forclosures
Foreclosed But Back to Homeownership
Sunday, May 20th, 2012 | Bank owned, Foreclosures, Real Estate Investing, Short Sales | No Comments
More and more, Americans aren’t letting a foreclosure, bankruptcy or short sale prevent them from becoming homeowners again, and quickly. In year’s past, the only option seemed to be renting. But today, as rental prices are on the rise, they want to take advantage of low home prices.
So where is the help coming from for these Americans? The government, in the form of FHA loans. “The number of FHA-insured home loans has soared in recent years as subprime loans have disappeared and fewer Americans have qualified for conventional mortgages backed by Fannie Mae and Freddie Mac, which were rescued in 2008 by the U.S. government after loan losses.” Even Ben Bernanke, Chairman of the Federal Reserve, agreed that banks have become so restrictive that many homebuyers are being squeezed out of the market. By the close of 2011, FHA-backed loans accounted for 30% of loans for home purchases. Critics argue that the FHA loans are putting people right back at risk for default, possibly leading their second chance to yet another loss.
For the full article, click here.
Mortgage Delinquencies at Lowest Since 2008
Sunday, May 20th, 2012 | Bank owned, Foreclosures, Pre-foreclosure | No Comments
Mortgage delinquencies have hit their lowest point in 4 years, according to the Mortgage Bankers Association, down from 7.58% to 7.4%. This includes mortgage payments that are at least one payment behind, but does not include loans already somewhere in the foreclosure process.
The peak number was over 10%, during the height of the housing crisis. This ease is reflected in mortgages that are one payment behind, as well as those that are more than 90 days behind, which is considered seriously delinquent.
Read the full article here.
Increase in Short Sales Helps Lower Foreclosures
Sunday, May 20th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Short Sales | No Comments
For the first time since 2007, foreclosure filings were at their lowest for a month in April 2012. This includes default notices, auctions and bank repossessions. Any increases in foreclosure activity were masked by the decline in the three large, hardest hit states of California, Nevada and Arizona.
They were more efficient in processing their foreclosures, therefore have fewer waiting in the wings. The increase in short sales is also helping stem the tide of foreclosure filings. According to Brandon Moore, CEO of RealtyTrac, “Our preliminary first quarter sales data shows that pre-foreclosure sales – typically short sales – are on pace to outnumber sales of bank-owned properties during the quarter in California, Arizona and 10 other states.” Despite this, 26 states still saw an increase in foreclosure starts, while REO activity dropped in 37 states.
Read the full article here.
Fannie Mae Avoids Q1 Bailout
Sunday, May 13th, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Taxpayers are getting a little breather as Fannie Mae turned a profit at $3.1 billion, passing the $2.8 billion required Treasury payment. This is the first time since going into conservatorship in 2008 that the GSE hasn’t required a draw.
Fannie’s CFO, Susan McFarland, is anticipating continued strong performance results. “Our credit performance is headed in the right direction with significant improvement since 2009, and we expect that the reserves we have built to cover future credit losses on the pre-2009 legacy book of business have reached their peak.” Fannie lowered their reserve for credit losses by $2.3 billion, and the rate of serious delinquencies continues to drop. As for new mortgages? Tighter restrictions such as a 763 FICO score and loan-to-value ratio of 70% ups the screening process.
Read the full article here.
Rentals Overshadow Retail
Sunday, May 13th, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
The latest numbers from Zillow’s Rent Index are out, and rentals are up across the country. The rent index rose 2% in February 2012 over 2011, while the Home Value Index fell by nearly 5%. In February, foreclosure sales accounted for 20% of all home sales.
“The rental market remains especially strong in areas that continue to experience consistent home value declines,” such as metro Chicago and Philadelphia. There are still problems in the housing market that are getting in the way, such as high negative equity and tons of foreclosures (including the shadow inventory). The increase in rentals is good news, however, especially for real estate investors who are attracted to distressed properties and will decrease overall inventory.
Read the full article here.
Anger Taken Out on Houses, Neighborhoods Lose
Saturday, May 5th, 2012 | Bank owned, Foreclosures | No Comments
Unfortunately, this is something that’s happening all too frequently. Homeowners who are in foreclosure and are being forced from their homes are not going quietly. Just the opposite – they are ransacking the place before they o.
Cabinets are being ripped out, light fixtures removed, appliances taken. Anger takes over and the homeowners don’t want to leave anything behind for the banks. The problem is this syndrome just succeeds in dragging down property values in a neighborhood even more than a standard foreclosure would. According to RealtyTrac, one in every 336 houses in Florida alone is in foreclosure. To give you a sense of the burden this places on neighborhoods, according to ABC, we as taxpayers will spend $40 million alone in cutting the lawns of foreclosed homes. No one wins.
Click here to read more.
2012 Could Be a Record Year for Short Sales
Sunday, April 29th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Real estate short sales, Short Sales | No Comments
Short sales are on the rise. Compared to a year ago, the number of short sales being done increased 33%, according to RealtyTrac. In fact, short sales beat out REO sales in 12 states. In all, 32 states saw an increase in pre-foreclosure sales, typically short sales.
There are also signs that lenders are more willing to accept aggressively priced short sales, as evidenced by the decline in pre-foreclosure home prices. In January, a short sale sold at an average 21% discount, as compared to the price of a non-foreclosure home sale. While the average time it took to complete a short sale actually tripled since 2007 when the average was 113 days, recent efforts have been made to streamline the process. Beginning in June, the GSEs will require servicers to reach a short sale decision within 30 days of receiving an offer.
For the complete article, click here.
Foreclosures Bring Profits for Many Market Sectors
Sunday, April 22nd, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
You’ve heard me say it before – there’s big money to be made in this very difficult housing market. Foreclosures are aplenty, with an equally high number of people ready to buy or rent the property on the other side, once you figure out your exit strategy. My home town of Cleveland is one of those markets where the opportunity is ripe. Home prices are low, but rental rates remain high. In fact, investors can quickly recoup their money, often in well under a year.
The biggest challenge can be making sure you have enough investment capital to fund your foreclosure purchases (which is something I can help you with, too). In addition to helping build the profits for investors, buying and fixing up foreclosures boost many different segments including cleanup and repair of the properties, as well as maintenance and property management.
To read more, click here.
Short Sale Timeline Requirements Set By GSEs
Sunday, April 22nd, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
This is big news for real estate investors, specifically anyone who does short sales. As of June 15, real estate agents working on short sale offers with loans backed by Freddie Mac or Fannie Mae should expect to receive a decision on the short sale within 15-30 days. This is part of the overall process to incorporate more transparency in the short sale process and speed things up.
If more than 30 days will be necessary, the servicers must provide weekly status updates, and reach a decision within 60 days from the offer. In turn, the borrower has some timelines to contend with, too. If the servicer provides a counteroffer, they will need to respond within five days.
Read the complete article here.
Single Family Rental Investments Thrive
Sunday, April 15th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
If you’re a real estate investor in northeast Ohio, then this is great news for you. If you’re in a market in Florida or the Midwest, the news is equally as good. According to CoreLogic’s MarketPulse report, these markets yield the highest single-family rental cap rates.
In the last five years, 3 million former homeowners have been turned into renters due to foreclosures. Right now, single-family rental investing is a $3 trillion market, with single-family rental units accounting for 52% of the residential rental market. So where are the most attractive markets for single-family rental investing? West Palm Beach, FL tops the list with 12.4%, followed closely by Cleveland with 12.3%, Ft. Lauderdale at 12%, Chicago with 11.6%, and Las Vegas with 11.4%. During the recession, single-family rents actually increased during the recession, while home values still decreased, making a perfect situation for investors.
For the complete article, click here.
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