By Dennis Norman, on February 1st, 2011 
RealtyTrac released their foreclosure report for 2010 which showed some mixed results. During 2010 there were 2,871,891 foreclosure filings in the U.S., an increase of 1.67 percent from 2009. However the metro areas with the 10 highest foreclosure rates all saw decreases in foreclosure filings in 2010 from the year before, in fact six of the ten metros even had decreased foreclosure activity from 2008. Continue reading “Foreclosures in 2010 up from 2009 in U.S.; down in top ten foreclosure markets“
By Robert Fishel, on November 17th, 2010 
Obtaining a mortgage to buy a home, or to refinance an existing mortgage, can sometimes be a little intimidating to borrowers, but it needn’t be. Granted, this is something the typical person only does every few years at most and regulations continually change the process, but that’s where lenders such as myself come in to the picture, to provide you the info you need and to guide you through the process. Continue reading “Mortgage Loans 101 and St. Louis Mortgage Rate Update“
By Dennis Norman, on November 17th, 2010 
Price Reductions Surpass Highest Historical Levels in 15 U.S. Cities, Remain Flat Nationwide
According to a report released this morning by Trulia.com, 27 percent of the homes for sale in November have experienced at least one price cut. Following four-consecutive months of increases, this rate has now flattened out nationwide. However, locally the story is different as 15 major cities hit an all-time high for price reductions in November.
 “Price reduction increases in many large U.S. cities can be attributed to the basic principle of supply and demand –– on that score, buyers clearly have the advantage this holiday season,” said Tara-Nicholle Nelson, consumer educator, Trulia.com. “The market is flooded with distressed homes that are priced to sell and individual sellers are having a tough time competing. These dynamics, along with a shallow pool of active buyers, are leading to increases in price reductions.”
The average discount for price-reduced homes continues to hold at 10 percent off of the original listing price.
Cities with Record High Percentage in Price Reductions
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% of Price Reductions in
Rank City State November 2010
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1 Minneapolis MN 46%
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2 Phoenix AZ 40%
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3 Mesa AZ 39%
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4 Baltimore MD 39%
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5 Chicago IL 35%
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6 Colorado Springs CO 34%
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7 Arlington TX 33%
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8 Cleveland OH 33%
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9 Fresno CA 32%
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10 Long Beach CA 32%
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11 Philadelphia PA 31%
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12 San Diego CA 29%
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13 Sacramento CA 28%
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14 Fort Worth TX 28%
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15 Denver CO 25%
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By Dennis Norman, on August 30th, 2010  Dennis Norman While many us have been worrying about what is happening to the value of our homes, how to deal with being underwater on a mortgage or even facing the loss of a home, there are many people, families included, in the U.S. whose worry is much more basic….where to find safe shelter for the night. Continue reading “Homelessness in America“
By Dennis Norman, on July 26th, 2010 Dennis Norman Asking this question now is about like asking a newly divorced person their thoughts on marriage….nonetheless in challenging times many of us reflect upon our past investment decisions, investment philosophy, etc and see what can be learned from our past to help us in the future. Continue reading “Is a home a good investment?“
By Robert Fishel, on July 7th, 2010 After a close brush with a deadline that could have impacted tens of thousands of home buyers, Congress passed an extension of the Home buyer Tax Credit closing deadline.
The extension is included in the Home Buyer Assistance and Improvement Act and will prevent as many as 180,000 home buyers from losing their eligibility for the tax credit. These borrowers had home purchase contracts pending as of April 30 and had until June 30 to close on their purchases to claim the federal tax credit; with this extension, these households now have until September 30 to close and still claim the tax credit.
Separately, the U.S. Senate also passed the National Flood Insurance Program Extension Act of 2010, extending the National Flood Insurance Program until September 30. This will allow home purchases in the 100-year floodplain to move forward. The House passed the bill last week.
St. Louis Mortgage Interest Rates – July 7, 2010 *
- 30-year fixed-rate mortgage 4.375% no points
- 15-year fixed-rate mortgage 4.125% no points
- 5/1 adjustable rate mortgage 3.50% no points
- FHA/VA 30-year fixed rate mortgage 4.75%
- Jumbo 5/1 ARM 4.125% no points
- Jumbo 15 year fixed rate mortgage 4.625%
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on June 14th, 2010  Dennis Norman
Will the Bears or Bulls prevail in 2010?
As the real estate market is beginning to show signs that we are “bottoming out” and that the down-slide is leveling off the discussion has become what the rest of 2010 holds in store. Some say we are entering a Bull market and expect prices to increase from the depressed levels they have reached citing the greatly increased affordability of homes and record low interest rates; others say we are entering a Bear market and that over-supply in the market, largely a result of record foreclosures, will continue to beat prices down.
Here’s what the “Bulls” say:
- Home prices are at levels significantly lower than their peak levels during the “boom” and affordability is at the lowest level in years.
- Interest rates are at record lows and, while obtaining financing is currently somewhat of a challenge, lenders are expected to ease up on their lending policies and make financing more readily available. The government is already pushing a rule change for Fannie Mae and Freddie Mac to have them loosen their underwriting guidelines.
- Richard DeKaser, Contributing Economist to The Kiplinger Letter, in a recent article cited three reasons why he felt supported being optimistic, or “Bullish”, on the housing market:
- Affordability – it now takes 18 percent of the typical household income to afford a home, compared with a long-term average of 26 percent.
- Consumer confidence – says that consumers are beginning to take on expensive, long-term commitments.
- Credit conditions will ease up – The Fed Reserve’s April survey of senior loan officers show banks were reporting “essentially no change” in their underwriting standards on mortgages over the past three months. (so I guess since it didn’t get worse that is good)
Here’s what the “Bears” say:
- The recent upward spike in home sales is, for the most part, nothing more than the temporary and artificial market that was created by the government’s home-buyer tax credit program.
- While recent reports have shown that the rate of increase of mortgage delinquencies and foreclosures has decreased over the past couple of months, we are still at record levels of both which will continue to flood the market with foreclosures and REO’s.
- Even during the recent uptick in home sales brought on by the expiring tax credits, home prices still dropped in many markets. This shows there is still some uncertainty about home values in the market place, which, coupled with the downward price pressure caused by foreclosures, will continue to put heavy negative pressure on home prices.
- The rate of unemployment is still high and our economy still has many challenges: off the charts spending and debt by the Federal govt, States and Cities struggling to balance budgets not to mention the international issues brought on by lagging economies in Europe and China, Greece’s financial issues and so on.
So what it is, a Bull or a Bear coming our way?
Remember, I’m in the real estate business, I WANT it to be a bull. But….here’s what I see coming…
 Sorry!
By Dennis Norman, on May 28th, 2010 Dennis Norman Talk about the housing market not being able to catch a break….it seems every time something positive happens to give us a little encouragement, something else pops up to give the market another black eye. Here we are less than a month after the home-buyer tax credit deadline has passed and we are seeing reports of home prices dropping again as well as the volume of sales, and now, the National Flood Insurance Program (NFIP) is set to expire on May 31st. Of course Congress could extend the program prior to the expiration, but the word I hear from the National Association of REALTORS is that is not going to happen.
So what happens after May 31st?
The NFIP will no longer have the authority to issue new flood insurance policies nor renew existing policies until Congress reauthorizes the program. This will not affect existing policies however, nor policies purchased prior to the May 31st expiration. Obviously for sellers with homes in flood plains, this will not help them sell their homes, and for those homeowners that have existing flood insurance policies expiring (particularly with hurricane season approaching) it’s probably going to put them a little on edge.
There is some help and alternatives…
FEMA will allow buyers to assume existing flood insurance policies on homes they are buying, so if you are purchasing a home in a flood plain and the current homeowner has flood insurance you can assume it….now, if the expiration date of the policy is not far off that may make a buyer hesitate for fear that their insurance could lapse before Congress takes care of things.
An alternative is to purchase private flood insurance from a company such as Lloyd’s of London, Chubb or AIG….get ready for premium shock though as flood, when not subsidized through a government program like NFIP, is expensive.
Hopefully when Congress gets back to work after the Memorial Day break they will get the program extended before too much time lapses.
For more information you can check out the following web sites:
FEMA
FHA
Fannie Mae
Freddie Mac
VA
By Robert Fishel, on May 26th, 2010
The National Flood Insurance Program, known as the NFIP, lapsed March 28 this year and left many pending home sales in limbo.
Congress and President Barack Obama temporarily reinstated the program 18 days later on April 16 as part of a bill that also extended unemployment benefits and Medicare reimbursement for doctors. However, the temporary extension of the NFIP legislation will expire again on May 31.
The stage has now been set for another lapse in funding for the program just weeks before the mandatory June 30 closing deadline for buyers attempting to satisfy the requirements of the federal $8,000 first-time and $6,500 repeat homebuyer tax credits. The recent 18-day lapse in the NFIP is the third since December, with each one growing in duration. The December interruption lasted nine hours, the February pause lasted two days.
Without another legislative extension of the NFIP by the end of the month, some home buyers may not be able to close on their properties.
The National Association of Realtors estimates a one-day lapse adversely affects 1,400 closings nationwide.
St. Louis Mortgage Interest Rates – May 26, 2010 *
- 30-year fixed-rate mortgage 4.75% no points
- 15-year fixed-rate mortgage 4.250% no points
- 5/1 adjustable rate mortgage 3.500% no points
- FHA/VA 30-year fixed rate mortgage 4.8750%
- Jumbo 5/1 ARM 4.000% no points
- Jumbo 15 year fixed rate mortgage 4.625%
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on April 17th, 2010 Dennis Norman This past Thursday Congress passed H.R. 4851 and President Obama signed it into law the same day extending the National Flood Insurance Program, which had expired on March 28th, through May 31, 2010.
The National Association of REALTORS, which lobbied hard for this extension, now says they are working with Congress to get the National Flood Insurance Program reauthorized before it expires again on May 31st.
By Robert Fishel, on April 14th, 2010
First-time home buyers comprised an unprecedented 47 percent of the market last year according to a recently published report by the National Association of Realtors (NAR).
NAR’s report, 2009 Profile of Home Buyers and Sellers, points to the federal tax credit and the historic affordability of housing as the most likely reasons first-time buyers scored so high in sales.
According to NAR, housing economists predict that “2010 will be an even bigger year for first-timers.” Who are these people, and what do they want?
Most are married – Forty-nine percent are a married couple. Single females comprise a quarter of first-time buyers. Single males account for just 12 percent.
They’re young – More than half (53 percent), are between the ages of 24 and 34. Twelve percent are younger than 24.
They’re diverse – Twenty-two percent are part of a minority group, compared with 13 percent of repeat buyers. Six percent speak a language other than English. Twelve percent were not born in the United States.
They like the suburbs – Even though 22 percent purchase in an urban area, the suburbs continue to be the most popular locale, with 52 percent buying there. The third most popular spot is a small town.
They make their own time – First-time buyers take an average of 12 weeks to find their home, compared with 10 weeks for repeat buyers.
They’re not afraid of foreclosures – Eleven percent of first-timers bought a home in foreclosure and 56 percent considered it. Only 9 percent of repeat buyers bought a foreclosure, and just 41 percent considered it.
They’re most likely to use a referral – Fifty-three percent found their agent through a referral, compared with 36 percent of repeat buyers, many of whom sought the services of their previous agent.
More than 9,000 consumers who recently completed a home buying transaction were surveyed by the National Association of Realtors last year to compile the 2009 Profile of Home Buyers and Sellers report.
St. Louis Mortgage Interest Rates – April 14, 2010 *
- 30-year fixed-rate mortgage 5.125% no points
- 15-year fixed-rate mortgage 4.375% no points
- 5/1 adjustable rate mortgage 3.750% no points
- FHA/VA 30-year fixed rate mortgage 5.25%
- Jumbo 5/1 ARM 4.25% no points
- Jumbo 15 year fixed rate mortgage 4.875%
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
*Note- The above rates are based upon a typical sale price of $187,500 with a 20% percent down payment leaving a loan amount of $150,000 to a borrower with a 720 credit score for a loan with no discount points charged. Rates and terms will vary depending upon loan amount, home value, credit and income of borrower.
This information is provided by this author and this site for informative purposes only and is not warranted or guarteed in any way.
By Dennis Norman, on January 6th, 2010
- Dennis Norman
In the past I think closing costs associated with the purchase of a home were pretty much a mystery to many, if not most, home buyers with many not even being sure what they were paying for. Most buyers simply went through the process, paying for closing fees, notary fees, title examination, title insurance, survey, flood letters, courier fees, recording fees, etc. without ever realizing that these fees and costs may vary with other vendors.
January 1st changes went into effect in the RESPA (Real Estate Settlement Procedures Act) which will require lenders to fully disclose all closing costs, including the costs of obtaining a loan as well as estimated costs for title insurance, settlement and other services within three days after a buyer applies for a mortgage. This should make it easier for buyers to see what services they are being provided, what the cost is estimated to be and to have time to shop around to find the best providers of those services at the most reasonable prices. Basically it gives buyers the opportunity to take control of “their deal” and not just “go with the flow” hoping that vendors being selected by your lender, real estate agent and/or title company are providing you with the best service at the best price. While preparing to do this post I ran across a company that I am not familiar with but have to admit I really like their website and think it could be a great resource for homebuyers. The company is called Closing Corp and their website is Closing.com.  Home buyers can go to their website, fill in the address of the property you are buying, answer a few questions and not only get a detailed estimate of their house payments as well as closing costs but also see quotes for various services from local companies (such as title insurance, home warranties, etc) and then print out a report. I entered an address here in St. Louis and got the following results:
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47 title companies listed with prices from 6
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10 home warranty companies with prices from 8
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28 home inspection companies with prices from 13
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17 pest control companies with prices from 3
As I looked over the “quotes” for the various services I found several disclaimers, basically nothing is binding of course, but I do think this gives a buyer a good idea of the range of prices they should expect as well as gives them a list of various vendors in their area they can consider. In addition it provides short explanations of each service such as this description of title insurance which, while it is short, I think it does a decent job of explaining what it is:
Title Insurance protects property owners and lenders from losses that could result from disputes over who actually owns the property. This could include fraud, liens against the property, or errors missed during a title search.
If nothing else the fact that it estimates your monthly mortgage payment for you, including an estimate for property taxes and property insurance, is probably worth the visit to the site.
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Authors disclaimer: This is not an endorsement of Closing.Com nor recommendation or warranty, expressed or implied. It is simply an editorial review of the site. Realize that general and generic information from this site or any other like it is just that, general and generic. Consult your real estate professional to assist you in getting information specific to your situation.
By Dennis Norman, on November 12th, 2009 The Justice Department announced it has filed a lawsuit today in federal court for the Eastern District of Missouri alleging a pattern or practice of violations of the Fair Housing Act by the owner and managers of Forum Manor Apartments, a federally-subsidized apartment complex, for refusing to rent to African-Americans and males, refusing to allow tenants to have African-American visitors, sexually harassing female tenants and retaliating against tenants who complained about such discrimination. Continue reading “Justice Department Files Fair Housing Lawsuit in Missouri Against Owner and Managers of Federally-Subsidized Property for Race and Sex Discrimination“
By Dennis Norman, on August 22nd, 2009
- Dennis Norman
By: Dennis Norman
All the news lately about the housing market, home sales in particular, has been encouraging and showing signs of stabilization in the real estate market and demonstrating that the real estate market may have seen the worst. Just when you think you may be through the storm though you see another dark cloud lurking in the distance. For the real estate market this dark cloud could very well be mortgage delinquencies and foreclosures.
At the end of this week the Mortgage Bankers Association reported that serious mortgage delinquencies (homeowners that are 90 or more days past due on their house payments or are already in foreclosure proceedings) reached record levels in the 2nd quarter of 2009 and surpassing the record set in the prior quarter. According to the Mortgage Bankers Association statistics over 13 percent of all loans are now past due and 1 in 12 borrowers is seriously delinquent on their mortgage. This is a 45 percent increase from a year ago when 1 in 22 borrowers were seriously delinquent and a whopping 70 percent increase from two years ago when only it was 1 in 40. Continue reading “One in twelve borrowers seriously delinquent on their mortgage“
By Dennis Norman, on August 11th, 2009 By: Dennis Norman
If you are a homeowner looking to sell your home today I don’t think I need to tell you it could be a challenge. In an effort to address some of the questions you may have about selling your home now as well as provide some useful tips and information
Now, lets find out what it takes to sell a home in this market: Continue reading “Advice to sellers from a St. Louis REALTOR – part one of a series“
By Dennis Norman, on August 6th, 2009 Dennis Norman By: Dennis Norman
Yesterday I did part one of my E-View with Carole Baras, CRS, GRI, ePRO, the 2009 President of the St. Louis Association of REALTORS(R) to get her take on the St. Louis real estate market.
Today I’ll pick up where I left off and complete my E-View with Carole:
 Carole Baras, 2009 President, St. Louis Association of REALTORS(R) Dennis – Carole, obviously many things are affecting the real estate market at this time, many in a negative way unfortunately. What negative forces do you see working against the St. Louis real estate market and what effect are they having?
Carole – The city of St. Louis as well as the North County area of St. Louis county have been most affected by the foreclosure rate and this has had a direct impact on the average price of homes. Continue reading “St. Louis Association of REALTORS(R) Presidents’ view of the market – Second Post in a series“
By Dennis Norman, on August 5th, 2009 Dennis Norman By: Dennis Norman
Last month I published my E-View with Karen Vennard, the 2009 President of the St. Charles County Association of REALTORS(R) to get her take on the real estate market in St. Charles County. Now it’s time for the St. Louis side of the Missouri River.
To find out the status of the real estate market in St. Louis County, as well as the City of St. Louis, I turned to Carole Baras, CRS, GRI, ePRO, the 2009 President of the St. Louis Association of REALTORS(R) to get her take on the market. Continue reading “St. Louis Association of REALTORS(R) Presidents’ view of the market – First Post in a series“
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