Texas Real Estate Daily

Homeowners were able to hold steady on the sales price they sought their property in North Texas in September, which put the area ahead of most in the country, according to research released Wednesday from Real IQ and Altos Research.

Asking prices for homes in Dallas-Fort Worth had no change in September from the previous month and increased 0.3 percent from three months ago, according to the figures.

The research found that listing prices in 21 of 26 metro areas surveyed declined from the previous month.

The inventory of homes in North Texas has fallen 3.8 percent in the past month and 9.2 percent in the past three months.

The homes are staying on the market longer. The average number of days a North Texas home stayed on the market in September was 96, an increase of 9.9 percent over the past three months. The figures show that 19 of the 26 metro areas average 100 days or more.

A composite index of 10 metro areas studied showed that asking prices dropped 1.4 percent in a month and 2.9 percent since July.

Las Vegas had the largest drop in asking prices, with a 3.5 percent decline in September. In the past year, asking prices there have fallen more than 30 percent.

Credits: Star Telegram

An estimated 30,000 Texas homeowners with mortgages from Countrywide Financial may get friendlier loan terms through a settlement announced Monday to help rescue those in over their head.

The deal, involving the company and several states, allows eligible homeowners to modify terms of their loans to make monthly mortgage payments more affordable.

The loan modification program affects Texans who are in default or likely to default on subprime mortgages from Countrywide, a financially struggling company recently acquired by Bank of America.

Possible help measures include:

• Lower interest rates to as low as 2.5 percent for up to five years.

• Conversion of adjustable-rate mortgages to fixed-term loans.

• Reduced principal loan amounts.

• Suspension of foreclosure for eligible homeowners who are in default but want to stay in their homes.

Distressed Texas homeowners will get up to $350 million worth of benefits as part of an $8.4 billion settlement involving deceptive lending practices.

“Helping eligible Texans pay their mortgages and stay in their homes will help our great state weather this financial storm,” Texas Attorney General Greg Abbott said.

“This is, obviously, a very stressful time for homeowners around this state. It’s important that they be able to stay in their homes.”

A major component of the program will help steer eligible homeowners into refinancing with the Federal Housing Administration and a new mortgage pegged at 90 percent of the current home value, Bank of America spokesman Terry Francisco said.

“We would use that as our preferred method for handling a loan modification,” he said.

The program won’t solve all mortgage-related problems, Abbott said, “but it is a step down the path (of) helping Texans stay in their homes and continue to work to build the American dream.”

The settlement affects only those with subprime mortgages issued by Countrywide.

But Abbott said his office would contact other mortgage companies to determine whether the Countywide settlement can be used as a model to help other struggling homeowners.

Bank of America embraced the agreement, which obligates the bank to spend $150 million nationwide to help homeowners who are at least four months behind on their payments or who have already lost their home.

The company also will spend up to $70 million to help homeowners move into rental housing if the loan modification program is insufficient to help them keep their homes.

The “soft landing” provision will provide cash payments — roughly $200 — to help families who lose their home to pay for relocation costs, such as moving and apartment security deposits, said Francisco, the Bank of America spokesman.

The investigation into predatory lending practices focused on Countrywide making high-risk loans and charging high fees, Abbott said.

“They mislead the borrower into a situation (that) was financially detrimental,” he said.

Credits: Chron

There is a move afoot by my state senator, Mike Jackson and others to push local taxing authorities to reappraise properties that were damaged during Hurricane Ike.

“Existing law authorizes local officials in a disaster area to proceed with a reappraisal process so folks who lose their homes or suffer significant damage pay a fair property tax for the portion of the year after their homes were damaged or destroyed,” added Senator Jackson. “It is simple and fair, and is not too much to ask for our homeowners.”

As usual, Mike is straight and to the point. This is simple and fair. Problem is, it is not going to happen because the very nature of relying heavily upon property taxes is complex, unfair and local taxing entities were also damaged and have increased costs due to the storm. Although it would be simple and fair, it is unrealistic to expect it.

Which is why Sen. Dan Patrick’s views on this issue continue to stress the need to change the corrupt system we currently use. Here is his latest press release on the issue.

Current Reappraisal Crisis Illustrates Important Lesson

Senator Patrick renews his promise to move Texas away from property tax reliance.

Yesterday was the first day that homeowners began receiving their property tax bills and those affected by the hurricane are not exempt.

Senator Dan Patrick applauds the efforts of Senator Jackson and Representative Zerwas, as well as Senate District 17 candidate Austen Furse, to push for a reappraisal of property affected by Hurricane Ike.

“I join these leaders in pushing for a reappraisal and I hope that it can be accomplished,” said Senate Patrick, “but this situation is only a symptom of our bigger problem: Texas’ over dependence on property taxes.”

Current law requires each taxing entity to request a reappraisal before their tax levy can be reduced. The likelihood of the 500 taxing entities in Harris County making that request is low because it will basically lower their revenue. Even if the reappraisal does occur, the tax levy will only be reduced for the time period after the hurricane to the end of the year.

“Our continued reliance on property taxes and the legislature’s failure to protect voters from unfair property appraisal is going to result in tax bills arriving in mailboxes at homes that no longer exist,” lamented Patrick. This injustice will be most keenly felt in Galveston which has yet to seek or administer a reappraisal. However, the damage is not just limited to the coastal areas. Homes from Clear Lake to Tomball have lost significant value due to hurricane damage.

Texas is ranked 27 by the nonpartisan Tax Foundation, which compares the property tax burden levied on the citizens of each state. “Texas is a low tax state except for property taxes, which is the worst of all taxes to depend upon,” said Patrick. “Discouraging home ownership through a bewildering labyrinth of tax provisions is rapidly leading Texans to revolt.”

Senator Patrick is currently working with other state legislators to develop a strategy that will lower property taxes by reforming sales taxes. Sales tax is the most transparent, broad-based and fair tax system available. Senator Patrick’s goal is to develop a property/sales tax swap that will guarantee long term property tax relief without negatively impacting Texans’ wallet.

Once again, Sen. Patrick is correct. We MUST change this corrupt system. It will take time and energy but we MUST keep pushing for this change.

In the meantime, you can support Sen. Jackson’s effort by clicking here: Ike Tax Relief. For the last two weeks, I’ve had my hands full trying to restore my home to livable conditions. Sen. Jackson’s home, just down the street, was devastated, with flood waters reaching 5-6 feet inside.

Does anyone seriously think our homes are worth the already overinflated HCAD appraisals? If so, give me a call, I’ll sell today for that appraised amount. As is.

Credits: Lone Star Times