Residential Real Estate

NEWS - Residential Real Estate

SBJ Staff Report

Dec 19, 2011 - Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology, data and analytics to the mortgage and real estate industries, has reported the following "first look" at November 2011 month-end mortgage performance statistics this morning, derived from its loan-level database of nearly 40 million mortgage loans.

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure is now at 8.15%.  This is a month-over-month change in delinquency rate of an increase of 2.7%. The Year-over-year change in delinquency rate is down -9.6%.  But many foreclosures have been held up in 2011 as Bank of America and other major lenders have been in negotiations with the Attorney Generals of all 50 states in the U.S. over fraudulent mortgage practices in the past.   Mortgage processing and actions have been held up, in many cases.

The rotal U.S foreclosure pre-sale inventory rate jumped up 4.16% in November over October.
And, the year-over-year change in foreclosure presale inventory rate was up  2.0%.

The number of properties that are 30 or more days past due, but not in foreclosure in the U.S, is now 4,144,000, and the number of properties that are 90 or more days delinquent, but not in foreclosure stands at 1,809,000.  The number of properties in foreclosure pre-sale inventory: is at 2,116,000. Therefore, the total number of properties that are 30 or more days delinquent or in foreclosure is up to 6,260,000.

The states with highest percentage of non-current loans is FL, MS, NV, NJ, IL. At times, Georgia has been on this list.

Approximately 50 percent of all U.S. mortgages by dollar volume are serviced using LPS' loan servicing platform, MSP.

NEWS - Residential Real Estate

SBJ Staff Report

Dec 19, 2011 - The Georgia Board of Realtors urges its members and member companies to remember that effective January 2, 2012, the Georgia “Illegal Immigration Reform and Enforcement Act of 2011” requires all applicants for real estate licensure or appraiser classification, and those applying for renewal of an existing license or classification (including a broker or qualifying broker seeking to renew a real estate firm license or applying for a new firm license,) submit a “secure and verifiable document” for identification purposes as defined in the law, and a signed and sworn affidavit verifying the applicant’s lawful presence in the United State, to the Georgia Real Estate Commission (GREC).

According to William L. Rogers, Jr, Real Estate Commissioner, there are approximately 90,000 Realtors in Georgia and 5,000 licenses appraiser licenses that are affected by this change “though fortunately for us not all have to renew their licenses at the same time.”

The law also applies to appraisal management companies, schools, instructions and school directors.

If a license or classification is currently eligible for renewal, it may be renewed prior to Dec. 31 without submission of the additional documents at the this time, according to GREC. 

After January 1, the additional documents are required by the GREC prior to license renewal. And, the GREC must receive the additional documents by renewal deadline or the license cannot be renewed  and will lapse which requires the licensees to cease doing business, and which requires they pay a lapse fee to renew.

Instructions on how to submit this additional documentation can be found on the GREC’s website at www.grec.state.ga.us.

NEWS - Residential Real Estate

SBJ Staff Report

Nov 2118, 2011 – A respected leader in banking and home mortgage research, Lender Processing Services, Inc. (NYSE: LPS), has reported a ‘first look’ at October 2011 month-end mortgage performance statistics derived from the company’s loan-level database of nearly 40 million mortgage loans. 

The information is a critical component of understand the current and future status of the U.S. economy. 

As of October, the total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure) is now at 7.93%.  This is down 2% from September and down 14.6% from October 2010. 

The total number of U.S mortgages in what is termed ‘foreclosure pre-sale inventory rate’ was at  4.29%.  This month-over-month change in foreclosure presale inventory rate is up 2.5% over September, and is up 9.4% over September 2010. 

There are now 4,088,000 properties that are 30 or more days past due, but not yet in foreclosure.  Of those, there are now 1,759,000 properties that are 90 or more days delinquent, but not in foreclosure.                 

There are 2,210,000 properties in foreclosure pre-sale inventory.  Together, there are 6,298,000 properties that are 30 or more days delinquent or in foreclosure.

The states with the highest percentage of non-current* loans are Florida, Mississippi, Nevada, New Jersey and Illinois.  Georgia had previously been one of the highest in the U.S. 

The states with the lowest percentage of non-current* loans are Montana, Wyoming, South Dakata, Arkansas and North Dakato.

Approximately 50 percent of all U.S. mortgages by dollar volume are serviced using LPS' Mortgage Servicing Package (MSP). LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries.

NEWS - Residential Real Estate

SBJ Staff Report

Nov 14, 2011 - The Ford Plantation in Richmond Hills has announced the hiring of Nick Cassala as CEO and General Manager, an accomplished real estate, resort and club executive, according to the residential community’s management company.

In his new position, Cassala will oversee service for Ford Plantation members, serve as a key partner with the community’s board of directors and offer strategic leadership for all club business. He brings more than 25 years of experience in real estate development and club management to his position at The Ford Plantation, according to Club President Bill Coad.

“The search committee was tasked with finding an individual with strong financial acumen and vast knowledge of marketing and sales in a club environment,” said Coad. “As the search process went on, it became clear that Nick was the perfect choice for this position. We are delighted to welcome him to The Ford Plantation and know our members will be extremely impressed with his professionalism, warmth, insight and experience.”

Before joining The Ford Plantation, Cassala served as the President of Residential Development for The St. Joe Company in Jacksonville where he was responsible for management of several highly amenitized residential communities, as well as long-range planning for future development opportunities.

During his career, Cassala has held senior executive positions with various elite clubs and resorts including Chief Operating Officer and General Manager at Radley Run Country Club in West Chester, Penn.; Vice President and General Manager at The Deerwood Club in Jacksonville, Fla.; and General Manager at Weston Hills Country Club in Weston, Fla.

He has a B.S. in Accounting from the University of Florida in Gainesville, Fla. and is a certified club manager and a member of the Urban Land Institute.

“The Ford Plantation is renowned for its excellence as a Southern sporting club and Low Country community,” said Cassala. “I am excited to be part of its illustrious history and tradition.”

The Ford Plantation community is an 1,800-acre site overlooking the Ogeechee River with amenities that include a Pete Dye golf course, a deep water private marina, coastal sport fishing, stocked natural lakes, sporting clays, an equestrian center, tennis, a fitness center, pools, canoeing, kayaking, walking and hiking trails, a full service day spa, and full-service food and beverage operations.

Travel + Leisure Golf has repeatedly recognized The Ford Plantation as one of “America’s Top 100 Golf Communities.” Town & Country magazine also named The Ford Plantation one of the “top seven safe havens in the country,” according to the company.

The Ford Plantation is located on the site of the former antebellum rice plantation owned by automobile magnate Henry Ford who built his winter retreat on the property in the 1930s.

NEWS - Residential Real Estate

By Lou Phelps, SBJ Staff

Nov 14, 2011 - In business, one company’s loss can be another’s gain. As Cora Bett Thomas Realty company goes through a major transition period, one of the company’s primary competitors – Seabolt Brokers of Savannah - appears to be benefitting.

And, once again, a series of changes are pitting two of the city’s leading and legendary woman Realtors against each other, Cora Bett Thomas and Elaine Seabolt. Seabolt is the former president and Chief Operating Officer of Thomas’ firm.

Last week, the majority of Thomas’ residential agents associated with the company’s Savannah office – and Thomas’ top producers - resigned and joined Seabolt Brokers, a company Seabolt founded in 2006. As Seabolt Brokers has grown, the company relocated to its current offices at 1015 Whitaker St. two years ago, now facing Forsyth Park. As of Friday, Seabolt Brokers now has 36 Realtors associated with the firm, up from 23 only a week ago.

And, Seabolt Brokers was selected two weeks ago as the new residential real estate partner of Christies Great Estates after Christie’s ended its relationship with Thomas’ firm as of Monday, October 31. 

Joining Seabolt Brokers last week were Patricia Bishop. Melinda Martin Bailey, Ruth Seese, Peter Nelsen, Stephanie Wilson-Evans, Jeanne Saussy, Emily Saussy, Victoria Turner , John Maxwell , Betty Pinckney, Debora Smith, Karen Washburn and Helen Duffy. 

In addition to residential real estate, Seabolt Brokers also has a property management division headed by Angie Smith and Mark Haslam, and a commercial real estate practice led by Margie Gordon. Gordon has handled many of the commercial sales that have transpired in Savannah’s historic district in recent years, Seabolt adds.

But don’t count Cora Bett Thomas out just yet. When you think about the top realtors in residential real estate – the big deals - Cora Bett Thomas’ name is at the top of anyone’s list, leading a company she founded in 1995. She has ridden the wave of residential real estate growth in the region for the past fifteen years.

In 2008, even as the residential business began to decline, she formally expanded to Beaufort County, purchasing two residential real estate companies there, and opening a Cora Bett Thomas Realty office at 707 Bay Street in Beaufort, still operating.

But, Thomas’ firm is dealing with the dramatic downturn in residential real estate business on a number of levels, forced to restructure her company. On November 1, her headquarters at 24 E. Oglethorpe Street which she owned was lost in a foreclosure, purchased by the lending bank. Thomas said told other local media in the Savannah area that she is working with the bank to try to repurchase the property. And, her remaining Realtors have been told that no date for leaving the property has been set.

Thomas attributes part of her difficulties as due to a law suit with her former partner, Atty. Ronnie Cohen, according to an interview she gave last week.

The company’s Cora Bett Thomas Property Management office on York St, overseen by Therese Garafola, is still going strong, according to sources close to the company. And, Thomas’ commercial real estate team is still intact, operating from the Oglethorpe Street address for the time being. Several of her residential Realtors in the Savannah office have also remained with her company.  The company is alive and kicking. 

Compounding the last several years of downturn and struggle, Thomas contracted West Nile encephalitis this past summer after a trip up North, and she only recently returned home to Savannah after an extended stay at Candler Hospital in Savannah, and then Johns Hopkins Medical Center in Baltimore. The Savannah Morning News reported that Thomas says she is back at work, though she acknowledges that she still has a road ahead of recovery.

Seabolt is Looking Forward

Seabolt takes no pleasure in Thomas’ difficulties, and instead prefers to focus on what her team has accomplished during the difficult past five years, as well as what is ahead for her company.

She says that she did not solicit Thomas’ agents. “Once the agents learned that she had lost the Christie’s designation on Monday, and the office on Tuesday (Nov.1), they started calling me,” said Seabolt. “I learned that she had lost the Christie’s luxury designation, and I contacted them, and picked it up Nov. 2....They terminated the agreement with Cora Bett Thomas Realty. They had started the process of termination with the firm awhile ago, I learned.”

Seabolt Brokers is also part of Harry Norman properties, nationally, and the luxury portfolio at www.LuxuryPortfolio.com. “I picked up the Christie’s luxury designation she lost,” she explained.

Two years ago, when Seabolt moved her team into their offices on Whitaker Street,  she thought it would be more than large enough. “But now,” she said, “we’re sitting on top of each other right now. But when we’re finished, we’ll be fine. We have to rework the space – we’re going to have to double up." 

“They like the synergy of it all, I think, of us being there together. It’s been a crazy week, of course. Most brokers get an agent here and there – I got 13 at one time!” she added.

While she’s looking forward, she would also like to set the record straight. Despite rumors to the contrary, Seabolt, who was with Thomas’ firm for ten years as a Realtor, the company’s Executive Vice President, and then a year as President and COO, makes clear that she resigned from the firm. “I called her (Cora Bett) on a Saturday, and we met with her at her home on a Sunday. I told her it was time for me to leave. I quit. I was not fired,” she explained. “It’s now come full circle,” Seabolt said Sunday night, in an interview with the Savannah Business Journal.

“I created a company in a very difficult time. I have a great team. I kept my door open, and I stayed under the radar,” Seabolt said. ”Five years ago, I had a lot of bankers and CPA’s tell me that ‘this is the worst time to start a real estate company.’ But, I just stayed focused. I didn’t take anything from anybody – others lost it.”

Looking ahead, she said her goals remain consistent. “What we really want to do is to continue to establish ourselves as a first class, boutique real estate company. We’re not trying to be a large company like Keller Williams. We want to have the top agents, and have a creative, nice business. We feel better now that many of us are back together,” she summarized.

NEWS - Residential Real Estate

SBJ Staff Report

Oct 13, 2011 – The first resident to move into Savannah Gardens moved in last Friday.  Savannah Gardens is the largest affordable housing project the City of Savannah has ever participated in, addressing residential real estate needs of Savannah's less affluent.  

Savannah Gardens is located along Pennsylvania Avenue, south of Savannah High School. Savannah Garden’s first official resident is Johnnie Mae Pollard, a lifelong Savannahian who has lived in Strathmore Estates for more than a decade. She was interviewed by members of the local media on Friday in an event arranged by the City, along with local officials. 

Also on hand was master developer CHSA Development Inc., and end developer Mercy Housing. Phase One of Savannah Gardens will be completed in a few weeks with a large dedication ceremony planned for Nov. 2.

While Phase One is still an active work site, residents are being moved into units that have received their certificates of occupancy.

The project got underway in late 2007 when the City of Savannah partnered with CHSA Development Inc. to purchase the aged, 45-acre Strathmore Estates which flanks both sides of Pennsylvania, and redevelop in into an unprecedented affordable housing community on Savannah’s eastside. When complete, the development will feature more than 550 units of apartments and single-family homes complete with retail and landscaped parks.

Savannah Gardens features the latest in environmentally sustainable design and building techniques, and uses energy efficient appliances that will save residents money. While only the first phase of this multi-phase project is near completion, it is already transforming the far eastern edge of Savannah, according to Bret Bell, spokesperson for the City.  Residents now living in the old Strathmore Estates on the east side of Pennsylvania will receive the first units at Savannah Gardens.  Johnnie Mae Pollard is one of these residents.

NEWS - Residential Real Estate

Oct 10, 2011 - Mayor Bronco Bostick , Councilman Sal Arzillo, Councilwoman Sherry Carroll and Councilman Roy Powell, members of the Hardeeville City Council, have a released a joint press release. Their message: they are “very excited about the new mixed use retail and housing development planned for a 300 acre parcel of land within the city limits.”

The mixed use development, announced last week to local media, is projected to be completed in various phases over an eight year period. When fully developed, the development will increase the city’s tax base by more than $150 million, according to the community leaders.

“The Mayor and City Council members have heard of expressions of interest for many years for this property although nothing concrete ever materialized. Now with the Gateway Crossing project, there is a real venture about to take shape that will change the face of the City and southern Jasper County,” they said today.

“Mayor Bostick sees the project accomplishing a number of development objectives that have been dear to his heart for a long time. Most exciting for the Mayor is what he considers to be genuine efforts to address the lack of affordable housing in the area. Having lived in the area for many years, the Mayor is keenly aware of the housing market and the tendency to label new housing as ‘affordable’ when, in reality, it is not. He and Council have extracted a strong commitment from Ralph Braden and the other principals of Gateway Development Partners to build housing that is truly affordable. The developer pledges that the majority of the for sale units will be at a price of $90,000 to $120,000. These prices are considerably below the price of new construction currently available in this market,” the release states.

The housing units will be LEED Certified to further reduce ownership costs, and the developer has pledged to build up to 300 ‘below market rate’ rental units that will also be LEED Certified.

“Council knows that the temptation to build more expensive units can be very strong. The commitment of Braden and his partners to build truly affordable housing was critical to securing Council’s support,” the four leaders added.

“Councilmen Arzillo, Carroll and Powell also appreciate the retail component of the project. The project will bring a full service grocery store, pharmacy and other retail operations to that section of the city. These new businesses will not only pay taxes but will provide jobs and convenience to people living and working in the new development,” they added.

Gateway Crossing will focus on housing and amenities that are targeted at an older population, as well, similar to residents attracted to the successful Del Webb development in Bluffton. “The project will provide senior housing that will allow occupants to move seamlessly from independent to assisted living with appropriate healthcare support,” they add.

“The invitation to Beaufort-Jasper-Hampton Comprehensive Health services to open a satellite clinic and to manage a wellness center on the property is a great idea. Both acknowledge and appreciate the value of preventative healthcare.

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NEWS - Residential Real Estate

By Lou Phelps, SBJ Staff

Sept 19, 2011 – The U.S. Department of Housing and Urban Development (HUD) awarded Georgia over $1.8 million in grants on Friday to help public and assisted housing residents find employment; connect with needed services; and help the elderly and people with disabilities maintain independent living.  Chatham County received a large portion of the funds. (See Chart.)

The funding also allows the grantees to retain or hire service coordinators or case workers to work directly with these HUD-assisted families to connect them to the supportive services that meet their individual needs.  In total, the funds are projected to create 650 jobs nationally.

The funding announced Friday is part of approximately $35 million from combined sources including the Resident Opportunities and Self Sufficiency Service Coordinators Program (ROSS-SC) Program; approximately $15 million through the Public Housing Family Self-Sufficiency Program (PH-FSS); and $45 million through the Multifamily Housing Service Coordinator Program (MHSC). 

Providing housing assistance alone is often not enough to help individuals increase their independence,” according to HUD Southeast Regional Administrator Ed Jennings, Jr. “”The service coordinators funded through these programs open doors that help HUD-assisted families find jobs, access services and assist the elderly and disabled to continue living as independently as possible in their homes.””

The ROSS-SC and PH-FSS programs allow grantees across the U.S. hire or retain service coordinators to work directly with residents to assess their needs to connect them with education, job training and placement programs and/or computer and financial literacy services available in their community to promote self-sufficiency.  Only public housing authorities are eligible for PH-FSS grants.  ROSS-SC grants can be awarded to public housing authorities, resident associations and non-profit organizations.  Grantees that receive ROSS-SC grants can also use the funding for this purpose, which allows the elderly or persons with disabilities who live in public housing to maintain their independent lifestyle.

In a similar fashion, the MHSC program provides funding to owners of private housing developments under contract from HUD to house low-income individuals. These owners, or their management companies, hire or contract service coordinators with backgrounds in providing social services, especially to the elderly and people with disabilities, to assist their residents with special needs.  

Combined, HUD estimates this funding will allow the grantees to hire new employees or retain approximately 650 service coordinators that are currently working with HUD-assisted individuals.

The purpose of the ROSS-SC and PH-FSS programs is to encourage local, innovative strategies that link public housing assistance with public and private resources to enable participating families to increase earned income; reduce or eliminate the need for welfare assistance; and make progress toward achieving economic independence and housing self-sufficiency.

Public housing residents who participate in the PH-FSS program sign a contract with the housing authority, which outlines their responsibilities towards completion of training and employment objectives over a five-year period.  For those families receiving welfare assistance, the housing authority must establish an interim goal that the participating family be independent from welfare assistance prior to the expiration of the contract.  During their participation, residents may create an escrow account funded with their increasing income, which they may use in a variety of ways, including continuing their education or making major purchase.

HUD’s Family Self Sufficiency (FSS) program is a long-standing resource for increasing economic security and self-sufficiency among participants.  HUD issued a new report earlier this year that evaluated the effectiveness of the FSS Program. Conducted from 2005 to 2009, the study shows the financial benefits are substantial for participants who remain and complete the program. This study is the second of a three-part series by HUD that evaluate the effects of the FSS program. The first study found individuals who participated in the FSS program fared better financially than those who did not enroll in the program. HUD’s Office of Policy Development and Research (PD&R) will launch the third and final installment to complete the series this year.

The Multifamily Service Coordinators (MFSC) program allows multifamily housing owners to assist elderly individuals and nonelderly people with disabilities living in HUD-assisted housing and in the surrounding area to obtain needed supportive services from the community, to enable them to continue living independently.  The grants are awarded for an initial three-year period to eligible owners of multifamily housing for the elderly or disabled, to enable them to hire and support a service coordinator.  The funds cover such costs as salary, fringe benefits, quality assurance, training, office space, equipment, and other related administrative expenses. A report HUD released in 2009 noted that aging in place reduces rates of premature institutionalization for low-income elderly residents, thus reducing the costs borne by taxpayers.