Surprising Swing Up in Home Sales

Sales of previously owned homes came in 18.6 percent higher last month when compared to August 2010, according to data released Wednesday by the National Association of Realtors (NAR).

The latest numbers far surpassed market expectations. Many analysts were forecasting a decline while others were predicting a much more modest increase, with projections for the annual rate ranging between 4.61 million and 4.80 million.

Household Debt and Wealth Both Fall in Second Quarter

The level of U.S. household debt compared with after-tax income fell in the second quarter to the lowest level since 2004, according to data released on Friday. This may mark the continuation of a trend that could lay the foundation for greater consumer spending.

A Federal Reserve report showed that household mortgage debt fell while after-tax income rose in the second quarter. However, consumer credit, which accounts for a smaller portion of household balance sheets, rose.

More from housingwire.com:

Montclair's Butterfly Tent

“How does one become a butterfly? They have to want to learn to fly so much that you are willing to give up being a caterpillar.”
― Trina Paulus, Hope for the Flowers

The Solar Lining Behind the Solyndra Fiasco

Grist is pointing out that the bankruptcy of the solar company Solyndra which media reports have depicted as the end of solar power in the U.S. This is like saying there is no future for the internet because Netscape went out of business.

The irony of it all is that Solyndra was the victim of a big success -- the price of solar power has fallen rapidly, making more expensive technologies like theirs uncompetitive, but more importantly, making solar power a real player in the U.S. energy economy -- especially in New Jersey.

Another Day, Another Record Low in Rates

Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.89 percent, down from 3.92 percent at this same time last week. This rate represents the lowest rate recorded since Zillow Mortgage Marketplace launched The previous low was 3.92 percent, first recorded on Aug. 10, 2011.
The 30-year fixed mortgage rate stayed below 4 percent for the majority of last week, hovering between 3.92 and 3.99, until jumping to 4.09 percent yesterday. The rate quickly returned to 3.92 percent the same day and spiked one last time before plummeting to the current rate early this morning.

Additionally, the 15-year fixed mortgage rate this morning was 3.12 percent and for 5/1 ARMs, the rate was 3.48 percent.

In Memorium

‎"I'm caught off guard more often than I would like today, that it's still such a powerful shock. That whole surrealness, it just hits you again - like, did that really happen? "
ELLEN MORAN, whose brother John, a New York City firefighter, was killed on Sept. 11, 2001.

The Enticing Promise of SPIN Farming

In these days of recession-ready frugal green living and personal green stimulus plans, many folks are looking for new sources of primary or secondary income. While farming may sound like it needs major capital investment, increasing numbers of people are growing surprising amounts of food on surprisingly small plots of land. Some are renting, others own land.
One solution may be to SPIN your garden into a profitable mini-farm.

ForSalebyOwner.com Founder Finally Hires Broker to Sell

Ahh, sweet irony! Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto listed his 2,000 square foot New York condo, a two bedroom in Chelse, on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker Jesse Buckler who immediately advised a price change as the listing was not attracting the right buyer.
Can you guess what happened next?

According to AgentGenius.com, the broker persuaded Sambrotto to RAISE the asking price. He woud up attracting multiple offers and closing for $150,000 over the original asking price -- $2.15 million--with the help of a real-estate broker and a standard 6% commission...

US Freezing Payments to Chase and B of A

The Treasury Department will withhold payments once again to Bank of America and JPMorgan Chase for their poor performance modifying mortgages in the second quarter. Both banks need substantial improvement to their operations within the Home Affordable Modification Program(HAMP), according to the compliance review conducted by the Treasury.

The Treasury compliance team looked at how each participating servicer performed when contacting homeowners, evaluating them for the program and how they assisted with any questions or document submissions. Including these judgments, the Treasury also looks at HAMP data gathered by Fannie Mae to determine which servicers need improvement.

The government first criticized these lenders in June, along with Wells Fargo & Co. and Ocwen Loan Servicing, and began withholding financial incentives of up to $1,000 per permanent loan modification. Wells Fargo and Ocwen were taken off the list of lagging companiesin the second quarter.

Since HAMP launched in March 2009, servicers started more than 791,000 permanent modifications with roughly 28,000 reported in July, according to the latest Treasury data. Roughly 1.6 million trials have been extended, and more than 763,000 canceled due to a redefault or not enough information was submitted. (Note: Chart above reflects activity to 11/09)

Time for a Fresh Look

New month. New season. New look. Hope you like it.
We've also tried to rearrange some of the links and interactive widgets so that they're more accessible and make room for the addition of some new elements ion the near future. Analytics is showing that you're searching out posts that we've written up years ago so a few of the more popular links may pop up once agin on the right sidebar.

The Power of the Passaic (Video)

A couple of miles upriver from the nationally renowned Great Falls, Little Falls can sometimes be even more turbulent after a storm. It's sound and fury two days after the "departure" of Hurricane Irene is awesome to behold.

Seen here just after reaching the high water mark in hundreds of Little Falls township homes on it's way to invading hundreds more in Paterson and other towns downriver.

The Market Improves for Irene Survivors

Perfect time to check out those flood prone homes for good deals. If the basements are dry after this weekend's rains, they'll probably always be dry. If they're wet and require flood insurance, you may save enough to flood proof it and still make a profit.
We wrote about this strategy over 4 years ago and the advice applies now more than ever since interest rates may never be lower and sellers have never been more motivated.
If you're thinking of selling and your basement stayed relatively dry, this may be the ideal time to enter the market.

Fixer - Uppers at the Height of Abandonment

Just as with foreclosed homes, many of the grandest of skyscrapers occasionally fail to become economically viable and fall into abandonment. Gadling.com has compiled a selection of such structures located from North Korea to Venezuela. These structures differ in their stories and circumstance, but each is a fine glimpse at post-apocalyptic urban decay.

Time to Update Sunday Open House Schedule!

37 are still scheduled for this Sunday in our small part of NNJ. Wake up guys!

The East Coast Quake

The United States Geological service has a site that monitors earthquake reports, It includes a revealingr Community Internet Intensity Map.
UPDATE: The screen capture above was posted about an hour after the quake. You can click here to see the latest update of their map(zoom out) which reflects thousands of additional reports.

Go North Young Critters!

Animals and plants are shifting their natural home ranges towards the cooler poles three times faster than scientists previously thought. In the largest study of its kind to date, researchers looked at the effects of temperature on over 2,000 species.
They report in the journal Science that species experiencing the greatest warming have moved furthest.

Scientists have previously reported on individual species moving towards the poles or uphill, in mountainous regions, as their traditional habitats shifted due to global warming. But this new study analysed data on more species to get a more comprehensive picture. On the average, these species are moving to higher elevations at 36 feet per decade and higher latitudes at 10.5 miles per decade. at the extreme end, the comma butterfly in Great Britain has moved more than 135 miles in 21 years. According to USA Today, the average distances are two or three times faster than when it was last measured, in 2003.
Might be time to invest in Canadian real estate.

Banks Increasing Incentives for Short Sales

NJ Realtors are beginning to notice that banks are more willing than ever to expedite the short sale process. They've naturally tended to avoid working with underwater sellers since their mortgage holders were so often understaffed and uncooperative in responding to buyer's offers.
A short sale is a home that’s priced below the seller’s mortgage balance, because the balance exceeds its current market value. Banks agree to short sales because the next best alternative is often foreclosure, which will cost them even more. With local foreclosures suspended for nearly a year because of the "robo-signing" fiasco, short sales have come to dominate the market.
They've come to realize that increasing their staffing and speeding up the extra paperwork involved, saves them money in the long run.

Caring for Older Homes

Older homes need special attention. Ron Holborn, a fellow Realtor from Southern California, suggests his top five tips on how to keep your older home safe and going strong.

1. If your home has an old boiler system, replace with a modern, efficient boiler or furnace for energy savings.

2. If central air isn’t an option, consider installing a large ventilation fan or whole-house fan in the attic. The fan can bring in a breeze through the open windows in the house.

3. If your home has knob and tube electrical wiring, replace it with a safer, modern system with a new electric panel and house wiring.

4. Inspect the roof every six months. Replace or repair worn or cracked shingles immediately. If the roof is more than 20 years old and most shingles are worn or damaged, it’s time to replace it.

5. Steel plumbing pipes can clog from internal rusting. Replace them before they burst or reduce your water pressure.

Dozens more tips from Realtors nationwide can be found on Holborn's ActiveRain blog.

Updated Details of Apple's New HQ

Two months ago, when Steve Jobs originally introduced his grandest vision for Apple's future, eyebrows were raised concerning it's practicality. This finalized plan, presented to the Cupertino Planning Board, may or may not be a prototype of the corporate headquarters of the future, but somehow it makes sense for Apple.

HUD's New Tool for Mapping Local Foreclosures

The U.S. Department of Housing and Urban Development has unveiled a Web-based mapping tool displaying the location of all foreclosed properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) -- nearly half of all "real estate owned" (REO) properties in the U.S. The goal is to help local communities, homebuyers and investors locate and acquire government owned properties.

As HUD explains it:HUD's REO Portal "is a consolidated neighborhood listing and mapping tool to assist neighborhood stabilizers in identifying Real-Estate Owned (REO) properties from Fannie Mae, Freddie Mac and FHA in targeted geographies. The portal supports more efficient disposition of REO properties to support the stabilization of neighborhoods and recovery of local housing markets by enabling a neighborhood-focused strategic approach to acquisition. "

Breaking it Down for Climate Change Skeptics

It's not just the statistics of another hotter than usual summer. There is a set of phenomena we would see happening if human-emitted greenhouse gases were causing climate change. There is a set of phenomena that are happening. They are the same phenomena.
Skeptical Science has more graphics and an extended web page to elaborate. Scroll down for an extended online discussion on the subject.

Your New Landlords, Fanny and Freddie?

Thinking out of the foreclosed box, the Obama administration is has a novel idea for easing the impact of it's 250,000 repossessed residential properties on the housing market. They're considering renting them out. They've asked for reactions from housing experts, Realtors, and the public -- and they've gotten an ear full. Here's a selection from the hundreds of reader comments that followed some online news clips on the idea:

….This will invariably become another entitlement program that creates its own constituency taxpayers can ill afford. Do you honestly believe the federal government is going to kick people out of these houses as renters quit even paying rent? Sell the houses, take the (taxpayer) loss, and move on.... they will take a loss in the short term but in the long term these distressed properties would become valuable assets which could be sold for profit or kept as rental income.....this will only lead to the "slumification of America" as Democrats will look to place Section #8 housing into residential/suburban neighborhoods --under the label of affordable housing.…these bulk sales would have to be done at very low prices to make it work and even then the rent prices probably would not cover expenses.....A bottom wont be made in the housing market until the supply demand equation reaches an equilibrium point. There is still an enormous supply of homes that no amount of government solutions will eliminate...

If approved, the program would most likely be tested out in states that have had the most foreclosures along with the highest demand for rentals such as Florida, Nevada, and Arizona. The deadline for responses is September 15.

S & P Credit Drop Extended to Fannie and Freddie

Standard & Poor's on Monday downgraded the credit ratings of
Fannie Mae, Freddie Mac and several other U.S. government
entities, reflecting their dependence on federal support.

Ten of the 12 Federal Home Loan Banks, which also provide
funding for home loans, also received downgrades. Two of the
Federal Home Loan Banks--of Chicago and Seattle--already had the
lower AA-plus credit rating. The downgrades of Fannie and
Freddie reflect the mortgage firms' "direct reliance" on the U.S.
government, S&P said. Fannie and Freddie depend on the U.S.
government's support to stay afloat, and therefore would be on a
shaky footing if the U.S. ever defaulted on its debt.

Fannie and Freddie, which were placed under federal control in September 2008, receive infusions
of cash from the Treasury Department on a quarterly basis if
their net worth drops below zero. Stabilizing the two firms has
cost taxpayers $141 billion so far.

Don't Worry, Be Happy!

Time to get our priorities straight. Here's a newly written summary of 7 elements for a happy life, by Henri Junttila, that are great to keep in mind lest we become overly preoccupied by interest rates, property values and global warming. After you've read his brief, just keep in mind the the key words which are Here and Now, Relationships, Kindness, Growth, Goals, Embracing Death, and Following Your Heart. Scroll down for contributions and comments from readers of the dumblittleman.com website.

Stock Market Dives -- But So Do Interest Rates

We just checked our interest rate calculator on the far right and did a double take. At the moment I'm writing this it's at an all time low of 4.01%. Since Zillow's numbers tend to be on the low side, we've included some other major lenders above.

World's Most Expensive Cities

Luanda, Angola, now holds the dubious title of the most expensive city for expatriates to live in according to Mercer Consulting’s annual cost-of-living survey released last month.

Mercer surveyed 214 cities across five continents, measuring the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

New York is used as the base city for the index, and all cities are compared against this location. Currency movements are measured against the U.S. dollar.London ranked 18th, while Paris dropped 10 places to No. 27 from 17th last year. New York was the priciest U.S. city, with a rank of 32, falling from 27 last year.

The cost of housing — often the biggest expense for expats — figures prominently in determining where cities are ranked, Mercer said. Karachi, Pakistan, retained its place as the world’s least expensive city. The Mercer survey found that it was more than three times as costly for an expatriate to live in Luanda as in Karachi.

New Fuel Efficiency Standards Challenged by GOP

Last week, environment -alists received news that President Obama had reached a landmark agreement with 13 automakers to pursue a 54.5 MPG average fleet goal by the vehicle model year 2025. The agreement was a huge step forward for Obama’s environmental campaign, and shows that automakers and our government are on the same page when it comes to fuel efficiency.

"This is another important step toward saving money for drivers, breaking our dependence on imported oil and cleaning up the air we breathe,” said EPA Administrator Lisa Jackson. “American consumers are calling for cleaner cars that won’t pollute their air or break their budgets at the gas pump, and our innovative American automakers are responding with plans for some of the most fuel-efficient vehicles in our history.”

In 2010, Obama had already imposed a rule that will require vehicles from model years 2012 to 2016 to reach fuel-efficiency of 35.5 mpg. The rules will save drivers a whopping $8,000 per vehicle at the pump, but Republicans aren’t having it. Claiming that Obama violated administrative law by meeting with automakers behind closed doors, Inhabitat is reprting that the GOP, led by Rep. Darrell Issa (R-Cali.), is launching an investigation into the new fuel economy requirements.

New Fuel Efficiency Standards Challenged by GOP

Last week, environmentalists received news that President Obama had reached a landmark agreement with 13 automakers to pursue a 54.5 MPG average fleet goal by the vehicle model year 2025. The agreement was a huge step forward for Obama’s environmental campaign, and shows that automakers and our government are on the same page when it comes to fuel efficiency. The rules will save drivers a whopping $8,000 per vehicle at the pump, but guess what? Republicans aren’t having it. Claiming that Obama violated administrative law by meeting with automakers behind closed doors, the GOP, led by Rep. Darrell Issa (R-Cali.), is launching an investigation into the new fuel economy requirements.

http://inhabitat.com/gop-investigating-obamas-new-fuel-economy-rules/

Read more: GOP Investigating Obama's New Fuel Economy Rules | Inhabitat - Green Design Will Save the World

Time to Consider Putting Your Home Search On A Fast Track

With the current Debt Crisis facing the increased possibility of Default, downgrading of our government's credit, and the prospect of skyrocketing interest rates, now might be the time to put your home search on a fast track. HGTV"s FrontDoor.com has posted their 10 step scenario for speeding up the process to the max and closing your deal on the tightest of deadlines. Their 10 steps:

1. Start your search online

2. Get pre-approved

3. Look for motivated sellers

4. Prioritize your housing needs

5. Find a great buyer’s agent

6. Steer clear of short sales

7. Try a real estate auction

8. Negotiate repairs

9. Have cash read for closing

10. Have a Plan B

Depending on the property you pick, our team of Century 21 specialists have locked in a low interest rate in a matter of days.and closed deals as quickly as 3 weeks.

More Financing Options Needed to Stem Foreclosures

The housing market could face an onslaught of new foreclosures if policy makers and industry professionals fail to develop more financing options that keep real estate investors active in the market, Amherst Securities Group said in a report yesterday. The
problem is twofold, according to the analyst group. On one hand,
the market needs to stifle a growing supply of distressed
properties by implementing solutions — including principal
write downs — that will save homes from distressed inventory
pools. The second step is ensuring the market has multiple
financing options available to investors who want to buy up the
existing streams of distressed and existing real estate. "Rental
yields are high enough to entice some amount of private capital,
but financing for investor properties would certainly attract
more capital and cushion further home price declines," the agency
said in its Amherst Mortgage Insight report.

Amherst Securities believes 10.4 million homes are still at risk
of going into default after analyzing the number of loans that
are currently classified as non-performing, previously delinquent
and underwater. The tightening of underwriting guidelines also
is making it more difficult for investors and homebuyers to get
into the market to extract the access inventory.

Growing Evidence of Connecticut Cougar Migration

The cougar, also known as puma, mountain lion, mountain cat, catamount or panther, depending on the region, is a mammal native to the Americas. This large, solitary cat has the greatest range of any large wild terrestrial mammal in the Western Hemisphere, extending from Yukon in Canada to the southern Andes. An adaptable species, the cougar is found in every major American habitat type. Although large, the cougar is closer genetically to the domestic cat than to true lions.

Numerous reports of sightings of the animal in suburban Connecticut, had beed dismissed by conservation officers as unlikely, since the species had long since been thought to be extinct in the eastern U.S. On June 11, the rumors were confirmed with news of the lions demise -- hit by a car on a highway near Greenwich. Treehugger.com just reported that DNA tests matched those of his nearest relatives from South Dakpta suggesting that the mountain lion had somehow managed to prowl through at least six states covering 1800 miles of midwestern farms, highways, and wilderness without being spotted.

New Push for Conforming Loan Limit Extension

In 2008, Congress allowed Fannie Mae, Freddie Mac and the Federal Housing Administration to guarantee or buy mortgages worth as much as $729,750 in most neighborhoods. The limits will expire Oct. 1 and drop to $600,000 or more, varying by county. (The darker areas in the map show counties that will face the biggest drops.)

Housing Wire is reporting that Mortgage Bankers Association CEO David Stevens, the former director of the FHA, said he would like to see the limits extended through the end of 2012.

"While we had hoped improved economic conditions could warrant a return to the loan limits established by the Housing and Economic Recovery Act of 2008, the reality is that the temporarily higher loan levels are still needed. A number of bills have been introduced that would extend these limits and we urge Congress to address this important issue," Stevens said in the letter to Rep. John Boehner (R-Ohio) and Rep. Nancy Pelosi (D-Calif.).

Rep. John Campbell (R-Calif.) and Rep. Gary Ackerman (D-N.Y.) introduced just such a bill last week, which would extend the limits for another two years.

NJ's Undiscovered Lake Escape

Like Minnesota, New Jersey is a land of many lakes, most of them private or hard to access without long hikes, Louis Morris County Park couldn't be much easier to get to. It's a mere 4 miles west of Morristown. Perhaps one of the reasons it's parking lot is never full is that the wealthy towns nearby all have private pools or town pools. Maybe it's the history of geese-induced closings(rare in recent years). We arrived as per our usual late Sunday timetable to find 3 youngsters in the roped off section of Sunrise Lake being well supervised by two lifeguards. We were swimming far enough from them to avoid the slightest ripple in the refreshing waters. A couple of paddleboats were sliding across the lake and a few fishermen could be seen on the far shore. Peace!

Foreclosure Painting More Timely Than Ever

Some real estate agents tend to regard foreclosure properties as just an "asset" that can be unloaded quickly once it becomes vacant.
"Foreclosure" should remind us that there are still people involved. As with many of gallery painter Max Ginsburg realistic paintings, this one looks like it could have been done during The Depression. An exhibition of 60 paintings dating from 1956 to the present by the New York illustrator will be on view at the Salmagundi Club at 47 Fifth Av. at 10th St. in New York City from July 18 to August 5. A major book with 150 reproductions will be published in September. The opening reception Thursday July 21 between 5:00 and 8:00pm

Countrywide and Wells Fargo Return 193M to Homeowners

Some troubled homeowners got the promise of a little relief Wednesday in the form of separate settlements with Bank of America's Countrywide Home Loans and Wells Fargo & Co. Nearly $108 million in refund checks are being mailed to homeowners allegedly overcharged by Countrywide Home Loans as part of a settlement with the Federal Trade Commission.

In an unrelated action against Wells Fargo, the Federal Reserve Board issued a cease-and-desist order and assessed an $85-million civil penalty over allegations that Wells Fargo Financial Inc. employees improperly pushed borrowers into more expensive subprime loans and exaggerated income information on mortgage applications from January 2004 to June 2008.

Last year, the Federal Trade Commission reached the settlement with Countrywide, which is now owned by Bank of America Corp., and said Wednesday that the agency was beginning to mail the checks to 450,177 defaulting homeowners from whom the company allegedly collected excessive fees.

Lead Testing Advised for All Ringwood Residents

WCBS News is reporting that lead levels in homes just outside a New Jersey superfund site have been found to be dangerously high and that has some observers demanding quick action. Photo by Chris Pedota

The sludge dumped on the site continues to surprise the people trying to clean it up — and the residents trying to live their lives nearby. Environmentalist Robert Spiegel is so alarmed he said the entire population of this rural community should be screened for contamination.

Recent soil tests show that some homes in the area have lead levels of 22 thousand parts per million in their yards. That’s 50 times what the government considers safe. The EPA said it has removed 37,000 tons of soil and debris from the site since 2004 and has no estimate how much more is left.

The New Jersey Department of Health has offered lead screening for children living here, but not for adults, few of whom have health insurance or the means to get the tests themselves. A spokesperson for department in Trenton said it’s taking the advisory panel’s recommendation under advisement.

Closing Costs Compared

Bankrate.com's exclusive survey of lenders in each state and Washington, D.C., reveals which borrowers are likely to face the highest costs and includes a detailed breakdown of fees in each state. The estimates are based on a borrower with excellent credit buying a $250,000 homeResearchers requested a good faith estimate for a $200,000 loan, assuming a 20 percent down payment and good credit.

The table below ranks the states, from most expensive closing costs to least expensive, by average closing costs charged by the lending industry for a mortgage in each state.(Click on graphic to enlarge) Your costs will be higher than shown here because the most highly variable costs are not included: taxes, other government fees and escrow fees. While New York continues to lead the nation in costs, New Jersey is inching up from 9th place to a tie for 7th.

Bankrate surveyed one city in 49 states, two cities in California -- Los Angeles and San Francisco -- and the District of Columbia. An asterisk below denotes a tie.

SBA Loans Now Available for NNJ March Flood Victims

WASHINGTON – Residents and businesses affected by the severe storms and flooding on March 10-17, in Essex, Morris and Passaic counties in Northern New Jersey can apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Karen G. Mills announced today.

Mills made the loans available in response to a letter from New Jersey Gov. Christie on June 9, requesting a disaster declaration by the SBA. The declaration covers Essex, Morris and Passaic counties and the adjacent counties of Bergen, Hudson, Hunterdon, Somerset, Sussex, Union and Warren in New Jersey; and Orange and Rockland counties in New York.

“The SBA is strongly committed to providing the people of New Jersey with the most effective and customer-focused response possible to assist homeowners, renters, and businesses of all sizes with federal disaster loans,” said Administrator Mills. “Getting businesses and communities up and running after a disaster is our highest priority at SBA.”

“Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property,” said Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta. SBA’s customer service representatives will be on hand at the Disaster Loan Outreach Center to answer questions about the disaster loan program, explain the process, issue and help individuals complete their applications.

Those affected by the disaster may apply for disaster loans from SBA’s website at https://disasterloan.sba.gov/ela/.
The filing deadline to return applications for physical property damage is August 15, 2011. The deadline to return economic injury applications is March 14, 2012.

The Debt Ceiling Debate and Real Estate

Since the United States is in a deficit position, the only way we can continue supporting our expenses is by borrowing. This is where the Debt Ceiling comes in.

If Congress does not raise the ceiling on our debts, it means only one thing ...

We will find it difficult to borrow more money by selling more Treasury Bonds because no one will trust us to pay it back.

If we cannot sell more Treasury Bonds, we won’t have enough money to cover our debts.

If we don’t have enough money to cover all our debts, we will have to ‘default’ on some of our debts.

If we default on our debt, we’re no different than you or me, who hit hard times and start paying only the interest on our credit card debt.

Because we must default on paying back our debts in full, interest rates on any new debt we manage to acquire will skyrocket. In other words, U.S. Treasuries will become junk bonds.

And junk bonds — bonds whose repayment is questionable — require high interest rates for investors to take on the risk.

When this happens, all interest rates will skyrocket. On auto loans. Credit cards. And, of course, mortgage loans.

And there goes the real estate market.
This was posted by Judy Chapman, a Chicago /Realtor, on her ActiveRain Blog.

Growing Green Jobs

Steve Lacy writes in Grist that a look at the increase in job postings for clean energy and sustainability-related jobs anecdotally suggests that the "sustainability" sector is faring better than most, according to the Wall Street Journal:

In the past two years, the number of online job postings containing the keyword "sustainability" has more than quadrupled to 8,245 in May, according to Indeed.com, which aggregates online job postings. The number containing "wind" and "solar" more than doubled in the same time period.

Some of that growth might have come from the $800 billion economic stimulus package, about $100 billion of which was devoted to green-related projects, said Robert Pollin, a professor of economics at the University of Massachusetts Amherst.

Much money was devoted to helping companies retrofit buildings to be energy efficient, and according to Mr. Pollin's research, every $1 million devoted to that task created about 17 jobs for the life of the project, he said.

Because many of the jobs are cross-sector, we can't be exactly sure how many were created for what reasons. But it's clear that tens of thousands of Americans are being employed in the clean energy field who might otherwise not have jobs. This rough analysis from the Wall Street Journal illustrates the increase in activity.

Maximizing Your Credit Score

High credit scores mean lower mortgage rates and lower credit scores mean higher mortgage rates. That’s why having a good, solid credit score (720 or above) will result in lower rates, assuming all other things are equal. However, there are some credit score limits that will have a more profound impact on your rate. Below are the most important edges:

580 – This is the minimum credit score required for an FHA loan.
620 – This is the minimum credit score required by Fannie Mae. However, most Fannie Mae loans require at least 660.
660 – This is typically the minimum for most conventional loans. Anything below this is typically considered subprime and will be harder to get financing. Although you can get loans at this credit score, you will normally pay a much higher rate.
720 – This is the historical cutoff to get the best rates. At this level you will not get any negative rate adjustments. However, in the current market, you can now get even better rates for higher scores.
760 – This is where you will now get the best rates. There may be some lenders who give additional breaks at extreme scores (800+) but for the most part, anything above 760 will give you the best rates.
Although changing your credit score isn’t as easy as deciding to increase your down payment, there are some things you can do to make sure your score is as high as possible. You can check your free annual credit report and ensure there are no inaccuracies, pay your bills on time, refrain from maxing out your available lines of credit, and use credit repair sites to remove old blemishes.

This Can Be Yours for Peanuts!

Former Home of Charles Schulz creator of Peanuts. Extraordinary, Hilltop Wine Country Estate. Magnificent panoramic views and landscaping, meticulously maintained, exquisitely renovated, located in the heart of Sonoma County.

Private, gated and secluded family compound. 2 homes on 2+ acres. Expansive outdoor living areas, pool and Cabana. Can be purchased turnkey with all contents except artwork. 6 BR, 8.5 baths. Home Size: 7,894 sq.ft.Truly a unique property. Must see!

Weighing Home Affordability

Coldwell Banker Real Estate recently released its Home Listing Report (HLR), a snapshot survey of average listing prices for four-bedroom, two full bathroom homes in more than 2,300 North American markets. Newport Beach, Calif., led the list of most expensive U.S. real estate markets for the second year in a row, with an average home listing price of approximately $2.5 million for property listings meeting the subject home criteria. The most affordable U.S. market in the report is Niagara Falls, N.Y., which has an average home listing price of approximately $61,000. The dramatic difference of more than $2.4 million between most expensive and most affordable U.S. housing markets is just one of the many findings in this comprehensive market comparison.

The Coldwell Banker Home Listing Report compiles extensive information on real estate data from around the U.S. and Canada for home buyers and sellers. The HLR provides the average home listing price of four-bedroom, two full bathroom properties on coldwellbanker.com that were listed between September 2010 and March 2011 from more than 2,300 North American markets. The U.S. average for the surveyed listings was approximately $293,000.

Put in perspective, a $200,000 property with a 30-year-fixed mortgage at a 5% interest rate (with a 20% down payment) could translate to a relatively low monthly mortgage payment of less than $860. Using the same parameters, the average $60,820 four-bedroom, two full bathroom home in Niagara Falls could translate to a month mortgage payment of approximately $260.

In New Jersey, HLR results show Newark at the top of the affordability list of 156 New Jersey real estate markets, averaging $170,427 for comparable 4 Bedroom homes. In Essex County, the next highest market for a home after Newark fell to Belleville at number 19, with the average priced four-bedroom, two-bathroom property coming in at $269,500. Essex County markets include number 44 Bloomfield, averaging $351,537, and Montclair at number 85, averaging $448,441.

Newest Program to Get Homeowners Out of Their Hole

A new federal program is offering aid without strings. It doesn't need to be repaid.

For the roughly four million homeowners who have fallen behind on their mortgage payments, the federal government is offering yet another remedy: free money to catch up on their loans. The effort, called the Emergency Homeowners Loan Program, is the latest in the federal government's efforts to slow down the flood of foreclosures a necessary step to a meaningful recovery in the housing market, says a Department of Housing and Urban Development official. For people who have lost their jobs, the $1 billion program offers loans of up to $50,000 that don't actually need to be repaid, if applicants meet certain requirements.

Rolled out by HUD and the nonprofit housing advocacy group NeighborWorks America, the program is making loans with far better terms than anything offered at a local bank. The loans are interest-free.

More from Yahoo Finance.

Prologue to a Revolution

(an encore blog) This is a day for reflecting on our country's roots in the human need for "life, liberty, and the pursuit of happiness." For my extended family, I can't help reflecting on my ancestors' little known contribution to the revolutionary fervor that culminated in the events of 1776:

From The Hampton New Hampshire Library archives:

"It is a singular and interesting fact that the first armed resistance to British oppression in the North took place in Hampton almost 100 years before the outbreak of the Revolution. In 1682, Charles II of England sent to New Hampshire as royal governor, Edward Cranfield, a most arbitrary and injudicious man. The ruling body at this time was the Assembly, made up of representatives of the four towns of Exeter, Hampton, Portsmouth and Dover, which ably managed the affairs of the little commonwealth. This Assembly refused to comply with Cranfield's commands and he dissolved it. One of the members was Edward Gove, of Hampton, a high-spirited and impulsive man, who resolved not to lightly submit to what he considered an infringement of the people's ancient prerogatives. Mounting his horse he rode through Exeter and Hampton with the cry: "Freemen, come out and stand for your liberties!" He gathered around him a little band of supporters. But before the movement could become formidable, Gove was surrounded by the militia in Hampton village and surrendered. He was tried, convicted of high treason, sentenced to be hanged, drawn and quartered. But this ferocious sentence was never carried out.

After several years commitment to the Tower of London, he was pardoned by the King and permitted to return to Hampton. Gove has been harshly treated by the historians. They have represented him as a rash and impulsive man who headed a hopeless rebellion against constituted authority. But there is another side. I like to think of Gove as a pioneer patriot, as a man in advance of his times, as the morning star of the American Revolution. Had Gove lived a century later, he would have been acclaimed as a great patriot, and his name would have been enrolled with those of Sam Adams, Josiah Quincy, Joseph Warren and John Sullivan."

Sign of the Times

RE/MAX Village Square has always been distinguished by it's prominent, highly visible, upper Montclair location next door to the A&P on Valley Road. After losing several of their top agents and getting a rent increase from their landlord, the decision was made to downsize. LIterally. They can now be found around the corner in the basement.

Higher Rents Reflect Slide in Homeownership

Prices on rental properties grew 6.7% in June as more Americans
chose low-risk rentals over homeownership, a new report from
housing search engine HotPads.com said Thursday.  The agency,
which compared June prices to last year, attributes the
rental-price surge to pent-up demand among first-time renters and
larger families who can no longer afford homeownership or who
lack faith in the stability of home prices.  San Francisco-based
HotPads.com reached this conclusion by studying the median
listing price of 500,000 rentals located in major metropolitan
areas.  Price hikes in the studio and five-bedroom rental segment
grew the most, rising 14.3% and 12.1%, respectively. HotPads'
study is in line with analyst projections that show pent-up
demand for rental housing in the wake of the credit crunch.
Americans who rented out properties gained $3.3 billion in total
income from that endeavor during the month of May, up from $2.9
billion in April, according to the US Bureau of Economic
Analysis.  After surveying more than 1,100 property managers in
June, credit reporting agency TransUnion concluded that apartment
demand is up, especially among Americans who lost homes to
foreclosure.

The Slow Money Approach to Food Activism

Thousands of Americans have begun affirming a new direction for the food system and the economy. It’s called Slow Money.
It is a new way of connecting investors to local food systems, catalyzing new forms of social investing and philanthropy for the 21st century.

Inspired by the vision of "Inquiries into the Nature of Slow Money: Investing As If Food, Farms and Fertility Mattered", published in 2009, the Slow Money Alliance is bringing people together around a new conversation about money that is too fast, about finance that is disconnected from people and place, about how we can begin fixing our economy from the ground up, starting with food.
Food activists, concerned citizens and a new generation of food entrepreneurs are working across the country to improve school lunches, bring healthy food to the inner city, get toxics out of the food chain, fight obesity and diabetes, and rebuild local economies.

Since mid-2010, local Slow Money chapters have emerged in roughly a dozen locales around the country. Some are hosting local entrepreneur showcases like one that took place last month in NYC.
Nationally, the Alliance;s goal is to get a million people investing 1% of their money in local food enterprises, within a decade.

Upbeat Housing Updates for April

According to the newly released S&P/Case Shiller 20-city index, prices rose 0.7%
in April compared with March, although they fell 0.1% when
adjusted for the strong spring selling season. Prices were down
4% year-over-year. "In a welcome shift from recent months, this
month is better than last -- April's numbers beat March," said
David Blitzer, S&P's spokesman, in a statement. "However, the
seasonally adjusted numbers show that much of the improvement
reflects the beginning of the spring-summer home buying season.
It is much too early to tell if this is a turning point or simply
due to some warmer weather," Blitzer added. Any hint of good
news in the troubled housing market will likely bring cheer to
the industry, and there are some signs that market conditions are
not quite as dire as some of the statistics may indicate.

Much of the price drop over the past year can be blamed on severe
price slashing for homes in foreclosure, as Federal Reserve
chairman Ben Bernanke pointed out in a press conference last
Wednesday. Prices for homes sold by regular sellers have held up much better.

Commenting on the latest numbers, Rick Sharga, RealtyTrac SVP, said, “Tuesday's Case-Shiller report is the first positive pricing news we’ve seen in quite some time, but not a signal that the housing market is on the road to recovery.”


Commenting on the latest numbers, Rick Sharga, RealtyTrac SVP, said, “Tuesday’s Case-Shiller report is the first positive pricing news we’ve seen in quite some time, but not a signal that the housing market is on the road to recovery.”

much better.

The NYC Regional Housing Market

The New York area referred to in this report covers the geographic area of the New York-Wayne-White Plains metro area
as officially defined by the Office of Management and Budget of the U.S. Government (click on graphic to enlarge). The official coverage area includes the following counties:
Bergen County, Hudson County, Passaic County, Bronx County, Kings County, New York County, Putnam County,
Queens County, Richmond County, Rockland County, and Westchester County

More information on the White House OMB's geographic definitions for their housing stats can be found here.

Chinese Copy an Austrian Village

Photo: Sander Hoogendoorn under a Creative Commons license

The picturesque Austrian village of Hailstatt, is home to the world's oldest known salt mine, a UNESCO World Heritage site, and hosts up to 800,000 visitors annually. But soon tourists coming from China won't have to go so far to see Hallstatt in all its mountain and lakeside beauty. That's because China is busy building an exact replica of the famous village,

Der Spiegel is reporting that Hallstatt, China, will include every building, statue, and architectural detail of its original Austrian "inspiration." Not to mention the lake and mountains. And while Hallstatt's 800 residents see the Chinese clone as a potential boon for tourism, others are not so happy. It raises unprecedented legal issues regarding copyrights which have rarely been an issue in China.

A Window for Both Buyers and Sellers

We no longer have to remind buyers why this is an ideal time to take advantage of all-time record low interest rates.
It's also becoming clear to homeowners that their home's value to a potential buyer is not likely to increase anytime soon.
One of our most reliable sources for Real Estate information and forecasts, The KCM Blog, is predicting that sellers have a window of opportunity for the next 90-120 days in which to sell their homes for the best possible price.

Any item’s price is determined by ‘supply and demand’. In many parts of the country existing housing inventory is already high and actually increasing. In addition, an inventory of distressed properties (foreclosures and short sales) will be coming to market later this year....Waiting until later this year or until next year will not guarantee a higher sales price. If anything, it probably guarantees the exact opposite.