Realty World - Viking Realty » foreclosures

Investors Buying more Real Estate

Tom Lee — Sat, 19 May 2012 17:30:00 +0000

Investment-home sales surged an extraordinary 64.5 percent to 1.23 million last year from 749,000 in 2010.
Investment sales jumped to 27 percent in 2011 from 17 percent in 2010.
“During the past year investors have been swooping into the market to take advantage of bargain home prices,” said NAR Chief Economist Lawrence Yun. “Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property.”
The median investment-home price was $100,000 in 2011, up 6.4 percent from $94,000 in 2010.

Fraud in the foreclosure prevention programs.

Barry Ripp — Sat, 12 May 2012 15:07:00 +0000

Fraudulent foreclosure prevention providers are coming out of the woodwork to take advantage of today’s loss mitigation culture, according to the Homeownership Preservation Foundation (HPF).
The nonprofit group, which helps distressed homeowners through the group’s HOPE hotline, says the number of mortgage foreclosure scams grew nearly 60 percent in 2012. The scammers, they say, are able to capitalize on the hype surrounding homeownership preservation as federal programs are being modified to help more and more borrowers.
HPF said it’s unknown whether all of the reported instances were truly fraudulent, but the agency still forwarded all of the complaints to the appropriate regulators and law enforcement agencies.
About half of the scams involve an attorney or individual claiming they can offer special legal services to distressed borrowers. HPF says, in fact, the services they offered are already provided by nonprofits for free.
HPF put out a warning nationwide, saying no one searching for a home-saving remedy should pay upfront fees to a firm offering assistance.
Related articles

Homes in foreclosure decline by 130,000 (money.cnn.com)
How To Protect Yourself From Real Estate Fraud And Foreclosure Rescue Scams (cascadesatstluciewestblog.wordpress.com)

More “Stratigic Defaults” Expected in 2012

Barry Ripp — Sun, 22 Apr 2012 21:37:00 +0000

FICO survey of bank risk professionals found that 46 percent of them expect the volume of strategic defaults in 2012 to surpass 2011 levels, as more than 25 percent of U.S. homeowners owe more on their mortgages than their homes are worth.
Concerns about strategic defaults were also reflected in response to a question about the consumer payment hierarchy. When asked if the current generation of homeowners considers their mortgage to be their most important credit obligation, 49 percent of bankers said NO and 29 percent said YES.
Although concerns remain regarding strategic defaults, other signs point to growing stability in the housing market. More respondents (26 percent) expected delinquencies on mortgages to decline in the coming months than at any previous time in the two years FICO has been conducting this survey. Furthermore, 53 percent of respondents said the housing market would improve by the end of 2012, compared with 24 percent who said the market would deteriorate.
More than half of survey respondents expected the supply of credit for residential mortgages to fall short of demand over the next six months. A similar majority (53 percent) expected the supply of credit for mortgage refinancing to fall short of demand, indicating that lenders remain cautious about the risks in the real estate market.
Article was reprinted with permission from the Calif Assoc of Realtors.
Related articles

How Lenders View Your Credit Score for Mortgage Approval (lexingtonlaw.com)
Five Steps to an Easier Home-Buying Process (lexingtonlaw.com)
Would You Stop Making Mortgage Payments for a Principal Reduction? (bayarearealestatetrends.com)

Fixers can be profitable.

Serena Russell — Wed, 07 Mar 2012 16:43:00 +0000

Property Investment
There are several types of properties today. However, most homeowners are undecided in terms of purchasing a new property or a fixer-upper property. Other than finding an agent and a lender, you need to decide on the type of property you want to get. Some find it better to purchase a new property. However, there are also those who find it more convenient to purchase a fixer-upper home.
The decision relies on you and your circumstances. Consider several factors before you decide.
YOUR REASON TO BUY: People don’t just buy houses to live in them. Many people also look to buy investment properties, or homes from which they wish to eventually profit. One of the most profitable ways to do that is to purchase a fixer-upper–a house that is in need of repair.
Fixer-Upper Strategy
Fixer-upper houses are houses that need a little work to increase in value. Real estate investors that purchase fixer-uppers tend to get houses that are not in condemned status or require a major repair, such as replacing an entire house’s worth of plumbing. Instead, they look for homes that are located in nice areas but need aesthetic upgrades. Or they may purchase fixer-uppers that are nearby expanding neighborhoods, hoping to repair the home by the time the property values rise. This practice is referred to as flipping a house. Fixer-uppers can become more profitable if the homes can be restored within a short amount of time relative to the purchase.
ADVANTAGES: to buying a fixer-upper. First, it is inexpensive. This means that you can save a lot. This is great if you are on a tight budget. Next, you can personalize your property by renovating it yourself. You should be prepared since most of these properties need a lot of work and you might not be able to move in right away unless you make the essential repairs immediately.
COSTS: Decide how much you will spend on repairs and renovations. A home inspection prior to purchase will give you some ideas of how to proceed. Talk the inspectors & bring a contractor to your meeting. A good contractor can help assess how much you need to spend on the property for the needed repairs.
If you are a contractor, then you could do most of the work yourself, and save even more money since you won’t have to hire contractors to work on the fixer-upper. Keep track of your time and expenses to the finish.
For a list of latest foreclosures and how to buy low and sell high, contact me at you’re earliest. I offer homebuyer seminars every Saturday & by appointment. Pick up free materials and information to assist with your decision-making.
I specialize in first time buyers, investor properties, property management, & second home purchases. Contact me for your FREE consultation today. Experience guaranteed results & satisfaction.
Serena is a Realtor & property manager in the bay area. Meet with Serena for your free consultation, and to begin your search for that perfect rental property. Call or text (510) 303-2549.

Obama Housing Plan

Zaida Patel — Fri, 12 Mar 2010 05:21:00 +0000

The New York Times

Program will pay homeowners to sell at a loss
In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: Paying some of them to leave.
To read the full story, please click here.