Bank owned
Yours for Only $10,000
Friday, April 6th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
I am so excited to call this article to your attention because it’s something we’ve known for a long time – that this is a great time to be a real estate investor. While the housing bust has created a lot of challenges, there are also a ton of opportunities. There are literally thousands of homes on the market today priced at or below $10,000!
Most of these bargain-basement priced homes are foreclosures, and some are just considered worthless. According to Realtor.com, in the 10 largest metro areas, there are at 100-200+ homes in this price range. Seventeen more have at least 100 homes available for $15,000 or less. But in order to turn these opportunities into money in your pocket, it’s important to understand the community and any housing recovery plan or programs that may be in place. As we say, focus on your sweet spot and do your research. A successful investor is a smart investor.
To read the complete article, click here.
Housing Prices Expected To Rise by 2013
Friday, April 6th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
According to the recent Real Estate Consensus Forecast conducted by the Urban Land Institute, home prices are expected to increase in 2013, with housing starts nearly doubling by 2014. Housing prices are expected to stabilize his year, and then increase by 2% next year, followed by 3.5% in 2014.
The rate of unemployment is expected to continue falling, with the GDP growing. Inflation and interest rates will continue to rise, which will increase costs for investors. Survey results do not anticipate substantial increases in real estate capitalization rates for institutional-quality investments, expected to hold at 6%. While this steady growth is encouraging, we can’t take our eyes off some impending global and national events which could provide influence, including the upcoming presidential election, Europe’s debt crisis, major international elections and tightening financial regulations.
Read the complete article here.
Short Sales Making a Comeback With Investors
Sunday, April 1st, 2012 | Bank owned, Foreclosures, Real Estate Investing, Real estate short sales, Short Sales | No Comments
This is good news for real estate investors, but honestly, something we at SREC never stopped doing, even when things got really tough. Short sales are once again are becoming popular with investors. According to a recent survey by HousingPulse, the percentage of investors pursuing short sales rose by nearly 3.5% in a six-month period.
During the same time frame, investor share of all short sales rose by nearly 5%. By contrast, the percentage of homeowners pursuing short sales fell. This can be attributed to the long approval times from mortgage servicers and the unknown closing dates. The average homeowner does not have the resources to wait it out like an informed, experienced investor can. To date, nearly 50% of all the homes on the market are distressed properties, which represents an amazing opportunity for investors.
To read more, click here.
Short Sales to Rise Again
Sunday, April 1st, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
This is a sort of continuation of the article I shared with you last week indicating good news about short sales for real estate investors. The government has reached a $25 billion settlement with the five biggest mortgagers over robo-signing practices. This move is expected to increase the amount of completed short sales.
With this new settlement, “loan servicers will receive credit when they approve sales that include forgiveness of a portion of underwater homeowners’ debt.” While not a huge portion of homeowners will be helped directly, it does remove some of the daunting barriers that have kept homes in the foreclosure pipeline for long periods of time. Of the total $25 billion, $5 billion will go to paying fines, $17 billion is ear-marked for homeowner relief and $3 billion will help underwater borrowers refinance.
To read the complete article, click here.
Incentive Payments to Mortgage Investors Could Triple
Monday, March 26th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
I just got this article from Jerry Kayser, my broker at Sharp Concepts Realty and one of my SREC coaches, and I had to pass it along to you – this is really big news!
Right now, Freddie Mac and Fannie Mae own 3.3 million of the 11.1 million mortgages where borrowers own more than the house is worth. Worried about the unintended, secondary consequence of homeowners entering into strategic default to get a principle reduction, the GSEs and their regulator, the Federal Housing Finance Agency, have long avoided any sort of principle reduction. New reports are showing that, in actuality, such a move could work for the GSEs under a new version of HAMP – the Home Affordable Modification program. The Treasury said it would “triple incentive payments to investors who allow principle reduction in HAMP workouts.” Freddie Mac’s CEO, Ed Haldeman, said, “The Treasury sweetened the program and tremendously increased the incentive payments in their offer to us. We will reevaluate that to see what may be in our economic best interest. If there are very large incentive payments — which could be 50% of what you could write down — it may be in our economic self-interest to participate in that.”
Bottom line: the Treasury is willing to triple incentive payments to investors, now between 18-63% to the investor behind a loan for a principle write down, instead of 6-21%. For investors, that’s tremendous news.
To read the entire article, click here.
Current Shadow Inventory = Half of Visible Inventory
Sunday, March 25th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Last week, CoreLogic reported that the number of homes currently in the shadow inventory is roughly half the number of those currently in the visible inventory. On top of that, about half the shadow inventory has not made it into the foreclosure cycle yet. Altogether, the total shadow inventory includes 400,000 REOs, 410,000 already in foreclosure and 800,000 seriously delinquent mortgages.
Together, this means that the rate of distressed sales, which includes REOs and short sales, is equal to the rate at which homeowners are falling into some state of delinquency. Distressed sales are keeping the shadow inventory under control, with roughly 3 million completed since January 2009. CoreLogic estimates that the 1.6 million properties in the shadow inventory represents a 6-month supply. One-third of the total shadow inventory is located in California, Florida and Illinois. In addition, loans of $100,000-$125,000 represent the biggest portion of the total.
Read the complete article here.
BOA Settles, Brings Mortgage Relief to 200,000 Homeowners
Sunday, March 18th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Last week, Bank of America announced that they were reducing the amount owed for 200,000 underwater homeowners. This is huge for the homeowners, because it means a chance to eliminate the underwater portion of their mortgages. The anticipated average reduction is $100,000.
Homeowners are eligible for the reduction if they were at least 60 days delinquent on their mortgages serviced by BOA, as of January 31, 2012. This $1 billion deal is part of a recently announced government foreclosure settlement with top service providers. This move will reduce the overall amount BOA owes in penalties from its $3.25 billion foreclosure settlement.
This arrangement will only apply to loans owned by BOA or private investors, but not ones owned or backed by the GSEs, FHA or Dept. of Veteran’s Affairs.
860,000+ Foreclosures Completed in 2011
Sunday, March 18th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Recently, CoreLogic released their annual National Foreclosure Report. Corelogic is a leader in providing financial, real estate and consumer data used by top industry experts. In this report, they provide information on foreclosures by month, total foreclosure inventory and delinquency rates.
Their findings include the five states with the highest foreclosure rates. The leaders are no surprise – it’s the states we’ve seen over and over that are struggling with foreclosures: Florida (nearly 12%), New Jersey (6.4%), Illinois (5.3%), Nevada (5%) and New York (4.7%). The five states with the lowest foreclosures included Texas (1.3%), Nebraska (1.1%), N. Dakota and Alaska (.8%), and Wyoming (.7%).
Collectively, five states accounted for nearly 50% of all completed foreclosures around the country. Of the top 100 markets in the country, 32 experienced an increase in foreclosures versus a year ago. The overall number of homeowners who are more than 90 days late on their mortgage payments declined, from 7.8% in January 2011 to 7.2% in January 2012.
This shows that there is still a big opportunity for real estate investors to help homeowners who are facing foreclosure and need viable options to help them out of their situations.
To read the complete report, click here.
Proposed Bill Would Prevent Foreclosures with Faster Short Sales
Sunday, March 18th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Short Sales | No Comments
This is good news for real estate investors. Last month, three Senators (Murkowski, Scott Brown and Sherrod Brown) together proposed a bill called the “Prompt Notification of Short Sale Act,” which, in essence, is designed to speed up the short sale process.
It would require “a written response from a lender no later than 75 days after receipt of the written request from the buyer,” In turn, the response must include one of the following decisions: acceptance or rejection of the offer, a counter-offer, need for extension (only one permitted) with estimation of when a decision would be available. If this process were violated, the buyer would be entitled to $1000 plus reasonable attorney fees.
This bill could be just the thing to help improve the short sale process, which is notoriously long – generally 6-9 months.
To read more, click here.
3 Steps to Involve Private Investors, Squeeze Out Freddie, Fannie
Sunday, March 11th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Attention private real estate investors: The FHFA recently released a 3-step plan to lessen the role of Freddie Mac and Fannie Mae in the mortgage industry and shift it to private investors. Since 2008, when Freddie and Fannie were placed in conservatorship by the US Treasury, they have received more than $180 billion in taxpayer support. To date, there is no resolution in sight, so the terms of the conservatorship need to change. Together, they guarantee 3 of every 4 mortgages.
- Build a new infrastructure that allows private investors to participate in the secondary market. This would include “national standards for the mortgage securitization process“ to be used to develop the mortgage market.
- Transfer mortgage credit risk from Freddie and Fannie to private investors. Several plans are already in place to see that this happens. One includes a “gradual increase in guarantee fee pricing so the price is closer to the level expected if mortgage credit risk was based on private capital.” Another proposes loss-sharing plans to have investors bear part of the credit risk.
- Continue efforts to prevent foreclosures and make mortgage credit available.
To read more, click here.
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