Housing begins to reverse 3-year recession in every US region, but 2nd half looks rocky

Housing begins to reverse 3-year recession in every US region, but 2nd half looks rocky

It was — note the past tense — the worst housing recession anyone but survivors of the Great Depression can remember.

From the frenzied peak of the real estate boom in 2005-2006 to the recession’s trough earlier this year, home resales fell 38 percent and sales of new homes tumbled 76 percent. Construction of homes and apartments skidded 79 percent. And for the first time in more than four decades of record keeping, home prices posted consecutive annual declines.

A staggering $4 trillion in home equity was wiped out, and millions of Americans lost their homes through foreclosure.

Now take a deep breath and exhale. The worst is over.

A Superstar Real Estate Agent Plots His Comeback

A Superstar Real Estate Agent Plots His Comeback

It’s the perfect Miami morning at Carlos Justo’s penthouse — warm and bright, with luxury yachts powering through the sparkling blue Atlantic Ocean some 30 stories below.

Justo, a 53-year-old real estate agent, has been awake since 3:30 a.m. but he shows no sign of fatigue. His eyes scan back and forth, from the high rise condos, to the water, and back to the condos.

An assistant, sitting at a glass table with her back to the stunning view, is talking business. She wants to know whether he will receive any commissions or checks anytime soon.

”Right now, we don’t have any money,” Justo says. He continues talking. Fast. Pacing back and forth, he gazes out the window.

Ruling helps condos collect delinquent fees [Florida]

Ruling helps condos collect delinquent fees

Condominium associations were handed a significant weapon late last week in the battle to collect rent directly from tenants whose landlords have stopped paying maintenance fees.

In a significant development in condo law and a boon to struggling associations, a Florida appeals court has upheld a ruling allowing a court-appointed representative to collect rents from all tenants living in units subject to foreclosure by associations in so-called blanket or master receiverships.

The ruling, attorneys said, validates more than 20 other such receiverships approved over the past four months by circuit courts in Miami-Dade and Broward counties and clears the way for more condos to use the legal tool to significantly boost collections.

When the condo market crashed, many speculators were caught in units they could not afford and could not sell. Instead, many rented them out. Now, grossly underwater, many have stopped paying their mortgages and their associations fees.

Simple steps can prevent buying a home disaster

Simple steps can prevent buying a home disaster

To avoid legal snarls when buying a new home, inspect the home carefully, check legal descriptions closely, read the title report and don’t rely on real estate agents for legal advice, experts say.

Jessie and John Bates thought they got a real deal on their first home, a newly remodeled rambler they bought in 2007 for $190,000. But over the next 18 months, they experienced a series of problems with the 14-year-old home, including failed plumbing, sodden insulation, black mold and rats.

When they tore up a bathroom to fix corroded pipes, their 8-year-old son Tyler had to be rushed to the hospital with breathing problems.

Finally, the Bateses spoke to neighbors and heard the home had likely been used as a meth lab by previous renters. The couple hired a private company to test for chemical residue. The test, which confirmed their fears, cost $283.

How to prevent flipping fraud

How to prevent flipping fraud

Flipping fraud was not invented during this decade’s real estate boom. It helped burst Florida’s real estate bubble during the 1920s and played a key role in the nation’s savings and loan crisis in the 1980s.

But widespread flipping fraud does not have to happen again with the next real estate boom.

Though people determined to commit fraud will always look for weakness in the system, experts say there are ways to make mortgage fraud more difficult.

Some changes have already been adopted or are in the works. In 2007, Florida lawmakers specifically made mortgage fraud a crime for the first time in the state. Before that, such crimes had to be prosecuted federally or under the state’s more generic fraud statutes.

Lifelines for Those ‘Underwater’

Lifelines for Those ‘Underwater’

AS property values in the New York area slide, more borrowers are finding themselves “underwater,” which means they owe more than their homes are worth.
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Now the government is throwing a lifeline to such homeowners, along with similar borrowers nationwide.

This month, the Federal Housing Finance Agency unveiled a new version of its Home Affordable Refinance Program, whereby lenders can offer new mortgages to borrowers even if their home’s value exceeds the mortgage amount by as much as 25 percent — as long as the borrower hasn’t missed loan payments in the past year.

Under the initial plan announced in February, lenders could refinance a loan only if the borrower’s mortgage was no more than 5 percent greater than the home’s value. With property values in many areas down sharply from their peak levels, 5 percent wasn’t enough to help many borrowers.