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Laura housing talk here Peter was reporting on this -- foreclosure plan -- modification mortgage plan not exactly working out as the administration -- Had drawn it up.
What does it mean for you especially if you may be in the market for foreclosed home are worried about foreclosure in your own a homer of the values of property in your area we have.
Home builder Kristen Bell joining us from Orlando today to begin that discussion -- good to see you thanks for coming on.
You know one of things we saw that it you know and we'll talk about this in a moment this is the risks.
Not -- what things we saw you put out as one of the were the risks for people that are thinking about buying foreclosed homes.
I think that's interest think.
But starting with what Peter was reporting on a moment ago.
This modification plan was supposed to help more than it has why isn't working.
You know it's complex it's cumbersome and I mean I think that's the bottom line an until we really fixes that issue away.
Give people losing their jobs that you you know as much as we can do it with helping homeowners stay in -- -- it's great.
But without a job and it's tough to pay anything much less a modified -- -- even a modified mortgage.
Any ideas on how to fix it -- better.
Well I think we need to stimulate business and we need to stimulate small business you know access it's it it's a tough place to be and -- you know play with without jobs people can't pay anything so.
You know we need to help people get back into you.
The workforce and you know we're at nine point 5% unemployment you know -- it's it's high right now until we fix that problem it's going to be tough you know.
Helping homeowners is great and giving incidents -- and -- -- some of the some money to help prop them up.
But unfortunately at some point.
They're gonna have to get back into the workforce and I think that's really where the bottom line as how to things look by the way down there where you are in Florida tennis center of the storm so to speak.
You know we kind of had been in the epicenter of this whole foreclosure and and mortgage crisis -- been.
It's been challenging mightn't we've been in business for fifty years my family's been in the building business -- and -- thousands of homes here and and I tell you it's been challenging we've never seen anything like this but.
You know we are seeing a bit of the perk up an activity and and we're still building houses which -- Definitely -- a lot of things we've seen or maybe two things we've seen over the last few days he's seen home price report -- home price report today in the home sales report yesterday both shows signs of I guess stabilization for lack of a better war -- -- they've you know.
The case -- was an awful crisis are going up at least month to month first time quite awhile and maybe we're seeing things.
Stabilize a little bit is that -- -- getting way too ahead of ourselves are -- seeing it as well.
Yeah well you know what we can we survive the recession now we've got -- -- the recovery.
You know it's gonna be slow going and we're we're seeing some signs of stabilization which is -- great and you know what -- that.
It's still a great time to buy a home there -- a lot of foreclosures.
On the market there you know real estate owned properties that can be good -- are some things we need to we need to think about -- home buyers that are that are looking at those types of properties.
But I tell you I do think things are stabilizing.
And you know what it's good news you know -- the recessions over let's.
Election let's get buying let's let's stay on the road to recovery.
Are one of those opportunities might be in buying a foreclosed home and be forever -- -- -- to discuss jewels brought it out talk about housing general take people's questions.
You talked about the risks of buying a foreclosed homes some people say -- here's some great opportunity to grab the houses and in -- you know obviously somebody else went through a tough time here but still from a buyer's perspective.
They have grab a house candidates it is selling way below what -- -- but what should you keep in mind when you do that.
There are lots of things you think about because sign up for closure is a complex issue and you know what there's a lot underneath the surface of the -- -- behind the walls he need to be aware of first and foremost need to look at the title of the -- you make sure that there -- any liens on the property you know did tax -- -- any other sorts of means you need to do really thorough.
Title search because you may be getting a great -- -- that home but.
-- fifty -- 100000 dollars of -- -- that's gonna.
Actually offset the savings that you had so that's one thing and you also need to really have somebody that knows what they're doing look at the structure of the home because.
You know what and wind and what looks like superficial defects could be a lot more complex -- could cost you tens of thousands of dollars to fix.
OK so cute do your -- like this than he did transaction that was really do but this may be even more self.
Than usual OK Kristin hang with us because we're gonna get broaden this out a little bit -- -- our good friend -- From the Babb group is also joining us Denny's and Irvine California always good to see Danny.
-- was talking about things may be stabilizing a little bit and Greta I letter into that -- deciding some of the data that we've had the last couple days.
But I think you think that's crazy right what do you say.
Yeah yeah -- -- unfortunately you know people are really focusing on the 11% increase in in sales -- well over may to June.
And and when we look at the bigger picture this is basically about 32000.
More homes than what was expected to have been sold but here's a -- First of all this is only a point 01%.
Change in the total amount of homes that are available on the market which exceeds thirty million.
And second of all this is actually the number of contracts written.
And it's completely bank independent and we know that one of the biggest holdup is in the financing area we don't really know how many these homes actually even going to close escrow.
Right that's a good point that we don't know if there if they're actually -- -- -- out okay -- one more thing on that Denny before go back to Chris and and and just talk about this general is that.
Quite as you say.
It's only a month to month numbered year over year high housing -- -- -- -- sales are still way down however one thing we did go back and look at is six months ago.
And for the first time that number if you compare it six months ago to now is starting to move up is not a good sign at least for getting there a little bit now.
Well you know some people can say yes I may have.
Unfortunately -- degree -- statistics on the little bit more cynical about this but you know we'll look at -- -- get this time last year based -- news -- season this season.
So this seems -- homes that are in NASCAR right now we're purchase and in the spring buying season kind compared to last year that the 21% increase over last year -- lending was also very tight so that's -- big warning -- to -- I'm looking for is price stability I wanna see.
Consecutive months of price stability we had a two straight months where prices were going out nationally -- last month actually dropped and that's that's that's me as a red flag not agreement.
Thought all right so refer indication -- numbers we got today on.
On prices we think Chris and we were talking before -- -- -- about stabilization she doesn't see it but you know can you received some of that or do you agree.
Well I can tell you -- region to region it's different and anywhere here in the South Bend and our numbers are actually our sales are actually down south.
I mean I yet you gotta be really careful with statistics say can be.
Really manipulated and they can be kind of deceptive sometimes so.
I mean I can tell you down here I mean I'm in the trenches and in the front lines I'm I'm seeing it -- today.
And if you let its a tough tough market out there and as a new home builder our challenge especially selling new -- as opposed to existing.
Is and it is appraisals you know it's tough because many appraisers and losing you know short sales and foreclosures it's it's tough to -- to get the comparable.
So yeah rain where where I am in the trenches things are down and -- Morally questioning it -- for you Kristen because it comes from somebody's walking down there in Orlando Joseph writes in that what specific.
Obstacles are buyers running into beat -- government related or otherwise.
In the market when they're out there trying to buy a home than what -- what obstacles that running into that are tripping them up.
Well it depends on if they're looking for foreclosure -- they're looking for a new home.
I mean it when it comes to the existing -- you gotta be really careful with warranties and -- got by these houses and is.
And each year many times don't know what the problems are behind the walls as I mentioned before so that's an issue.
Obviously that lending is a challenge I mean without great credit and and a significant down payment.
It's tough to get loans nowadays and in many times people.
Have to have little -- their credit especially in this economy so without a stable job and NN NN solid down payment it's it's tough to get a mortgage even if you you know even if you find a house that you like and obviously you know comparable send -- appraisals -- our real problems that.
-- -- -- that's the thing -- people a lot to grab some of these so low rates and get a mortgage and buy a house but.
As -- -- sometimes they're not being approved -- DC that financing environment turning around anytime soon or is it starting to turn around some areas now.
No I'm fortunate going the other way around in fact I was hearing how this -- we're looking at six months reserves in the banks are you putting your 20% down.
And in east that they still want you have six months' worth of payments from the bank announcing that go.
To twelve months reserves and perfect for some of the bigger banks that's a really big obstacle Rodney Leisle having -- 40% down payment.
Well he had that you -- -- -- lower house of -- I saw how -- cash for an immediate.
It doesn't really make sense in this market we also have banks that are incentivized.
-- -- modifications and get a 2000 dollar check from the government for doing so are getting some of the trial modification.
They're putting our efforts towards that rather than for small business lending and for new home lending which is -- really just -- it is gonna continue to hurt market.
All right so let's end this way with both -- you and I'm sure a lot of people watching some written in with these types of questions wanna know what they should do now by is not a time to buy what.
What advice would you give them if they are in the market for buying a house to anybody tell people come to you with that question.
Yeah I had a question every week and then it's really market dependent had to say you're in -- hard hit area like South Florida are Las Vegas bars -- something like that you want to make sure you're getting a killer deal I would not.
Said anything below -- up anything more than 20%.
Below the current value of whatever the home is that's alive for another 20% drop so be really careful about where your buying.
We are starting to see a transition of people moving from high tax states like California and New York.
Into areas like Florida and Nevada which actually might boost up some of their.
Sales so that may be -- look for the future I tell people go to -- boomers are moving too because several at least be some stability in the future which may not bode well for the Florida markets are what he's a Christian.
Well you know what -- it still is a good time device you have the cash and have the credit.
But I agree with -- angry with -- you know what you gotta you gotta find the right place in the right community.
Not only specifically state wise but you need to look at the -- community in the right area with in that state.
Look at the comparable you know look at what's happening around the communities look at the taxes I mean that's really going to be -- value as.
-- -- as always thank you very much -- a regular on the weekend here on Fox Business you can see here there from our studios and Irvine California and Kristen Bell.
From our -- fox Orlando affiliate in Florida Kristin thank you very much for coming on as well -- --
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