Foreclosures

22July

Foreclosures Drop Significantly

  • Comments Off on Foreclosures Drop Significantly

The overall health of the housing sector appears to be improving.  The foreclosure rate has been declining over the past few years and hit an 8-year low in June according to a RealtyTrac report citing 107,194 U.S. properties filed for foreclosure.  This was a 19% drop from the previous 6 months.

Daren Blomquist of RealtyTrac said, “Nationwide foreclosure activity in June reached an important milestone, dropping to levels not seen since before the housing price bubble burst in August 2006. Over the next six to nine months, nationwide, foreclosure numbers should start to flat line at consistently historically normal levels.”

While this is positive news it’s important to note that there is still an abundant amount of distressed inventory in the market.

For information on effective ways to manage institutional and individual portfolios nationwide, or to shop for real estate visit First Preston HT. Like us on Facebook. Follow us on Twitter.

22August

Wait Times Shorten for Past Foreclosure Borrowers Seeking FHA Loans

  • Comments Off on Wait Times Shorten for Past Foreclosure Borrowers Seeking FHA Loans

The financial crisis that began in 2008 affected most Americans in some big fashion or another.   Whether it was the loss of a job, home, savings and/or retirement fund, or mounting student debt loans with no job prospects for new graduates, Americans are slowly regaining the financial foothold they lost.

The economy has shown traction in job creation.  Unemployment claims have dropped to near 6 year lows and the housing market appears to be thriving; U.S. existing home sales, released this week, jumped to their highest level in over 3 years to 6.5% in July.  The slight bump in mortgage rates does not seem to be deterring homebuyers just yet as rates are still historically very low.

But some have not been able to take advantage of this opportunity of low rates.  Several CLose Up One Hundred Dollar BillAmericans are still dealing with the effects from the massive foreclosures that ensued.  As they work to rebuild their credit and finances, and once again attempt to lay claim to the American Dream of home ownership, a new change in the FHA loan rules should help make this easier to accomplish.

The Federal Housing Administration (FHA) has amended the waiting period for borrowers who foreclosed on their home and are seeking to qualify for an FHA loan.  Originally, the wait time to qualify was 3 years after a foreclosure and 2 years after the conclusion of a bankruptcy.  Now, borrowers who sought bankruptcy, foreclosure, short sale, or deed-in-lieu can hope to qualify for an FHA loan in as little as 12 months if they meet certain requirements.

Borrowers will have to show proof that household income fell at least 20% for the last 6 months and that this drop was attributed to unemployment or some other event out of the borrower’s control.  Also required, proof of 12 months of house payments made on time, documentation showing at least 1 hour of approved home counseling completed and evidence the borrower has fully recovered from the event.  This new change for FHA loans are applicable to case numbers assigned on or after August 15, 2013 and will be effective till September 30, 2016.

Upon announcement of these changes, Commissioner of the FHA, Carol Galante, stated that the “FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

This may be the break that some borrowers were hoping to catch.  It will be interesting to see how much this contributes to new and existing home sales over the coming months, if at all.

For information on effective ways to manage institutional and individual portfolios nationwide, or to shop for real estate visit First Preston HT.  Like us on Facebook. Follow us on Twitter.

Source:http://www.dsnews.com/articles/fha-trims-waiting-period-for-borrows-who-experienced-foreclosure-2013-08-19

12October

Top 10 and Bottom 10 Performing Markets

  • Comments Off on Top 10 and Bottom 10 Performing Markets

In a September “home value forecast” Pro Teck Valuation Services predicted that the much anticipated foreclosure flood will not happen. The report supports the notion that the real estate crisis is not national but concentrated in specific local markets.

Top-Markets-Forclosures

Top-Markets-Forclosures

The explanation was detailed in the report and summarized by CEO, Tom O’Grady who stated,

“With regard to the U.S. foreclosure inventory, there has been a misperception that it is a problem for the entire market. In fact, it is quite concentrated in specific cities and neighborhoods. For this reason, potential buyers who have been waiting for bargain prices in desirable neighborhoods may be disappointed.”  

Top and bottom performing markets  –Core  Based Statistical Area( CBSA– metro and micro areas)  rankings considered factors including prices, inventory levels, changes in sales trends and REO sales.  The common denominator for best markets is a declining number of available listings.

Top 10 CBSAs

Top-Markets-Real-Estate

Top-Markets-Foreclosures

  1. Oxnard-Thousand Oaks-Ventura, CA
  2. Seattle-Bellevue-Everett, WA
  3. San Diego-Carlsbad-San Marcos, CA
  4. Los Angeles-Long Beach-Glendale, California
  5. Santa Ana-Anaheim-Irvine, California
  6. Houston-Sugar Land-Baytown, Texas
  7. Baltimore-Towson, Maryland
  8. Fort Worth-Arlington, Texas
  9. Austin-Round Rock-San Marcos, Texas
  10. San Antonio-New Braunfels, Texas

Bottom 10 CBAs  

  1. New Haven-Milford, Connecticut
  2. Bridgeport, Stamford, Norwalk, Connecticut
  3. Augusta-Richmond County, Georgia-South Carolina
  4. Rochester, New York
  5. Spokane, Washington
  6. Portland-Vancouver-Hillsborough, Oregon-Washington
  7. New York-White Plains-Wayne, New York-New Jersey
  8. Edison, New Jersey
  9. Nassau-Suffolk, New York
  10. Newark-Union, New Jersey-Pennsylvania

Source: DSNews.com. Pro Teck Ranks Top Markets, Says Foreclosure Flood Won’t Happen. Esther Cho. 9/28/2012.

  • For information about real estate portfolio management for institutional portfolios visit www.FirstPrestonHT.com
  • To search for properties or learn  about marketing and online offer management for broker/agent  portfolios visit www.BidSelect.com

Join us on Facebook and follow us on Twitter for current events happening in today’s ever changing real estate market.

[gravityform id=”1″ name=”Contact Us”]


3April

Top 10 Highest Foreclosure Rate States

  • Comments Off on Top 10 Highest Foreclosure Rate States

top ten foreclosure statesDSNews.com recently published the “Top 10 Highest” foreclosure rate states. The lists were published in the DSJournal section of their February edition.  The rankings were based on foreclosure filings as a percentage of housing units by state in 2011. The data source is RealtyTrac.  The states with the 10 highest foreclosure rates were:

States & Percentage of Housing Units

  1. Nevada  6.4
  2. Arizona 4.41
  3. California 3.19
  4. Georgia 2.71
  5. Utah 2.32
  6. Michigan 2.32
  7. Florida 2.06
  8. Illinois 1.95
  9. Colorado 1.78
  10. Idaho 1.77

For more information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

6March

Top 10 Foreclosure Rate States

Top 10 Foreclosure Rate StatesChris Persaud of Bankrate.com recently published data from a RealtyTrac study identifying the top 10 foreclosure states for December, 2011. The rankings were based upon the number of foreclosure filings recorded per housing unit by state.

According to RealtyTrac, on a national basis there were “9 percent” fewer foreclosure filings between November and December of 2011. It should also be noted there are regions in each of the states which are performing much better than the state-wide averages indicate.

Check out the list below. Compare these foreclosure rates to the national average, which according to RealtyTrac, is 1 in every 634” housing units. Review the article for more information on foreclosure sales prices compared to the national average for residential sales prices.

Top 10 Foreclosure Rate States:

  1. Nevada: 1 in every 177
  2. California: 1 in every 254
  3. Michigan: 1 in every 346
  4. Arizona: 1 in every 357
  5. Florida: 1 in 360
  6. Georgia: 1 in 381
  7. Illinois: 1 in 419
  8. Delaware: 1 in 548
  9. Utah: 1 in 548
  10. Ohio: 1 in 583

For additional information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

19January

Is Government Bulk Sale Pilot Near?

Bulk ForeclosureDiana Olick of CNBC reported that a group of Government officials led by FHFA (Federal Housing Finance Agency) “is very close to announcing a pilot program to sell government-owned foreclosures in bulk to investors as rentals.” FHFA is overseer of Fannie Mae and Freddie Mac.

Olick’s Realty Check article, entitled “Government Set to Sell Foreclosures in Bulk,”  indicates that officials are now working to resolve details such as market potential, pricing and property management concerns. Per Laurie Goodman of Amherst Securities, investors are raising cash “to buy properties on a large scale. But that means they have to build out a rental organization; it means they build out a management company, because if you’re accumulating a hundred homes in Dallas that’s very different than running a multifamily building.”

According to Jaret Seiberg of Guggenheim Securities, several pilots are expected. Seiberg projects that “Less fear about a flood of foreclosed homes hitting the market—could stabilize [home] prices.”

The Federal Reserve released its White Paper on Housing  on January 4. The comprehensive report concluded that “A government-facilitated REO-to-rental program has the potential to help the housing market and improve loss recoveries on REO portfolios.”

The idea is not new. Administration officials issued a request for information in August and received 4,000 responses touting various versions of how to resolve the housing crisis and meet the demands of a catapulting rental market.

For additional information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

25November

5 Steps Back to Homeownership

steps back to homeownershipIt is estimated that 3.8 million properties were foreclosed on in 2010.  Through June 30 of this year, foreclosure has impacted 1.2 million U.S. homeowners – “one in every 111 households” – according to a RealtyTrac report entitled, “Foreclosures Plunge in First Half Of 2011.”

Millions of families have been displaced by foreclosure but are guardedly considering the purchase of a home again. Straight answers are hard to come by on the topic. A recent article by Real Estate Attorney Scott J. Clifford sheds light on the subject. This is a recap of his article, “Buying a Home Again After Foreclosure,” posted on HousingPredictor.com on Thursday, November 3.

Five Steps Back To Homeownership:

1. Do Your Best, It Matters – During and following the default process be mindful of how actions impact credit ratings and overall financial health. The manner in which other credit obligations are managed during tough times will matter.

2. Reality Check – Have reasonable expectations about what is possible after a foreclosure.

  • Lowest interest rates may be out of reach.
  • Sizeable down payments may be required.
  • Mortgages backed by governmental entities may require maximum waiting periods for eligibility.

3. How Long Is The Wait? – A foreclosure typically remains on a credit report for seven years, however in some cases a home can be purchased in less than seven years. Usually the range is three to five years. If the foreclosure was precipitated by extenuating circumstances such as job transfer or the death of an immediate family member, the waiting period may be shortened to as few as two years.

4. Make the Most of the Wait – Use the time to build savings, pay down debt, create a record of “on time” rental payments and honor all obligations.

5. Cash Works – Consider saving up for a sizable down payment (20-25%) or paying cash for a home. Prices are so affordable that this may be more feasible now than at any time in recent history.

With strength of purpose and the right action plan, dreams of homeownership can come true…again.

For additional information, please join us at FirstPrestonHT.com or on our Facebook and Twitter pages.

25December

It made a difference to that one!

  • Comments Off on It made a difference to that one!

“Once a man was walking along a beach. The sun was shining and it was a beautiful day. Off in the distance he could see a person going back and forth between the surf’s edge and the beach. Back and forth this person went. As the man approached he could see that there were hundreds of starfish stranded on the sand as the result of the natural action of the tide.

The man was struck by the the apparent futility of the task. There were far too many starfish. Many of them were sure to perish. As he approached, the person continued the task of picking up starfish one by one and throwing them into the surf.

As he came up to the person he said, “You must be crazy. There are thousands of miles of beach covered with starfish. You can’t possibly make a difference.” The person looked at the man. He then stooped down and picked up one more starfish and threw it back into the ocean. He turned back to the man and said, “It sure made a difference to that one!”

I think about this story every day as we walk back and forth along the massive real estate beach looking at all the distressed properties.  There are so many – how can we possibly make a difference with so many people in danger of losing their home to foreclosure or wondering how they can continue to make payments on a property that has thousands of dollars in negative equity? 

I know that we have all talked about volume and waiting for the onslaught of short sales that we know are out there waiting.  But we need to remember that the only way to really help all the distressed homeowners and would-be homeowners out there is one at a time. 

At this holiday season, I am thankful that the HomeTelos LEO program has achieved such resounding success!  We are making a difference – one homeowner at a time.

26October

HomeTelos LEO Program Achieves Market Success as Foreclosure Alternative

  • Comments Off on HomeTelos LEO Program Achieves Market Success as Foreclosure Alternative

US-TX, Dallas, October 21, 2009 – HomeTelos Loan Exit Option (LEO) program has demonstrated market success as an effective approach in avoiding foreclosure for borrowers, investors, and mortgage servicers.  The LEO pre-foreclosure home sale program is faster and has significantly higher closing success rates than traditional short-selling programs. The HomeTelos LEO system aligns the interests of borrowers, servicers and other interested parties through its unique workflow management system, which qualifies properties for pre-foreclosure sale.  When qualified, LEO then facilitates property sales through its dynamic online marketplace that brings motivated sellers & buyers together.   Mortgage servicers can better help borrowers avoid foreclosure through HomeTelos’ integrated and streamlined LEO system and processes.  Costly, frustrating, and ultimately unsuccessful sales efforts are avoided without heavy staff demands being imposed on servicing operations.    

Since LEO’s launch last year, LEO properties upon listing have averaged 37 days on market, 4 offers per property and sales prices that average 96 percent of list price.  A key to this success is real-time communication between real estate brokers, servicers and investors, allowing LEO to average only 3 days from  buyer’s offer submission to servicer’s acceptance or rejection.  According to a Florida borrower, “we were getting nowhere, losing our job then our home.  We appreciated the quick action in getting our short sale resolved in this market”.  LEO provides loan servicers with assurance that the property is widely marketed, offers represent real market value and that closing issues are resolved in advance.  Borrowers avoid foreclosure proceedings, critically damaged credit ratings and the threat of lender recourse for loan payment shortfalls. 

According to HomeTelos President Stephen Polley, “LEO’s success is driven by its breakthrough combination of innovative technology and re-engineered workflow processes for achieving the combined critical objectives of servicers, borrowers and other interested parties.  LEO provides a way for families under financial stress to have a mortgage option that allows them to relocate with dignity.”  

The Loan Exit Option (LEO) system process is patent pending.  

About HomeTelos, L.P.:  HomeTelos is headquartered in Dallas, Texas and specializes in the development and support of web-based solutions which support the management and marketing of real estate assets, including pre-foreclosures and foreclosures.  For more information, visit www.hometelos.com or call (888) 676-9200.

5October

HomeTelos LEO: On the Cutting Edge of Something Great!

Comment from a Platinum performing agent in Los Angeles, CA:  “Nothing is forever in this business and your ability to adapt to the changing marketplace will ensure your survival.  I think the move to focus on LEO is a brilliant move.  I think your company is on the cutting edge of something great.  I don’t see REOs flooding the market.  I see a measured pace for REOs especially as the number of workouts and short sales continue to increase.  I think the LEO program will be a great success in California.  I recognize that it’s a privilege to work with your company.