 Fannie Mae and Freddie Mac will allow renters who can pay their rent to remain in foreclosed homes and buildings. Other lending institutions ought to follow suit. MORTGAGE giant Fannie Mae offers a smart and compassionate plan to keep renters of foreclosed properties in their homes. Other lending institutions would be wise to follow suit, this time with a plan to allow renters living in foreclosed properties — who can pay their rent — to stay in their homes. Sibling company Freddie Mac has a similar effort in the works. The two own or guarantee about half of the $11.5 trillion in outstanding U.S. home-loan debt, adding heft to their rescue efforts. An estimated 2.2 million Americans are vulnerable to foreclosures because they took out subprime-mortgage loans. Hidden within the numbers are thousands of renters who stand to lose homes despite paying their rent. Here's how the new policy works: Renters who can pay their rent would be allowed to sign new leases with lenders while the property is up for sale. Renters continue to have a roof over their heads. Rent payments allow lenders to recoup at least some of their costs. The alternative is mass evictions; these have proven not to work. For one, many of those evicted are low-income renters and finding new, affordable housing presents a stiff challenge. Properties left empty blight neighborhoods, inviting graffiti and other crimes. Abandoned homes take on an unappealing aura of neglect certain to push down the values of nearby homes. Banks incur significant expense in trying to maintain an empty home or building after a foreclosure. The solution is to keep buildings occupied until they can be sold. A further reason to go down this path is that an occupied building, one where tenants are paying the rent, is one less building that doesn't have to be rushed into a fire sale. Down the road, when the building is sold, the new owner may honor the lease. Or at the very least, tenants had shelter for a little longer and the bank holding the mortgage received rent. Fannie and Freddie last month suspended foreclosure sales on occupied single-family homes and evictions from those properties through the holidays until Jan. 9. That action should help 7,000 to 10,000 families remain in their homes. Banks and state lawmakers searching for ways to assist renters ought to see Fannie Mae's new policy as a model. Amid the gloom of record foreclosures, creative solutions like this one shine. The Orlando Foreclosures Expo February 7th and 8th 2009 http://www.foreclosuresexpo.com
For Immediate Release Sponsors and exhibitors embrace first-of-its-kind Orlando Foreclosures Expo The innovative event, which will help homeowners facing foreclosure find options to sell or remain in their homes, is designed to serve as a forum for real estate professionals involved foreclosures and short sales. Orlando – The Orlando Foreclosures Expo is an innovative event. For the first time, a diverse group of individuals and companies that work with foreclosures and short sales will gather under one roof to network and educate. Homeowners who are facing foreclosure can speak to investors interested in buying properties, and professionals who can provide them with options if they want to sell their house, or remain in it and avoid foreclosure. First-time investors and seasoned investors can meet real estate wholesalers, brokers and agents who have a multitude of bank-owned properties at below-market rates. The Expo ( www.foreclosuresexpo.com) - which will take place at the International Plaza Resort & Spa on February 7-8, 2009 – is attracting a wide range of sponsors and exhibitors, including Wachovia, Orlando Sentinel, Southeast Professional Title, Moneycorp Inc., Bankers REO, Coast to Coast Investments, Real Living Real Estate Solutions, Aston Martin and Luxautica. “When I created the Expo, I had a strong feeling that there was a need for an event like this,” said Phil Peachey, the event’s founder and organizer, “It is encouraging to see that so many companies see the viability of the Expo, too.” The foreclosure crisis continues to affect everyone from homeowners and mortgage brokers to real estate agents and communities, especially in Central Florida. Financial experts agree that the real estate market – and the economy as a whole – will not improve until the inventory of available homes shrinks. The Expo will serve as a forum where everyone from real estate agents and brokers, real estate attorneys and REO department representatives from banks to lenders, investors, wholesalers, builders and others in the foreclosure industry can gather under one roof to exchange ideas, offer guidance and conduct business. “It is unheard of to have a venue where you can talk to so many people in the industry at the same time,” said Greg Schmid, who is head of sales and acquisitions at First Alliance Capital, LLC, a property wholesaler based in Orlando that will have a booth at the Expo. “This will be the ultimate networking event for anyone involved with foreclosures and short sales. “Typically, we deal with seasoned investors, but we would like to work with first-time investors because there is a lot of inventory but not enough buyers,” Schmid added. “This is an ideal time if you are looking to buy your first investment property. Just as it is best to get involved in the stock market when prices are low, it makes sense to invest in real estate when you can purchase a property in the current market.” The Expo will also allow homeowners in danger of foreclosure to list their properties and the minimum price they need. There will also be a help desk where people facing foreclosure can talk to real estate professionals about their options. For industry professionals, the event will provide an opportunity to discuss important issues. “The economy, the market, regulations, loan processes – everything in the real estate industry seems to change daily. The Expo will serve as a place to troubleshoot, and to explore new ways to do business,” said Debbie Farnell, who is owner of Orlando-based Southeast Professional Title, a sponsor and exhibitor. “It will help to have so many different types of people within the industry in the same place at the same time.” The Orlando Foreclosures Expo will break down barriers for investors, real estate professionals and homeowners alike, Peachey explained. “Most people, even real estate professionals, do not have access to foreclosure listings or to the people who regularly buy and sell them. Wholesalers typically offer their foreclosure properties to a very select few. Also, most REO (Real Estate Owned) departments of banks will not deal with the general public,” Peachey said. “The foreclosure industry has been more like a private club where the public cannot obtain a membership. This event will change that, allowing investors of all levels to access properties. “For people facing foreclosure, the Expo will give them access to everything from lenders who can help them find solutions they might not have known existed to investors who are looking for properties,” Peachey added. “There will be more options for homeowners, and for real estate sales professionals that have a vast inventory of properties, to find a pool of qualified buyers at the Expo than relying on the MLS.” Peachey is getting such an overwhelming response from sponsors, exhibitors and interested attendees that he plans to hold another Orlando Foreclosures Expo later in 2009. He also plans to organize similar events across Florida in areas like Tampa/St. Petersburg, Miami, Jacksonville and Tallahassee. ### Media Contact: Jeff Louderback 407-474-6149 jlouderback@cfl.rr.com http://www.foreclosuresexpo.com
Orlando – Prospective sponsors, vendors and participants of the Orlando Foreclosures Expo – which will be held on February 7-8, 2009 – can learn more about what the first-of-its-kind event will entail at the Expo’s pre-event and holiday party on Thursday, December 18 at the Luxautica Car Club near the Mall at Millennia. At the party, donations will be accepted to benefit the Russell Home for Atypical Children, which is an Orlando-based non-profit organization for brain-damaged children located in Orlando. “From the first moment that I visited the Russell Home, I wanted to have an event that would raise awareness and funds for this organization, which has a fascinating story and does important work,” said Phil Peachey, who is the founder of the Orlando Foreclosures Expo ( www.foreclosuresexpo.com). “Our party on December 18 is an ideal opportunity to get an idea of what the Expo is all about, and benefit a worthwhile cause that you won’t soon forget if you see the Home first-hand.” At the pre-event and holiday party, Russell Home director Janet Russell Nixon will give a presentation telling the organization’s story. The Russell Home ( www.russellhome.org) was founded by Vantraese Russell in 1951 when the woman who was affectionately called “Grandma” was asked to care for a 3-year-old with Cerebral Palsy. The child, whose name is Marilyn, is still a resident at the home today. Over the years, more children whose parents could not give them proper care were taken in by Grandma Russell, who transformed her house into an organization that offers full-time residency and care, day care and part-time care for brain-damaged children. Today, the Russell Home has more than 60 full-time residents (many who are adults and have lived their since infancy) and a full-time staff of 21. Grandma Russell died in 2003, but her daughters have continued her mission. The Russell Home does not receive federal, state or local funding and relies heavily upon private donations. After Janet Russell Nixon gives her presentation, Peachey will give a brief talk about the Expo, which he created as a forum for homeowners facing foreclosure and looking to sell their homes, and for real estate industry professionals who are involved in foreclosure-related work. The Expo, which will take place at the International Plaza Resort & Spa, will bring everyone from real estate agents and brokers, real estate attorneys and REO department representatives from banks to lenders, investors, wholesalers, builders and others in the foreclosure industry under one roof. The Expo will also allow homeowners in danger of foreclosure to list their properties and the minimum price they need. In addition, homeowners facing foreclosure can visit a help desk, which will be staffed by real estate industry professionals who can provide advice on how the homeowners can resolve their situation. ### Media Contact: Jeff Louderback 407-474-6149 jlouderback@cfl.rr.com 
      “SeaForever” Located at the very top of Seven Mile Beach, with a spectacular view that curves down the length of that prestigious stretch of Cayman Islands sand, especially with its twinkling lights at night, this stunning home, called “SeaForever”, is stunningly spectacular. Comprising well in excess of 10,000 square feet, and three stories of elevation, “SeaForever” is set on one of Grand Cayman’s most charming residential streets, historic Boggy Sand Road” -- and it shows in every architectural and interior detail of this fabulous manse The gate of its charming wrought iron fence, which encloses a tropical sand yard with lush landscaping, leads to a set of stone stairs up to a custom solid hardwood 8-foot front door, offset with glass panes on either side, through which the shimmer of the sea can be seen. Once opened, you are swept into a marbled (24x24-inch travertine laid on the diagonal) entrance foyer with a wrought iron chandelier, which leads to a 30-foot high living/dining great room with six tall glass panes (and smaller panes above) framing the stunning Caribbean Sea view beyond. It is simply breathtaking. Accommodating upholstered sofas and settees form a comfortable sitting area beneath whirling Punjab-style fans which softly keep the air circulating from the high, beamed ceiling. A tapestry hangs from one of the high walls, above an arched passageway which leads to the large state-of-the-art gourmet kitchen – a cook’s dream come true. Here, in the heart of the house, handsome custom crown molding cabinetry and granite countertops strike the tone, with two large free-standing work stations, one with a sink. Upholstered bar stools along one of the work stations invite guests to enjoy a glass of wine while the salad is being tossed and they chat with the chef. There’s a 48-inch commercial grade gas range, a Subzero fridge, a wine cooler, an icemaker and a trash compactor. A triple stainless steel sink unit surrounded by a granite countertop takes pride of place with its own window above looking down all of Seven Mile Beach. This has to be the most beautiful kitchen sink in the world! This fabulous custom cabinetry is repeated throughout the house. The library/office/den is richly paneled in warm mahogany throughout, featuring built-in bookcases and an entertainment centre and computer station as well. A handsome, masculine leather-upholstered sofa with matching armchairs and a large ottoman are centred on an oriental rug. Custom wooden plantation shutters ensure privacy and security, and a beamed ceiling finishes the rich touch of the floor-to-ceiling wood cabinetry. There’s also the custom cabinetry of the master bathroom, which is really more a bath/dressing suite, with twin granite-topped counters, one a vanity station, the other twin sinks, both backed by large mirrors. Topping it off is a stunning marble pillared Jacuzzi, surrounded by high glass bay windows. Additionally, there’s a glass walk-in shower stall with his and hers shower stations for individual temperature control. There’s also a large walk-in closet with marble-topped central cabinetry and wall-to-wall clothes racks as part of the dressing suite. One might never want to finish dressing in such indulgent surroundings. The master bedroom has two large glass doors with matching side panes which overlook the patio, Jacuzzi and pool, and capture the exquisite view of the sea beyond, and Seven Mile Beach all the way down to George Town Harbour. A plantation-style mahogany four-poster bed, armoire and area rug simply furnish the room, graced by a Gaughin painting of bare-breasted island women for just the right seductive touch. From the entry/living area, a curving marble double staircase with mahogany treads and filigree wrought iron custom railings sweeps up to the second story’s landing with mahogany plank flooring, a reading area, and windows with exceptional views to the sea beyond and the gardens below. This leads to the additional four upstairs en suite bedrooms, also outfitted in plantation style hardwood furniture and each with its own distinctive four-poster. All have crown moulding, ceiling fans, and cool marble floors with area rugs. The front bedrooms have French doors with wooden shutters leading to Juliette balconies with garden views. The two oceanfront suites each open on to a large covered balcony with views down the beach to the cruise ships in the harbour. The seaside exterior of the home opens to a white colummed portico which frames an infinity edge pool flanked by a 10-person custom built-in spa, and an 8-foot deck-mounted fountain, all overlooking a pristine white sand beach and built atop a strong seawall elevation for protection from storms. Additionally, a large Oceanside deck patio features a dining area with a built-in stainless steel barbeque area. Steps lead down to the sea from a locked gate area and there is an exterior beach shower station and foot bath leading off the beach. Hidden beneath the main living spaces is a basement (a true rarity in Cayman), with a complete caretakers’ apartment (bed/bath, kitchen, living/dining w/private entrance); a fully equipped owners’ gym; a state-of-the-art infinity pool equipment room w/storage; a workshop; a 2-car parking stall; a dive tank washing station; a beach bath/shower area with duel shower heads, and a private below deck beachfront game area with table and chairs. In addition to being aesthetically magnificent, this is a “smart house”. Computer wiring to all doors, windows and light switches make these controllable from your computer anywhere on the globe! Additionally, all windows throughout the house are hurricane impact rated and have custom blinds. The house is built of foam block construction and reinforced concrete pool and deck. There is a large pad-mounted stand-by generator and the house is topped by a metal hurricane-resistant standing seam roof. Really, it doesn’t get any better than this! At “SeaForever”, you will want to live forever! Priced at a mere $10M. email: homes@totallyflorida.com
So many homes are in foreclosure in Orange County that elected leaders are preparing to spend another $1 million next year to mow grass and clear lots at abandoned homes. County leaders also are expected to adopt a new rule allowing mosquito-control workers to enter vacant property to deal with fouled pools, and another rule requiring lenders to register homes that are going into foreclosure. Both measures, set to be adopted in January, would keep properties from going untended for months or years while homes are tied up in court or sales proceedings. Once properties show signs of abandonment, theft and vandalism usually follow. More than 18,000 homes are in the foreclosure process in Orange, officials said, up from about 5,000 in 2006, the year county officials saw the first spike in foreclosures. County officials also are trying to determine whether Orange can fine lenders that allow homes and yards to go to seed during foreclosure, a move adopted by other local governments as the cost associated with the upkeep of vacant homes increasingly falls to taxpayers. For instance, Orange County is expected to run through its 12-month budget of $400,000 for lot-clearing in less than three months. The county's entire code-enforcement budget originally was set at $5 million for the fiscal year ending next Sept. 30. The extra $1 million marks a 20 percent spike. The money would come from unspent funds or reserves in January, officials said. In addition to foreclosed houses, county officials expect that a growing number of companies will go out of business and abandon their sites. "Experts tell us we're in the first inning of a long game on commercial foreclosure," said deputy County Administrator Linda Weinberg. So far this year, code-enforcement officials say they have logged 7,437 lot-cleaning violations, up from 4,233 cases in all of 2006 and 5,170 in the last fiscal year. Violations related to swampy pools, or broken pool fencing, climbed from 302 cases in 2006 to 438 in 2007-08 and 673 this year. "It's disturbing," said Commissioner Linda Stewart, whose large east Orange district has seen the most foreclosures recently. "I don't think this is going to be gone in two years. It's a long-haul issue." The Orlando Foreclosures Expo February 7th and 8th
http://www.foreclosuresexpo.com
Americans still see real estate as their best shot at wealth. It may be wishful thinking.By JAMES R. HAGERTY Over the past few years, Americans have had a brutal lesson in the risks of real estate. House prices have crashed more than 35% in some parts of the country, millions of people are losing their homes to foreclosure, and banks are failing. The takeaway? Many Americans still see real estate as their best shot at wealth. In survey after survey, people expect prices to bounce back -- in some cases, as soon as six months from now. The Journal Report Those hoping for a quick rebound are likely to be disappointed. Economists and other pros generally say home prices won't bottom out before the second half of 2009, and some don't see a bottom until 2011 or 2012. Even when they stop falling, prices may scrape along the bottom of the rut for years. Down the Road And longer term? Over the next 10 to 20 years, housing economists expect prices will rise again -- but, on average, probably not nearly as much as they've averaged over the past decade. That isn't to say that some places won't experience booms (and busts). But, the experts say, you should generally expect house prices to rise just a bit more than inflation and roughly in line with household income. Karl Case, an economics professor at Wellesley College whose name adorns the S&P Case-Shiller home-price indexes, has studied U.S. house prices going back to the 1890s. Over the long run, he says, home prices tend to increase on average at an inflation-adjusted rate of 2.5% to 3% a year, about the same as per capita income. He thinks that long-run pattern is likely to continue, despite the recent choppiness. Other experts make similarly modest predictions. William Wheaton, a professor of economics and real estate at the Massachusetts Institute of Technology, says he expects house prices to increase at a rate roughly one percentage point higher than inflation over the long term. Celia Chen, director of housing economics at Moody's Economy.com, a research firm, expects house prices to increase an average of around 4% a year over the next couple of decades. Some experts say it's a bad idea to count on your home rising in value at all. People should think of their own homes mainly as places to live, not as investments, advises Kenneth Rosen, chairman of the Fisher Center for Real Estate at the University of California, Berkeley. Sure, home mortgages provide tax benefits, and most homes appreciate in value over the long run, he says, but there is always risk. For all of those forecasts, many Americans are undaunted. Consider three surveys, all from October. In a poll of 2,000 adults, real-estate-data provider Zillow.com found that 61% believed the value of their home would either remain level or rise over the next six months. Another survey of more than 1,000 homeowners, sponsored by real-estate-services firm Realogy Corp., found that 91% thought that owning a home was the best long-term investment they could make. And an online survey of 5,000 people commissioned by Citigroup found that just 32% believed it was a good time to invest in stocks -- but 51% said it was a good time to buy a home. Real Time Economics [Your Money Matters] The S&P/Case-Shiller home-price index showed accelerating price declines in September. See a sortable chart of home prices, by metro area. "I just believe in real estate," says Jason Schram, a lawyer in Chicago who has bought two rental properties this year at what he considers fire-sale prices. "I've seen over and over people I know build wealth through rental real estate, and that's the path I intend taking, even though it's a bit bumpy at the moment." Location, Location So, as homeowners and buyers look ahead, what factors will determine whether their homes are really likely to rise in value, rather than just in their dreams? What are some of the bullish signs -- and some of the bearish ones? In the long term, house prices are driven by fundamentals that are hard to predict: immigration, birth rates, the size and nature of households, and incomes. The trick is to figure out where job and income growth will be strongest and where immigrants and others will want to live. William Frey, a demographer and senior fellow at the Brookings Institution, a think tank in Washington, says young people and immigrants are likely to flow to Florida, Georgia, the Carolinas, Tennessee, Virginia, Nevada, Arizona and some of the more affordable interior parts of California. These areas generally have lower housing costs than the Pacific Coast or Northeast and job growth from modern industries and leisure businesses, he says. Areas with little immigration and low growth or falling populations are likely to include Michigan, Ohio, the Dakotas, Iowa, western Pennsylvania and upstate New York, Mr. Frey says. Hit Parade Newland Communities LLC, a San Diego-based planner and developer of neighborhoods, employs a full-time researcher to study long-term housing demand and ranks metro areas in terms of their growth prospects. Among those near the top of Newland's hit parade are Washington, D.C., Raleigh and Charlotte, N.C., Atlanta, Dallas, Houston, Phoenix and Las Vegas, says Robert McLeod, the developer's chief executive. All of them, Newland believes, will keep growing because they have well-diversified regional economies and other attractions, including mild climates. With the exception of Washington, they all have fairly affordable housing costs. Washington has a highly educated work force, high incomes, a stable source of government-related jobs and rapidly expanding technology firms, Newland says. "The older industrial cities are going to suffer" from shrinking employment and forbidding weather, says Mr. Rosen of the University of California. Some Sun Belt cities, including Atlanta, also could languish if traffic jams and sprawl ruin their charms, he says. Among metro areas that Mr. Rosen expects to do well in the long run are Albuquerque, N.M.; Boise, Idaho; Salt Lake City; Seattle; Portland, Ore.; Denver and Colorado Springs, Colo. He says those places generally offer "urban vitality" and "easy access to outdoor activities" combined with affordable housing and good job-growth prospects from modern industries, such as biotechnology. Still, just looking at population trends isn't enough. Prices in the crowded coastal areas tend to be more volatile, rising and then falling much faster during booms and busts than do inland areas, Mr. Case notes. Shortages of land and building restrictions make it hard for builders to respond quickly when demand for housing rises in coveted neighborhoods near the coasts; further inland, it's usually much easier to find vacant homes or land, and so sudden movements in prices are less likely. For instance, despite rapid growth, home prices in Texas cities have tended to climb only gradually. Those cities typically have plenty of room to sprawl, and Texas regulates land use less strictly than many other states. Supply swells to meet demand. [Your Money Matters] Stephen Webster / Wonderful Machine The Wonder Years What's more, no one can assess the outlook for housing without considering the effects of 78 million aging baby boomers. For instance, some housing experts believe the boomers will be much less likely than their parents to settle for sun and golf in their retirement; they may prefer urban settings with lots of cultural life or to live nearer friends and families. That could mean higher demand -- and increased prices -- for housing in urban neighborhoods. Most of this is just guesswork, though. "A lot of people have theories about the baby boomers," says Mr. Frey, the Brookings demographer, but boomers always have tended to confound expectations. Dowell Myers, a professor of urban planning and demography at the University of Southern California, warns that the retirement of boomers over the next two decades is likely to depress house prices in many areas. As boomers relocate to retirement homes and cemeteries, there will be a lot more sellers than buyers in parts of the country, he says. "It's going to really mess up the housing market," says Mr. Myers. He predicts that this "generational correction" will be larger and longer-lasting than the current slump. To get a sense of the effects of aging boomers, Mr. Myers looks at the number of Americans 65 and over per 1,000 working-age people. He sees that number soaring to 318 in the year 2020 and 411 in 2030 from 238 in 2000. Many people over 65 buy homes, of course, but as they get older they become more likely to sell than buy. People aged 75 to 79 are more than three times as likely to be sellers than buyers, Mr. Myers says. In some areas, younger people will be happy to buy (and probably renovate) those boomer nests. The problem, Mr. Myers says, will be in places where lots of older people are selling and few young people are settling down. He says the effects will be strongest in the "coldest, most congested and most expensive states rather than the high-growth states of the South or West." Among the states where Mr. Myers sees downward pressure on prices within the next decade: Connecticut, Pennsylvania, New York and Massachusetts. Of course, applying demographic trends to house-price forecasts can be hazardous. Economists N. Gregory Mankiw and David Weil predicted in a paper in 1989 that demographic trends would lead to a "substantial" fall in real, or inflation-adjusted, home prices over the next two decades "if the historical relation between housing demand and housing prices continues." They reasoned that baby boomers were coming to the end of their prime house-buying years and that the smaller baby-bust generation would bring lower demand for housing. That warning proved, at a minimum, premature. Despite the recent drop, the average U.S. home price is up about 35% in real terms since the end of 1989, according to the Ofheo index. Messrs. Mankiw and Weil both declined to comment. Few people who invest in housing have time to follow these academic debates. For nearly four decades, Rich Sommer and his wife, Carolyn, have been investing in rental properties in and near Stevens Point, Wis. Mr. Sommer describes real estate as a good way "to get rich slowly." He and his wife, both former schoolteachers, gradually have built their net worth from zero to around $2.5 million through their rental properties. They have dealt with countless plumbing emergencies, evicted deadbeats and even once had to clean up after a suicide in one of their properties. Still, he hasn't been hit very hard by the real-estate crash, in part because the Midwest is much less vulnerable to booms and busts than coastal areas. When asked what he would do if someone handed him $1 million today, Mr. Sommer doesn't hesitate: He would put it into real estate. —Mr. Hagerty is a staff reporter for The Wall Street Journal in Pittsburgh. Write to James R. Hagerty at bob.hagerty@wsj.com http://www.foreclosuresexpo.com
TALLAHASSEE, Fla. – Dec. 2, 2008 – Florida’s bankers and credit unions announced Monday that they’d suspend foreclosing on homeowners for the next 45 days. Gov. Charlie Crist called a press conference to announce the halt in foreclosures, but neither he nor the president of the Florida Bankers Association, Alex Sanchez, could say how many people this could help. The halt in foreclosures, however, wouldn’t help the 444,000 property owners who are in the process of being foreclosed upon. Florida has the third-highest foreclosure rate in the nation. Crist, who said last week that he would consider issuing an executive order halting foreclosures, said this moratorium would only cover homeowners with a homesteaded property who need the help. “This is to help people in a time of need,” Crist said. “This is not for somebody who went and bought a bunch of condos in South Florida on the spec market.” Sanchez thanked the governor for his “compassionate leadership at this time” but suggested that, with or without Crist, Florida banks planned to halt foreclosures anyway because they don’t want to get saddled with too much property or too much bad debt. Sanchez said Crist’s Monday announcement was “a reaffirmation of our past practice and current practice.” Sanchez said those who need help need to contact their banker, have no involvement with mortgage fraud and be willing to enter into a re-payment plan. Crist also announced that the Department of Community Affairs will soon have $541 million for mortgage assistance and other financial aid for local governments that put together a plan to help homeowners in foreclosure. It includes $91 million for direct housing assistance. For more information, he urged people to go to www.floridahousing.org and www.dca.state.fl.us. The housing-and-wage advocacy group ACORN called for more action from Crist and the banks. “While we eagerly await more details, recent history has shown that voluntary measures have fallen fall short of addressing the enormity of the foreclosure crisis Florida faces,” ACORN organizer Paul Griffin said in a written statement. “We appreciate that the industry has delayed the crisis but now they need to help us solve it.” Orlando Democratic state Rep. Scott Randolph, whose wife is an ACORN organizer, found greater fault with the proposal, saying in a written statement that “what they have offered Floridians is not relief, but rather vague promises made by unspecified lenders. Forty-five days is not a long enough moratorium; it doesn’t include those families already in foreclosures; and today’s press conference left Floridians wondering if their bank is even included in the offer.” The Orlando Foreclosures expo February 7th and 8th 2009 http://www.foreclosuresexpo.com
DADE CITY - Pasco County and federal authorities might be in a tug of war over how best to spend nearly $20 million of federal aid in a foreclosure rescue plan. Two weeks ago, the County Commission approved a tentative plan to divert most of the funds into down payment assistance to help people directly buy foreclosed or abandoned homes. Officials at the U.S. Department of Housing and Urban Development, however, have indicated they might reject the county's plan, Pasco Community Development Director George Romagnoli told commissioners today. Romagnoli is leading efforts to finish the county proposal, which must be submitted to HUD by Dec. 1. If the Pasco plan is rejected, the county would have to reapply for the federal aid and might miss out on getting any money. "We received some – I wouldn't say angry, but some critical – e-mails and discussion on our original proposal," Romagnoli said, referring to correspondence from HUD officials. HUD and the Federal Housing Administration want foreclosed or abandoned houses brought up to current codes with the federal aid before the houses are put up for sale. Romagnoli said rehabilitation repairs might cost anywhere from $15,000 to $35,000 per house. Then down payment assistance could be used for people buying the renovated houses. Other federal funds would help nonprofit agencies create permanent housing, such as Catholic Charities' Bethany Apartments, in Dade City. A revised plan Romagnoli presented Tuesday would set aside $6.5 million for down payment assistance. Remodeling foreclosed-on houses might make sense in an ordinary market, Greg Armstrong, president of West Pasco Board of Realtors, testified before commissioners. People can recoup their investments in repairs, he said. With a glut of 5,700 Pasco County houses for sale west of the Suncoast Parkway, however, any foreclosed dwelling, even with remodeling, probably would not fetch a higher price in this depressed market, Armstrong insisted. Armstrong believes applying at least $10 million of the federal aid toward down payment assistance would be the fastest way for the county to help the Pasco real estate market recover. Armstrong would prefer to place buyers into foreclosed houses first. The new owner could then do repairs, perhaps with some financial assistance, he said. Many of the foreclosed houses are already in good shape, he added. The FHA would have to waive its requirements for repairs to be done before financing loans, Armstrong said. The federal agency would have to allow repairs to come after a buyer is in the house. The National Association of Realtors will lobby for such changes at an annual meeting this weekend, Armstrong said. Some local community banks and other lenders appear to be interested in offering conventional home loans as an option to FHA financing, Armstrong and Commissioner Michael Cox said. Some of the houses that have been foreclosed on might have been built before the county even had building codes, Cox commented. The commissioner agreed it might not make a lot of sense to spend $30,000 on renovating a house with a $60,000 market value. "That tends not to make sense, but we are talking about programs from the federal government," Cox said with a chuckle. Cox originally thought federal authorities would give the county a lot of latitude on how to spend the federal aid, but that doesn't appear to be the case. "We have the chance to reach hundreds and hundreds of people and put the money where it can do the most good" in a depressed market through down payment assistance, Armstrong maintained. "I must sadly report," Armstrong said, that in the past two weeks alone 212 houses have been sold on courthouse steps for back taxes. "These are staggering numbers and we must take decisive action and quickly to stop this flow," Armstrong urged commissioners. http://www.foreclosuresexpo.com
DADE CITY - Red virtually covered the entire West Pasco area on a map shown to the County Commission this week about the high risk of more foreclosures. So commissioners are applying for nearly $19.5 million in federal aid, one of the biggest grants in the state. The deadline to apply to the U.S. Department of Housing and Urban Development is Monday, Dec. 1. Everyone at the commission meeting agreed action is quickly needed, but real estate leaders had different ideas than county officials about the best way to stimulate economic recovery here. The county foreclosure rescue plan represents the best compromise to win approval from the federal government, according to Pasco Community Development Manager George Romagnoli. The plan would devote the largest share of money, nearly $9 million, to buying foreclosed or abandoned houses, fixing them up and then selling them for a higher price. The county would not directly buy the houses, but would funnel the money through "nonprofit partner agencies," Romagnoli said. Another $6.5 million would be devoted to down payment assistance to directly help buyers, the plan favored by the West Pasco Board of Realtors. The Realtors group still recommends at least $10 million of the federal aid go toward down payment assistance, President Greg Armstrong said. Then the buyers themselves could fix the homes with some aid. Armstrong described the county application as a "from top-down approach" that would benefit perhaps a few hundred people. Realtors' plan for the federal aid could benefit thousands, he believes. Armstrong led a delegation of dozens of real estate agents who attended the County Commission meeting. The county and its partners might not recoup the expense of upgrading foreclosed houses, Armstrong theorized. A glut of 5,700 houses for sale west of The Suncoast Parkway could make it difficult to get a higher selling price for the foreclosed houses that have been repaired. County officials several times have given an example of spending some $30,000 to fix up a $60,000 house. Romagnoli swayed commissioners, though, when he said the county might soon gain the ability to shift around as much as $2 million as market conditions change. Right now, the threshold is $100,000 when the county must seek permission to change the way it spends federal funds. The county stands to lose the $19.5 million in federal aid if the application is delayed past the Dec. 1 deadline, Commissioner Ted Schrader says. Commissioners approved the plan as drafted by Romagnoli. HUD officials will review the county's Neighborhood Stabilization Program application. If they approve, the agency will send a grant agreement back to the county by February. HUD requires the county to commit the federal funds within 18 months and actually spend the money within four years. "Time truly is of the essence," Armstrong said. http://www.foreclosuresexpo.com
TAMPA, Fla. – Dec. 1, 2008 – Tiffany Edwards thought she was running out of time to persuade her lender to work out a new loan so her growing family could stay in their Tampa home. She had been out of work for more than a year, and her husband’s income wasn’t enough to cover all the family’s bills. She found a job a few weeks ago, but her lender was already set to foreclose on the house – likely before Christmas. With a 3-year old daughter and a baby on the way, Edwards panicked. Then came last week’s announcement that Fannie Mae and Freddie Mac – the nation’s two largest providers of mortgages – will postpone foreclosures until early January. In the meantime, they will try to work out loan modifications so more homeowners can keep their homes. “What a stress relief,” Edwards said. “Now I have hope we’re going to be able to work something out.” The Edwardses are one of about 16,000 families nationwide who are eligible for the help. The foreclosure suspension is exactly the kind of action some economists and industry leaders say is needed as the foreclosure crisis weighs down the entire economy. Florida Gov. Charlie Crist is contemplating a way to get lenders to agree to a moratorium on foreclosures until after the holidays. There were cheers when Fannie and Freddie agreed to hold off on some foreclosures. But now that the dust is settling, many wonder how significant the action will really be. That’s because after Jan. 9, the people helped by the reprieve could still lose their homes. Even if all those people work out new loans, they still represent a small percentage of the more than 2 million homes that are expected to be lost in foreclosure before late 2009. “This is great, it really is,” said Debbi Colon, a Catholic Charities foreclosure counselor who has worked with the Edwards family. “But it’s just a first step.” After the announcement last week, her phone rang all day and night from clients wondering if they qualified for the reprieve, Colon said. Most don’t, she said, because their loans are held by private companies. That’s the downside of the plan, Colon said. Only homeowners with loans owned by Fannie Mae and Freddie Mac are eligible. Together, the two companies own only about 20 percent of the nation’s delinquent loans. Of the loans that Fannie and Freddie own, not all of them are eligible for the reprieve. Homeowners must be still living in the home and must be at least three months behind on their payments. For those who are lucky enough to get a second chance at a loan modification, Fannie and Freddie’s new program could be a big help. It calls for mortgage payments – including taxes and insurance – to total no more than 38 percent of homeowners’ pretax monthly income. Officials for the Center for Responsible Lending said they are encouraged by Fannie and Freddie’s holiday reprieve, but know it’s not a solution. “This is a solid step in the right direction,” said Ginna Green, spokeswoman for the center. “But we must also aim for solutions – like streamlined modifications – that keep families in their homes for the long term as well as the short term.” Even so, Edwards and her family say they are thankful for the extra time in their home. No matter how long that ends up being. The Orlando Foreclosure Expo February 7th and 8th http://www.foreclosuresexpo.com
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