Showing posts with label HUD Home. Show all posts
Showing posts with label HUD Home. Show all posts
Wednesday, November 24, 2010
Wednesday, December 2, 2009
Friday, November 6, 2009
Monday, August 24, 2009
Late mortgage payments, foreclosures rise in Texas
Late mortgage payments, foreclosures rise in Texas
12:00 AM CDT on Friday, August 21, 2009
Texans continued to fall behind on their mortgage payments in the second quarter, and more than one in 10 Texas mortgages are late or in foreclosure.
At the end of June, 8.79 percent of residential mortgages in the state had delinquent payments and 1.84 percent went into foreclosure, the Mortgage Bankers Association reported Thursday.
Both figures rose compared with the first quarter.
Nationwide, a record 9.24 percent of residential loans were delinquent in the quarter. The closely watched measure includes all mortgages that are at least one payment behind. Texas ranks 17th nationally among states when ranked by the percentage of late mortgage payments.
The national average foreclosure rate in the second quarter was 3 percent.
Just four states – California, Florida, Arizona and Nevada – accounted for 44 percent of the nation's new home foreclosures during the second quarter, the Washington, D.C.-based trade group said.
"Florida continues to establish itself as the worst state in the union for mortgage performance, closely followed only by Nevada," said Jay Brinkmann, MBA's chief economist.
In Florida, 22.8 percent of mortgages were delinquent or in foreclosure, and in Nevada 21.3 percent of home loans have past-due payments or are in foreclosure.
In Texas, most of the loans facing foreclosure are subprime mortgages. In the second quarter, 28.49 percent of subprime adjustable-rate loans in the state were past due. That compares with an 8.18 percent delinquency rate for prime mortgages statewide.
About 30 percent of Texas mortgage holders are considered nonprime borrowers, compared with only 19 percent nationwide.
In areas where homeowners now owe more than their property is worth, the potential for foreclosure is larger. In the Dallas-Fort Worth area, just over 30 percent of mortgage holders are underwater, the latest reports show.
"In some areas where a number of borrowers have mortgages that are larger than the current value of their homes, any life events such a divorce or loss of a job are likely to translate into foreclosures until prices in those areas recover, not just flatten," Brinkmann said.
"As for the outlook, it is unlikely we will see meaningful reductions in the foreclosure and delinquency rates until the employment situation improves."
Cited from the Dallas Morning News
12:00 AM CDT on Friday, August 21, 2009
Texans continued to fall behind on their mortgage payments in the second quarter, and more than one in 10 Texas mortgages are late or in foreclosure.
At the end of June, 8.79 percent of residential mortgages in the state had delinquent payments and 1.84 percent went into foreclosure, the Mortgage Bankers Association reported Thursday.
Both figures rose compared with the first quarter.
Nationwide, a record 9.24 percent of residential loans were delinquent in the quarter. The closely watched measure includes all mortgages that are at least one payment behind. Texas ranks 17th nationally among states when ranked by the percentage of late mortgage payments.
The national average foreclosure rate in the second quarter was 3 percent.
Just four states – California, Florida, Arizona and Nevada – accounted for 44 percent of the nation's new home foreclosures during the second quarter, the Washington, D.C.-based trade group said.
"Florida continues to establish itself as the worst state in the union for mortgage performance, closely followed only by Nevada," said Jay Brinkmann, MBA's chief economist.
In Florida, 22.8 percent of mortgages were delinquent or in foreclosure, and in Nevada 21.3 percent of home loans have past-due payments or are in foreclosure.
In Texas, most of the loans facing foreclosure are subprime mortgages. In the second quarter, 28.49 percent of subprime adjustable-rate loans in the state were past due. That compares with an 8.18 percent delinquency rate for prime mortgages statewide.
About 30 percent of Texas mortgage holders are considered nonprime borrowers, compared with only 19 percent nationwide.
In areas where homeowners now owe more than their property is worth, the potential for foreclosure is larger. In the Dallas-Fort Worth area, just over 30 percent of mortgage holders are underwater, the latest reports show.
"In some areas where a number of borrowers have mortgages that are larger than the current value of their homes, any life events such a divorce or loss of a job are likely to translate into foreclosures until prices in those areas recover, not just flatten," Brinkmann said.
"As for the outlook, it is unlikely we will see meaningful reductions in the foreclosure and delinquency rates until the employment situation improves."
Cited from the Dallas Morning News
Wednesday, January 21, 2009
Thursday, October 30, 2008
Dallas Fort Worth homes will hold their values
By STEVE BROWN / The Dallas Morning Newsstevebrown@dallasnews.com
One of the biggest worries for today’s homebuyer is the continued drop in home prices.
While cheaper housing costs are appealing, many consumers fret that prices will keep falling after they buy.
Texans shouldn’t be so concerned, according to a new report by the Center for Economic and Policy Research and the National Low Income Housing Coalition.
The analysis of the 100 largest U.S. home markets shows that Dallas-Fort Worth homebuyers are more likely to preserve home equity during the next four years.
Houston, D-FW and San Antonio are among the tops in the country in this forecast.
The study is based on a purchase of homes priced at 75 percent of the median price, which is about $150,000 in D-FW. The home purchase is financed at between 6 and 8 percent interest.
By 2012, the purchaser of a mid-priced home in Houston, D-FW and San Antonio will have, on average, more than $80,000 in equity in the house, the researchers predict.
While such forecasts are often academic, the trend it highlights toward higher home equity here is important. Almost a third of the metropolitan areas in the report are forecast to see a net decline in home equity during the same period.
The study concludes that home prices in “many communities have yet to hit bottom and significant price declines must be reckoned with.”
The remaining downside is worst in regions of the country that saw big run-ups in home prices before the current decline.
The researchers warn that it would be a mistake for governments to try and stop the current housing market correction and “maintain what are historically unprecedented high home prices.”
The positive outlook for Texas home equity growth isn’t a surprise to Mark Dotzour, top economist with Texas A&M University’s Real Estate Center.
“It confirms that there never was a price bubble in any Texas city and consequently the likelihood of equity increase is higher,” Dr. Dotzour said. “I find it interesting that their policy decision is to recommend that government allows prices to continue to fall.”
Median preowned home prices have fallen by between 2 percent and 3 percent in North Texas since peaking in mid-2007.
During the last year, nationwide home sales prices have dropped by more than 15 percent.
WHERE'S THE EQUITY?
Forecast of average home equity a buyer of a home priced at 75 percent of the median price could see during the next four years. From a comparison of 100 largest U.S. housing markets.
GREATEST INCREASES
McAllen
$90,795
Houston
$82,735
Dallas-Fort Worth
$81,338
San Antonio
$81,308
Rochester, N.Y.
$78,947
SHARPEST DECLINES
San Jose
-328,394
San Francisco
-226,489
Los Angeles
-168,069
Bridgeport, Conn.
-164,671
Oxnard, Calif.
$148,076
One of the biggest worries for today’s homebuyer is the continued drop in home prices.
While cheaper housing costs are appealing, many consumers fret that prices will keep falling after they buy.
Texans shouldn’t be so concerned, according to a new report by the Center for Economic and Policy Research and the National Low Income Housing Coalition.
The analysis of the 100 largest U.S. home markets shows that Dallas-Fort Worth homebuyers are more likely to preserve home equity during the next four years.
Houston, D-FW and San Antonio are among the tops in the country in this forecast.
The study is based on a purchase of homes priced at 75 percent of the median price, which is about $150,000 in D-FW. The home purchase is financed at between 6 and 8 percent interest.
By 2012, the purchaser of a mid-priced home in Houston, D-FW and San Antonio will have, on average, more than $80,000 in equity in the house, the researchers predict.
While such forecasts are often academic, the trend it highlights toward higher home equity here is important. Almost a third of the metropolitan areas in the report are forecast to see a net decline in home equity during the same period.
The study concludes that home prices in “many communities have yet to hit bottom and significant price declines must be reckoned with.”
The remaining downside is worst in regions of the country that saw big run-ups in home prices before the current decline.
The researchers warn that it would be a mistake for governments to try and stop the current housing market correction and “maintain what are historically unprecedented high home prices.”
The positive outlook for Texas home equity growth isn’t a surprise to Mark Dotzour, top economist with Texas A&M University’s Real Estate Center.
“It confirms that there never was a price bubble in any Texas city and consequently the likelihood of equity increase is higher,” Dr. Dotzour said. “I find it interesting that their policy decision is to recommend that government allows prices to continue to fall.”
Median preowned home prices have fallen by between 2 percent and 3 percent in North Texas since peaking in mid-2007.
During the last year, nationwide home sales prices have dropped by more than 15 percent.
WHERE'S THE EQUITY?
Forecast of average home equity a buyer of a home priced at 75 percent of the median price could see during the next four years. From a comparison of 100 largest U.S. housing markets.
GREATEST INCREASES
McAllen
$90,795
Houston
$82,735
Dallas-Fort Worth
$81,338
San Antonio
$81,308
Rochester, N.Y.
$78,947
SHARPEST DECLINES
San Jose
-328,394
San Francisco
-226,489
Los Angeles
-168,069
Bridgeport, Conn.
-164,671
Oxnard, Calif.
$148,076
Thursday, October 2, 2008
Friday, August 29, 2008
New blog site for foreclosures
I would like to announce a new website that will help in educating families and individuals who may be struggling to make their mortgage payments on time.
www.JJStopsforeclosure.com
This site is a wonderful resource to educate yourself on your options if you are struggling with a mortgage due to an adjusting rate (ARM), divorce or any other financial catastrophy that you may be enduring.
If you are not struggling, you may know someone that is. Pass on this much needed information.
www.JJStopsforeclosure.com
This site is a wonderful resource to educate yourself on your options if you are struggling with a mortgage due to an adjusting rate (ARM), divorce or any other financial catastrophy that you may be enduring.
If you are not struggling, you may know someone that is. Pass on this much needed information.
Tuesday, August 12, 2008
Who do you know?
Sellers are having a hard time getting their listings sold in todays turbulent market. Listings have to be professionally marketed in a troubled market.
My team lists our houses and MARKETS them to over 30 different websites, 2 different print publications, direct mail program and email program.
Who do you know that is struggling to get a home sold? Have them call me and I can look at their current marketing program for their house and advise them; no strings attached!
My team lists our houses and MARKETS them to over 30 different websites, 2 different print publications, direct mail program and email program.
Who do you know that is struggling to get a home sold? Have them call me and I can look at their current marketing program for their house and advise them; no strings attached!
Monday, August 11, 2008
Danger of buying a house FSBO....
What are the dangers of buying a house FSBO
-You'll probably overpay for the house without an agent
-The seller probably won't disclose what he legally needs to disclose and theres no one there to make him
-Comps for the area where you are buying figure in real estate commissions...
-Peronsality with FSBO get in way of negotiations in many instances
-Good Realtors can negotiate better terms for their buyer clients
-Buyin a house (scheduling inspections, escrow, managing process is a full time job etc.)
There are exceptions to these....however, consider, I just met with a couple that bought a FSBO 2 years ago....the seller never disclosed that the house had serious foundation problems....the buyer didn't know to look....did my listing presentation and told them they needed to have someone look at the foundation and the bill comes to over $12,000...long story short, they are going to get to save up for foundation repairs on a house that they overpaid for 2 years ago....
Same goes with people that go into the builder...a good agent who sees real estate EVERYDAY (not a friend who's trying to break in the business, or a gal in Sunday school that does it on the side) is worth their weight in commissions....BUT, you have to find a good agent...a buyers agent works on your behalf and owes you fiduciary responsibility throughought the transaction....
-You'll probably overpay for the house without an agent
-The seller probably won't disclose what he legally needs to disclose and theres no one there to make him
-Comps for the area where you are buying figure in real estate commissions...
-Peronsality with FSBO get in way of negotiations in many instances
-Good Realtors can negotiate better terms for their buyer clients
-Buyin a house (scheduling inspections, escrow, managing process is a full time job etc.)
There are exceptions to these....however, consider, I just met with a couple that bought a FSBO 2 years ago....the seller never disclosed that the house had serious foundation problems....the buyer didn't know to look....did my listing presentation and told them they needed to have someone look at the foundation and the bill comes to over $12,000...long story short, they are going to get to save up for foundation repairs on a house that they overpaid for 2 years ago....
Same goes with people that go into the builder...a good agent who sees real estate EVERYDAY (not a friend who's trying to break in the business, or a gal in Sunday school that does it on the side) is worth their weight in commissions....BUT, you have to find a good agent...a buyers agent works on your behalf and owes you fiduciary responsibility throughought the transaction....
Friday, August 8, 2008
Before school rush
Every year, there is a before school rush in real estate. People wanting to get moved before school starts back up. This year, like everything else, it has been a little slower than years past. The tremendous heat has also played a role in people staying indoors instead of looking at new houses.
I, however, have been very busy. I have seen that before school rush in addition to many investors coming out to begin buying the some of the best real estate deals that I think we'll see for a long time. If you are a buyer, you need to get off the fence and get into the market now.
I, however, have been very busy. I have seen that before school rush in addition to many investors coming out to begin buying the some of the best real estate deals that I think we'll see for a long time. If you are a buyer, you need to get off the fence and get into the market now.
Monday, August 4, 2008
Analysts: U.S. mortgage defaults to accelerate, peak in a couple of years
07:24 AM CDT on Monday, August 4, 2008
Associated Press
The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building.
Homeowners with good credit are falling behind on their payments in growing numbers, even as the problems with mortgages made to people with weak, or subprime, credit are showing their first, tentative signs of leveling off after two years of spiraling defaults.
The percentage of mortgages in arrears in the category of loans one rung above subprime, so-called alternative-A mortgages, quadrupled to 12 percent in April from a year earlier. Delinquencies among prime loans, which account for most of the $12 trillion market, doubled to 2.7 percent in that time.
The mortgage troubles have been exacerbated by an economy that is still struggling. Reports last week showed another drop in home prices, slower-than-expected economic growth and a huge loss at General Motors. On Friday, the Labor Department reported that the unemployment rate in July climbed to a four-year high.
While it is difficult to draw precise parallels among various segments of the mortgage market, the arc of the crisis in subprime loans suggests that the problems in the broader market may not peak for another year or two, analysts said.
Defaults are likely to accelerate because many homeowners' monthly payments are rising rapidly. The higher bills come as home prices continue to decline and banks tighten their lending standards, making it harder for people to refinance loans or sell their homes. Of particular concern are “alt-A” loans, many of which were made to people with good credit scores without proof of their income or assets.
“Subprime was the tip of the iceberg,” said Thomas H. Atteberry, president of First Pacific Advisors, a investment firm in Los Angeles that trades mortgage securities. “Prime will be far bigger in its impact.”
In a conference call with analysts last month, James Dimon, the chairman and chief executive of JPMorgan Chase, said he expected losses on prime loans at his bank to triple in the coming months and described the outlook for them as “terrible.”
Delinquencies on mortgages tend to peak three to five years after loans are made, said Mark Fleming, the chief economist at First American CoreLogic, a research firm. Not surprisingly, subprime loans from 2005 appear closer to the end of defaults than those made in 2007, for which default rates continue to rise steeply.
“We will hit those points in a few years, and that will help in many ways,” Fleming said, referring to the loans made later in the housing boom. “We just have to survive through this part of the cycle.”
Associated Press
The first wave of Americans to default on their home mortgages appears to be cresting, but a second, far larger one is quickly building.
Homeowners with good credit are falling behind on their payments in growing numbers, even as the problems with mortgages made to people with weak, or subprime, credit are showing their first, tentative signs of leveling off after two years of spiraling defaults.
The percentage of mortgages in arrears in the category of loans one rung above subprime, so-called alternative-A mortgages, quadrupled to 12 percent in April from a year earlier. Delinquencies among prime loans, which account for most of the $12 trillion market, doubled to 2.7 percent in that time.
The mortgage troubles have been exacerbated by an economy that is still struggling. Reports last week showed another drop in home prices, slower-than-expected economic growth and a huge loss at General Motors. On Friday, the Labor Department reported that the unemployment rate in July climbed to a four-year high.
While it is difficult to draw precise parallels among various segments of the mortgage market, the arc of the crisis in subprime loans suggests that the problems in the broader market may not peak for another year or two, analysts said.
Defaults are likely to accelerate because many homeowners' monthly payments are rising rapidly. The higher bills come as home prices continue to decline and banks tighten their lending standards, making it harder for people to refinance loans or sell their homes. Of particular concern are “alt-A” loans, many of which were made to people with good credit scores without proof of their income or assets.
“Subprime was the tip of the iceberg,” said Thomas H. Atteberry, president of First Pacific Advisors, a investment firm in Los Angeles that trades mortgage securities. “Prime will be far bigger in its impact.”
In a conference call with analysts last month, James Dimon, the chairman and chief executive of JPMorgan Chase, said he expected losses on prime loans at his bank to triple in the coming months and described the outlook for them as “terrible.”
Delinquencies on mortgages tend to peak three to five years after loans are made, said Mark Fleming, the chief economist at First American CoreLogic, a research firm. Not surprisingly, subprime loans from 2005 appear closer to the end of defaults than those made in 2007, for which default rates continue to rise steeply.
“We will hit those points in a few years, and that will help in many ways,” Fleming said, referring to the loans made later in the housing boom. “We just have to survive through this part of the cycle.”
Friday, August 1, 2008
Link to area home sales for 2008
The first half of the years real estate results are in and it confirms what I have seen in the market. Sales are down. In some parts of DFW, they are down dramatically. However, a good marketing program, a house priced correctly and in good repair will help move you house quickly. This isn't a market to hold out for a high return on your equity. It is a market to just get it sold.
Click here to go to the link
Click here to go to the link
Monday, June 30, 2008
DFW Housing Prices per Dallas News
Dallas home prices fell 3.4 percent in April from a year earlier
11:15 PM CDT on Tuesday, June 24, 2008
By STEVE BROWN / The Dallas Morning Newsstevebrown@dallasnews.com
Dallas home prices took another dip in the latest measure of the U.S. housing market.
Local home prices fell 3.4 percent in April from a year earlier in the Standard & Poor's/Case-Shiller home price index released Tuesday.
The local decline is much lower than the 15.3 percent falloff in prices for the 20 cities surveyed in the monthly report. It was the largest nationwide drop in home prices on record.
Across the country, home prices have retreated to levels last seen in August 2004.
Every city in the benchmark Case-Shiller April report saw prices lower than a year ago.
Las Vegas and Miami had the biggest price declines, down more than 26 percent from last year.
The smallest decline was in Charlotte, N.C. – down 0.1 percent.
But there were small gains in some markets in April compared with March, including a 1.1 percent increase in Dallas.
"There might be some regional pockets of improvement, but on an annual basis the overall numbers continue to decline," Standard & Poor's David Blitzer said.
"If there is anywhere to look for possible improvement, it would be that the pace of monthly declines has slowed down for most of the markets," Mr. Blitzer said.
Case-Shiller tracks the prices of typical single-family homes in each metropolitan area.
The index survey does not include condominiums and townhouses. It only covers pre-owned properties – no new construction.
The Case-Shiller researchers compare "arms-length sales" of specific single-family homes over time.
Also Tuesday, the Office of Federal Housing Enterprise Oversight reported that its home price index showed a 4.6 percent nationwide decline in prices for the 12 months ending in April.
But in the region that includes Texas, prices were up 1.9 percent from a year ago.
Agency surveys don't include all houses sold in the market and only those with mortgages of less than $417,000.
A report released this week by Harvard University's Joint Center for Housing Studies suggests that a turnaround in the nation's depressed housing market is a ways off.
Harvard's State of the Nation's Housing 2008 study described the current housing recession as "the worst in a generation."
11:15 PM CDT on Tuesday, June 24, 2008
By STEVE BROWN / The Dallas Morning Newsstevebrown@dallasnews.com
Dallas home prices took another dip in the latest measure of the U.S. housing market.
Local home prices fell 3.4 percent in April from a year earlier in the Standard & Poor's/Case-Shiller home price index released Tuesday.
The local decline is much lower than the 15.3 percent falloff in prices for the 20 cities surveyed in the monthly report. It was the largest nationwide drop in home prices on record.
Across the country, home prices have retreated to levels last seen in August 2004.
Every city in the benchmark Case-Shiller April report saw prices lower than a year ago.
Las Vegas and Miami had the biggest price declines, down more than 26 percent from last year.
The smallest decline was in Charlotte, N.C. – down 0.1 percent.
But there were small gains in some markets in April compared with March, including a 1.1 percent increase in Dallas.
"There might be some regional pockets of improvement, but on an annual basis the overall numbers continue to decline," Standard & Poor's David Blitzer said.
"If there is anywhere to look for possible improvement, it would be that the pace of monthly declines has slowed down for most of the markets," Mr. Blitzer said.
Case-Shiller tracks the prices of typical single-family homes in each metropolitan area.
The index survey does not include condominiums and townhouses. It only covers pre-owned properties – no new construction.
The Case-Shiller researchers compare "arms-length sales" of specific single-family homes over time.
Also Tuesday, the Office of Federal Housing Enterprise Oversight reported that its home price index showed a 4.6 percent nationwide decline in prices for the 12 months ending in April.
But in the region that includes Texas, prices were up 1.9 percent from a year ago.
Agency surveys don't include all houses sold in the market and only those with mortgages of less than $417,000.
A report released this week by Harvard University's Joint Center for Housing Studies suggests that a turnaround in the nation's depressed housing market is a ways off.
Harvard's State of the Nation's Housing 2008 study described the current housing recession as "the worst in a generation."
Thursday, June 19, 2008
Precarious pricing
If you follow the trends these days, you just might follow them into a ditch. It’s been said time and time again, but it’s constantly discussed, and for good reason. Pricing a home too high in a lulling (or falling) economy is quite simply counterproductive for all parties involved. The seller can’t seem to sell their home. The buyer can’t find a home within their parameters. And the real estate agents involved might not even make a commission. So no matter who you are in this equation, try to combine your optimism with realism and price your home accordingly.
Friday, June 13, 2008
73000 homes went into foreclosure in May
73,000 homes lost to foreclosure in May
Filings for the month jumped by 48%. Nevada, California, and Florida continue to bear the brunt of the crisis.
NEW YORK (CNNMoney.com) -- The housing crisis grew worse in May, as more than 73,000 American families lost their homes to bank repossessions, up a staggering 158% from the 28,548 households that were dispossessed in May 2007.
Foreclosure filings of all kinds, including default notices, notices of sheriff's sales and bank repossessions, were up 48% from May 2007, according to the latest release from RealtyTrac, the online marketer of foreclosed properties. Filings increased 7% from April.
"May was the 29th straight month we've seen a year-over-year increase," RealtyTrac's CEO James Saccacio said in a statement.
The report follows months of increasingly gloomy housing market conditions with home prices, existing home sales and new housing starts all plummeting. The S&P Case/Shiller Home Price Index posted a record 14.1% decline in national home prices for the 12 months ending March 31, while April's existing-home sales were down 17.5% year over year.
Worst-hit cities
Nevada remained the most troubled default state for the 17th consecutive month. One out of every 118 households there received some kind of foreclosure filing during May, up 24% from the previous month and 72% from a year ago.
California led the nation in the sheer volume of filings, with nearly 72,000 properties in some stage of default, which works out to one out of every 183 households. More than 20,000 Californians lost their homes, more than any other state.
Florida recorded over 37,000 filings and 4,300 bank repossessions. Nine of the top 10 cities with the most foreclosure filings were in either Florida or California.
Stockton, Calif., was the worst-hit city last month, with one filing for every 75 households. Cape Coral, Fla., where one out of every 79 homes received a filing, was second. Other hard-hit places were Merced, Calif., which ranked third, Modesto, Calif., which was fourth and Riverside, Calif., which was fifth.
Las Vegas was the only city outside of California and Florida to crack the top 10. In May it had one filing for every 96 households - about five times the national average - which put it in sixth place.
Default rates will rise for many more months, according to RealtyTrac vice president Rick Sharga, who thinks that there could be another 18 months of this activity left. Several factors will continue to boost filings.
"We haven't even seen the full effects of the Alt-As (mostly loans issued without verification of income and assets) yet," said Sharga. Many of these mortgages are option ARMs, negative amortization loans that let borrowers make very small, minimum payments that don't even cover the interest they owe each month. But soon, these payments will spike.
Also driving foreclosures is the fact that more people are walking away from homes they bought at the top of the market that have since lost a lot of value, according to Keith Gumbinger of HSH Associates, a publisher of mortgage industry data.
"These people are looking at the present value of their homes and at their debts and saying, 'What's the point of paying the mortgage?'" said Gumbinger. "We may have not finished wringing these people out of the market yet."
Sharga says that price declines are probably the market's biggest problem right now. "If prices stabilize, foreclosures will too," he said.
As more people than ever are losing their homes, some state and local governments are trying to slow the foreclosure tsunami. Colorado has extended the initial default period to as much as 125 days, and Maryland has increased it to 150 days.
In Philadelphia, homeowner's can't be foreclosed on without having the opportunity to go through a court-sponsored reconciliation session.
Additionally, the administration's foreclosure prevention initiative Hope Now says it has helped over one million at-risk borrowers avoid foreclosure.
These measures help, according to Sharga, but to really break the spiral, more intervention on the federal level may be needed.
"The quickest solution is to get buyers buying again," he said. "The government may have to take some strong action to make that happen."
Filings for the month jumped by 48%. Nevada, California, and Florida continue to bear the brunt of the crisis.
NEW YORK (CNNMoney.com) -- The housing crisis grew worse in May, as more than 73,000 American families lost their homes to bank repossessions, up a staggering 158% from the 28,548 households that were dispossessed in May 2007.
Foreclosure filings of all kinds, including default notices, notices of sheriff's sales and bank repossessions, were up 48% from May 2007, according to the latest release from RealtyTrac, the online marketer of foreclosed properties. Filings increased 7% from April.
"May was the 29th straight month we've seen a year-over-year increase," RealtyTrac's CEO James Saccacio said in a statement.
The report follows months of increasingly gloomy housing market conditions with home prices, existing home sales and new housing starts all plummeting. The S&P Case/Shiller Home Price Index posted a record 14.1% decline in national home prices for the 12 months ending March 31, while April's existing-home sales were down 17.5% year over year.
Worst-hit cities
Nevada remained the most troubled default state for the 17th consecutive month. One out of every 118 households there received some kind of foreclosure filing during May, up 24% from the previous month and 72% from a year ago.
California led the nation in the sheer volume of filings, with nearly 72,000 properties in some stage of default, which works out to one out of every 183 households. More than 20,000 Californians lost their homes, more than any other state.
Florida recorded over 37,000 filings and 4,300 bank repossessions. Nine of the top 10 cities with the most foreclosure filings were in either Florida or California.
Stockton, Calif., was the worst-hit city last month, with one filing for every 75 households. Cape Coral, Fla., where one out of every 79 homes received a filing, was second. Other hard-hit places were Merced, Calif., which ranked third, Modesto, Calif., which was fourth and Riverside, Calif., which was fifth.
Las Vegas was the only city outside of California and Florida to crack the top 10. In May it had one filing for every 96 households - about five times the national average - which put it in sixth place.
Default rates will rise for many more months, according to RealtyTrac vice president Rick Sharga, who thinks that there could be another 18 months of this activity left. Several factors will continue to boost filings.
"We haven't even seen the full effects of the Alt-As (mostly loans issued without verification of income and assets) yet," said Sharga. Many of these mortgages are option ARMs, negative amortization loans that let borrowers make very small, minimum payments that don't even cover the interest they owe each month. But soon, these payments will spike.
Also driving foreclosures is the fact that more people are walking away from homes they bought at the top of the market that have since lost a lot of value, according to Keith Gumbinger of HSH Associates, a publisher of mortgage industry data.
"These people are looking at the present value of their homes and at their debts and saying, 'What's the point of paying the mortgage?'" said Gumbinger. "We may have not finished wringing these people out of the market yet."
Sharga says that price declines are probably the market's biggest problem right now. "If prices stabilize, foreclosures will too," he said.
As more people than ever are losing their homes, some state and local governments are trying to slow the foreclosure tsunami. Colorado has extended the initial default period to as much as 125 days, and Maryland has increased it to 150 days.
In Philadelphia, homeowner's can't be foreclosed on without having the opportunity to go through a court-sponsored reconciliation session.
Additionally, the administration's foreclosure prevention initiative Hope Now says it has helped over one million at-risk borrowers avoid foreclosure.
These measures help, according to Sharga, but to really break the spiral, more intervention on the federal level may be needed.
"The quickest solution is to get buyers buying again," he said. "The government may have to take some strong action to make that happen."
Friday, June 6, 2008
Discount brokers
Online and fee-for-service brokers have become a very popular way for some individuals to list their homes. However, just know that in everything (ESPECIALLY real estate) you definatley get what you pay for.
I took a listing recently that had been listed with Buy Owner for over a year. The sellers paid over $2000 to get Buy Owner to ship them a crude sign, a dvd of how to sell your home and that's about it. After a year, and having the ugly buy owner sign fade, the sellers called me because they were at a loss for what to do. I listed their home and sold it in less than a month.
Now, it would be great if I could collect $2000 up front and then the house never sells. Is there a chance it could sell? Sure, but next time you see a buy owner sign, call the numbers and see if anyone even picks up the phone after 5 p.m. or at all on the weekends.
A professional like myself gets paid when we have done our job. That job is to market and sell your home. If you do use a discount broker, you need to be aware of how to negotiate, market your home, structure a deal that will close, hire the right title company, apraiser, surveyor, inspector and you need to know to look for in the TREC real estate contract.
I took a listing recently that had been listed with Buy Owner for over a year. The sellers paid over $2000 to get Buy Owner to ship them a crude sign, a dvd of how to sell your home and that's about it. After a year, and having the ugly buy owner sign fade, the sellers called me because they were at a loss for what to do. I listed their home and sold it in less than a month.
Now, it would be great if I could collect $2000 up front and then the house never sells. Is there a chance it could sell? Sure, but next time you see a buy owner sign, call the numbers and see if anyone even picks up the phone after 5 p.m. or at all on the weekends.
A professional like myself gets paid when we have done our job. That job is to market and sell your home. If you do use a discount broker, you need to be aware of how to negotiate, market your home, structure a deal that will close, hire the right title company, apraiser, surveyor, inspector and you need to know to look for in the TREC real estate contract.
Tuesday, April 29, 2008
Process for buying a HUD foreclosure
Who doesn’t love a bargain? For the thrifty capitalist, investing in HUD foreclosures—residential properties owned by the U.S. Department of Housing and Urban Development—appears to be exactly that. Furthermore, the possibility that HUD foreclosure homes might become increasingly available in the coming years should pique renewed interest among investors; however, investors should be aware of limitations in the process of purchasing HUD foreclosures that may or may not fit their personal aims for the investment.
A HUD foreclosure, or HUD home, is a single family or multi-family residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage, according to hud.gov. In the wake of the subprime lending crisis, FHA-insured mortgage loans are becoming more popular among homebuyers who experience difficulty in qualifying for traditional bank loans. An increase in the number of FHA-insured loans distributed to homebuyers is likely to be accompanied by an eventual increase in HUD foreclosures. As a result, investors could stand to reap high profit margins resulting from the affordability and availability of HUD homes on the market.
Most HUD properties are hardly dream homes, however, and are almost never found in high-cost urban areas. FHA-insured mortgages for properties in high-cost areas such as New York and Los Angeles must not exceed a maximum loan limit of $362,790, according the FHA.com—a prohibitively low amount when compared to the actual selling prices of most homes in those areas. Furthermore, all HUD homes are sold as is, and selling prices are discounted based on the extent of repairs and renovations that need to be done.
The process of buying a HUD foreclosure is significantly different than that of purchasing a traditional home. HUD homes are sold through a bidding process that puts investors in line behind intended owner-occupants. During the first 10 days that a HUD home is listed for sale, only owner-occupants are permitted to place bids; if a successful bid is not accepted by the time the initial priority period has elapsed, bidding is opened to investors as well.
HUD homes for sale are posted on Internet listing sites by special HUD-contracted management companies. Bids for HUD homes must be placed through a HUD-registered broker or agent and are usually submitted electronically.
In addition, HUD will pay for some closing and sales commission costs. According to Harrington, Moran and Barksdale, Inc. (HBMI), a company that markets and manages HUD single family homes for several states, HUD will pay up to 5 percent for broker commission costs and up to 3 percent for standard closing items, excluding the closing agent fee. HUD will pay the entire closing agent fee if buyers use HUD closing agents; conversely, buyers who choose to use a non-HUD agent must pay the fees and work with a HUD agent on some legal items.
Although HUD will pay broker commissions and other closing costs, the amount that HUD has to pay is subtracted from the net worth of the bid. Therefore, a bid offer that includes a broker commission of 2 percent would be viewed as more favorable than the same bid amount that includes a 5 percent commission.
Consumers must provide an earnest money deposit to their real estate broker by the time of electronic bidding; deposits can be as low as $500 for properties selling for less than $50,000, according to ForeclosuresToGo.com. Earnest money deposits for winning bids are immediately submitted to the HUD closing agent.
Once a bid is won, the purchaser must close within a time period specified by the closing agent and the correct sales contract must be submitted quickly—within 48 hours for most states. A strict settlement deadline is set, usually 30 to 60 days from the date of the accepted contract.
Investing in HUD foreclosures offers affordability and potential for good returns, but investors, as always, should do their research and exercise patience when dealing with a bidding process that generally caters to owner-occupant buyers. For more information on purchasing HUD homes and internet listing sites, email J.J. at JJ@JJChapa.com .
A HUD foreclosure, or HUD home, is a single family or multi-family residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage, according to hud.gov. In the wake of the subprime lending crisis, FHA-insured mortgage loans are becoming more popular among homebuyers who experience difficulty in qualifying for traditional bank loans. An increase in the number of FHA-insured loans distributed to homebuyers is likely to be accompanied by an eventual increase in HUD foreclosures. As a result, investors could stand to reap high profit margins resulting from the affordability and availability of HUD homes on the market.
Most HUD properties are hardly dream homes, however, and are almost never found in high-cost urban areas. FHA-insured mortgages for properties in high-cost areas such as New York and Los Angeles must not exceed a maximum loan limit of $362,790, according the FHA.com—a prohibitively low amount when compared to the actual selling prices of most homes in those areas. Furthermore, all HUD homes are sold as is, and selling prices are discounted based on the extent of repairs and renovations that need to be done.
The process of buying a HUD foreclosure is significantly different than that of purchasing a traditional home. HUD homes are sold through a bidding process that puts investors in line behind intended owner-occupants. During the first 10 days that a HUD home is listed for sale, only owner-occupants are permitted to place bids; if a successful bid is not accepted by the time the initial priority period has elapsed, bidding is opened to investors as well.
HUD homes for sale are posted on Internet listing sites by special HUD-contracted management companies. Bids for HUD homes must be placed through a HUD-registered broker or agent and are usually submitted electronically.
In addition, HUD will pay for some closing and sales commission costs. According to Harrington, Moran and Barksdale, Inc. (HBMI), a company that markets and manages HUD single family homes for several states, HUD will pay up to 5 percent for broker commission costs and up to 3 percent for standard closing items, excluding the closing agent fee. HUD will pay the entire closing agent fee if buyers use HUD closing agents; conversely, buyers who choose to use a non-HUD agent must pay the fees and work with a HUD agent on some legal items.
Although HUD will pay broker commissions and other closing costs, the amount that HUD has to pay is subtracted from the net worth of the bid. Therefore, a bid offer that includes a broker commission of 2 percent would be viewed as more favorable than the same bid amount that includes a 5 percent commission.
Consumers must provide an earnest money deposit to their real estate broker by the time of electronic bidding; deposits can be as low as $500 for properties selling for less than $50,000, according to ForeclosuresToGo.com. Earnest money deposits for winning bids are immediately submitted to the HUD closing agent.
Once a bid is won, the purchaser must close within a time period specified by the closing agent and the correct sales contract must be submitted quickly—within 48 hours for most states. A strict settlement deadline is set, usually 30 to 60 days from the date of the accepted contract.
Investing in HUD foreclosures offers affordability and potential for good returns, but investors, as always, should do their research and exercise patience when dealing with a bidding process that generally caters to owner-occupant buyers. For more information on purchasing HUD homes and internet listing sites, email J.J. at JJ@JJChapa.com .
Friday, April 18, 2008
Todays Dallas Morning news
According to NTREIS, the downtown continues to spread with home sale prices continuing to slump.
Additionally, the foreclosure outbreak is beginning to affect higher end homes.
Links to article click here
Additionally, the foreclosure outbreak is beginning to affect higher end homes.
Links to article click here
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