Housing News

City nears seizure of underwater mortgages, invoking eminent domain

The City of Richmond gets a small victory on the path to making real the plan to seize underwater homes under eminent domain.

Published

7 years ago

September 23, 2013

Tara Steele

california texas

Using eminent domain on underwater loans

The city of Richmond, California has seen a major advancement in their plan to invoke eminent domain on underwater homes as federal district judge, Charles Breyer, dismissed a lawsuit that sought to block the plan. The lawsuit was filed by Wells Fargo who is the trustee for several of the investment trusts that may be seized by the city, wherein Richmond would buy qualifying mortgages at the current market values and modify the loans so homeowners can afford to keep up with payments and avoid foreclosure, which the city says damages property values.

Related: Critics warn against city’s plan to use eminent domain

Critics note that this could infinitely damage markets that adopt the plan, as banks will no longer issue mortgages in areas where eminent domain is invoked, raising the costs of borrowing for all buyers. Additionally, critics say this plan makes it extremely difficult to sell mortgage bonds to risk-averse investors who will be charging higher rates on mortgages.

Further, critics question the worthiness of this goodwill gesture, as the mortgages targeted average balances of $370,000, with some homes originally purchased for over $1 million.

Supporters note that only 624 homes are eligible under the criteria which include the loan be privately held and not backed by any government agencies.

Other cities considering joining

Richmond is now seeking partner cities to help share the costs, and other areas are actually considering the move, and not just smaller areas like Vallejo, California, but Seattle. The next challenge is getting the plan approved by city council who has to authorize the seizures. In California, a super majority of five out of seven votes is required for this type of proposal, and the final step is a court granting final approval of the eminent domain.

The criticism against this move is endless, from questions around constitutionality to the private company that stands to make tremendous financial gain from this eminent domain plan. While one judge has dismissed one case pertaining to this proposal, there remains a long road ahead, given that other cities are actually taking this plan seriously.

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

Published

5 years ago

May 29, 2015

Lani Rosales, COO + News Director

Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

Published

5 years ago

March 2, 2015

Dawn Brotherton, Staff Writer

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

Published

5 years ago

February 25, 2015

Lani Rosales, COO + News Director

Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.