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Sep
2
Foreclosed properties for sale are everywhere. From coast to coast homes are being sold for far below market value as banks attempt to recuperate some of the money they have lost due to the mortgage crisis. For example, bank of New York foreclosures are available in Massachusetts, New York, New Jersey, Georgia, and Mississippi – just to name a few. A State known for its miles of beautiful beach coastline, pro sports teams, and theme parks, is now also known for the outstanding value that is found in its Real Estate market. Bank foreclosures in Florida are now ruling the market and everyone can be a part of the amazing prices.
Bank of New York foreclosures can be found in every State along the East coast. No matter where you are looking to live or buy a rental property in the Eastern sea board one will surely be available. Foreclosed properties are representing every type of property and location imaginable. From a cozy sea-side cottage, to a 3 car garage in a nice neighborhood, and even uptown high rises foreclosures for sale are available at a fraction of the cost they were purchased at. The amount of bank foreclosures in Florida is particularly high. Because Florida ranks within the top four States with the highest mortgage delinquency rates, there are more foreclosed homes for sale available then you might imagine.
While there is no doubt that bank of New York foreclosures are available in Florida, nearly every major bank and mortgage broker is offering foreclosed properties at a reduced price. In the first quarter of this year, the median price for all single family homes in Florida fell to just over $133,000. Luxury foreclosed houses are also available at unbelievable prices. There is no city or county that is left untouched by the availability of foreclosed properties in the ‘Sunshine State. ’ From the Florida Panhandle and Panama City Beach down to Tampa and Miami, not only foreclosed houses but also foreclosedcondos, are available at extraordinary prices. An excellent investment move would be to purchase one of the bank foreclosures in Florida near the beach and have it ready to rent for the snowbirds or Spring Break. The savings available in the current Florida market cannot be beat, offer the casual Real Estate investor the opportunity to increase their portfolio, and the capability to recoup their investment in a very short time. Investing the Florida Real Estate market is nowwithin reach, no matter your price range, home type, or preferred Florida locale.
by George Bernard Shaw
Sep
1
HAMP is in denial
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- The objective has become to stretch things out
- Banks are happy to go along with this too
- What happens if America runs out of time?
Although HAMP has assisted many Americans directly (and indirectly too via pressure on the banks) the unfortunate reality is that it has failed in its promises to many more. Most of these have threshed around in the foreclosure mill for months while they waited for loan modifications, only to be eventually hung out to dry.
When the United States Treasury Department launched HAMP in March 2009, the backbone of the program included persuading home loan servicers to modify the terms of troubled mortgages so that borrowers could afford to service them, and avert foreclosure. At that time, President Barack Obama said that he hoped that HAMP would help up to four million American households successfully modify their home loans in the course of three years.
This still sounds like a good idea from the perspectives of both borrowers and their lenders. Millions of American households owe more than their houses are worth, and many of these are no longer able to make payments, after losing their jobs or suffering a contraction in disposable income. In California alone, 2.3 million families face negative equity. One would have thought that banks would be happy to avoid the high cost of so many foreclosures by agreeing modifications.
It seems the answer is no, at least in most cases. This far, just 420,000 mortgage HAMP-inspired modifications have become permanent, while many more hopefuls have been turned away. Is HAMP taking a back seat on this, or are the hurdles for banks too low – if indeed there are any?
According to a report issued by the Troubled Asset Relief Program issued in July 2010 “The number of trial and permanent modifications that have been cancelled substantially exceeds the number of homeowners helped. One continuing source of frustration is that the Treasury has rejected calls to announce publicly any goals or performance benchmarks for HAMP.”
How can it be possible for an apparently logical federal program like HAMP to fail so badly? The answer lies in the fact that it is concentrating on keeping its finger in the leaking dyke wall, as opposed to repairing the hole. The main strategy has been denial. Forestall foreclosures, keep banks solvent without further federal funding, encourage higher house prices to keep builders occupied and boost consumer spending. At all costs, avoid creating bad news.
The banks have appeared happy with the denial approach too. After all, going the modification route before foreclosing stretches things out from a few months to a year or more. Foreclosures are bad news for banks too, and delaying them is good for their balance sheets. What will happen when shadow inventories hit the American property markets? Follow the story at the website that lists foreclosure real estate – www.foreclosuredatabank.com.
by Jules de Gautier
Aug
31
Will tax credits be revived?
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- Nobody has actually said that more tax credits are in the pipeline
- A leading homebuilder is against the idea
- Is this just more media spin?
Those who are expecting Secretary for Housing Development Secretary Shaun Donovan’s recent statement regarding additional support to unemployment homebuyers to translate into renewed tax credits should use their breath for more useful things like cooling their porridge. This is what Donovan actually said in response to a media question:
“I think it’s too early to say after one month of numbers whether the tax credit will be revived or not. All I can tell you is that we are watching very carefully. I talked earlier about new tools that we will be launching in the coming weeks and we are going to be focused like a laser on where the housing market is moving going forward. And we’re going to do everything we can to make sure that this market stabilizes and recovers.”
The previous round of tax credits that expired on April 30 definitely helped encourage house purchasers. Unfortunately, the growth in sales that this inspired translated into a massive downward blip when the tax credit initiative ran out of team. The shock this caused inspired Washington to announce fresh HAMP initiatives that include renewed re-financing efforts and short-term loans to unemployed borrowers. The question from the floor could become more newsworthy than the media representative expected – already there is talk of prospective buyers holding back in anticipation of a benefit that may never materialize.
Leading players in the real estate industry had already backed off from calling for tax credits with this in mind. Chief Executive of homebuilder PulteGroup Inc. summed corporate feeling up nicely when has addressed the media earlier this month. “Almost regardless of how future demand plays out, we still believe that the tax credit had to end. We need to know the true level of demand without government stimulus distorting the market so that we can continue to properly position our business for ongoing improvement.”
Given the severity of its potential, why has nobody in Washington slapped the rumor down? The strongest response heard to date was from Robert Gibbs, Whitehouse Press Secretary, again in answer to a question. “I don’t — while I have not seen, obviously, a final list, that is — I think bringing that [tax credit] back is not on — is not as high on the list as many other things are.” In so doing, Robert Gibbs actually said nothing at all.
Spin-doctors are always careful not to say something that might depress the public, and to say everything that has the opposite effect. Could it be that the Press Secretary had an eye on the mid-term elections when he fielded the question? News brought to you by www.foreclosuredatabank.com (a foreclosed property listing site).
by Dwight D Eisenhower
Aug
30
The Real Estate market in Texas continues to grow with many houses for sale. Many of these houses may be purchased far below market rate due to the large amount of foreclosures still available in the state of Texas. Two major cities have a large volume of homes currently available. In the capital city, Austin foreclosures continue to thrive. In addition foreclosures in Houston keep the city among the top in all Texas cities. With one in every 819 homes in the foreclosure process, the state of Texas has plenty of opportunities for foreclosure bargains.
Cost of Living and Job Market
The cost of living and job market currently in Texas make it a prime choice for buyers to choose whether it is for relocation or pleasure purposes. In Austin, the cost of living is 15% lower than the national average and Houston is over 22% lower. This means when you purchase from the available foreclosures in Houston not only are you getting a home far below market rate, you are also significantly decreasing living costs after you move. Austin foreclosures give homeowners the luxury of living in a capital city without paying a large amount of capitol. The beauty of these two cities is that houses for sale throughout the metro areas mean you can live near an urban environment, but wake- up every morning to the beauty of the trees. In addition to the low cost of living, the Texas markets have good job markets in many different sectors. Whether your job involves education, technology, manufacturing, or retail, these Texas cities have available jobs for new home owners. Another unique reason for moving to Texas is the lack of state income tax. With these factors you can make more money, spend less money on taxes, and get a bigger bargain with the money you spend on your home when you purchase a foreclosure in Texas.
The median price of houses for sale in the Austin area is just over $130,000, a $5000 decrease compared to this time last year. If you choose to purchase an Austin foreclosure property, you will surely get an even larger discount from the market sales price. There are currently over 6100 foreclosures in Houston, with more soon to be on the way. This may explain why the current average sales price for homes in Houston to be just over $82,000. No matter what price range or metro area, the state of Texas is offering outstanding foreclosure deals.
by Lyndon B. Johnson
Aug
27
Houston Foreclosures for sale: Hot prices and temperatures in the future for foreclosure buyers
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Bank foreclosures offer home buyers the chance to upgrade a great house into their dream house. For far less than can be spent on a new home, owners can purchase a foreclosed house and begin to make desired repairs. While renovations can be as simple as new paint, they could be as extreme as knocking down walls or even considering bathroom remodeling. Why purchase a more expensive new home when you can buy a foreclosed property and create the home of your dreams, saving so much more? In the latest reports, those who choose to purchase fixer upper homes for sale can often save over 25% over the market rate of the home. The substantial savings from the purchase of the foreclosure house can then be used to make simple or extensive repairs and modifications, often time leaving money left over. In some parts of the country, the savings go even further such as purchasing one of the many Houston foreclosures for sale currently available.
Houston, a Hot-Bed of Foreclosure Action
Texas recently ranked in the top ten States with the most foreclosure. Bank foreclosures for sale are still at a record high and growing in the State. The number of Houston foreclosures has recently jumped providing plenty of opportunity for those interested in living in the Houston area. Those who choose to buy bank foreclosures in Houston can save more than the national average of 25% due to the current saturated Real Estate market. It’s not just downtown Houston with outstanding prices on fixer upper homes for sale, but the entire Houston metro area and surrounding counties. Whether the buyer has plans to redo the floors or put in a pool in order to beat the summer heat, purchasing a foreclosed property can allow a buyer the chance to put their own taste in design on their new property.
Even More Texas-sized Savings
With so many near-by activities, including the beach and three pro sports teams, those who love warm temperatures and good prices will love Houston foreclosures. With such a saturated market, foreclosure buyers can experience outstanding savings compared to the market rate. A hidden bonus in the many fixer upper homes for sale in Houston is that a low cost of living. Repairs on a foreclosed property in Houston won’t spend much money, because Houston stands well below the cost of living average for US metropolitan rates and this means low cost remodeling and home upgrades. The costs of construction materials and labor in Houston is lower than the majority of the US; meaning, the savings in purchasing one of Houston’s bank foreclosures stretches farther than just the purchase price.
by George Bernard Shaw
Aug
26
- Markets remain sluggish
- Sales are down
- Unemployment casts a threatening shadow
- Business investment is still hanging in there
- The bogeyman is shadow lender inventories
Real estate sales are down right across America. The reason for this is simple. Potential buyers are fearful of losing jobs, and with these, down payments, credit records and their sense of worth as well. This is not helping realtors and new-home builders either.
Sluggish Markets
American new house sales hung on at 300,000 last month. This is the second worst achievement since records began. The Commerce Department will confirm this sorry fact in its next report. Statisticians use new home sales as a leading indicator of the state of the property market, because prices lock-in on the day of sale. The latest figures suggest that markets did not recover following the 27% drop in June month. The lingering effect of federal tax incentives is gone – the nation needs greater government effort to recover the situation.
Emeritus Director at Harvard’s Joint Center for Housing Studies at Cambridge, Massachusetts is in no doubt about this. “Jobs are going to be the key factor in the recovery,” he told me, “and we have a job market that’s sluggish.”
Sales Figures Down
On average, newly built houses are taking twice as long to sell, as was the case in 2008. Total previously owned home sales plummeted down to an annualized figure of 3.3 million, which is the lowest since 1995. At this rate, it will take almost 12 months to clear the current backlog – and this excludes new entrants to the market, and bank inventories held in reserve.
This underlying weakness in demand is a reflection of both unemployment fears, and a general lack of confidence in the American property market. Most Americans are waiting to see which way the economic cookie crumbles before they make their move.
The Shadow of Unemployment
The Labor Department has downsized its June report and advised less than hoped for growth in July too. Company payrolls increased by a disappointing 71,000 and all indications are that the unemployment rate of 9.5% will hold steady for the rest of the year.
“Housing’s incapacity to turn around is a very big reason why this recovery is so weak,” Ellen Zentner, Senior Economist at Bank of Tokyo-Mitsubishi in New York, recently said.
Business Investment
On a more positive note, the Commerce Department believes that new equipment acquisitions continue to have a positive effect on the American economy.
Foreclosures Dominate the Supply Chain
The huge real estate owned inventories in the hands of lending banks loom over staggering property prices. “We need resale inventory, namely foreclosure inventory, to come down before we’re going to see any meaningful move in the housing market,” a leading real estate analyst believes.
Find stunning foreclosure real estate at www.foreclosuredatabank.com.
by Douglas Adams
Aug
25
Despite some saying that the Real Estate market is improving, the Southeast part of the United States is still being hit hard by the mortgage crisis. This however, still means good news for those searching for good deals in foreclosed homes for sale in the South.
Great deals just off the coast!
Florida is still a hot bed of activity for those seeking good Real Estate deals. In just three counties alone, banks will be taking ownership of 50,000 properties just this year. Those properties will be released into the Real Estate market meaning that the amount of foreclosures in Florida will continue to stay high. At last count, nearly 1 in every 171 homes in Florida was in the foreclosure process. It’s not just the Real Estate deals that attract buyers to the Sunshine State. The beaches, coast line, and many attractions give Florida residents the opportunity to see it all without leaving the State. The high rate of foreclosures in Florida means that every county has outstanding properties for sale and excellent deals to offer.
Atlanta: A hidden foreclosure gem.
Just a little farther North, Georgia also has an outstanding market for buyers looking at foreclosure properties for sale. Georgia ranks in the top ten states in the US with the most foreclosures and Atlanta foreclosures continue to grow. Recently it was estimated that 1 in 320 homeowners were facing foreclosure. The capital city of Atlanta spreads across several Georgia counties making it the perfect place to find a foreclosure property in busy downtown, nestled on a side street, or further into the country. With so many Atlanta foreclosures, you are sure to find a home in the 132 miles of the capital city. Southern goodness is just around the corner in the incredibly priced foreclosure properties available in Atlanta.
While the amount of foreclosed homes across the country continues to rise, the state of Florida and the city of Atlanta continue to be a hot bed of Real Estate deals for those looking for a great buy. These great locales offer Southern charm, beautiful ocean views, access to sporting events and theme parks, and an outstanding family atmosphere. Why visit these wonderful states when you can live there and enjoy all of the perks full-time? The amount of foreclosed homes for sale in Florida and Atlanta means there is a buyers’ market and living in one of the these outstanding locales is more affordable than ever.
by Ralph Waldo Emerson
Aug
24
- Banks are controlling the supply, and price of real estate
- At the same time they are paying lip service to loan modifications
- Who is in charge now?
The monthly foreclosure rate has continued to rise sharply this year, and is not showing any real signs yet of abating in the future. Further decline in house prices will be the inevitable result. The only imponderables are how deep is the bottom, and when it will be found. This logic flies in the face of some with a political agenda, who claim that home prices are picking up slightly.
The algebra behind the equation is simple enough for a Grade 1 Student to understand. More foreclosures = increased inventory. Increased inventory = increased supply. Rising unemployment = reduced demand. As sure as pigs will never fly in my lifetime, (increased supply + reduced demand) = lower real estate prices. This will continue to be true, until improved employment rates provide an up tick in demand.
Those with rose tinted spectacles provide the argument that the lowest interest rates in decades are providing that incentive, and will continue to do so in the future as well. While it is true that re-financing is on the increase again, most of this is to do with keeping troubled families in their homes, as opposed to bringing in new buyers. The dark reality currently concealed in the foreclosure numbers is the mass of underwater borrowers who are hanging in there under conditions of current employment. As far as this writer is concerned at least, nobody in the administration has faced up to the possibility of a serious down tic in American employment, and what they will have to do, should this unfortunately happen.
Banks have adopted a cautious approach to flooding the market with their inventories, because they are painfully aware of the damage that a further property price slump could do to their balance sheets, and their ability to raise finance in the future too. This may also be the main reason why they are currently paying lip service to HAMP. The short and long answer to the debate is that HAMP is not working. Politicians may choose their reasons for this and their defenses of it too. Banks have hidden agendas – the proof is in the foreclosure rate, and the increasing numbers of decent citizens on the streets
Ordinary Americans have reached out for help and have seen their hopes dashed again when their modified mortgages failed too. These days more and more Americans have given up trying to maintain pretenses. They have stopped servicing their loans. I sometimes wonder whether the government has put its head in the sand too.
The current situation is good news for those wanting to buy discounted real estate. Visit www.foreclosuredatabank.com and find real bargains there.
by Lyndon B. Johnson
Aug
23
Chicago Community Bank Fails
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- Chicago-based ShoreBank has failed
- A like-minded group has bought it out
- What does this mean for the communities that ShoreBank sought to help?
Another American Bank, mired in the real estate market and the travails brought on by rising unemployment and lower property prices, has just shut its doors for the last time. The victim this time is Chicago-based ShoreBank, which billed itself as the country’s leading community bank for those who might not be able to have their loans approved elsewhere.
When ShoreBank failed last Friday, a consortium of the bigger banks, civic-minded people, insurers and benevolent groups bought it out – the Federal Deposit Insurance Corporation (FDIC) picked up the tab for nearly $370 million on behalf of the banking industry that owns the latter. ShoreBank is the 114th lender to be seized by regulators this year, and the 15th one to fail in Illinois during 2010.
The new owners of ShoreBank are already posing questions regarding their new acquisition’s business model. Current thinking is that it is time to change the way that it has been operating in its niche areas of Cleveland, Detroit and Chicago, because what was profitable for several decades no longer is.
Bill Brandy, Illinois Finance Authority executive is quite clear on this. “When I sat in the regulatory meetings briefly with ShoreBank early this year, even the state banking commissioner said ‘There’s no doubt if we had to save ShoreBank, or if the regulators hold off, its near-term business model has to change because it’s a little out there in terms of mortgages.” He has also said that the collapse of ShoreBank could harm troubled neighborhoods too, and that – however the FDIC may like to mince its words – means that a community asset is gone forever.
It is not as if the financial markets did not receive warnings. ShoreBank has been on the hand-out trail for a year now, and funds of $150 million had been pledged by the group that now own it, against a federal bail-out of $75 million. The bailout never happened, because of industry complaints of a smaller bank receiving benefits ahead of its larger competition. The new entity is Urban Partnership Bank, which is at least an echo of the old one’s previous role. An early task of First Chicago executive Bill Farrow will be to oversee the transfer of all deposits.
South Shore Bank (the predecessor of ShoreBank) was established in 1973 with the goal of re-vitalizing crumbling Chicago inner-city areas and thereby uplifting the mainly black inhabitants living there. Investors and managers hoped that this philanthropic gesture would take the sting out of redlining and other discriminatory practices. Unfortunately, the hard face of business has once again proven that generosity is seldom personally profitable.
Find distressed property for sale at www.foreclosuredatabank.com.
by Scott Adams
Aug
20
HAMP has hardly made a dent in the foreclosure debacle
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- The various stakeholders complain about each other
- The program has hardly made a difference
- Is this just another mad hatter’s tea party?
The grim foreclosure reaper is grinding on across the length and breadth of America, harvesting the wealth of an increasing number of families and spewing out their dreams. The news is chilling on many other economic fronts too. This includes the report last Thursday that first unemployment claims have reached 500,000 in the face of criticism that Washington is not doing nearly enough to control the situation.
Last month (for the 17th month in the row), the total of default and auction notices, and bank repossessions totaled over 300,000. The main player here is the actual repossessions, which have surged recently, hitting almost 93,000 homes during that month too. More foreclosed houses on sale means more imbalance between supply and demand, and lower median property prices. Falling property prices increase the number of underwater borrowers. It just takes a further rise in unemployment and the whole vicious cycle kicks in again. Industry analysts are now estimating that 1.9 million American families will lose their homes and fortunes this year. That is a scant improvement of 100,000 over 2009 and not much to improve the reputation of Obama’s HAMP.
There is compelling evidence regarding the ineffectiveness of HAMP. Acceptably large numbers of homes are not becoming affordable, despite what the Treasury Department says. The almost 400,000 mortgages modified over the past eighteen months are paltry when compared with a forecast 3.9 million foreclosures for 2009 and 2010.
To make things even more depressing, officials have managed to spend just $321 million of the $30 billion granted. Stakeholder complaints center on administrative issues. Homeowners complain that bank procedures are confusing and that a lot of the paperwork has gone missing. Lenders complain about moving targets in terms of changing rules. Washington complains that the banks that caused the economic wobble are not interested in sorting their mess out – when in mercy’s name will the buck stop somewhere?
The banks do have a point though. The law requires financial institutions to maintain tight controls, and that includes putting new procedures into place and re-training staff. The Inspector General seemed to agree with lenders when he recently criticized the Treasury Department for failing to set benchmarks and clear goals for HAMP. But then so also does Obama have a point. Banks are definitely less than interested in finding ways to lose money, and if pushed to hard have the option to retire from the Treasury project.
Perhaps the new initiatives to provide direct aid to individually troubled homeowners will make a difference. Let us hope that it does so, for America is in desperate need of hope. There is real value in bank inventories. Find foreclosed residential real estate at www.foreclosuredatabank.com.
by Ralph Waldo Emerson