More U.S. homeowners fell behind on mortgage payments last month, driving the number of homes facing foreclosure up 65 percent versus the same month last year and contributing to a deepening slide in home values, a research company said Tuesday.

Nationwide, 243,353 homes received at least one foreclosure-related filing in April, up 65 percent from 147,708 in the same month last year and up 4 percent since March, RealtyTrac Inc. said.

Nevada, Arizona, California and Florida were among the hardest hit states, with metropolitan areas in California and Florida accounting for nine of the top 10 areas with the highest rate of foreclosure, the company said.

Irvine, Calif.-based RealtyTrac monitors default notices, auction sale notices and bank repossessions.

One in every 519 U.S. households received a foreclosure filing in April. Foreclosure filings increased from a year earlier in all but eight states.

The combination of weak housing sales, falling home values, tighter mortgage lending criteria and a slowing U.S. economy has left financially strapped homeowners with fewer options to avoid foreclosure. Many can't find buyers or owe more than their home is worth and can't get refinanced into an affordable loan.

Efforts by government and the mortgage industry to stem the tide of foreclosures aren't keeping up with the rising number of troubled homeowners.

The April data show nearly half of the properties received an initial notice of default, suggesting many homes were new entrants to the foreclosure process.

"We're still sitting at roughly the same percentage of loans handled in any way successfully as we were a year ago, and the volume (of foreclosure filings) still keeps going up," said Rick Sharga, RealtyTrac's vice president of marketing. "It's apparent that what they've tried so far isn't working."

The U.S. House passed a bill last week that would offer government insurance on $300 billion in new mortgages to refinance loans for an estimated half-million borrowers facing foreclosure, particularly those who now owe more than their houses are worth because of declining values.

House lawmakers also passed a bill that would send $15 billion to states to buy and fix foreclosed homes.

Still, should the homeowner aid package clear the Senate, it faces a potential hurdle in the White House, which has threatened to veto the plan, arguing it's too risky and amounts to a lender bailout.

Even if a legislative compromise is reached, it could come too late for homeowners with adjustable-rate mortgages scheduled to reset to higher rates this month and the next.

More than 1 million home foreclosures are forecast for 2008.

"It doesn't look like the volume is going to slow down any time soon," Sharga said.

More than 54,500 properties were repossessed by lenders nationwide in April. In all, about 2 percent of U.S. households were in some stage of foreclosure during the month, RealtyTrac said.

Still, as foreclosed properties pile up, they add to the inventory of homes on the market and can drag down home prices. The impact is felt mostly in regions where foreclosures are concentrated, such as Southern California, the Las Vegas area, South Florida and parts of Arizona.

Nevada posted the worst foreclosure rate in the nation, with one in every 146 households receiving a foreclosure-related notice last month, nearly four times the national rate.

The number of properties with a filing jumped 95 percent versus April last year but declined 5 percent from March.

California had the most properties facing foreclosure at 64,683, an increase of 112 percent from April 2007. The number of properties declined less than 1 percent from March.

The state posted the second-highest foreclosure rate in the country, with one in every 204 households receiving a foreclosure-related notice.

California metro areas accounted for six of the 10 U.S. metropolitan areas with the highest foreclosure rates, led by Merced, with one in every 66 households receiving a foreclosure notice.

Arizona had the third-highest foreclosure rate, with one in every 224 households reporting a foreclosure filing in April. A total of 11,620 homes reported at least one filing, up nearly 181 percent from a year earlier and up 26 percent from the previous month.

Like Las Vegas and inland regions in California, areas of Arizona saw a sharp run-up in speculator-driven home prices and new home construction during the housing boom.

Florida had 35,264 homes reporting at least one foreclosure filing last month, a 146 percent jump from a year earlier and a 17 percent hike from March. That translates into a foreclosure rate of one in every 242 households, the fourth-highest in the nation.

The other states among the 10 with the highest foreclosure rates in April were Colorado, Maryland, Georgia, Ohio, Michigan and Massachusetts.

Article courtesy Associated Press
Written by Alex Veiga

We’re having our kitchen remodeled, and our contractor says a permit is not necessary since we are not changing the "footprint" of the house. However, a friend is having her kitchen remodeled and was told that a permit is required.

I know each city, state, etc. has different requirements and I don't expect that you would know all of them, but, in general, how do you feel about permits and remodeling? Is it unwise to go ahead without one? I’m a little uneasy about proceeding, and your advice would be appreciated. ~ Muddled about the Remodel

Dear Muddled,
Building permits are required whenever there is a significant alteration to the structure. For example, removing part of a structurally bearing wall in order to enlarge an opening would require a building permit, since it affects the overall structure of the house. Taking out a window and replacing it with a large glass door would be another example.

There are other permits besides just the ones related to the structure. An electrical permit is required whenever you alter the home’s wiring. Removal of fluorescent lights and the installation of all the new lighting would fall under that. If you have the sink moved to a new location, that would require a plumbing permit.

In truth, many contractors skip the permit process for a relatively straightforward remodeling. However, in my opinion I would get the permit. Not only is it legally required, but more importantly, it helps safeguard your home by independently ensuring that the work has been done correctly.

Beyond that, many of today’s homebuyers are a lot sharper than they used to be, and the minute they see a remodeling they will ask to see the permit history. With the Internet, it’s also very easy for a buyer or a real estate agent to jump online and view the permit history for a given address, since it’s all public record.

As far as cost is concerned, the only additional cost should be the actual value of the permit, plus perhaps an hour or two of the contractor’s time in obtaining it. The contractor should already have been planning on doing all the electrical work to code, so having a permit should not add anything to the original cost of the estimate. If it does, I would be very suspicious of the contractor. You may also have to add a couple of days to the overall length of the project to account for the inspections. As part of the inspection process, you will also be required to add smoke alarms if the house currently doesn’t have enough.

Getting an electrical permit, as well as any permits for structural, mechanical, and plumbing changes, will cover you legally and also give you the peace of mind of knowing that the work was done correctly.


Article courtesyof Inman News

written by Paul Bianchina

I've invested in the stock market in the past and lost my shirt (and pants).  But Real Estate in the long run historically continues a steady increase.  I found the article about the Recession and wanted to share it with you.

In the initial stages of a Recession (yes everywhere people are now referring to the “R” word) sellers remain under an illusion of inflated home values regarding the real value of their property, while around them this false impression of value leads to a drop in sales as buyers respond by pulling out of the market.

At some point (about now) reality sets in and some owners reduce prices fueled by a growing financial crunch. There is an increase in the number of short sales, foreclosures rise and banks start taking back many unwanted properties, dropping cash flows lead to losses that force property auctions and a downward spiral of home prices is the result.

Prices are driven price down, developers are stuck with new homes and banks are bulging with foreclosed properties. So who are the largest sellers of homes today? Most likely Countrywide, US Bank, Deutsche Bank, Wachovia, Downey Savings and Loan, Wells Fargo and Washington Mutual.

As a matter of fact, the median sales price of a bank-owned property ranges between 15% to 45% lower than the median listed price of homes for sale in the same neighborhood.

So how far and how long will this go?

Well I’m no economist and I don’t have a crystal ball, but what I can share with you is that statistics indicate that a normal recession is around 10 months (but who knows what normal is). It seems that predictions are running everywhere from 10 to as many as 24 months before we turn the corner.

This is largely founded on the fact that we already have a national “house-for-sale” inventory of around 11 months. U.S. foreclosure filings jumped 57% and bank repossessions are up 129% from a year ago. We can expect some 2.5 million foreclosed properties to be on the market this year and in 2009.

In short - too much stock and too few buyers.

Add to that are mortgage rates, the mother’s milk of the housing market, that seem to be on the rise – both internationally and locally. It would seem that “The 2007 Hangover,” which I wrote about toward the end of 2006 in my annual Swanepoel Trends Report, will provide the industry a headache well into 2009 and beyond.

On another note, the Mortgage Reform and Anti-Predatory Lending Act of 2007 bars banks from steering any consumer to a loan for which the consumer lacks a reasonable ability to repay, does not provide a net tangible benefit or has predatory characteristics. A predatory loan has never been defined and will surely mean, to a trial lawyer, any loan that a marginal buyer cannot afford anytime in the future. Analysis performed for the Consumer Mortgage Coalition concluded that because of the subjective standards the House bill "will likely generate significant litigation" and lenders will "rarely, if ever, be able to dispose of even frivolous lawsuits".

So, during these complex and difficult times, this legislation adds a further incentive for banks to stop lending to all but the best qualified individuals. Therefore it would appear that for the foreseeable future, low-income home buyers without stellar credit scores will find it nearly impossible to get any home loan - which compounds the downward pressure on home values.

As if this isn’t already enough “bad news” another growing concern is the rapid build up of household debt in the U.S. According to Business Week, U.S. households now owe almost $14 trillion, nearly equal to the annual output of the U.S. economy. Regrettably these two are interwoven and one financial crisis feeds off the other.

On the optimistic side: The current housing recession, sub prime mess and the foreclosure explosion won’t last forever. The years 2006 – 2009 will unquestionably leave a scar, but the American dream of owning your own home will return in all its glory. We may have to wait another year or more but keep the faith, real estate will once again create wealth and fuel the economy.

Till then, be astute, knowledgeable and remain positive.

article courtesy of Broker Agent News

written by Stefan Swanepoel

Salt Lake City doesn't take the huge increases that other markets do, but on the same hand we don't take the huge decreases that other parts of the country are experiencing.  We're beginning to see some activity in the market.  That's good news.

Spring is typically a good time for homeowners to start preparing to sell their homes because families interested in moving will often look now so that they can buy a home just in time for the kids to go on summer break.

Landscaping and curb appeal are among the top areas that buyers notice first. In fact, some studies show that good quality landscaping can increase the value of a home from 5 to 11 percent. Elements such as curving flowering beds and design sophistication attract buyers more easily than just rectangular boxes filled with flowers. Plant size and the diversity of plant material are also important to buyers. And colorful plants that often don't cost much to put in such as annuals can really brighten the look and the appeal of a yard.

That's why as the country gradually starts to thaw out, many sellers start to spiff up their homes and gardens to make them irresistible to buyers but these things can bring unwanted guests as well. If you don't plan carefully, you could be building an attractive garden that leads a trail of ants right inside your home.

"If you build a beautiful mulch garden around your home, you want some sort of a concrete barrier or some other material besides wood between the mulch area and your home," says Nic Izatt, branch manager for Antac Pest Control.

Izatt says it's very important to not have any earth-to-wood contact. He says that having a garden too close to your home without any barrier can encourage ant and termite colonies to develop.

So while you may be looking to create value and appeal give consideration to things that might not only attract insects (which can be a minor or major problem) but also consider how the overall landscape is working in a yard.

The American Society of Home Inspectors cautions buyers and sellers that, as they are enjoying the pretty landscape, they need to be sure to give a careful check on how the elements all function together. For instance, are the plants healthy? Is the placement of large trees, the garden or lawn in a hazardous position or sloping toward the home? Is foliage too close to the home? Again, this can become a breeding ground for insects. Taking note of these types of possible landscape issues can help to ward off future headaches.

Here are a few things to watch for when either getting your yard ready for sale or when looking to buy.

Get to the root of it: while seeing exactly where trees roots are located can be a bit difficult, spotting any obvious signs of lifting or cracking sidewalks or driveways can be an indication that there is a root problem. The opposite also poses a problem. If you see areas where the yard is sunken in, that could indicate a leaking sewer line resulting from a root interference problem.

Know the topography: understand potential risks such as if you're located at the bottom of a hillside. In heavy rains the water will flow downward toward the foundation of your home, possibly causing flood.

Limb control: notice if tree limbs are out of control, branching out in every direction and touching the roof or interfering with power lines. Watch out for tree limbs that are hanging over chimneys as animals can climb down the chimney but also the branches could block the draft, creating higher carbon monoxide levels in the home.

Close-up look: closely examine plants in your yard and be sure that you don't see mushrooms or fungus growing at the bottom of the trees as that can be a warning sign of a health issue.

Landscaping that's been thoughtfully created and taken care of will be a huge benefit to both the seller and the buyer.


Written by Phoebe Chongchua

(this article courtesy of Broker Agents News, written by By: Tim and Julie Harris.)

I love this time of year.  I was taking a picture for one of my new listings and just had to share how absolutely beautiful Salt Lake City is this time of year.

Here is a picture of a development where I just listed a condo for sale.  Feel free to search my listings for 793622 and check out this delightful condo.

Existing-home sales edged down in March, remaining within a narrow range of sales activity that has persisted since last September, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – were down 2.0 percent to a seasonally adjusted annual rate1 of 4.93 million units in March from a level of 5.03 million in February, and remain 19.3 percent below the 6.11 million-unit pace in March 2007. A rise in condo sales in March was offset by a drop in single-family sales. Regionally, sales rose in the Northeast and West but fell in the Midwest and South.

Lawrence Yun, NAR chief economist, said the market is performing unevenly. “Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices in declining markets,” he said. “At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines.”

The national median existing-home price2 for all housing types was $200,700 in March, down 7.7 percent from a year ago when the median was $217,400. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets.

A mix of market conditions continues around the country, but areas showing healthy price gains include Des Moines, Iowa; Austin, Texas; and Durham, N.C.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.97 percent in March from 5.92 percent in February; the rate was 6.16 percent in March 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said there are problems with the implementation of mortgage guidelines. “It appears there is some over-reaction on the part of some lenders now in requiring higher downpayment percentages than may be necessary,” he said. “On the other hand, buyers in many parts of the country are able to take advantage of more lenient policies for FHA loans. However, because lenders don’t have enough underwriting experience with FHA loans in high-cost areas, there are localized bottlenecks in loan processing. Consumers should consult with a Realtor® in their area to learn about the kind of financing that may be available to meet their needs.” Yun offered a caution. “With elevated inflation, the Federal Reserve should be extra careful about further rate cuts,” he said. “Mortgage interest rates, which do not move directly with Fed funds rates, may rise measurably and hurt the housing recovery if inflation gets out of hand. Monetary stimulus is plentiful – what is needed more at this point is a home buyer tax credit to get buyers off the sidelines and prevent the market from overshooting on the downside.”

Existing-home sales edged down in March, remaining within a narrow range of sales activity that has persisted since last September, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – were down 2.0 percent to a seasonally adjusted annual rate¹ of 4.93 million units in March from a level of 5.03 million in February, and remain 19.3 percent below the 6.11 million-unit pace in March 2007. A rise in condo sales in March was offset by a drop in single-family sales. Regionally, sales rose in the Northeast and West but fell in the Midwest and South.

Lawrence Yun, NAR chief economist, said the market is performing unevenly. “Though mortgage rates are at historically low levels, some borrowers are facing restrictive lending practices in declining markets,” he said. “At the same time, many buyers continue to bide their time with a large number of homes to choose from, while other potential buyers remain on the sidelines.”

The national median existing-home price² for all housing types was $200,700 in March, down 7.7 percent from a year ago when the median was $217,400. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively higher sales activity in low-cost markets.

A mix of market conditions continues around the country, but areas showing healthy price gains include Des Moines, Iowa; Austin, Texas; and Durham, N.C.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.97 percent in March from 5.92 percent in February; the rate was 6.16 percent in March 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said there are problems with the implementation of mortgage guidelines. “It appears there is some over-reaction on the part of some lenders now in requiring higher downpayment percentages than may be necessary,” he said. “On the other hand, buyers in many parts of the country are able to take advantage of more lenient policies for FHA loans. However, because lenders don’t have enough underwriting experience with FHA loans in high-cost areas, there are localized bottlenecks in loan processing. Consumers should consult with a Realtor® in their area to learn about the kind of financing that may be available to meet their needs.”

Yun offered a caution. “With elevated inflation, the Federal Reserve should be extra careful about further rate cuts,” he said. “Mortgage interest rates, which do not move directly with Fed funds rates, may rise measurably and hurt the housing recovery if inflation gets out of hand. Monetary stimulus is plentiful – what is needed more at this point is a home buyer tax credit to get buyers off the sidelines and prevent the market from overshooting on the downside.”

Total housing inventory rose 1.0 percent at the end of March percent to 4.06 million existing homes available for sale, which represents a 9.9-month supply³ at the current sales pace, up from a 9.6-month supply in February.

Single-family home sales fell 2.7 percent to a seasonally adjusted annual rate of 4.35 million in March from 4.47 million in February, and are 18.4 percent below the 5.33 million-unit pace in March 2007. The median existing single-family home price was $198,200 in March, down 8.3 percent from a year ago.

Existing condominium and co-op sales rose 3.6 percent to a seasonally adjusted annual rate of 580,000 units in March from 560,000 in February, but are 25.5 percent below the 779,000-unit level a year ago. The median existing condo price⁴ was $219,400 in March, which is 2.8 percent lower than March 2007.

Regionally, existing-home sales in the Northeast rose 2.2 percent to an annual pace of 910,000 in March, but are 18.8 percent below March 2007. The median price in the Northeast was $284,300, up 4.6 percent from a year ago.

Existing-home sales in the West rose 2.2 percent in March to a level of 940,000 but are 22.3 percent below a year ago. The median price in the West was $285,100, which is 14.7 percent lower than March 2007.

In the South, existing-home sales fell 3.5 percent to an annual rate of 1.92 million in March and are 20.0 percent below March 2007. The median price in the South was $167,200, down 7.1 percent from a year ago.

Existing-home sales in the Midwest dropped 6.5 percent to an annual rate of 1.16 million in March, and are 15.9 percent below a year ago. The median price in the Midwest was $152,600, down 5.3 percent from March 2007.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

¹ The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

² The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the geographic composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

³ Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases (e.g., condos were 9.5 percent of transactions in 1998, 8.5 percent in 1990 and only 6.1 percent in 1982).

⁴ Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

Article courtesy of National Association of Realtors

Mouth of Cottonwood Canyon

• 2,368 sq. ft., 3 bath, 5 bdrm 2 story split - MLS® $290,000

Cottonwood Heights, Salt Lake City  -  Contemporary home*valuted ceilings*Spacious main floor living with formal dining*cozy wood burning frplc*private back yard*mature trees*Fabulous Mountain views*Located near shopping*schools & Cottonwood Heights Recreation center*5th bdrm needs closet

Property information

SYRACUSE BEAUTY

• 3,340 sq. ft., 3 bath, 3 bdrm ranch - MLS® $290,000

Gateway, Syracuse  -  IMMACULATE*SHOWS LIKE A MODEL HOME*BAY WINDOW AT KITCHEN NOOK*SPACIOUS GREAT ROOM W/VAULTED CEILINGS*OPEN FLOOR PLAN*LARGE MASTER BEDROOM W/GRAND MASTER BATH*SEPARATE TUB AND SHOWER*WALK IN CLOSET*PARTIALLY FENCED BACK YARD WITH MOUNTAIN VIEW.

Property information

Gated Community in Holladay

• 3,458 sq. ft., 3 bath, 4 bdrm 3-level split - MLS® $400,000

Willows of Holladay, Salt Lake City  -  FABULOUS GATED COMMUNITY IN HOLLADAY*INSIDE LOT*FORMER MODEL HOME*CUSTOM MAPLE CABINETRY*CORIAN*TILE FLOORS*MAIN FLOOR MASTER BEDROOM*GRAND MASTER BATH W/JETTED TUB*WONDERFUL ARCHITECTURAL STYLE*9' CEILINGS*42" VANITIES*LAUNDRYROOM W/UTILITY SINK. WASHER, DRYER RANGE WITH DOUBLE OVENS AND REFRIGERATOR INCLUDED. KEYPAD ENTRY INTO GARAGE. CEILING FANS IN ALL BEDROOMS AND LIVING ROOM..CLOSET ORGANIZER IN WALK-IN CLOSET. CUSTOM CABINETRY IN LAUNDRY ROOM. HOA FEES INCLUDE WATER, SEWER, GARBAGE SERVICE, CABLE TV, YARD MAINTENANCE, SNOW REMOVAL, POOL/SPA ACCESS, CUSTOM STREET LIGHTING AND MAINTENANCE TO COMMON AREAS.

Property information

FREE 42" BIG SCREEN TV

• 992 sq. ft., 2 bath, 2 bdrm 2 story - MLS® $134,900 - PRIVATE END UNIT

Barrington Park, Taylorsville  -  FREE 42" BIG SCREEN TV*PRIVATE END UNIT TOWNHOME IN COVETED BARRINGTON PARK DEVELOPMENT*WASHER,DRYER,RANGE,MICROWAVE & FRIDGE INCLUDED*PRIVATE PATIO W/STORAGE AREA*2 CAR CARPORT*GOLF *TENNIS COURTS &HEATED POOL*ASK AGENT ABOUT HOA ASSESMENT*(HOA includes garbage, snow removal, common areas, swimming pool, tennis courts.)

Property information

3600 Square Foot Rambler

• 3,677 sq. ft., 3 bath, 3 bdrm ranch - MLS® $400,000

Brigadoon Park, West Jordan  -  Large,fabulous rambler in prestigious Brigadoon Park Subdivision. Formal living room, spacious family room iwith plenty of space for the big screen & cozy fireplace. Vaulted ceilings, walk-in closet, grand master bath. Gorgeous, professionally landscaped yard.

Property information

On Culdesac

• 2,540 sq. ft., 2 bath, 4 bdrm ranch - MLS® $230,000

Oguirrh Shadows, West Jordan  -  Completely remodeled. New carpet, fresh paint. Located on quiet culdesac.Formal living room,vaulted ceilings,large family room in basement.Basement finished.Large deck with fabulous view of moumtains.Close to shopping, schools, churches and recreation.

Property information

Completely Remodeled Millcreek Tudor

• 2,138 sq. ft., 2 bath, 4 bdrm bungalow - MLS® $300,000

Milcreek, Salt Lake City  -  Completely updated Eastside Tudor. Beautiful hardwood floors, updated kitchen and bathrooms, newer furnace, electric, watter heater, fresh paint, walnut trim molding, tile, refinished hardwood floors. Spacious family room in basement.

Property information