forclosures
FHFA Director Supports HAMP Principal Reductions
Sunday, April 15th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
Acting Director of the Federal Housing Finance Agency Edward DeMarco released preliminary findings from an FHFA analysis earlier this week, and stated, “principal reductions done under large incentive payments from the Treasury Department would save Fannie Mae and Freddie Mac enough money to begin an umbrella write-down program,” – up to $1.7 billion.
Despite this, DeMarco stressed that strategic defaults could quickly erase any benefit. When looking at 700,000 borrowers, it’s predicted that Freddie and Fannie could lose $63.7 billion if the loans aren’t modified. “With the tripled incentive payments to reduce principal under HAMP, the losses would be $53.7 billion if some principal is forgiven.” Reducing the principal would save the GSE’s $1.7 billion, at a cost of $2.1 billion to taxpayers for the program.
Read the complete article here.
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.
No Surprise Here: House Hunting Goes Mobile
Friday, April 6th, 2012 | Real Estate Investing | No Comments
This article underscores the importance that mobile technology is having on the housing market and buyers and sellers alike. A whopping 68% of house hunters are using their mobile devices (smart phones or tablets) to search for home, and then contact a real estate professional to close in on the deal.
In this survey, conducted by The Real Estate Book, the prospective homebuyers who relied on their mobile device during their search found it “an essential tool.” They use them for narrowing their search area, viewing photos and videos, finding details, making inquiries and even setting up viewing appointments. This is a great emphasis on the importance we at SREC place on marketing and taking advantage of all the tools available, including mobile technology.
To read more, click 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.
Housing Comes Out of Hibernation
Sunday, April 1st, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing, Short Sales | No Comments
Spring is officially here, and that signals an awakening of all sorts, including the housing market. The numbers indicate an upswing not just due to the season, but compared to the slump of the previous few years.
Housing starts are up 19% over the past year. Not only that, but they are up 34% in February 2012 vs. February 2011. Add to that an increase in the National Association of Home Builders confidence survey, reaching the highest level since mid-2007. So what is contributing to this shift? Reduced unemployment, new rental construction and stabilizing home values in neighborhoods, to name a few.
Read the complete article 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.
Be a Pro By Learning These 5 Things
Sunday, March 25th, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
There are certain characteristics or traits that every successful real estate investor looks for in an area before buying a home, whether to rehab, retail or wholesale. Knowing these five things can make a significant difference in the success of your exit strategy and in turn, impact on your profits.
These are all things that me and my coaches have been telling SREC students for years, because they can really make a big impact on your business. They are all elements that factor in to your investing sweet spot:
- Learn local pricing – Make sure you understand pricing trends in an area. What is the average home price here, compared to neighboring towns? You’ll not only learn which areas are in demand, but also understand what is considered fair pricing.
- New roads, shopping centers and schools – Where there is a new infrastructure being put in place, there is growth and the hint of an up-and-coming area, making existing homes more desirable.
- Find low-tax alternatives – A community’s tax structure can greatly impact your investing decisions. A community with a low tax structure will be more desirable than one nearby with a higher tax structure. Beware of communities that seem overcrowded – a tax increase to pay for infrastructure improvements may be on the horizon.
- Good schools – Strong school districts are a prime signal of a desirable area, especially to parents with young families.
- Outer suburbs – It’s no secret that with big cities usually comes big home prices. So that’s the time to look to the outskirts and snag the good deals while you can, because it’s just a matter of time before the population spreads beyond the city limits.
To learn more, click here.
Time to Get into the Rental Game?
Sunday, March 25th, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
This is good news for anyone who is looking to get into the rental property business. Zillow recently released their Zillow Rent Index which examines the home rental markets around the country. Despite falling home values, the median rent rate increased 3% from January 2011 to January 2012.
That 3% number is much higher in many markets, in some cases matching the home value decline rate. For instance, in the Minneapolis-St. Paul market, home values fell just over 8%, but rent rates rose 11%. We’re seeing similar numbers in Chicago, with values dropping over 10% but rent increasing by 9%. According to Zillow Chief Economist Dr. Stan Humphries, “A thriving rental market will stimulate home sales as investors snap up low-priced inventory to convert to rentals. That, in turn, will lower the number of homes on the market, which will eventually help put a floor under the values of all homes.”
To read more, click 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.
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