KeNo's Housing and Economic Portal: Friday April 15 Housing and Economic stories

Thursday, April 14, 2011

Friday April 15 Housing and Economic stories

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TOP STORIES:

Real Estate Crash Catches Up to U.S. Municipalities as Property Taxes Drop - (www.bloomberg.com) The real-estate crash is catching up to U.S. municipalities. Cities, counties and school districts had been sheltered from the full impact of the slump because of the lag between when realty prices fluctuate and values are reset by local tax assessors. That’s changing as property rolls are adjusted to the current market and residents push to have their taxes cut. Local officials are now facing the consequences. Property- tax revenue dropped in the last three months of 2010 at the fastest pace since home prices slipped from their peak more than four years ago, the Census Bureau said yesterday. The decline may continue as values fall further, adding strains to cash- strapped localities that already fired workers, halted projects and cut spending because of the recession that began in 2007. “The story had been a question about why property taxes weren’t declining,” said Christopher Hoene, research director for the Washington-based National League of Cities. “What the census is picking up is that’s been happening and it’s likely to keep happening for the next few quarters.”

HOUSE OF THE DAY: The $20 Million Qaddafi Home Being Occupied By Squatters - (www.businessinsider.com) Squatters occupied Saif Qaddafi's home in an upscale neighborhood on March 9, and it seems they are there to stay. The home is listed for about $20 million (£12.5 million) and is located in the Hampstead Garden Suburb area north of London. The squatters call themselves "Topple the Tyrants," and are anti-Qaddafi demonstrators dedicated to showing the Libyan regime they are over. Other residents in the exclusive neighborhood are now scared to leave their homes for long vacations. Many are even changing their summer holiday plans with fears of their homes being invaded by squatters as well (via London Evening Standard).

Federal regulators propose 20% down payment for best home mortgages - (www.washingtonpost.com) If you want to buy a $300,000 house, you’ll need $60,000 as a down payment to get the best interest rate on your home loan, according to a proposal released Tuesday by federal regulators. A group of federal agencies announced a high standard for home buyers to get the best mortgage rates: Only those who can make a 20 percent down payment and have not had problems paying mortgages in the recent past would be eligible. The regulators are trying to prevent the kinds of practices that dumped so many risky mortgages into the financial system several years ago. But the proposal has sparked concerns from some groups, which worry that a 20 percent down payment is too onerous for many working-class borrowers. Banks also oppose the heightened down-payment requirement, which regulators had considered setting as low as 10 percent.

Florida "Foreclosure King" Stern Tries To Illegally Abandon Cases – (www.foreclosurenews.com) Palm Beach County Chief Judge Peter Blanc has been weighing his options following the March 4 letter from former “foreclosure king” David J. Stern that said his firm was ceasing foreclosure operations at the end of the month and leaving about 100,000 cases statewide in limbo. On Friday, Blanc responded by saying the decision to end the firm’s representation of cases with a single letter to all chief judges has no basis in law, and therefore cannot be considered as an “effective or legal termination” of his obligations. Blanc said he “strongly” urges Stern to reconsider his unilateral decision to cease representation. Also, to deal with the nearly 9,000 Stern foreclosure cases in Palm Beach County that are now in question, Blanc said he is setting case management conferences that will require Stern’s firm to provide notice to all parties to the proceeding.

Irish Stress Tests May Leave Government in Control of Banks - (www.bloomberg.com) The Irish government may be forced to take controlling stakes in Bank of Ireland Plc and Irish Life & Permanent Plc, the last of the country’s biggest lenders to escape state control, following tomorrow’s stress tests. “They’ve clearly got most to lose,” said Oliver Gilvarry, head of research at Dublin-based Dolmen Securities, who has “sell” rating on both banks. “It’s difficult to see how either will end up less than 50 percent owned by taxpayers.” The Irish Central Bank will publish its third round of stress tests at 4:30 p.m. tomorrow. The results will determine whether the two can avoid joining four of the country’s biggest banks in majority state ownership after they all logged record losses as the country’s decade-long real estate bubble burst.