“This Author Doesn’t Understand the Real Estate Business”
I have been in the real estate and mortgage business for over 40 years. In this time period I have seen every imaginable real estate market. One factor stands out, the MARKET is very efficient. Every property on the market will get sold. The eventual price will dictate how quickly the properties will get sold.
With all the numbers being thrown around in the article, he is forgetting about the fact that the population of this country is not decreasing. There are new people coming into the house buying market every day and these numbers will increase, domestic and foreign buyers alike.
More Boomers Selling Homes, but Who Will Buy Them?
By: Mark Koba
Baby Boomers putting their house up for sale could flood the market in coming years, while the younger generations may not be interested in buying, a new report says.
"It's already happening in some states like Michigan," says Rolf Pendall of the Urban Institute and a co-author of the report by the Bipartisan Policy Center.
"Seniors there are already putting their homes on the market and the absorption of housing is less and creating more inventory," Pendall explains. "There's hesitancy on the buyer's part."
As boomers downsize because of retirement, finances, health or death, they're expected to release some 26 million homes onto the market by 2030, according to the Policy Center paper.
The problem is that echo-boomers, or Generation Y—those born between 1982 and 1995—may not be buying up the inventory, says Pendall, whose retired mother is trying to sell a home and downsize.
"Whether it's jobs, confidence, tight credit or a slowdown in immigration, there could be a real slowdown in buying from the younger generation," Pendall explains.
The Bipartisan Policy Center's report states that young adults are struggling with higher levels of credit card and student loan debt than their elders—some of which could take decades to pay off.
Couple that with the current housing struggles and the report concludes that young people are just not in the buying mood—now or anytime soon.
"Certain areas of the country are better off than others," Pendall says. "But if we look at the Northeast and Midwest, seniors are going to be putting homes on the market and moving to warmer climates. That means more inventory to sell. Housing will depend on the echo-boomers, and it's not known what they will do."
But some analysts don't see the explosion of seniors selling homes as a hit on housing.
"It's not that big because when you look at the market, it's pretty good right now and getting better," says Walter Maloney of the National Association of Realtors (NAR).
"Besides, seniors have been selling homes for years, and overall inventories are going down. We believe there is pent-up demand," Maloney adds.
Some experts say a final verdict on any kind of senior housing glut is too hard to make right now.
"The extent to which baby boomers unload their homes is a projection at this point," says Greg McBride, senior analyst at Bankrate.com.
"I think it ignores the impact of foreign investors buying homes in the U.S.," McBride argues. "The decline of the dollar and the global expansion of the middle class is bringing in plenty of buyers."
But even as domestic and foreign investors help improve housing markets such as Miami there may not be enough of them to soak up the homes, says Pendall.
"The sheer number of retirees putting homes on the markets will be overwhelming," Pendall says. "Investors can't make up the whole difference."
The number of homes on the market has declined in the last year. Some 2.3 million are currently for sale—down from 4.4 million in July of last year, according to the NAR. It also takes a much shorter time to sell a house—24 percent of homes on the market are selling in less than three months, down from six months in early 2011.
But other numbers are going up. Since 2011, an estimated 10,000 people in the U.S. turn 65 every day, according the Bureau of Labor Statistics. That's up from 7,000 in 2010. Meanwhile, about 6,000 to 10,000 people retire each day.
Many of those seniors will vacate their current residence to move into nursing homes or be forced to sell because of financial reasons, the death of a spouse or because the house is just too big to maintain.
Admitting that it's hard to say exactly what will happen to housing in the years ahead, Pendall argues that some sort of national housing policy is needed that will help both buyers and sellers at any age.
"It's government and markets too. We need to look at the financial system, tax incentives and why credit is so hard to get these days," says Pendall. "We need to prepare for what's ahead."
image:gregory szarkiewicz/freedigitalphotos.net
“3200 Mortgage Jobs Cut in January”
I don’t understand the math, I don’t see less mortgage activity going forward, if anything I see much more. What is the rational of some mortgage bankers and brokers to cut staff? 
The preapproval activity continues to be up, HARP 2 is now in full force and the FHA refinance program will start up shortly. How do you start cutting mortgage jobs. They must have been reading the papers and listening to economist.
There must be a new formula, hire when mortgage activity goes down and cut jobs when the activity goes up. Almost sounds just like the Federal Government.
Mortgage Bankers and Brokers Cut 3,200 Workers in January
By; Brian Collins
Mortgage companies cut 3,200 full-time employees from their payrolls in January, according to government figures released Friday morning.
The U.S. Bureau of Labor Statistics reported that employment in the mortgage industry fell to 262,100 positions in January from 265,300 in December.
Overall, the number of jobs in the mortgage banking and broker sector fell nearly 4% from a year ago.
The government offers no details on where the job cuts came from but it's likely that a good chunk of the losses came from Bank of America which has been cutting thousands of mortgage workers for the past year.
Meanwhile, BLS reported that the U.S. economy overall created 227,000 new jobs in February. Hiring in January was revised upwards to 284,000 from 243,000. (The mortgage job numbers lag the U.S. total by one month.)
January marks the third straight month in which the economy has generated more than 200,000 new jobs. Jobs in construction were unchanged in February after builders added 21,000 workers to their payrolls in January.
Friday's jobs report also shows the U.S. unemployment rate in February was unchanged at 8.3%
image:ddpavumba/freedigitalphotos.net
“Romney Speaks to Housing and Mortgages”
Mitt Romney is sounding more like the Republican nominee. He at least is speaking to the heart of the problems, jobs and over regulation is hurting any chances for a housing recovery.
Look, all of the candidates on the Republican side have their good points and not so good, but the alternative continues to hurt our economy with regulations that continue to stall any chance for a recovery.
You can’t tell me, that the publicized unemployment rate of 8.3%, which is really double, and a national deficit that continues to spiral out of hand is acceptable to anyone? If these issues are acceptable to you, we are all in deep trouble! 
Romney Shifts Message on Housing, Mortgages
By Kevin Wack
After months of stating that the housing market needs to bottom out in order to hasten an economic recovery, Republican presidential front-runner Mitt Romney shifted to a more proactive message on housing during a weekend campaign appearance.
Speaking at a town hall meeting Saturday in Dayton, Ohio, Romney called on banks to grant more loan modifications. He blamed the federal government for taking steps that deter the private sector from modifying loans to borrowers who owe more than their homes are worth.
"Don't put the home into foreclosure if those people are able to stay in the home and meet those obligations," Romney said. "That's something which a lot of small banks don't feel they can do because they're frightened with Dodd-Frank, and they're frightened whether the regulators, or the inspectors, are going to come in and punish them for having renegotiated those loans."
"I want more flexibility, not less, so we can keep people in homes that can make reasonable payments," he continued.
Of the many criticisms that Republicans have made of the Dodd-Frank Act, the idea that the 2010 law is discouraging banks from modifying mortgages is a new one.
Romney did not explain why Dodd-Frank is to blame. He also did not point out that the Obama administration makes incentive payments to banks that grant modifications.
The former Massachusetts governor's remarks represented a shift in emphasis on housing. In the past, Romney has stated that the federal government should let the market hit bottom, and argued that government programs to aid homeowners are lengthening the pain.
Romney has also been noting that the housing sector is tied to the health of the broader U.S. economy, and he hit that theme again Saturday.
"The right way to get the housing market going is to have people working again," Romney said.
In other remarks, Romney vowed to repeal the Sarbanes-Oxley Act of 2002, which he had previously promised only to pare back.
Sarbanes-Oxley, passed in the wake of accounting scandals at Enron and other companies, required companies to make more disclosures related to financial transactions.
Fellow GOP presidential candidates Newt Gingrich and Ron Paul called for the repeal of Sarbanes-Oxley before Romney did. In an economic plan released last year, Romney supported a partial repeal to reduce burdens on mid-size companies.
But when Romney was asked Saturday whether he supports the law's repeal, he responded, "Yes. There's a direct answer."
Romney went on to decry the impact of both Sarbanes-Oxley and Dodd-Frank. "These legislative monsters that have been created kill jobs," he said.
He also argued that community banks, unlike large Wall Street banks, do not have the resources to cope with the burdens of Dodd-Frank.
Romney recalled speaking to a banker at a big money-center bank who said that the institution has hundreds of lawyers working on Dodd-Frank implementation.
"Now guess how many community banks have hundreds of lawyers? None of them," Romney said. "Community banks can't possibly have that kind of legal help. And so they struggle along, they pull back from making loans. So after Dodd-Frank, guess what's happening? Bigger banks are getting bigger. Smaller banks are pulling back."
image: thephotoholic/freedigitalphotos.net
“Who is Going to Pay for the Mortgage Write-down Bailout”
I have been hearing about this possibility for the last few years. So far, smarter heads have prevailed and it hasn’t happened. Some Liberal members in the House are now putting a full court press on the Administration to bring this to the table again.
President Obama, understandings the bailout idea wouldn’t go over very well in an election year. The Liberal left either doesn’t understand or just doesn’t want to understand that we, the taxpayer, will have to foot the cost... that is their mission.
Liberal Dems Call for Principal Write-downs or DeMarco's Ouster
By: Kevin Wack
Several liberal House members pressed President Obama on Wednesday to fire the acting head of the Federal Housing Finance Agency, Edward DeMarco, if he continues to oppose writing down underwater mortgages.
"My constituents need action now," said Rep. Raul Grijalva of Arizona, who co-chairs the Congressional Progressive Caucus. "Mr. DeMarco needs to take action immediately."
Rep. Yvette Clarke, a New York Democrat, said, "Edward DeMarco, get it done or get out of the way."
Their calls came during a Capitol Hill press conference, where a group of housing activists went even further, arguing that DeMarco has waited too long to deliver relief to struggling homeowners, and he ought to be fired immediately.
The activists, organized as part of a group called The New Bottom Line that is pushing for principal reductions, said they planned to go to the FHFA's headquarters with 85,000 signatures calling for DeMarco to be fired.
Some of the activists carried signs that read, "They get rich. We get foreclosed. They get a bailout. We get mad."
Rep. Jerrold Nadler, a New York Democrat, agreed with the activists' assessment that DeMarco should not be given more time. "He ought to be fired. He must be fired," Nadler said.
Nadler acknowledged that if Obama did drop the axe, the president's choice for the next head of the agency would be unlikely to win Senate confirmation. But he said that Obama should continue firing acting heads of the agency until he finds someone who is willing to write down the principal of underwater homeowners. "Fire DeMarco," Nadler said. "If his deputy won't do it, fire the deputy."
Congressional Democrats have been expressing their displeasure with DeMarco's opposition to principal reductions for more than a year, but Wednesday's press conference signaled that the pressure will likely increase in an election year.
DeMarco, whose agency has broad authority over decisions at Fannie Mae and Freddie Mac, has argued that principal reductions will not provide the best deal for U.S. taxpayers.
He prefers loan modifications where the borrower's interest rate is reduced, and payments on some of the outstanding loan principal are deferred, but the homeowner remains on the hook for the full amount of principal.
But DeMarco has vowed to continue to assess the situation, and his agency said recently that it is studying whether it will make sense to grant principal reductions under a new Obama administration initiative that increases the financial incentive to do so.
Among the Democratic representatives at Wednesday's press conference were Reps. Keith Ellison, John Conyers, Luis Gutierrez, Jan Schakowsky, Sheila Jackson Lee, and David Cicilline.
Rep. Brad Miller, a North Carolina Democrat, offered a more moderate take than some of his colleagues. He declined to call for DeMarco's ouster but stated that a targeted principal reduction program would offer the best deal to U.S. taxpayers who are on the hook for losses at Fannie and Freddie.
"The best way to help homeowners is to reduce the principal in a smart way," Miller said.
But even if the FHFA were to agree to a targeted program of principal reductions, it seems unlikely to satisfy the activists who spoke on Wednesday.
Their new website, americaunderwater.org, states, "We need a minimum of $300 billion in principal reduction to help homeowners and rebuild the economy."
image:renjith krishnan/freedigitalphotos.net
“Preparing for the Home Inspection Process”
Too bad more sellers don’t prepare correctly for the home inspection process. First, it would make the home more saleable and once on deposit it would be a much smoother process and less costly all around.
Whenever I complete a home that we are flipping, we will always have a home inspection done, to make sure nothing was missed. Even though we have already done an inspection, we will recommend that the buyer have one done anyway. It is always great to see the results, since ALL issues have already been done.
Preparing for a Home Inspection: Pillar To Post Helps Buyers and Sellers with All Their Inspection Needs
By: Paige Tepping
For buyers and sellers alike, home inspections are a crucial part of the home-buying and -selling process. While setting up a home inspection once you have an offer on your home is an important piece of the puzzle, taking the time to prepare for the inspection can be just as essential. In fact, Jay Gregg, director of marketing at Pillar To Post, strongly believes that home sellers who take the time to get ready for the inspection will pave the way for a smoother inspection and, therefore, a smoother transaction. The good news is that preparing your home for inspection doesn’t have to cost a lot of money, as the items that need to be addressed are things that homeowners typically take care of on a recurring basis.
“Preparing for a home inspection doesn’t have to be a huge expenditure,” says Gregg, who goes on to say that the most important thing to keep in mind is timing. “Taking the time to prepare your home for inspection is crucial for sellers who have an offer on their home, as this signals a pending home inspection, so they know the buyer and inspector are coming to the home.” Once the inspection is scheduled, sellers should plan to spend the week before the appointment getting the home ready.
Pillar To Post home inspectors are trained to provide a thorough visual assessment of the home, a process which typically takes three hours. During this time, the home is examined from top to bottom, both inside and out. While the inspector will look at and evaluate more than 1,600 items inside and outside the home, including its systems and structural components, there are numerous small things the seller can do beforehand to make the job easier on everyone involved. The most important items that should be addressed prior to the inspection include:
• Clearing all walkways of debris and obstacles so the inspector can easily move around.
• Providing clear access to the attic hatch, which is oftentimes in a closet, so be sure to clear shelves, etc.
• Replacing dirty furnace filters.
• Making sure all lights and receptacles are operational. This includes changing any burnt-out light bulbs.
• Clearing a path in the basement, whether it’s finished or not, so the inspector can walk around the perimeter of the wall.
• Making sure there is access to any mechanicals, such as the furnace, air conditioner and water heater.
“Taking care of the little things, like changing burnt-out light bulbs, is a simple and inexpensive way to eliminate any big suspicions that are totally unnecessary,” says Gregg. In addition, paying attention to the items above will enable the inspector to access every part of the home that needs to be addressed in order to thoroughly inspect a home and see if there are any issues that need to be taken care of.
“Sellers should also consider printing out paperwork that documents any recent service in order to eliminate any mechanical issues,” Gregg adds.
As we continue to adapt to the “new normal” and make our way through today’s challenging market, home inspections are becoming more prevalent, whether they’re performed once a potential buyer has made an offer on the home or to lay the groundwork for future negotiations before the home is even listed.
“No matter what the economy and housing market look like, there is always a sense of worry among potential buyers in regard to what will be found during the inspection,” says Gregg. “However, a little preparation goes a long way toward eliminating that worry from the equation entirely.”
Not only will taking the time to prepare your home for an inspection be worth it in the long run, it will give buyers peace of mind while eliminating doubt and suspect. “If a home inspector isn’t able to access a specific area of the home, they’ll have to put a question mark on the inspection report, which causes suspicion in the buyer’s mind; and nine times out of 10, there’s nothing wrong.”
Pillar To Post understands the importance of educating sellers about the realities of home inspections and how a little work on their own time can help facilitate a successful real estate transaction. The company has created a document, titled “Preparing a Home for Home Inspection,” which is discussed during training sessions and also used as a constant-contact email piece. “This piece is a great tool that REALTORS® can use with their clients and listing agents in order to show how a little due diligence can make a big difference when it comes to the home inspection process.”
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