Michigan Court of Appeals ruling could halt some foreclosures

Michigan Court of Appeals ruling could halt some foreclosures

Strategic Defaulters - FICO Has Your Number

OK, so they don't have your actual (FICO Score) number, but they do have a profile of who is most likely to use strategic default as an exit strategy. You manage your credit better than the average consumer, have lower revolving balances and generally, you don't exceed your credit card balances.

Strategic default is generally accepted to mean default by a consumer that still has the ability to make payments. Often these folks are value-keyed, figuring that if they walk away from a home that isn't worth what they owe, perhaps they can also pick up another home at a cheaper price before the default impacts their credit.

If you are not facing an economic hardship, you will not be eligible for a short sale, which is the route many distressed homeowners first explore.  Since those considering a strategic default are not in a 'distressed' condition (other than overthinking the value of their homes against current market prices), strategic default often seems like a good idea to them. 

This 'profiling' could help servicers to reach those considering strategic default before they make that final decision. The analytics developed by FICO Labs indicate that the riskiest 20 percent of borrowers actually comprised 67 percent of consumers who later executed a strategic default. To me, that's an amazing number.

In this report from DSNews.com, Dr. Andrew Jennings, chief analytics officer at the Minneapolis-based FICO and head of FICO Labs said, "Strategic defaults are bad for lenders and investors, they're bad for the homeowners who elect to default and they're bad for neighborhoods and cities. Preventing them is in the interests of everyone involved."

You can read the entire article at DSNews.com by using this link.

Great Livingston County Deals - Part II



Hump Day Strikes Again!

 The last 'deals' post seems to be getting a fair amount of traffic, so I thought I'd follow up with more - this time for a Wednesday. 

'Hump' day is the best 'deal' day out there - middle of the week, slow for taverns and restaurants - and these are just two that popped into my head. We all need a little relaxation in the middle of a busy week, don't we?

In Brighton, try Stout Irish Pub on Grand River.  It's $3.50 burger day all day, and these are good burgers.  Happy Hour is pretty good all week long, too.  Nice selection of draft beers, big screen TV's for the sports fans and a nice setting.  Sign up for their customer loyalty card (regulars call it the 'green card') and build credits for future nights out. There's a municipal parking lot right behind the place, but it's sometimes pretty crowded. You may have better luck parking on East Main St.

Still in Brighton, but down Main St at the corner of First is StoneFire Bistro. Their Happy Hour features $2 pint draft beers and $3 glasses of house wines.  Those are very good prices, although I would forgoe the bud and bud light for a more upscale draft beer. Heck, they're ALL $2/pint on Wednesday. Get the good stuff!  Stick around towards the evening and it's Rib Night at StoneFire.

Have a favorite Wednesday deal to share? Post it as a comment.

Two Livingston County Cities Get Tree City Designation for 2010

The Arbor Day Foundation recently released its list of 2010 Tree City Awards. Howell, Michigan was named a Tree City for the 23rd straight year, and Brighton, Michigan received that honor for the ninth year in a row. Congratulations Howell and Brighton!

Four standards must be attained to achieve this recognition, which is open to communities of any size. There must be a Tree Board or Department, a tree care ordinance, an Arbor Day observance and proclamation, and a community forestry program with an annual budget of at least $2 per capita.

The Tree City USA  program is sponsored by the Arbor Day Foundation and is run in cooperation with the USDA Forest Service and the National Association of State Foresters. National Arbor Day is celebrated on the last Friday of April, this year that's April 29th.
For a complete list of Michigan municipalities that won this award, visit the Michigan DNR website.

Great Livingston County Deals

I've been pretty much just posting that dull, dry Real Estate stuff lately, so I though that it would be nice to 'change it up' a bit.  Here's the first in a series of posts about some great restaurants and watering holes in Livingston County. (Disclaimer: information is true at the time of the posting, may not last forever. What does?)

Since today is Monday, I'll start with a couple of Monday deals.  If you're in Brighton, it's hard to beat the Monday half off burgers at BoomTown Kitchen + Tap.  Great burgers (just like the rest of the menu), very good value.  Monday is also half off Michigan microbrew day at the BTK.  They have a great selection of Michigan microbrews and most pints will be just $2.50 each. The larger sized Michigan microbrews (22 oz.) are also half priced on Mondays. The burger deal is all day, the microbrew discount is Happy Hour only (3-6pm).  Remember, microbrews are a little stronger than the average beer, so don't overindulge or have a designated driver.



photo-Bob Smith

 Up in the Howell area, Los Tres Amigos, at 4184 East Grand River near Latson Rd, has $1 taco day on Mondays.  Dine in or carry out, doesn't matter.  Hard shelled beef tacos are a buck each.  And they're really good!  Domestic drafts are also $1 each on Monday, so sit in the bar, order a couple of tacos with a beer, then order a few more tacos to take home to the family.  Or bring them along and make a family outing of it.  If you're in the mood for a Margarita, it's only $2.50 on Monday and Tuesday.

Have another great area Monday deal? Pass it along in the form of a comment.  We'd love to be in the know.

HOME SALES INCREASE PREDICTED

This past week, Freddie Mac predicted that 2011 will see a 5% increase in home sales over 2010 in its April U.S. Economic Housing Market Outlook. Wrapped within prose about spring arriving and cherry blossoms blooming, the basis for this optimistic forecast is the fact that unemployment declined for the 4th straight month, and that real estate employment was up 10,000 jobs since November 2010.

Housing starts, which had a very small increase in 2010 levels when compared to 2009, are predicted to slowly gain ground throughout 2011, with a larger jump in 2012.

Buyers opting for a 15 year mortgage vs. a 30 year mortgage are able to save about 0.75% on their interest rate, according to bankrate.com, but most homebuyers still opt for the longer 30 year instrument.

A homebuyer with a $165,000 mortgage and a 30 yr. term at 4.85% will make total payments of $313,448.95 over the life of the loan. The same mortgage amount with a 15 year term and an interest rate of 4.10% will pay a total of $221,178.62, a savings of over $110,000. Both presume no additional payments and all payments made on time.

It remains to be seen whether this forecast will pan out, but in my market much tighter lender requirements combined with lower appraisal values and more underwriting requirements are making it tough for many first-time homebuyers to successfully get through the home buying process.

Quicker Lender Response To Short Sales Near?

Reps. Tom Rooney (R-Florida) and Robert Andrews (D-New Jersey) have introduced a bill that would give lenders a 45 day deadline in which to render a decision on a short sale offer, according to an article published today by DS News. The National Association of Realtors (NAR) is supporting this effort.


Nationally, short sales account for 13% of recent home sales. The Prompt Decision for Qualification for Short Sale Act of 2011 still has not been referred to a committee. Hopefully that will happen promptly (pun intended) since short sales are often the brightest ray of hope to homeowners that are facing foreclosure.

DS News is a source of breaking news and up-to-date information for the default servicing professional.

You can read the entire article here.

Livingston County Realtors To Conduct Food Drive - May 7th!

On Saturday, May 7, 2011, the Livingston County Association of Realtors will again have a food drive for Gleaners Community Food Bank. In 2010 we hit 39,000 meals collected! Our goal this year is 40,000 meals.

Drop off points include the Brighton Millpond and the Howell Gazebo, next to the Historic County Courthouse. In Brighton, you can pull up on Main Street and volunteers will be there to take your food item donations between 9am and 2pm.

Suggested items are canned meals, PB&J, macaroni & cheese, cereal, spaghetti and meat sauce, toiletries and laundry detergent. No products in glass containers, please.

You can also make monetary donations. With the food bank's buying power, $1 can actually provide 3 meals! It always makes ME feel better to donate food items, but money feeds more people.

Most local Real Estate offices will be collection points, and on the day of the food drive many local grocery stores will have volunteers stationed to take donations, too.

If you can't make it on the 7th, consider dropping off donations at my office at anytime before that date, or call me. I may be able to swing by between appointments and pick it up. Preview Properties and I will be happy to get the food to the drive for you.

Selling You Home In Today's Market - Free Seminar

Should you rent your home or sell it? Or work with your bank to modify your loan? What is your house worth?

How do you find a buyer for your home? Can you no longer afford to make your monthly mortgage payments? Do you owe more on your mortgage than your house is worth?

Have you received a notice of default on your home?

This seminar is free and open to the public. We'll discuss the issues above and answer any you have regarding the current local residential real estate market.

Feel free to invite your friends to this event.  Call  or email me  for reservations.
Hope to see you there!