My New Blog

General Growth files for bankruptcy protection

April 16th, 2009 10:35 AM

General Growth files for bankruptcy protection

By Ilaina Jonas and Emily Chasan Ilaina Jonas And Emily Chasan 1 hr 49 mins ago

NEW YORK (Reuters) – General Growth Properties Inc, the second largest U.S. mall owner, filed for bankruptcy protection on Thursday in one of the biggest real estate failures in U.S. history.

Ending months of speculation, the Chicago-based mall owner, which listed total assets of $29.56 billion and total debts of $27.29 billion, sought Chapter 11 bankruptcy protection from creditors along with 158 of its more than 200 U.S. malls, while it seeks to restructure some of its debt.

Since November, General Growth has warned that it may have to seek protection from its creditors when it was unable to refinance maturing mortgages.

The company said in a statement that it planned to continue exploring strategic alternatives during the bankruptcy protection, from which it is seeking to emerge as quickly as possible through a reorganization that preserves its national business.

General Growth's filing in the U.S. bankruptcy court in Manhattan makes it one of the largest nonfinancial companies to succumb to the financial crisis in the U.S.

Before the bankruptcy protection filing, the company had defaulted on several mortgages as well as a series of bonds. It has also put several of its flagship properties up for sale.

Analysts and other real estate experts have speculated that mall owners Simon Property Group Inc and Westfield Group would be interested in buying some of General Growth's assets from bankruptcy.

General Growth has been generating enough cash flow for the company to pay monthly interest costs and expenses, but it has been unable to refinance the principal of loans and mortgages as they come due because banks and other financing sources have been reluctant to issue large mortgages and loans.

"Our core business remains sound and is performing well with stable cash flows," General Growth Chief Executive Adam Metz said in a statement.

"While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11."

General Growth has received a commitment for a debtor-in-possession financing facility of about $375 million from Pershing Square Capital Management LP, as agent.

The hedge fund run by William Ackman also owns about 25 percent of General Growth shares.

Ackman, who has been urging General Growth to file for bankruptcy protection, described it as "a great company" with "phenomenal assets" at a conference on April 2.

At the end of 2008, about $15.17 billion of General Growth's debt was comprised of mortgage loans that had been securitized into commercial mortgage-backed securities, according to research firm Trepp.

"This underscores that real estate companies are most vulnerable to refinancing risk rather than market risk," said Nomura's London-based property analyst Mike Prew. "The U.S. insolvency process is, we think, a cure for General Growth's liquidity problems, which stem from external factors, and not a traditional bankruptcy per se."

Shares of General Growth have deteriorated as the credit crisis worsened. They closed at $1.05 in the United States on Wednesday, making the company's market capitalization $283.90 million, down from $11.l8 billion when it traded at a 12-month high of $44 in May.

So far, fallout from the General Growth bankruptcy has not hit European mall owners. Europe's biggest mall owner, Unibail Rodamco, was trading up 2 percent at 118.69 euros, while Anglo-French retail specialist Hammerson edged up 0.2 percent to trade at 307.75 pence.

HIGH QUALITY MALLS AND TENANTS

The Chicago-based company started when brothers Martin and Matthew Bucksbaum decided to expand the family grocery business and build a shopping center in Cedar Rapids, Iowa, in 1954.

It grew by new development as well as by acquisitions, the largest being the 2004 purchase of Rouse Cos for $14.2 billion. Rouse brought the company 37 of the highest-quality and most valuable malls in the country, including Fashion Show in Las Vegas and Faneuil Hall Marketplace in Boston.

General Growth's refinancing troubles in the frozen credit markets led to the firing of former Chief Financial Officer Bernard Freibaum in October. John Bucksbaum, who succeeded his father Matthew in 1999, stepped down as chief executive the same month, although he remained chairman.

In recent months, the new management team under Metz has been wrestling with loan after loan coming due, bargaining for extensions. As of the end of 2008, General Growth had $1.18 billion in past due debt and an additional $4.09 billion of debt that could be accelerated by its lenders.

Earlier this month, the company had been seeking to restructure $2.25 billion of Rouse bonds, offering bondholders a percentage on their bonds if they allowed the company to skip interest payments and principal until the end of the year. But the company failed to garner the necessary support it needed.

General Growth said several of its other subsidiaries in addition to the malls were also placed into bankruptcy protection, while several properties that are part of joint ventures were unaffected.

The company has hired law firms Weil Gotshal & Manges and Kirkland & Ellis to represent it, according to court papers.

The case is In re: General Growth Properties Inc, U.S. Bankruptcy Court, Southern District of New York, No. 09-11977.

(Reporting by Ilaina Jonas, Emily Chasan and Sinead Cruise in London; editing by Elaine Hardcastle and Lisa Von Ahn)

Posted by Christian Bennett on April 16th, 2009 10:35 AMPost a Comment (0)

Just Listed! 10443 Miracle Ln New Port Richey, FL 34654

April 28th, 2009 3:51 PM

$324,900.00
10443 Miracle Ln

New Port Richey, FL 34654

Beds: 6.0	Rooms: 0
Baths: 4.00	Sq. Ft.: 3274.00
Garage: 0	Built: 2002

This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.

If you have any questions
about this property or
require more information,
please feel free to call.

Christian Bennett
Christian Bennett, P.A. Prudential Tropical Realty
7278584588
www.cbennettpro.com

Visit this listing at Here

Posted by Christian Bennett on April 28th, 2009 3:51 PMPost a Comment (0)

Please Vote Trinity Elementary for Cool School FOX 13 , Thank you!!!

April 21st, 2009 10:58 PM

> > Please vote on the link below for Trinity Elementary School to be the
> > COOL SCHOOL OF THE WEEK!
>> We are a little behind, so please vote, it only takes 5 seconds!!
>>
>>
>> http://myfoxtampabay.varsitynetworks.com/
>>
>> Thanks!
>>
>>

Posted by Christian Bennett on April 21st, 2009 10:58 PMPost a Comment (0)

CHAMPIONS CLUB UPDATED CMA & LISTINGS APRIL 2009

April 21st, 2009 12:02 AM

RES - Buyer Full Report
RES - Line Item Report

http://pro.mlxtempo.com/Pub/EmailView.asp?r=260021073&s=PRO&t=PRO&g=1>

Best Wishes,

Christian Bennett, REALTOR^®

Fine Home Specialist/Multi-Million Dollar Producer

Prudential Tropical Realty

Trinity Office

3126 Little Rd

Trinity, Fl 34655

Office (727) 847-4444

Fax (727) 847-1802

Direct/Cell (727)858-4588

WWW.ISELLCHAMPIONSCLUB.COM

Posted by Christian Bennett on April 21st, 2009 12:02 AMPost a Comment (0)

FHA guidelines regarding property flipping

April 18th, 2009 1:53 PM

Here are the FHA guidelines regarding property flipping

Seller is owner-of-record 90 days or less

The property is not eligible for FHA financing. FHA requires the seller to be

owner-of-record for at least 91 days. Some entities are exempt from the 90

day rule. See exemptions below.

Seller is owner-of-record Between 91 and 180 days

If the seller has owned the property between 91 and 180 days and the new

sales price exceeds the seller's purchase price by 100 percent or more,

additional documentation (a second appraisal) is required to support the

increase in value. (If the property is re-sold for $80,000 within six months of

the seller's acquisition of the property at $40,000, additional documentation is

required to support the new price.) Additional information on the second

appraisal is provided below. Some entities are exempt from both the 90 day

ownership rule and the 91-180 appraisal rule. See exemptions below.

Seller is owner-of-record 181 days or more

The owner-of-record must be verified.

Stacey D. Van Schenck

Mortgage Consultant

Capstone Home Mortgage, LLC

An Affiliate Of Wells Fargo Home Mortgage

MAC M1965-011

3126 Little Road

Trinity, FL 34655

(727) 842-6275 Tel

(866) 425-6407 Toll Free

(866) 406-7661 Fax

https://www.homeloans.com/wfhm/stacey-vanschenck/index.page

Posted by Christian Bennett on April 18th, 2009 1:53 PMPost a Comment (0)

Fannie Mae Update

April 16th, 2009 1:26 PM

Great news! Fannie Mae now allows seller held seconds up to 95% cltv. The first with Wells Fargo is 80% and the second can be up to 15% with the seller. The cap on seller concession for 95% cltv is 3%. There will be no PMI. Here are the guidelines on the second

1.Term must be a minimum of 5 years

2. Can be amortized or I/O

3. Rate must be within 2% of what we could offer on a similar sized loan through WFHE

4. Must be a recorded 2nd cannot be forgivable or soft 2nd

5. Must include 2nd mortgage payment to qualify on WFHM 1st mortgage

This is great news for your buyers with a credit score less and 700 and do not have the 20% to put down.

Please let me know if you have any questions.

Stacey

Stacey D. Van Schenck

Mortgage Consultant

Capstone Home Mortgage, LLC

An Affiliate Of Wells Fargo Home Mortgage

MAC M1965-011

3126 Little Road

Trinity, FL 34655

(727) 842-6275 Tel

(866) 425-6407 Toll Free

(866) 406-7661 Fax

https://www.homeloans.com/wfhm/stacey-vanschenck/index.page

Posted by Christian Bennett on April 16th, 2009 1:26 PMPost a Comment (0)

2009 PTR YTD ACTIVITY

April 16th, 2009 10:36 AM

Better still is that PTR’s first quarter production figures have just been compiled and reflect even more good news. During the time period of January – March, 2009 Prudential Tropical Realty enjoyed a 20 percent increase in pending dollar volume. Even more encouraging is that the company saw an increase in closed dollar volume of approximately 39 percent.

2009 PTR YTD ACTIVITY

Month	Pending Volume	Units	Closed Volume	Units

January	$48,075,286	295	$27,748,261	188
February	$56,642,886	352	$40,883,258	231
March	$60,022,291	388	$45,469,020	289

This latest trend may be an indication that buyers are now realizing what we – their real estate experts—have been saying all along: ‘now is the BEST time to buy.’ A better understanding of true market value, coupled with the lowest mortgage interest rates in more than 30 years, have at long last motivated buyers to move off the fence and buy.

Furthermore, according to a February report produced by the Greater Tampa Association of Realtors, the Tampa Bay area is now experiencing a nine month supply of housing inventory. This is a significant improvement over the same time period in 2008 during which there was a 14 month supply of homes.

Says Polito, “Prices are down where they need to be… we’re arguably pretty close to realistic home values.” Polito estimates that the market will show signs of stability sometime in the second half of the year.

Posted by Christian Bennett on April 16th, 2009 10:36 AMPost a Comment (0)

BANK OWNED and Pre-Foreclosures Properties

April 10th, 2009 12:30 AM

EMAIL ME: CBennett@Prutropical.com or call 727-858-4588

For a free list of BANK OWNED and Pre-Foreclosures Properties

If you have been thinking about buying or selling a home please call me. Receive a free Home Market Analysis, no obligation. Also, I can help with Investment Properties, REO, SHORT SALES, New Home Construction, Waterfront, & much more. I am dedicated to give you the best service possible and to make all your real estate transactions run smoothly….

Delivering A World Class Experience...One Client at a Time.

Posted by Christian Bennett on April 10th, 2009 12:30 AMPost a Comment (0)

Top 10 Home Buying Tips For Short Sales – A Guide To Understanding Short Sale Foreclosure Real Estate

April 8th, 2009 11:43 PM

Top 10 Home Buying Tips For Short Sales – A Guide To Understanding Short Sale Foreclosure Real Estate

by Todd Foust and Jennifer McNamara - Wed, Apr 8, 2009

Provided by Realty Times

ARTICLE TOOLS:

Modern homebuyers will inevitably come across one or more properties currently classified as a short sale. A short sale is an attempt by the current owner to sell a home in lieu of the bank taking it back through foreclosure proceedings, thus partially salvaging their credit rating and lifting the burden of heavy mortgage debt. The entire short sale process hinges on the hope that the bank will take a loss now, approve the sale, and eliminate the costly process of foreclosing, clearing, and reselling a home. Obviously, this is a big hope on behalf of prospective homebuyers as well and they need to understand some things in order to lessen the chance for disappointment of unapproved short sales. This is what they should know:

1. Price is usually set by the agent & seller, not bank: The agent and seller often create a very low asking price in order to attract buyers. The bank is normally unaware of the asking price; however, the bank has the final say in what an acceptable offer will be. Since the bank has the power to ultimately accept or deny offers, their lack of price awareness often leads to the process taking longer than anticipated. The bottom line is that the buyer needs to remain positive and patient throughout the entire process, sometimes even for months.

2. Loans owned by 1 bank usually better than 2: If the seller has loans owned by two different banks it is a lot more difficult to approve the short sale. This is something the agent or the buyer cannot control; it simply depends on the willingness of the bank or banks involved. While the reasons are beyond the scope of this guide, buyers should know that when the seller only has loan(s) with one bank the short sale often becomes more buyer-friendly. A savvy Realtor can let you know this type of information.

3. Lowball offers get slow or no response: Remember that the bank is typically unaware of the pricing during a short sale. When lowball offers stream into the bank they are often scoffed at and rejected, giving the prospected buyers little or no feedback. Surprisingly, it may also take painstakingly long to hear back even on good offers due to the high volume of transactions lenders are inundated with these days.

4. Agent must check comparables before submitting offer: The agent must be sure to check recent home sales in the area to give buyers a better idea of the properties that are selling. This will give the agent and the seller appropriate grounds for an asking price that will be more likely to be approved by the bank. Checking comparables will also give the buyer a better knowledge of what price homes in the neighborhood are selling for and ultimately make them a more informed homebuyer.

5. Don't hang your hat on the property: Short sales aren't necessarily "short." It can sometimes be a very long process. Don't get your hopes up for just one property, keep your options open and continue to actively look at multiple properties. Buyers must remain optimistic, the right property will come along. In most areas it is completely legal and risk-free to have multiple offers out at any given time with the proper contingencies.

6. Sellers with other properties or too strong of financials may not qualify for short sale and/or may be asked to pay the difference: Sellers that own more than a handful of properties or have an extremely large net worth will probably not be eligible for short sale. In some cases the seller will be asked to pay the difference of the sale. The seller might even need to sign a promisary note stating that they will pay back all or most of the debt. This has virtually no effect on the buyer as long as the seller cooperates.

7. "Approved" prices are quickest: It is important to remember that short sales are not always timely; however, making an offer on an "approved short sale" can be a quicker process. An "approved short sale" has a price that has already been given the green light by the bank. This could be due to the fact that another interested buyer made an offer that was approved, but didn't end up buying the property. These types of short sales are some of the most highly desirable.

8. Some banks look want strongest buyers, some want strongest offers: The bank has all the power in approving short sales. The bank can pick the most appealing buyer, which may mean different things to different banks. Some banks may prefer the buyers with large down payments while others just want the highest price regardless of down payment. Many buyers want to know if they will get a deeper discount for an all cash offer. This is very hard to predict and one will never really know until they make an offer. As long as the buyer is surrounded by a good team we would advise them to do just that.

9. Repairs are seldom done, credit is more frequent: If there are improvements that need to be made on a home, even if they are necessary to get a loan, it is often unlikely that they will be done. Typically there is some sort of credit issued and the buyer must take the responsibility of fixing anything that is broken.

10. When you get approval, must close on time: During a short sale there is no leniency with the closing escrow date as there often is in a traditional sale. During a short sale, exceptions are rarely made and the buyer must close on time. Because of this, it is important to take care of all loan paperwork immediately after opening escrow. We'd advise buyers to be extra prepared and try to have the loan finalized a few days in advance of the closing date. If there is going to be an issue that will prevent closing on time, a request for an extension will need to be made immediately. If the request is made early enough, many banks will grant an extension but don't just assume it will happen.

Short sales can be a great opportunity to find your new home at a competitive price. A Short sale could also be a major headache that lasts for months. It is important to have a good understanding of the factors that lead to a successful short sale to make it an enjoyable and profitable experience. We hope that these tips will help you to remain positive and optimistic throughout the process.

About the Author: Todd Foust is the chief marketing executive for the FOUST Team at C21 Discovery; one of the top-selling real estate teams in Southern California. He specializes in Orange and Los Angeles Counties and operates one of the area's most informative real estate websites. To contact him or learn more about Anaheim real estate , please visit FOUSTonline.com .

About the Auther: Jennifer McNamara works as a creative marketing contributor/manager for the FOUST Teams public relations division. She is a Southern California native and specializes in translating complicated real estate knowledge into user-friendly information for local homebuyers. Today's Local Market Conditions Report

Posted by Christian Bennett on April 8th, 2009 11:43 PMPost a Comment (0)

Champions Club Update April 2009

April 8th, 2009 11:39 PM

RES - Buyer Full Report
RES - Line Item Report

http://pro.mlxtempo.com/Pub/EmailView.asp?r=1104476013&s=PRO&t=PRO&g=1

Posted by Christian Bennett on April 8th, 2009 11:39 PMPost a Comment (0)

Mortgage rates at all-time low

April 3rd, 2009 11:25 PM

Mortgage rates at all-time low

Alan Zibel, Associated Press

Friday, April 3, 2009

(04-03) 04:00 PDT Washington -- Rates on 30-year mortgages fell to the lowest level on record for the second consecutive week after the Federal Reserve began a new effort to assist the staggering U.S. housing market.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.78 percent this week, from 4.85 percent last week.

It was the lowest in the history of Freddie Mac's survey, which dates back to 1971. Rates are down by more than a full percentage point from a year ago.

"Mortgage rates followed other interest rates lower this week amid reports of slower economic growth" Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

Low rates have sparked a rise in refinancing activity. The Mortgage Bankers Association said Wednesday that its weekly application index climbed 3 percent for the week that ended March 27, on top of a 30 percent increase a week earlier. Nearly 80 percent of applications came from borrowers seeking to refinance.

Mortgage rates fell dramatically over the winter and dropped further after the Federal Reserve said last month it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.

Lenders, however, have tightened their standards dramatically over the past year, so the best rates are available only to those with solid credit.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

The average rate on a 15-year fixed-rate mortgage dropped to 4.52 percent this week, from 4.58 percent last week, according to Freddie Mac.

Rates on five-year adjustable-rate mortgages fell to 4.92 percent, from 4.96 percent last week. Rates on one-year ARMs fell to 4.75 percent, from 4.85 percent.

Posted by Christian Bennett on April 3rd, 2009 11:25 PMPost a Comment (0)