Friday, February 06, 2009
Why Arizona Electricians are so Expensive
This comes to us from Tucson Electric Power. Be sure to look for any opening in breaker boxes, as openings are likely to house something we do not want to come into contact with. The pictures show what one of our lineman came across the other day while checking a meter. The critter had climbed up through the knockout hole because he was after a mouse. Needless to say, neither the snake nor the mouse made it.
Wednesday, February 04, 2009
Fannie, Freddie Criticized on Rental Policy
REAL ESTATE
JANUARY 30, 2009, 10:26 P.M. ET
Fannie, Freddie Criticized on Rental Policy
Some Real-Estate Agents Say Mortgage Giants' Failure to Evict Tenants Could Slow Housing Rebound
By NICK TIMIRAOS
Fannie Mae and Freddie Mac, currently the largest holders of U.S. home mortgages, are fast becoming big landlords. But some real estate agents say the firms' unwillingness to evict tenants from properties they inherit could slow the housing market's recovery.
Freddie Mac, bowing to pressure from affordable-housing advocates, said Friday it would let renters remain in homes lost to foreclosure. The mortgage-finance company will begin next month offering monthly leases to tenants, following the lead of Fannie Mae, which rolled out a similar policy earlier this month. Both companies said Friday they would halt tenant evictions in February.
The policies are an about-face from the two companies' previous practice when, like most lenders and mortgage companies, they routinely evicted tenants in homes that fell into foreclosure, even when residents were current on their rent.
Tenant advocates have called on private lenders to follow Fannie and Freddies' lead, noting that tenants have been swept up in the foreclosure crisis. Lenders should "not be kicking a tenant out in the middle of a recession who has upheld all the terms of their rental agreement," said Jim Carr, operating chief of the National Community Reinvestment Coalition. "It represents a really important and good-faith effort not to compound the misery of these families."
Fannie and Freddie's responsibity for running businesses sometimes is at odds with its mission of fostering home ownership and community stability. So while tenant groups have hailed the companies' moves, some critics contend that the plans, while perhaps providing a social good, don't make sound business sense.
Among the critics are real-estate agents, whom Fannie Mae will rely on to handle maintenance and rent collection for some of the properties. They say renting the homes could slow sales because homes don't sell as well with tenants living in them.
"Fannie Mae is in the business of financing homes and selling them, but now this change is going to result in properties probably remaining on the market," said Brett Barry, an agent with Realty Executives in Phoenix who sells properties that now include tenants eligible for a Fannie Mae lease. "Now," he added, "if someone calls me at 3 a.m. with a toilet malfunction or a roof leak, I'm responsible for handling that."
Fannie and Freddie will market the homes for sale while they are rented and leases will transfer to the buyers. Real-estate agents also say they are worried the policy will limit the pool of buyers to investors, and that it could lead rental prices to dictate sale prices and further erode values.
"If you've got a house worth $350,000 and rent it for $1,200, no investor is going to buy that," said David Peeples, a Tallahassee, Fla., real-estate agent. Because that monthly rent wouldn't cover the mortgage payments, he said, "The end result is that with a tenant, it's going to be unsellable."
Fannie and Freddie officials said they believe the program will attract investors who want to keep the properties rented. "If we get a good renter and set the rental rate at a good market rate, then it really should be attractive to an investor," said Jason Allnutt, Fannie's vice president for credit-loss management.
And some property managers argue that it is better to have tenants in the homes than to leave them vacant. "Homes will not sit there and quietly be destroyed, even if the tenant's a little sloppy in their upkeep," said Betsy Morgan, who oversees residential-property management for Prudential Tropical Realty in Tampa, Fla.
The change should help renters such as Luis Cartagena, a 38-year-old electrician who received an eviction letter this month after his landlord was foreclosed on by Freddie Mac. Mr. Cartegena said he always paid his rent on time for the two-family home in New Haven, Conn. "I don't have any idea what I will do," said Mr. Cartagena, who said he hasn't been notified about Freddie's impending policy change.
Fannie and Freddie held 20% of all loans that were 90 days or more past due as of the third quarter of 2008.
JANUARY 30, 2009, 10:26 P.M. ET
Fannie, Freddie Criticized on Rental Policy
Some Real-Estate Agents Say Mortgage Giants' Failure to Evict Tenants Could Slow Housing Rebound
By NICK TIMIRAOS
Fannie Mae and Freddie Mac, currently the largest holders of U.S. home mortgages, are fast becoming big landlords. But some real estate agents say the firms' unwillingness to evict tenants from properties they inherit could slow the housing market's recovery.
Freddie Mac, bowing to pressure from affordable-housing advocates, said Friday it would let renters remain in homes lost to foreclosure. The mortgage-finance company will begin next month offering monthly leases to tenants, following the lead of Fannie Mae, which rolled out a similar policy earlier this month. Both companies said Friday they would halt tenant evictions in February.
The policies are an about-face from the two companies' previous practice when, like most lenders and mortgage companies, they routinely evicted tenants in homes that fell into foreclosure, even when residents were current on their rent.
Tenant advocates have called on private lenders to follow Fannie and Freddies' lead, noting that tenants have been swept up in the foreclosure crisis. Lenders should "not be kicking a tenant out in the middle of a recession who has upheld all the terms of their rental agreement," said Jim Carr, operating chief of the National Community Reinvestment Coalition. "It represents a really important and good-faith effort not to compound the misery of these families."
Fannie and Freddie's responsibity for running businesses sometimes is at odds with its mission of fostering home ownership and community stability. So while tenant groups have hailed the companies' moves, some critics contend that the plans, while perhaps providing a social good, don't make sound business sense.
Among the critics are real-estate agents, whom Fannie Mae will rely on to handle maintenance and rent collection for some of the properties. They say renting the homes could slow sales because homes don't sell as well with tenants living in them.
"Fannie Mae is in the business of financing homes and selling them, but now this change is going to result in properties probably remaining on the market," said Brett Barry, an agent with Realty Executives in Phoenix who sells properties that now include tenants eligible for a Fannie Mae lease. "Now," he added, "if someone calls me at 3 a.m. with a toilet malfunction or a roof leak, I'm responsible for handling that."
Fannie and Freddie will market the homes for sale while they are rented and leases will transfer to the buyers. Real-estate agents also say they are worried the policy will limit the pool of buyers to investors, and that it could lead rental prices to dictate sale prices and further erode values.
"If you've got a house worth $350,000 and rent it for $1,200, no investor is going to buy that," said David Peeples, a Tallahassee, Fla., real-estate agent. Because that monthly rent wouldn't cover the mortgage payments, he said, "The end result is that with a tenant, it's going to be unsellable."
Fannie and Freddie officials said they believe the program will attract investors who want to keep the properties rented. "If we get a good renter and set the rental rate at a good market rate, then it really should be attractive to an investor," said Jason Allnutt, Fannie's vice president for credit-loss management.
And some property managers argue that it is better to have tenants in the homes than to leave them vacant. "Homes will not sit there and quietly be destroyed, even if the tenant's a little sloppy in their upkeep," said Betsy Morgan, who oversees residential-property management for Prudential Tropical Realty in Tampa, Fla.
The change should help renters such as Luis Cartagena, a 38-year-old electrician who received an eviction letter this month after his landlord was foreclosed on by Freddie Mac. Mr. Cartegena said he always paid his rent on time for the two-family home in New Haven, Conn. "I don't have any idea what I will do," said Mr. Cartagena, who said he hasn't been notified about Freddie's impending policy change.
Fannie and Freddie held 20% of all loans that were 90 days or more past due as of the third quarter of 2008.
Many Say Goodbye to McMansions
REAL ESTATE
JANUARY 26, 2009, 11:09 P.M. ET
Many Say Goodbye to McMansions
By AMY HOAK
These days, a bigger home isn't always a better one: Recent research suggests that homes being built today are getting smaller.
The average size of homes started in the third quarter of 2008 was 2,438 square feet, down from 2,629 square feet in the second quarter, according to the U.S. Census Bureau. Similarly, the median size of homes started in the third quarter was 2,090, down from 2,291. The statistics confirm what the housing industry has suspected for a while.
"We've been hearing for a long time, 'Why is the home size not declining?' " said Gopal Ahluwalia, vice president of economic research for the National Association of Home Builders. He spoke about the trend at the International Builders' Show, held in Las Vegas last week. Anecdotally, he had heard smaller homes were being built as housing prices tumbled and the economy began to weaken. Still, "we never had data to back it up," he said.
Gayle Butler, editor-in-chief of Better Homes and Gardens, said that for many homeowners, it is not so much a matter of downsizing as "right-sizing," giving up big homes with unused space and buying a home that better fits their needs.
"Either by necessity or choice, they're willing to take a step back from the McMansions," she said at the Builders' Show. In fact, according to a survey conducted by the magazine, 32% of participants said they expected their new home to be either somewhat smaller or much smaller then the one they already live in, she said. The magazine's online study involved 733 potential new-home buyers.
Builders are responding to those consumer desires. According to the National Association of Home Builders, 88% of builders surveyed in January said they are building or planning to build a larger share of smaller homes. Eighty-nine percent said they're planning on building more lower-priced models.
As homes get smaller, home-owners are seeking to economize with the space they do have. Ms. Butler said she is seeing more interest in "Wii-sized spaces" -- family rooms that are flexible enough to accommodate a variety of activities, from video games to fitness systems. Outdoor kitchens and entertaining areas also continue to rise in popularity, she said.
JANUARY 26, 2009, 11:09 P.M. ET
Many Say Goodbye to McMansions
By AMY HOAK
These days, a bigger home isn't always a better one: Recent research suggests that homes being built today are getting smaller.
The average size of homes started in the third quarter of 2008 was 2,438 square feet, down from 2,629 square feet in the second quarter, according to the U.S. Census Bureau. Similarly, the median size of homes started in the third quarter was 2,090, down from 2,291. The statistics confirm what the housing industry has suspected for a while.
"We've been hearing for a long time, 'Why is the home size not declining?' " said Gopal Ahluwalia, vice president of economic research for the National Association of Home Builders. He spoke about the trend at the International Builders' Show, held in Las Vegas last week. Anecdotally, he had heard smaller homes were being built as housing prices tumbled and the economy began to weaken. Still, "we never had data to back it up," he said.
Gayle Butler, editor-in-chief of Better Homes and Gardens, said that for many homeowners, it is not so much a matter of downsizing as "right-sizing," giving up big homes with unused space and buying a home that better fits their needs.
"Either by necessity or choice, they're willing to take a step back from the McMansions," she said at the Builders' Show. In fact, according to a survey conducted by the magazine, 32% of participants said they expected their new home to be either somewhat smaller or much smaller then the one they already live in, she said. The magazine's online study involved 733 potential new-home buyers.
Builders are responding to those consumer desires. According to the National Association of Home Builders, 88% of builders surveyed in January said they are building or planning to build a larger share of smaller homes. Eighty-nine percent said they're planning on building more lower-priced models.
As homes get smaller, home-owners are seeking to economize with the space they do have. Ms. Butler said she is seeing more interest in "Wii-sized spaces" -- family rooms that are flexible enough to accommodate a variety of activities, from video games to fitness systems. Outdoor kitchens and entertaining areas also continue to rise in popularity, she said.
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