This was a historical week. Besides marking the 25th anniversary of the explosion of the Space Shuttle Challenger – an event that itself marked the end of an era; this week’s headlines included Obama’s new rules/new economy State of the Union; Friday marked the first time in history that part of the Internet went dead as Egypt “unplugged itself” in a move to settle political unrest and finally…the Financial Crisis Inquiry Commission delivered the results of its investigation into the causes of the financial and economic crisis.
Technology, politics and the economy seem to be unfolding into one.
First let’s point out, there is a lot of BLAME going on, starting with the 500-page FCIC document, or should I say docu-drama. The in-depth analysis covers how we got to where we are today as it relates to the financial crisis, foreclosure crisis and housing crisis.
As taken from the official FCIC press release:
The Commission concluded that the crisis was avoidable and was caused by:
Widespread failures in financial regulation, including the Federal Reserve’s failure to stem the tide of toxic mortgages;
Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk;
An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis;
Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw;
And systemic breaches in accountability and ethics at all levels.
But let’s be clear on BLAME; the last person that should be blamed in this mess is the homeowner. (more…)
This week on the Today Show, real estate mogul Barbara Corcoran shared tips for homeowners who are having trouble selling their home. At Oppenheim Law and Weston Title, we hear about these situations everyday and agree…buyers and sellers need to work together to create a better market.
We took Corcoran’s tips and added some of our own to help subscribers prepare for future Florida real estate transactions.
1. Time it right: Did you know that very few homes sell before Super Bowl Sunday? Consider taking your home off of the market and relist it after the Super Bowl if you’ve been trying to sell for more than four months.
2. Price it wisely, at what it’s worth: Cost is always the deciding factor when it comes to buying a house. This is not a time to build “wiggle room” into your asking price; and even think about listing your home for ten percent less than it’s worth to ensure it is the first home shown.
3. Get an inspection prior to listing the house: Don’t wait for the would-be buyer to discover the problems you could have fixed before selling they will either move to the next house or rack up reasons to expect price cuts.
4. Offer financial incentive up front: By offering to pay closing costs, the first year of property taxes, HOA fees, or lawn care up front, you’ve already got a leg up on the less savvy seller who waits until negotiations to try to sweeten the deal. Don’t forget to include your incentives front and center in the listing, to catch a buyer (more…)
Today has been deemed “Blue Monday,” the most depressing day of the year. Psychologist Cliff Arnall came up with an actual formula to show that the third Monday in January can be a real downer for many people.
The formula is weather plus debt minus salary multiplied by the time since Christmas to the time since failure to fulfill New Year’s resolutions. During this trying time of the year, people start to deal with post-holiday bills coming in, cold temperatures, and shorter days.
This past weekend, while visiting the Sundance Film Festival, I was surrounded by some of the most talented and creative people in the film industry (not to mention a gorgeous backdrop). There I realized that passion is contagious and also inspirational.
First, find a game plan to find out how to get out of your situation, and take control of your life. In a market where so many of us are upside down due to the many factors of the economy including the menacing real estate market, there is still opportunity.
Check out my video message below from Sundance Film Festival and let’s all figure out the game plan for 2011 and beat the Blue Monday formula. Join me at my next Real Estate Workshop on February 9th when we will focus on using the market to “get out of dodge”.
It’s still a buyer’s market. That’s the conclusion of consumers in a new Gallup poll that reveals 67 percent of Americans feel now is a “good time” to buy a house. That hasn’t changed much since April 2009.
So despite harder-to-come-by financing and the possibility of a housing double-dip, it seems historically low interest rates and bargain basement home prices are winning over public opinion. Interest rates may or may not rise, but the bargain basement prices are likely to continue as home foreclosures are reaching record highs.
Foreclosure headlines are telling. South Florida filings dropped 41 percent in 2010 due to the foreclosure freeze. And some are asking if foreclosure lawyers’ misdeeds are being ignored in Florida. Despite the freeze and other legal questions, though, Florida still ranks second in the number of foreclosures in 2010.
And the worst may be yet to come. News reports are citing studies that show real estate short sales are set to increase in 2011 as banks attempt to dispose of defaulting loans without foreclosing. And many may get caught flat-footed in the South Florida foreclosure wave.
As you read all of these headlines, keep in mind that if it’s a buyer’s market, that also means it’s a seller’s market. And with all the foreclosures hitting the market, it’s a good time for a buyer to seek a short sale purchase. Oppenheim Law’s sister company Weston Title & Escrow has been very successful closing short sale deals and guiding clients through the process of both buying and selling short sales. (more…)
Today, Weston Title and Oppenheim Law completed one of the largest short sales with JP Morgan Chase. The original note was approximately $6 million, but the bank approved a payoff for almost half that amount. The bank agreed to the haircut in exchange for receiving the $3 million in proceeds.
Further, the bank waived the deficiency judgment demonstrating what Roy Oppenheim has been stating for the past several weeks, “The banks are eager to deal and get the economy back on track.”
In fact, rumor has it that the JP Morgan Chase CEO, Jamie Dimon, had to sign-off on this deal.
As Oppenheim said two weeks ago in the Sun Sentinel, “The result will be more short sales, loan modifications and ‘meaningful mediations’ that will help stabilize housing prices that have been falling steadily since 2006.
For more on Foreclosures, catch the replay of last week’s Oppenheim Law monthly Foreclosure Defense workshop on Oppenheim Law TV for the next few days!
If the first two weeks of 2011 are any indication, we’re in for a roller coaster year for the real estate economy.
From unleashing the Foreclosure Fraud Files to the Ibanez decision that banks had wrongly foreclosed on two homes, the foreclosure defense climate changed hourly.
Oppenheim echoed a similar sentiment to the Dow Jones MarketWatch and financial news service DebtWire: “I am expecting the banks to do fewer foreclosures and to engage in serious conversation in pre-foreclosure with borrowers.”
In an interview later in the week, Oppenheim told Real Estate Writer Paul Owers “The writing is on the wall that foreclosures aren’t going anywhere,” in the story End in Sight for the Foreclosure Epidemic?
Wondering what this means for Florida homeowners? Is 2011 the year of the short sale or the strategic default? Catch the replay of Oppenheim Law’s monthly Foreclosure Defense workshop on Oppenheim Law TV for the next ten days!
