Wondering what the worst housing markets in the country are? Wells Fargo has made a list.

Wells Fargo–the
second-largest U.S. provider of home loans–denoted "soft,"
"distressed" or "severely distressed" markets in 24
states and Washington, D.C. in a document sent to mortgage brokers this week, according to Reuters. The list identified more than 200 troubled markets.

Wells Fargo will restrict lending in those areas starting tomorrow, by limiting loan size to a percentage of home values–no matter how safe the borrower seems.

The markets include:

• At least 33 risky markets in California, with a minimum of 20 counties,
  including Los Angeles and San Diego, labeled as being in severe distress.

• Thirty-three high-risk markets in Florida and 15 in Michigan
  and Virginia. Maryland and Ohio have 13 at-risk housing markets apiece.

• Worrisome markets in Arizona, Colorado,
  Connecticut, the District of Columbia, Illinois, Louisiana,
  Massachusetts, Minnesota, Missouri, Nevada, New Hampshire, New
  Jersey, New York, Oregon, Pennsylvania, Rhode Island,
  Washington, Wisconsin and West Virginia.

Wells Fargo is a large lender, so further restrictions could mean tough times for troubled homeowners in at-risk markets trying to refinance. It’s not likely to help buyers dig into that bloated housing supply–which the Commerce Department revealed Wednesday had swelled to a 9.9 month supply, the largest in more than 26 years–in those areas, either.

The new Freddie Mac, Fannie Mae and FHA regional loan limits will be announced by March 14, the deadline the economic stimulus bill gave HUD to determine area home prices; that should help some spots–especially areas with high-cost homes like California. Previous FHA limits in many areas of California were so low that many homebuyers purchasing moderate homes–which often were above the loan limits because the high average area home price was so high–couldn’t qualify.

Wells Fargo’s need (and all lenders’ need) to cover its back is understandable–protecting against future risk is important, and our financial system needs it to recover. But the outcome of Wells’ stricter lending standards really could potentially make the refi and buy situation worse.

Will other banks follow suit?

Condo and apartment property managers deal with many resident repairs–some of which are the building’s responsibility, some of which aren’t.

As I type this, a contractor is replacing my front door–in part because my circa-1985 door began splitting like a wishbone a week ago (the hallway got the larger half–so make a wish, elevators!), and in part (of course) because I believe in supporting the remodeling and repair industry.

Yet the experience has illustrated a few methods that can make the repair/remodel process smoother for property managers, contractors and residents–who are often all working independently for the same goal: A safe, reasonable repair that won’t disturb the building’s character or quality of living.

That said, because everyone is working independently, there can be a lot of back and forth, confusion and sometimes costly mistakes. So I’ve compiled the following suggestions for property managers, contractors and residents. Feel free to read them, develop them into a client handout, forward them, comment on them, add to them–I’d love to hear your input.

Ways Property Managers Can Make Their Lives (and Their Residents’ Repairs) Easier

You’re the source of knowledge for renters and for owners (maybe owners should know what repairs you cover and what ones you don’t, but more often than not, they’ll shoot you an e-mail or call to ask.)

As such, even if you’re not responsible for a repair (like, say, a condo unit’s front door), you can provide helpful guidance to residents to get the job done the way the building wants it done–and hopefully reduce future problems or eating up your time handling the issue. Some things to consider:

• Have standard (but customizable) responses to common questions. When my door first began having issues, my building manager told me it was common in our building, and that I could swap it out with any solid wood core door. I assumed I’d also need to find a doorknob that looked like my old one–but the building didn’t have information on where to find it (or let me know most residents who replace doors swap it out from the current door, along with the peephole). As it turns out, the knob, peephole and deadbolt had to match the previous versions–which the contractor I hired told me. Had I done the repair myself, I wouldn’t have done that–resulting in more work for my property manager to let me know it had to be replaced and possible fines for my unit.

• Provide a general timeline. The residents request may not
  be first priority on your list due to other pressing concerns–but you
  can bet it’s first on theirs. For repairs the building is responsible for, even if there will be a wait for the unit
  repair to be made, giving owners or renters an accurate estimate of
  when the problem will be fixed goes a long way toward building trust
  and resident satisfaction.

• Keep a database of renter repairs. Have you had a lot of window frame issues in recent years? Are plumbing issues on the 4th floor becoming an increasing issue? Tracking unit issues can help you gauge overall building needs.

• Consider doing an annual resident repair survey. In addition to finding out how residents feel about your level of service, an annual survey can help property managers find out what problems unit owners or renters are having and also can allow managers to develop a list of frequently used (and liked) contractors.

• Go the extra mile on the first request. If a resident e-mails to ask about a repair that isn’t the building’s responsibility, providing a complimentary list of building-approved contractors and information on where to order any replacement parts the building requires isn’t just being proactive–it’s doing the job to the fullest and best extent possible.

Ways Contractors Can Make The Repair Process Easier

Always remember that residents have different levels of repair know-how–don’t assume they have too little or too much. They’re often desperate for a fix to be made or totally confused; other times, they’re debating doing it themselves, and you’re going to get hired based on your expertise. A few thoughts:

• Be in touch–as promptly as possible. It’s hard to call potential clients back when you’re out working on jobs, but being in contact is important. One contractor I talked to Friday promised to call back with a quote either Saturday or Monday; I never heard from him. I moved on to another contractor, but even if I hadn’t, I took that as a sign of irresponsibility.

• Be realistic about deadlines. If you’re not going to be able to get to the area for three days to do the repair, don’t say you’ll try to stop by that day.

• Consider giving a quick quote. Obviously, you’ll need to come look at the unit for some repairs before giving a price estimate; but if it’s a fairly fast, standard job you’ve done many times in the building, give the unit owner an approximation or range. I called several contractors about the door; only one wanted to make an appointment to come see it, even after I told them it needed to be replaced very soon and they told me they’d done dozens in my building. When I pushed for a price estimate, it was so much higher than the other contractors I’d talked to, that–coupled with the fact they wanted to come out later in the week before starting work and my door was barely functional now–I took them off my list.

• Make sure you include any extras. If your price includes a post-job cleaning service, special features or other services, tell the client on that first call. Always highlight your high level of service–almost all the contractors I spoke to made sure I knew they would also paint the door once it was installed.

• Develop relationships with large buildings. Rental buildings may outsource a number of their repairs; condo buildings often recommend contractors regularly who are known for doing good work–which can significantly cut the amount of time you spend on marketing yourself to new clients.

And Finally, Ways Residents Can Make Life in General Easier for Everyone

You may want the repair done yesterday–but you want it done right.

• Confirm all repairs with the building. It’s better to check beforehand about approved materials and installation methods–before you do the work and risk a fine.

• Don’t panic, and be polite. When you contact your property manager,
  realize the situation will be fixed, if it is by the building or you.
  Hysteria isn’t going to help.

• Consider using a building-approved contractor. It’s less paperwork and you may get them sooner if they’re already there working on other projects. (Mine came the next day because they were working on someone’s unit on the 6th floor.)

• Do your homework. Figure out what’s wrong, look up any related terms and be able to describe the problem to any contractors or the property manager–it makes everyone’s life easier.

• Confirm the services are what you want. Are you responsible for clean-up? Do you need to sand or paint anything, or will the contractor do that before leaving?

Have any other tips or suggestions for property managers, renters or contractors? Share your industry knowledge by posting below!

Selling a home is no easy task these days–unless you’re famous.

Forget how easy it must be to finance a home if you make millions. The real perks of being a star involve living at a luxury address that was owned previously by another celeb and/or features famous neighbors. (P. Diddy paid $5 million for his three-bedroom Park Imperial Manhattan apartment–which came with great views and neighbors Tommy Mottola and Deepak Chopra.)

And–of course–those perks also involve being able to said the home easily when you decide it’s time for another.

While celeb mansions may be the norm in L.A., in New York, fancy apartments are just as prevalent as celeb-owned townhomes–and so are successful celeb real estate deals.

• Model Jessica Stam bought an $800,000 New York condo–her second–in 2004 and sold it for $935,000, according to the New York Observer.

• Julia Roberts is practically a Manhattan land baron, according to Forbes. She sold her Greenwich Village apartment in 2004 but still
  owned a bunch of
  apartments on Gramercy Park, including a penthouse and unit for guest
  or staff quarters, at the time.

Celeb Market (and Marketing) Success

The New York Times reported in December that the general housing market seemed to be gearing toward multifamily housing as mortgages became more and more difficult to obtain. Not surprisingly, celebs, too, are snapping up apartments–and a few who sell are experiencing unbelievable success, despite the otherwise troubled housing market.

For example, New England Patriot Tom Brady reportedly sold his three-bedroom condo in Boston’s swanky Burrage Mansion–which features five parking spots–for $5.39 million recently, according to the Times Colonist. Brady bought the unit in 2004 for $4.1 million.

A quick sale? A profit? Celebrity has its privileges, indeed. Which is why, when it comes to real estate, star power is no new marketing tool.

Some developers–like James Helman, who created the 42-story Las Olas
River House condominium development in Fort Lauderdale, Fla.–have harnessed celeb PR power to promote new complexes.

Helman gave former football star Dan Marino a discount
on a 3,382-square-foot, three-bedroom unit in the property in exchange for some promotion because, as Helman says, "In Florida, Dan is the
man."

Dan is also the display in Florida, thanks to Helman, who put him up on billboards around Fort Lauderdale promoting Las Olas, according to a 2005 Wall Street Journal article. (He’s also all over the "events" section of Las Olas’ Web site.)

Free Trips, Treats–and Three-Bedroom Units

Celebrity perks–like a condo discount–are nothing new. Fashion designers have been outfitting stars with clothes for years because it’s free PR. "The same way every designer wants to dress Nicole or Gwyneth for the
Oscars, every developer wants to say someone fabulous bought in the
building or even looked at it," New York broker Michele Kleier of
Gumley Haft Kleier Inc. told the Journal.

The luxury Cipriani Club Residences at 55 Wall Street also enlisted a little star shine to promote the condos before they hit the market. Margherita Missoni–a member of the Missoni designer family–and actor Mickey Rourke "allowed their names to be attached to the project," according to the Journal.

Supermodel Naomi Campbell posed with co-developer Giuseppe Cipriani for a photo that was used in promotional materials and ads in Vanity Fair. For allowing photo use, the celebs received a discount, Cipriani said; Campbell’s publicist told the Journal that her modeling fee was
deducted from the condo price.

Not a bad deal for the celebrity–but is it a bargain for the developer? Join us Monday for part two of our look at celeb condos and apartments to find out …

When the economic stimulus checks start making their way to our mailboxes later this year, the government is hoping we’ll all cash them and promptly go shopping.

In the last round of rebates, in 2001, many did: according to Citigroup, 25 percent of the rebates issued in 2001 were spent at Wal-Mart alone.

But it’s unclear how Americans will spend the rebates this time. The economy is unquestionably worse; housing starts are at their lowest level since 1991, according to Commerce Department data released Wednesday.

And everyday living is getting more expensive. The CPI rose by 0.4 percent again in January. Food costs shot up 0.7 percent, their most abrupt increase in a year.

Which may be why one recent poll found that only 16 percent of Americans plan to spend all their rebate; nearly one in three respondents said they planned to pay down debt with the rebates of $600 per individual and $1,200 per couple.

If you consider that Wal-Mart customers last month were cashing in their Christmas gift cards on basics like food instead of discretionary income buys like stereos, according to the Financial Times, it stands to reason the rebates will go toward life’s little–and big–necessities.

Still, another survey–this one by the National Retail Federation– found Americans will spend 40 percent of their rebate cash when it gets here in May, putting $30 billion will go toward paying debt and $19.8 billion will go into savings. But maybe that’s just wishful thinking on the part of the retail association.

The whole point of the stimulus plan was to increase consumer spending and beef up the economy–but if one in three people use it to pay debt or bank it, it’s going to have a lesser effect. Therein lies the problem with the stimulus plan–we have no way of knowing what the majority of Americans will do with a check for $600 to $1,200.

It’s unlikely, unfortunately, that they’ll spend it on housing. Remodeling is struggling (the National Association of Home Builders expects little remodeling growth in 2008, according to MarketWatch) and, although bonuses–another form of extra gifted money–helped propel the New York real estate market in recent years (and, when Wall Street bonuses declined, helped threaten it last year), $1,200 won’t go far toward a downpayment.

But if consumers spend the rebate on retail goods, increasing consumer spending, the ripple effect could eventually reach housing–once manufacturing picks up, banks feel secure enough to relax their lending standards and more houses disappear off the bloated U.S. housing inventory.

But $600–heck, even $1,200–is a long way away from that. Will the stimulus plan work? What do you think?

When homeowner-related credit issues began, they involved subprime borrowers–people with less than perfect credit–prompting criticism when the government stepped in with its Hope Now program to help those homeowners avoid foreclosure.

Some asked, why should we help homebuyers who over extended themselves? Isn’t that their problem?

Well, according to a recent New York Times article, it’s now everybody’s problem.

Decreased home prices and stricter lending standards have pushed some homeowners with good credit backgrounds behind on their payments–less than the 24 percent of subprime borrowers which are delinquent or in foreclosure, the Times says, but in some areas, still a staggering amount.

For example, Arizona: The Mortgage Bankers Association found that between the third quarters of 2006 and 2007, ARM-related prime homeowner foreclosures rose 902 percent in Arizona, according to BusinessWeek.

And, all the while, subprime loans continue to do their damage. The MBA says that while subprime ARMs represent just 6.8 percent of the current loans, they comprised 43 percent of the foreclosures initiated during the third quarter of 2007.

(Interestingly enough, a ripple effect is occurring in the U.K.; more than half of the foreclosure orders are subprime borrower-owned homes, despite the fact that–as in the U.S.–they’re just 6 percent of all U.K. mortgages, according to a BBC News report.)

Mortgage payments aren’t the only trouble prime borrowers have stumbled into lately. If they aren’t defaulting on their home loans, the Times says, the prime borrowers are falling behind on their auto loans and credit card payments–at an increasing pace.

And that’s about the last thing that the housing market needs.

“This collapse in housing value is sucking in all borrowers,” Mark Zandi, chief economist at Moody’s Economy.com, told the Times.

• Why is it happening? Many subprime and prime borrowers took out the same kind of loans–adjustable rate mortgages (ARMs) that reset to a higher rate after several years of lower payments–so prime borrowers are just as susceptible to sudden higher post-reset payments as subprime borrowers.

When home prices were rising, both groups had more leeway to refinance or sell; now they are both facing high resets. The bottom line? Too many loan programs allowed too many homeowners to buy homes out of their comfort level with little to no money down on the hopes the market would keep rising–and it didn’t.

• Why is it a problem? Because prime borrowers carried the weight of the subprime borrowers–for awhile, they were thought to be balancing out some of the subprime defaults, according to the Times.

• Where is it happening? The states with the highest increase in prime ARM foreclosure starts in the third quarter of 2007–Florida, Nevada, California and Arizona (which would help explain that horrific rise in prime homeowner foreclosure starts)–have a large amount of investment properties that were purchased to flip and make a profit, according to BusinessWeek.

Arizona had the eighth highest foreclosure rate in 2007; Nevada and Florida ranked No. 1 and 2, according to RealtyTrac.

And–unfortunately–those aren’t the only places experiencing prime problems. For the second half of our look at the prime borrower slip, including a look at what factors will heavily influence the prime market’s future, check out MHN’s blog tomorrow!