Frank Rizzo

The economic stimulas package has passed through the house and is heading to the President's desk. More important than rebate checks, we can be seeing a raise in FHA limits. Over the past 7 years, FHA has lost market share because the limits in our market of NYC would be easily surpassed. This raise is long overdue, and while I don't see it causing a rise in home prices, it should help stabilize some housing prices. Couple this with lower rates, and guess what, now is an incredible time to buy, acquire, and invest in real estate - especially in markets like Staten Island where values are at levels unseen in years.

If you would like to discuss how this could benefit you further, contact me at 718 981 3400.

Yesterday, there was an article in the Staten Island Advance www.silive.com, that discussed a recent ruling which homeowners prevailed in staving off the foreclosure. The article went on to mention that the homeowners could not make it the first year before falling behind. While they would of qualified for a traditional home loan (presumably FHA) they instead were "improperly pushed" in to a high interest subprime loan.

The judge ruled that the homeowner could be entitled to reimbursement for fees, payments and the mortgage my be unenforceable. Unenforceable?

This is not to say that there were not some mortgage brokers who were "pushing" certain products, but in fairness there were plenty of homeowners "pushing" for those same products. If they fell behind in year 1 - wouldn't that be before the first reset anyway? And they did agree to borrow money - shouldn't they have to pay that back, like 97% of other homeowners are doing on a monthly basis?

It's not that I don't feel for these people, and others like them. I do. In some cases, and this may be one, they were doing business with people more interested in their bottomline than their relationship. But there have been many instances in which homeowners made decisions, that in hindsight, were incorrect or miscalculated. Simply saying that homeowners are relieved of their obligation could have significant after effects and make it more difficult for millions of others to own their own home. I'm sure that's not what we want to see happen.

Buyers make sure you review what you are signing. You will have a payment in there, if you can't pay it, then say something. And don't sign. Don't worry about your down payment. It will be easier to litigate that, then trying to fight the foreclosure.

This is an update on my previous post of "When Houses Sit..." To recap - this weekend I received an offer on a new construction 2 family for a first time home buyer. The house had been sitting on the market for over 18 months, and the builders had already let go of higher offers when they thought they could get more. My offer included builder incentives and transfer tax. Needless to say, when I personally presented the offer on Sunday they were not overly excited...

Today I met with the builders again. Their first reaction was typical and expected - GET ME MORE... But after allowing them to vent and explain their position, I could help them assess the market. Each month that property sits vacant costs them $xxx dollars. We can save that money by having these qualified buyers, with a reputable lender, and motivated to move in. Let's not forget your money is not in that house, not any more, but in the property you will buy now with that money - at an extreme discount!

So, with getting a little movement on the buyers side (having explained to them at the offer that unless you offer full price, you can expect a counter), the builders agreed to our reduced offer with concessions, as long as we got the transaction closed before an extra payment is made on their end (can do with the help of our lender).

Now, let's get that transaction moving so we can close in 30 days. While I'm at it, I better find another opportunity for that builder to invest in...

I had the distinct pleasure of working with a referral customer this weekend. We had spent some time together at the end of last year, but with her husband involved in contracting and the slow down in the marketplace they were too nervous to own a home at this time.

This week, with rates dropping and some inventory that my office had reduced, I reached out and found their dream of home ownership had been re-ignited. We spent time together on Saturday viewing some new construction, and newly renovated homes and found something that will work for their growing family. With some builder incentives that had been discussed as options we put an offer on paper and I personnally presented the offer this morning.

Here's where it gets interesting. The builders are still thinking about it. I know them, and understand their thinking - "I SHOULD GET MORE... I REJECTED A HIGHER OFFER LAST YEAR... MAYBE I CAN JUST CALL ONE OF THE OTHER INTERESTED BUYERS..."

Bottom line, the house for various reasons, has been on the market for 18 months. This offer, while lower than previous offers is fair, and the buyers are motivated. Sometimes it pays to move on. A vacant house that sits costs, either in interest payments or opportunity costs (and there is tremendous opportunity out there). It's just ironic as they say get me any offer, what they really mean is get me any offer that I REALLY want. I will meet with them tomorrow and go over what their cost may be to wait another 2, 3 or 4 months with this home. Because 3 months from now, today's offer will be worth so much more...

There was an interesting feature in Sunday's New York Times on commuting in NYC. This week they focused on Staten Island transit, the SIRR and the Ferry.

There is a tradeoff in Staten Island. More house and property for the money, but a commute to Manhattan that could create challenges for the city worker. But, what we do have, in terms of train service (while not enough) and ferry is highly efficient. On time, reliable and factored in, creates comfort and balance in the city commuter.

If you drive and get stuck on the Verrazano Bridge during the morning rush, you're probably not happy camper. But if you can use the ferry, which has undergone a tremendous renovation, you'll find it to be a relaxing 25 mintues to downtown NYC. And it's free -- where else does this city give you a free rid?

I'm interested in following the rest of the series, to see about commutes from the rest of the city. Staten Island has a reputation (well deserved) for it's traffic and infrastructure. Part of that has to do with poor planning, which is being addressed. The other part has to do with us, expecting the commute to be something it is not and not accepting it for what it is and using what we can to make the commute the best we can. Atleast, that's what these riders had done.

Interesting...