Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Fri, Mar 6 1992 Date: Fri, 6 Mar 92 05:54:04 EST Message-ID: 03-06 0000 DECISIONLINE: Real Estate USA TODAY Update March 6-8, 1992 Source: USA TODAY:Gannett National Information Network REVERSE MORTGAGES INCREASING: More private lenders are starting to offer reverse mortgages, whose popularity has jumped in recent years. Aimed at elderly homeowners needing income, reverse mortgages are like home-equity loans, but don't need to be repaid until the house is sold. Public housing agencies in a few states now offer the loans, but only for property tax payment and home repair. (For more, see special Loan package below.) RTC HOPES TO SELL MORE PROPERTY: The Resolution Trust Corporation, left holding large tracts of undeveloped land from the savings-and-loans crisis, is hoping to increase sales by waiving some its bidding rules, a main obstacle in the past. The land, remains from speculative building projects, accounts for nearly half of all real estate owned by the RTC. Much of the land is in suburban areas in Texas, California and Florida. SOME RTC BIDDING RULES WAIVED: At future Resolution Trust Corporation auctions, land worth less than $500,000 will be offered on absolute terms (requiring no minimum bid), says Gary Bowen, an RTC vice president. The RTC will also sell land valued up to $2 million for as little as 50% of its appraised value, down from 85%. The RTC will also offer seller financing with 15-year mortgages with only 15% down. DROP IN DELINQUENCIES REPORTED: The percentage of homeowners who were 30 days or more behind on their mortgages fell from 5.1% in the third quarter of last year to 4.8% last quarter, the Mortgage Bankers Association reported this week. New England, California and the South saw an increase in delinquency rates. Foreclosures hit their highest rate since 1987, climbing from 0.98% in the third quarter to 1.04% last quarter. FAMOUS HORSE FARM TO BE SOLD: The home of nine Kentucky Derby winners, Calumet Farm, which declared Chapter 11 bankruptcy-court protection last year, will be auctioned March 26. For auction are 843 acres of prime Kentucky land, a 14-room house, 15 barns, two race tracks and a state-of-the art veterinary center. ASSESSOR IS TARGET OF PETITION: A petition drive has begun in Littleton, Colo., to recall Assessor James Reeves, who was elected in 1990 and later ordered by the state to make reassessments after officials said he undervalued property by $200 million. The original assessments, which officials said were not criminal, raised residential tax burden. WIS. CONSIDERS TAX CONTROLS: Controls that would limit local property tax hikes to the rate of inflation were added by Wisconsin legislators to Gov. Tommy Thompson's budget bill. The public is "fed up" with the tax, a lawmaker says. Opponents say the controls ignore varying needs of communities. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.83% Thursday, unchanged from Wednesday but up from 8.82% the week before. They were at 9.40% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.93%, unchanged from Wednesday but up from 5.92% the week before. A year ago they were at 7.53%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 4.41% Thursday, unchanged from Wednesday but up from 4.37% the week before. A year ago they were at 6.40%. For the 11th District ARM index, rates were at 6.002%, unchanged from Wednesday and down from 6.245% the week before. A year ago they were at 7.858%. T-BONDS RISE: Treasury security rates for the 30-year bonds showed a rise Thursday, listing at 7.96%. That's up 0.05 from rates of 7.91% Wednesday, but up 0.12 from 7.84% the week before. A year ago T-bonds were at 8.21%. SPECIAL PACKAGE ON LOAN: FANNIE MAE MAY ADD LOANS: The Federal National Mortgage Association, now buying only reverse loans insured by the Federal Housing Administration, is considering buying more of the loans from lenders, which could increase the availability of the loans, says Ken Scholen of the Na tional Center for Home Equity Conversion. The FHA has strict limits on loan amounts. CENTER OFFERS LOAN INFORMATION: Information about lenders in specific areas is offered in "Reverse Mortgage Locator," from the National Center for Home Equity Conversion. Send $1 and a stamped, self-addressed envelop to NCHEC Locator, 1210 E. College, Room 300, Marshall, Minn. 56258. (End of package.) Real Estate Editor: Christopher Goldthwaite. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM