Bernanke’s remarks about the pace of the Fed’s bond buying program.

The big topic these days is how the Fed’s is affecting the mortgage industry. With home prices climbing, even dramatically in some parts of the country, and interest rates on the rise, many potential buyers could soon find themselves priced out of the market. I detest scare tactics to coerce people into buying, however, I would be amiss if I did not alert my clients that the time for “waiting for the great deal” are seriously gone. The choice is rapidly changing to buy now, or not at all.

Listen to what the mortgage bankers have to say:

From Peter Prodanov,  Bank of England (218-849-0760)

“The sell-off continued in the aftermath of Fed Chairman Bernanke’s remarks about the pace of the Fed’s bond buying program. Treasury yields reached highs not seen since September 2011 as the 30yr yield hit an intraday high of 3.548%. Selling in the long end intensified following a poorly received $7 billion 30yr TIPS auction, which came at a yield of 1.42%. The benchmark 10yr note surpassed Wednesday’s highest yield since October 2011, reaching a high print of 2.414%. US equities were off again as well.  The S&P 500 posted its largest daily decline since November 2011, down 40.58 (-2.28%) to 1,588.33. The Dow was off 352.02 points (-2.33%) to 14, 760.15 and the Nasdaq was off 78.57 points (-2.28%) to 3,364.64.

Mortgages continued to underperform on Thursday, widening 9 ticks vs. swaps at the end of the trading session. Origination volume was approximately $2.8 billion and the Fed’s weekly MBS purchase data shows that they increased buying in 30yr 3.5% coupons and 15yr 3.0% coupons, although they have yet to resume purchases in 4% coupons despite representing almost 10% of 30yr originations over the past week. At 3pm, the FN 30yr 3.5% in July was down by -31/32nds (101-16) and the FN 15yr 2.5% in July was lower by -26+/32nds (100-11).The Gold/Fannie swap was relatively unchanged, improving by a +,  on Thursday with the 3.0% swap at -8+/32 and the 3.5% swap at -4+/32. Ginnie/Fannie swaps have been under pressure over the past week, more notably the past two days, on heavy selling from domestic money managers and overseas investors, re-pricing lower coupons by 8-14 ticks. The Ginnie/Fannie 3.0% swap closed 29/32 and the 3.5% swap closed 25/32. Just a week ago these swaps were 1-15/32 and 1-14/32 respectively.

Treasuries are up moderately this morning as are equity futures. There is no US economic data today though the Fed will buy back $1.25-1.75bn in the 20-30yr sector.”

Rates:  June 21-24, 2013

30 Yr. Conforming  4.375%

15 Yr. Conforming   3.500%

30 Yr. Jumbo Conforming 4.750%

30 Yr. FHA/USDA/VA  4.125%

15 Yr. FHA Fixed 3.375%

SOMETIMES YOU HAVE TO GET CREATIVE TO SELL A HOUSE.

THE ERA  SELLERS SECURITY PLAN.

       Joanne Tailele
ERA Flagship Real Estate
239-784-2637

 

Deal of the week – 3 bedroom 2 Bath
Water direct Access pool, dock and lift
$550,000

It’s an innovative program that gives qualified home sellers accepted into the program the assurance that your home will sell within a finite sales period. And if it doesn’t, ERA Franchise Systems LLC will buy it from you.* See your ERA agent to find out if you qualify. To learn more visit http://www.era.com.
solely by ERA Franchise Systems LLC, based upon a discount of the home’s appraised value.

Call me for details   Joanne Tailele    ERA Flagship Real Estate  239-784-2637

Check out my website for the visual tour of this home on Bimini Drive and many others.

http://www.J0anneSellsMarco.com

 

Peter Prodanav
Bank of England
Office: 239-970-0090
Cell: 218-849-0760

 

For all your lending needs, call Peter Prodanav

Conforming 30 Yr Fixed —————- 4.000%

Conforming 15 YR Fixed—————-3.250%

Conforming Jumbo 30 Yr Fixed——-4.500%

FHA/USDA 30 year fixed—————–3.625%

VA 30 year fixed—————————-3.625%

* Call for other products

Member FDIC

FOR SALE BY OWNER (FSBO) STATISTICS

FSBOs accounted for 9% of home sales in 2012.

The typical FSBO home sold for $174,900

compared to $215,000 for agent-assisted sales.

            FSBO Methods Used to Market Home:

• •           Yard sign . . . . . . . . . . . . .. . . .  . . . . . . ……………………………………… . . . . . . . 48%
• •           Listing on Internet . . . . . . . . . . . . . . . . . . . …………………………………. . . . . . . 32%
  •              For-sale-by-owner websites . . . . . . . . . . ……………………………………… . . . . 20%
  •             Other websites with real estate listings (e.g. Yahoo, Google, etc.) . ……….. . 11%
  •             Social networking websites (e.g. Facebook, Twitter, etc.) . . ………………….. 10%
  •            Video hosting websites (e.g. YouTube, etc.) .  ……………………………………..   2%
•            Friends, relatives, or neighbors . . . . . . . ……………………………….. . . . . . . . .  30%
• Print newspaper advertisement . . . . . . . . …………. ……………………………………………………………… . . . .   14%
• Open house . . . . . . . . . . . . . . . . . . . . . . . …………………………………………………………………………. . . .  . . . .  12%
• Direct mail (flyers, postcards, etc.) . . . . . . . . . . . . . . …………………………………………………………………….  2%

Most Difficult Tasks for FSBO Sellers:

• Understanding and performing paperwork  . . . . . . . . .  ………………………………………………………………..18%
• Getting the right price . . . . . . . . . . . . . . . . . . .  . . . . . . ………………………………………………………………….. 14%
• Preparing/fixing up home for sale: . . . . . . . . . . . . . . . . ……………………………………………………………….. 11%
• Helping buyer obtain financing: . . . . . . . . . . .  . . . . . . . …………………………………………………………………  6%
• Attracting potential buyers . . . . . . . . . . . . . . .  . . . . . . . . ……………………………………………………………….. 6%
• Selling within the planned length of time: . . . . . …. . . . . . ……………………………………………………………… 6%
• Having enough time to devote to all aspects of the sale . ………………………………………………………………1%

Source: 2012 National Association of REALTORS® Profile of Home Buyers and Sellers

It’s obvious that if you want your home sold for the most money,  and the least amount of inconvenience, you need to have a Realtor.  The statistics speak or themselves. Give me a call with all your real estate needs.  239-784-2637   www.JoanneSellsMarco.com  Use my website to search ALL listings in the Collier County Florida area. Go to Buyers, then click MLS. And with my 24 years experience, I can help you locate a reputable Realtor anywhere in the world. I LOVE referrals.

Mortgage News  from  Peter Prodanov, Bank of England, Marco Island, FL         June 13, 2013

Euro zone industrial output expansion was slower than expected due to a drop in the production of energy and consumer goods which pushed Euro Zone stocks down ~.62% on Wednesday. U.S. equities suffered their first three-day losing steak of the year as traders balanced predicted economic growth with the possibility of a slowing in the pace of stimulus. On Wednesday the DOW shed 126.79 points to 14,995.23, the S&P lost 13.61 points to 1,612.52, while the Nasdaq also declined 36.52 points to 3,400.43.

On Wednesday, prices on U.S. Treasury securities slipped after the 10yr Note auction drew muted demand.  The benchmark 10yr treasury lost 13/32nds to yield 2.23%.

Mortgages had their least volatile day of the week on a light volume day.  For the majority of the day, mortgages traded between a “+” wider (underperform) to a “+” tighter (outperform) vs. swaps on moderate two-way activity between money managers and hedge funds.  FN 30yr 3.5s & 4s were the worst performers in the stack and FN 30yr 2.5s were the best performers, albeit on low volume.  FN 30yr 3s closed at ~99-24 (-17/32nds), while the 3.5s closed at ~102-27 (-17/32nds).

Global equities tumbled overnight with Japan leading the way, closing down ~6.5%.  Euro zone stocks are also lower amid continued speculation that central banks will scale back stimulus.  U.S. equity futures are also pointing lower this AM on similar news.  Today the U.S. Treasury will sell $13bl 30-Year Bonds.

Bank of England   Mortgage Lending Division   656 Bald Eagle Dr, Marco Island, FL 34145
Office: 239 970-0090          Fax: 239 970-0159
Rates for 6/13/13
*Fixed Rate Programs
Conforming 30 year fixed 4.000% Conforming Jumbo 30 year fixed 4.500%
Conforming 15 year fixed 3.250% Conforming Jumbo 15 year fixed 3.500% FHA/USDA 30 year fixed 3.625% Non-Conf. Jumbo 30 year fixed 4.125%
FHA 15 year fixed 3.250% Non-Conf. Jumbo 15 year fixed 3.750%
VA 30 year fixed 3.625% VA 15 year fixed 3.250%
____________________________________________________________________
Lending Products
Conventional Loans- Loan amounts up to $448,500
FHA- 96.5% LTV- Loan amounts up to $448,500
VA and USDA to 100%
Jumbo Loans- Loan amounts up to $3,000,000
Commercial loans of any size
REVERSE Mortgage for Purchase (no monthly payment!) Financing options available for:
Primary Residences
2nd Home/Vacation Homes
Condos (Primary, Vacation, and investment)
Investment properties to 4 units
Condotels and Unwarrantable Condos
*Rates as of 6/13/13 at 11 am.

All rates subject to change and based on Primary Residence Purchase
All rates based on a 30 day lock, full Income/asset documentation, escrows, and NO POINTS.
OAC, Not an offer to lend, Equal Housing Lender, Member FDIC.

“Prompt, Courteous, Professional Mortgage Lending”
Offering your clients competitive rates, low closing costs, great service, and quick turn times. To better serve you and your clients, I am available nights and weekends for pre-approvals so you can make that offer right away!   Peter Prodanov   Cell: 218 849-0760

30 day closings on purchases

Living by the sea

 

Seawalls are constructed to protect shorelines from flooding and erosion. They are a barrier between the coastline and the ocean to keep the shore from washing away. Seawalls also protect buildings and communities from flooding and storm damage. They can provide recreational space for people, such as fishing from or walking on the top of the wall.

Seawalls can be built from a number of different materials, including the most common of concrete, boulders or steel. Vinyl and wood may also be used to construct seawalls for additional support. Modern seawalls have a curved shape in order to deflect waves back to the sea. Some seawalls, however, are straight and designed to stop waves all together. The top of the seawall is flat, which creates a space for human traffic. Seawalls can vary immensely in height depending on their main purpose. Those built strictly to prevent flooding, for example, would be taller than those built mostly to prevent erosion. All seawalls extend from the shore and into the water to prevent waves from crashing on to the shore.

 

If you live near the ocean, where the tides connect to your property, you most likely have a seawall keeping the mighty ocean from turning your home into a swimming pool. Here on Marco Island, over 85% of the homes are on a canal or directly on the Marco River. Marco is home to over one hundred miles of canals in our little four mile by six mile island.  The vast majority are concrete walls, but if you live elsewhere, any number of seawalls can be found.

 

Types of seawalls:

Riprap is stone of various types that is used to protect, or armor, a shoreline or river bank. Riprap is often a mixture of granite, limestone and concrete rubble in chunks spread along the shore. Riprap is also used to reinforce old seawalls by placing it at the bottom of the walls.

Cobble boulder seawalls are a familiar sight along lake shore beaches and river banks. Large, round cobbles held together with mortar angle down towards the water. Cobble boulder seawalls are usually placed in less demanding areas where wave action is not extreme.

Concrete seawalls reinforced with steel are large structures designed to protect coastal areas from heavy wave action. This type of concrete erosion barrier is often built using large concrete sections which are lowered into place with a crane. Concrete seawalls are made with different face shapes and are held in place with heavy pilings. Curved seawall faces break up the wave energy and direct it back outwards while straight-faced seawalls absorb the impact.

 

The majority of the seawalls on Marco Island were build in the mid 70’s when the Mackle brothers and the Deltona Corporation created the vision of taking a bug-infested mangrove island with a three-mile white sandy beach and turned it into one of the most beautiful places in all of Florida, if not the world.

 

But all things pass and if your home, lot or new build is one of those with a seawall built in the 70’s it most likely is in desperate need of repair. Thinking of buying a home on a canal but have no idea what is involved in seawall?  Today is your lucky day. Today we are talking about what all is entailed.

 

There are four main reasons for seawalls to fail:

 

1. Tie-back Failure:  This is evident by the wall bowing out into the canal. The tie-back have rusted through and no longer support the weight of the wall.
2. Toe Failure:  This is usually caused by weather. The toe of the wall is no longer embedded in the soil. The wall will sink down into the soil or the toe will kick out at the bottom.
3. Buckling Failure:  This is when the slab is breaking and separating from other sections. Keep in mind, every seawall is connected to the one next to it in the canal. If your neighbors is failing, it will pull yours down with it.
4. General Deterioration:  This is a simple product of age. The wall will show hair-line cracks. When the steel bars begin to rust, they expand and cause the wall to crack.

 

 

 

 

What to do? What to do?  First of all, you need a qualified engineer that specializes in seawall to inspect it. The typical home inspector that looks at your home or the appraiser will NOT be able to give you solid information.

 

If the wall only needs repaired, which can be done several different ways, the cost should range between $200-$300 per linear foot, depending on the cost of concrete, if the work can be done without having to use the barge from the water.  Replacement of a seawall is currently ranging between $500-$600 a linear foot. This entails the use of the barge and a staging area to form the new molds.  If you have a home sitting on the lot, the engineers must rent space at a near-by vacant lot if they can find a homeowner willing to let them use it as a staging area.

 

If you are thinking of buying or selling a property with a seawall, don’t overlook this important element of the process. Need more information? Call me at 239-784-2637  or email JoanneSellsMarco@gmail.com   or go to my website at www.JoanneSellsMarco.com 

 

 

HUD and VA provide homes to 915 homeless Fla. vets

from the Florida Realtor News

MIAMI – June 10, 2013 – About 915 homeless veterans living in Florida will soon find a permanent place to call home.
U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan and U.S. Department of Veterans Affairs (VA) Secretary Eric K. Shinseki announced that HUD will provide $60 million to local public housing agencies across the country to provide permanent supportive housing to homeless veterans, many of whom are living with chronic disabling conditions. Florida will receive $6,000,620 to assist its homeless veterans.

The HUD-Veterans Affairs Supportive Housing (HUD-VASH) Program provides the assistance, which combines rental help from HUD with case management and clinical services provided by VA. Since 2008, a total of 48,385 vouchers have been awarded and 42,557 formerly homeless veterans are currently in homes because of the program.

“Our veterans have answered the call of duty,” says Donovan. “That’s why our nation has its own duty – to help homeless servicemen and women rejoin the very communities they have given so much to protect.”

The grants are part of $75 million appropriated this year to support the housing needs of homeless veterans. Local public housing authorities provide rental assistance to homeless veterans while nearby VA Medical Centers (VAMC) offer supportive services and case management. HUD expects to announce more HUD-VASH funding later this summer.

VAMCs work closely with homeless veterans then refer them to public housing agencies for these vouchers, based upon a variety of factors, most importantly the duration of the homelessness and the need for longer term more intensive support to obtain and maintain permanent housing. The HUD-VASH program includes both the rental assistance the voucher provides and the comprehensive case management that VAMC staff provides.

Veterans participating in the program rent privately owned housing and generally contribute no more than 30 percent of their income toward rent. VA offers eligible homeless veterans clinical and supportive services through its medical centers across the U.S., Guam and Puerto Rico.

Florida communities that received funding:

• Jacksonville Housing Authority: $250,787
• Housing Authority of the City of St. Petersburg: $207,005
• Tampa Housing Authority: $286,531
• Orlando Housing Authority: $741,708
• Miami Dade Public Housing and Community Development: $327,024
• Housing Authority of City of Daytona Beach: $104,984
• Sarasota Housing Authority: $160,403
• West Palm Beach Housing Authority: $260,719
• Housing Authority of the City of Titusville: $149,258
• Ocala Housing Authority: $60,908
• Seminole County Housing Authority: $99,143
• Housing Authority of the City of Stuart: $113,421
• Housing Authority of the City of Fort Myers: $321,960
• Pinellas County Housing Authority: $251,168
• Alachua County Housing Authority: $378,397
• Tallahassee Housing Authority: $391,246
• Broward County Housing Authority: $895,956

© 2013 Florida Realtors®

Watch for Foreclosure Auction scams

The US Justice Department (DOJ) has created a special task force to investigate mortgage fraud as it applies to foreclosure auctions. The scams were created when a false buyer would bid on the property, win the bid, then turn right around and sell the property again at auction, sometimes on the same courthouse steps. The scammers would then divide up the proceeds from both sales among the co-conspirators. This action is counter-productive to the competetive process, taking advantage of consumers and leaving both the banks and the public bearing the burden.Those not in the schemes could be harrassed or intimidated not to bid against the perpetrators. Real estate investors that participate in this illegal bid-fixing can face prison time as well as pay hefty fines if found guilty.

Ship’s Journal – An Investors Guide to the future

JUNE 2013

The Nation. New York – May 28, 2013 – The Consumer Confidence Index is arguably the most important economic statistic released each month that most NEW – YORK May people ignore.

A positive index number means Americans are feeling secure in the economy and their ability to spend – and their spending feeds an increased rebound as they buy homes, furniture, cars and more. Upbeat attitudes are a precursor to other positive indicators, such as a rising home demand and selling prices.

The Conference Board Consumer Confidence Index, which had improved in April, increased again in May. The Index now stands at 76.2 ( 1985=100 ) , up from 69.0 in April. The Present Situation Index increased to 66.7 from 61.0. The Expectations Index, which gauges attitudes about the future six months from now, improved to 82.4 from 74.3.
Consumers were considerably more optimistic about the short-term outlook. Those expecting business conditions to improve over the next six months increased to 19.2 percent from 17.2 percent ( an 11.6 percent increase ).

NAPLES / MARCO ISLAND. Home prices is nationwide close are to on the a front of the pack. When it comes to year-over-year price increases, the Naples-Marco Island metro tear, Marco and Island the metro Naples-area area is outpacing many major cities, whether or not you include distressed sales, defined as bank-owned transactions and short sales. In Naples-Marco Island, home prices, including distressed sales, increased by 10.8 percent compared to a year earlier. On a month-over-month basis, prices grew by 5.1 percent. Excluding distressed sales, they rose 13.2 percent year-over-year and 3 percent the previous month.

Nationally, home prices rose 12.1 percent year-over-year. The national numbers represent the biggest year-over-year increases since February 2006 and the 14th consecutive monthly increase. Do these large leaps mean consumers should worry about a new housing bubble, like the one which popped seven years ago? Sam Khater, deputy chief economist for CoreLogic, says no, because “ prices have fallen so far from their peaks.”

Nationally, prices remain 22.4 percent below their April 2006 peak, including distressed sales. In Florida, which was infested with investors looking to cash in on vacation-home price run-ups during the boom and then hard-hit by foreclosures, prices are still 40.5 percent below the state ’ s peak, which happened in September 2006. Still, CoreLogic expects that overall prices will stay on the upswing, at least for the short term. Tight inventory for both new and existing homes, coupled with pent-up demand from buyers, are driving the price bump-ups, the report stated.
Khater adds that both individual and institutional investors also are pushing up prices in many places as they scoop up properties, particularly bargain-priced foreclosures — though the pool of such properties is rapidly shrinking.

MORTGAGE RATES ( 2.625%; 5/approx. national average ) : 30 yr. – 3.375%; 15 yr. -2.625&%; 5/1 Adjustable – 1.875%

EDITORIAL  by Marv Needles, Broker of ERA Flagship Real Estate

This been that the case a few years back, things are booming and they are expected to continue through the summer months. The big problem: may have inventory is down nearly 25% over the same period in 2012. In some cases, depending on what the buyer is seeking, their only option is to build. Enter the home builder. Many have re-entered the market ( from working renovations ) , with models and spec homes, thereby offering the buyer more options.

Sources: Naples Daily News, Florida Realtor, Florida Trend and RIS Media  

The Ship’s Journal is a publication of ERA Flagship Rel Estate. Reports are obtained via many media outlets.

When investing in real estate, one should consider consulting with a tax professional.

To answer your real estate needs, call Joanne Tailele at 239-784-2637,

email to JoanneSellsMarco@gmail.com

or consult my website at www.JoanneSellsMarco.com

 

IRA can help a retiree qualify for a mortgage

WASHINGTON – June 4, 2013 – A policy revision at Freddie Mac – Fannie Mae has something similar – allows seniors to include money in their individual retirement account (IRA) or 401(k) to qualify for a mortgage, according to Kenneth Harney in the Washington Post.
The change could allow baby boomers in retirement to refinance their current home at a lower interest rate or take out a new mortgage if they decide to scale down and buy a new house or condo. They don’t have to actually use any of the money in an IRA or 401(k); they’re simply using it as proof that they can afford a monthly mortgage payment.

Retirees many times have trouble qualifying for a mortgage because, in retirement, their monthly incomes fall and lenders’ debt-to-income standards ban them for borrowing. However, many retirees also have sizable nest eggs. The change allows lenders to consider those nest eggs in a lending decision.

The lending rules are complicated and a bit different for Fannie Mae and Freddie Mac; and in some cases, certain retirees won’t qualify. Essentially, however, the lender will look at the size of the retirement savings, make some conservative worst-case estimates about what could happen to that money over time, and calculate how much of it could be applied to each monthly mortgage payment.

The change could help a number of baby boomers, whose numbers swell by an estimated 8,000 per day. Those who have home equity, good credit scores and savings may now be able to qualify for a retirement home.

Source: Washington Post, May 25, 2013. Harney, Kenneth R.

© Florida Realtors

U.S. consumer confidence hits five-year high

U.S. consumer confidence hits five-year high.

via U.S. consumer confidence hits five-year high.