Real estate powerhouse Trulia commissioned a good and proper Harris poll to find out just how frightened home buyers are at the prospect of purchasing a foreclosed property. The survey was conducted over a three day period in April; findings are as follows:
· 69 percent of U.S. adults are a bit skittish about purchasing a foreclosed home (and really, who can blame them given the— ahem— massive media hype surrounding the mortgage crisis.) Fears: 69 percent cite hidden costs, 35 percent risk, and 33 percent fear a drop in home values.
· However, more than half would at least consider it— or thing about thinking about it.
Some Republicans have discreetly defected to the Democratic party recently, if only to support a bill that, if enacted, would (hopefully) stave off the mortgage meltdown by allowing the Federal Housing Administration to take on up to $300 billion in refinanced loans for troubled homeowners. The FHA would then open up a few loopholes in order to allow the same people who qualified for jumbo loans in the first place— those with poor credit, missed payments, and debt up the wazoo— to secure government-backed loans currently reserved for more solvent borrowers. Lawmakers have worked a bunch of provisions into the plan in order to keep buyers from flipping on the gov's dime, staking a nice, high claim on the property should its owner even deign to do so. Major malfunction: Our Prezalicous won't sign the thing! Bush has already declared that he will veto the bill if it comes across his desk today, claiming that it will reward "speculators" rather than homeowners. G.O.P: 1. Home buyers: 0.
· Bush Threatens To Veto Housing Crisis Plan [NPR News]
· Morning Mortgage Meltdown: G.O.P. Bends to Dems' Plans [Curbed SF]
Here's a shocker— Bay Area rental prices, including San Francisco's (natch), have officially outpaced earnings: In order to afford a two-bedroom apartment in the city, workers reportedly must earn at least $30 an hour. (This figure sounds low to us. You?) Ever-increasing rental prices are blamed on the mortgage crisis, as landlords fleece those desperate to rent following foreclosures. Great. [Redfin]
So. Today the Senate passed a package of tax breaks designed to help struggling homeowners and business weather the— all together now— housing crisis! Let's cut to the deets: Expect large tax breaks for builders, a $7k tax credit for those who buy foreclosed properties, and $4 billion worth of grants for communities to rehab abandoned homes. Oh, and money losing businesses (such as home builders) will receive $25 million in tax breaks over three years. Good for them. Landslide here, people— an 84-12 vote, however, doesn't mean its supporters aren't questioning the thing. The common consensus is that the bill, snappily titled the Foreclosure Prevention Act, still favors business over individual home owners; the bill will be torn apart and put back together again before moving on to the House, no doubt. While the White House hasn't issued an all-out fatwa on the bill (yet), it does claim that the measure will depress home values while misappropriating tax payers' money in order to bail out foreclosed properties. Pressing mute button, now.
· Scant Support for Senate Housing Bill [Chicago Tribune]
The donkeys and elephants frolicked gaily on the White House lawn this morning following their particularly civil meeting on the Senate floor. Approved: a hotly-anticipated package of legislation that will help restore the common good within the housing market. A few deets: standard property deductions of $1k for couples, $500 for individuals; billions in bonds for local governments to counsel homeowners, buy foreclosed properties, refinance subprime loans, and provide new mortgages for first-time buyers. $7k tax credit to purchasers of new homes! Tax breaks for struggling home builders! $15-20 billion cost to taxpayers! Details to come— it all hits the floor on Thursday, folks. Brace. [NYT]
If Larry Ellison conned a tax assessor into hustling $4 million back into his pockets— for that trainwreck, no less— then why can't you scrap for a few grand back on you duplex in the Excelsior? Oh, but you can. If your home is worth less now than it was when you paid for it (and chances are, it is) simply call your local assessor and ask for a do-over— hell, in some counties, assessors are reviewing values whether homeowners request them or not, even calling for across-the-board reductions. Anything to stave off the foreclosure-as-sport mindset of those who are losing on their properties. Should the more informal, D.I.Y. re-assessment process not pan out as planned— read: if you don't recoup the cash you dreamed of— one may move on to a more formal (read: fees, fees, fees) process. Now about San Francisco— Let's get serious: nine our of ten city properties have risen in value in this problem-free city! (Didn't you know?) No All-Team cuts here, people. Saddle up, and ride off into the suburbs.
· Assessors amenable to lowering home values [SF Gate]
“This is not April Fool's ... This is serious business" said Nevadan Senator Harry Reid of a bipartisan bill designed to help millions avoid home foreclosure, and set to hit the Senate floor as early as tomorrow. Though Republicans are already accusing Democrats of inflating the numbers—so much for "Kumbaya"— an estimated 1.5 million homeowners are expected to be delivered from financial ruin by a package aimed at helping folks refinance 15-year adjustable-rate mortgages into less-risky loans. This is no time for avant garde financing, people; think tradition, think pragmatism. Think about the next 30 years of your life, 'cause that's how long you're actually going to be shelling out for that traditional-meets-contemporary condo in SoMa. Well played. Savior Senate is expected to perform the following corporal works of mercy:
· $200 million will be allocated for the expansion of counseling programs for those at risk of foreclosure. Marriage counseling not included, we're sad to report.
· Local housing authorities will have $10 billion with which to refinance subprime loans. (Commence with the embezzlement plans!) $4 billion also goes out to local govs for the purchase of foreclosed properties.
· Buyers of aforementioned foreclosed properties will receive a $15k tax credit. W00t!
· Extra bonus miracle: Both the Senate Banking Committee and the House Financial Services Committee have been working on bills that would allow the Federal Housing Administration to insure $300 billion to $400 billion in additional mortgages, with an upfront cost of $10 billion.
· A Bipartisan Bid on Mortgage Aid Is Gaining Speed [NYT]
File this one under "lunch time diversion" and "we're totally screwed." Via HuffPo, we're pleased to present Recession: The Movie. Note guest appearances by Subprime "Bubbles" Mortgage, and Home "Homeless" Foreclosure.
Do we smell a foreclosure? Or, maybe just a quick (and desperate) flip? 682 & 685 15th Avenue, in the Inner Richmond, are two TIC units: 2 bedrooms, 1.5 baths each. All remodeled— sunroom, kitchen, laundry, built-in dining room cabinetry (neat!) and a fireplace. Shared yard, storage, garage. We see a lot of design potential here for those unafraid to step outside of the white cube. Now, on to the prices— this is where it gets interesting. No. 684 is up for $824,000. Fine (though we should note that square footage figures are not listed). No. 282, however, proves a bit more curious: This kitten's up for $874,500 now, but sold a mere five or so months ago (Ed. note: In September actually, as per Redfin) for $1,325,000. Huge diff. A $450,500 depreciation in value over a single quarter (and change)? No way.
· 684 15th Avenue [MLS]
· 682 15th Avenue [MLS]
About Curbed SF
From the Golden Gate to The Mission, in San Francisco, it all comes back to our neighborhoods: where we live, where we work, where we eat, and where we play. Covering real estate sales, rental prices, and news-making deals and much more, it's all on Curbed SF. More about Curbed SF...
Real estate powerhouse Trulia commissioned a good and proper Harris poll to find out just how frightened home buyers are at the prospect of purchasing a foreclosed property. The survey was conducted over a three day period in April; findings are as follows:
Some Republicans have discreetly defected to the Democratic party recently, if only to support a bill that, if enacted, would (hopefully) stave off the mortgage meltdown by allowing the Federal Housing Administration to take on up to $300 billion in refinanced loans for troubled homeowners. The FHA would then open up a few loopholes in order to allow the same people who qualified for jumbo loans in the first place— those with poor credit, missed payments, and debt up the wazoo— to secure government-backed loans currently reserved for more solvent borrowers. Lawmakers have worked a bunch of provisions into the plan in order to keep buyers from flipping on the gov's dime, staking a nice, high claim on the property should its owner even deign to do so. Major malfunction: Our Prezalicous won't sign the thing! Bush has already declared that he will veto the bill if it comes across his desk today, claiming that it will reward "speculators" rather than homeowners. G.O.P: 1. Home buyers: 0. 
So. Today the Senate passed a package of tax breaks designed to help struggling homeowners and business weather the— all together now— housing crisis! Let's cut to the deets: Expect large tax breaks for builders, a $7k tax credit for those who buy foreclosed properties, and $4 billion worth of grants for communities to rehab abandoned homes. Oh, and money losing businesses (such as home builders) will receive $25 million in tax breaks over three years. Good for them. Landslide here, people— an 84-12 vote, however, doesn't mean its supporters aren't questioning the thing. The common consensus is that the bill, snappily titled the Foreclosure Prevention Act, still favors business over individual home owners; the bill will be torn apart and put back together again before moving on to the House, no doubt. While the White House hasn't issued an all-out fatwa on the bill (yet), it does claim that the measure will depress home values while misappropriating tax payers' money in order to bail out foreclosed properties. Pressing mute button, now. 
The donkeys and elephants frolicked gaily on the White House lawn this morning following their particularly civil meeting on the Senate floor. 
If Larry Ellison conned a tax assessor into hustling $4 million back into his pockets— for that trainwreck, no less— then why can't you scrap for a few grand back on you duplex in the Excelsior? Oh, but you can. If your home is worth less now than it was when you paid for it (and chances are, it is) simply call your local assessor and ask for a do-over— hell, in some counties, assessors are reviewing values whether homeowners request them or not, even calling for across-the-board reductions. Anything to stave off the foreclosure-as-sport mindset of those who are losing on their properties. Should the more informal, D.I.Y. re-assessment process not pan out as planned— read: if you don't recoup the cash you dreamed of— one may move on to a more formal (read: fees, fees, fees) process. Now about San Francisco— Let's get serious: nine our of ten city properties have risen in value in this problem-free city! (Didn't you know?) No All-Team cuts here, people. Saddle up, and ride off into the suburbs.
“This is not April Fool's ... This is serious business" said Nevadan Senator Harry Reid of a bipartisan bill designed to help millions avoid home foreclosure, and set to hit the Senate floor as early as tomorrow. Though Republicans are already accusing Democrats of inflating the numbers—so much for "Kumbaya"— an estimated 1.5 million homeowners are expected to be delivered from financial ruin by a package aimed at helping folks refinance 15-year adjustable-rate mortgages into less-risky loans. This is no time for avant garde financing, people; think tradition, think pragmatism. Think about the next 30 years of your life, 'cause that's how long you're actually going to be shelling out for that traditional-meets-contemporary condo in SoMa. Well played. Savior Senate is expected to perform the following corporal works of mercy:
