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Archive for the ‘Stop foreclosure’ Category

The Making Home Affordable Program is moving forward slowly. A recent report reveals that only 4% of applicants receive a permanet modification. The government is keeping the pressure up to convert more mortgages. Click Here to read the entire article from RisMedia.

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US Treasury encourages Short SalesUnder the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.

Borrowers who complete a short sale under the program must be “fully released” from future liability for the debt, according to the guidelines.  The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements.

Click Here to read more on the article from Realtor.org

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Current prices are money in the Bank

Oversold Real Estate

 

While the media continues with bad news about the real estate market, working in the trenches is revealing a totally different picture. Yes home prices are continuing to slide, but real inventory is becoming increasingly scarce! Well priced homes that are in great condition, including foreclosures and short sales are selling within days of being listed. Under priced foreclosures are receiving multiple offers some times as many as twenty offers and many of them cash! Buyers are bidding these – homes up to over asking price. Market value for any home has a range from low, the medium sale price and the high. These foreclosures are selling from the medium to the very high of market value depending on location and condition. Every one seem to think that most of the Buyers are due to the $8000 Tax Credit, which much of it is, the problem with that scenario is where are all these CASH Buyers coming from? Cash Buyers are outbidding other Cash Buyers in their pursuit of a great deal. Buyers are far to concentrated on making an offer below the asking price, which is what they perceive to be a great deal, the problem with that is when houses are selling below $100 a square foot they are already selling for below construction cost and that price does not include the lot! So the great deal is already built-in to the oversold prices.  

Here is an example of what I am talking about. Amex on Monday had a promotion for a BMW 328. The promotion price for a $34000 car was about $19000. Trade in value or cost to replace is $30000 according to Kelly Blue Book. There were only three cars available at that price. How many thousands probably hundreds of thousands of Buyers tried to their very best to get that great deal on a Depreciating Asset! Real estate on the other hand is an Appreciating Asset which historically doubles in value every 10 years.  

 The question is how long is it before the pent-up demand to purchase homes starts driving the prices up from the oversold prices we are seeing today? I am not talking about the levels of price seen in 2005, I am talking about the cost to replace the home in today’s economy, cost to build including the lot which is what it would cost a Builder to build the home not including any profit.  

Yes, I know that real estate is a function of supply and demand as is any other commodity. The difference with real estate is that it is a home that you can live in and enjoy while it appreciates in value. you can’t live in that 2% CD in the bank, you can’t live in your gold and silver positions, you can’t live in any other commodity except real estate. I am not saying that real estate is poised to soar in value, what I am saying is that at some point the market has to come back to replacement costs!  I also don’t mean to infer that prices are going to soar in the coming months and years. Due to the exaggerated run up in the market from 2000 to 2005 this market cycle will probably be a much longer cycle than usual with prices continuing to slide although at a much slower rate. Once prices stabilize they will probably move sideways as all the foreclosures and short sales get bought up. Once all of that inventory is bought up prices will resume the normal price appreciation of a real estate cycle. 

If you are currently behind on your mortgage payments, unable to get a mortgage modification, and experiencing a hardship as defined in Acceptable Hardships ( click Here, ) this is the time to get your home on the market and avoid the consequences of Foreclosure!

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Mortgage Modification
Is your dream of Home Ownership fading away?

Is your dream fading away to the possibility of Foreclosure? This is a great article by Rismedia  about the process of Mortgage Modification and the many pitfalls and misinformation that is out there. Click Here to find out more about the process and what you need to do to get started on the road to dicovery. The most important thing to take away from the article is you need to have a plan of action and gathering the right information is the first step.

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Prime fixed-rate mortgages continue to be the driving force for foreclosures and represent 33% of the foreclosures started in the third quarter. Read more about it in this Article from the Mortgage Bankers Association. Click Here!

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Foreclosure Home

In this article published by Kimberly Miller of the Palm Beach Post, Florida is leading the Nation in Foreclosures with Banks taking back 12.74 % of the states mortgages. That is more that 1 in every 10 homeowners that are in default and the number is rising. To read more of this article, click here.

” If you continue doing the same thing, you will continue getting the same results ”

You are not alone and there is help available to you. Call us at 305-408-9200 for a discrete consultation to discuss your situation.

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