Home sales climb 2% in October

NEW YORK (CNNMoney) -- The pace of sales for previously owned homes rose in October, despite the devastation of Superstorm Sandy, in the latest sign of improvement for the long-battered housing market.

Existing home sales rose to an annual rate of 4.79 million, seasonally adjusted, the National Association of Realtors reported on Monday. That's up 2.1% from September, when the revised annual rate of existing home sales was 4.69 million. And it's an increase of 11% year-over-year, when the annual rate was 4.32 million.

That was also stronger than the forecast from analysts at Briefing.com, which called for an annual rate of 4.7 million existing home sales in October.

The National Association of Realtors said sales had gone up nationwide, "even with some regional impact from Hurricane Sandy," the deadly storm that caused massive disruptionsin the Northeast at the end of October.

Lawrence Yun, the association's chief economist, said the market is being driven by "growing demand with limited inventory" but it could run into strong headwinds from Sandy going forward.

"We expect an impact on Northeastern home sales in the coming months ... in storm-impacted regions," he said.

Related: Most affordable cities for homebuying

Home buyers are being lured by low mortgage rates. Last week, mortgage rates dropped again, pushing 15-year and 30-year fixed-rated loans to record lows.

Read more:  http://money.cnn.com/2012/11/19/real_estate/existing-home-sales/index.html?source=linkedin

Tax break for struggling homeowners set to expire

By Les Christie @CNNMoney November 7, 2012: 8:11 AM ET

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The clock is ticking on a tax break that saves struggling homeowners from paying thousands of dollars to the IRS.

NEW YORK (CNNMoney) -- The clock is ticking on a tax break that saves struggling homeowners from paying thousands of dollars to the IRS.

If the Mortgage Forgiveness Debt Relief Act of 2007 does not get extended by Congress by the end of the year, homeowners will have to start paying income taxes on the portion of their mortgage that is forgiven in a foreclosure, short sale or principal reduction.

So if you owe $150,000 on your home and it sells for $100,000 in a foreclosure auction, the IRS could tax you on the remaining $50,000. For someone in the 25% tax bracket, that would mean paying $12,500 in taxes on the foreclosure. Similar taxes would apply for forgiven amounts in short sales and principal reductions.

"People trying to do short sales are freaked out about it," said Elizabeth Weintraub, a real estate agent in Sacramento, Calif. "They're telling me they'll do whatever it takes to close by the end of the year."

Related: Where homes are affordable

Should the tax break expire, a large number of mortgage borrowers could be affected. More than 50,000 homeowners go through foreclosure each month. Meanwhile, the number of short sales has tripled over the past three years to a rate of about half a million a year. And, under the terms of the $25 billion foreclosure abuse settlement, roughly one million borrowers may have their mortgage debt lowered through principal reductions over the next couple of years.

"If there ever was a no-brainer in housing policy, this would be it," said Jaret Seiberg, a policy analyst for Guggenheim Securities.

READ MORE: http://money.cnn.com/2012/11/07/real_estate/mortgage-forgiveness-tax-break/index.html

Government Set to Sell Foreclosures in Bulk

Published: Monday, 9 Jan 2012 | 9:11 AM ET

By: Diana Olick
CNBC Real Estate Reporter

The Obama administration, is very close to announcing a pilot program to sell government-owned foreclosures in bulk to investors as rentals, CNBC has learned.

The Obama administration, in conjunction with federal regulators and led by the overseer of Fannie Mae and Freddie Mac, is very close to announcing a pilot program to sell government-owned foreclosures in bulk to investors as rentals, according to administration officials.

There currently are about a quarter of a million foreclosed properties on the books of Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA), and millions more are coming.

The foreclosure processing delays of last year created a mammoth backlog of properties yet to be processed, which are just now being re-started. One of the initiatives of this program is for the federal government to be in the position to mitigate and manage any new wave of foreclosures, sources say.

Late-stage delinquencies still in the pipeline number close to two million, according to a new report from Lender Processing Services. Foreclosure starts outnumber foreclosure sales by two to one and "the trend toward fewer loans becoming delinquent, which dominated 2010 and the first quarter of 2011, appears to have halted," according to LPS.

Knowing this all too well, the Treasury Department, Federal Reserve, HUD, FDIC, Fannie Mae and Freddie Mac, with their conservator, the Federal Housing Finance Agency (FHFA) at the helm, are engaged in a collaborative effort to face this new wave of foreclosures head on and figure out a way to keep these properties from sitting on the books of the government and sitting empty in the nation's neighborhoods.

As the Federal Reserve alluded to in its white paper on housing last week, "A government-facilitated REO-to-rental program has the potential to help the housing market and improve loss recoveries on reo portfolios." REO's (Real Estate Owned) are bank-owned properties, or, in this case, properties owned by the government-sponsored enterprises and the FHA. Three Fed governors pushed for similar plans in speeches last week, as well.

A pilot sales program will be starting in the very near future, according to administration officials. They are working on what the market potential is, what pricing would be, how government can partner with private investors, and who has the operational experience to manage so many properties.

"I think there is a fair amount of money in the wings waiting to buy, investors doing cash raises to buy properties on a large scale," says Laurie Goodman of Amherst Securities. "But that means they have to build out a rental organization; it means they build out a management company, because if you're accumulating a hundred homes in Dallas that's very different than running a multifamily building."

A number of institutional investors have shown appetite and interest in bulk REO deals, according to officials, but the plan has to incorporate ways to help facilitate financing. That has been one of the biggest roadblocks to deals already in the works between hedge funds and the major banks. Sources close to these private bank negotiations say there is plenty of cash to buy properties, but building out a management structure for the rentals is pricey, and some investors are finding the math doesn't add up to make it worth their while.

Larger investors want to be able to get real scale in any government program, in the range of 50, 100, 500 properties per deal, or $1 billion-plus in assets, say officials close to the plan. That's why the government is looking to test a combination of different approaches. Fannie Mae did a $50 million sale last June, but that was on the small side. Officials are evaluating at what larger asset sales beyond that would look like.

“We expect several pilots that will involve both local investors and institutional investors. The goal here is to reduce supply by converting foreclosed homes into rental units,” says Jaret Seiberg of Guggenheim Securities. “Less supply — even less fear about a flood of foreclosed homes hitting the market — could stabilize [home] prices.”

While much of this program will focus on local areas of distress, officials say they are looking at where the assets are today but are really more focused on where all the foreclosures will be in the future. It's not about the stock of foreclosures currently, it's about the flow of them over time and alternative ways to manage that flow.

Officials say they want to bring back private capital and help support rental opportunities for households, particularly when rent rates are up at the same time home prices are down.

Economic forecast for CO, U.S. in 2012

DENVER - As a financial expert, he says he's 'cautiously impressed' by the economic recovery of Colorado and the United States."

[The economy] still faces a lot of challenges. It started with real estate, heavy debt levels and has recently moved toward concerns about Europe. Despite all of these obstacles, the economy has continued to grow at a fairly modest but steady pace. It's very impressive." Vice President, Economist, and Executive for the Federal Reserve's Denver Branch, Mark Snead said.

Snead is part of an economic forecast panel hosted by Vectra Bank.

The 19th Annual Economic Forecast Breakfast was held Thursday morning. Mark Snead along with President, Development Research Partners, Patricia Silverstein and CEO, Contango Capital Advisors, George Feiger were the keynote speakers at the event.

They say similar to most years, 2012 should provide challenges, bright spots and even the 'unknowns.

'Snead says the economic recovery of the US is very closely tied to housing.

"It's a big problem. It seemingly is an attractable problem but the fundamentals have improved on one side. Affordability is extremely high, the demographic issues that we've had --people moving in together to increase the size of households-- that is probably going to reverse itself. So, the fundamentals look good. The problem is just large amount of inventory overhang and it may take two or three selling seasons to clear that inventory. It's a big problem," he said.



Read More: http://www.9news.com/dontmiss/243450/630/Economic-forecast-for-CO-US-in-2012

Denver housing bucks trend

John Rebchook

, Denver Real Estate Examiner

December 27, 2011 - Like this? Subscribe to get instant updates.

While much of the nation's housing market is weakening, the Denver-area housing market is moving in the other direction.

The most recent example of Denver's strenghtening market is today's S&P/Case-Shiller Home Price Indices, probably the most closely watched national real estate report.

It shows that on a year-over-year basis, at the end of October, the overall Denver market fell by 0.9 percent. That is a fraction of the 3.4 percent year-over-year drop overall for the 20 major metropolitan statistical areas tracked by Case-Shiller. It also is the lowest percentage drop for the the Denver metro area in 15 months.

In September, for example, the Denver-area market had dropped by 1.5 percent from September 2010.

Lane Hornung, co-founder, President and CEO of 8z Real Estate and COhomefinder.com, says the Denver-area housing market is experiencing a "slow-motion recovery."

While year-over-year comparisons are generally considered a better indication of the market than month-to-month changes - as they can be influenced by seasonal factors, from September to October, the Denver-area market did even better.

Continue reading on Examiner.com Denver housing bucks trend - Denver Real Estate | Examiner.com http://www.examiner.com/real-estate-in-denver/denver-housing-bucks-trend#ixzz1i1z3Fbwe

Continue reading on Examiner.com Denver housing bucks trend - Denver Real Estate | Examiner.com http://www.examiner.com/real-estate-in-denver/denver-housing-bucks-trend#ixzz1i1ytEpAL




Read More: http://www.examiner.com/real-estate-in-denver/denver-housing-bucks-trend

Fannie Mae, banks halt foreclosures for the holidays

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By Les Christie @CNNMoney December 1, 2011: 4:11 PM ET

NEW YORK (CNNMoney) -- Happy holidays struggling homeowners! Fannie Mae, Freddie Mac and several large mortgage lenders have pledged not to foreclose on delinquent borrowers during the Christmas season.

For homeowners with loans through Fannie Mae (FNMA, Fortune 500) and Freddie Mac (FMCC, Fortune 500), the moratorium will run from Dec. 19 to Jan. 2. During this time, legal and administrative proceedings for evictions may continue, but families will be allowed to stay in their homes, Fannie said in a statement.

"No family should have to give up their home during this holiday season," said Terry Edwards, an executive vice president for Fannie Mae.

Among some of the major banks that offer mortgage loans, Chase (JPM, Fortune 500) Mortgage said it will not evict anyone between Dec. 22 and Jan. 2. Wells Fargo (WFC, Fortune 500) will also suspend evictions during that period, but will not shut down its eviction machinery entirely.

The bank said it will observe the moratorium on foreclosed properties in its own portfolio but for loans it services for other lenders "foreclosure-related actions may still occur."

Bank of America (BAC, Fortune 500) said that it would "avoid foreclosure sales or displacement of homeowners or tenants around the Thanksgiving and Christmas holidays."

Why Fannie/Freddie execs get paid a lot

However, that policy only applies to loans the bank itself owns. Like Wells Fargo, it will also honor the wishes of the owners of the loans it services, which could mean moving forward with certain foreclosures.

Fed sees ‘slightly’ improved economy in Colorado region

Denver Business Journal by Heather Draper, Reporter

Date: Wednesday, October 19, 2011, 4:05pm MDT

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Manufacturing, Banking & Financial Services, Commercial Real Estate, Retailing & Restaurants, Economic Snapshot

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Heather Draper

Reporter - Denver Business Journal

Email | Facebook | Twitter | Finance Etc. blog

The economy in Colorado and neighboring states “improved slightly” in late August and September, the U.S. Federal Reserve reports in its latest “Beige Book” survey of the region’s business executives.

The Fed’s Kansas City-based 10th District, which includes Colorado and some or all of six neighboring states, was among 10 of the 12 Fed districts nationwide that registered modest or slight growth in the six-week period covered by the Beige Book. Growth was slower or non-existent in the Richmond and Philadelphia districts.

The Beige Book is based on interviews with a sample of business executives representing key industries in each district. The reports are anecdotal and do not contain statistics, but they are widely followed and help the Fed to set national economic policy.

According to the latest 10th District Beige Book, consumer spending increased in the retail and auto sectors, but declined slightly in the restaurant and travel sectors.

“Luxury goods, such as jewelry and custom-upholstered furniture, sold particularly well,” the report said.

Manufacturing activity rose at durable goods factories, and the high-tech services industry experienced strong growth, while transportation activity was flat.

Residential and commercial real estate and construction contacts continued to report weak conditions. Multi-family building projects were the only area of reported growth by commercial construction contacts.

The energy sector expanded further with production increasing for oil, natural gas and coal, according to the report.

Bankers in Colorado and neighboring states reported increased deposits, but somewhat weaker loan demand and a slight deterioration in loan quality.

Read More: http://www.bizjournals.com/denver/news/2011/10/19/fed-sees-slightly-improved-economy.html