Monday, December 17, 2007

Panama Real Estate in Boquete

Boquete is a city-sized town in Western Panama, in the Chiriqui Province, near the border with Costa Rica. Because of its altitude (about 1,000 m above sea level) its climate is cooler than the lowlands in Panama, and has become a pleasant escape from the heat. Its natural environment has made it extremely popular with tourists from all over the world, especially for eco tourism.

Some of its landmarks include nearby Volcan Baru and the Sendero de los Quetzales, which runs from Boquete to Volcan on the other side of the volcano. It is also known for its coffee, said to be the finest in Panama (and among the world's best), and its oranges. The Caldera River runs through the town.

Panama is quickly becoming the world's highest rated retirement haven. So whether you are looking to buy panama real estate as a retirement property or as an investment, Boquete is an ideal choice.

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source: panamaexpertos.com

Home losses to cost $482M

Home foreclosures will drain $482 million from the Memphis area economy next year.

That's the conclusion of a U.S. Conference of Mayors study of 361 metropolitan areas done by Global Insight of Lexington, Mass.

"That includes reductions in activity in the construction sector and retail sales, then all the smaller economic activity that depends on those," said James Diffley, who headed up the Global study group.

There was no breakdown on those categories or on lost property or sales taxes, he said.

"Some of that (economic loss) would be reflected in lost tax revenue," Diffley said.

The metro area figures were based on Global's models of each city economy, he said.

The findings make sense, said John Gnuschke, director of the Sparks Bureau of Business and Economic Research at the University of Memphis.

"It seems reasonable that we would have a lot of losses, primarily because subprime mortgages are a substantial proportion of the mortgages made here since 2000," he said. "We have a lot of poor people who were more inclined to take out a subprime mortgage."

Subprime loans carry higher interest rates and less favorable terms than prime loans and normally go to borrowers with blemishes on their credit records.

A third of ZIP code areas in Shelby County had at least 50 percent of loans from 2004 to 2006 classified as subprime, according to figures from the U of M Center for Community Building and Neighborhood Action.

"Predominantly African American neighborhoods and borrowers are clearly targeted," said the report from Phyllis Betts, director of the center.

The mayors' study may underestimate the foreclosure effect "because this is a non-recession scenario and the probability of a recession is increasing each day," Gnuschke said.

About the tax effects, he said, a depressed real estate market means fewer new properties added to the tax roles. Plus, foreclosures in a neighborhood drag down property values, not only of the repossessed homes, but also of neighboring property. In turn, tax collections fall.

Memphis Mayor Willie Herenton said he's aware of some of the trends the study points out.

"One must recognize that these numbers also encompass parts of Mississippi and Arkansas and not Memphis proper," he said. "The City of Memphis has yet to do its own economic impact study as it relates to this crisis and how it could potentially impact the city's tax collection status."

Sales tax isn't a major revenue source for Shelby County, said Mayor A C Wharton. He doesn't see the bottom falling out of home values or property taxes.

"You get more house for your dollar here (than in other areas), so the room for loss isn't as great," he said. "We're in better shape to take shrinkage."

Also, the next property reappraisal isn't scheduled until 2010. While there may be some appeals of assessment between now and then, Wharton said, "Hopefully we'll be out of the slump by then."

Each penny on the county tax rate brings in about $1.6 million and Wharton doesn't see that being "disturbed."

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source: commercialappeal.com

Sunday, December 16, 2007

Mortgage aid may not help

Shelia Cartwright-Langford meets all the standards for President Bush's voluntary mortgage aid program.

She got adjustable rate mortgages (ARMs) to buy her Germantown home in December 2005; those rates will rise in January; and, she hasn't missed a payment. And yet ...

"Another three years (before the rates rise) wouldn't help me," said Cartwright-Langford, whose monthly payments were slated to rise from $1,500 to $1,900 in January, then go up every six months after that.

Instead, she's going ahead with her plan to refinance those loans into a fixed-rate mortgage under a program started this summer at Memphis Area Teachers Credit Union for homeowners with ARM problems.

"I would rather do that because I want everything to be fixed," she said.

The Bush administration's plan, announced Thursday, encourages lenders to agree to fix the initial rates on adjustable rate loans for three years past the first reset date. It got mixed reviews in Memphis.

"It will have a certain amount of impact, but the catch is, you can't be in default or even have missed one payment in the past," said Phyllis Betts, director of the Center for Community Building and Neighborhood Action at the University of Memphis.

"A lot of our borrowers don't fit into that unblemished category."

Betts follows mortgages and foreclosures closely.

According to center data, lenders made 28,504 subprime loans in Shelby County in 2005 and 2006. This year's pace is about the same as last's, Betts said, which would add about 7,800 to that number.

No figures were available on how many were subprime -- made on terms and at rates less than the best available -- and carry adjustable rates.

Even though it's voluntary, the administration plan is a "radical idea" that will help some people, Betts said.

Such a program would be effective for 10 to 15 percent of subprime borrowers in Frayser, said Steve Lockwood, executive director of the Frayser Community Development Corp.

For many, he said, "It may just stall the inevitable, foreclosure."

But, the three-year window until rates reset "may be enough time for people to crawl back out of their equity hole and maybe have enough equity (value owned in their homes) to refinance at a fixed rate."

And, spreading out foreclosures over several years may be a good thing, he said.

Lockwood was disappointed the program doesn't require borrowers to get credit counseling.

He doesn't think the voluntary nature of the program will hurt results.

"Just recently, lenders are coming to their senses and offering help even before they are asked," he said. "What are they going to do, foreclose and not be able to find a buyer? They read the papers."

Mortgage companies and investors in mortgages are in trouble themselves and may see a "lesser evil" in giving up some revenue to avoid foreclosing on homes on which they lose money, said Ralph McNeely, vice president of residential lending in Germantown for First Horizon National Corp.

Refinancing is out of the question for many borrowers with ARMs, although those loans were often sold to them with the prospect that could be done as housing values rose.

"The real estate market has not cooperated with property values increasing where these things work out more comfortably," McNeely said.

The president's program may bridge gaps to get some borrowers to the point that home prices rebound, he said.

The people who will be helped by the program aren't the ones who need aid most desperately, said Rhonda Gray, director of mortgage lending for MATCU, which is helping Cartwright-Langford refinance.

It's the folks whose payments have gone up already who are hurting the most, she said.

Gray sees very few people like Cartwright-Langford who apply for the MATCU refinance program -- which offers fixed, but not prime rates -- before the interest rates on their loans reset. And she talks to even fewer with no late payments.

"If you're trying to help people, these are the people who need the help," Gray said.

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source: commercialappeal.com

Bankrupt builders can spoil dreams

When a homebuilder goes bankrupt, the company's creditors aren't the only ones who suffer. Often, so do those who have paid sometimes hefty deposits for houses that remain unbuilt and new homeowners living in a development with half-built homes and incomplete amenities.

In the past year, the tumbling housing market has claimed such large builders as Fort Lauderdale, Fla.-based Levitt & Sons, a unit of Levitt Corp., Elliott Building Group in Pennsylvania, Turner-Dunn Homes Inc. in Arizona, Kara Homes Inc. in New Jersey and Neumann Homes Inc. in Illinois.

When these builders file for bankruptcy, subcontractors stop working, unfinished homes in various stages dot the communities, crippling liens are placed on occupied homes, clubhouses are incomplete and swimming pools and parks are never built.

People who have placed deposits on homes either never get their money back or face delays of months or years before it is returned.

"The houses sit until someone comes in and decides to complete them," says Tracy Cross, of Tracy Cross & Associates, a Schaumburg, Illinois-based real estate research firm. The buyers "can't move in, they can't get their deposit back and they can't get out of the contract."

In November, Levitt and Sons became the nation's largest builder to file for bankruptcy. In its bankruptcy filing, the company lists assets of less than $1 million and debts of more than $100 million.

Some home builders such as Centex Corp. and Pulte Homes Inc. aim to survive by selling houses at bargain prices, scrapping growth plans and slashing jobs.

But as the housing market continues its downward slide, other home builders could find their companies in jeopardy.

Attorney Brian Meltzer, of Meltzer, Purtill & Stelle LLC, in Chicago, Ill., has represented home builders for more than 30 years. He notes that these bankruptcies create numerous problems for homeowners. One of the most pressing issues will be warranty service issues on their homes.

Cross believes that homeowners living in a bankrupted new home community have few options when their home has a major problem.

If the foundation has cracks, the floors aren't level, the roof is leaking or the foundation is shifting, the homeowner will have to pay for the repairs.

If a new entity takes over the development, it can help the homeowner -- but it has no obligation to do so.

As for the houses partly under construction, what most likely happens is that the lenders or another entity step in and hire the trades to finish those houses. The home buyer will then get the house he or she contracted for. In the meantime, the home buyer is "stuck" and can't get out of the legally binding contract.

How can potential buyers protect themselves?

Both Cross and Allen C. Balk, at Meltzer, Purtill & Stelle LLC, recommend checking out the builder before purchasing a home. Look at the progress in the subdivision. Drive around. Is anyone working? If it looks like there isn't that much production, it may be indicative of other issues.

Knock on doors and ask people if they are happy with their home. If you decide you want to live in that community, purchase a completed inventory home, which eliminates much of the risk.

Look up the company on the Internet. If it's a public company, you'll be able to find out how it's doing in different markets. Find out if land is being revalued.

Buyers should also make sure that their earnest money is in a third party escrow account because if there is a bankruptcy there is a right to terminate the deal.

"If the money is not in such an account, you become an unsecured creditor," he added. However, this provision can vary from state to state so it's up to the buyer to find out if this is done in their state.

Buyers sometimes can add a "springing provision" to their contract. This is a clause in the contract that allows the buyer to walk away if the builder files for bankruptcy protection.

Most contracts don't contain them. This clause only "springs" into effect with a bankruptcy filing.

"There is nothing wrong with asking your lawyer to put this in the contract," Balk said. "It's important to check with your state to see how enforceable this clause is."

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source: commercialappeal.com

Rapid decision is right one

The couple, who were married in April, had been house hunting off and on for about a year when they received a call from Derek's parents. The owners of a house around the corner from their home had just planted a for-sale-by-owner sign in the yard.

The Howells made a quick call of their own and were the first prospective buyers to view the house in the sought-after area off Yates in East Memphis. The competition didn't stand a chance.

"The previous owners told us someone was scheduled to look at the house just after us," Carrie said. "We talked quietly, like, 'Do you want it?' 'Yeah.'

"So we made them a full-price offer on the spot. It was probably on the market for about an hour."

The Howells purchased the three-bedroom, two-bath home in January for $279,000. The 11/2 -story brick traditional home sits on a large lot with mature trees. The 2,200-square-foot home has a garage, a spacious back patio and an upstairs bonus room.

But for the Howells, the home's layout sealed the deal -- particularly the roomy den that flows easily into the kitchen via a large pass-through.

"We instantly fell in love with it," Carrie said. "We really like how from the kitchen you can see into the den and see the TV. It feels like one big room."

The couple painted the den's paneled walls a soft taupe. The newly painted brick hearth is the same off-white as the room's beamed ceiling and the new 4-inch molding the couple installed throughout the house.

Although the Howells took possession of the home in January, they didn't move in until February, giving them time to complete a range of minor renovations.

"They were mainly cosmetic," Derek said. "We didn't do any major structural stuff, just updating, painting, making it reflect our style.

"It's really the same house."

The couple decorated the home with the help of Derek's mother, interior decorator Shirley Howell.

"I feel really fortunate to have her, because she's really talented and she comes up with ideas I wouldn't have thought of," Carrie said.

Derek was happy to give his wife and his mother free rein with the décor.

"I wanted a say in the TV and the kitchen," he said. "As long as it's not pink or too flashy, I'm fine with it."

The result of the collaboration is a series of plush, traditional interior spaces filled with antiques, custom window treatments and a color palette that flows easily from one room to the next.

The home's original hardwood floors are covered with the Howells' collection of Oriental rugs, including a long runner in the hallway that came from Derek's parents' home.

As the couple analyzed the space, they decided to use a room just off the entry, originally designed to be a formal living room, as a large, formal dining room. They added a ceiling medallion that sets off the chandelier in the room, which is spacious enough for an oval dining table, an antique sideboard and a hutch and buffet.

An adjoining sitting room painted a deep taupe was originally designated for dining and leads to the kitchen, which is painted a cheery terra cotta. The home's previous owners had updated the kitchen, which features floors of ceramic tile laid on the diagonal, a center island and white cabinetry. The Howells put in new appliances, including a gas range.

A large picture window beside the breakfast table provides views to the spacious patio, where the couple replaced aging columns with new cedar ones. Derek has big plans for the backyard, including a new irrigation system and beds.

The kitchen's pass-through offers a clear view of the couple's new 50-inch flat-panel, wall-mounted plasma TV. A coat closet behind the TV hides its components.

"The remote works through the wall," said Derek, who also installed a surround-sound system in the den.

A hallway leads to the home's three bedrooms and to the guest bath, where Carrie and Shirley worked around the room's blue tile, adding blue-and-brown wallpaper and a custom embroidered shower curtain that matches the room's French blue window treatments.

A neighboring guest room houses Carrie's old bedroom furniture, including several antique pieces. The room could eventually be used as a nursery.

Next door, a spare bedroom contains the couple's computer and treadmill.

At the end of the hall, the master bedroom continues the blue-and-brown theme with brown walls and French blue and brown bedding. An en suite bath features brown tile and a new marble-topped freestanding vanity.

A master bath was high on Carrie's wish list for a new home, since Derek's former home in the High Point Terrace neighborhood didn't have one.

"I'm happy we have it," she said. "It's tiny, but it's not like the old house where the bath was in the hallway like a guest bathroom."

Down the hall from the bedroom, a stairway that divides the hallway from the den leads to the home's upstairs bonus space, which the couple had re-floored to fix squeaky boards. The plan is to turn the room into a game room -- or "man-land," as Derek called it.

The couple, who met at a company Christmas party three years ago when both worked for Hilton Hotels Corp., might have made a quick decision when they made the offer on their new home, but they're happy they did.

"We're just really happy here," said Carrie, who now works in marketing at the FedEx World Headquarters on Hacks Cross. Derek still works for Hilton in the market analysis department.

"It's worked out really well," he said.

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Real Estate Designers offers totally innovative solutions for your software development, Internet programming, real estate web design and hosting needs. Our service includes domain name registration and real estate web design. Real Estate Designers provides the complete solution including design, application development and marketing.



source: commercialappeal.com