Christie Vetoes Foreclosure Relief Bill

Law 360 reports that Gov. Chris Christie, on Friday, vetoed legislation empowering the state to buy foreclosed properties from lenders and turn them into affordable housing along with other measures from the Democrat-controlled Legislature.

 The veto drew criticism from supporters of the bill, who contend it would have helped New Jersey address its affordable housing needs and revitalize communities impacted by a wave of foreclosures in the state.
 Said one supporter: “The governor took the side of sprawl and overdevelopment over good planning and environmental protection."

 Another commented:"This was a serious bill that attempted to solve the most serious problem still facing this state and this country. We need to stabalized our housing prices. This would have done more than any tax cut would ever do to stimulate our economy."

One Family's Independence Insurrection

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 ancestor's little known contribution to the revolutionary fervor that culminated in the events of 1776.  Doug Gove has submitted the following account of the man he calls "my grandfather":

ther":

     Traveling back in time out 308 years. The King has given Robert Tufton Mason the authority to take care of the affairs of the new province. He is a failure and appoints Unprincipled Governor Cranfield to become his tool. The governor disbands the January 1683 assembly. The people considered this an unreasonable act and an unwarrantable abuse of power. Most however, though indignant at Cranfield's conduct, considered themselves good citizens and remained passive. Not so for Gove and a few others under his leadership who, in the exuberance of patriotism, "determined to revolutionize the government or at least to effect a reform." Friday, January 26, 1688, Reuben Hull, a Portsmouth merchant, was in Dover to pick up. a load of barrel hoops when he met Gove who had his sword and boots on, and said to him, "How now Gove, where are you bound? What's the matter with you?"
"Matter?" said Gove, "matter enough. We at Hampton have had a town meeting and we resolved as one man that. things shall not be carried on as it is like to be, and we have all our guns ready to stand upon our guard. I have been at Exeter and they are resolved to do the same. I have my sword at my side, and brought my carbine also with me which I have left some where."
Gove undoubtedly expected that when his arrest was attempted, there would be resistance and then a general uprising. It didn't happen. He returned to Hampton Saturday,Jan.27,1683. He and 11 other rebels, all on horseback, moved in two lines into the tiny colonial village on the New Hampshire Seacoast, shouting, "Freemen, come out and stand for your liberties."
Led by Gove, they were nearly all from Hampton, with their leader waving his sword and the trumpeter sounding their arrival with a military medley. Gove, seeing no demonstration in his favor at his appearance, lay down his arms and gave himself up to the authorities of the town, as did the others.
They were taken into custody by the militia, except the trumpeter, who escaped. They were brought before the governor and his council, where Gove behaved himself very insolently. Each of the prisoners then defended himself and his activities. Edward Gove acknowledged that the testimony against him was true. He "railed" at Governor Cranfield, saying he was a traitor and acted under a pretended commission and demeaned himself with "insolence and impudence." Judge Richard Waldren pounded his mallet, then solemnly pronounced the sentence. (The followers of Gove were to be held for a later judgment, and most of them were pardoned).
"You, Edward Gove, be drawn on a hedge to the place of execution, and there you shall be hanged by ye neck, and when yet living, be cut down and cast on the ground, and your bowels shall be taken out of your belly, and your privy member cut off and burnt while you are yet alive, your head shall be cut off and your body divided in four parts, and your head and quarters shall be placed where our Sovereign Lord the King pleaseth to appoint. And the Lord have mercy on your soul."
After the trial in Portsmouth in Feb. 1683, Cranfield, fearing to execute the sentence on Gove, sent him to England for the King to deal with. Gove was on board the ship Richard of Boston when it left port March 29. The Tower of London is in the east end of the city, a group of stone buildings including an ancient fortress, a dark prison, and a royal residence surrounded by a shallow moat and a high stone wall. This was the destination of Edward Gove, where he was sadly to spend the next three years. Many letters were written by the prisoner and people on his behalf during this time. Finally, Gove, in his cell, took up his quill pen and sent a petition to the King which brought results. In it he stated, "want of rest for 18 days before my apprehension deprived your Petitioner of the use of his reason and the control of his tongue and was the cause of your Petitioner's indiscreet actions towards the said Mr. Cranfield." He was released on his own recognizance to plead his pardon April 9, 1686. After Gove's incarceration in the the spring of 1683, the rule under Cranfield continued in its arbitrary and cruel manner.
From the Gove Book, written by William Henry Gove and published at Salem, Mass., in 1922, most of the preceding information has been researched. The author wrote, "the people were horrified at the bloody sentence of Gove and cried aloud for vengeance. It was already whispered about that public meetings would be held to express the indignation at the baseness of the manner in which the conviction was obtained and the cruel barbarity of the sentence, which was intended to awe the people into submission. It had a directly contrary effect." Like returning from the dead, Gove came back to his home and renewed his life in Hampton. He had the respect of the people of the province. From the earliest days of the Province of New Hampshire, Gove was involved in its government. He was elected as a member of the assembly from Hampton. He must have known the widespread disaffection and determination of the people not to yield to the demands of the Cranfield regime, and his views were well known to them because of his outspoken sentiments. He was thought to be the right man for the assembly. Gove died in Hampton on July 29, 1691, at the age of 61. He always contended that a slow poison was administered to him while in prison.

Global Burning Predictions Become Reality

Nearly two years ago, President Obama's science adviser, Dr. John Holdren, gave a presentation on the causes and effects of global warming. One of his slides indicated the areas in the west that were most susceptible to fires for each additional degree of average annual temperature. Since 16 of the past 17 years have broken all historic records, this summer's fire outbreaks should come as no surprise.

Building Permit Extension Expected to Become Law Despite Eco-Opposition

Despite strong opposition from NJ Environmental groups, a bill extending expiring building permits to 2014 to help developers in a sluggish economy has passed both houses of the state legislature. The NJ Sierra Club's Jeff Tittel has strongly criticized the measure: “This bill targets environmentally sensitive areas throughout New Jersey especially the Highlands, Pinelands, and Barnegat Bay. This legislation takes the side of developers interests over public interest. It takes the side of sprawl and over development over protecting water supply and natural resources.

Pending Home Sales Bounce Back

Showing more evidence of a receding "buyers market," pending home sales bounced back in May, matching the highest level in the past two years, and are well above year-ago levels, according to the National Association of Realtors. Both monthly and annual gains were seen in every region. The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 5.9 percent to 101.1 in May from 95.5 in April and is 13.3 percent above May 2011 when it was 89.2. The data reflect contracts but not closings. The index also reached 101.1 in March, which is the highest level since April 2010 when buyers were rushing to beat the deadline for the home buyer tax credit.

Lawrence Yun, NAR chief economist, said longer term comparisons are more relevant. “The housing market is clearly superior this year compared with the past four years. The latest increase in home contract signings marks 13 consecutive months of year-over-year gains,” he said. “Actual closings for existing-home sales have been notably higher since the beginning of the year and we’re on track to see a 9 to 10 percent improvement in total sales for 2012.” The national median existing-home price is expected to rise 3.0 percent this year and another 5.7 percent in 2013. “If housing starts do not rise in a meaningful way over the next two years due to the difficulty in getting construction loans, and barring an unexpected shift in the economy, the steady shedding of inventory could lead to shortages where home prices could get bid up close to 10 percent in 2013,” Yun said.

Slicing the NNJ Job Pie

New Jersey's economy is growing, but decelerated from last month's 1.22% change and lags the rest of the nation.
(Click on graphic to enlarge)

Housing Trends eNewsletter is filled with U.S. Census Bureau key market indicators, consumer videos, blogs, a real estate glossary, mortgage rates and calculators, consumer articles, real estate radio, REALTOR.com local community reports and local and national real estate sales and price activity provided by local MLSs and the National Association of REALTORS®. At right is a small sample tof the charts and stats included in my monthly Housing Trends eNewsletter. You can find this month's NNJ area newsletter here. To join my mailing list for future newsletters, drop me email at geoffgove@gmail.com

MegaDeveloper Pays EPA Mega Fines for Pollution in 23 States

The Times of Trenton reports that Toll Brothers Inc., one of the nation's largest homebuilders, will pay a $741,000 civil penalty for violating the Clean Water Act at 600 developments in 23 states, including dozens in New Jersey.

The consent agreement — negotiated by the U.S. Environmental Protection Agency, U.S. Justice Department and authorities in Maryland and Virginia — includes hundreds of water pollution violations. Toll Brothers also will invest in a company-wide stormwater compliance program to improve employee training and increase management oversight at all current and future residential construction sites across the nation. The company is required to inspect its current and future construction sites routinely to minimize stormwater runoff.

The company allegedly failed to comply with permits issued under the Clean Water Act that resulted in the discharge of pollutants from construction through stormwater runoff, settlement documents said. New Jersey had 43 sites that violated the federal law, the second largest number out of the 23 states.

The company allegedly failed to comply with permits issued under the Clean Water Act that resulted in the discharge of pollutants from construction through stormwater runoff, settlement documents said. Toll Brothers will pay a civil penalty of $741,000 to resolve the alleged violation of the Clean Water Act. About $702,000 will go to the federal government, with smaller amounts going to Maryland and Virginia. Toll Bros. Inc. have, so far, declined any comment on the settlement.

New Jersey will not receive any of the settlement money since it did not report any of the violations to the EPA or participate in the settlement. (Readers of this blog may recall our post on NJDEP's new LSRP policy and how it is letting the DEP skirt it;s responsibility for oversight of pollution violations. Is the DEP intentionally ignoring it's own regulations? Many environmental groups are coming to this conclusion.  NJ Spotlight has published an  interactive map of the NJ sites for which the Toll Bros. have made setttlemrent agreements.
(Photo by Geoff Gove)
http://www.nj.com/mercer/index.ssf/2012/06/toll_brothers_violate_clean_wa.html

Steal of an Island Deal in NYC

Who would have thought that you can still find waterfront property in New York City for less than a standard 50 x 100 foot lot in suburban NNJ?

Alex Schibli was thrilled to learn, last fall, that he made the winning bid of $176,000 for a 2.6 acre "fixer upper" island off the South Bronx. The 72 year old retired Port Authority worker who lives on nearby City Island is planning to build his dream home on the stone foundation of the previous house.

That structure was flattened by a hurricane in 1938. Schibli and his 61 year old girl friend are planning to build an eco-friendly solar powered home out of reclaimed wood, which would be off the grid.

 The last house on Rat Island, once used as an artists’ hangout, was destroyed by a hurricane in 1938, but the stone foundations remain.

Echo Boomer Generation Replacing Baby Boomers

The legendary Baby Boomers have finally reached retirement age and have led the trend towards downsizing and/or looking for retirement communities to spend their "Golden Years."  Replacing them are their "Echo Boomer" children. 

An estimated 84.7 million young adults in the Echo Boomer generation, the oldest of whom turned 25 in 2010, are expected to enter the housing market within the next 20 years. A recent Harvard study states that, as housing markets improve, more fence-sitting young adults will convert from renters into first-time home buyers. If the Harvard study is right, by next year, home values -- and mortgage rates -- will be higher. 

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  5 Easy DIY Weekend Projects Under $300

  Just another weekend? Not if you take advantage with one or more of these 5 great projects you can easily pull off for under $300. Read

Visit houselogic.com for more articles like this.

Copyright 2012 NATIONAL ASSOCIATION OF REALTORS®

"Art-ification" of an Abandoned Detroit Neighborhood

The Heidelberg Project is an art environment that spans two Detroit city blocks. Tyree Guyton began the project almost twenty years ago in 1986, in response to the deterioration of his neighborhood, which was being consumed by drugs, poverty, and violence. He began by cleaning up vacant lots, working alongside his grandfather and local children.
He reused the detritus they collected from the lots to build what has become both a piece of art and vision of his community. Attaching found items on the walls of deserted homes, he transformed the structures into art sculptures. Empty lots became public art gardens. Soon the neighborhood had polka-dotted streets. Shopping carts peeked out of trees and stuffed animals hang from houses. Guyton, who began with a devastated city space, has slowly converted Heidelberg Street into a colorful, imaginative artscape that inspires play, dialogue, and new ideas about how to rebuild a community. More from www.architizer.com with photos (c)K.Scott Kreider:

NJDEP Makes LSRP Key to SRRA

Anyone remember LSMFT?  LSRP may share an association with a pollution issue, but not much else.

Although New Jersey may be approaching the tipping point in acronym overload, LSRPs are here to stay and a major factor in monitoring the cleanup of toxins from contaminated sites. As of May 7, 2012, the newly implemented Site Remediation Reform Act (SRRA) is requiring all remediations in the state of New Jersey to proceed under the supervision of a Licensed Site Remediation Professional (LSRP).

Only LSRPs will be authorized to sign and certify reports through the site investigation and cleanup process.

In many situations, DEP will no longer be required or authorized to review and approve investigation and cleanup plans in advance, or to issue No Further Action letters and Covenants Not To Sue at the conclusion of cleanups. Instead, the LSRPs will determine the propriety and conclusion of investigations and cleanups, and will issue the final sign-off document, to be known as a Response Action Outcome (RAO). The goal is to increase the pace of remediation and help decrease the threat of contamination to public health and safety and of the environment, and to quickly return underutilized properties to productive use.

The new regulations have spawned a cottage industry of freelance LSRP consultants shopping themselves out to developers as well as towns affected by planned developments on contaminated sites.

Upward Movement in New Home Sales

Sales of newly built, single-family homes rose 3.3% in April to a seasonally adjusted annual rate of 343,000 units, according to newly released data from HUD and the US Census Bureau. “The increase in April sales activity is in line with other important housing measures that have shown continued, gradual improvement from the first quarter as more consumers look to take advantage of today’s low interest rates and affordable home prices,” noted National Association of Home Builders (NAHB) Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “In markets where demand is rising, we could be seeing a faster pace of recovery if not for persistently tight lending conditions that are slowing both the building and buying of new homes.”

“Today’s report is representative of the kind of modest but consistent gains that we expect to see in new-home sales through the remainder of 2012,” said NAHB Chief Economist David Crowe. “As indicated by our most recent builder surveys, more consumers are taking advantage of historically low mortgage rates amidst firming economic and job market conditions in certain areas.”

On a regional basis, new-home sales rose 7.7% in the Northeast, 28.2% in the Midwest and 27.5% in the West in April. The South was the only region to post a decline for the month, of 10.6%.

Christie's DEP Waiver Fails in Assembly Committee

A measure sponsored by Assembly Democrats aimed at halting the state Department of Environmental Protection from circumventing existing environmental regulations was approved by an Assembly panel on Monday by a 5 - 2 vote. "The DEP does not have the statutory authority to promulgate one set of rules and regulations in order to waive other rules and regulations previously adopted as a result of legislation," said Barnes (D-Middlesex). "Not only does this go against the very purpose of creating legislation, but it also has the potential to harm the environment and the residents of this state."

A coalition of 28 environmental and labor groups sued the Department of Environmental Protection on the grounds that the agency does not have the authority to simply waive requirements of at least 85 statutes put in place by the legislature as part of 40 years of environmental protection legislation. The asked the Democratic legislature to exercise the authority given to them by an obscure constitutional amendment that allows them to strike down an agency rule if the legislature determines that the rule is not in keeping with the legislative intent behind the law.

 "This is an attempt by the department to completely circumvent a great deal of the environmental protections we have put in place to protect the people of this state," said McKeon (D-Essex/Morris). "This is a classic example of this administration acting without regard for the laws of this state, a pattern we've seen repeatedly over the last two years."

Why Short Sales are Becoming the Best Option for Underwater Homeowners

Can you short sale your home even if you are not late on your mortgage and may be able to make the payments. In the industry that is called a ‘strategic short sale.‘
A short sale happens just like any other home sale. A Realtor lists the home, an offer is received, you (the seller) decide if you want to accept, reject, or counter the offer. Once terms are finalized the home is pending/ in contract just like a normal sale. You and the buyer sign the contract.
You don't need prior approval from your lender to do a Short Sale.
You DO NOT need to be late on you mortgage to do a short sale. In fact, there is an advantage now in remaining current on your payments.

Mortgage Rates Bottoming Out -- Or Going Even Lower?

Long-term mortgage rates fell still lower last week, with the average rate on a 30-year fixed-rate mortgage falling to a new all-time low of 3.83 percent. More details fron The National Mortgage News....

Dramatic Montville Price Drop Illustrates the Reality of Luxury Home Pricing in NJ

Melissa and Joe Gorga first put their home on the market in 2010 for $4.5 million shortly before becoming part of Real Housewives of New Jersey. They took it off the market when the hit reality show began -- perhaps thinking that the growing popularity of the show would add to the home's value.

This week they relisted their 13,500 ft. mansion for $3.8 Million -- a hefty %700,000 price drop. Tax rcords indicate that Joe Gorga, a developer who builds custom homes to order, bought the property in 2008 before building their French Chateau style mansion.

Perhaps the Gorgas  lowered their asking price to compete with this comparably sized mansion now under constructioin in their neighborhood listed at $3.89 Million.

FHA vs Conventional Mortgages -- Which is Better for You?

Whether an FHA mortgage is better than a conventional one depends on a number of factors including current interest rates, current mortgage insurance rates, and your expected downpayment/equity percentage.

The 30-year fixed rate mortgage comes in multiple flavors. 

There is the 30-year fixed rate mortgage from the VA; the 30-year fixed rate mortgage from the USDA; and jumbo lenders offer 30-year fixed rate mortgages, too. Each is slightly different in terms of qualification standards and payment schedules 

The two most popular 30-year fixed rate mortgages are the conventional 30-year fixed rate mortgage as offered by Fannie Mae and Freddie Mac and the FHA 30-year fixed rate mortgage 

 Mortgage expert Dan Green goes into detail on this subject in his Mortgage Reports blog...

Looking for an Asian Paradise? Phuket!

Phuket Island, in Thailand, is now increasingly recognized as one of the prime locations to buy real estate in South East Asia. The surrounding islands of the Andaman Sea offer a sailing and boating environment second to none in the world. The nearby Similan Islands is recognized as one of the top scuba diving destinations in the world. Fishing, windsurfing, biking and five first-class golf courses make Phuket a sportsman’s paradise. Rapidly improving infrastructure is giving Phuket all the facilities of any modern community, with big shopping complexes, international colleges, such as British Curriculum International School and QSI International School of Phuket, well-equipped hospitals, and marinas.

All of the above information is factual. But the basis for the viral photo at right titled: "Botanical Apartment Therapy in Phuket, Thailand," is still a mystery. In the 3 months since it was originally posted there has been no credit or supporting info given.  This has led to speculation that it may be a Photoshop creation -- perhaps as part of a marketing campaign.

Hopefully, it is at least a work in progress for a dream development in the making -- somewhere.

Highest Q1 Pendings in 5 Years Spurs Recovery Predictions

Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering, according to the National Association of Realtors(R).

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9. The data reflects contracts but not closings.

The index is now at the highest level since April 2010 when it reached 111.3.

Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing. “First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” he said.

“The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.

NJ Foreclosure Streams Starting to Flow Again

According to the Mortgage Bankers Association, a record 16.7 percent of home mortgages in the state of New Jersey are late on their monthly payments, or in foreclosure. That is above the 12.5 nationwide percentage.

In addition, after the foreclosure slow down last year in the wake of reports of mortgage service abuse and investigations, the process is coming back online for both residential and commercial properties. In fact, foreclosure activity numbers in New Jersey last month rose nearly 72 percent compared to March of 2011. Foreclosure filings and sheriff auctions are up drastically compared to this time last year, but significantly below the numbers we saw in 2010. New Jersey was part of a $25 billion settlement between five large mortgage lenders and state and federal officials that were accused of "robo-signing" foreclosure paperwork and cutting corners to get people evicted quicker.

Mortgages Now Available through Costco

Costco shoppers are used to shopping big. They can now can now shop for the biggest item they'll probably ever buy - a mortgage.

Costco has signed up 11 lenders to provide a mortgage lending service to its shoppers. Whether it's a new loan, or a refi. The warehouse club is rolling out a full service mortgage lending program on its web site. Members can log in, fill in their information anonymously and then get a price comparison from several lenders, although most borrowers still need some level of personal contact from both a real estate professional and their lender. The company already offers financial products like auto insurance and health insurance and stock brokerage services, and will soon offer auto and student loans.

Missouri EcoVillage Goes On and Off the Grid

Alex Whitcroft, an architectural designer from the UK, first came to Dancing Rabbit EcoVillage in rural Missouri to learn natural building techniques. He returned two years later in 2011 as one of its 60 or so residents. Like most buildings at Dancing Rabbit, the home Whitcroft shares with his partner, Jennifer Martin, and two of her children is made with natural materials: sustainably harvested or reclaimed wood, natural plasters, and straw bales harvested from surrounding fields for insulation.

While half of their community reconnected to the grid in 2011, Dancing Rabbit is net positive — producing more energy than it consumes.

NNJ Foreclosures on the Rise

Bergen and Passaic counties have both seen an increase in properties sold at sheriff's auction in the first three months of this year.  And RealtyTrac, a California company that follows the foreclosure market, recently reported that foreclosure activity in New Jersey rose almost 72 percent from March 2011 to March 2012.

Because of last year's slowdown in foreclosure activity, troubled mortgages are piling up in New Jersey. The Mortgage Bankers Association recently reported that a record 16.7 percent of mortgages in the state are either late on monthly payments or in foreclosure, compared with 12.5 percent nationwide.

The uneven pace of foreclosure activity suggests that New Jersey will not quickly clear the market of distressed properties, which tend to sell at a discount.  More from NorthJersey.com

Pyramid Scheme

Rising above the Arizona desert like a phoenix, this property causes double takes from all who drive by.  Situated on 13 acres, it has over over 3,000 square feet of living space and two master bedrooms.  However, unlike the Egyptian pyramids, this architectural wonder is for sale.

At an asking price of $495,000 an estimated mortgage payment on the Maricopa Arizona pyramid would be $1,865 a month, with 20 percent down on a conventional 30-year mortgage.

Freddie Mac Forecasts Spring Housing Recovery

“A variety of encouraging indicators suggest that the housing market may be feeling a nascent recovery ... and more neighborhoods may see a stabilization in overall demand and housing values this spring,” says Frank Nothaft, Freddie Mac’s chief economist.

In fact, the signs have prompted Freddie Mac to revise its forecast upwards for home sales and originations. One economic contributor that’s helping to stabilize housing: The drop in the unemployment rate to 8.3 percent, its lowest level in three years, according to the report.

HARP Springs Eternal -- New ReFi Options for NJ Homeowners

HARP is a federal government program designed to help millions of underwater or upside down homeowners refinance into a fixed loan with a lower monthly payment. It was rolled out in March 2009. However, on Oct. 24, 2011, President Obama announced an overhaul to the HARP Refinance Mortgage Program with the intent of reaching more underwater homeowners. The expanded HARP Refinance program – also called HARP 2.0 – is rolling out this month for borrowers with a loan-to-value ratio of greater than 125 percent.

What’s new with the New Jersey HARP 2.0 Refinance program? 

• No underwater limits! Borrowers will now be able to refinance regardless of how upside down or underwater they are in their mortgages.
•  There may be no appraisal requirements! Some homeowners may get appraisal waivers making their New Jersey HARP Refinance process smoother and faster. 
• Certain risk-based fees eliminated! For borrowers who do the HARP Refinance and switch into shorter-term loans these fees will either be eliminated or modified. Extended deadline! 
• The end date to get a HARP Refinance has been extended to Dec. 31, 2013.

How To Burn Down Your House (and why)

Richard Taylor is a residential architect whose writings often go beyond his passion for great home design:

  It was late in the day when it finally happened. A puff of smoke appeared just over the rooftop at the far right side of the house; then another appeared, near the chimney. Within moments smoke was pouring from the entire roof and flickers of orange flame began appearing in the windows.

A cheer went up from the assembled crowd as the flames grew; soon the roof weakened and began to collapse. 
A dozen firefighters stood by, cheering along with the crowd. 
 Huh? 
 Usually, a home burning to the ground is a tragedy, a disaster, a crime – or all three. This, however, was a welcomed event that would benefit the homeowners, the fire department, and dozens of families we’d never meet....

Read to rest of the article here. Taylor is based in Dublin, Ohio and is a contributor to Zillow Blogs. Connect with him at http://www.rtastudio.com/index.htm.

Live From the Eagle's Nest

People from around the world have been watching the progress of bald eagle eggs hatching in Iowa. The eagle's nest is located in Decorah, Iowa, but a webcam provided by UStream has allowed people to watch as the much anticipated babies make their arrival.

In 2011,thousands tuned in to the Eagle Cam to see the Decorah, Iowa eaglets hatch. The eagles returned at the end of December to nest again. Since then, the Decorah Eagle Cam has had more than 11 million views.
So far two of the three eggs have hatched.

The eagle parents have been together since the winter of 2007-2008. They have since successfully hatched 11 eaglets. You can view the live webcam by visiting: http://www.ustream.tv/decoraheagles

 PHOTO FROM UNITED STATES FISH AND WILDLIFE SERVICE VIA WIKIMEDIA COMMONS

March Update on Subprime Foreclosure Rates

The Newark area referred to in this report covers the geographic area of the Newark-Union metro area as officially defined by the Office of Management and Budget of the U.S. Government.  The official coverage area includes the following counties:
 Essex County, Hunterdon County, Morris County, Sussex County, and Union County,
(Click on chart to enlarge)

B of A's Bold Experiment to Avoid Foreclosing

Bank of America announced that they were launching a pilot program to turn defaulted owners homes into rentals…and defaulting owners into tenants. Here are the details.

* Borrowers would agree to a what is known as a “deed-in-lieu” of foreclosure, where they essentially sign over ownership of the property to the lender.

* Former owners would be offered one-year leases with options to renew the leases in each of the following two years at rents that the bank determines are at or below the current market price. * The bank began sending letters Thursday offering leases to 1,000 homeowners in Arizona, Nevada and New York.

* Borrowers would have to demonstrate an ability to pay the market rent. In other words, the former owners would have to apply to lease their homes back from B of

Will it work? If an owner has defaulted due to real honest to God hardship are they even going to qualify to lease their own homes back? Or the other common situation where an owner strategically defaults. Will a strategic defaulter want to complete a credit application with the very same bank they just defaulted on?

* Rents would be based on a BofA formula. For example, a soon to be former owner with a $250,000 mortgage and monthly payments of $1,600 could swap the house for a lease, renting the home for $900. * Borrowers selected for the program must be at least two months past due on their mortgage and face considerable risk of foreclosure.

* Bank of America is reaching out to borrowers who have exhausted other alternatives to foreclosure or who haven’t responded to earlier solicitations.

* Homeowners with second mortgages or other liens won’t be selected. Stay tuned....

Buying Still Beats Renting in Most Markets

Trulia recently released its Winter 2012 Rent vs. Buy Index, which tracks whether it is more affordable to rent or buy a home in America’s 100 largest metropolitan areas. Based on asking prices for rental units and for-sale homes on Trulia.com between December 1, 2011 and February 29, 2012, the index reveals the relative cost of renting versus buying for similar homes in similar neighborhoods.

Buying Trumps Renting in 98 Out of 100 Major Metros after years of home price declines and tightening rental markets, homeownership is now more affordable than renting in all but two of the 100 largest markets – even in expensive real estate markets such as New York, Los Angeles and Boston. Only in Honolulu and San Francisco is renting often a better deal than buying. However, buying a home in these markets might make sense for people who plan to stay in their next home for at least five years and can benefit from the mortgage-interest tax deduction. (Above Photo: Construction recently resumed on the last phase of the massive Four Seasons at Great Notch senior living complex on Garret Mountain on the Clifton - Woodland Park border.)

Sunday Screening for Free Solar

The following event will be from 9:00AM to 1:00 PM this Sunday at St. John's Episcopal Church at 55 Montclair Avenue, Montclair.

On March 25th, GreenFaith - an interfaith environmental coalition - and AP Solar will join us to offer homeowners the opportunity to be screened for a zero-cost solar installation that would provide them with discounted electricity. There will be a monitor set up in the Parish Hall and interested homeowners can have their home screened via satellite photos to see if their roof appears to be suitable for solar. For every home that successfully goes solar through this Solar Screening Event and related on-line registration, GreenFaith will make a $200 contribution to St. John's. This offer is open to all New Jersey homeowners - so invite your friends to join us

Spring Has Sprung for Mortgage Rates

With the home-selling season about to begin, a new headwind —higher mortgage rates— has emerged. In the past week, the average 30-year mortgage tracked by Bankrate.com is 0.15 percentage point higher, adding nearly 1.8% to a typical monthly payment. Our Zillow mortgage calculator for 30 year loans on the right is springing from its low of 3.67%, barely two weeks ago, to the 4% mark. Government-sponsored mortgage giants Fannie Mae and Freddie Mac are also raising their charges to guarantee mortgages, adding to costs.

Higher rates will have come too recently to be reflected in the latest mortgage applications data. But they could pressure prices and sales. Happily, the basic supply-and-demand picture for builders is good—and getting better. In the six years through 2006, single-family housing starts averaged 1.49 million.

Public House

St Patricks Day at Halligan's Public House, West Orange's legendary Irish Pub located directly across the street from the restored Edison factory/museum on Main St. The host was the legendary Tommy Halligan who welcomed us like family. Lorraine Murphy Halligan's famous all you can eat Irish buffet, including corned beef, cabbage, shepherd pie potatoes, chicken Murphy, and soda bread. At five dollars per person, it was BEST deal in the Garden State -- but we arrived after most of the shepherd's pie was finished, so Tommy apologized profusely and made everything complementary including the best draft Guinness we've ever had! The evening climaxed with a concert(video clip) by the South Park and District Bag Pipe band led by Bill McVoy. All this while watching Jeremy Lin lead the Knicks to a blowout over the Pacers. Karaoke hour ended with Tommy's rendering of the late Davey Jones' Day Dream Believer backed up by his wife and daughter.

Sky is the Limit for Wooden High Rises

Treehugger.com reminds us that wood is perhaps the greenest building material; it is a renewable resource that absorbs carbon dioxide as it grows, which is sequestered in the wood when it is cut into building materials. But until recently its use was limited to low rise structures due to concern about the fire hazard.

It has been known for centuries that heavy timber actually performs better in fire than structural steel; a layer of insulating and fireproof char forms on the outside of it when it burns, protecting the structural integrity of the wood. (It is designed bigger than it needs to be to allow for this char layer.) The recent development of cross-laminated timber creates a building material with all of the virtues of heavy timber without the need for the big trees.

NJ Rentals Now 4th Highest in U.S.

The NJ Star Ledger has just reported the results of a new study showing that New Jersey ranks fourth in the nation for the most expensive place to rent a two-bedroom apartment, leaving nearly two-thirds of renters in the Garden State unable to afford an apartment that size.

Thirty-three percent of New Jersey households are renters, and a family must earn an hourly wage of $25.04, or $52,081 annually, to afford the so-called fair market rate for a two-bedroom apartment, without paying more than 30 percent of their income on housing. New York is ranked number 6 in this survey at $24.68 per hour. By contrast, the average American renter earns just $14.15 per hour. Among the many reasons rents are so high in NJ: 1. Purchase price of property - higher property values than most states 2. Property Taxes - One of the highest in country 3. Gas/electric - At an all time high 4. Insurance - higher than most states

Fire Season in NJ -- Starting Fires in Order to Prevent Them

An unusually dry winter has left the forest floor especially brittle this year, so he NJ Forest Fire Service has spent recent weeks getting ready for forest fire season — the transition time from winter to spring — which begins Thursday and continues to May 15.

Burning leaves and brush early in the year stops bigger fires from developing later. So far this year, there were 10 controlled burns in northern New Jersey, 86 in the central part of the state and 24 in the south. More fron The Asbury Park Press

NJ Housing Market is Now on the Upswing

David Matthau at NJ101.5FM is reporting that while home prices have been falling in Jersey for the past 8 months, new data indicates home sales in the Garden state have taken off like a rocket since the beginning of the year.Jeff Otteau, President of Otteau Valuation Group, says “home sales in New Jersey rose by 31 percent in January – which is the largest increase that we’ve seen in more than 3 years -it seems to indicate that the housing recovery is officially underway.”

He says “there is a seasonality to the housing market, where the greatest number of home sales typically occur from March through August…but what we’re seeing is that the rise in home sales is 31 percent above what we would have expected in January, and it tells us is that the increase is likely to continue and gain momentum as we move closer to that prime spring selling season.”

Otteau points out this is happening because “potential home buyers feel more confident in their job security today because it seems like the double dip possibility for a recession has now disappeared…also home prices have receded to 2003 levels – so home prices are at a bargain price today, and thirdly interest rates are at astounding lows…and all of that together is causing people who’ve been sitting on the fence to decide that now is the time to get back in the market.”

FHA Rates to Rise Sharply in April

FHA has recently announced that “as part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund” a new premium structure will go into effect.

Beginning April 1st, 2012, FHA will increase its monthly mortgage insurance premium as well as the upfront mortgage insurance premium.

On June 1st, 2012, there will be an additional increase of the monthly mortgage insurance premium for the high balance areas.

Currently, the upfront mortgage insurance, the amount added to the loan amount, is 1.00%. As of April 1st the new upfront mortgage insurance will increase to 1.75%. As an example, on a loan amount of $400,000, the current 1.00% equates to $4,000. After the increase goes into effect the new amount based upon 1.75% equates to $7,000. This increase will essentially add an additional $13 to the monthly payment.

White House Adds New Rule Changes to Stem Housing Crunch

Saying that the government “cannot fix the housing market on its own,” President Obama used his first press conference of the year to reiterate his belief that responsible homeowners “should not have to sit and wait for the market to hit bottom to get relief when there are measures at hand that can make a meaningful difference.”

The two steps from the detailed White House fact sheet announced today are:

Provide relief for service members and veterans, including those wrongfully foreclosed upon or denied a lower interest rate on their mortgages

Reduce fees for FHA borrowers looking to refinance.

The White House says these two new measures amplify policies outlined in Obama’s 2012 State of the Union address in January. The announcement comes on top of the historic settlement completed by the Federal government and 49 state Attorneys General last month, when it was agreed that five of the biggest lenders would pay upwards of $26 billion in fines and principle reductions.

Fannie is Looking for Landlords

Fannie Mae will offer up nearly 2500 distressed properties in eight locations to investors who are willing to buy them in bulk and rent them out for a set number of years.

The initiative is "...designed to reduce taxpayer losses, stabilize neighborhoods and home values, shift to more private management of properties, and reduce the supply of REO properties in the marketplace," said Edward J. DeMarco, the acting director of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae

How Pump Prices Should Pump Up Mortgage Rates

Dan Green's latest Daily Mortgage Report is warning homebuyers that interests rates are beginning to follow their tendency to tag along with the international oil market.

"When oil prices rise, they tend to take mortgage rates with them." he writes, "We've seen it time and again throughout history. The link is a natural one, too -- it's tied to inflation."

Ground Broken for Seattle's Ambitious Food Forest Project

Plans are now finalized, and ground has been broken, in a 3 year old project to turn an seven acre lot in Seattle into a “food forest” for everyone to use. And when it’s complete, the Beacon Food Forest will be the largest such public food source in the United States. In a food forest, everything from the tree canopy to the roots is edible or useful in some way.

The entire project will be built around the concept of permaculture — an ecological design system, philosophy, and set of ethics and principles used to create perennial, self-sustaining landscapes and settlements that build ecological knowledge and skills in communities. There are many issues ti be resolved to make the project successful and sustainable. NPR's recent story on the forest has already sparked nearly 100 comments.

Seattle’s Mayor and city council have established urban agriculture as a priority, with council passing the Local Food Action Initiative, a series of actions meant to promote local and regional food sustainability and security.

You just might like their Facebook page.

Seven NJ Towns to Receive New FEMA Flood Funds

Governor Christie announced on Thursday that New Jersey will receive $21.6 million in Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant funding to acquire (“buy-out”) and elevate properties in flood-ravaged areas in the northern and central part of the state. This was a response to widespread flood damage resulting primarily from heavy rains from Hurricane Irene on August 27 to September 5, 2011.

Phase II if the FEMA program will benefit seven communities will receive funding; specifically, Pompton Lakes, Cranford, Denville, New Milford, Parsippany-Troy Hills, Paterson, and Westwood. Funding became available to the state under a Major Presidential Disaster Declaration for Hurricane Irene.

More from the New Jersey Tomato Press.

Federal disaster assistance for NJ in 2011 topped out at 275 Million.

Case-Shiller Index at New Lows

Case-Shiller's latest summary of 2011 housing price stats has just been released:

“After a prior three years of accelerated decline, the past two years has been a story of a housing market that is bottoming out but has not yet stabilized.”

U.S. home prices fell in December from a month earlier, ending 2011 with 3 composite indexes at the lowest levels since the housing crisis began in mid-2006, according to Standard & Poor’s Case-Shiller home-price indexes.

During the fourth quarter, home prices reached new lows, falling 3.8% sequentially and 4% year-to-year. Prices are down 33.8% from their peak in the second quarter of 2006.

NJ Foreclosures Accelerate

While new construction is the traditional driver of supply in real estate, foreclosures now have a strong impact on inventories, particularly at the local level. Rising inventories, through construction or foreclosure, place downward pressure on the median home prices

Preparing for Power Outages

Most of Friday and Saturday night's weather forecasts in the Northeast include high wind warnings. This tipw of weather often leads to downed trees and power lines causing sudden blackouts.

Extreme weather conditions often cause power outages, often for long stretches of time. Whether you lose power for days, due to weather, or even for just a few hours because of a faulty power line, here are some tips to be fully prepared in emergencies.

Buy emergency supplies BEFORE disaster strikes, when items are easily accessible. Purchase items such as flashlights, matches, batteries, candles, lanterns, and lots of bottled water. Battery-powered space heaters may also come in handy. Consider getting a car cell phone charger to ensure continued battery life in your phone. Visit a camping store for food supplies in addition to your local grocery store for canned goods and non-perishable food. Don’t forget a manual can opener and disposable plates and utensils. Basic tools, extension cords, blankets and extra batteries should be included in your emergency supplies. Place all these items in a conveniently located waterproof container. Include a list of emergency phone numbers, such as your utility company, local fire and police department.

(This was one of several short articles in this month's Century 21 Newsletter which you can receive each month by emailing me at geoffgove@gmail.com)

New Signs of a Housing Boom This Spring

Sales of previously owned homes surged in January to the fastest pace since May 2010 in another sign that the housing market is finally making some headway against its longest downturn since the Great Depression.

The National Association of Realtors reported Wednesday that existing-home sales — the lion’s share of the housing market — rose 4.3 percent in January. The equates to a seasonally adjusted annual rate of 4.57 million homes, which is still well below the 6 million pace that economists say is needed for a healthy housing market.

Last month, there were 2.31 million unsold homes on the market last month, the lowest since March 2005. That represented a 6.1 months’ supply at January’s sales pace, the lowest since April 2006 and down from 6.4 months in December.

A supply of 6 months is generally considered ideal. But the median sales price fell 2 percent to $154,700 in January from a year ago.

FBI Warns New Cyber Scam Could Mean “Gameover”

The Federal Bureau of Investigation warns bank account holders of a new spam email scheme that involves a variant on a type of malware called "Gameover." The scheme involves fake emails from the National Automated Clearing HouseAssociation, the Federal Reserve or the FDIC.

Enclosed in each e-mail is a link that will allegedly solve the problem, but once clicked, it brings users to a website where the "Gameover" malware is downloaded," At this point, he malware quickly infects your computer and steals your banking information.

If you think you have been victimized by this type of scheme, contact your financial institution to report it and file a complaint with the FBI’s Internet Crime Complaint Center at
http://www.ic3.gov/default.aspx.

New Plan to Turn Foreclosures Into Affordable Housing.

NJ State Sen. Ray Lesniak (D-20), Elizabeth, introduced a bill today that would establish a central agency under the New Jersey Housing and Mortgage Finance Agency (HMFA) to use funds from the State Affordable Housing Trust Fund to purchase and deed-restrict foreclosed properties for affordable housing.

The Lesniak bill is supported by the New Jersey League of Municipalities along with trade associations for the banking, construction and real estate industries. George Vallone, a Hoboken builder who is a vice president of the N.J. Builders Association, said it would help avert a “death spiral in home values if all these homes are dumped on the market by banks that want to unload them.”

Your Housing and Your Love Life

From this week's Time: In honor of Valentine’s Day, the real estate website Trulia commissioned Harris Interactive to conduct a survey looking at the intersection of attitudes about housing and romance. Are homeowners regarded as “marriage material” more so than noncommittal renters? Are people more interested in potential mates if they live alone?

Nearly three-quarters (74%) of unmarried renters said they’d be willing to consider living with their significant other in order to save money. Somewhat surprisingly, more men than women said they’d be very willing to make the commitment of cohabitation.

Timing

Real estate is a cyclical business. And although we can predict certain annual upticks and downturns based on historical buying and selling patterns, we must rely on what’s happening right now to determine when is the best time to buy or sell a home.

One of the mistakes I see many buyers and sellers make is trying to time the market – waiting for the ‘right moment’ when they think they’ll get the best price. The truth is, timing the market is almost impossible because just when you think it’s the right moment, the market changes.

Here’s what I know for sure: when you team up with me, we will make decisions based on your individual needs, my experience, and knowledge of your local market.

It’s a combination that has helped many clients buy and sell a home. Let us know if you need to buy or sell a home, or know someone who does.

Foreclosure Settlement Lenders

The settlement announcement listed telephone numbers for borrowers seeking information from their lenders:

Ally: 1-800-766-4622
Bank of America: 1-877-488-7814
Citibank: 1-866-272-4749
JP Morgan Chase: 1-866-372-6901
Wells Fargo: 1-800-288-3212

NJ's Share of Today's 25 Billion Settlement

After months of negotiations, the nation’s five largest banks and state and government officials have agreed to a $26 billion settlement aimed at holding banks accountable for the mishandling of many foreclosures by questionable procedures like robo-signing.

The settlement is expected to help 1 million home owners, by having lenders reduce their mortgage debt or refinance into lower mortgage rates to reduce costs of their monthly payments.
New Jersey will receive an estimated $837.7 million as part of Thursday’s record breaking $25-billion settlement between five giant banks and state and federal authorities on foreclosure abuses.

The money will be used to lower loan amounts and allow refinancing for some homeowners who owe more on their mortgages than their homes are worth — a group that numbers 300,000 in New Jersey. It will also pay $2,000 to foreclosed homeowners hurt by “robo-signing,” in which servicers’ representatives signed legal documents without verifying them.

New Jersey residents will benefit from the settlement in several significant ways:"

the estimated $660 million in benefits from loan term modifications and other direct relief;

$12.5 million in cash payments for those who were abused by mortgage servers and lost their homes to foreclosure between January 1, 2008 and December 31, 2011;

an estimated $89.5 million in loan refinancing for some borrowers whose loans are underwater;

$75.5 million in direct payments to the state for housing programs.

To apply for restitution, borrowers who lost their homes between January 1, 2008 and December 31, 2011, must submit certifications to a claims administrator. Nationally, almost 4 million Americans lost property through foreclosure in that period.

Give Locally

GiveLocally.net is a not-profit clearing house for folks who want to feel and track the impact of their gifts to specific families. Their objective is to assist working class Americans who would otherwise be overlooked by charities or government services. Donations by Give Locally are made in kind not in cash.

Where practical, Gifts are distributed within 30 days. Give Locally maintains that are the only place to find unique giving opportunities in local areas.

Rezoning Plan Could Bring 1,200 Acres of Rooftop Farms to NYC

Inhabitat reports that a new proposal by the NYC Department of City Planning would allow commercial buildings throughout the city to be topped with rooftop farms or greenhouses without increasing the building’s floor area ratio and height restrictions. According to a study by the Urban Design Lab, this amendment could bring almost 1,200 acres of rooftop farms to the city. The zoning proposal was spurred by the popularity of rooftop farms such as the expanding Brooklyn Grange pictured here.

Where the NJ Jobs Are

The monthly employment stats just came out this morning with another unexpected drop in the percentage of unemployed. The new figures show a sharp drop from 8.5% to 8.3% with the addition of 243,000 new jobs. the chart at right breaks down the jobs in the Newark area in comparison the the rest of the U.S.(click on the chart to enlarge it)
For a detailed update on the NJ housing market check out my latest NJ Housing Trends Newsletter. You will see links to several key NJ markets.

Rates Turn Up a Bit

Rates were up for the first time in several weeks as Freddie Mac announced a rise for the week ending January 26. 30-year fixed rates averaged 3.98%, up from 3.88% the previous week. The average for 15 year loans rose to 3.24%. Adjustable rates were up slightly, with the average for one-year adjustables increasing to 2.74% and five-year adjustables rising to 2.85%.

GROUNDHOG DAY UPDATE: Like Bill Murray, we've been here before -- rates have just dropped again to new record lows! We're now seeing rates as low as 3.65 to 3.85%.