Can an unpaid parking ticket cost you your home?

The answer is apparently yes. The Milwaukee Journal Sentinel covers the story of a local man who's unpaid $50 parking ticket from four years ago has led to his house being foreclosed by the city to cover the fine, now upped to $2,600 with late penalties.

Never Enough

Another day, another possible foreclosure. . .with a twist. Homeowners that were recipients of an "Extreme Home Makeover" in 2005 have fallen a little behind. Trouble is, the house should have had no mortgage. Beazer Homes sponsored the build and not only paid off the mortgage, but also gave the family $100,000 cash to pay bills. Turns out the homeowners took out a mortgage to start up a homebuilding company of their own.

My favorite quote from the article:

Harper told Channel 2 they invested the loan proceeds in a construction business and the business hasn’t been good. She didn’t say how much of the money is left.

“What’s going to happen is instead of keep paying my mortgage, I’m going to take my money and not pay my mortgage because I’m being harassed,” said Harper.

So much for this feel good story.

Housing Finances-Where did it all go so wrong?

Came across an interesting article in the Economist titled End of Illusions that delves into this very topic. It takes a closer look at Fannie and Freddie and the implications of government rescues.

10 Ways to Not Sell Your Home

Amusing little article on CNN discusses 10 things that will definitely prevent your home from selling. It's an interesting little article, but nothing earth shattering was mentioned.

For example: Don't leave dirty dishes out when you have potential buyers stopping over.

One Wild Ride - Fannie & Freddie

After a wild week, the Fed and Treasury Department came to the aid of embattered Fannie Mae and Freddie Mac (which despite media reaction, should not have been a shock). To calm the troubled masses, "Federal Reserve Chairman Ben Bernanke told Congress Wednesday that troubled mortgage giants Fannie Mae and Freddie Mac are in 'no danger of failing'." The following CNN article elaborates on Bernanke's announcement.

Back From Vacation!

Sorry for the absence, but I have been on vacation-hiking through Colorado mountains.

As my first post back, let's take a look at an article that I came across on Yahoo News discussing whether the US government needs to intervene in the housing market or if the market should be allowed to "correct" itself. Interesting little article

In Danger of Foreclosure? No Problem. . .Officer Shaq is on the Case!

Part time NBA star and part time police officer Shaquille O'Neal is volunteering his wisdom on fiscal responsibilty to teach homeowners how to stave off foreclosures and plans to get into real-estate development projects in Orlando.

Per this Orlando Sentinel article;

"I want to come in not to kick them out, but to work with them and save them so they can stay in their homes," O'Neal told the Orlando Sentinel during an impromptu stop Tuesday at Orlando City Hall.Attorney Mark NeJame, who arranged the visit along with longtime friend and Realtor Curtis Cooper, said the star center wants to buy the mortgages of homeowners who have slipped into foreclosure because of high interest rates. He would sell the homes back to those troubled buyers with more affordable terms, hoping to make a small profit.

Toll House Cookies = Good, Toll Brothers Outlook = Bad

Toll Brothers' CEO declared that the housing industry was in a "depression"and that recovery is 2-3 years away. He also mentions rising building costs related to oil prices in this article.

The Cost of Housing Isn't Going Down Everywhere. . .

Meet the world's first BILLION DOLLAR home.

Actually, the final total will be closer to 2 billion. The 27-story tower was built in Mumbai and belongs to the Ambani family, the head of a giant petrochemical company. No two floors are alike-from looks to materials used.

With 3 children, their previous 22-story tower home must have seen cramped.

Who's gonna pay for this mess?

CNN article discusses the issue of who should pay to maintain abandoned foreclosed homes. Some towns are fining banks and lendors for unkempt lawns, trash etc.

I've heard of tiny apartments, but living in a closet?

Perhaps one of the strangest and creepy stories I have come across recently. . .homeless Japanese woman secretly sleeps in man's closet for over a year.

She apparently snuck into his home and just took up residence in his closet. The single man was astonished to learn that he wasn't as alone as he thought. He discovered his "guest" after setting up
security cameras to figure out how food kept disappearing from his kitchen.


CNN has more on this story.

Completely OT, but a must see. . .

From the guy that brought us the Segway Vehicle (See previous posts for info on our Segway Disney Tour) comes an amazing breakthrough, straight out of the Terminator movies. A robotic arm created to help amputee soldiers live a normal life. This arm can pick up grapes, use a cordless drill, basically anything a normal arm can do.

Check out the unbelievable video footage of this arm in action at http://blog.wired.com/gadgets/2008/05/dean-kamens-rob.html.

You're Out. . .

SURPRISE! The home you are renting is being foreclosed next week!

CNN story discusses an increasing issue with all of these foreclosures. . .that many of these properties are occupied by renters that aren't always aware that their landlord hasn't been paying the mortgage. Renters often first find out about the foreclosure from final notices from the bank or from surprise visitors telling them they need to get out.

World Travelers. . .

Big travel week for SMA Consulting, and no I am not referring to Mike, Bob, or Steve heading out of town to present at a seminar. Both Travis (SMA Orlando's Accounting Manager) and Amy (The New Voice of SMA's Front Desk) are off on some big trips.

Travis and family are off to Ireland to explore their heritage. They plan to see most of Ireland over their week long excursion. A recent purchase of a new digital camera will hopefully yield some great pictures of homebuilding in Ireland. . .as long as Travis can figure out how to use it. Keep your fingers crossed.

Amy is off site seeing at Machu Picchu in Peru. I have to admit that I am quite envious as I have always wanted to explore those ancient ruins. Amy has packed her digital camera as well and should have some great pics to share with us upon her return.

Happy and safe travels to both Travis and Amy!

Congratulations Are In Order

Congratulations to Dan Benshoof (full disclosure here, he's my dad) of Benshoof Builders was awarded a 2008 Remodeling Award of Excellence from the York County Builders Association last night. He won for the category of Restoration of between $100,000 and $125,000. And in this bloggers opinion, it's about time he got recognized for his great work.

The job was a barn restoration (a specialty of his) and the customer was quite thrilled to have his remodel chosen for an award.

Update on Housing Relief from Congress

And that status? A partisan tug of war in congress. CNN updates the stalemate.

Fannie Mae Predicts Gloom and Doom

Fannie Mae warned on Tuesday that they are calculating that the worst is still ahead and are predicting posts of even worse losses in 2009. Their forecasts are predicting a 7-9% price decline for the year. Read the rest of their predictions in this CNN Money article.

OT: On a Personal Note. . .

Jennie and I took some engagement photos last week. For anyone not already aware, the wedding will be in November in Orlando.

Check out our photographer's blog for more pictures.

Apparently no one is immune afterall

CNN Money article mentions that the markets that remained unscathed to date are now seeing price reductions.

Sunrise or sunset on economy? Depends who you ask apparently.

According to a recent Bloomberg.com article, we are in the eye of the hurricane and not nearing the end as some optimists are trying to predict for the subprime / housing / credit / economic crisis in the U.S.

According to the author of the article, the only people that are optimists right now are executives whose banks are losing gobs of money. The article isn't flattering unfortunately.

So what constitutes a recession?

I have heard the term recession tossed around lately. . .so what is a recession?

Per Wikipedia (Click link for more analysis):
"In macroeconomics, a recession is a decline in a country's real gross domestic product (GDP), or negative real economic growth, for four or more successive quarters of a year."

Why Buy New?

Came across a short article on Builderonline.com

discussing some potential responses to buyers weighing the choice between new and existing homes. Nothing earth shattering really, but there may be a nugget or two your sales team isn't using currently.

One nugget from the article:

Move-in day is simpler for new-home purchasers than for existing-home buyers, who can be delayed because of clean-up or repair issues, notes Rob Ellerman of the Rob Ellerman Team, who serves as sales manager for Gale Home Builders in Lee’s Summit, Mo. “With a new home, you have possession the same day your loan closes and funds are available,” he says. “This means no worries in the interim, and planning the movers is so much easier.”

Foreclosures still way up. . .no surprise there

More than 155,000 families have lost their homes to foreclosure this year; one out of every 194 U.S. households received a foreclosure filing.

If you live in the Southwest; Nevada, California, and Arizona. . .congrats, you live in the hardest hit areas since they lead the nation in foreclosure filings. Prices ran up due to speculators snapping up everything they could as investments.

OT: UCF Students use homemade gas to power cars

Some University of Central Florida students are fighting rising fuel costs by converting fast food grease to fuel. Definitely not a new concept (I've read similar stories over the years) but always cool to hear about student ingenuity. The cost per gallon? Roughly 80 cents!

Something else interesting in the article-Florida law demands a 29 cents per gallon tax. Still, paying about a $1.10 a gallon sure beats $3-$4+.

Land issues? Just build on water.

A Dutch construction company has begun building homes on water due to land scarcity in the Netherlands. They have completed the first 8 of a 500 planned floating home community on the outskirts of Amsterdam. The houses are designed to withstand gales and are built on floating platforms. And the idea is apparently catching on as there appears to be 5,000 names on a waiting list for one of these floating homes.

I guess having a good plumber on speed dial will be crucial for this builder. Other potential issues? How about banks tracking down a foreclosure that floated away in the middle of the night? I guess you could just install a GPS tracking system. Or instead of stealing your TV, I guess crooks could literally just steal your house if you are away on vacation.

Out of the Box Sales Strategies of Homeowners

Feng shui, e-bay, house swapping, and "Cupid's Condo"?!? With a flooded market, homeowners are getting creative. Just check out this story from Money Magazine.

Office Trip to Disney

SMA's Orlando office took a break from work on Wednesday for some bonding. The morning was highlighted with a segway tour of Epcot, and aside from a minor segway accident involving Travis and myself, was a blast. The rest of the day was spent touring Epcot and eating. Tip for amateur eaters out there, don't eat funnel cake with powdered sugar down wind-the sugar will get you everytime.

Production Woes?

SMA Consulting (www.smaconsulting.net) is hosting a Production Management Conference on May 14-15, 2008 and a Super Superintendent Workshop on May 16, 2008 in Orlando, Florida.

Mortgage Bailout for Homeowners on the Brink

With foreclosures on the rise, homebuilders should keep a wary eye on potential legislation to remedy the situation. One such proposal, proposed by Rep. Barney Frank and Sen. Chris Dodd, calls for $300 billion in loan guarantees from the Federal Housing Administration to refinanca loans for homeowners on the brink of foreclosure.

CNN Money takes a closer look at this proposed plan and gives a decent account of the potential outcomes.

Why it may work:
-Will prevent 1.5 million foreclosures and halt home-price declines since it would keep more houses from flooding an already crowded market.
-Lenders would get back more money than if the homes foreclosed.

Why it may fail:
-Plan would transfer some risk to homeowners and lenders who were responsible.
-Some say the the best way to fix the housing crisis is for the free market to run its course, thus lowering entry level homes into a more affordable price range.
-A lack of rental units could really hurt us in the long-run if these foreclosures continue and there aren't enough affordable rentals in the market.

No easy solution obviously.