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Wednesday, March 10, 2010

Electric car charging stations become the catch for builders

Home developers put in new efforts to promote their sales in the Los Angeles area. This time it is the KB Homes, a California-based builder who offer high-voltage vehicle charging stations as an incentive for buying in its newest developments in the area.

The number and popularity of electric cars are increasing with each day. Companies like Nissan. GM and Ford re already offering models or about to offer very soon. Moreover, the sale of electric cars has been mostly successful in this region of California.

The electric cars have batteries that need to be charged. According to KB, homes that are equipped with the charging stations would have more value as they can perform the function quickly when needed.

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State handles mortgage frauds with an iron hand

Arrests and civil actions have reached record level with the State and Federal investigators making the laws strict for mortgage scammers.

According to mortgagedaily.com, the mortgage related lawsuits has been showing an increase of 76 cases compared to the third quarter. There were 46 cases in fourth quarter of 2008 and this has become 134 cases in fourth quarter of 2009.

Since more states are aggressively enforcing related laws, the upward trend in related fraud litigation is likely to continue, predicts Patrick McManemin, a partner in Patton Boggs, a law firm that specializes in mortgage litigation.

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Tuesday, March 9, 2010

HOA find ways to get money from banks

The Home Owners Association (HOA) and Condominium are desperately seeking ways to get money by introducing a new tactic called "reverse foreclosure" which compels banks to pay association fees.

According to the process, when a borrower stops paying the mortgage, banks delay taking the property into foreclosure. When banks delay, the association fees are neither paid by bank nor the former home owner. As a remedy to this, the association takes over the title and files its own foreclosure notice. But the association doesn't have rights to sell the property due to bank's lien to it. So the association moves to court, hands over the property and asks the judge to give back the title to the bank.

When the judge gives the power to bank, they are entitled to pay the fees. This technique is becoming popular in many parts of the country where there are a lot of foreclosed condos, point out experts.


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Monday, March 8, 2010

China facing real estate boom

Real estate prices are touching the skies in China and critics are criticizing it as a bubble. According to Nicholas Lardy, an economist from the Peterson Institute for International Economics in Washington, D.C, the number of Chinese people moving to big cities and doing well there have been increasing and this is fueling the real estate price boom. While the critics blame that the increasingly unaffordable prices are caused due to greedy developers and government policies.

Most of the action takes place in Shanghai. Since 2003 the prices have risen more than 150 percent there. A typical 1,100-square-foot apartment costs about $200,000. However by American standards that doesn't sound very great as the average resident earns less than $5,000 a year.

Some properties are sold for more than $2,000 a square foot which shows that the luxury prices are high. According to Prudential Douglas Elliman real estate, the average luxury apartment in Manhattan was sold for less than $1,900 a square foot in the fourth quarter of 2009.

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Friday, March 5, 2010

Home prices to remain stagnant for years

According to an analysis, the housing prices would remain flat for many more years and aren't going to rise in the recent future. The prediction was given by predict analysts for Barclays Capital in its Residential Credit Strategy report.

The Barclays Capital has put the blame on the government programs that have slowed down the foreclosures. The report says that the hangover of distressed inventory is a huge negative technical. It points out that any rise in price would probably be met by increased distressed sales.

Even though the home prices are cheaper than rent and the income also suggest the same, but an extreme low price is not fair, report concludes.

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Thursday, March 4, 2010

Getting jumbo loan no more a Herculean task

The jumbo loan market has been melting and this makes it easier for the move-up buyers to borrow. Earlier the jumbo loan rates of more than $729,750 in highest priced markets rose throughout the financial crisis and lending standards tightened to the point where borrowers were not able to refinance or get a new loan.
According to rate tracker Informa Research Services, the average interest rate on an aged fixed rate jumbo fell to 5.79 percent recently. Moreover, rates are even lower on hybrid adjustables.
Fannie Mae, Freddie Mac, and the Federal Housing Administration are no longer insuring the banks and the availability of the jumbo loan implies that the banks are feeling more confident.

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Wednesday, March 3, 2010

Tax credits supporting housing market largely

The housing market is flat as the 2010 home sales is likely to be equal to last years', says noted housing economist Tom Lawler. He added that the market would remain flat without the tax credits. All these times, the home buyer tax credit had supported things in a big way, Lawler said.

He thinks that housing would continue in despair if more jobs are not created. But it won't go for free fall. For acquiring a significant recovery, the interest rates should remain affordable and must limit the number of homes in foreclosures. This should be complimented with a rise in employment opportunities too, Lawler suggested.

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