Home prices are down but sales are up, somewhat contradictory trends.
Home prices fell nearly 6% during the six months ended Dec. 31, sending values to their lowest levels in the post-bubble period, S&P/Case-Shiller reported on Tuesday. On Wednesday, the National Association of Realtors reported that sales of existing homes rose for the third straight month. "At least it's not a double whammy where both sales and prices are dropping," said Stuart Hoffman, chief economist for PNC Financial Services Group. "Deals are getting done."
That's because 26% of all homes sold last year were foreclosures and short sales, according to a RealtyTrac report released on Thursday. That's down slightly from 2009, but a jump compared to 2008.
See more: ForeclosuresMakeUp26%ofHomeSales
2.19.2011
Is Buying an REO from the Bank the Best Deal?
There`s a common misconception among consumers who want to buy real estate from a bank. Does this provide them with the best deal? Maybe yes, but maybe no. Let`s take a look at the reality of the situation.
The common logic is that since the owner`s equity has been washed out by the bank`s takeover of the property, the bank owned property must be a good deal. Real estate professionals immediately recognize this is not necessarily true. There are many times when the property is still worth less than the amount of money that`s owed to the bank " making the bank`s price the wrong price.
Is Buying an REO from the Bank the Best Deal??
The common logic is that since the owner`s equity has been washed out by the bank`s takeover of the property, the bank owned property must be a good deal. Real estate professionals immediately recognize this is not necessarily true. There are many times when the property is still worth less than the amount of money that`s owed to the bank " making the bank`s price the wrong price.
Is Buying an REO from the Bank the Best Deal??
2.18.2011
Who is MERS and Why Are They Suing Me?
The Mystery Company that Forecloses on Homes
A homeowner takes out a mortgage with Wells Fargo. Two years later, she gets behind in payments due to unforeseen circumstances. That’s when a foreclosure suit lands on her doorstep, but instead of Wells Fargo, someone named “MERS” is trying to take her home. Just who in the heck is this “MERS,” and who asked it to get involved?
More and more homeowners are asking this question and, in the process, successfully challenging these foreclosure suits.
What is MERS?
MERS stands for “Mortgage Electronic Registration Systems.” Created a decade ago, it is owned by several of the largest mortgage companies in America, including Fannie Mae, Freddie Mac, Wells Fargo, Citimortgage, Chase, HSBC and Countrywide.
Full Story: Who is MERS and Why Are They Suing Me??
A homeowner takes out a mortgage with Wells Fargo. Two years later, she gets behind in payments due to unforeseen circumstances. That’s when a foreclosure suit lands on her doorstep, but instead of Wells Fargo, someone named “MERS” is trying to take her home. Just who in the heck is this “MERS,” and who asked it to get involved?
More and more homeowners are asking this question and, in the process, successfully challenging these foreclosure suits.
What is MERS?
MERS stands for “Mortgage Electronic Registration Systems.” Created a decade ago, it is owned by several of the largest mortgage companies in America, including Fannie Mae, Freddie Mac, Wells Fargo, Citimortgage, Chase, HSBC and Countrywide.
Full Story: Who is MERS and Why Are They Suing Me??
Borders is planning a fire sale!
NEW YORK (CNNMoney) -- Borders is planning liquidation sales in the 200 stores it is shutting down as part of its Chapter 11 bankruptcy filing.
"There will be opportunities for liquidation-type sales," said Borders spokesman Donald Cutler on Thursday. "Specifications about them will be revealed in the coming days and weeks."
376Email Print Borders, the second-largest book retailer behind Barnes & Noble (BKS, Fortune 500), announced on Wednesday that it had filed for bankruptcy and was closing down nearly one-third of its 659 stores. The closures are expected to be completed in April.
"There will be opportunities for liquidation-type sales," said Borders spokesman Donald Cutler on Thursday. "Specifications about them will be revealed in the coming days and weeks."
376Email Print Borders, the second-largest book retailer behind Barnes & Noble (BKS, Fortune 500), announced on Wednesday that it had filed for bankruptcy and was closing down nearly one-third of its 659 stores. The closures are expected to be completed in April.
Read on: Borders Planning a Fire Sale!
2.16.2011
Don't sweat rising mortgage rates
Will rising interest rates slam the door on a fragile housing recovery?
No -- though that only underscores just how grim the housing picture is.
The rate on the 30-year conforming mortgage has risen to a recent 5.1% from 4.2% last October (see chart, right), tagging along behind an even larger rise in the yield on the 10-year Treasury note over that period.
Good news, bad news
The jump in the mortgage rate has added around $50 to the monthly tab on a 30-year, fixed-rate mortgage on a median-price house ($170,000 or so) purchased with 20% down, estimates Paul Dales of Capital Economics in Toronto.
For Full story: Don't Sweat Rising Mortgage Rates/
No -- though that only underscores just how grim the housing picture is.
The rate on the 30-year conforming mortgage has risen to a recent 5.1% from 4.2% last October (see chart, right), tagging along behind an even larger rise in the yield on the 10-year Treasury note over that period.
Good news, bad news
The jump in the mortgage rate has added around $50 to the monthly tab on a 30-year, fixed-rate mortgage on a median-price house ($170,000 or so) purchased with 20% down, estimates Paul Dales of Capital Economics in Toronto.
For Full story: Don't Sweat Rising Mortgage Rates/
2.15.2011
After foreclosure: How long until you can buy again?
NEW YORK (CNNMoney.com) -- Walking away from a mortgage you can still afford to pay has consequences; everyone knows that. Your credit score is shot and it can be impossible to get credit.
Some homeowners, no doubt, believe that the credit score hit is worth getting out from a deeply underwater mortgage. They may owe, say, $500,000 when their house value is only valued at $350,000. And, they figure, there's no way it will ever be worth what they owe so it's better to get out from underneath the burden.
To read full story click below: http://http//money.cnn.com/2010/05/28/real_estate/homebuying_after_foreclosure/index.htm?iid=EL
Some homeowners, no doubt, believe that the credit score hit is worth getting out from a deeply underwater mortgage. They may owe, say, $500,000 when their house value is only valued at $350,000. And, they figure, there's no way it will ever be worth what they owe so it's better to get out from underneath the burden.
To read full story click below: http://http//money.cnn.com/2010/05/28/real_estate/homebuying_after_foreclosure/index.htm?iid=EL
2.14.2011
Is Obama's Strong Housing Finance Stand for Real or a Political Play?
On Friday, the Obama administration released a surprisingly strong housing finance policy report. It explains a general process to wind down Fannie Mae and Freddie Mac, and offers three alternatives for how to conduct housing finance policy without them. Each option has pros and cons, but put together they lean firmly towards free-market ideals, which arguably makes the report one of the clearest signals of President Obama's move to the center yet.
Or does it? While these three options could genuinely attest to the administration's dedication to free market principles, they could also be strategically designed to achieve some political end. There are at least three possibilities here.
Click Here to Read: Is Obama's Strong Housing Finance Stand for Real or a Political Play?...
Or does it? While these three options could genuinely attest to the administration's dedication to free market principles, they could also be strategically designed to achieve some political end. There are at least three possibilities here.
Click Here to Read: Is Obama's Strong Housing Finance Stand for Real or a Political Play?...
'Short sales' avoid foreclosures
After living in their home 17 years, a Lancaster County couple faced the unthinkable:
The prospect of losing that house because they fell behind on their mortgage payments. The financial nightmare started when the wife lost her job in the medical field.
But instead of awaiting foreclosure, the couple decided to list their Warwick Township residence for "short sale" — a transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
It's called a short sale because the property sells "short" of what's owed on the mortgage. And real estate professionals say short sales can be less damaging to a borrower's credit rating than foreclosure
Read more: 'Short sales' avoid foreclosures
The prospect of losing that house because they fell behind on their mortgage payments. The financial nightmare started when the wife lost her job in the medical field.
But instead of awaiting foreclosure, the couple decided to list their Warwick Township residence for "short sale" — a transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
It's called a short sale because the property sells "short" of what's owed on the mortgage. And real estate professionals say short sales can be less damaging to a borrower's credit rating than foreclosure
Read more: 'Short sales' avoid foreclosures
2.10.2011
Trustee: $59M reaped in alleged Utah fraud
St. George businessman Jeremy Johnson took in about $59 million from his companies that federal authorities allege he used to carry out a massive Internet fraud, a court-appointed receiver says.
Johnson spent the money on an $8 million house reportedly covering 22,000 square feet, about 30 other properties, at least seven aircraft, two houseboats and various cars, according to a report filed Tuesday in federal court in Las Vegas.
Over 10 years, Johnson, his iWorks company and about 60 related entities “tricked” consumers into providing credit and debit card billing information and then billed them about $60 a month in charges to which they never agreed, the Federal Trade Commission alleges in a lawsuit filed in December.
Click here to read: Trustee: $59M reaped in alleged Utah fraud...
Johnson spent the money on an $8 million house reportedly covering 22,000 square feet, about 30 other properties, at least seven aircraft, two houseboats and various cars, according to a report filed Tuesday in federal court in Las Vegas.
Over 10 years, Johnson, his iWorks company and about 60 related entities “tricked” consumers into providing credit and debit card billing information and then billed them about $60 a month in charges to which they never agreed, the Federal Trade Commission alleges in a lawsuit filed in December.
Click here to read: Trustee: $59M reaped in alleged Utah fraud...
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