Mercedes is faulted for cracks in homes

Suit: Wall repairs will cost $120 Million

BY JEFF SCHWEERS • FLORIDA TODAY • July 3, 2009

Several Brevard County homeowners have asked a federal bankruptcy judge for permission to file a class-action lawsuit against Mercedes Homes, claiming that poor construction caused rainwater to leak through their homes' exterior walls, damaging baseboards, drywall, kitchen cabinets and carpeting.

The five homeowners, identifying themselves as representatives of the group, claim it will cost a minimum of $120 million to repair the cracks responsible for the leaks in 8,000 homes built by the financially troubled construction company.

"Even though they're in bankruptcy, we believe we've found insurance coverage," said lawyer Joseph Colombo of the Melbourne firm Mommers and Colombo, which is representing the homeowners. "It's kind of go time now. We'll see what evolves."

Mercedes Homes -- the 27th largest homebuilder in the nation with operations in Florida, Texas, North Carolina and South Carolina -- is going through Chapter 11 reorganization and continues to do business. It filed for bankruptcy protection in January, leaving many local subcontractors unpaid for work done.

An attempt to contact the company's corporate office was unsuccessful.

In bankruptcy filings, the company estimated that it has between 1,000 and 5,000 creditors. The homeowners group is the largest creditor, Colombo said.

The next biggest creditor is Fifth Third Bank in St. Petersburg, which is listed with a claim of $7.1 million. Sanford-based 84 Lumber is next with a claim of nearly $615,000.

The homeowners allege that Mercedes, through its subsidiary Solid Wall Systems, built shoddy exterior walls. They were touted as "formed" walls that would outperform standard exterior ones. But the control joints that unite those walls leak, they said.

Mercedes built 8,000 homes in Florida between 2004 and 2008 with these poured concrete walls, the suit says.

The homeowners claim that every one of those homes is structurally unsound and that it would cost at least $15,000 to fix each house to bring it to state building standards. The repairs would cost more if water got into the cracks, as Merritt Island Realtor Bobby Freeman discovered during August's Tropical Storm Fay.

"Downstairs, it was leaking through every window," Freeman said.

He said the company knows there's a wall breach in the seam that is supposed to seal the concrete slabs.

And it isn't just one or two seams, he said. The cracks appear in even intervals at each place where the slabs are joined. He received an estimate of $37,000 to fix only the cracks. That doesn't include damage to the baseboards, the drywall and the carpets.

"Obviously, water's coming through," Freeman said.

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Brevard County Florida Real Estate is a Hot Market Today

Looking for the next hot real estate market? Watch WKMG Local 6 News. Then contact RE/MAX Elite's McCoy-Freeman Group at www.BrevardRealtyConnection.com for a free list of any property in Brevard County Florida.

Brevard County and Cocoa Beach Florida Property Deals on Twitter

Image via CrunchBase

Follow us on Twitter for current posts on real estate deals on Florida's Space Coast. I will post new listings that are foreclosures, short sales and basically, great deals.

Then contact us for additional information and/or showings.

www.twitter.com/cocoabeachdeals

Boeing Delta IV from Meridian Condo in Cocoa Beach Florida

Another powerful Delta IV rocked launched from Cape Canaveral Air Force Station yesterday. Above is s photo taken from the top floor of the Meridian Condo in Cocoa Beach.

Nikki and Jennifer have a bit of a sweet spot in their heart for this launch. They both worked for Boeing in their past life....

We still have many friends that play an important role in the success of this wonderful program. Go Delta IV!

Congrats to all you hard workers!!!!

Florida Home Sales Increase, Again

Florida's existing home sales rose 24 percent in January, making it the fifth month in a row that sales activity increased year-to-year, according to the latest housing data from the Florida Association of Realtors (FAR). Florida Realtors also reported a 13 percent gain in statewide sales of existing condos last month.

The National Association of Realtors (NAR) reported that nationwide sales of existing homes - all housing types - fell 5.3 percent last month; at the same time, inventories fell to a two-year low.

RE/MAX Sells

RE/MAX Agents Can Help

Stuck and can't get away from your current home? Contact RE/MAX Elite's #1 Sales Team, the McCoy-Freeman Group. Whether your selling or buying, we can help guide you through the entire buying and/or selling process with professional service.

Jennifer McCoy (321) 720-6654
Bobby Freeman (321) 693-1694

www.BrevardRealtyConnection.com
info@BrevardRealtyConnection.com

Enjoy the video below!

HOUSING MARKET

According to NAR President Charles McMillan's testimony yesterday before the U.S. House Financial Services Committee, Congress and the next administration must place significant emphasis on restoring confidence in the housing market.

Read the full story

Happy Holidays

The McCoy-Freeman Group would like to wish all of our friends, customers and colleagues a wonderful holiday season.

For many, this year has been challenging and stressful. Let's all look forward to a prosperous 2009. We believe the secret to success starts with being thankful for the things we have and maintaining a positive attitude!

Sincerely,

McCoy-Freeman Group
RE/MAX Elite
Jennifer McCoy
Nikki McCoy-Freeman
Bobby Freeman

Mystic Vistas Oceanfront Condo in Cape Canaveral Florida

There are some great deals left at Mystic Vistas in Cape Canaveral. This gated oceanfront community has 4 pools, tennis, workout room with ocean views and lots more! The units available from the bank and investors are 50%-65% off the original price! Visit my website for more info at www.OnlyInCocoaBeach.com

SpaceX sees 1,000 jobs in Brevard

In a concept, a SpaceX Dragon spacecraft delivers cargo to the space station. Dragon is set to reach the space station in 2010.

In NASA contract, 12 cargo flights start as shuttle ends

BY PATRICK PETERSON • FLORIDA TODAY • December 24, 2008

SpaceX and a Virginia company were awarded multibillion-dollar NASA cargo contracts Tuesday to resupply the International Space Station and possibly bring about 1,000 new jobs to the Space Coast.

Under terms of the deal, Hawthorne, Calif.-based SpaceX -- founded by Internet entrepreneur and PayPal creator Elon Musk -- would provide NASA with 12 flights from Cape Canaveral valued at about $1.6 billion starting in 2010. By 2011, the company said the contract could result in the creation of about 1,000 local jobs in launch operations and rocket assembly.

"This is a tremendous responsibility, given the swiftly approaching retirement of the space shuttle and the significant future needs of the space station," Musk said in a statement.

Orbital Sciences Corp. of Dulles, Va., will carry out eight flights valued at about $1.9 billion.

SpaceX would launch from Launch Complex 40 at the cape. Orbital would launch from Wallops Island, Va.

At the cape now, SpaceX is assembling the nine-engine Falcon rocket that might carry the loads if it first flies successfully this spring.

The contract, part of NASA's Commercial Resupply Services program, calls for cargo flights to begin just as the shuttle stops flying. Cargo spacecraft under development by the Japanese and the Europeans could not keep the space station fully supplied. And the U.S. is reluctant to rely on the Russian Progress cargo carriers.

"We have a real need for this cargo capability," NASA Associate Administrator for Space Operations Bill Gerstenmaier said.

Gerstenmaier said the station could not function effectively without critical cargo planned in these shipments.

"We would end up cutting back on our research and maybe the crew," he said.

If one of the companies fails, NASA could shift cargo flights to the successful company or solicit other companies to bid for cargo delivery.

NASA on Tuesday rejected a bid from PlanetSpace Inc., a joint effort of ATK and Lockheed Martin.

The contracts run from Jan. 1 through Dec. 31, 2016, and call for the delivery of at least 20 metric tons of cargo to the space station. The companies will receive payments as they meet development milestones. The maximum potential value of each contract is about $3.1 billion.

Neither company has a track record of lifting heavy cargo to low orbit, and neither company has performed delicate rendezvous operations at 17,000 mph, the speed of an orbiting spacecraft. Orbital builds and launches medium-size satellites, and SpaceX successfully put into orbit its fourth Falcon 1 rocket in September -- after three launch failures.

"We needed to take companies we thought had a good chance of making it," Gerstenmaier said. "There's really not a backup plan for these vehicles."

In 2006, SpaceX was awarded up to $278 million under NASA's Commercial Orbital Transportation Services competition. Next year, SpaceX will conduct the first COTS flight of its Falcon 9 launch vehicle and Dragon spacecraft. On a final COTS flight in 2010, SpaceX will berth Dragon with the station.

Also a COTS recipient, Orbital will use its new Cygnus maneuvering space vehicle and the new Taurus 2 medium-lift launch vehicle, now under development. Cygnus is a service module, containing the vehicle's propulsion, power systems and avionics and one of three cargo modules.

"The program will serve as a showcase for the types of commercial services U.S. space companies can offer NASA, allowing the space agency to devote a greater proportion of its resources for the challenges of human spaceflight, deep space exploration and scientific investigations of our planet and the universe in which we live," Orbital Chairman David W. Thompson said in a statement.

INTEREST RATES

The Federal Reserve yesterday cut its key federal funds rate to between zero and 0.25 percent, down from 1 percent, a level that was already the lowest target rate in a half century. The central bank also vowed to use "all available tools" to fight the current downturn.

Read the full story

Oceanfront Condo Investment

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LOOKING FOR FORECLOSURES?

Real estate investing is a great moneymaking opportunity, and foreclosures can be the most profitable way to invest in real estate.

If you are in the market for a great deal, then now is the time to capitalize on the growing number of foreclosures.

Contact us today to be added to our Exclusive Foreclosure & Short Sale Buyer's List. When we identify that perfect real estate deal, we will contact you immediately.

Some of these properties are not advertised nor listed on MLS. The McCoy-Freeman Group knows how to find them.

Just let us know what type of property and price range you are looking for and we will do all the work for you for free.

We are typically compensated by the lenders to help them move their properties quickly.

Space Shuttle Night Launch from the Meridian Condo

Florida's Space Coast has become a hot spot in the global real estate market.

With property prices declining and Florida's desirable year round climate, exciting area attractions, rocket launches, fun cruise ships and excellent restaurants makes Central Florida, especially the Cocoa Beach area, an attractive investment for foreign buyers.

"The lowering U.S. dollar has made Florida real estate very lucrative to international investors," says Bobby Freeman of RE/MAX Elite's McCoy-Freeman Group in Cocoa Beach, Florida who is currently working with a number of foreign investors.

"Our Condo Super Center web site - www.CocoaBeachCondoSuperCenter.com makes it easy for buyers to navigate through our available properties and enjoy our many condo, home and community video tours," says Freeman.

According to a joint survey by the National Association of Realtors and Florida Association of Realtors, while property transactions in Florida have declined over the past three years, the number of international buyers in the state has grown. In fact, the number of international buyers of Florida property from 2005 to 2008 has doubled.

Also, according to about 5,000 Florida Realtors who participated in a survey by the National Association of Realtors, international purchases made up 30 percent of Florida property sales reported between August 2007 and August 2008.

Homes Sales Gather Strength

Brevard County's housing market roared back to life in September, with single-family home sales jumping 41 percent and condominium sales rising 55 percent compared to a year ago.

In both cases the median price -- the point at which half the homes sell for less, half for more -- fell substantially, spurring the buying spree. The increase in sales could indicate that prices are getting to a point that attracts new waves of buyers.

It also could mean that some people are finding real estate a safer investment right now than the stock market.

"I've actually heard that," said Michael Pruitt, president and broker/owner of Pruitt Real Estate Inc. "I haven't had anyone walk in the door and say, 'I'm done with the stock market,' but our phones are ringing and we had good showings on our property in September. I truly believe that people are taking advantage of the low prices."

Pruitt's latter point is reflected in the sales data released Friday by the Florida Association of Realtors.

# Single-family home sales rose to 430 in September from 304 a year earlier. The median price dropped 24 percent to $143,900 from $189,700 a year earlier.

# Condominium sales rose to 102 from 66 in September 2007. The median price fell to $153,300, 13 percent lower than the $176,700 price a year ago.

The Brevard market saw 494 homes sold in August.

Statewide, Florida's existing home sales rose 24 percent year-over-year and condo sales jumped 11 percent. The median-selling price fell 22 percent, to $175,100, for single-family homes. Condo prices also dropped 22 percent to $153,800.

Sales of existing U.S. homes rose by the largest amount in more than five years in September, surging 5.5 percent compared to August, the National Association of Realtors said. That was the best showing since a 5.6 percent increase in July 2003, during the five-year housing boom.

Even with the gain in sales, prices kept falling. The median sales price has dropped to $191,600, down by 9 percent from a year ago.

The numbers should provide some respite from what's been a continuous stream of sour news about the nation's housing market and limited access to credit, economists said.

"This is a clear sign that the significant price declines that have occurred across the state are leading to a more rapid absorption of the housing inventory," said Sean Snaith, economist and director of the University of Central Florida Institute for Economic Competitiveness.

Snaith said September 2007 was a "volatile time for the housing industry," which makes the last month's sales gains stand out.

"The large percentage increase of sales this September versus September 2007 is inflated by the sharp decline in sales that took place in September 2007," Snaith said. "That was the month following the initial wave of global fallout precipitated by the subprime mortgage meltdown that roiled markets in August 2007."

Some sellers are hoping it's not momentary flash of good news.

"It looks a little bit better," said Elisabeth Paunovich of Suntree, who is looking to sell a condominium she owns in Daytona Beach. "The market had been horrible."

Contact Price at 242-3658 or wprice@floridatoday.com

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COUNTRYWIDE HOME LOANS

Bank of America will rewrite an estimated 50,000 Floridians' home loans inherited through the takeover of Countrywide. The $1B program will convert most loans into FRMs, and the bank will notify eligible homeowners via e-mail or phone by Dec. 1.

Read the full story

Melbourne Beach Florida Luxury Ocean Condo For Sale

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Greenspan Sees First Half 2009 U.S. Housing Recovery

Former Federal Reserve chairman Alan Greenspan said the U.S. housing market
will begin to recover in the first half of 2009, according to an article he wrote for Emerging Markets magazine published Friday.

Click here for article

Fannie and Freddie: Finding Their Future

I applaud recent government actions to restore confidence and stability in the housing industry by placing Fannie Mae and Freddie Mac into a conservatorship. Federal cash guarantees are part of the plan, which will also replace key executives at the two government sponsored enterprises (GSE's).

Many analysts believe that this move will lead to lower interest rates in the short term and help bring buyers back to the market to reduce the high inventory of homes. All this is good, but it may come at a price. Taxpayers may be stuck with a $200 billion bill to bail out the two GSE's. But there aren't many good options at this point in time.

The original objective for the two GSE's was to provide a "counter-cyclical balance" to the marketplace, letting private organizations operate freely in good times and providing alternative options in bad times, all to ensure consistently affordable homeownership.

These are respectable goals, but over the years, Fannie and Freddie have grown to control roughly half, or about $5 trillion of securitized mortgages in the United States. Part of the stated objectives of the new plan is to allow them to continue to grow through 2009, in an effort to stabilize the market, but then in 2010 to shrink by 10% each year to a more reasonable size.

However, creators of this new restructuring plan recognize that congress and the new administration will ultimately determine a permanent future for Fannie and Freddie. It is my hope that their original mission, to create opportunities for affordable housing, will not be lost, while at the same time, their dominance in the marketplace will be reduced.

Nobody likes the idea of having the government control such a large portion of the mortgage industry, but for the short term, this plan may play a key role in the resolution of the serious problems in the housing industry.

A reorganization of Fannie and Freddie may be long overdue and have a positive impact, but we need to be sure that we don't facilitate government control of an industry vital to the economic well being of so many in our country.

Florida Real Estate Deals & Steals

If it so happens that your looking for "Deals & Steals" in the Cocoa Beach area real estate market then let the McCoy-Freeman Group help you find that perfect property.

So far this year, we have saved the 26 buyers we represented over $3.7 Million dollars. There are still very many well priced real estate deals left to be had in Cocoa Beach, Cape Canaveral, Merritt Island and our surrounding areas. However, it is very important to have an experienced agent on your side that can help you negotiate that wonderful deal!

We are currently the #1 RE/MAX Team in all of Brevard County for 2008 and pride our business off of great customer service and superior market knowledge not to mention that we are true natives to this area.

Watch our video below to see all the great buys our customers have received this year.

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Existing-home sales rise 4% in Brevard

BY WAYNE T. PRICE • FLORIDA TODAY • August 26, 2008

Sales of existing homes in Brevard County increased 4 percent in July, only the second time during this difficult year the market has seen a year-over-year bump.

The rise wasn't large -- it represented just five more homes sold than in June -- and it was coupled with a decline in median home price, the point at which half the homes sell for less, half for more.

But an increase is an increase, and those involved in the local real estate market see the movement as encouraging.

"That's great news," Cindy Kelley, president of the Space Coast Association of Realtors, said. "Anything in the upward direction is good."

The housing statistics, released Monday by the Florida Association of Realtors, showed that sales of single-family homes increased 4 percent over the year, to 478 from 458. The median price -- the point at which half the homes sell for less, half for more -- fell 22 percent to $152,600 from $195,800 during that same period.

Statewide sales were flat in July, while the national market was up about 3 percent.

Brenda Muh, owner of Space Coast Realty Corp. in Palm Bay, said foreclosure sales are changing the dynamics of the Brevard market. Purchasing a foreclosed home is a great deal for buyers, particularly when they can land a newer home in good shape.

For the seller?

"It's not so good for the seller," Muh said. "I tell them if you can hold on for a year or two it will be better."

Merritt Island Florida WaterFront Home Deal

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HOME SALES UP

Florida Realtors continued to report positive signs for the state's housing sector in the second quarter of 2008.

Sales of both existing single-family homes and existing condos improved in the second quarter compared to first quarter 2008, according to FAR's latest housing data.

A total of 35,178 existing homes sold statewide in 2Q 2008, up 38.2 percent over 1Q 2008. Nationwide, existing home sales rose from the first quarter in 13 states, according to NAR's latest survey.

Read the full story here

No "Rumors" Here.....

Just to set the facts straight on the recent Mystic Vistas Auction in Cape Canaveral that was held May 17th. There were a total of twenty contracts written and as to date fourteen of the twenty have closed, the remaining six will be closing here very soon. As we all know public records do take time to update.

These units were phenomenal deals! The McCoy-Freeman Group represented three very happy buyers from this auction. Please visit a live testimonial video below from one of the three buyers who was just ecstatic with what a deal she received not to mention the service the McCoy-Freeman Group provided during and after the sale. This is truly the experience we strive for with all of our clients.

Good News! The Mystic Vistas Auction helped to get some of the current sellers to price their units in line with today's market, which has resulted in four other sales that were not included in the auction.

We have closed two out of these four and currently have another under contract. This is a total of six transactions within the last three months in Mystic Vistas for the McCoy-Freeman Group. Let us help you find a deal today! We are currently the #1 RE/MAX Team in Brevard County.