Today’s News Synopsis:
9 of the nation’s top 20 most stressed housing markets are in California. The Commerce Department reports construction spending increased 0.4 percent in August. Multiple housing analysts predict evictions to decrease dramatically. President Obama signed the bill to extend higher-loan limits for GSEs.
In The News:
Inman – “Bill targets private transfer fees” (10-1-10)
“Private transfer fee covenants typically allow a third party, such as a developer, to collect a fee equal to 1 percent of a property’s sale price every time its sold. The covenants are often in place for as long as 99 years.”
Wall Street Journal “Which Cities Face Biggest Housing Risks?” (10-1-10)
“Within more than 500 metro areas, the top 20 most stressed include nine in California and six in Florida, where the housing bust has been particularly acute. Among the most populous cities, Miami tops the list, followed by California’s Inland Empire, Los Angeles and San Diego.”
Sacramento Bee – “August construction spending up 0.4 percent” (10-1-10)
“Construction spending edged up 0.4 percent in August following a 1.4 percent drop in July, the Commerce Department reported Friday. While spending on government projects rose 2.5 percent, spending on private construction projects dropped to the lowest level in 12 years.”
New York Times – “Foreclosures seen slowing as document flaws emerge” (10-1-10)
“Evictions are expected to slow sharply, housing analysts said, as state and national law enforcement officials shine a light on questionable foreclosure methods revealed by two of the country’s biggest home lenders in the last two weeks.”
Housing Wire – “Obama signs bill to extend higher-loan limits for GSEs” (10-1-10)
“President Obama signed a bill into law Thursday that extends higher-loan limits for the government sponsored enterprises, Fannie Mae and Freddie Mac, for one year. The provisions under H.R. 3081 also allocate $20 billion to the Federal Housing Administration General and Special Risk Insurance Funds to continue making loans through the end of 2010.”
Housing Wire – “Foreclosure robo-signers put homebuyers’ tax credit at risk” (10-1-10)
“Homebuyers who were set to close on the purchase of a foreclosed home may not qualify now for the homebuyer tax credit after lenders suspended those sales in 23 states, real estate agents tell HousingWire.”
Housing Wire – “California AG demands JPMorgan Chase halt foreclosures” (10-1-10)
“California Attorney General Jerry Brown is the latest to call for JPMorgan Chase (JPM: 38.81 +1.97%) to halt foreclosures in the state. California is not one of the 23 states Ally Financial, formerly GMAC, and JPMorgan Chase suspended foreclosure sales in. Brown already ordered Ally to suspend foreclosures in his state.”
Housing Wire – “Fannie, Freddie instruct servicers to review foreclosures” (10-1-10)
“Fannie Mae and Freddie Mac will provide instructions to servicers Friday to review foreclosure processes, ensuring each is in compliance with state law. Major lenders and servicers are reviewing foreclosure processes following announcements from Ally Financial, formerly GMAC Mortgage, and JPMorgan Chase suspended foreclosure sales and cases in 23 states when faulty documentation was detected. Employees at those two companies were signing affidavits without knowledge of the documentation or a notary present.”
Housing Wire – “Amherst: Principal reductions could ‘re-equify’ 11m in imminent default” (10-1-10)
“The housing market is quite fragile and if government policy doesn’t change 20% of American homeowners — roughly 11 million — are in danger of losing their home, according to Amherst Mortgage Insight.”
Bloomberg – “FDIC Plans to Sell $1.12 Billion in Property Loans Seized in Bank Failures” (10-1-10)
“The Federal Deposit Insurance Corp. plans to seek bids for about $1.12 billion of commercial and residential real estate loans as part of the agency’s sale of assets seized from failed banks.”
Looking Back:
One year ago, the NAR’s Pending Home Sales Index showed that sales increased by 6.4 percent in August. Research from Deutsche Bank Securities showed that 26 percent of borrowers owed more than their home was worth. A survey displayed that realtors were in favor of expanding the $8,000 dollar tax credit. Regulation Z changes came into effect. Realtors were interested in expanding first-time tax credit to repeat buyers.
For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.
California Real Estate Investing News is a post from: The Norris Group