooding is available from the National Flood Insurance Program, but is generally purchased through your insurance agent or company representative. Winter-related damage to cars is often covered under the comprehensive portion of an auto insurance policy.The Old Farmer’s Almanac is predicting colder than normal temperatures and above average snowfall in many areas of the country this winter.To prepare for winter, the I.I.I. offers the following tips:

OUTSIDE YOUR HOME
Clean out gutters. Remove leaves, sticks and other debris from gutters, so melting snow and ice can flow freely. This can prevent ice damming—a condition where water is unable to drain through the gutters and instead seeps into the house causing water to drip from the ceiling and walls.
Install gutter guards. Available in most hardware and home stores, “gutter guards” prevent debris from entering the gutter and interfering with the flow of water away from the house and into the ground.
Trim trees and remove dead branches. Ice, snow and wind can cause weak trees or branches to break, causing damage to your home or car, as well as injury to people on your property.
Repair steps and handrails. This may prevent someone from falling and being seriously injured. Broken stairs and banisters can become lethal when covered with snow and ice.
Seal cracks in holes in outside walls and foundations. Use caulking to protect water pipes and make sure that skylights and other roof openings have proper weather stripping to prevent snowmelt from seeping in.

INSIDE YOUR HOME
Keep the house warm. Set the thermostat for at least 65 degrees, since the temperature inside the walls, where the pipes are located, is substantially colder—a lower temperature will not keep the pipes from freezing.
Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic, it can cause snow or ice to melt on the roof. Water can then re-freeze, causing more snow and ice to build up. This can result in a collapsed roof, and can contribute to ice damming. Ideally, the attic should be five to ten degrees warmer than the outside air. Well-insulated basements and crawl spaces will also help protect pipes from freezing. You may also consider insulating unfinished rooms such as garages to keep pipes from freezing.
Have the heating system serviced. Furnaces, boilers and chimneys should be serviced at least once a year to prevent fire and smoke damage.
Check pipes. Look closely for cracks and leaks and have the pipes repaired immediately. Wrap exposed pipes with heating tape.
Install an emergency pressure release valve in your plumbing system. This will protect against the increased pressure caused by freezing pipes and can help prevent your pipes from bursting.
Make sure that smoke and fire alarms are working properly. Residential fires increase in the winter, so it is important to protect your family with working alarm systems. Also, consider installing a carbon dioxide detector, since a well sealed home can trap this toxic gas.
Learn how to shut the water off and know where your pipes are located. If your pipes freeze, time is of the essence. The quicker you can shut off the water or direct your plumber to the problem, the better chance you have to prevent pipes from bursting.
Hire a licensed contractor to look for structural damage. If damage is discovered, you can have it repaired immediately rather than waiting for a more severe problem to occur. Also, ask about ways to prevent water damage resulting from snow-related flooding. Plastic coatings for internal basement walls, sump pumps and other methods can prevent flood damage to your home and belongings.
If you are going to be away for an extended period, take special care. Turn the water off and/or have the water system drained by a professional to keep pipes from freezing or bursting. Also, hire someone to check your home on a regular basis.

If there is a problem, it can be fixed quickly, thus lessening any damage. Activity at your home will also reduce the likelihood that it will be burglarized.
For more information on homeowners insurance, go to the I.I.I. Web site: http://www.iii.org/homei .

Flood insurance information is available from the NFIP: http://www.floodsmart.gov .

For additional tips on winter-proofing your home, as well as information on how to prepare your home if it is going to be vacant, go to the Institute for Business & Home Safety: http://www.IBHS.org .

Thursday, October 12, 2006

What a morning!


Sunday it was 74 degrees and there was a steady stream of golfers out on the course. The photos show what we woke up to Thursday. I never remember this much accumulation so early. I am certainly not ready for snow but it was so beautiful outside. The snow melted off the leaves and the brilliant colors against the withe snow made for a few spectacular photographs.
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Saturday, September 30, 2006

If it were that easy....

The real estate business is one of the most interesting, competitive, exciting, and frustrating businesses there is and I wouldn't trade it for anything. Bravo's "Million Dollar Listing", a show about Malibu, California, real estate agents trying to sell homes, makes it look easy. I guess everything in the Malibu lifestyle probably isn't like it is anywhere else in the world. This cartoon is a bit closer to reality.