Flood Insurance Bill in Congress. AGAIN | You may loose it!

Right now, Congress is again debating whether to re-authorize the National Flood Insurance Program (NFIP), that expires on September 30th, 2011.

If it is not renewed, the real estate markets in many some areas could to a complete halt, unless this program gets re-authorized.

In a three year period, the NFIP has been set to expire time and time again. It’s time we stop the temporary fixes and give it a long-term extension, and I say for no less than 10 years.

We have all watched the photos of flood victims on television and real about it in the newspapers. American homeowners need the fallback Government Flood programs to obtain flood insurance when it is not available from the private insurance sector.

Do you know what happens every time the NFIP deadline draws near? Mortgage lenders stall closings to see what happens. Buyers run around begging insurance companies to write them a flood policy, and usually it's very expensive. Could you imagine how expensive it could get, if insurance companies knew the buyer had nowhere to go. Not having the government flood program will add even more uncertainty to our already lack luster real estate marketplace.

Maintaining available and affordable flood insurance for all Americans is vital to keeping the real estate market running smoothly in these circumstances.

Think flood insurance is just for homes located at waters edge? The truth is, that many of flood damaged homes that are covered by the by the NFIP program are not near the seashore at all, but located all around the country.

The NFIP programspends no taxpayer dollars, and recieves money from the payments it charges. It's not a freebee! No it's a safeguard.

Congress needs to set in place a long term program, and not keep playing with it on the short term. It's not like the weather is going to wait!

Halfway into 2011, and are Homes Selling any better, or is it worse? By: John J. Picciurro, Staten Island, NY Residential Sales Manager

2011… Halfway through the year, and what progress has the residential real estate industry made?

Well, now that we are into the Summer of 2011, buyers and sellers are still wondering what’s up with obtaining the American Dream of home-ownership, or should I say the lack of it.


My original Blog on this matter asked “Will 2011 be a better year in real estate home-ownership?” Foreclosures, loss of home equity, loss of jobs, these all have a negative impact on purchasing a house. AND THEY ARE STILL AROUND!

The complex issues that caused the real estate crisis in the beginning, are NOT being addressed adequately in my opinion. Even though Government regulations related to home buying have been relaxed some, the number of SOLD homes around the country, has not been rising enough to make much of a difference. And, in many sections of the country, they are stuck in hold.

Buyers with a fairly good down payment and reasonably good credit, have been successful in finding their next home, and negotiated a good deal with the seller. With mortgage rates again dropping slightly, they remain at nearly the lowest they have ever been in the past.

The FHA, with their 3 1/2% down payment loan has provided some excellent financing to home buyers too, especially first time buyers. However, appraisers are still struggling with placing values at the sale price of the home, because comparable sales can be hard to find.

Empty home foreclosures are sitting around for more than a year in many cases, with no one living inside them, or taking care of the grounds and dwelling, they are blighting the neighborhood, and contributing to lower property values around them.

Adding to the situation, the ongoing national debt ceiling crisis in Washington is still being debated, and until a budget is set, money movers will wait it out a little longer, before jumping in with their billions of dollars by pumping it back into the economy.

However, the real estate market is overly saturated with short sales and foreclosures. This is due to the fact that the underwater homes, and the bank foreclosure process is filled with detours and potholes. Foreclosures should be sold to new homeowners as quickly as possible, and become part of the viable community again. They should not become abandoned properties.

But, if a family is still in their home, and are trying to avoid a foreclosure, they should stay in their homes, and try to get the best possible outcome they can. Rushing out of a home, in my opinion is the worst thing you can do, given the fact that the bank moves so slowly, and charges continue to accumalate.

SO IS A BETTER MARKET ON THE HORIZON? Roll the dice, it's a 50/50 bet until Washington does something dramitic to make it happen. If anyone says that they can see into the future, and can predict where the real estate market is going, they they have the best crystal ball there is.

WHAT ELSE IS STALLING THE HOME BUYING PUBLIC FROM MAKING A DECISION TO BUY?

First, lets talk gas. We need to deal with the energy costs for gasoline for your car, to heating oil and gas for your home. They have been rising without no end in sight. With the media again turning it’s attention to future elections, and unrest around the world, our energy worries here at home are not being addressed properly. Whats more, any changes in our energy policy are so far down the road, it will not help the residental real estate market now, or in the near future. But don't think energy costs are not on the minds of potential home buyers. These costs are factored in, just like mortgage payments and real estate taxes.

This all this said, we’re on our own to budget ourselves carefully, so that home ownership can be a reality.

The system still works, and home-ownership is still a good possibility for many. Remember, the lending institutions are doing their part with great interest rates and low down payment loans, and that’s a good thing too!

So, I believe home ownership is still the right thing to seek out, all while taking advantage of the low rates and seller asking prices.

We here at V.I.P. Real Estate are optimistic about the rest of 2011, and look forward to a steady rise in the real estate market.

V.I.P. Real Estate, Inc.
John J. Picciurro
Sales Manager
Direct: 347 712-2190

4106 Hylan Boulevard, Staten Island, NY 10306 | 718 967-2600 Ext. 304