AOL Real Estate - Blog http://realestate.aol.com/blog AOL Real Estate - Blog http://realestate.aol.com/blog/media/feedlogo.gif AOL Real Estate - Blog http://realestate.aol.com/blog en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/U.S. Homeownership Rate Falls to 17-Year Low As More Renthttp://realestate.aol.com/blog/2013/05/01/homeownership-rate-2013/http://realestate.aol.com/blog/2013/05/01/homeownership-rate-2013/http://realestate.aol.com/blog/2013/05/01/homeownership-rate-2013/#commentsFiled under:

homeownership rateBy Lucia Mutikani

Homeownership in the United States hit a 17-year low in the first quarter as more Americans opted to rent, continuing a trend exacerbated by the collapse of the housing bubble. The seasonally adjusted homeownership rate slipped to 65.2 percent, the lowest since the fourth quarter of 1995, the Commerce Department said on Tuesday. The rate, which peaked at 69.4 percent in 2004, was 65.3 percent in the fourth quarter. Economists said homeownership could decline even further given that about 10.4 million homeowners owe more on their mortgages than their homes are worth and credit is still tight.

"It's probably going to drop another point or two over the next three years because there are still a lot of foreclosures. More people are going to become renters going forward," said Patrick Newport, an economist at IHS Global Insight in Lexington, Mass. The 2007-2009 recession, sparked by the collapse of the U.S. housing market, has left the economy with deep scars that will take long to heal. Though the recovery is now in its fourth year, it has been too sluggish to foster faster job growth.

The unemployment rate is at an uncomfortably high 7.6 percent and about 21.6 million people are either unemployed, working only part-time although wanting full-time work, or want a job but have given up the search. With so much slack in the labor market, income growth has been sluggish, contributing to a weak underlying backdrop for home purchase demand. The rental market has tightened as more people have given up on the Americans dream of owning a home.

In the first quarter, the residential rental vacancy rate eased to 8.6 percent from 8.7 percent in the last three months of 2012. It has dropped from a peak of 11.1 percent in 2009. The low ownership rate provides fresh evidence that a decisive turnaround in home sales has been driven by investors, who are snapping up properties to rent out.

See more on the homeownership rate:
Millennials Expected to Dominate Housing Market by 2020
Homeownership Still a Dream of Most Americans, Survey Says
Why Falling Homeownership May Be a Good Thing

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What Works Now - Rent Vs. Buy

 

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]]>homeownership raterentersrenters+rulesrentingReuters2013-05-01T16:30:00 00:00U.S. Pending Home Sales Rise In March, NAR Sayshttp://realestate.aol.com/blog/2013/04/29/pending-home-sales-march/http://realestate.aol.com/blog/2013/04/29/pending-home-sales-march/http://realestate.aol.com/blog/2013/04/29/pending-home-sales-march/#commentsFiled under: ,,

pending home sales rise in March

WASHINGTON -- Contracts to purchase previously owned U.S. homes rose in March, as the housing market continues to accelerate this year. The National Association of Realtors said Monday that its Pending Sales Index, based on contracts signed last month, rose 1.5 percent to 105.7. Activity in recent months has shown modest improvements, and contracts last month reached the highest level since April 2010.

Economists polled by Reuters had expected signed contracts, which become sales after a month or two, to rise 1.0 percent after a previously reported 0.4 percent slip in February. The housing upturn is expected to add support to the economy this year although there have been signs of weakness lately.

The inventory of homes for sale remains low, leading to a rise in home prices in most markets. The Realtors group said the market appears to be leveling off due to the supply shortage which has pushed up home values, putting a solid foundation under the housing recovery. "Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply. Little movement is expected in near-term sale closings, but they should edge up modestly as the year progresses," said NAR chief economist Lawrence Yun in a statement.

Pending home sales were up 7.0 percent compared to March of 2012.

(Reporting by Margaret Chadbourn; editing by James Dalgleish.)

Stocks Turn Higher on Pending Home Sales



See more about pending home sales:
Spring Homebuying 'Stuck' Under Tight Inventory, NAR Says
Cities Where Housing Bubbles Could Be Starting to Form
The Home Bidding Wars Are Back!

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]]>housing marketnational association of realtorspending home salespending home sales march 2013sellers marketReuters2013-04-29T10:30:00 00:00Homeowners to Get Foreclosure Settlement Payments Starting Fridayhttp://realestate.aol.com/blog/2013/04/09/foreclosure-settlement-payments-homeowners/http://realestate.aol.com/blog/2013/04/09/foreclosure-settlement-payments-homeowners/http://realestate.aol.com/blog/2013/04/09/foreclosure-settlement-payments-homeowners/#commentsFiled under:

Bank of AmericaBy Aruna Viswanatha

Borrowers whose homes were in foreclosure in 2009 or 2010 can expect to receive between $300 and $125,000 under settlements reached between top banks and regulators earlier this year. The payments will begin going out on Friday, the Federal Reserve and the Office of the Comptroller of the Currency said on Tuesday. The agreements with 13 mortgage servicers, including units of Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, provided $3.6 billion in cash payments to borrowers who were at any stage of the foreclosure process at the height of the housing crisis.

Although regulators entered into the settlements in January, at the time they only provided estimates of what borrowers might expect to receive. On Tuesday the agencies said 1,082 borrowers who were active duty members of the military had foreclosures completed on their homes and would receive $125,000 each. About 50 borrowers who were not in default but had foreclosures completed on their homes will also receive the top $125,000 payout.

The largest numbers of borrowers, between 300,000 and 750,000, will receive between $300 and $600. Borrowers whose servicers did not engage with them in assessing loan modification options will receive $600 if they requested a review, or $300 if they did not, for example. Some 4.2 million borrowers are eligible to receive payments, and checks to 1.4 million of them will be sent out on Friday, regulators said.

See more on the foreclosure settlement:
Robo-Signing Scandal: Hundreds More Military Members Were Victims
Do Banks or Homeowners Win in Mortgage Settlement?
Foreclosure Settlement Money: Are States Using It the Right Way?

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Banks Not Complying With Mortgage Settlement

 

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]]>foreclosureforeclosure settlementhomeowner payments foreclosure settlementmortgage settlementReuters2013-04-09T11:00:00 00:00New Home Sales Took a Tumble in Februaryhttp://realestate.aol.com/blog/2013/03/26/new-home-sales-fell-february/http://realestate.aol.com/blog/2013/03/26/new-home-sales-fell-february/http://realestate.aol.com/blog/2013/03/26/new-home-sales-fell-february/#commentsFiled under: ,,

new home sales: construction workers building a house

Sales of new U.S. single-family homes fell more than expected in February after hefty gains the previous month, but steady gains in home prices suggested the housing market recovery remains intact. The Commerce Department said on Tuesday sales dropped 4.6 percent to a seasonally adjusted annual rate of 411,000 units. Last month's decline followed a 13.1 percent jump in January.

Though January's sales pace was revised down to 431,000 units, it was still the highest level since September 2008. Economists polled by Reuters had expected sales to fall to 422,000-unit rate last month. Compared with February 2012, sales were up 12.3 percent, indicating the housing market recovery was on course. Sales are being hampered by a lack of supply of homes on the market in some major parts of the country.

While the inventory of new homes on the market rose 1.3 percent to 152,000 units, it was not far from record lows. According to recent government data, groundbreaking for single-family homes intended for sale continues to lag sales. Economists at Moody's Analytics warn that builders could struggle to keep up with demand, which could cause the new home market recovery to be uneven over the next several months.

The home resales market is also experiencing lean inventories. The recovery in the sector is being supported by record-low mortgage rates, which have been held down by the Federal Reserve's very accommodative monetary policy stance. New homes account for about 8 percent of the overall market.

At February's sales pace it would take 4.4 months to clear the houses on the market, up from 4.2 months in December. A supply of 6.0 months is normally considered as a healthy balance between supply and demand. The low months' supply should drive up new home prices.

The median sales price for a new home increased 3.0 percent to $246,800 and was up 2.9 percent from a year ago. Sales last month were dragged down by a 13.3 percent plunge in the Northeast and a 9.7 percent fall in the South. Sales only rose in the Midwest, touching the highest level since December 2011.

Reporting by Lucia Mutikani; editing by Neil Stempleman.


Pros and Cons of Buying a New Construction Home



See also:
6 Cost-Saving Reasons to Buy New Construction
U.S. New-Home Sales Jump to Highest Since July 2008

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]]>commerce departmentfebruaryhousing market recoveryNew Home Salesreal estate marketSingle-family home salessingle-family homesReuters2013-03-26T10:35:00 00:00Home Prices Post Best Yearly Increase Since 2006http://realestate.aol.com/blog/2013/03/26/home-prices-case-shiller-index/http://realestate.aol.com/blog/2013/03/26/home-prices-case-shiller-index/http://realestate.aol.com/blog/2013/03/26/home-prices-case-shiller-index/#commentsFiled under: ,

Home prices rise: home for sale sign

U.S. single-family home prices rose in January, starting the year with the biggest annual increase in 6½ years in a fresh sign that the housing market recovery remains on track, a closely watched survey showed on Tuesday. The S&P/Case Shiller composite index of 20 metropolitan areas gained 1 percent month-on-month in January on a seasonally adjusted basis, topping expectations for 0.9 percent. Prices have been gaining since last February. On a non-seasonally adjusted basis, prices rose 0.1 percent.

Prices in the 20 cities climbed 8.1 percent year-over-year, also beating expectations for 7.9 percent. It was the biggest yearly increase since June 2006, when housing prices were on their way down as the market was starting to collapse. Average home prices were back to their autumn 2003 levels, though that still leaves them down about 30 percent from the 2006 peak.

All of the 20 cities showed gains on a yearly basis, with New York rising for the first time in over two years. Phoenix continued the strong rebound seen last year, rising 23.2 percent from the year before. Eight cities racked up double-digit gains, including San Francisco, up 17.5 percent, and Las Vegas, up 15.3 percent.

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The dollar slightly pared losses against the euro shortly after the data, while Treasures prices held steady at lower levels. U.S. stock index futures saw little reaction and Wall Street was poised to open higher. The housing market got back on its feet last year as prices rose, inventories tightened and sales improved. Stimulus efforts from the Federal Reserve are also keeping mortgage rates at historically low levels, which has helped spur demand. That momentum carried into 2013 and data last week showed home resales hit a three-year high in February.

Reporting by Leah Schnurr; editing by W Simon.

See also:
Buying a Home 44% Cheaper Than Renting, Despite Rising Prices
Another Housing Bubble? Recovery Shows Dangerous Signs, Reports Say
3 Reasons Your Home's Value Is Rising

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How to Evaluate a House's Asking Price

 

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]]>Case ShillerCase Shiller indexCase-ShillerCase-Shiller Indexhome priceshome prices risehousing markethousing market recoverysp case-shiller indexReuters2013-03-26T10:00:00 00:00U.S. Watchdog: Fannie Mae, Freddie Mac to Repay U.S. Soonerhttp://realestate.aol.com/blog/2013/03/20/fannie-mae-freddie-repay-bailout/http://realestate.aol.com/blog/2013/03/20/fannie-mae-freddie-repay-bailout/http://realestate.aol.com/blog/2013/03/20/fannie-mae-freddie-repay-bailout/#commentsFiled under:

Freddie Mac
Getty Images
WASHINGTON - Revamped terms of Fannie Mae and Freddie Mac's taxpayer-funded bailout that went into effect this year will allow the mortgage finance firms to repay the U.S. Treasury sooner than would have otherwise been the case, a federal watchdog said on Wednesday.

Fannie Mae and Freddie Mac were seized by the government at the height of the financial crisis in 2008 as mortgage losses threatened their solvency. Since then, they have drawn about $188 billion in taxpayer funds to stay afloat, while paying about $58 billion to the Treasury in dividends.

The two companies have now returned to profitability, and under the new terms, their earnings are swept into the Treasury as a dividend payment for the government's stake in the firms. If they are not profitable, no sweep is made.

Previously, the companies, which buy mortgages from lenders and repackage them as securities for investors, were required to make a 10 percent dividend payment even if they had a loss. At times, they had to borrow from the Treasury just to make the payment. Now, they simply will not be able to retain any profits.

"Ending the circularity of draws from Treasury to pay dividends will prevent the erosion of Treasury's commitment level," the Federal Housing Finance Agency's Inspector General said in a report.

"The change in the dividend structure also will affect quarterly payments to Treasury, potentially resulting in the enterprises returning more money to federal taxpayers sooner."

The two so-called government-sponsored enterprises, or GSEs, will also see changes in quarterly payments to Treasury under an accounting method where they start recording potential tax credits, known as deferred tax assets, as part of their net worth, the report concluded.
i dont
The new bailout terms, which were announced in August, were intended to move up plans to shut the companies down, but they do little to address how that might be achieved or how the government's footprint in the mortgage finance market might shrink. Fannie Mae, Freddie Mac and the Federal Housing Administration finance nine out of every ten new home loans.

Fannie Mae has already raised the possibility that it could soon be required to send about $61.5 billion to the U.S. Treasury if it begins to account for deferred tax assets. The company has delayed filing its earnings report for the fourth quarter to further study the accounting issue, but said it expects to post a significant profit.

"Indeed, because of accounting treatment, sustained profitability of the (GSEs) could result in a one-time large dividend payments to Treasury from each," the report stated.

Freddie Mac has said that in future periods it will assess the need for a reduction of its deferred tax asset valuation allowances, which could have a material effect on its financial position. The company, in its annual report, said that current conditions didn't require it to reverse any of its $31.7 billion in deferred tax assets as of the end of 2012.

 

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]]>bailoutfannie maeFannie mae bailoutfreddie macfreddie mac bailoutGMACGMAC MortgageU.S. TreasuryReuters2013-03-20T11:00:00 00:00Convent of Mater Ecclesiae: Pope Benedict's Home After Stepping Down (VIDEO)http://realestate.aol.com/blog/2013/02/13/mater-ecclesiae-pope-benedict-home-after-vatican/http://realestate.aol.com/blog/2013/02/13/mater-ecclesiae-pope-benedict-home-after-vatican/http://realestate.aol.com/blog/2013/02/13/mater-ecclesiae-pope-benedict-home-after-vatican/#commentsFiled under: ,



Pope Benedict may be retreating into a life of prayer, but the first pontiff to retire since the Middle Ages will -- physically at least -- remain at the very heart of the Vatican. The convent of Mater Ecclesiae (Mother of the Church) is being renovated, and, following Benedict's sudden resignation, will offer him a substantial four-story modern home. It comes complete with contemporary chapel, garden and a roof terrace looking out from a rise dominated by the Holy See's TV transmission tower.

Convent of Mater EcclesiaeThe 20-year-old gated compound could hardly be more central to the 100-acre Vatican City, the microstate inside central Rome where Benedict will remain head of state until Feb. 28. It lies about 200 yards to the rear of St. Peter's Basilica, where his successor may be consecrated next month, in time for Easter. Once renovation work is complete at Mater Ecclesiae, founded in 1994 as a convent for a succession of female monastic orders by Benedict's predecessor, John Paul II, the new pensioner will be able to move in. The nuns, who occupied up to 12 cells in the upper floors of the building, have moved out. Who else will live in the compound to serve the former pope is unclear.

Italian newspaper Corriere della Sera said that the refurbishment had begun in November -- at a time when, it seems, few if anyone in the Vatican had an inkling of what was on Benedict's mind. French journalist Charles de Pechpeyrou, who recently visited the building, called it simple and uncluttered, secluded within the Vatican gardens but offering sweeping vistas. From outside the chapel, he said, "one gets a spectacular view over the apse of St. Peter's Basilica, below, over the city of Rome, and on the horizon, to the sometimes snow-capped peaks of the Apennines -- in short, a landscape which surely cannot fail to remind the pope of his native Bavaria."

The gardens, though, offer a haven of only mildly polluted tranquility, where Benedict might encounter his successor strolling the neat lawns, among the lofty palms and vibrant flower beds, where fountains murmur softly in the background. Opting for the convent, Vatican spokesman Father Federico Lombardi said, was the outgoing pontiff's personal choice. Having passed it daily while walking in prayer, Benedict had several times visited the nuns. The location clearly appealed to him.

See also:
A Year of 'Inside Look': Our Favorite Episodes
'World's Tallest Treehouse' Grew From a Divine Vision

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]]>convent of Mater Ecclesiae.Mater EcclesiaePope BenedictPope Benedict homePope Benedict home after VaticanPope Benedict Mater EcclesiaePope Benedict resignationPope Benedict XVIVaticanReuters2013-02-13T11:26:00 00:00NYC Marriott Marquis Deal Could Cost City $345 Millionhttp://realestate.aol.com/blog/2013/02/12/nyc-marriott-marquis-deal-could-cost-city-345-million/http://realestate.aol.com/blog/2013/02/12/nyc-marriott-marquis-deal-could-cost-city-345-million/http://realestate.aol.com/blog/2013/02/12/nyc-marriott-marquis-deal-could-cost-city-345-million/#commentsFiled under:



New York City's chief financial officer said on Tuesday the city stands to lose as much as $345 million because of a past sweetheart deal, uncovered during an audit, with the Marriott Marquis hotel in the heart of Times Square. Marriott in 1998 renegotiated its lease with the city, shortening it by 40 years, reducing the rent, and giving the hotel the option to buy the property for $20 million when the lease expires in 2017.

That would enable the Marriott to buy the Times Square property for about $173 million less than the prime real estate is worth today, said New York City Comptroller John Liu, calling the deal "disgraceful", "wasteful" and "lopsided." The city is also losing nearly $172 million in reduced rent because of the "secret" agreement, struck during former Mayor Rudy Giuliani's administration, with the city's economic development agency, Liu said.

"I don't begrudge the Marriott. They got themselves a great deal," Liu said at a press conference in front of the hotel. Instead, Liu, a Democrat and possible mayoral candidate in November, faults the New York City Economic Development Corp. Liu has audited the EDC before and has long said the agency wields too much power. The agency awards city funds and tax breaks to promote economic development under a nearly $1 billion contract with the city, for which it hasn't been held accountable, he said.

Liu's audit "fails to measure the significant impact the Marriott Marquis has had on the Times Square area and New York City overall," EDC spokesman Patrick Muncie said in a statement. The hotel has provided more than 1,500 jobs and "hundreds of millions in tax dollars" and "played a critical role in the area's revitalization," it said.

Host Hotels and Resorts, owner of the New York Marriott Marquis, said Liu's office misunderstood the deal and that his audit "is wrong on all counts." "The hotel has paid an estimated $1 billion to the City and State in rent, taxes and acquisition costs since the project began, including every penny owed under its ground lease," the statement said.

Liu's audit found that the Marriott had not kept all of its financial records for the past six years - an alleged violation of its lease agreement with the city. Liu called on Mayor Michael Bloomberg's administration to use that supposed contract breach as an opening to renegotiate the lease and make the terms more favorable to the city. If not, the city could find a different tenant, Liu said.

The Marriott's original lease was signed in 1982, but it asked to renegotiate in 1998, Liu said. He accused the EDC of breaching a fiduciary obligation to ensure that the revised lease was in the best interest of city taxpayers. Liu also said the Marriott owes the city $3.6 million of interest on unpaid rent.

 

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]]>audit of Marriott MarquisMarriott auditMarriott MarquisMarriott Marquis Times SquareNYC Marriott MarquisNYC Marriott Marquis dealNYC Marriott Marquis Deal could cost cityReuters2013-02-12T23:45:00 00:00Walmart Mortgages Would Appeal to 1 in 3 U.S. Consumershttp://realestate.aol.com/blog/2012/12/03/walmart-paypal-mortgages-us-consumers/http://realestate.aol.com/blog/2012/12/03/walmart-paypal-mortgages-us-consumers/http://realestate.aol.com/blog/2012/12/03/walmart-paypal-mortgages-us-consumers/#commentsFiled under: ,

A mortgage from Walmart might have appeal to consumers.One in three U.S. consumers would consider a mortgage from retailer Walmart and almost half would consider one from online payment provider PayPal, according to a financial services study released on Monday.

The results might be especially disconcerting for banks because the two companies don't even offer mortgages.

The study shows that consumers are willing to try alternative lenders as borrowers focus on price, customer service and trust in their provider when selecting a mortgage, said Doug Hautop, lending practice lead at the Carlisle & Gallagher Consulting Group, which conducted the survey.

"There is a real threat from new entrants," Hautop said.

The study's results were based on online responses from 618 U.S. consumers in September.

Non-bank mortgage companies such as Quicken Loans and Nationstar Mortgage Holdings Inc. have been gaining market share as some large banks, such as Bank of America Corp., pull back in a business that burned them during the financial crisis.

Carlisle & Gallagher, based in Charlotte, N.C., provides consulting services to five of the top eight U.S. mortgage originators, Hautop said.

A Walmart Stores Inc. spokeswoman declined to comment on the survey. The retailer provides small business loans at its Sam's Club stores, but doesn't offer mortgages.

A spokesman for PayPal Inc., a subsidiary of online auction site eBay Inc., said it offers credit lines for customer purchases, but hasn't announced plans to move into the mortgage business.

Basic Banking In Style

It's not unheard of, though, for retailers to enter the mortgage business. In late 2011, warehouse retailer Costco Wholesale Corp. began offering home loans online through select lenders. The company doesn't disclose loan volume, but the service has gone well, said Jay Smith, Costco's director of financial services.

"We have tried to make it a service where members see significant value on rates and fees," Smith said.

While the Carlisle & Gallagher survey found that 80 percent of U.S. consumers would consider a mortgage from a non-bank, there was a bright spot for traditional banks. Seventy percent of respondents said that they would prefer to have their mortgage with one of their main banks, although only 39 percent currently do so.

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Two-thirds of respondents said the high cost of getting a loan was the most painful aspect of the mortgage application process, followed by slow execution (56 percent) and poor communication with the lender (32 percent).

"Banks have a captive audience, and have folks who are willing and wanting to do business with them," Hautop said. "It means it's time to go back to the basics for our banks."

In the past year, banks, including Wells Fargo & Co and JPMorgan Chase & Co, have benefited from surging consumer demand to refinance their mortgages at low interest rates. But in the coming year, refinancings are forecast to decline, so banks will need to focus more on serving customers taking out loans to purchase homes, Hautop said.

See also:
Mortgage Interest Tax Deduction Battle Brews in Washington as 'Fiscal Cliff' Looms
Buy That Vacant Foreclosure Next Door? Not So Fast!
For First-Time Homebuyers, It's Still a Tough Market

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]]>Carlisle Gallagher Consulting Groupmortgagesnonbank mortgagepaypalwal-martwalmartwalmart mortgagesReuters2012-12-03T13:14:00 00:00Mortgage Applications Jump as Low Rates Spur Refinancing Demandhttp://realestate.aol.com/blog/2012/10/03/us-mortgage-applications-jump-as-low-rates-spur-refinancing-dema/http://realestate.aol.com/blog/2012/10/03/us-mortgage-applications-jump-as-low-rates-spur-refinancing-dema/http://realestate.aol.com/blog/2012/10/03/us-mortgage-applications-jump-as-low-rates-spur-refinancing-dema/#commentsApplications for U.S. home mortgages surged last week as demand for refinancing rose to the highest level in more than three years, driven by a drop in interest rates to yet another record low, data from an industry group showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, jumped 16.6 percent in the week ended Sept 28.

The index of refinancing applications surged 19.6 percent, hitting the highest level since April 2009.

The gauge of loan requests for home purchases - a leading indicator of home sales - also rose, though not as strongly, gaining 3.9 percent.

The stronger demand came as mortgage rates hit fresh lows in the wake of the Federal Reserve's latest aggressive program to boost the economy.

In a program known as quantitative easing, or QE3, the Fed said in September that it will buy $40 billion in mortgage-backed securities a month until the job market improves.

"Financial markets continue to adjust to QE3, as the ongoing presence of the Federal Reserve as a significant buyer of mortgage-backed securities applies downward pressure on rates," Mike Fratantoni, MBA's vice president of research and economics, said in a statement.

Fixed 30-year mortgage rates dropped 10 basis points to average 3.53 percent, down from 3.63 percent the week before.

The refinance share of total mortgage activity gained to 83 percent of applications from 81 percent the week before.

The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

See also:
Fannie Mae Ranks Banks in 'Robo-Signing' Settlement as Top Servicers
Mortgage Fraud: California, New York Rank Highest, Report Says
Buying New Construction Homes, the Pros and Cons [Video]

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]]>Federal Reservehome mortgageshome purchase demandinterest ratesMortgage Bankers Associationmortgage ratesQE3quantitative easingrefinancingrefinancing applicationsReuters2012-10-03T17:30:00 00:00'Sharpie Parties' Wreak Havoc on Foreclosed Homeshttp://realestate.aol.com/blog/2012/08/17/sharpie-parties-wreak-havoc-on-foreclosed-homes/http://realestate.aol.com/blog/2012/08/17/sharpie-parties-wreak-havoc-on-foreclosed-homes/http://realestate.aol.com/blog/2012/08/17/sharpie-parties-wreak-havoc-on-foreclosed-homes/#comments

By Tim Reid

In the age of Facebook and Twitter, a new crime has hit America: "Sharpie parties," gatherings of party revelers armed with "Sharpie" magic markers and lured by social media invitations to wreak havoc on foreclosed homes.

Five years into the U.S. foreclosure crisis, Sharpie parties are a new form of blight on the landscape of boarded-up homes, brown lawns and abandoned streets. They are also the latest iteration of collective home-trashing spurred by social media.

At least six Sharpie parties were reported in one California county in recent months, where invitations posted online drew scores to foreclosed homes.

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The partygoers are handed Sharpie pens on arrival by their hosts and urged to graffiti the walls - a destructive binge that often prompts other acts of vandalism including smashing holes in walls and doors, flooding bathrooms and ripping up floors.

The California spree follows a similar outbreak earlier this year, when teenagers wrecked homes in states including Texas, Florida and Utah after seeing the movie Project X. The film features a house wrecking party sparked by online invitations.

Anna Hazel, an investigator in the Merced district attorney's office in central California, said the use of social media is a very effective way for partygoers to find the address and to track the progress of the party.

It also provides a treasure trove of evidence for the police.

Hazel said in her most recent case of "extensive destruction" to a foreclosed property, the host of the Sharpie party posted an invitation to "Matt's House of Mayhem" on a Facebook page.

See How One Home Was Trashed During a 'Sharpie Party'


At least 100 people turned up. Hundreds of smartphone text messages describing the party were also sent.

They drank alcohol, scrawled profanities on walls, smashed glass, tore up parts of the house and left garbage strewn everywhere.

"We obtained search warrants for Facebook accounts," Hazel said. "It was very useful to us to get access to the social networks. They posted pictures of the party. They were brazen about it."

Three men, aged 21, 24 and 30, were arrested on suspicion of felony vandalism, burglary and conspiracy. One of them was the son of the evicted former owner.

"The Sharpie party is the newest twist here," said Larry Morse, the district attorney in Merced County, California. Morse said he has investigated vandalized homes after six "Sharpie parties" in recent months.

Andy Krotic, a Californian realtor, said: "It's a growing fad among young people, especially the Twitter crowd. They throw a big party, everyone gets a Sharpie, and they are invited to write on the walls and spray paint."

Krotic said in one recent case partygoers shot arrows through the wall, hitting a room in a neighbor's house.

Banks that own the foreclosed homes are reluctant to pursue the perpetrators, Krotic says, because they don't have the resources to hunt down the miscreants. Even if they're caught, the unwanted publicity from their prosecution would likely incite more parties.

"Usually they leave the damage and just drop the price," Krotic said.

Copyright 2012 Thomson Reuters. Click for restrictions.

See more:
Home Infested With Thousands of Bees Drips Honey
27 Basketballs Clogging Town's Drain
Family Forced to Tear Down Home With Toxic Meth-Lab Past

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]]>damage to foreclosed homesforeclosed homessharpiesharpie partiessharpie+partysharpiepartyvandalism foreclosed homesvandalized homesReuters2012-08-17T11:00:00 00:00Homebuilder Sentiment Rises to 5-year Highhttp://realestate.aol.com/blog/2012/08/16/homebuilder-sentiment-rose-to-5-year-high/http://realestate.aol.com/blog/2012/08/16/homebuilder-sentiment-rose-to-5-year-high/http://realestate.aol.com/blog/2012/08/16/homebuilder-sentiment-rose-to-5-year-high/#commentsFiled under: ,

By Leah Shnurr

NEW YORK, Aug 15 (Reuters) - U.S. homebuilder sentiment rose in August to its highest level in more than five years, a fresh sign that the battered housing market is turning the corner, data from the National Association of Home Builders showed on Wednesday.

The NAHB/Wells Fargo Housing Market index gained to 37 this month from 35 in July, the group said in a statement, topping economists' expectations for it to hold steady with last month.

It was the highest level since February 2007 and the fourth month in a row sentiment has improved. The index has surged by more than 20 points since last summer, though it is still far from the 50 mark that shows more builders view market conditions as favorable than poor.

The index has not been above 50 since April 2006.

"While there is still much room for improvement, we have come a long way from the depths of the recession and the outlook appears to be brightening," NAHB chairman Barry Rutenberg said in the statement.

The single-family home sales component climbed to 39 from 36. The gauge of single-family sales expectations for the next six months edged up to 44 from 43, while prospective buyer traffic rose to 31 from 28. (Reporting By Leah Schnurr; Editing by Chizu Nomiyama)

Copyright 2012 Thomson Reuters. Click for restrictions.

See also:
Principal Reduction: Is Debt Forgiveness Fair?
High-End Homeowners Racing to Sell Before Tax Cuts End
Michigan Man Buys County's Entire Foreclosure Stock

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]]>builder confidencebuilder sentimenteconomyhomebuilder confidencehomebuilder sentimentNAHBNAHBWells Fargo Housing MarketNational Association of Home BuildersU.S. homebuilder sentimentWells FargoReuters2012-08-16T14:30:00 00:00Rome's Colosseum Leaning Slightly but Not Dangerouslyhttp://realestate.aol.com/blog/2012/08/01/romes-colosseum-leaning-slightly-but-not-in-danger/http://realestate.aol.com/blog/2012/08/01/romes-colosseum-leaning-slightly-but-not-in-danger/http://realestate.aol.com/blog/2012/08/01/romes-colosseum-leaning-slightly-but-not-in-danger/#commentsFiled under: ,

Rome Colosseum leaning

By Philip Pullella

Rome's Colosseum might be leaning slightly but its stability is not in danger, said officials who on Tuesday announced that the ancient amphitheatre is about to undergo its first comprehensive restoration in 73 years.

An Italian newspaper reported at the weekend that the Colosseum, famous for hosting bloody gladiator fights in the days of the Roman Empire, was about 40 cm (16 inches) lower on the south side than on the north, suggesting it was in danger.

The Italian media described it as the "leaning tower of Pisa effect."

"There is no problem with its stability," Mariarosaria Barbera, Rome's archaeological superintendent, told a news conference.

"We are talking about a structure whose foundations are 13 meters (14 yards) deep. Roman constructions do not only stand up to centuries, they stand up to millennia," she said.

"We are monitoring it, but there is no Tower of Pisa effect," Barbera said at the unveiling of the 25 million euro restoration project which will start in December and end in 2015.

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The project, which had been delayed by three years of bureaucratic problems, will include the cleaning and restoration of the entire Colosseum, known in Roman times as the Flavian Amphitheatre.

It will be carried out in phases so that the Colosseum, which receives hundreds of thousands of visitors a year, will remain open. Only part of it will be covered by scaffolding at any one time.

"The monument is so big that there won't be too much inconvenience for visitors," Barbera said.

An underground visitors centre will be built under an adjacent piazza, freeing up more areas inside the monument, which are currently used as meeting points and ticket stalls.

Overall, some 25 percent more of the Colosseum will be open to visitors after the restoration, particularly the underground network of tunnels, storerooms and cages.

Two thirds of the underground parts are currently not open to the public.

Rome Mayor Gianni Alemanno said the traffic around the Colosseum will be re-routed by the end of the restoration to decrease damage from vibration. He said at a news conference that it would be the first major restoration in 73 years.

"There have been various small projects but nothing of this level has been carried out in all this time," Alemanno said.

The work is being sponsored by Tod's, the luxury shoemaker and leather goods company.

Diego Della Valle, chairman of Tod's, said the Colosseum had to be taken care of because "it does not only belong to Italians but to every citizen of the world."

(Reporting By Philip Pullella, editing by Diana Abdallah.)

Copyright 2012 Thomson Reuters. Click for restrictions.

See also:
Athens Olympics Stadium in Decay (PHOTOS)
Astrodome, World's '8th Wonder,' Lies Abandoned (PHOTOS)
Blueprints of Ebbets Field, Home of Brooklyn Dodgers, on Display

%Gallery-161403%
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]]>ColosseumColosseum restorationFlavian AmphitheatreGladiatorItalyLeaningLeaning tower of pisaRomeTods shoemakerReuters2012-08-01T15:00:00 00:00Los Angeles Sues U.S. Bank, Calls It a 'Slumlord'http://realestate.aol.com/blog/2012/07/17/los-angeles-sues-us-bank-calls-it-a-slumlord/http://realestate.aol.com/blog/2012/07/17/los-angeles-sues-us-bank-calls-it-a-slumlord/http://realestate.aol.com/blog/2012/07/17/los-angeles-sues-us-bank-calls-it-a-slumlord/#commentsFiled under: ,

By Jonathan Stempel

The city of Los Angeles has sued U.S. Bank, accusing a unit of the fifth-largest U.S. commercial bank of becoming one of its biggest slumlords and blighting the city by allowing hundreds of foreclosed homes to fall into disrepair.

Monday's civil lawsuit by the office of Los Angeles City Attorney Carmen Trutanich alleges that U.S. Bank has taken title to more than 1,500 foreclosed residential properties in the city in its role as trustee for various mortgage-backed securities trusts.

Los Angeles said that at least since July 2008, U.S. Bank has "disregarded virtually every one of its legal duties and responsibilities as owner, resulting in the creation and maintenance of an alarming number of vacant nuisance properties and substandard occupied housing units."

It said the bank has ignored repeated demands that it comply with the law, causing hundreds of homes to become uninhabitable or "public nuisances," and resulting in illegal evictions of hundreds of tenants from the second most-populous U.S. city.

Los Angeles said that it is seeking a civil fine of $2,500 a day for each violation by what it called "one of the largest slumlords in the city." It estimated the bank's potential liability to be in the "hundreds of millions of dollars."

Thomas Joyce, a spokesman for Minneapolis-based U.S. Bank, said it is the mortgage servicers, not the trustee, who have the responsibility to maintain foreclosed properties, and that "we intend to bring them into" the lawsuit.

Joyce also said the city only recently agreed to detail which homes needed better upkeep, and that the bank will "stand ready" to address property-specific and general foreclosure concerns as it has done in other cities.

Other Cities' Lawsuits

Other large U.S. cities have also sued over mortgage industry practices that they allege contributed to urban blight.

Wells Fargo & Co, the nation's largest mortgage lender, in May settled a lawsuit by Memphis, Tenn., and on July 12 it settled a similar case involving Baltimore.

The Baltimore accord was reached in connection with the San Francisco-based bank's $175 million settlement with the federal government over allegations that it overcharged black and Hispanic borrowers on mortgages, contributing to higher foreclosures.

Wells Fargo was one of five big servicers to join February's $25 billion U.S. settlement over foreclosure abuses.

The National Fair Housing Alliance filed discrimination complaints with the federal government in April against both U.S. Bank and Wells Fargo, accusing them of doing a better job maintaining foreclosed homes in white neighborhoods than in minority neighborhoods.

According to the 2010 census, Los Angeles had 1.41 million housing units, of which about 95,000 were vacant. The city's population was about 3.79 million.

Shares of U.S. Bancorp were down 9 cents at $32.69 in morning trading on the New York Stock Exchange.

The case is People v. U.S. Bank NA et al, Superior Court of California, Los Angeles County, No. BC488436.

Copyright 2012 Thomson Reuters. Click for restrictions.

See also:
Middle Class May Be Richer Than It Thinks, Economist Says
90% of Bank-Owned Homes Held Off Market, Estimates Suggest
Underwater Mortgages Keeping Housing Market Afloat?

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]]>foreclosed homesillegal evictionslawsuitLos AngelesMinneapolismortgage-backed securitiesThe National Fair Housing AllianceUS BancorpUS BankvacantWells FargoWells Fargo CoReuters2012-07-17T14:30:00 00:00Wells Fargo to Pay $175 Million to Settle Case of Race Discrimination in Mortgage Lendinghttp://realestate.aol.com/blog/2012/07/12/wells-fargo-to-pay-175-million-in-race-discrimination-case/http://realestate.aol.com/blog/2012/07/12/wells-fargo-to-pay-175-million-in-race-discrimination-case/http://realestate.aol.com/blog/2012/07/12/wells-fargo-to-pay-175-million-in-race-discrimination-case/#commentsFiled under: ,


wells fargo discrimination WASHINGTON -- Wells Fargo & Co has agreed to pay $125 million to resolve allegations it discriminated against certain borrowers on the basis of race and national origin in its mortgage lending, the U.S. government said on Thursday.

Wells Fargo also agreed to contribute $50 million to help those buyers making down payments or improving their homes in some metropolitan areas around the country, including Baltimore, Chicago, Cleveland, Los Angeles, New York, Philadelphia and Washington. The government identified those areas needing the most help in recovering from the housing crisis.

The settlement, which needs approval from a judge, would end the investigation into whether the fourth-largest U.S. bank between 2004 and 2009 knowingly targeted minorities for risky mortgages that came with higher costs, according to documents filed in the U.S. District Court for the District of Columbia.

"An applicant's creditworthiness, and not the color of his or her skin, should determine what borrowers pay and what loans they qualify for," Deputy Attorney General James Cole said in a press conference. "Put simply, there is no place for discriminatory lending in the marketplace, and it will not be tolerated."

Wells Fargo in May said it could face civil charges under laws that prohibit discrimination against minority homebuyers. At the time, the lender said in a securities filing it believed the charges should not be brought and said it was seeking to show the department that it is in compliance with fair lending laws.

The government investigation found that loans submitted to Wells Fargo by mortgage brokers had varied interest rates, fees, and costs based only on race and not correlated to the borrowers' creditworthiness, according to the court document.

The Obama administration has mounted a campaign to closely monitor banks in order to ensure loan discrimination practices that were a part of the housing bust and led to record defaults are eliminated.

Wells Fargo said it is settling the matter "solely for the purpose of avoiding contested litigation with the DOJ, and to instead devote its resources to continuing to provide fair credit services and choices to eligible consumers, and important and meaningful assistance to borrowers in distressed U.S. real estate markets."

The bank said the settlement also resolves pending litigation filed in 2009 by the State of Illinois on behalf of borrowers, and resolves an investigative complaint filed in 2010 by the Pennsylvania Human Relations Commission.

The Justice Department looked at more than 34,000 loans made to borrowers in 36 different states and Washington, D.C., in assessing the penalty.

The disclosure came after Bank of America Corp's Countrywide Financial unit agreed in December to pay a record $335 million to settle similar charges.

Last year, San Francisco-based Wells Fargo received an $85 million penalty from the Federal Reserve Board over charges it steered borrowers into high-cost loans. The Fed ordered Wells to compensate certain borrowers between $1,000 and $20,000.

Previously, the cities of Baltimore and Memphis filed separate suits alleging Wells Fargo engaged in "reverse redlining," or intentionally targeting minority communities for predatory mortgage loans, leading to high foreclosures in minority neighborhoods.

In the agreement announced Thursday, Wells will pay $4.5 million of the $50 million to Baltimore, plus another $3 million for local housing and foreclosure initiatives. In return, the city will drop its suit.

In May, Memphis agreed to drop its suit after Wells Fargo agreed to contribute $7.5 million toward local homeowner and economic development initiatives. The bank also set a $425 million mortgage lending goal in the Memphis area, including $125 million in loans for low- and moderate-income borrowers.

The bank said the Justice Department claims are primarily related to mortgages priced and sold to borrowers by independent mortgage brokers.

As of July 13, the bank said it will voluntarily stop making mortgage loans through independent brokers. These loans account for 5 percent of the mortgages it makes. The company said it stopped originating subprime loans through brokers in 2007 and ended all subprime home lending in 2008. The bank said it will work to ensure existing applications are processed and closed.

The Wells Fargo case was initially referred to the Justice Department in 2009 by the Office of the Comptroller of the Currency, overseeing the nation's largest banks, and was taken the civil rights division.

The victims of the discrimination will be compensated, according to the Justice Department. Wells Fargo will be required to conduct new monitoring programs to ensure fair lending standards are in place in the future.

Copyright 2012 Thomson Reuters. Click for Restrictions.

See also:
Housing Discrimination: Disability-Related Complaints Soar
Banks' Paperwork Foul-Up Cost Atlanta Woman Her Home
'This Is Crazy': Company Snatches Condos from Owners

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Army Veteran Sues Landlord For Housing Discrimination

 

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]]>BaltimoreBank of AmericaChicagoClevelandDeputy Attorney General James ColeDiscriminationhomebuyershousing discriminationJustice DepartmentLos AngelesMinoritiesNew YorkPhiladelphiaU.S. District CourtWashingtonWells FargoWells Fargo CoReuters2012-07-12T13:57:00 00:00U.S. Construction Spending Hit 2.5-Year High in Mayhttp://realestate.aol.com/blog/2012/07/02/u-s-construction-spending-hit-2-1-2-year-high-in-may/http://realestate.aol.com/blog/2012/07/02/u-s-construction-spending-hit-2-1-2-year-high-in-may/http://realestate.aol.com/blog/2012/07/02/u-s-construction-spending-hit-2-1-2-year-high-in-may/#commentsFiled under: ,

WASHINGTON, July 2 (Reuters) - U.S. construction spending rose to its highest level in nearly two and a half years in May as investment in residential and federal government projects surged, a rare dose of good news for the flagging economic recovery.

Construction spending increased 0.9 percent to an annual rate of $830 billion, the highest level since December 2009, the Commerce Department said on Monday. That followed an upwardly revised 0.6 percent rise in April.

Economists polled by Reuters had expected construction spending to rise 0.2 percent after a previously reported 0.3 percent gain in April.

In a reversal of fortunes, housing has become one of the few bright spots in the economy, whose recovery has slowed in recent months as the debt crisis in Europe and an unclear fiscal policy path at home create a cloud of uncertainty for businesses and households.

The gain in construction spending in May was driven by a 1.6 percent rise in private construction outlays. Spending on residential projects jumped 3 percent to the highest level since January 2009.

Private nonresidential construction spending rose 0.4 percent to the highest level since October 2009. Investment in multifamily residential projects surged 6.3 percent, while outlays for single-family buildings increased 1.8 percent.

Residential construction is expected to contribute to growth this year for the first time since 2005.

Spending on public sector construction dipped 0.4 percent to $269.6 billion, down for the fifth month. However, outlays on federal government projects jumped 5.6 percent, the largest gain since December, almost reversing the prior month's drop.

Spending on state and local government projects dropped 1.0 percent, falling for a fifth straight month.

Copyright 2012 Thomson Reuters. Click for Restrictions.

 

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]]>commerce departmentConstructionconstruction spendingnonresidential constructionResidential constructionReuters2012-07-02T11:30:00 00:00Home Price Increase Exceeds Experts' Forecastshttp://realestate.aol.com/blog/2012/06/26/home-price-increase-exceeds-experts-forecasts/http://realestate.aol.com/blog/2012/06/26/home-price-increase-exceeds-experts-forecasts/http://realestate.aol.com/blog/2012/06/26/home-price-increase-exceeds-experts-forecasts/#commentsFiled under: ,

NEW YORK -- U.S. home prices picked up in April for the third month in a row, the latest indication a recovery in the housing market is gaining traction.

But in a sign of the struggles still facing the broader economy, separate data on Tuesday showed consumer confidence fell to its lowest level in five months in June as Americans' view of the economy in the coming months soured.

The Standard &Poor's/Case-Shiller composite index of 20 metropolitan areas gained 0.7 percent on a seasonally adjusted basis, topping economists' expectations for a 0.4 percent gain.

Compared to a year ago, home prices fell 1.9 percent in the 20 cities, above expectations for a decline of 2.5 percent, and an improvement from the 2.6 percent annual decline seen in March.

April's gain made for the longest streak of consecutive monthly gains since prices were boosted by the homebuyer tax credit from mid-2009 into early 2010.

"The housing recovery in this cycle has been painfully slow to develop, but it is unmistakably here," said Chris Low, chief economist at FTN Financial in New York.

"This time, unlike 2010 when the first-time homebuyer tax credit lifted sales, it is happening with only limited help from the government."

Recent data has pointed to a housing market that has finally hit bottom and is stabilizing, including a report on Monday that showed new home sales hit a two-year high in May.

A Long Way to Go

Still, the housing market has a long way to go before full recovery as it faces a large pipeline of foreclosures, tight credit restrictions and weak demand.

Even as the housing market is firming, the broader economy is struggling under the weight of a sluggish labor market and fears over the fallout of Europe's debt crisis.

The Conference Board, an industry group, said its index of consumer attitudes fell to 62.0 from a downwardly revised 64.4 in May, falling short of economists expectations. It was the lowest level since January.

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While consumers' assessment of their current situation improved, they were less upbeat about their expectations for the next six months. Fewer respondents expected business conditions or employment would improve in the coming months.

The index is down nearly 10 points from the peak hit in February. Consumer spending -- a major engine of economic growth during the housing boom -- accounts for about 70 percent of U.S. economic activity.

"It does reinforce that confidence continues to wane, which does keep pressure on the recovery," said Sean Incremona, economist at 4Cast Ltd in New York.

Financial markets saw little reaction to the data as investors had their attention on Europe after Spain's short-term borrowing costs nearly tripled at auction.

Copyright 2012 Thomson Reuters. Click for Restrictions.

See also:
Those Mortgages Blamed for Housing Crisis? They're Back
5 Things That Can Derail Your Home Sale

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First Time Buyer Recounts Home Buying Process

 

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]]>Case ShillerChase-shiller home price indexChris LowConference BoardConsumer confidenceFTN Financialhome price indexhomebuyer tax creditSean IncremonaSPSP 500Reuters2012-06-26T13:10:00 00:00'Billion-Euro Home' Built by Unemployed Artisthttp://realestate.aol.com/blog/2012/01/26/billion-euro-home-built-by-unemployed-artist/http://realestate.aol.com/blog/2012/01/26/billion-euro-home-built-by-unemployed-artist/http://realestate.aol.com/blog/2012/01/26/billion-euro-home-built-by-unemployed-artist/#commentsFiled under:

billion euro home

By Conor Humphries

DUBLIN -- Giving new meaning to "money pit," an unemployed Irish artist has built a home from the shredded remains of 1.4 billion euros ($1.82 billion), a monument to the "madness" that he says has been wrought on Ireland by the single currency, from a spectacular construction boom to a wrenching bust.

Frank Buckley built the apartment in the lobby of a Dublin office building that has lain vacant since its completion four years ago at the peak of an ill-fated construction boom, using bricks of shredded euro notes he borrowed from Ireland's national mint.

"It's a reflection of the whole madness that gripped us," Buckley said of what he calls his "billion-euro home."

"People were pouring billions into buildings now worth nothing," he said. "I wanted to create something from nothing."













A wave of cheap credit flowed into Ireland in the early 2000s after Ireland joined the currency zone, fueling a huge property bubble that transformed the country.

The bubble's collapse since 2007 plunged Ireland into the deepest recession in the industrialized world, forcing the former "Celtic Tiger" to accept a humiliating bailout from the EU and the IMF.

Buckley was given a 100 percent mortgage at the peak of the boom to buy a 365,000 euro home on the far reaches of Dublin's commuter belt, despite the fact he had no steady income. (That's nearly $480,000 at today's exchange rate.)

He has separated from his wife who lives in the home, which has since lost at least one-third of its value.

Living in his "billion euro home" since the start of December, Buckley is working on adding a kitchen to the living room and hall.

The walls and floor are covered in euro shreddings and the house is so warm that Buckley says he sleeps without a blanket.

Pictures made from notes and coins decorate the walls, including one of a house that's made from Irish 5 pence pieces.

"There are houses in Ireland worth less than that," Buckley quips.

Buckley said that he wants Europe's politicians to solve the eurozone debt crisis without destroying its currency. But if the currency ultimately fails, he will happily use the euro zone's defunct notes as fodder for future projects.

"Whatever you say about the euro, it's a great insulator."

(Reporting by Conor Humphries; editing by Carmel Crimmins and Paul Casciato.)

Copyright 2012 Thomson Reuters. Click for Restrictions.

Also see:
Amazing 'Origami' Studio Unfolds Into 4 Rooms
Artist Constructs Victorian House of Legos
Artist Makes Luxury Home in a Dumpster

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]]>billion euro homehouse of moneymoney houseweird homesReuters2012-01-26T06:00:00 00:00Mitt Romney's 'White House North' Could Spur Local Economyhttp://realestate.aol.com/blog/2012/01/11/mitt-romneys-white-house-north-could-spur-local-economy/http://realestate.aol.com/blog/2012/01/11/mitt-romneys-white-house-north-could-spur-local-economy/http://realestate.aol.com/blog/2012/01/11/mitt-romneys-white-house-north-could-spur-local-economy/#commentsFiled under:





WOLFEBORO, N.H. -- If Mitt Romney gets his wish, the ranks of presidential retreats that include Crawford, Texas, and Rancho del Cielo near Santa Barbara, Calif., could soon be joined by Wolfeboro, N.H.

Big change could be coming to the rustic but affluent lakeside resort town on Lake Winnipesaukee (pictured above) if front-runner Romney becomes Republican nominee Romney, and ultimately President Romney after the November 2012 election.

Residents are already bracing for the good, the bad and the ugly that could accompany a "Northern White House."

The Romney's summer house on New Hampshire's largest lake (pictured below) is a three-story, six-bedroom, 5,400-square-foot contemporary home set on an 11-acre lot with a wide water frontage and estimated value of about $10 million.

The spread includes a large boathouse and a former stable that has been converted into a guesthouse. It sits well back from the road, up a long driveway, invisible to passersby.

The Romney clan, which includes five grown children and 16 grandchildren, often congregate in Wolfeboro in the summer. Empty-nesters Mitt and Ann Romney also own a townhouse in Belmont, Mass., and an oceanfront house in La Jolla, Calif., which is undergoing a fourfold expansion.

Locals describe the Wolfeboro house, within walking distance of town, as tasteful and classy, which is also pretty much how they describe the owners.

Romney, the former chief executive of buyout firm Bain Capital and Massachusetts governor, is estimated to be worth some $200 million. He is the richest man to run for the White House since publisher and businessman Steve Forbes, who was worth about $430 million when he ran in 1996 and 2000.

Unlike Forbes, who made little headway in his quest, Romney won Tuesday's New Hampshire Republican primary, and is a strong favorite to become his party's nominee and have a fighting chance to take down President Barack Obama.

"We're already talking about how we might change this business if he is the nominee. We know things would change if he's the president," said Judith Colcord, co-owner of the Downtown Grille and Cafe. That might include adding staff or changing operating hours at the stylish coffee shop, with views of the lake from its back room and seasonal patio.

"I would like to talk to businesses in Kennebunkport about how it changed their community," said Colcord, referring to the coastal town in Maine where George H.W. Bush spent large amounts of time while he served as vice president and eventually president.

Almost everyone in Wolfeboro has a story of the Romneys, many about seeing the former Massachusetts governor cycling around town, helmetless (don't touch the hair!) on an old three-speed bike, or going to the town's popular ice-cream stand with various family members.

"I delivered him a pizza once, about five years ago, when he was governor," said Nick Sackos, 22, who works at Dive Winnipesaukee, an outdoor equipment store.

Geo-Caching With the Romneys?

A few hundred yards off the Romney property at Clark's Point is a sunken rowboat, the Bumble Bee, used for "geo-caching" -- a treasure-hunting game that involves finding targets, including submerged objects, using GPS coordinates.

"We go scuba diving right outside his house," Sackos added. "We would probably do even more dives if Romney were president."

Wolfeboro residents insist that they are not starstruck, given the many celebrities who visit the town each summer.

The roster has included actors Drew Barrymore and Leonardo DiCaprio; talk show host Jimmy Fallon; Duke basketball coach Mike Krzyzewski, recruiting at the elite boarding school Brewster Academy; and many current or former corporate executives who either own or rent properties here.

"We love the waterfront people in Wolfeboro. They pay almost 70 percent of the property taxes and don't put kids in the schools," said realtor Robert Hughes. "They are people who can live anywhere -- and this is a very nice 'anywhere.' "

A 2007 vacation in town by French President Nicolas Sarkozy is remembered more critically than interactions with the good-neighbor Romneys. Some locals spoke of an overly aggressive security detail comprised of local law enforcement and private bodyguards while he stayed at a $30,000-a-week rental.

Teachers Joshua and Jennifer Keaton, out walking the family labradoodle, have seen Romney and his wife Ann cycling through town. "One time we saw him at Mise en Place (a local upscale restaurant). Most of the people in town are used to him," Joshua Keaton said.

Driving through downtown takes just a few minutes in the winter, when many stores are shut and summer residents long gone. The town is congested in the summer, and some residents worry about presidential motorcades clogging narrow roads and nosy tourists taking up the good parking spots.

The candidate was introduced to the Wolfeboro area by members of the Marriott hotel clan -- not surprising since Willard Mitt Romney was named after J. Willard Marriott, the devout Mormon businessman who founded the company.

Romney bought the property in 1997 from Butch Cash, another hotel executive, for less than $3 million.

In 2004, realtor Hughes sold Romney, then Massachusetts governor, a small parcel of land abutting the main property. Hughes told him by overnight mail that the piece was available and being keenly sought by developers.

Romney quickly responded. "I dealt with him directly. I had his office phone, his private phone, his cell phone," Hughes recalled from his comfortable Main Street office.

"The residents here take pride in not bothering him. He's not a showy person. He's just a neighbor."



(Reporting by Ros Krasny; editing by Todd Eastham.)

Copyright 2012 Thomson Reuters. Click for restrictions.

Also see:
Mitt Romney: My 3,000-Square-Foot House Is Too Small
Romney's Housing Fix: Let Foreclosures 'Hit Bottom'
Romney Family Home Demolished as Part of Detroit Rejuvenation Plan

 

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