When Buying Home, Be Cautious Of Divorced Couples Selling

CNN reports buying a home from a couple getting divorced usually means a good price on their home, but recommends being careful when attempting to buy from them.

According to the article, several divorced couples always hit a snag when selling their home typically due to unwillingness of one of the spouses to sell.

Click Here:  When Buying Home, Be Cautious Of Divorced Couples Selling...

REO Properties – Tips and Suggestions

Lots of people are talking about REO properties; but do you know what they are referring to? When a bank forecloses on a property, they don’t want it. They put these foreclosed properties in a public auction; the ones that don’t sell are referred to as REO properties. REO properties can consist of anything from apartment buildings to vacant land.

Banks don’t deal in the real estate business; they only want to get cash. Because they only want to sell the property as quickly as possible, you can usually find REO properties listed on their website, along with the name of the loss mitigator who’s managing the sale of that property. The loss mitigator is similar to a real estate agent; you will need to contact him or her to set up a viewing, and make an offer if you’re interested.

Click Here to Read: REO Properties – Tips and Suggestions...

Looking For A Good Deal On A House: Bank REO’s Can Be Quite The Steal

One reason is that bank-owned sales transactions can be more complicated, in part because the sale terms must be approved by the lender or the lender’s attorneys. Another reason it is difficult dealing with bank-owned properties is that some lenders are in offices far away from where the loss-mitigation department is struggling to process the listings.

Click Here to Read:  Looking For A Good Deal On A House: Bank REO’s Can Be Quite The Steal...

Housing Recovery Stalls

A new bout of declining home prices is threatening to hamper the U.S. recovery, just as consumers and the overall economy have been showing signs of healing.

Home prices across 20 major metropolitan areas fell 1.3% in October from September, the third straight month-over-month drop, according to the S&P/Case-Shiller home-price index released Tuesday. Many economists expect the declines to continue into at least next spring, erasing most of the gains made since prices bottomed out in early 2009. 

Click Here to Read:  Housing Recovery Stalls...

Merry Christmas!

Read About Christmas Here:  Christmas...

In a Sign of Foreclosure Flaws, Suits Claim Break-Ins by Banks

When Mimi Ash arrived at her mountain chalet here for a weekend ski trip, she discovered that someone had broken into the home and changed the locks.

When she finally got into the house, it was empty. All of her possessions were gone: furniture, her son’s ski medals, winter clothes and family photos. Also missing was a wooden box, its top inscribed with the words “Together Forever,” that contained the ashes of her late husband, Robert. 

Click Here to Read:  In a Sign of Foreclosure Flaws, Suits Claim Break-Ins by Banks...

Foreclosures.com Founder Faces Auction of Fair Oaks House

Alexis McGee, founder of Foreclosures.com, made a national reputation by helping investors find and buy distressed properties whose owners were struggling to stave off foreclosure.

Now those investors might have an unlikely prize in a large new Craftsman-style home in Fair Oaks that's scheduled for sale on the courthouse steps early next month.

Read more: Foreclosures.com Founder Faces Auction of Fair Oaks House...

Short Sales Becoming More Attractive To Servicers As Foreclosure Expenses Rise

Offering a 10 percent recovery advantage compared to foreclosures, short-sales are becoming a popular solution for servicers faced with projected steeper loss severities on mortgage-backed securities  in 2011. Short-sales are especially attractive as the unprecedented lag between the last payment and a foreclosure is expected to grow. See the following article from HousingWire for more on this.

Click Here to Read:  Short Sales Becoming More Attractive To Servicers As Foreclosure Expenses Rise...

2011 FHA Home Loan Requirements for Borrowers

If you are a home buyer thinking of using an FHA loan to buy a home, you should be aware of certain changes to the FHA program. This page offers a summary of FHA home loan requirements for 2011.

Click Here to Read:  2011 FHA Home Loan Requirements for Borrowers...

12 Days Of Short Sales

Imagine the 12 days of Christmas as it would apply to short sales in a perfect world . . . while no meant to be sung, we’re sure you get the picture.

On the first day of Christmas, my true love gave to me………a negotiator that can get approval letters in 12 weeks, with no deficiencies and no seasoning requirements.

On the second day of Christmas, my true love gave to me………..a wonderful document management system that not only stores all the documents, but also does automatic email updates, and is accessible 24/7.

Click Here to Finish Reading:  12 Days Of Short Sales...

Custom iPad App Controls Curtains, Heating, Lighting

In the last decade Silicon Valley wealth has gushed into the interior design business, and much of it lately has gone into San Francisco penthouses and apartments. "The venture capitalists live in Woodside, Calif., deep in the suburbs. The kids they've been backing want to be in San Francisco," says David T. Oldroyd, a partner at Orlando Diaz-Azcuy Design Associates.

Click Here to Read:  Custom iPad App Controls Curtains, Heating, Lighting...

Banker Wants To Save Foreclosed Homes

A former Wall Street investment banker has come to the Phoenix area seeking opportunity among the thousands of foreclosed homes.

Laurie Hawkes, co-founder and president of American Residential Properties, spent three decades working in real-estate banking and finance for big firms such as CB First Boston Corp. and Salomon Brothers before starting her own company.

Hawkes was one of three expert panelists at a seminar earlier this month in Phoenix to discuss the Valley's real-estate market.


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Foreclosure Mess Didn’t Significantly Impact Home Sales

When revelations that banks filed flawed foreclosure paperwork in thousands of cases emerged over the fall, it was widely assumed that the problems would be a disaster for the U.S. housing market.

Now, evidence is emerging that the threat–at least for home sales–may be less significant than it appeared.

Tom Lawler, an independent housing economist in Northern Virginia, scours reports on home sales from metro areas around the country before making a forecast of how home sales will look each month.  He is predicting that next report from the National Association of Realtors (due Dec. 22) will show that November’s sales of previously occupied homes will actually be up 3.2% from October–a seasonally adjusted annual rate of 4.57 million.

Click Here to Read:   Foreclosure Mess Didn’t Significantly Impact Home Sales...

What Delays a Mortgage Foreclosure

Six hundred days. That's how long, on average, mortgage loans in the foreclosure process in New York have been delinquent.

That's the longest average in the nation, but not by much, according to LPS Applied Analytics, in Jacksonville, Fla. Loans in foreclosure in Florida, New Jersey, Hawaii and Maine have been delinquent more than 500 days, on average, while home loans in California and Nevada have been delinquent 461 and 427 days, respectively. In the two speediest states, Nebraska and Wyoming, loans in the foreclosure process are delinquent by an average of 358 days.

Those statistics raise a question: Why do foreclosures take so long?

Read more: What Delays a Mortgage Foreclosure...

Woman's Foreclosure Nightmare: 'Like A Black Hole'

State prosecutors from all 50 states are investigating the country's largest banks, to learn whether they have been foreclosing on thousands of Americans improperly.

The banks say they do not seize people's houses without justification. But NPR has uncovered a case that might suggest otherwise. In fact, the homeowner in this case was actually the victim of a scam run by one of the bank's very own employees. But despite that, the bank moved to foreclose anyway.

Six Years Of Stress
The banks say they've been doing all they can to work with homeowners to avoid foreclosures. But don't tell that to Rachel Keyser from Deerfield, N.H.

"I can't tell you the emptiness," she says about dealing with the threat of foreclosure. "I mean, my knees started to shake, my stomach got into a knot."

Click Here to Read: Woman's Foreclosure Nightmare: 'Like A Black Hole'...

How Rising Mortgage Rates Could Boost Home Sales

If you're in the market for a home, you're probably feeling pretty calm: Prices are falling, interest rates are low, and there are few other buyers to compete with. You can probably just hang out for awhile and wait for prices to fall some more.

But how long will the buyer's market last? Conventional wisdom holds that prices will fall another 5 to 10 percent, most likely bottoming out sometime in 2011. As the housing market stabilizes, sales will slowly pick up, while the huge backlog of foreclosed and bank-owned homes gets worked off. In healthier markets—like many in the Midwest, where there was never much of a bubble to start with—the housing market might even start to feel normal again in 2011 or 2012.

Click Here to Read:   How Rising Mortgage Rates Could Boost Home Sales...

Foreigners Flock To Florida Real Estate Bargains

Foreign tourists who for years have crowded Florida's shopping malls to buy clothes and electronics, are now flocking to real estate offices to snatch up apartments and homes at bargain-basement prices. 

The investors, mainly from Europe and Latin America, are jostling over apartments in Miami's trendy South Beach neighborhood selling for 70,000-100,000 dollars, and in less exclusive areas to the north where they start at around 50,000.

"The buying opportunities are maybe the best ever. Who knows if we'll see prices again like today's in Miami Beach," Keys Real Estate agent Michelle Iglesias told AFP.

Click Here to Read:  Foreigners Flock To Florida Real Estate Bargains...

LeBron James' New Home In Coconut Grove

Click Here to See All of the Pictures:  LeBron James' New Home In Coconut Grove...

14 Years After Condo Sale, Retiree Gets Foreclosure Notice

Elizabeth Bolinger was stunned when she received a foreclosure notice recently — on an Oakland Park condo she says she hasn't owned in 14 years.

Bolinger, who now lives in a retirement community in Port St. Lucie, said in 1996 she deeded the home at 639 W. Oakland Park Blvd. to a man who had been renting it from her. Eventually, he took out his own mortgage, paid her off and she forgot about it.

Then, in September, she was served with foreclosure paperwork on the unit. "It's interesting that you can be foreclosed on a property that you don't own," she said.

Click Here to Read: 14 Years After Condo Sale, Retiree Gets Foreclosure Notice...

Should I Keep My Home or Let It Go?

The Real Estate market right now is terrible. This is the truth, no matter what part of the country you may reside in- the future does not look pretty for homeowners. All around us there are short sales, foreclosures, vacant homes and distressed properties. I know that when I stumble across a “normal” listing (meaning not a short sale, foreclosure or auctioned home) I always do a double take! Typically, these normal sales occur when a homeowner has lived in the home for many years, never took out a HELOC or re-financed during the boom of 2004-2008. Simply because I am in the Real Estate Industry I oftentimes find friends begging the question: How do I know if it is wise to stay in my home?

Click Here to Read:   Should I Keep My Home or Let It Go?...

What is a Good Credit Score in 2011?

What is considered a good credit score these days? This is one of the most common questions we receive from our readers. And as we replace our 2010 calendars with new ones for 2011, this question will surely see a spike in frequency again.


So, in anticipation of all those emails, I thought I’d share my own definition of a good credit score in 2011:

Click Here to Continue Reading:   What is a Good Credit Score in 2011?...

Real Estate Buyers Flock to Online Auction of Bank-Owned Assets

Savvy commercial real estate buyers looking to take advantage of the down market have come to LFC.com to conduct research and submit bids on various bank-owned assets in a portfolio of ten REO properties. With just over a month remaining before the bid deadline, the auction has already attracted over 4,600 hits to the website and interested buyers from nearly a dozen states.

The minimum bids are set far below current market prices, giving buyers the power to name their own price in a fair and transparent auction process and sending the message that the seller is in fact willing to trade these properties.


Read more: Real Estate Buyers Flock to Online Auction of Bank-Owned Assets...

5 FHA Streamline Facts You Need to Know

The benefits of an FHA Streamline loan are going to be discussed in the following article. Anyone with an FHA loan that wants to reduce their monthly payment is going to want to see these facts.

1. Who qualifies for an FHA streamline loan?

• Home owners that currently have an FHA loan.
• Must have the loan for 6 months or longer.
• No delinquencies on the mortgage in the last 12 months.

Click Here to Read:   5 FHA Streamline Facts You Need to Know...

The Advantage of Buying Short Sale Home

Short sale is usually a common solution left for most home owners because of the extended recession on the real estate market. The term “short sale” means that the owner at this point owes more on mortgage compared to actual worth of his or her property. The bank will not wish to own the property through a pricey procedure like foreclosures and so they will  be looking for those who are usually buying short sale home.

Which means that there is a excellent chance for those who are qualified to acquire the property for less than its value. It also means a chance for the owner to avoid getting a bad credit history because of property foreclosure. At the same time, the financial institution can still retrieve as much of their investment as possible in this way.

Click Here:  The Advantage of Buying Short Sale Home...

Philadelphia Law Firm Used Nonlawyers to File Foreclosures, Suit Alleges

A Philadelphia law firm has been accused of the “unauthorized practice of law” by using nonlawyers to file hundreds of foreclosure cases and collect attorneys’ fees, according to a lawsuit.

In a further indictment of the mortgage industry, it also contends that banks, loan servicers and other creditors knew of the practice.

Patrick Loughren, a Pittsburgh, Pa., trial lawyer with Loughren, Loughren & Loughren, sued the law firm of Goldbeck, McCafferty & McKeever, along with 35 employees of the firm, according to the case, filed in Allegheny County, Pa. Messages seeking comment were left with the Goldbeck firm and Loughren. They could not be immediately reached for comment.

Click Here to Read: Philadelphia Law Firm Used Nonlawyers to File Foreclosures, Suit Alleges...

Bing Crosby Home Selling for $3.5M

Bing Crosby, known for his laid-back style as much as his soothing bass-baritone voice, liked to entertain other celebrities around the pool at his 6,700-square-foot former home in Rancho Mirage, Calif.

Click Here to Read:   Bing Crosby Home Selling for $3.5M...

Getting a Deed in My Name After a Divorce

When you are awarded full ownership to real property in a divorce decree, you must take further steps to change the property deed. A quit claim deed must be filed with the county court in order to remove your former spouse's name from the original deed to the property. A quit claim deed states that one party is transferring all ownership rights to the property to the other party involved.

Read more: Getting a Deed in My Name After a Divorce...

Fed Wants To Strip A Key Protection For Homeowners

As Americans continue to lose their homes in record numbers, the Federal Reserve is considering making it much harder for homeowners to stop foreclosures and escape predatory home loans with onerous terms.

The Fed's proposal to amend a 42-year-old provision of the federal Truth in Lending Act has angered labor, civil rights and consumer advocacy groups along with a slew of foreclosure defense attorneys.

They're not only asking the Fed to withdraw the proposal, they also want any future changes to the law to be handled by the new Consumer Financial Protection Bureau, which begins its work next year.


Read more: Fed Wants To Strip A Key Protection For Homeowners...

The Latest Confusing Foreclosure News

Trying to keep up with what’s happening with foreclosures around the nation is confusing, indeed.


At the end of November, Fannie Mae and Freddie Mac – the government-sponsored enterprises which underwrite the bulk of mortgages in the United States – told real estate agents to resume with sales of foreclosed properties. That was a significant announcement as Fannie and Freddie had about 240,000 properties set for foreclosure at the end of September.

Click Here to Read:  The Latest Confusing Foreclosure News...

Today's Real Estate Market Calls For Dire Divorce Decisions

Sarah Bandy always knows something is up when she helps a couple try to sell their home, but hears back from only one spouse.

"They don’t tell us in the beginning," said Bandy, a real estate agent who brokers deals for luxury homes in Colts Neck. But lately, when she presents clients with a home valuation report, the answer is almost always, "Oh, we can’t do that. It’s too low."

"Then they end up confessing, especially the wife," Bandy said.

Click Here to Continue Reading:   Today's Real Estate Market Calls For Dire Divorce Decisions...

Southwest Florida Real Estate Market Attracts Canadian Investors, Other International Clients

They come from Toronto, London and Dusseldorf, and they're all here for the deals.

Foreign buyers are on the hunt for real estate bargains in Southwest Florida. They scour listings from across the Atlantic and leave Canadian tundra in search of properties dotted with palms.



"They seem to be out shopping," Mary Bondurant, an agent with John R. Wood Realtors on Sanibel, said of international buyers. "They're feeling a little optimistic about the market in general but they know it's a good time to buy in Florida."



And local real estate agents say foreign interest could help revitalize the area. International clients tend to be cash buyers who are financially stable, since many of their countries haven't weathered financial storms to the level the United States has recently.

Click Here to Read:  Southwest Florida Real Estate Market Attracts Canadian Investors, Other International Clients...

The Top 5 Barriers to Buying a Home

Buying a home is worlds away from just a few years ago. In 2000, approval rates were around 90 percent. Today, the home loan approval rating has fallen to a mere 30-40 percent. While decreased access to credit is a byproduct of the recession (largely caused by lax lending and the ensuing defaults) and the subsequent financial reform, it doesn’t change the fact that one of the following situations may prevent you from buying a home:

Click Here to Read:  The Top 5 Barriers to Buying a Home...

Fannie, Freddie Say Mortgage Servicers Triggered Foreclosure Crisis

Fannie Mae and Freddie Mac defended their role in the foreclosure crisis in prepared testimony to Congress on Wednesday, while at least one federal regulator said the mortgage giants had contributed to the problem.

Speaking to the Senate Banking Committee at a hearing on the national foreclosure debacle, Fannie and Freddie executives emphasized that they are not responsible for managing payments by borrowers on home loans or foreclosing on homeowners when they default.

Click Here to Read:  Fannie, Freddie Say Mortgage Servicers Triggered Foreclosure Crisis...

How to Buy a “Short Sale” House

A short sale in real estate terms is when a borrower sells their mortgage for an under appreciated value because the home is worth less than what is owed on the mortgage. In this event, the lender agrees to allow the home to be sold for less than the amount owed on the debt. But like a loan modification, a homeowner must prove that they have gone through a hardship that has gotten them to the point that they are at with the short sale.


Like almost every real estate transaction, a short sale will require the seller to submit all of their financial information to the lender so they may determine if they are eligible for a short sale. Eligibility is a key importance with this topic, as the bank is more than likely enduring a huge loss. If the bank determines the seller not to be eligible, or they cannot demonstrate a financial hardship, this can prevent you from obtaining the property.

Click Here to Read:   How to Buy a “Short Sale” House...

VA Loans Thrive in the Face of Widespread Foreclosure

The VA Loan program has weathered the foreclosure crisis, despite the fact that nine in 10 borrowers purchase a home without a down payment.


In fact, these flexible, low-cost loans remain the safest on the market. The foreclosure inventory rate for VA loans was 2.5 percent in the second quarter of 2010, better than both prime and FHA loans. After nearly seven sometimes turbulent decades, this home loan benefit for American service members is better positioned and more powerful than ever.

Click Here to Read: VA Loans Thrive in the Face of Widespread Foreclosure...

Some Homeowners Still Owe After Short Sale

Some former homeowners who went through short sales to avoid foreclosure are finding they are still in debt to their lenders.

Because the short-sale concept, which allows people to sell their homes for less than they owe, is designed specifically to help homeowners avoid having to pay their lenders more money, some sellers have been careful to negotiate their deals so the lender, by contract, can't later seek payment. Those who haven't done so are at risk.

Click Here to Read: Some Homeowners Still Owe After Short Sale...

Fannie And Freddie Give Green Light To Resume Sales Of Foreclosures

Fannie Mae and Freddie Mac gave real estate agents the green light to resume selling foreclosed homes, after suspending the process as the robo-signing debacle unfolded the past two months.

Freddie told agents in a memo last week to "resume all normal sales activity," as the government-sponsored enterprise will "resume marketing, sales and disposing of assets previously placed 'on hold.'"

Fannie Mae told its real estate agents "to proceed with scheduling and holding the closings" of sales of homes with mortgages owned or backed by the GSE.

Click Here to Read:  Fannie And Freddie Give Green Light To Resume Sales Of Foreclosures...

What Happened to the Government’s Short Sales Program?

In April, the Obama administration formally rolled out a new program, called Home Affordable Foreclosure Alternatives, that was designed to spur more short sales, where banks allow homeowners to sell their homes for less than the mortgage debt outstanding.

Like other foreclosure-prevention initiatives, this one appears to be off to a slow start — just 342 sales have been completed through September.

Click Here to Read: What Happened to the Government’s Short Sales Program?...

Has The Federal Government Gone Subprime?

Uncle Sam sure has a lot of explaining to do.

He's spent years pumping untold billions into the housing market, only to see home prices and sales sink again.

Now he's getting hit by critics on the right and now the left, who contend our wayward uncle, in his desperation to keep the real estate market from collapsing completely, has made the ultimate down market move.

He's gone subprime, according to a growing number of critics on both sides of the political spectrum, replacing the high-cost mortgage dealers of old on the neighborhood stoop.

My guess is that readers of this blog are more familiar with the right's critique of the federal government's takeover of the mortgage market. In order to keep the mortgage market alive, Fannie Mae, Freddie Mac and the FHA let through a lot of questionable borrowers over the past two years, only to reap a whirlwind of bad loans.

Click Here to Read: Has The Federal Government Gone Subprime?...

HUD Offers Regional Housing, Economic Data on New Website

U.S. Department of Housing and Urban Development launched a new website Monday that offers economic and housing data by region, including Colorado and the Rocky Mountain region.
The site — www.huduser.org/portal/regional.html — provides information such as rental-home activity and employment statistics at the regional, state, metropolitan and county levels, HUD says.
“Current and reliable data shouldn’t be hard to come by,” Raphael Bostic, HUD’s assistant secretary for policy development and research, said in a statement. “This is precisely why this site will be so helpful to state and local lenders, developers, the real estate industry and the general public, who need the latest available data on their markets.”


Read more: HUD offers regional housing, economic data on new website | Denver Business Journal...

Fear of Foreclosure Fraud Driving Down REO Sales, Home Prices

After the extreme amount of outright fraud in mortgage origination, you would have thought that nothing could dissuade homebuyers from purchases. But the geniuses in the mortgage industry have managed to finally keep buyers sitting on their wallets, because of the scandalous level of foreclosure fraud.

"The ongoing controversy surrounding foreclosures is taking its toll as homebuyers refused to look at distressed properties in October, and foreclosure sales suffered from delays, according to the latest Campbell/Inside Mortgage Finance Monthly Survey.
Both the share of home purchases involving distressed properties and average prices for foreclosed properties fell last month, the survey found."

14 percent of owner-occupant homebuyers and 6% of real estate investors refused to look at foreclosed properties last month. In short-sale properties the numbers jumped to 30% of buyers and 20% of investors. Given the worsening of the problem, and the very real possibility that originators never conveyed the mortgages into the trusts who now claim to own them, I can’t see this getting better in the near-term.

Click Here to Read: Fear of Foreclosure Fraud Driving Down REO Sales, Home Prices...

Happy Thanksgiving!

Click Here to Read About Thanksgiving!

HOUSE OF THE DAY: Who Gets To Keep Eva Longoria And Tony Parker's Under-Construction Mansion?

 

 

Power couple Eva Longoria and Tony Parker are getting a divorce, and their dream home isn't even finished yet (via Zillow). No one knows who gets to keep it, though the indoor basketball court and location suggest Tony will.
The newlyweds began construction on the $7 million mansion in 2008 in the exclusive Anaqua Springs Ranch neighborhood just outside of San Antonio, Texas. The neighborhood is gated and filled with custom homes that sit on one to four acres of land.


Read more: HOUSE OF THE DAY: Who Gets To Keep Eva Longoria And Tony Parker's Under-Construction Mansion?...

U.S. Homeowners Drop Out of Foreclosure Program Amid Record Defaults

U.S. homeowners are dropping out of the Obama administration’s foreclosure prevention program at a faster rate than they are joining it, according to figures released today by the U.S. Treasury Department.
Borrowers aided by the Home Affordable Modification Program grew to nearly 520,000 in October, up 23,750 from a month earlier, the Treasury said in its monthly report. The increase was less than five percent. A total of 36,300 borrowers have dropped out of the plan for failing to make their payments, an increase of 24 percent from a month earlier.

Click Here to Read:  U.S. Homeowners Drop Out of Foreclosure Program Amid Record Defaults...

5 Ways To Buy A Foreclosed Home

The the continued stream of homes foreclosures in the United States is providing homebuyers and investors with plenty of real estate deals. Most foreclosures are sold at 5% below the market value, with even greater discounts in certain regions. Buyers can also take advantage of additional savings with perks like reduced down payments, lower interest rates or the elimination of appraisal fees and certain closing costs. Foreclosed homes are available in virtually every real estate market across the country, and can be an option for individuals, families and investors looking for a property. Foreclosure sales can take place in a variety of ways; here are five of the ways to buy a foreclosed property. (If you want to save your home, avoid bogus offers and take matters into your own hands. Check out Avoiding Foreclosure Scams.)

Read more:  5 Ways To Buy A Foreclosed Home...

Short Sales Often Turn Into Long Stories

It's a good thing first-time homebuyer Harley Summers wasn't in a hurry to get a house.  
 
He bought his Allen home using a short sale that turned out to be anything but short. It dragged out for almost four months.

"It was a very long and frustrating process," said Summers, who wrapped up the deal last week. "The biggest advice I can give to anybody is don't pursue it unless you are an incredibly patient person."

Click Here to Read: Short Sales Often Turn Into Long Stories...

Bank of America Outlines Radical Foreclosure Reform Measures To Congress

Bank of America on Thursday said it was committed to making significant changes in its foreclosure process and that it had completed 25,000 mortgage modifications for financially distressed homeowners in October. That's more than a 50 percent increase from the previous month.
Only 2,600 modifications were made through the federal government's Home Affordable Modification Program. The rest were made through the bank's own programs.

The figures show the speed and extent to which the bank -- the only one to halt foreclosure sales in all 50 states while it reevaluated its procedures -- is taking voluntary measures to fix its foreclosure problems.
The quick action comes as federal regulators and the 50 state attorneys general investigate the industry's practices and as Capitol Hill has increased scrutiny of foreclosures. The House Financial Services Committee is scheduled to hold the week's second hearing on the subject at 10 a.m. Thursday.

Click Here to Read: Bank of America Outlines Radical Foreclosure Reform Measures To Congress...

Are You Still Wary of Buying from a Foreclosure Properties Sale?

A lot of people have successfully purchased stellar homes at low prices from a foreclosure properties sale. The supply of foreclosure homes continue to grow and buyers are getting good options left and right. With proper preparation and serious research, that dream home is never far off if you consider foreclosures.
All types of homes can be found in a foreclosure properties sale plus their affordable prices are a definite draw. First time buyers and seasoned property investors alike are sure to find the ideal homes in these foreclosure offerings. But these properties are not without their unique set of risks and buyers can easily end up with a sour deal if they do not practice a little caution.

Click Here to Read:  Are You Still Wary of Buying from a Foreclosure Properties Sale?

Mortgage Transfers Are Valid, Group Argues as Foreclosure Hearings Begin

A trade group for companies that help package loans and leases into securities rejected claims that mortgage-bond trusts can’t prove ownership of debt they hold as Congress began hearings on the foreclosure crisis.

The standard practices of the industry result “if followed, in a valid and enforceable transfer of mortgage notes and the underlying mortgages,” Tom Deutsch, executive director of the New York-based American Securitization Forum, said in a study released today. Lawmakers in Washington ordered hearings on mortgage practices after loan servicers including Ally Financial Inc. and JPMorgan Chase & Co. halted foreclosure proceedings following revelations of so-called robo-signing.

Click Here to Read:  Mortgage Transfers Are Valid, Group Argues as Foreclosure Hearings Begin...

Foreclosure and Loan Modification Myths and Legends – Why You Can Keep Your Home and Afford It!

I have been in the real estate and mortgage industries in some way or another for most of my adult life. There is always some phases that the economy is going through that affects how business is done when it concerns buying, selling and mortgaging real estate. Up until 3 years ago the housing industry was just going up and up and up. There were Bankers lending; Builders building; Realtors real estating; and Buyers and Seller buying and selling. When business was good there were always people telling some story about how things were done, and what they were describing that was plain wrong. I’ve always called it Myth and Legend.In bad times it is much worse.

Click Here to Read:  Foreclosure and Loan Modification Myths and Legends – Why You Can Keep Your Home and Afford It!...

Will Son Be Responsible For Girlfriend's Short Sale Debt If They Marry?

Q: My son just moved into a brand-new home. He has a girlfriend who lives with him, and she has a home of her own that is now involved in a short sale.  If they get married, will my son be responsible if the bank or bill collectors go after his wife to pay the remainder of her mortgage?

Click Here to Read:   Will Son Be Responsible For Girlfriend's Short Sale Debt If They Marry?...

Tiger Wood's New $50M Home

Tiger Woods can spend his two-week break between last weekend’s fourth-place finish in the Australian Masters and the 18-player Chevron World Challenge brushing up on his game, driving, chipping and putting to his heart’s content outside his new $50 million singles pad.


In between, he can do laps in one of his pools or relax in the oxygen therapy room that is part of a personal gym.

Click Hereto Read: Tiger Wood's New $50M Home...

Bankers Brace for a Tongue-Lashing

Bank executives are expecting to get an earful from lawmakers Tuesday when they defend themselves in front of the Senate Banking Committee against allegations they mishandled thousands of home foreclosures.

The banks’ likely defense – that the volume of foreclosures was so great that they were simply overwhelmed – isn’t likely to placate politicians looking to score points with struggling homeowners.

While the sputtering economic recovery has left far more people out of work than was expected, greatly hampering any recovery in the real estate market, bankers are nonetheless expected to concede that the foreclosure system is broken, and that they are working on ways to repair it. Part of the problem, the bankers will say, stems from the demands of investors – including Fannie Mae and Freddie Mac.

Click Here to Read:   Bankers Brace for a Tongue-Lashing...

Real Estate: Where Is It Safe To Buy?

Click Here to go to Interactive Map:  Real Estate: Where Is It Safe To Buy?...

Economics Of Buying A Second Home

People with larger disposable incomes are contemplating buying a second house. A second house can be your vacation home or simply a property let-out on rent. The homeowner reaps dual benefits of tax advantage and capital gains due to appreciation in property prices.

Click Here to Read:  Economics Of Buying A Second Home... 

Freddie Mac Says Foreclosure Problems May Drain Recovery

Freddie Mac economists said recent problems in the banks' foreclosure processes could slow what little momentum the recovery holds, and perhaps send the housing market down to a new low.

In the broader economy, October payrolls, manufacturing production and consumer spending picked up in the third quarter. Housing, the October job report and struggles in other major economies are keeping the recovery too gradual.

Click Here to Read:  Freddie Mac Says Foreclosure Problems May Drain Recovery...

Home Prices Decline in Nearly Half of Metropolitan Areas

Home prices fell in nearly half of U.S. metropolitan areas in the third quarter, indicating that the market is losing steam without government tax credits, according to an industry report.

The median price for home resales fell compared with last year in 76 out of 155 areas tracked by the National Association of Realtors, the trade group said Thursday. Prices rose in 77 areas and were unchanged in two.

In the second quarter of the year, prices rose in nearly two-thirds of U.S. cities.

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Homeowner, Facing Foreclosure, Goes On Hunger Strike

A Baltimore homeowner who fell behind on her mortgage payments after her property taxes unexpectedly spiked protested in an attention-grabbing way this week: She went on a hunger strike.
Lauren Rymer started just after 7 a.m. Monday and spent an empty-stomach day camped out in Annapolis, trying to get an audience with Gov. Martin O'Malley and talking to passersby who wanted to share their stories of economic woe.

By the time she ate something at 5 p.m. Tuesday, she'd had a foreclosure alternative offered to her by the state housing department, talked to someone from O'Malley's office about the tax problem and given interviews to a bevvy of media from WBAL to the Huffington Post to MSNBC about her hope that elected officials will do more to help Americans avoid foreclosure.

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Bank REO’s Can Be A Risky But Great Investment

After a repossession from which the property becomes classified as REO, the bank will go through the process of trying to sell the property on its own or obtain the service of an REO Asset Manager. The bank will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a real estate broker. The asset Manager will also try to contact REO realtors that specialize in certain zip codes to help sell this bank owned property. Bank REO properties are generally in poor repair and maintenance.

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Request For Foreclosure Probe 3 Years Ago Thwarted

As foreclosures began to mount across the country three years ago, a group of state bank regulators suspected that some borrowers might be losing their homes unnecessarily. So the state officials asked the biggest national banks for details about their foreclosure operations.
When two banks -- J.P. Morgan Chase and Wells Fargo -- declined to cooperate, the state officials asked the banks' federal regulator for help, according to a letter they sent. But the Office of the Comptroller of the Currency, which oversees national banks, denied the states' request, saying the firms should answer only to inquiries from federal officials.

Click Here to Read: Request For Foreclosure Probe 3 Years Ago Thwarted...

Nicolas Cage's Bel-Air Home Goes To New Owner For Just $10.5 Million

 
The sale of Nicolas Cage's onetime Bel-Air estate, which the actor lost to foreclosure this year, has all the makings of a Hollywood blockbuster. There was hubris, bad taste and a dizzying fall from financial grace.

The closing scene played out this week when a new owner picked up the sprawling mansion for $10.5 million, a relative bargain for a trophy home that had been listed several years ago at more than three times that amount. The buyer was identified only as a limited liability company, a common cloaking device in high-profile real estate transactions.

Click Here to Read:  Nicolas Cage's Bel-Air Home Goes To New Owner For Just $10.5 Million...

Factoring Repairs Into REO Purchase

Q: I recently put in an offer of $125,000 on a foreclosed property that was listed for $140,000. My offer was countered at 140,000; I went back at $130,000 and asked for 6 percent toward closing. My agent stated that the bank's final offer was $135,000 and 3 percent toward closing costs.

I declined the offer because, although the property was livable, it needed repairs. The master bath only had a commode -- no sink or tub was installed. Two bedrooms needed ceilings put in, one other bath needed repairs and the basement had been framed, but no drywall.

There was no refrigerator and the other appliances are questionable. Although I submitted an as-is offer on this property, my loan officer said that I would be eligible for a 203(k) loan. My preapproval letter did not state a price because he said it would depend on the repairs that had to be made. My loan officer said that the property had to be inspected to determine what repairs had to be made.

I also got preapproved by the bank that owned the property. When I went to my agent's office to collect my earnest deposit check, he informed me that the property had been reduced from $140,000 to $134,900. There were no other offers on the table. I did not offer another bid.

Can help me understand this reasoning? Can I trust that my Realtor informed the agent representing the bank of the repairs that had to be done to this property, and possible hidden repairs? Would you advise me to reissue my bid of $120,000 with 3 percent in closing costs?

Click Here to Read Answer:  Factoring Repairs Into REO Purchase...

Shattered Dreams: Foreclosure Squatters

When Chris and Thelma DiMattio bought their new house in swanky Wilton, Connecticut a few months ago, they were thrilled. The longtime Wilton residents didn't have to uproot their family, and they got a really great deal on the home at a foreclosure auction.

They picked up their last house at a similar auction, and were excited to move into their new place. That is, until they actually got there- and realized the previous tenants were still living inside.

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Homeowners Say Loan Mods Led Them To Foreclosure

Grocery store owners William and Esperanza Casco were making enough money to stay current on their mortgage, but when JPMorgan Chase & Co. offered a plan that reduced their payments, they figured they could use the extra cash and signed up.
The Cascos say they never missed a subsequent payment, so they were horrified when the bank decided the smaller payments weren't enough and foreclosed on their modest Long Beach home.
Their story is echoed across the country by people who claim — some in lawsuits — that banks didn't live up to their end of the deal when they agreed to trial mortgage modifications.

Click Here to Read: Homeowners Say Loan Mods Led Them To Foreclosure...

Short Sale Of Home Similar To Foreclosure In Its Effect On FICO Score

Dear Liz: In 2005, I purchased a town home for my children, and they have since vacated the property. The town house is now worth 60% of what I owe, and I am considering a short sale. All my other obligations are current with no late payments in years. My credit scores are over 800 and my only other debt is a car payment. After a short sale, what kind of hit can I expect on my credit score, and about what would be the recovery time for my credit score?

Click Here to Read Answer:  Short Sale Of Home Similar To Foreclosure In Its Effect On FICO Score...

84% of Consumers Favor Another Tax Credit for Home Buyers

Another tax credit for home buyers in 2011 seems unlikely at this point. But despite this, most consumers feel another tax credit would help to stabilize the housing market. Here are the results of a survey we concluded last week:

Chart: Many consumers feel another home-buyer tax credit would help. Image permission
Survey details: This survey was presented to more than 5,500 readers. We ran this survey on the Home Buying Institute website, and several other sites within our financial network. The audience was mixed — some were home buyers and homeowners, while others were researching personal finance and investment topics.

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Most Americans Believe Owning A Home Is A Good Investment

Despite economic uncertainty and recent challenges in the real estate market, nearly eight out of 10 Americans believe buying a home makes good financial sense. This is according to a recent survey, the 2010 National Housing Pulse, released by the National Association of Realtors to measure how affordable housing issues affect consumers.

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Buying A Home As A Tax Shelter Is Risky Now

Q: I sold my home this past May as a short sale and even though it sold for the amount I purchased it for in 2003, I still came away with a $50,000 promissory note to the lender that I'm paying off (without interest) for the next 15 years.
Somebody said I would have needed to rent the house to get the loss; how would that make any difference? When I do my 2010 taxes, is there a way that I can show the loss?
Also, I'm turning 60 years old in April and wondered if it makes sense to use my Roth IRA ($30,000) as a down payment on another small home since I'm renting and have at least seven years before I'd retire from federal service. I'm concerned that I don't have a tax shelter anymore other than my pre-tax retirement contributions each pay period.


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5 Ways to Take Advantage of Low Interest Rates

Interest rates have never been lower. It seems that just about every week mortgage rates set a new low. And this week the Fed is expected to undertake a second round of quantitative easing, QE2 for short, by buying up more government debt. As a result, incredibly low interest rates may go even lower.

But low rates don’t do us any good if we fail to take advantage of them. So we’ve put together a list of five ways that you may be able to enjoy the benefits of low interest rates.

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Home Sales Up, Remodeling Flat

Recent data shows new-home sales actually increased in the month of September while remodeling remained relatively unchanged in the third quarter. These statistics show a different view of the homebuilding marketplace than in months past—one that might offer a good sign for homebuilders.

Last week, the U.S. Census Bureau, www.census.gov, Washington, D.C., and the U.S. Dept. of Housing and Urban Development, www.hud.gov, Washington, D.C., announced the latest numbers for new single-family home sales in the month of September.

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The New Rules Of Pricing Your House For Sale

When the housing figures are released each month, many consumers are faced with a profusion of confusion. Existing home sales are up slightly - no, they're down again. Median prices improved slightly over a year ago - wait, that was last month. New home sales dropped sharply after the federal tax credit expired, but they're up again - for now.

Well, one thing's for sure: It's a whole new game of "The Price is Right." Long gone are the halcyon days of setting your asking price by looking at comparable home sales over the last year - and adding 10 to 20 percent to those prices.

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Buying a Foreclosed Home: 3 Stages and Their Effects on You, the Buyer

If you have ever thought about buying a foreclosed home, you, no doubt, were charmed by the super low prices at which foreclosed homes tend to be available, but buyer beware; low prices come with a catch.

Most importantly, keep in mind that not all foreclosures are the same. There are three phases a foreclosed home passes through as regards a new buyer, each with its own series of benefits and drawbacks.  First, the house is listed as a short sale property. A short sale means that the lender has agreed to accept an amount less than the total mortgage due on the property. This usually occurs during the first 90 days a property is in default. In this phase, you are actually negotiating the sale directly with the owner, albeit with the approval of the owner’s lender. On the plus side, the costs associated with purchasing a home in this phase are much lower than subsequent phases. However, there are downsides. There is a high degree of uncertainty as short sales can fall through if the owner comes up with the money. In addition, the process to purchase a short sale takes much longer than a regular home purchase.

Click Here to Read:  Buying a Foreclosed Home: 3 Stages and Their Effects on You, the Buyer...

Jim Palmer's Palm Beach Home Available for $2.9 Million

Retired Major League Baseball pitcher Jim Palmer has listed and cut the price of his Palm Beach, Fla., home. The home quietly came on the market a year ago for $3.4 million; it's now listed for $2.9 million, a 16% discount.


The Hall of Famer who spent 19 years playing for the Baltimore Orioles and his wife, Susan, an interior designer, purchased the 1940-built home in 2001 and renovated it. The 4,100-square-foot, three bedroom, 3½ bath home is about a block from the beach. The home has a gourmet kitchen, bay windows and a family room surrounded by glass walls that overlooks a swimming pool. Public records show Mr. Palmer paid $1.6 million for the home.

Click Here to Read:  Jim Palmer's Palm Beach Home Available for $2.9 Million...

Why Short Sales Take So Long: If Banks Ran Restaurants

This is the second of my two part series on why short sales take so long. That first post was very factual and may have lost the less patient readers as it dragged them through the muck that is a short sale. So here is a rewrite of that post from the perspective of eating at a restaurant - something with which everyone can identify - in a Looking Glass world where the banks run all the restaurants.

Background
In this world (let's set the stage in Chicago for fun) there are only 5 restaurants in the entire city. Consequently the restaurants are huge, sprawling over several city blocks with thousands of people coming in to eat every hour. Consequently, the banks have decided to apply their considerable skills to streamline the dining process. You and your family were driving through Chicago when your car broke down and you have decided to eat dinner here. Where you live you have normal restaurants but you have heard that in Chicago things are different.

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Foreclosure Mess Will Take Years To Clean Up

How long will it take before the American nightmare of home foreclosures is over? Ask Mike Dillon, who’s been fighting to keep his New Hampshire home for most of the past decade. 

Though he missed two payments in 2002, Dillon then caught up and was current on his loan by later that year, he said. That’s when his mortgage problems began.

After the company servicing his mortgage failed to properly credit monthly payments to his account, it placed the loan in default. As he worked to straighten out the bookkeeping, with canceled checks in hand, the servicer began adding additional fees for property inspections, insurance and other charges.

Click Here to Read: Foreclosure Mess Will Take Years To Clean Up...

U.S. Lawyer Forms Foreclosure Resistance Movement

In a stately 19th century mansion in the middle of this former textile mill town, a local political scion has formed a mortgage foreclosure resistance movement.


O. Max Gardner III, 65, pioneered techniques in preventing big banks from foreclosing on loans and has taught his methods to 559 other lawyers in the last four years.

He teaches a sort of legal jiu jitsu: how to exploit opponents' large size and disorganization for the benefit of consumers who do not want to give up their homes.

Once lawyers exit his training program, they stay on his expanding e-mail list, and are allowed access to an online document repository to share information. They work together to come up with new ways to slow down foreclosures and share strategies on other bankruptcy issues, communicating at a rate of 350 messages a day.

Click to Read: U.S. Lawyer Forms Foreclosure Resistance Movement...

FHA Commissioner: Mortgage Industry Must Regain the Public’s Trust

During the Mortgage Bankers Association conference in Atlanta, GA, Federal Housing Administration Commissioner said the mortgage business should shine a light on bad participants in the industry and regain the public’s trust.

“There’s a reflection in the media that we aren’t holding ourselves accountable enough,” said David H. Stevens, commissioner of the FHA, noting that the recent news of flaws in some banks’ foreclosure processing methods is adding to the problem.

Click Here to Read:   FHA Commissioner: Mortgage Industry Must Regain the Public’s Trust...

Lenders Skirt Foreclosure Rules

At least 55 Franklin County homeowners will lose their houses at an auction Friday despite the fact that their foreclosure cases appear to contain mistakes, omissions of critical evidence or questionable affidavits, The Dispatch found in a review of court documents.

The newspaper examined the files of more than 130 homeowners whose houses are slated for auction Friday. Half of the cases had issues that consumer advocates call troubling and should have raised red flags before a judge ordered the homes sold.

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Real Estate: Sellers Attached To Their Homes Often Don't Get Their Asking Price

On top of an overall plunge in prices, homes in Tucson usually sell for less than what their owners are hoping to get for them.

If a family has an emotional attachment to a home, it's even less likely to sell for what the owner thinks it's worth, says Stephanie Friend, a local agent with ZipRealty Inc.

That's often the case for those selling homes in central and northeast Tucson. Homes there tend to sell for about 92 percent of the asking price, data from ZipRealty shows. ZipRealty uses statistics from local Multiple Listing Services to compare the asking price and selling price of homes in certain zip codes.
Homes on Tucson's south side are selling closest to their asking price, ZipRealty says.

In parts of town with higher foreclosure rates, homes are more likely to be owned by the bank and priced to move, Friend says. In older, more established communities in midtown and in the Catalina Foothills, sellers expect to get more cash from their homes.

"The sellers there anticipate a higher return on their home," Friend says. "They're more owner-occupied and they have more of an attachment to the house."

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Utahns Split On Renting vs. Buying In Today's Economy

Do we rent or do we buy? That is the question some Utahns are contemplating in today's shaky economy. Analysts say a growing number of Americans are renting rather than buying a home.

Resident Ron Thorpe and his wife bought their home in Tooele 10 years ago. He's even contemplated buying another house but doesn't want to pay two mortgages. He says now is the time to seize the home buying opportunity because of the state of the economy.

"Interest rates are at their record low," says Thorpe. "Housing prices have come down and you always need a home to live in."
Other Utahns aren't so sure about that. Rose Park resident Klarissa Mesi says she prefers to rent because it saves her money.

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How Long Does Foreclosure Take?

Since the housing market fell apart, the time people spend in foreclosure has gone way up.
As the chart below shows, "judicial foreclosures" — those in states where foreclosures go through the courts — now take an average of 271 days, or about nine months.
Judicial foreclosures are the ones at the center of the "robo-signer" foreclosure mess. So as banks change their practices in response to the scandal, we may see the time to foreclosure rise even more in those states.

Click Here to Read: How Long Does Foreclosure Take?...

Watchdog Panel to Grill Treasury on Foreclosure Robo-Signings

A Treasury official will be on the hot seat tomorrow as a Congressional watchdog group, known largely for its scathing assessments of the federal bank bailout, will hold the first public hearing to tackle the foreclosure robo-signings scandal.
Tomorrow's hearing, by the Congressional Oversight Panel for the Troubled Asset Relief Program, was originally to focus on the government's foreclosure mitigation programs, including the Home Affordable Modification Program. 

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FHA Loans: Getting an FHA Loan After Foreclosure

With the recent news of the record amount of foreclosures during the month of September, it is obvious to wonder who will be able to purchase a home in the future. Losing a home to foreclosure is stressful and for many it is the end of the emotional road of homeownership. In reality, foreclosures have been happening all along, but not at the high rate as what has happened over the past few years. Many people who went through this process years ago are now ready to purchase a home again due to low home prices. Getting an FHA loan after foreclosure is possible and happens everyday.

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Apartments Are A Good Investment For Some

The property in Fort Lauderdale was originally valued at $285,000. Clint Gordon, a private investor in multifamily properties, offered the bank $50,000, and within 10 days, had closed the deal. A few days later, he began renting it for $15,000 a year.

"Anybody who's getting into this business now, you get a whole lot of return if you're paying cash for properties," he says. "You're just buying them so cheap."

Prices for apartment buildings are "incredible" in Indianapolis, as well, says Barb Getty, who owns 27 apartment properties in the downtown area. "You can start small like I did; 20% of 40 thousand bucks isn't a lot of money."

Click Here to Read: Apartments Are A Good Investment For Some...

Long Road To A Short Sale: Struggling Homeowners Turn To Lenders For Last-Chance Option

The house that Anna Bogaard-Hazen and her husband, Barry Hazen, bought on a cul-de-sac in Eldorado in 2005 had everything on their list of amenities — views, privacy, a pretty front porch.

In fact, when they first saw it, "Our jaws just dropped," she recalled.

Because others were bidding on the property, the couple paid the owners their asking price of $389,000 for the 1,800-square-foot house.

When they refinanced in 2007, the appraised value of the property had jumped to $460,000 and they thought, "Oh boy, we made a great investment. We were thrilled," Bogaard-Hazen said.

Read On:  Long Road To A Short Sale: Struggling Homeowners Turn To Lenders For Last-Chance Option...

Buying Bank Owned REO Properties

Buying bank owned homes or condominiums is a great way to make a make deal of money in today’s real estate market conditions IF you have cash. Cash, Proof of funds letter, Education and Training are the key elements new investors are lacking. These three factors are important before any inexperienced real estate investor or buyer plunge into the real estate world.

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Is There a New 3.8% Tax on House Sales?

We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information. 

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Top Five Reasons To Purchase A Home Now

Buyers still waiting for home prices to scrape rock bottom (hint: they will never return to1953 levels) or interest rates to hit zero (I know, it feels like they're headed there) might want to consider that conditions for buying a home are better today than at any time in recent memory.

The following are five reasons to consider a home purchase now:

1. Bargains are abundant, and buyers hold the cards. Home prices have dropped 30% since the peak, and in some states, such as Arizona and Florida, we're looking at the steepest price drops in recent history. The median price nationally for an existing home was $178,600 in August, according to the National Association of Realtors. With the expiration of the federal tax credits for home purchases, competition for low-cost homes has eased considerably.

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3 Signs the Mortgage Market Has Hit Bottom

After more than two years of misery in the housing market, the worst may finally be over.

A handful of recent developments in the mortgage market all point to an easing of lending standards, which have been onerously high since 2008. Private lenders and the federal government have reinvigorated the jumbo mortgage market, making bigger loans more available to more borrowers. And in general, would-be homeowners can now qualify for a loan with a lower credit score and make a smaller down payment – in some cases, as low as 5%. Those moves, taken together, mean that more borrowers have access to mortgages, a necessary precondition for housing to rebound.

“When you see those moves on the upswing, it gives you a hint of what’s coming later on,” says Chip Cummings, president of Northwind Financial, a consulting company for mortgage and realtor firms.

Read Here: 3 Signs the Mortgage Market Has Hit Bottom...

How to Negotiate When Buying a Home

The dream of home ownership is one that plagues many adults. Paying into a rental, month after month, may be cheaper in the short term, but over the long haul you can begin to feel like you’re simply flushing money down the toilet that could be going towards an investment in your future. But buying a home is no easy feat. Somewhere between the home you want and the loan you can get is a house that is right for you (or at least for right now), and it can be very tricky to navigate the shark-infested waters of the housing market. First, there are the previous owners, who no doubt want to get as much value from their home as possible. Then there are real estate agents, who may tell you just about anything in order to get a commission (except for Martin Vaughn). And of course, you will have to deal with loan agents, who must look out for the best interest of their lending institution (not to mention whatever kind of bonus they’ll be getting). In short, it pays to know what you’re up against and actively pursue finding out everything you can before you enter negotiations.

Click Here to Read On:   How to Negotiate When Buying a Home...

How NOT To Negotiate an REO Property

This week, I’m going to depart from my usual attempt to be informative and insightful, and instead use this space to share an interesting email exchange I had with a particular non-professional REO listing agent (and yes, I ended up taking a very non-professional tact as well). Actually, I think this post will be informative and insightful, but only as an example of what you probably shouldn’t do as a listing agent or an investor/buyer.

To set the stage, we made an offer on an REO last week. Before submitting the offer, my wife (my agent) called the listing agent to verify that the property was still available. He told us that the property had received multiple offers and that we should submit our “highest and best” offer to the seller.

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Is Vanilla Ice The Next Donald Trump?

Why Government Shouldn't Block Home Foreclosures

If one word best summarizes the current housing market, "foreclosure" would be it. Despite record-low interest rates, American homeowners are losing their properties with greater frequency than at any time since the Great Depression. Yet banks and other financial institutions, until very recently on track to seize 1.2 million homes by the end of this year, are facing growing pressure to impose "voluntary" nationwide moratorium on foreclosure repossessions and sales. If they don't do the job themselves, say critics, government should do it. Several major lenders in fact have ceased property seizures in the wake of widespread revelations of foreclosures lacking proper documentation. The calls for action are understandable. Yet a moratorium, rather than restore integrity to our financial system, would further imperil it.

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Why Your First Home Shouldn't Be Your Dream Home

Since 2000 homeownership rates in the U.S. have hovered around 66% to 67% of the population. In 1900 less than half of Americans owned their own homes. The biggest surge in home buying came after World War II, when many young families were encouraged to buy "starter homes."

Attitudes about how to buy a home have fluctuated as much as interest rates during the decades since World War II, and eventually many first-time home buyers were encouraged to "buy big" in order to stretch their budgets as much as possible, and to buy the homes they wanted to live in forever. Given the high level of foreclosures and the loss of value in many homes, today's buyers are more wary of taking on homes they cannot afford, but many are still tempted to make their first home purchases their dream homes rather than their starter homes.

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NY Fed, 8 Firms Threaten BofA Over Mortgage Securities

The New York Federal Reserve Bank is part of a consortium of eight large institutional investment firms that is demanding that Bank of America repurchase loans included in mortgage securities.

Bloomberg reported earlier Tuesday that the New York Fed had joined with the Pacific Investment Management Company, better known as Pimco, and investment management firm BlackRock in an attempt to force BofA to buy back $47 billion in mortgage bonds.

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Michael Jackson’s Kids Want to Buy Neverland Again

Prince Michael and Paris has many wonderful memories with their father at Neverland. They also intend to buy again that super luxury homes.

As reported by the Daily Mail, Monday, Prince and Paris agreed to buy the house when they were grown. Incidentally, they will get all the legacy of Michael when they were aged 21 years.

Click Here to Read: Michael Jackson’s Kids Want to Buy Neverland Again...

Slumping Resort Real Estate Means Bargains For Rich

America’s “Great Recession” has provided a great lesson for resort real estate markets.
Economic slowdowns hit even the wealthy, and this latest one has dealt a serious blow to markets in places such as Aspen, Vail and Telluride, where home prices often are measured in millions of dollars.
Last year was a year to remember, or possibly better off to forget, as transactions and dollar volumes in many resort areas continued a sharp decline also experienced in 2008.

Click Here to Read:  Slumping Resort Real Estate Means Bargains For Rich...

U.S. Trying To Assess Foreclosure Crisis Scope - FDIC

U.S. financial regulators are trying to gauge the scope of improper processing of foreclosures while banks need to assess their level of risk exposure, banking regulator Sheila Bair said on Sunday.
Federal Deposit Insurance Corp Chairman Sheila Bair said in an interview on C-SPAN's "Newsmakers" that the problems with processing foreclosures appeared to be an industry-wide practice, at least with larger loan servicers.

"I think this is really a symptom of size. It's very unfortunate," she said. "So in our backup supervisory capacity we are working with our regulatory colleagues. I think it is necessary for the regulators to go in and verify."

Last week, attorneys general from all 50 states said they were looking at allegations some banks did not properly review files or submitted false statements to evict delinquent borrowers from their homes. They are investigating accusations that lenders and banks employed "robo-signers" to sign hundreds of affidavits each day without vetting all the information.

Click Here to Read:  U.S. Trying To Assess Foreclosure Crisis Scope - FDIC...

Banks Restart Foreclosures

Two major lenders at the center of the foreclosure crisis took steps Monday to put the mess behind them by restarting home seizures that were frozen by documentation concerns.

Bank of America Corp. reopened more than 100,000 foreclosure actions, declaring that it had found no significant problems in its procedures for seizing homes. GMAC Mortgage, a lender and loan servicer, said that it also is pushing ahead with an unspecified number of foreclosures that came under intense pressure.

Monday's moves are part of a growing counterattack by lenders scrambling to stem a financial and political threat over allegations that certain employees signed hundreds of documents a day without carefully reviewing their contents when foreclosing on homes.

Click Here to Read:  Banks Restart Foreclosures...

Rehabbed Home Has Tales To Tell

Mary Jo Willmore admits that at first, she and her husband, Bradford, didn't really know what to expect from the Telegraph Hill home at 31 Alta St. when they first saw a sketch of the probate home in a magazine a decade ago.


"You're always a little scared when you see just a sketch of a home, because that usually means there's something wrong with it," she said.


The home, which is believed to have been built in the mid-19th century and survived the 1906 earthquake, did have a few issues. The bricks on its exterior needed repair, its decks were tattered and the interior was barely livable.


Read more: Rehabbed Home Has Tales To Tell...

Mortgage Damage Spreads

The unfolding foreclosure-processing debacle is causing bank stocks to slide and putting millions of delinquent borrowers in limbo.

But how disruptive the crisis ultimately becomes—for homeowners, the housing market and the broader economy—depends on how quickly a number of technical problems and legal challenges are resolved in the months ahead.

Click Here to Read:   Mortgage Damage Spreads...

Four Ways The Foreclosure Mess Could Be Used To Help Homeowners

If you didn't think the gods of financial crises had a sense of humor, consider that the latest economic threat is that foreclosures have largely stopped. What's next? Our (401)ks are looking too full?
Although the potential for chaos in the housing market and on bank balance sheets is rightly feared, there's an opportunity here, too. Foreclosures have paused. There's renewed recognition that the business practices behind the housing bubble were a mixture of insane and fraudulent. The banks will probably need some government help again, even if it's just regulatory forbearance. The market is preparing for the possibility of new policies - and we should have some, but not just for the banks. For the homeowners, too.

Our response to the financial crisis had three parts: The bank and auto bailouts, the stimulus, and the efforts to help homeowners facing foreclosure. The bailouts worked pretty well. The stimulus was much too small, but at least did what it said it was going to do. The help for homeowners, however, has been a disaster.

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Foreclosure Anger Is Now Hitting Election Campaign

Three weeks before the election, anger over tainted home foreclosure documents is bursting into the battle for control of Congress, especially in hard-hit states such as Nevada and Florida. Democrats in tight races in the worst housing markets are pressing for a national moratorium, putting a reluctant White House on the spot.

Leading the call for a nationwide time-out on kicking people out of their homes is Democratic Senate Majority Leader Harry Reid, who is locked in a neck-and-neck re-election contest with tea party-endorsed Sharron Angle in Nevada, which has the highest foreclose rate in the country. Reid is decrying "reports of shoddy and defective affidavit preparation."

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Builder Turns 'Trash' Into Custom Homes

A Texas homebuilder is turning trash to treasure by converting landfill items into houses for single mothers, artists and low-income families. License plate roofs, picture frame ceilings and wine cork floors are just some of the features in these custom-built homes.


"I always suspected that one could build a house out of whatever went into a landfill," said builder Dan Pillips.

He has turned his hunch into a business. Phillips and his retired art teacher wife Marsha pour their creative energy into their construction company, Phoenix Commotion.

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Most Expensive ZIP codes In The US

Los Angeles has always been home to some of the world's most expensive real estate. But forget Beverly Hills, 90210: The new hot spot for multimillion-dollar mansions is Duarte, 91008.

Duarte, Calif., home to the 91008 ZIP code, is a small suburb northeast of downtown LA, near the Los Angeles national forest. The median cost of a house in this tony town is a whopping $4,276,462, making it the most expensive housing market in the country. It ranks No. 1 on Forbes' annual ranking of America's Most Expensive ZIP Codes.

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Despite Freezes, Foreclosures March On In Utah And Beyond

For most Americans at risk of losing their homes —especially those in Utah — the brutal business of foreclosure goes on.

Bank of America halted foreclosures across the country to address banks’ use of flawed foreclosure paperwork, but three other banks did so only in 23 states where judges have to review foreclosures— and Utah wasn’t one of them. And other banks holding millions of mortgages have not suspended any foreclosures.

As with all real estate matters, location is everything. So what does the industry’s moratorium mean for states such as Utah, Arizona, California and Nevada that typically have no judicial review of foreclosure cases (except when homeowners sue a bank)?

For now, “It’s probably going to have little — if any — effect in Utah,” said Rick Sharga, senior vice president of RealtyTrac cq , a company that tracks foreclosures nationally.

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Israel Unlikely Champ In Global Real Estate

Israel, despite perennial fears of war, has emerged as one of the hottest - and least likely - property markets in the world: Since real estate collapsed around the globe in 2008, at least one industry watchdog lists it as the fastest-rising property market on earth.
But with global economic meltdown - and the subprime mortgage fiasco that precipitated it - still fresh in people's minds, officials are stepping up efforts to rein in its overheated property sector. The fear is that a property bubble could shake confidence in an economy that withstood the worst of the world's financial crisis.

Bank Foreclosure Fiasco: What It Means To The Housing Market

In the last two weeks the housing market has been shaken by the fiasco that has managed to infect the entire nation. Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Ally Financial have all imposed moratoriums on their foreclosures in at least 23 states, and BOA has issued an edict to stop the foreclosure processes in all 50 states. This has collected the attention of congressional leaders, and the President. Leaders have requested investigations, asked loan servicing companies to stop filings, and the President even vetoed a bill easing the process in courts, a bill of his conception.

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Pointless Bank Requests Slow The Short Sale Procedure

Today’s installment is going to bring out some complaining. Nevertheless, by the end of the episode, we will bring this chat full circle with some information on how to overcome the problems.

Recently, we have been getting an increased amount of requests from lender workers for documents that is totally needless to the transaction. For example, we have a short sale package at B of A, accepted several months ago. Yet, the buyer walked away, so we obtained a new buyer at the identical offer price. Because the folder has a new negotiator assigned to it, the package did not get approved.

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Foreclosure Delays May Cost U.S. Banks Up to $6 Billion, FBR's Miller Says

Faulty foreclosures may cost U.S. lenders $2 billion for every month that home seizures are delayed and the tab could reach $6 billion, according to Paul Miller, the bank analyst at FBR Capital Markets.

Investigations of how banks are seizing homes may prolong foreclosures by as much as three months, at a rough cost of $1,000 per month for each property in the pipeline, Miller, a former bank examiner, said in an interview today. The biggest firms likely need to add staff to comb through the files, costing them each $1 million a year, he said.

“The real true cost is not the expenses, it’s the drag in the foreclosure system,” Miller said.

Attorneys general, consumer groups and some lawmakers have pressed mortgage firms to follow Bank of America Corp., the biggest U.S. lender, which last week suspended all foreclosures to check whether faulty documents were used to confiscate homes. JPMorgan Chase & Co. and Ally Financial Inc.’s GMAC Mortgage unit froze seizures or evictions in 23 states.

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Beverly Hills Mansion Featured In 'The Godfather' On The Market For $95 Million

For $95 million, you can own the Beverly Hills mansion where scenes from The Godfather were filmed, according to The Wall Street Journal.

The property’s owner, attorney and investor Leonard M. Ross, filed for Chapter 11 bankruptcy last week, says The Journal.

The 50,000-plus-square-foot home, called Beverly Estate, was used for the famous horse head scene in the iconic film.

Click Here to Read: Beverly Hills Mansion Featured In 'The Godfather' On The Market For $95 Million...