Evelyn Johnston Associate Broker Elkhart Indiana Short Sale Expert

Elkhart REALTOR Evelyn Johnston says according to CNN, Customer satisfaction with newly built, single-family homes is increasing after sagging in boom years.

New YORK (CNNMoney.com) -- Builders may not be putting up as many houses as they did during the boom, but what they are building, they're building better.

According to the J.D. Power and Associates 2009 U.S. New-Home Builder Customer Satisfaction Study, overall customer satisfaction increased for the second consecutive year, up 32 points to 811 on a 1,000 point scale.

Satisfaction with the quality of the home also grew, to 825 up from 799. The rate of customer-reported problems dropped to 9.55 problems per home down from 11.51 problems in 2008.

"Fierce competition among home builders has led to a market where only the strongest companies have survived," said Paula Sonkin, vice president of the real estate and construction industries practice at J.D. Power and Associates. "This is great news for new-home buyers -- particularly first-time buyers -- since builders are offering unprecedented high levels of quality, value and service at relatively low prices."

Various California markets, plus Phoenix and Tampa, Fla., recorded the greatest gains in overall satisfaction. Those are all markets hit hard by the real estate bust and they have lots of unsold inventories.

J.D. Powers rates satisfaction on nine criteria: workmanship/materials; builder's warranty/customer service staff; price/value; builder's sales staff; construction manager; home readiness; recreational facilities provided by the builder; builder's design center; and location.

The quality of workmanship and materials has become significantly more important to consumers, the study found, while the construction manager and readiness has become less of a concern.

"Fewer home buyers are spending large amounts of time working with construction managers or are concerned about home readiness, since many builders have large inventories of homes that are already complete at the point of purchase," said Sonkin. "For homeowners, this can make for a smoother, turnkey ownership experience, with fewer unanticipated delays."

Instead, she added, "Upgrades, like granite countertops, have become the norm."

Of the 23 markets covered by the report, Pulte brands, which include Del Webb, DeVosta Homes and Pulte Homes, led in satisfaction in 12 of them. Other market leaders include Ashton Woods, Brookfield Homes, Centex Homes, Darling Homes, David Weekley Homes, K. Hovnanian, Lennar, M/I Homes, Pardee Homes, Shea Homes, Standard Pacific Homes, and Village Builders.

The survey is based on responses from 26,231 buyers of newly built, single-family homes who have lived in their homes an average of four to 18 months.

If you are looking for new home construction in Elkhart, call your local Real Estate Expert Evelyn Johnston with Prudential One Realty at 574-304-7148.

According to a recent CNN news release:

A report released Thursday shows that substantially fewer people had their homes repossessed in August.

Unfortunately, a large number of Americans are still falling behind on their payments.

A total of 76,134 troubled borrowers lost their homes in August, but that is 12.7% fewer than in July, according to RealtyTrac, an online marketer of foreclosed properties.

The pipeline of troubled borrowers remains full, however. Filings of all kinds dropped only slightly, just 0.5%, from July.

According to RealtyTrac spokesman Rick Sharga, there are a couple of possible explanations for the decline in bank repossessions, called REOs in the industry.

"It could be that the government-led mortgage modification programs are finally gaining some traction," he said. "But it could also be that the banks are still delaying repossessions of these properties."

Because banks take big losses on REOs, they may leave delinquent borrowers in their homes, especially where lenders already have a substantial amount of vacant, unsold inventory. Presumably, the borrowers are caring for the properties, which saves banks the time and expense of upkeep and maintenance.

Plus, there is always hope that some of these borrowers will "self-cure" -- or catch up on their loans without assistance -- which is better for banks' bottom lines. In fact, a recent report from the Boston branch of the Federal Reserve found that 30% of borrowers who have missed two mortgage payments eventually become current.

Increases in short sales could also be reducing the repossession statistics, according to Duane LeGate, president of HBN Interactive, a short-sale specialist. These are transactions in which lenders allow borrowers to sell their homes for less than what they owe.

"A lot of banks are delaying the foreclosure process if they see any kind of chance of making a reasonable short sale," he said.

The reprieve in repossessions could be coming to an end, however. Sharga expects a spate of payment problems to start this fall as interest rates reset on some of the exotic mortgage products that proliferated during the boom. Option ARMs (adjustable rate mortgages) in particular will be a big problem.

A Fitch Ratings report released last week forecast that of the $200 billion in option ARMs outstanding, $29 billion will reset to fully amortizing loans by year's end, and another $67 billion will recast in 2010. The average payment increase will be 63%, or $1,053 a month -- an impossible hurdle for many borrowers.

These loans are named for the options they give borrowers. They can pay at a minimum rate, which does not even cover interest; at an interest-only rate; at a fully amortizing 15-year rate; or at a fully amortizing 30- or 40-year rate.

More than 60% of all option ARM borrowers, and more than 80% of all option ARMs issued in 2006 and 2007, often pay just the minimum amount, according to First American LoanPerformance.

That means the principal balances of these loans actually grow. And when they get too large, somewhere between 110% and 125% of the original loan amount, the lender will convert the loan into a fully amortizing mortgage. That usually results in payment shock, a huge jump in monthly mortgage costs.

"We're in the soup for at least another year," Sharga said.

That could mean a third dismal year of foreclosures. So far this year 540,222 homes have been lost to repossession, which is on par with the first eight months of 2008.

Where it's worst

Six states account for 60% of all foreclosure filings, according to the RealtyTrac report. California, where many option ARMs were issued, leads with more than 92,000 filings, followed by Florida with more than 62,000. Michigan is next with more than 19,000; Nevada, whose foreclosure rate of one for every 62 households was the highest in the nation, and Arizona both had close to 18,000. Illinois recorded more than 13,000.

California homeowners also lost more properties to repossession than any other state. There were 14,590 in August, twice the number of Florida, which was the second worst-hit state with 6,446.

Still, those figures show month-over-month improvement. In California, the August total was down nearly 32% from July, and Florida showed a 4.6% improvement. REOs also steeply fell in Arizona (down 16.7%) and Nevada (off 23.8%).

The list of cities worst hit by total foreclosure filings include many names familiar from past months. Las Vegas had the nation's highest foreclosure rate, with 16,798 filings, or one for every 47 housing units.

Second was another repeat offender, Stockton, Calif., where one of every 62 homes had a filing. Modesto, Calif. was third with one in 63.

If you are facing foreclosure and would like to sell your home before your credit report reflects a foreclosure call Elkhart Real Estate Expert and Certified Short Sale Expert Evelyn Johnston with Prudential One Realty at 574-304-7148.

Selling your home before foreclosure is foreclosure prevention, says Elkhart REALTOR Evelyn Johnston, with Prudential One Realty, even if you are behind in your payments, you can sell your home! I just read 4 articles by CNN on Life After Foreclosure, and all were relieved when the process was over. Some successfully sold their homes, and were gratefull for not having a foreclosure on their credit record.

What you need to know about selling your home as a Short Sale is detailed in my blog "Short Sales, Everything You Need To Know". This 5 part series will walk you through the process and answer many of your questions.

If you would like a personal consultation regarding your home and your situation, please call Evelyn Johnston at 574-304-7148.

The First Time Home Buyers Tax Credit of up to $8,00 is coming to an end. Elkhart residents need to take notice and understand that there is less than 90 before the current program comes to a halt. Are you willing to loose up to $8,000? The cost to the taxpayers to extend this offer has kept the program from being passed. Don't loose your share!

According to MSN's article on the clock ticking on first-time home buyers tax credit, more than a dozen bills have been introduced to Congress to extend the life of this popular program. Housing Sales have been up for the past 6 months and the experts are claiming that 48% of the sales are from First Time Home Buyers taking advantage of this offer from President Obama.

What are you waiting for? Have you received your share of the Tax Credit? Call Evelyn Johnston with Prudential One Realty at 574-304-7148 to begin your search today!

The clock is ticking and if you want to buy a home and claim your tax credit, you need be be viewing homes! Elkhart has plenty of homes in all townships for you to find one that suits your needs. The First Time Home Buyer's Tax Credit of up to $8,000 is only available if you close on a home by November 30, 2009. That is less than 90 days away and a normal closing is processed in 30 to 45 days. What are you waiting for?

The Tax Credit is for people who have not owned a home in the previous 3 years, makes $75,000 a year if you are single and $150,000 or less if you are married, and you must live in the home for 3 years. The amount of Tax Credit you are eligible for is 10% of the price of the home up to $8,000. What are you waiting for? Call your Elkhart Real Estate Expert Evelyn Johnston with Prudential One Realty at 574-304-7148.