In 2010, over 1.5 million people filed bankruptcy, and 2011 is expected to bring much of the same. Filing bankruptcy is one of the most damaging things to a credit score, potentially dropping your score by 150 points or more, reducing your credit creditworthiness and costing you more in increased finance charges and interest rates. Though bankruptcy remains on your credit report for 7 to 10 years, there are steps you can take to start turning your credit around in 12-18 months.
Check your credit report: This is probably the last thing you want to do, but it's important to know exactly your current credit status, while also confirming all information is correct. The longer incorrect information stays on your credit report the longer it could possibly negatively affect your credit score.
Go to www.annualcreditreport.com and pull your credit report. This free report will not contain a credit score, but you just want to make sure everything that should have been discharged in your bankruptcy shows a zero balance. If it doesn't, contact those creditors and the credit bureau to make sure the information gets updated.
Make on-time payments to remaining debts: Many people mistakenly believe that a bankruptcy will wipe out all debts, but some, such as student loans, child support and, in many cases, mortgages will not be discharged. By keeping on top of payments on those remaining loans, you'll receive a credit boost for paying your bills over time.
Get a Secured Credit Card: Secured credit cards let you take baby steps back into the credit game. To offset the card issuer's risk, secured cards require a deposit that serves as your credit line, so if you put down $1,000, you'll have $1,000 in credit available. Apply for a secured credit card through a local bank or credit union, but make sure you do your research first. Many secured credit cards have extremely high fees, and not all report to the bureaus. Make sure the card you are using has the lowest APR, low fees and most importantly reports to the credit bureaus.
Obtain a small loan with your bank or credit union: Many banks and credit unions will allow you to take out a personal installment loan based on the money in your savings account. FICO likes to see a "healthy mix" of credit lines, such as both revolving and installment. Getting an installment loan that is secured by your savings will allow you to start building credit through another resource other than the secured credit card. Remember to ask your bank or credit union if this loan will be reported to all 3 bureaus. The key is to build credit and increase your credit score. If the hard work you are doing is not being reported, you will not see any of the benefit.
And lastly, after several months of responsibly using your secured credit card, (paying on time, keeping balances low, etc) and making your monthly installments on your secured loan on time, you should be able to get approved for an unsecured credit card. Apply for a small gas card, or a department store card, as these are typically easier to obtain.
Once you've shown your ability to pay on time and your credit score has raised accordingly, ask the card issuer to lower your rate, or apply for a card with better terms. There's no one-size-fits-all approach to rebuilding credit after bankruptcy, but with consistent financial discipline and a little patience, you will get easier access to credit again.
From Data Facts
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
We can help you sale your home through your Owner Financing and help you find a buyer!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Friday, September 30, 2011
Thursday, September 29, 2011
The Justice Department is Not doing it's Job
Mortgage fraud up
Reports of possible mortgage fraud grew in the second quarter,
with financial institutions filing 29,558 mortgage loan fraud
suspicious activity reports, the Financial Crimes Enforcement
Network said Wednesday. That is up from 15,727 in the same
quarter of 2010. In the first quarter of 2011, suspicious
mortgage activity reports grew to 25,485 complaints. The surge
in SARs are coming as mortgage lenders sift through the paperwork
in past mortgages. Mortgage servicers remain under heavy scrutiny
following robo-signing allegations and continue to sift through
documents in order to make sure all ducks are in a row. Many of
the reported instances come from defaults, including borrowers
who wrongly presented information about their finances. The
FinCEN network, which works in tandem with the Treasury, said the
surge in activity is also tied to increasing mortgage repurchase
demands and other special filings. SARs are especially surging on
transactions that involve several financial institutions. FinCen
found that 81% of the suspicious activity was related to
circumstances that occurred before 2008. Sixty-three% involved
activities that occurred four or more years ago. "We’re
continuing to see a large number of SARs filed on activity that
occurred more than two years ago, an indication that financial
institutions are uncovering fraud as they sift through defaulted
mortgages," said FinCEN Director James Freis, Jr. "But we also
continue to see indications of ongoing mortgage fraud
activities," he added. "FinCEN’s report released today raises
awareness of the common scams that homeowners and lenders may
encounter when arranging or modifying home financing."
Reports of possible mortgage fraud grew in the second quarter,
with financial institutions filing 29,558 mortgage loan fraud
suspicious activity reports, the Financial Crimes Enforcement
Network said Wednesday. That is up from 15,727 in the same
quarter of 2010. In the first quarter of 2011, suspicious
mortgage activity reports grew to 25,485 complaints. The surge
in SARs are coming as mortgage lenders sift through the paperwork
in past mortgages. Mortgage servicers remain under heavy scrutiny
following robo-signing allegations and continue to sift through
documents in order to make sure all ducks are in a row. Many of
the reported instances come from defaults, including borrowers
who wrongly presented information about their finances. The
FinCEN network, which works in tandem with the Treasury, said the
surge in activity is also tied to increasing mortgage repurchase
demands and other special filings. SARs are especially surging on
transactions that involve several financial institutions. FinCen
found that 81% of the suspicious activity was related to
circumstances that occurred before 2008. Sixty-three% involved
activities that occurred four or more years ago. "We’re
continuing to see a large number of SARs filed on activity that
occurred more than two years ago, an indication that financial
institutions are uncovering fraud as they sift through defaulted
mortgages," said FinCEN Director James Freis, Jr. "But we also
continue to see indications of ongoing mortgage fraud
activities," he added. "FinCEN’s report released today raises
awareness of the common scams that homeowners and lenders may
encounter when arranging or modifying home financing."
Wednesday, September 28, 2011
UnEmployment - Unless you Fix This! The Housing Crisis will Never End...
Unless you fix the unemployment The Housing Market will never get fixed. You can make the mortgages cheap as you want but unless you are working you cannot buy a house.
Unemployment across the nation
For decades, the nation’s economic landscape consisted of a
prospering Sun Belt and a struggling Rust Belt. Since the
recession hit, though, that is no longer the case.
Unemployment remains high across much of the country — the national rate is 9.1% — but the regions have recovered at different speeds. The once-booming South, which entered the recession with the lowest unemployment rate in the nation, is now struggling with some of the highest rates, recent data from the Bureau of Labor Statistics show.
Several Southern states — including South
Carolina, whose 11.1% unemployment rate is the fourth highest in the nation — have higher unemployment rates than they did a year ago. Let me see? South Carolina is where the NLRB is in court trying to prohibit Boeing from Opening a new plant?
Unemployment in the South is now higher than it is in the Northeast and the Midwest, which include Rust Belt states
that were struggling even before the recession. The West has the highest unemployment in the nation. The collapse of the housing bubble left Nevada with the highest jobless rate, 13.4%, followed by California with 12.1%. Michigan has the third-highest rate, 11.2%, as a result of the longstanding woes of the American auto industry. Now, though, of the states with the 10 highest unemployment rates, six are in the South. The region, which relied heavily on manufacturing and construction, was hit hard by
the downturn.
Economists offer a variety of explanations for the
South’s performance. “For a long time we tended to outpace
the national average with regard to economic performance, and a lot of that was driven by, for lack of a better word, development and in-migration,” said Michael Chriszt, an assistant vice president of the Federal Reserve Bank of Atlanta’s research department. “That came to an abrupt halt, and it has not picked up.”
The reordering of the nation’s economic fortunes can be seen in the Brookings analysis, which found that many auto-producing metropolitan areas in the Great Lakes states are seeing modest gains in manufacturing that are helping them recover from their deep slump, while Sun Belt and Western states with sharp drops in home values are still suffering. The areas that have been hurt the least since the recession, the study said, rely on government, education or energy production. Places that were less buoyed by the housing bubble were less harmed when it burst.
In Pennsylvania, the analysis found, the Pittsburgh area — which is heavily reliant on education and health care — is weathering the downturn better than the Philadelphia area. In New York, areas around long-struggling upstate cities like Buffalo and Rochester are recovering faster by some measures than the New York City metropolitan area. And the rate of recovery in Rust Belt areas around Youngstown and Akron, two Ohio cities that were hit hard, has outpaced that of former boomtowns like Colorado Springs and Tucson. In a sign of how severe the downturn has been, the Brookings analysis found that only 16 of the nation’s
100 largest metropolitan areas have regained more than half of the jobs they lost during the recession.
So what happened in South Carolina? Richard Kaglic, a regional economist at the Federal Reserve Bank of Richmond, Va., said the state’s lingering troubles reflect what happened when its construction and manufacturing industries were hit hard by the recession. Mr. Kaglic, who is also a pilot, used an aviation metaphor to explain what he meant. “If your nose is high, if you’re climbing faster and your engine cuts out, you fall farther and it takes you a longer time to recover,” he said. “The conditions we experienced in late 2008, 2009, are as close as you come to an engine-out situation in the economy.” But Mr. Kaglic said that the recent return of manufacturing jobs was giving him hope, and that one reason for the high unemployment
rate was that more people were now seeking work. “I would look at it as our dreams are delayed,” he said, “rather than our dreams being denied.” But for How Long?
Until we get a President that is business friendly and tries to help business grow rather than punish success we will never turn the economy around.
Michael Mack
An American
Unemployment across the nation
For decades, the nation’s economic landscape consisted of a
prospering Sun Belt and a struggling Rust Belt. Since the
recession hit, though, that is no longer the case.
Unemployment remains high across much of the country — the national rate is 9.1% — but the regions have recovered at different speeds. The once-booming South, which entered the recession with the lowest unemployment rate in the nation, is now struggling with some of the highest rates, recent data from the Bureau of Labor Statistics show.
Several Southern states — including South
Carolina, whose 11.1% unemployment rate is the fourth highest in the nation — have higher unemployment rates than they did a year ago. Let me see? South Carolina is where the NLRB is in court trying to prohibit Boeing from Opening a new plant?
Unemployment in the South is now higher than it is in the Northeast and the Midwest, which include Rust Belt states
that were struggling even before the recession. The West has the highest unemployment in the nation. The collapse of the housing bubble left Nevada with the highest jobless rate, 13.4%, followed by California with 12.1%. Michigan has the third-highest rate, 11.2%, as a result of the longstanding woes of the American auto industry. Now, though, of the states with the 10 highest unemployment rates, six are in the South. The region, which relied heavily on manufacturing and construction, was hit hard by
the downturn.
Economists offer a variety of explanations for the
South’s performance. “For a long time we tended to outpace
the national average with regard to economic performance, and a lot of that was driven by, for lack of a better word, development and in-migration,” said Michael Chriszt, an assistant vice president of the Federal Reserve Bank of Atlanta’s research department. “That came to an abrupt halt, and it has not picked up.”
The reordering of the nation’s economic fortunes can be seen in the Brookings analysis, which found that many auto-producing metropolitan areas in the Great Lakes states are seeing modest gains in manufacturing that are helping them recover from their deep slump, while Sun Belt and Western states with sharp drops in home values are still suffering. The areas that have been hurt the least since the recession, the study said, rely on government, education or energy production. Places that were less buoyed by the housing bubble were less harmed when it burst.
In Pennsylvania, the analysis found, the Pittsburgh area — which is heavily reliant on education and health care — is weathering the downturn better than the Philadelphia area. In New York, areas around long-struggling upstate cities like Buffalo and Rochester are recovering faster by some measures than the New York City metropolitan area. And the rate of recovery in Rust Belt areas around Youngstown and Akron, two Ohio cities that were hit hard, has outpaced that of former boomtowns like Colorado Springs and Tucson. In a sign of how severe the downturn has been, the Brookings analysis found that only 16 of the nation’s
100 largest metropolitan areas have regained more than half of the jobs they lost during the recession.
So what happened in South Carolina? Richard Kaglic, a regional economist at the Federal Reserve Bank of Richmond, Va., said the state’s lingering troubles reflect what happened when its construction and manufacturing industries were hit hard by the recession. Mr. Kaglic, who is also a pilot, used an aviation metaphor to explain what he meant. “If your nose is high, if you’re climbing faster and your engine cuts out, you fall farther and it takes you a longer time to recover,” he said. “The conditions we experienced in late 2008, 2009, are as close as you come to an engine-out situation in the economy.” But Mr. Kaglic said that the recent return of manufacturing jobs was giving him hope, and that one reason for the high unemployment
rate was that more people were now seeking work. “I would look at it as our dreams are delayed,” he said, “rather than our dreams being denied.” But for How Long?
Until we get a President that is business friendly and tries to help business grow rather than punish success we will never turn the economy around.
Michael Mack
An American
Thursday, September 15, 2011
How Your Credit Score May Be Stealing Your Money
Burglars and purse snatchers have nothing on your credit score! A low score can be stealing money right out of your pocket every month. This can add up over time to hundreds of thousands of dollars.
Here's how:
Mortgage loans: Let's say you have a 650 credit score and bought a $200,000 house with a 30 year fixed rate loan. You are going to have to finance it at a rate 1-2% higher than the person rocking a 750 credit score. Over the course of 30 years (360 payments) this difference can add up to around $49,000!
Auto Loans: the average American trades cars every 5 years. Based on this estimate, a person buying a $25,000 car with a 650 credit score will pay approximately $5400 more for EACH CAR than the person with a 750 score.
Credit cards: a person with a 650 score has probably had some late payments and may have maxed out their credit cards. They will not get the great terms and plentiful options that a person with a higher score will enjoy. The average household carries $7300 in credit card debt (Yikes!). If we assume this amount, a person with the 650 credit score will pay $552 more in interest per year than a person with the 750 credit score.
Gulp.
So, if you have a 650 credit score, here's how much your credit score will steal from you over a 40 year period:
Mortgage: $49,000
Auto: $43,000
Credit Cards: $22,000
Total amount the 650 credit score has stolen:
$114,000
The figure would be much larger if this money had been invested in a mutual fund. At a 6% rate, this amount of money would have grown to about
half a million dollars.
Remember: protect yourself! Lock your doors, lock your windows, don't talk to strangers, and keep that credit score high!
From Data Facts
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
We can help you sale your home through your Owner Financing and help you find a buyer!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Here's how:
Mortgage loans: Let's say you have a 650 credit score and bought a $200,000 house with a 30 year fixed rate loan. You are going to have to finance it at a rate 1-2% higher than the person rocking a 750 credit score. Over the course of 30 years (360 payments) this difference can add up to around $49,000!
Auto Loans: the average American trades cars every 5 years. Based on this estimate, a person buying a $25,000 car with a 650 credit score will pay approximately $5400 more for EACH CAR than the person with a 750 score.
Credit cards: a person with a 650 score has probably had some late payments and may have maxed out their credit cards. They will not get the great terms and plentiful options that a person with a higher score will enjoy. The average household carries $7300 in credit card debt (Yikes!). If we assume this amount, a person with the 650 credit score will pay $552 more in interest per year than a person with the 750 credit score.
Gulp.
So, if you have a 650 credit score, here's how much your credit score will steal from you over a 40 year period:
Mortgage: $49,000
Auto: $43,000
Credit Cards: $22,000
Total amount the 650 credit score has stolen:
$114,000
The figure would be much larger if this money had been invested in a mutual fund. At a 6% rate, this amount of money would have grown to about
half a million dollars.
Remember: protect yourself! Lock your doors, lock your windows, don't talk to strangers, and keep that credit score high!
From Data Facts
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
We can help you sale your home through your Owner Financing and help you find a buyer!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Monday, September 5, 2011
US to sue Banks
The Federal Housing Finance Agency, which oversees the mortgage
giants Fannie Mae and Freddie Mac, is set to file suits against
more than a dozen big banks, accusing them of misrepresenting
the quality of mortgage securities they assembled and sold at
the height of the housing bubble, and seeking billions of
dollars in compensation.
The Federal Housing Finance Agency suits, which are expected to
be filed in the coming days in federal court, are aimed at Bank
of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank,
among others. The suits will argue the banks, which assembled
the mortgages and marketed them as securities to investors,
failed to perform the due diligence required under securities
law and missed evidence that borrowers’ incomes were inflated or
falsified. When many borrowers were unable to pay their
mortgages, the securities backed by the mortgages quickly lost
value. Fannie and Freddie lost more than $30 billion, in part as
a result of the deals, losses that were borne mostly by
taxpayers. In July, the agency filed suit against UBS, another
major mortgage securitizer, seeking to recover at least $900
million, and the individuals with knowledge of the case said the
new litigation would be similar in scope.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
We can help you sale your home through your Owner Financing and help you find a buyer!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
giants Fannie Mae and Freddie Mac, is set to file suits against
more than a dozen big banks, accusing them of misrepresenting
the quality of mortgage securities they assembled and sold at
the height of the housing bubble, and seeking billions of
dollars in compensation.
The Federal Housing Finance Agency suits, which are expected to
be filed in the coming days in federal court, are aimed at Bank
of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank,
among others. The suits will argue the banks, which assembled
the mortgages and marketed them as securities to investors,
failed to perform the due diligence required under securities
law and missed evidence that borrowers’ incomes were inflated or
falsified. When many borrowers were unable to pay their
mortgages, the securities backed by the mortgages quickly lost
value. Fannie and Freddie lost more than $30 billion, in part as
a result of the deals, losses that were borne mostly by
taxpayers. In July, the agency filed suit against UBS, another
major mortgage securitizer, seeking to recover at least $900
million, and the individuals with knowledge of the case said the
new litigation would be similar in scope.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
We can help you sale your home through your Owner Financing and help you find a buyer!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Wednesday, July 20, 2011
2011 Market is Getting Tougher
*Short Sale flips are tougher to do than ever.
There simply aren’t enough people who can get
bank loans to "cash you out" once you get your s
hort sale approval from the bank. Plus title
companies are very strict on disclosing back to
back flips to both the "A" and "C" lenders.
Anyone who’s an active short sale flipper
knows this is getting tougher to do.
*Rehab flips are tougher to do than ever. Title
problems and "robo-signing" scandals have tainted
the title to many properties and caused uncertainty
about the quality of title when buying an REO. Plus
end buyers for rehabs need bank loans and 28% of
them are being declined for loans.
*Buyers must have a 700+ credit score on average to
qualify for a FHA loan plus a down payment. This
means there are less buyer’s to "cash you out"
using FHA loans.
*Most leads that you will generate into your real
estate business will be houses with little or no
equity. So if you are an "equity" wholesaler you
will have trouble getting "equity" leads in 2011.
My prediction is that this is just 5% of the deals
I'll do in 2011.
*80 -100 million people – roughly 30% of our entire
population cannot qualify for a traditional bank loan.
Cool thing is there's a "golden opportunity" that's
been created because of tighter bank lending standards.
*Credit is tightening in the 2nd half of 2011, not
loosening, according to Inside Mortgage Finance magazine.
*11 million home owners have no equity according to CoreLogic.
*Another 16 million have very little equity.
They are 90% - 100% leveraged.
*52% of all HAMP loan modifications "fall out" within
6 months. Just ask Obama. He knows.
So where are the investment opportunities in 2nd half
of 2011? What can you do about this and still be a
successful investor in 2011?
Do you want to sell your home successfully in 2011?
The answer: Think out of the Box and go where the money is and diversify into
strategies that do not require banks at all. That is is if want to be successful at buying or selling!
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
We can help you sale your home through your Owner Financing and help you find a buyer!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
There simply aren’t enough people who can get
bank loans to "cash you out" once you get your s
hort sale approval from the bank. Plus title
companies are very strict on disclosing back to
back flips to both the "A" and "C" lenders.
Anyone who’s an active short sale flipper
knows this is getting tougher to do.
*Rehab flips are tougher to do than ever. Title
problems and "robo-signing" scandals have tainted
the title to many properties and caused uncertainty
about the quality of title when buying an REO. Plus
end buyers for rehabs need bank loans and 28% of
them are being declined for loans.
*Buyers must have a 700+ credit score on average to
qualify for a FHA loan plus a down payment. This
means there are less buyer’s to "cash you out"
using FHA loans.
*Most leads that you will generate into your real
estate business will be houses with little or no
equity. So if you are an "equity" wholesaler you
will have trouble getting "equity" leads in 2011.
My prediction is that this is just 5% of the deals
I'll do in 2011.
*80 -100 million people – roughly 30% of our entire
population cannot qualify for a traditional bank loan.
Cool thing is there's a "golden opportunity" that's
been created because of tighter bank lending standards.
*Credit is tightening in the 2nd half of 2011, not
loosening, according to Inside Mortgage Finance magazine.
*11 million home owners have no equity according to CoreLogic.
*Another 16 million have very little equity.
They are 90% - 100% leveraged.
*52% of all HAMP loan modifications "fall out" within
6 months. Just ask Obama. He knows.
So where are the investment opportunities in 2nd half
of 2011? What can you do about this and still be a
successful investor in 2011?
Do you want to sell your home successfully in 2011?
The answer: Think out of the Box and go where the money is and diversify into
strategies that do not require banks at all. That is is if want to be successful at buying or selling!
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
We can help you sale your home through your Owner Financing and help you find a buyer!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Friday, June 3, 2011
More Rental Homes are in Need
500 Cities show need for more Rental Homes
In the aftermath of the nation's housing-market collapse and
recession, more than 500 midsize and large cities have seen a
rise in the share of homes that are rented rather than owned,
according to a USA TODAY analysis of Census data. Almost 4
million homes have been lost to foreclosures in the past five
years, turning many former owner-occupied homes into rentals. The
shift to rental housing is potentially long-lasting and portends
changes for neighborhood stability and how people build wealth,
economists say. "The changes are big but glacial," says Mark
Zandi, economist at Moody's Analytics.
The swing from owner- to tenant-occupied homes in the past decade
has been dramatic in some places:
- Of the 100 largest cities, some of those with the largest
shifts were Irvine, Calif., which went from about 40% of occupied
homes rented in 2000 to 49.8% in 2010; Philadelphia, from 40.7%
to 45.9%; and Birmingham, Ala., 46.3% to 50.7%.
- Twenty-five cities — including Baltimore, Minneapolis, Salt
Lake City and Sacramento — swung from having more than half
homeowners in 2000 to majorities of renters in 2010. In one —
Reading, Pa. — 57.6% of occupied homes were rentals in 2010, up
from 49% in 2000.
- Florida, California and Arizona had the most cities where the
share of renter-occupied housing grew by at least 5 percentage
points. All three states have been hit hard by foreclosures.
Nationwide, 34.9% of occupied homes — including houses, condos,
and apartments — were rented in 2010, up from 33.8% in 2000.
The Census data that USA TODAY analyzed for cities covered only
housing within the cities' boundaries, not their much larger
metropolitan areas. Vacant properties, excluding seasonal or
vacation homes, accounted for 7.9% of U.S. housing units in 2010.
It's not clear how many of those have since become rentals or
owner-occupied homes. The renter household market remained
fairly stable from 1990 to 2006, says Daniel McCue, senior
research analyst at Harvard University's Joint Center for Housing
Studies. Since 2006, when housing prices peaked, the number of
renter households in the U.S. has grown an average of 692,000 a
year, while owner households have fallen an average of 201,000 a
year, Census surveys show.
Several factors will boost rental growth for years to come, Zandi
says, including continued foreclosures, continued drops in home
prices that frighten buyers and potential cuts to government
subsidies supporting homeownership. On the other hand, 74% of
renters think owning is superior to renting, said a recent survey
by mortgage giant Fannie Mae. "There's still a pull toward
homeownership, although it's been diminished," McCue says.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
In the aftermath of the nation's housing-market collapse and
recession, more than 500 midsize and large cities have seen a
rise in the share of homes that are rented rather than owned,
according to a USA TODAY analysis of Census data. Almost 4
million homes have been lost to foreclosures in the past five
years, turning many former owner-occupied homes into rentals. The
shift to rental housing is potentially long-lasting and portends
changes for neighborhood stability and how people build wealth,
economists say. "The changes are big but glacial," says Mark
Zandi, economist at Moody's Analytics.
The swing from owner- to tenant-occupied homes in the past decade
has been dramatic in some places:
- Of the 100 largest cities, some of those with the largest
shifts were Irvine, Calif., which went from about 40% of occupied
homes rented in 2000 to 49.8% in 2010; Philadelphia, from 40.7%
to 45.9%; and Birmingham, Ala., 46.3% to 50.7%.
- Twenty-five cities — including Baltimore, Minneapolis, Salt
Lake City and Sacramento — swung from having more than half
homeowners in 2000 to majorities of renters in 2010. In one —
Reading, Pa. — 57.6% of occupied homes were rentals in 2010, up
from 49% in 2000.
- Florida, California and Arizona had the most cities where the
share of renter-occupied housing grew by at least 5 percentage
points. All three states have been hit hard by foreclosures.
Nationwide, 34.9% of occupied homes — including houses, condos,
and apartments — were rented in 2010, up from 33.8% in 2000.
The Census data that USA TODAY analyzed for cities covered only
housing within the cities' boundaries, not their much larger
metropolitan areas. Vacant properties, excluding seasonal or
vacation homes, accounted for 7.9% of U.S. housing units in 2010.
It's not clear how many of those have since become rentals or
owner-occupied homes. The renter household market remained
fairly stable from 1990 to 2006, says Daniel McCue, senior
research analyst at Harvard University's Joint Center for Housing
Studies. Since 2006, when housing prices peaked, the number of
renter households in the U.S. has grown an average of 692,000 a
year, while owner households have fallen an average of 201,000 a
year, Census surveys show.
Several factors will boost rental growth for years to come, Zandi
says, including continued foreclosures, continued drops in home
prices that frighten buyers and potential cuts to government
subsidies supporting homeownership. On the other hand, 74% of
renters think owning is superior to renting, said a recent survey
by mortgage giant Fannie Mae. "There's still a pull toward
homeownership, although it's been diminished," McCue says.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Tuesday, May 31, 2011
Home Prices Fall Below 2009 Bottom
Home prices fell below the 2009 housing bust bottom in the first
quarter, dropping 4.2% from the prior three months, according to
the S&P Case-Shiller national home price index. The 20-city
composite index was at 138.16, falling below the 2009 low of
139.26. It was the third straight quarterly drop for the index,
which was down 5.1% from a year earlier. National prices are now
down 32.7% from their peak set five years ago. The
S&P/Case-Shiller national home price index covers 80% of the
housing market. "This month's report is marked by the
confirmation of a double-dip in home prices across much of the
nation," said David Blitzer, spokesman for Standard and Poor's.
The housing market went through a brief recovery period starting
in mid-2009.
Home prices recovered nearly 5% of their earlier losses. After
homebuyer tax credits, which were in effect during the rebound,
expired last April, the slump resumed. "The rebound in prices
seen in 2009 and 2010 was largely due to the first-time home
buyers tax credit," said Blitzer. "Excluding the results of that
policy, there has been no recovery or even stabilization in home
prices during or after the recent recession." A separate
S&P/Case-Shiller index covering 20 major cities also dropped
during March, its eighth straight monthly decline. This is the
second month of the post-recession double dip for the 20-city
index. Prices peaked in July 2006 and then fell steadily through
April 2009. They then went on a winning streak that ran through
last June and prices, adjusted for seasonal differences, have
plunged every month since.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
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quarter, dropping 4.2% from the prior three months, according to
the S&P Case-Shiller national home price index. The 20-city
composite index was at 138.16, falling below the 2009 low of
139.26. It was the third straight quarterly drop for the index,
which was down 5.1% from a year earlier. National prices are now
down 32.7% from their peak set five years ago. The
S&P/Case-Shiller national home price index covers 80% of the
housing market. "This month's report is marked by the
confirmation of a double-dip in home prices across much of the
nation," said David Blitzer, spokesman for Standard and Poor's.
The housing market went through a brief recovery period starting
in mid-2009.
Home prices recovered nearly 5% of their earlier losses. After
homebuyer tax credits, which were in effect during the rebound,
expired last April, the slump resumed. "The rebound in prices
seen in 2009 and 2010 was largely due to the first-time home
buyers tax credit," said Blitzer. "Excluding the results of that
policy, there has been no recovery or even stabilization in home
prices during or after the recent recession." A separate
S&P/Case-Shiller index covering 20 major cities also dropped
during March, its eighth straight monthly decline. This is the
second month of the post-recession double dip for the 20-city
index. Prices peaked in July 2006 and then fell steadily through
April 2009. They then went on a winning streak that ran through
last June and prices, adjusted for seasonal differences, have
plunged every month since.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Friday, May 20, 2011
Everybody's Looking for the Deal - Real Trac
A new study conducted by Trulia and RealtyTrac found that 56 percent of U.S. renters and 47 percent of current homeowners are at least “somewhat likely” to purchase a foreclosed home.
Along with having some concerns about hidden costs, a risky buying process, and still-declining home values, many potential buyers expect to save money if they buy a foreclosure. In fact, the companies’ survey found that on average, respondents expect to pay 38 percent less for a foreclosed home than a similar home that was not in foreclosure.
RealtyTrac says their expectations are not too far above the average discount of 36 percent it’s currently seeing on sales of bank-owned REO homes.
Ken Shuman, a spokesperson for Trulia, said, “According to our latest data, it is more affordable to buy a home than to rent in 78 percent of major U.S. cities. With concerns of rising inflation and the potential for rising interest rates, now is a good time for people to buy and we may not be in this environment for much longer.”
The Trulia-RealtyTrac survey also polled respondents on the federal government’s efforts to help struggling homeowners. Forty-five percent of those surveyed said the government is not doing enough to prevent foreclosures. Only 17 percent say too much is being done, while 16 per-
cent say they are doing the right amount and 22 percent were undecided.
The widespread prevalence of distressed homeowners facing foreclosures in today’s market is one reason why negative sentiment toward the government may be so high, according to the companies’ report.
Almost one-third (30 percent) of homeowners said they themselves have, or they know someone who has experienced trouble with their mortgage situation and applied for a loan modification, stopped making their payments, been foreclosed on, simply walked away, or sold their home through a short sale transaction.
As more cities across the nation experience double dips in home prices, more than half (54 percent) of those surveyed believe recovery in the housing market will not happen until 2014 or later.
In a previous survey conducted six months ago, 42 percent of American adults said they thought the market would turn around by 2012 or had already turned around. Now, only 23 percent continue to hold this sentiment.
“Most Americans, as our latest survey revealed, overestimated how quickly the housing market would bounce back, but when it does, it will likely be a long and gradual process,” said Pete Flint, co-founder and CEO of Trulia. “Looking at the recent double dips in home prices, I expect the rest of 2011 to be volatile for real estate….In my eyes, we have another 18 months until we start to see signs of price stability in the housing market.”
Trulia and RealtyTrac have regularly conducted these surveys since 2008 to track consumers’ attitudes toward foreclosed homes and the housing market recovery.
“Our survey reflects a growing perception among potential homebuyers that the housing recovery is still a long way off,” commented Rick Sharga, RealtyTrac SVP. “Demand remains weak, loans are increasingly difficult to qualify for, and the shadow inventory of several million distressed properties is weighing down the market. All of these things need to improve before housing can recover.”
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Along with having some concerns about hidden costs, a risky buying process, and still-declining home values, many potential buyers expect to save money if they buy a foreclosure. In fact, the companies’ survey found that on average, respondents expect to pay 38 percent less for a foreclosed home than a similar home that was not in foreclosure.
RealtyTrac says their expectations are not too far above the average discount of 36 percent it’s currently seeing on sales of bank-owned REO homes.
Ken Shuman, a spokesperson for Trulia, said, “According to our latest data, it is more affordable to buy a home than to rent in 78 percent of major U.S. cities. With concerns of rising inflation and the potential for rising interest rates, now is a good time for people to buy and we may not be in this environment for much longer.”
The Trulia-RealtyTrac survey also polled respondents on the federal government’s efforts to help struggling homeowners. Forty-five percent of those surveyed said the government is not doing enough to prevent foreclosures. Only 17 percent say too much is being done, while 16 per-
cent say they are doing the right amount and 22 percent were undecided.
The widespread prevalence of distressed homeowners facing foreclosures in today’s market is one reason why negative sentiment toward the government may be so high, according to the companies’ report.
Almost one-third (30 percent) of homeowners said they themselves have, or they know someone who has experienced trouble with their mortgage situation and applied for a loan modification, stopped making their payments, been foreclosed on, simply walked away, or sold their home through a short sale transaction.
As more cities across the nation experience double dips in home prices, more than half (54 percent) of those surveyed believe recovery in the housing market will not happen until 2014 or later.
In a previous survey conducted six months ago, 42 percent of American adults said they thought the market would turn around by 2012 or had already turned around. Now, only 23 percent continue to hold this sentiment.
“Most Americans, as our latest survey revealed, overestimated how quickly the housing market would bounce back, but when it does, it will likely be a long and gradual process,” said Pete Flint, co-founder and CEO of Trulia. “Looking at the recent double dips in home prices, I expect the rest of 2011 to be volatile for real estate….In my eyes, we have another 18 months until we start to see signs of price stability in the housing market.”
Trulia and RealtyTrac have regularly conducted these surveys since 2008 to track consumers’ attitudes toward foreclosed homes and the housing market recovery.
“Our survey reflects a growing perception among potential homebuyers that the housing recovery is still a long way off,” commented Rick Sharga, RealtyTrac SVP. “Demand remains weak, loans are increasingly difficult to qualify for, and the shadow inventory of several million distressed properties is weighing down the market. All of these things need to improve before housing can recover.”
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Wednesday, May 18, 2011
More Underwater as Home Values Post Sharpest Drop Since 2008: Zillow
Home values in the United States fell faster in the first
quarter of 2011 than they have in any quarter since 2008,
when the housing market experienced its worst performance,
according to a new report from Zillow.
The Seattle-based company’s index of residential property
values fell 3 percent nationally during the first three
months of this year when compared to the fourth quarter of
2010.
As a result, negative equity hit a new high-water mark by
the end of the first quarter, with 28.4 percent of
homeowners with mortgages owing more on the loan than their
home is worth, Zillow said. The company’s underwater ratio
is up from 27 percent in the fourth quarter of 2010.
Zillow’s first-quarter index reading of home values came in
at $169,600, 8.2 percent below where it was a year earlier.
The company says home values have fallen 29.5 percent since
they peaked in June 2006.
Meanwhile, foreclosures rose throughout the first quarter as
banks unfroze moratoriums and allowed foreclosures to
resume. Foreclosures had fallen in late 2010 due to the slew
of temporary suspensions brought about by the “robo-signing”
controversy.
But by March, Zillow says activity had picked up once again,
with one out of every 1,000 homes in the country lost to
foreclosure during the month.
With the substantial home value declines, as well as
increasing negative equity and foreclosures, Zillow says it
is unlikely that home values will reach a bottom in 2011.
First-quarter data has prompted Zillow to revise its
forecast, now predicting a bottom in 2012 “at the earliest.”
“Home value declines are currently equal to those we
experienced during the darkest days of the housing
recession,” said Dr. Stan Humphries, chief economist for
Zillow. “With accelerating declines during the first
quarter, it is unreasonable to expect home values to return
to stability by the end of 2011.”
Humphries says he did expect a “substantial payback” from
the federal government’s homebuyer tax credit initiative,
which buoyed the housing market last year. But he warns that
diminished demand post-tax credit, as well as rising
foreclosures and high negative equity rates “make it almost
certain that we won’t see a bottom in home values until 2012
or later.”
Zillow says very few markets were exempt from home value
declines in the first quarter. Ninety-seven percent of the
132 markets covered by Zillow logged home value declines.
Only the Fort Myers, Florida; Champaign-Urbana, Illinois;
and Honolulu, Hawaii metro areas experienced quarterly
increases, with home values rising 2.4 percent, 0.8 percent,
and 0.3 percent, respectively. Home values in the Sarasota,
Florida metro remained flat.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
quarter of 2011 than they have in any quarter since 2008,
when the housing market experienced its worst performance,
according to a new report from Zillow.
The Seattle-based company’s index of residential property
values fell 3 percent nationally during the first three
months of this year when compared to the fourth quarter of
2010.
As a result, negative equity hit a new high-water mark by
the end of the first quarter, with 28.4 percent of
homeowners with mortgages owing more on the loan than their
home is worth, Zillow said. The company’s underwater ratio
is up from 27 percent in the fourth quarter of 2010.
Zillow’s first-quarter index reading of home values came in
at $169,600, 8.2 percent below where it was a year earlier.
The company says home values have fallen 29.5 percent since
they peaked in June 2006.
Meanwhile, foreclosures rose throughout the first quarter as
banks unfroze moratoriums and allowed foreclosures to
resume. Foreclosures had fallen in late 2010 due to the slew
of temporary suspensions brought about by the “robo-signing”
controversy.
But by March, Zillow says activity had picked up once again,
with one out of every 1,000 homes in the country lost to
foreclosure during the month.
With the substantial home value declines, as well as
increasing negative equity and foreclosures, Zillow says it
is unlikely that home values will reach a bottom in 2011.
First-quarter data has prompted Zillow to revise its
forecast, now predicting a bottom in 2012 “at the earliest.”
“Home value declines are currently equal to those we
experienced during the darkest days of the housing
recession,” said Dr. Stan Humphries, chief economist for
Zillow. “With accelerating declines during the first
quarter, it is unreasonable to expect home values to return
to stability by the end of 2011.”
Humphries says he did expect a “substantial payback” from
the federal government’s homebuyer tax credit initiative,
which buoyed the housing market last year. But he warns that
diminished demand post-tax credit, as well as rising
foreclosures and high negative equity rates “make it almost
certain that we won’t see a bottom in home values until 2012
or later.”
Zillow says very few markets were exempt from home value
declines in the first quarter. Ninety-seven percent of the
132 markets covered by Zillow logged home value declines.
Only the Fort Myers, Florida; Champaign-Urbana, Illinois;
and Honolulu, Hawaii metro areas experienced quarterly
increases, with home values rising 2.4 percent, 0.8 percent,
and 0.3 percent, respectively. Home values in the Sarasota,
Florida metro remained flat.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Tuesday, May 17, 2011
Commercial Real Estate Hurting Small Banks
The delinquency rate on commercial mortgage-backed securities hit
a record 9.62% in April, according to a report by Trepp, a firm
that tracks commercial real estate and banking data. Analysts
expect that to rise above 10% by year end. On the bright side,
that forecast marks a slight improvement over prior estimates
that cmaxalled for defaults to top 12%. The bulk of the rising
delinquencies are falling squarely on the shoulders of small and
regional banks, forcing dozens to close. Thirteen banks failed
in April, with nearly all them heavily exposed to commercial real
estate. It's a familiar pattern that U.S. regulators say they've
been observing for several months.
Small to regional banks -- defined as banks holding less than
$100 billion in assets -- have $784 billion in commercial real
estate loans on their books, according to the Independent
Community Bankers Association of America. That's about 71% of the
total market. At the height of the bubble, small-to-midsized
banks underwrote more than $200 billion in risky land and
construction loans, where the collateral on the loan wasn't
office space but vacant land or incomplete construction sites.
Among the 13 banks shut down last month, commercial real estate
loans made up 79% of their non-performing loans, defined as loans
in default or close to default. Non-performing residential real
estate loans made up only 15% of those loan portfolios. For
example, Cortez Community Bank in Florida, which was shuttered by
the FDIC on April 29, had 76% of its loans in commercial real
estate. Another failed bank, Nexity Bank of Alabama, had a loan
portfolio that was 87% commercial real estate loans.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
a record 9.62% in April, according to a report by Trepp, a firm
that tracks commercial real estate and banking data. Analysts
expect that to rise above 10% by year end. On the bright side,
that forecast marks a slight improvement over prior estimates
that cmaxalled for defaults to top 12%. The bulk of the rising
delinquencies are falling squarely on the shoulders of small and
regional banks, forcing dozens to close. Thirteen banks failed
in April, with nearly all them heavily exposed to commercial real
estate. It's a familiar pattern that U.S. regulators say they've
been observing for several months.
Small to regional banks -- defined as banks holding less than
$100 billion in assets -- have $784 billion in commercial real
estate loans on their books, according to the Independent
Community Bankers Association of America. That's about 71% of the
total market. At the height of the bubble, small-to-midsized
banks underwrote more than $200 billion in risky land and
construction loans, where the collateral on the loan wasn't
office space but vacant land or incomplete construction sites.
Among the 13 banks shut down last month, commercial real estate
loans made up 79% of their non-performing loans, defined as loans
in default or close to default. Non-performing residential real
estate loans made up only 15% of those loan portfolios. For
example, Cortez Community Bank in Florida, which was shuttered by
the FDIC on April 29, had 76% of its loans in commercial real
estate. Another failed bank, Nexity Bank of Alabama, had a loan
portfolio that was 87% commercial real estate loans.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you. Commercial Property Too!
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Thursday, May 5, 2011
Home Prices Have Double Dipped
Home prices nationwide have double dipped, with prices plunging below their March 2009 bottom, the Clear Capital research firm reports.
The company's monthly Home Data Index shows home prices double dipping 0.7 percent below the previous record low set in March 2009.
Sales of bank-owned (REO) properties hit 34.5 percent of the market, helping to send quarterly home prices down 4.9 percent and 5.0 percent when compared with March 2010.
National home prices have fallen 11.5 percent in the past nine months, a rate not seen since 2008.
"With more than one-third of national home sales being REO (bank owned), market prices are being weighed down, as many markets have not regained enough footing to withstand the strain of the high proportion of REO sales," says Clear Capital's Alex Villacorta, according to CNBC.
Looking forward, market watchers will play close attention to the index in spring — a more-active buying season — to see if organic demand for housing can push the index back into growth territory.
"In light of the compounding effects of winter’s seasonal slowdown and increased distressed sale activity, the market now faces the true test of whether prices can rebound in the historically active spring season," Villacorta says, this time according to Housing Wire, a financial news service for the mortgage industry.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
The company's monthly Home Data Index shows home prices double dipping 0.7 percent below the previous record low set in March 2009.
Sales of bank-owned (REO) properties hit 34.5 percent of the market, helping to send quarterly home prices down 4.9 percent and 5.0 percent when compared with March 2010.
National home prices have fallen 11.5 percent in the past nine months, a rate not seen since 2008.
"With more than one-third of national home sales being REO (bank owned), market prices are being weighed down, as many markets have not regained enough footing to withstand the strain of the high proportion of REO sales," says Clear Capital's Alex Villacorta, according to CNBC.
Looking forward, market watchers will play close attention to the index in spring — a more-active buying season — to see if organic demand for housing can push the index back into growth territory.
"In light of the compounding effects of winter’s seasonal slowdown and increased distressed sale activity, the market now faces the true test of whether prices can rebound in the historically active spring season," Villacorta says, this time according to Housing Wire, a financial news service for the mortgage industry.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Thursday, April 14, 2011
Big Banks Get Foreclosure Orders
Regulators Detail Steps Lenders Must Take to Revamp Processes; Fines Are Still to Come
In a Wall Street Journal Article posted today U.S. regulators hit the nation's largest banks with a first round of sweeping penalties for improper home-foreclosure practices, issuing detailed orders to revamp the way they deal with troubled borrowers.
The orders issued on Wednesday to 14 financial institutions didn't include fines. Officials said they are coming.
"There will be civil money penalties; the question is timing and amount. But we're not letting that clock run forever," Acting Comptroller of the Currency John Walsh told reporters. The orders were issued by his office, the Federal Reserve and the Office of Thrift Supervision.
The bank regulators' action came as Obama administration officials and representatives of state attorneys general met with the bank representatives in an ongoing effort to reach a broader deal over alleged mortgage-servicing abuses, which brought foreclosures to a near halt last fall. All sides want a settlement that can resolve the issue so foreclosures can proceed again, which could help the sickly housing market.
Some attorneys general and administration officials have pushed for banks to pay more than $20 billion in civil fines or to devote a comparable amount to modifying mortgages held by distressed borrowers.
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Several officials said the regulators' action wouldn't undermine the broader settlement talks. "This doesn't change what we are doing," said Iowa Attorney General Tom Miller in an interview. Mr. Miller, who is spearheading the 50-state investigation, said, "We are moving ahead full speed."
Outside observers said the orders could make it harder for state attorneys general to extract greater concessions from the banks.
"The biggest stick in this fight just settled, so there's going to be a lot less pressure on the banks to agree to a radical resolution to resolve the state complaints," said Jaret Seiberg, an analyst in Washington with MF Global.
Mark Zandi, chief economist at Moody's Analytics, said the agreement appears to require only "modest changes" to banks' foreclosure process and is unlikely to have a big impact on the housing market or broader economy. Still, Mr. Zandi added, "the foreclosure process will remain bogged down and a true bottom in the housing market elusive" until the banks reach a complete settlement with the state attorneys general.
Bank executives said the changes ordered would be anything but modest. "It's very demanding and there is a lot that we have to do," said one bank official. "It will be fairly expensive and a big resource drain."
The regulators issued the orders to the nation's four largest banks—Bank of America Corp., Wells Fargo & Co., J.P. Morgan Chase & Co. and Citigroup Inc. Also receiving orders were Ally Financial Inc., HSBC Holdings PLC, MetLife Inc., PNC Financial Services Group Inc., SunTrust Banks Inc., U.S. Bancorp, Aurora Bank, EverBank, OneWest Bank and Sovereign Bank.
Bank of America, Wells Fargo, J.P. Morgan and Citigroup were ordered to revamp mortgage-lending practices.
Under the orders, banks have 60 days to establish plans to clean up their mortgage-servicing processes to prevent documentation errors.
The orders also direct banks to take steps to ensure they have enough staff to handle the flood of foreclosures, that foreclosures don't happen when a borrower is receiving a loan modification and that borrowers have a single point of contact throughout the loan-modification and foreclosure process.
Banks must hire an independent consultant to conduct a "look back" of all foreclosure proceedings from 2009 and 2010 to evaluate whether they improperly foreclosed on any homeowners and require each company to establish its own process to consider whether to compensate borrowers who have been harmed.
Critics, including other regulators, believe this process and other aspects of the orders leave too much discretion to banks.
J.P. Morgan, in a statement, acknowledged that the consent orders "are targeted directly at weaknesses in our processes and controls." The New York bank took a charge of $1.1 billion in the first quarter to reflect higher mortgage-servicing costs that resulted from a string of new regulations enacted after the financial crisis.
Other banks said many of the required changes already are under way. "This is an unprecedented measure and a tough message to take, but it will make mortgage servicing practices better across the board," Wells Fargo said. The San Francisco bank said it already has taken numerous actions to address the issues, including hiring 10,000 employees since 2009 to deal with foreclosure issues.
PNC Financial Services sought to distance itself from the industry's mess, saying that it represents just 1.5% of the mortgage-servicing business. A spokesman for the Pittsburgh bank said that its internal review had determined that the bank didn't foreclose on customers without a "valid reason or appropriate documents."
Even before the orders became public, critics charged that the bank regulators were letting servicers off too easy and were undercutting the broader talks.
The OCC, which has been the target of most criticism, defended the enforcement orders. "They require substantial corrective actions," Mr. Walsh said. "The banks are going to have to do substantial work, bear substantial expense to fix the problems that we identified" as well as to identify and compensate homeowners that suffered financial harm.
The Federal Deposit Insurance Corp. in a statement called the orders "only a first step" and declared its full support for the broader talks. "The enforcement orders announced [Wednesday] complement, rather than pre-empt or impede, this ongoing collaboration," it said.
By VICTORIA MCGRANE, ALAN ZIBEL and ROBIN SIDEL —Ruth Simon contributed to this article.
http://online.wsj.com/article/SB10001424052748703551304576260952761726790.html?mod=WSJ_RealEstate_LeftTopNews
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
In a Wall Street Journal Article posted today U.S. regulators hit the nation's largest banks with a first round of sweeping penalties for improper home-foreclosure practices, issuing detailed orders to revamp the way they deal with troubled borrowers.
The orders issued on Wednesday to 14 financial institutions didn't include fines. Officials said they are coming.
"There will be civil money penalties; the question is timing and amount. But we're not letting that clock run forever," Acting Comptroller of the Currency John Walsh told reporters. The orders were issued by his office, the Federal Reserve and the Office of Thrift Supervision.
The bank regulators' action came as Obama administration officials and representatives of state attorneys general met with the bank representatives in an ongoing effort to reach a broader deal over alleged mortgage-servicing abuses, which brought foreclosures to a near halt last fall. All sides want a settlement that can resolve the issue so foreclosures can proceed again, which could help the sickly housing market.
Some attorneys general and administration officials have pushed for banks to pay more than $20 billion in civil fines or to devote a comparable amount to modifying mortgages held by distressed borrowers.
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Several officials said the regulators' action wouldn't undermine the broader settlement talks. "This doesn't change what we are doing," said Iowa Attorney General Tom Miller in an interview. Mr. Miller, who is spearheading the 50-state investigation, said, "We are moving ahead full speed."
Outside observers said the orders could make it harder for state attorneys general to extract greater concessions from the banks.
"The biggest stick in this fight just settled, so there's going to be a lot less pressure on the banks to agree to a radical resolution to resolve the state complaints," said Jaret Seiberg, an analyst in Washington with MF Global.
Mark Zandi, chief economist at Moody's Analytics, said the agreement appears to require only "modest changes" to banks' foreclosure process and is unlikely to have a big impact on the housing market or broader economy. Still, Mr. Zandi added, "the foreclosure process will remain bogged down and a true bottom in the housing market elusive" until the banks reach a complete settlement with the state attorneys general.
Bank executives said the changes ordered would be anything but modest. "It's very demanding and there is a lot that we have to do," said one bank official. "It will be fairly expensive and a big resource drain."
The regulators issued the orders to the nation's four largest banks—Bank of America Corp., Wells Fargo & Co., J.P. Morgan Chase & Co. and Citigroup Inc. Also receiving orders were Ally Financial Inc., HSBC Holdings PLC, MetLife Inc., PNC Financial Services Group Inc., SunTrust Banks Inc., U.S. Bancorp, Aurora Bank, EverBank, OneWest Bank and Sovereign Bank.
Bank of America, Wells Fargo, J.P. Morgan and Citigroup were ordered to revamp mortgage-lending practices.
Under the orders, banks have 60 days to establish plans to clean up their mortgage-servicing processes to prevent documentation errors.
The orders also direct banks to take steps to ensure they have enough staff to handle the flood of foreclosures, that foreclosures don't happen when a borrower is receiving a loan modification and that borrowers have a single point of contact throughout the loan-modification and foreclosure process.
Banks must hire an independent consultant to conduct a "look back" of all foreclosure proceedings from 2009 and 2010 to evaluate whether they improperly foreclosed on any homeowners and require each company to establish its own process to consider whether to compensate borrowers who have been harmed.
Critics, including other regulators, believe this process and other aspects of the orders leave too much discretion to banks.
J.P. Morgan, in a statement, acknowledged that the consent orders "are targeted directly at weaknesses in our processes and controls." The New York bank took a charge of $1.1 billion in the first quarter to reflect higher mortgage-servicing costs that resulted from a string of new regulations enacted after the financial crisis.
Other banks said many of the required changes already are under way. "This is an unprecedented measure and a tough message to take, but it will make mortgage servicing practices better across the board," Wells Fargo said. The San Francisco bank said it already has taken numerous actions to address the issues, including hiring 10,000 employees since 2009 to deal with foreclosure issues.
PNC Financial Services sought to distance itself from the industry's mess, saying that it represents just 1.5% of the mortgage-servicing business. A spokesman for the Pittsburgh bank said that its internal review had determined that the bank didn't foreclose on customers without a "valid reason or appropriate documents."
Even before the orders became public, critics charged that the bank regulators were letting servicers off too easy and were undercutting the broader talks.
The OCC, which has been the target of most criticism, defended the enforcement orders. "They require substantial corrective actions," Mr. Walsh said. "The banks are going to have to do substantial work, bear substantial expense to fix the problems that we identified" as well as to identify and compensate homeowners that suffered financial harm.
The Federal Deposit Insurance Corp. in a statement called the orders "only a first step" and declared its full support for the broader talks. "The enforcement orders announced [Wednesday] complement, rather than pre-empt or impede, this ongoing collaboration," it said.
By VICTORIA MCGRANE, ALAN ZIBEL and ROBIN SIDEL —Ruth Simon contributed to this article.
http://online.wsj.com/article/SB10001424052748703551304576260952761726790.html?mod=WSJ_RealEstate_LeftTopNews
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Tuesday, April 12, 2011
Foreclosure fraud: The homeowner nightmares continue
FORTUNE — Over the past several months regulators have finally noticed what consumer attorneys have been saying for years: the big banks have routinely committed fraud in their foreclosure filings and their records of how much people owe are too often wrong. And the mortgage modification process, which was meant to help homeowners, has been exposed as an abject failure.
Salvageable mortgages are being foreclosed because the banks, wearing their “mortgage servicer” hats, find it more profitable to foreclose than modify loans. And even when the banks sincerely try to modify loans, they often seem incompetent.
In early March, a settlement proposal surfaced claiming to represent what the 50 states’ attorneys general think the big banks should do to fix the problems. Although not all of the AGs are in agreement yet – some think it’s too harsh and others too weak – it was the first peek inside the settlement negotiations. The proposal mostly amounted to saying “thou shalt obey the law and not abuse borrowers.” One term was “sworn statements shall not contain information that is false or unsubstantiated.” That is, “Thou shalt not commit perjury.”
Given how basic the term sheet was, it was hard to imagine how the big banks could make a good faith counter-proposal that was significantly weaker. And yet a recently leaked document shows they did.
The banks’ counter-proposal, dated March 28th, rewrites the “banks can’t commit perjury” term as the banks “shall implement processes reasonably designed to ensure the factual assertions made in…sworn statements…are accurate and complete…” and “sworn statements shall not contain information that is false or unsubstantiated in any material respect.”
Translation: It’s not perjury if we make a reasonable effort not to lie under oath and we don’t consider the lie to be important.
What kind of lie in a sworn statement isn’t “material?” What about a small detail, like the date? Well, consider documents Bank of America and Wells Fargo filed in a case brought by homeowners in Hawaii — the securitized trusts trying to foreclose on the loans were supposedly given the mortgages before the trusts existed. Are those dates material?
Wells Fargo, responding to a request for comment, did not address the impossible date issue: “The borrowers lost their home following a protracted judicial foreclosure, the issues raised in their petition [i.e. the claim that documents were fraudulent] were argued and ruled upon by the courts twice already and the most recent petition was actually denied by the Hawaii Supreme Court on March 17.” Bank of America (BAC) did not respond to a request for comment. The attorney for the homeowners, Gary Victor Dubin, disputes Wells Fargo’s (WFC) characterization.
Bottom line: Wells filed a document to give a trust a mortgage before the trust existed. Would the banks’ proposed settlement language make that okay?
Or perhaps the banks are suggesting that they could be wrong about precisely how much a borrower owes. If the borrower is in default, they might say, we’re right to foreclose. Does it really matter if our math is precisely correct? Well, yes. For starters, the bad math might mean the borrower shouldn’t be facing foreclosure.
For example, the Matthews family of Missouri would not be facing foreclosure if JPMorgan Chase (JPM) hadn’t collected some $3,000 for an insurance policy the Matthews didn’t need — the Matthews already had insurance — and if Chase’s computer system would acknowledge the Matthews’ payment should be $1,216, not the $1,611 Chase started charging to pay for the insurance.
When asked about the Matthews’ account, a Chase spokesman responded: “The customer’s account has been corrected, reducing the payment back to the proper amount, and we are reaching out to the customer to resolve the past issues. In the meantime we will amend her credit and remove foreclosure actions from her record.” However, the Matthews countered that it remained unresolved.
Again, the bottom line: Chase’s computer system had the wrong payment in place and that caused the Matthews to face foreclosure wrongly.
A mess of records
Like the language regarding perjury, the attorneys general and the banks have a different view of the banks’ need to keep accurate records of what people owe. The attorneys’ general term sheet says the banks “…shall maintain procedures to ensure the accuracy and timely updating of borrowers’ account information…” The banks’ counter offer again inserts the weasel words “reasonably designed,” as in “procedures reasonably designed to ensure accuracy…”
One theme running through the banks’ counter proposal is their unwillingness to be responsible for their employees’ actions.
For example, the AG term sheet flatly says “Servicer’s employees shall not instruct, advise or recommend that borrowers go into default in order to qualify for [a mortgage modification].” The banks’ counter offer says “Servicer shall instruct its employees not to advise …”
Inserting that “shall instruct” is all about plausible deniability: Look, we told our employees not to tell borrowers to default, who cares if we were winking and nodding when we told them that?
Telling people to default before a modification can be considered is insidious, because it triggers many preventable foreclosures. As it is, during trial modifications when the borrowers promptly make the full, modified payment — the only payment they’re supposed to make — the banks consider the payment late because it’s less than the original amount, and charge a late fee. If the borrower is already three months delinquent when he starts the mortgage modification, the fees have grown so much that the borrower ends up in a big hole.
The bank then starts on the foreclosure path while considering the modification — the so-called “Dual Track” — and the borrower ends up foreclosed on.
I’ve spoken to many borrowers who were told to default. Most recently, I’ve been chatting with Joe, a homeowner in Georgia who works in the financial industry. Joe and his family have been struggling with SunTrust Bank (STI) since 2009. At that time, they wanted to refinance their house. The couple’s credit was stellar, rates were low, they had a long and deep relationship with the bank, and they were willing to pay closing costs. Seemed like a no-brainer.
Unfortunately they owed more than the house was worth, so the bank wouldn’t do the deal. Instead, in January 2010 the bank told him to seek a mortgage modification. When an appropriate program became available in July, Joe submitted his application package. But SunTrust didn’t reply at all until December, and in January 2011, it told him he didn’t qualify for a modification because he was still current on his mortgage.
Meanwhile, the family blew through their life savings. Joe’s income was reduced, his wife fell ill and could no longer work, and her medications were expensive. But they stayed current on their mortgage through December 2010.
Despite that heroic effort to stay current, Joe is now facing foreclosure. The bank told him to default in January, and it’s now made a modification offer that reduces his payment by a mere $250 a month — not enough for him to be able to save his house, and half of what he could have saved by doing the 2009 refi. And if the refi had gone through, they would still have their life savings, and their credit would still be great.
Joe has asked SunTrust to explain its math in calculating what kind of modification he qualifies for, but it refused. The AG proposal would solve this problem, but the banks’ counteroffer wouldn’t. In fact, most recently, SunTrust demanded that Joe give it some $7,000 — three months of trial payments. But SunTrust wouldn’t tell him how the money would be applied, whether for fees, principal, or interest, until it decided — if it decided — at the end of that time to give him a permanent modification. Nor would it tell him what the terms of a permanent offer would be if it were made. SunTrust refused to put anything in writing. Joe wouldn’t pay on that basis, of course.
Joe recorded his conversations with SunTrust, which he shared with Fortune. SunTrust said: “While we are not at liberty to discuss a specific client relationship or our internal policies and procedures, generally speaking we work with clients on a case-by-case basis regarding potential loan modifications taking into account investor guidelines and the fact that every situation is different.”
The AGs must not lose sight of people like Joe, a former marine who served during the first Gulf War, and condemn troubled borrowers as unsympathetic “deadbeats.” The banks are relying on that stereotype to carry the day for them.
If the banks won’t deal, throw the book at them. Just like it’s been thrown at baseball great Barry Bonds for his comparatively trivial alleged perjury. If we can prosecute Bonds but not the banks, what kind of country are we?
http://finance.fortune.cnn.com/2011/04/07/foreclosure-fraud-the-homeowner-nightmares-continue/
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Salvageable mortgages are being foreclosed because the banks, wearing their “mortgage servicer” hats, find it more profitable to foreclose than modify loans. And even when the banks sincerely try to modify loans, they often seem incompetent.
In early March, a settlement proposal surfaced claiming to represent what the 50 states’ attorneys general think the big banks should do to fix the problems. Although not all of the AGs are in agreement yet – some think it’s too harsh and others too weak – it was the first peek inside the settlement negotiations. The proposal mostly amounted to saying “thou shalt obey the law and not abuse borrowers.” One term was “sworn statements shall not contain information that is false or unsubstantiated.” That is, “Thou shalt not commit perjury.”
Given how basic the term sheet was, it was hard to imagine how the big banks could make a good faith counter-proposal that was significantly weaker. And yet a recently leaked document shows they did.
The banks’ counter-proposal, dated March 28th, rewrites the “banks can’t commit perjury” term as the banks “shall implement processes reasonably designed to ensure the factual assertions made in…sworn statements…are accurate and complete…” and “sworn statements shall not contain information that is false or unsubstantiated in any material respect.”
Translation: It’s not perjury if we make a reasonable effort not to lie under oath and we don’t consider the lie to be important.
What kind of lie in a sworn statement isn’t “material?” What about a small detail, like the date? Well, consider documents Bank of America and Wells Fargo filed in a case brought by homeowners in Hawaii — the securitized trusts trying to foreclose on the loans were supposedly given the mortgages before the trusts existed. Are those dates material?
Wells Fargo, responding to a request for comment, did not address the impossible date issue: “The borrowers lost their home following a protracted judicial foreclosure, the issues raised in their petition [i.e. the claim that documents were fraudulent] were argued and ruled upon by the courts twice already and the most recent petition was actually denied by the Hawaii Supreme Court on March 17.” Bank of America (BAC) did not respond to a request for comment. The attorney for the homeowners, Gary Victor Dubin, disputes Wells Fargo’s (WFC) characterization.
Bottom line: Wells filed a document to give a trust a mortgage before the trust existed. Would the banks’ proposed settlement language make that okay?
Or perhaps the banks are suggesting that they could be wrong about precisely how much a borrower owes. If the borrower is in default, they might say, we’re right to foreclose. Does it really matter if our math is precisely correct? Well, yes. For starters, the bad math might mean the borrower shouldn’t be facing foreclosure.
For example, the Matthews family of Missouri would not be facing foreclosure if JPMorgan Chase (JPM) hadn’t collected some $3,000 for an insurance policy the Matthews didn’t need — the Matthews already had insurance — and if Chase’s computer system would acknowledge the Matthews’ payment should be $1,216, not the $1,611 Chase started charging to pay for the insurance.
When asked about the Matthews’ account, a Chase spokesman responded: “The customer’s account has been corrected, reducing the payment back to the proper amount, and we are reaching out to the customer to resolve the past issues. In the meantime we will amend her credit and remove foreclosure actions from her record.” However, the Matthews countered that it remained unresolved.
Again, the bottom line: Chase’s computer system had the wrong payment in place and that caused the Matthews to face foreclosure wrongly.
A mess of records
Like the language regarding perjury, the attorneys general and the banks have a different view of the banks’ need to keep accurate records of what people owe. The attorneys’ general term sheet says the banks “…shall maintain procedures to ensure the accuracy and timely updating of borrowers’ account information…” The banks’ counter offer again inserts the weasel words “reasonably designed,” as in “procedures reasonably designed to ensure accuracy…”
One theme running through the banks’ counter proposal is their unwillingness to be responsible for their employees’ actions.
For example, the AG term sheet flatly says “Servicer’s employees shall not instruct, advise or recommend that borrowers go into default in order to qualify for [a mortgage modification].” The banks’ counter offer says “Servicer shall instruct its employees not to advise …”
Inserting that “shall instruct” is all about plausible deniability: Look, we told our employees not to tell borrowers to default, who cares if we were winking and nodding when we told them that?
Telling people to default before a modification can be considered is insidious, because it triggers many preventable foreclosures. As it is, during trial modifications when the borrowers promptly make the full, modified payment — the only payment they’re supposed to make — the banks consider the payment late because it’s less than the original amount, and charge a late fee. If the borrower is already three months delinquent when he starts the mortgage modification, the fees have grown so much that the borrower ends up in a big hole.
The bank then starts on the foreclosure path while considering the modification — the so-called “Dual Track” — and the borrower ends up foreclosed on.
I’ve spoken to many borrowers who were told to default. Most recently, I’ve been chatting with Joe, a homeowner in Georgia who works in the financial industry. Joe and his family have been struggling with SunTrust Bank (STI) since 2009. At that time, they wanted to refinance their house. The couple’s credit was stellar, rates were low, they had a long and deep relationship with the bank, and they were willing to pay closing costs. Seemed like a no-brainer.
Unfortunately they owed more than the house was worth, so the bank wouldn’t do the deal. Instead, in January 2010 the bank told him to seek a mortgage modification. When an appropriate program became available in July, Joe submitted his application package. But SunTrust didn’t reply at all until December, and in January 2011, it told him he didn’t qualify for a modification because he was still current on his mortgage.
Meanwhile, the family blew through their life savings. Joe’s income was reduced, his wife fell ill and could no longer work, and her medications were expensive. But they stayed current on their mortgage through December 2010.
Despite that heroic effort to stay current, Joe is now facing foreclosure. The bank told him to default in January, and it’s now made a modification offer that reduces his payment by a mere $250 a month — not enough for him to be able to save his house, and half of what he could have saved by doing the 2009 refi. And if the refi had gone through, they would still have their life savings, and their credit would still be great.
Joe has asked SunTrust to explain its math in calculating what kind of modification he qualifies for, but it refused. The AG proposal would solve this problem, but the banks’ counteroffer wouldn’t. In fact, most recently, SunTrust demanded that Joe give it some $7,000 — three months of trial payments. But SunTrust wouldn’t tell him how the money would be applied, whether for fees, principal, or interest, until it decided — if it decided — at the end of that time to give him a permanent modification. Nor would it tell him what the terms of a permanent offer would be if it were made. SunTrust refused to put anything in writing. Joe wouldn’t pay on that basis, of course.
Joe recorded his conversations with SunTrust, which he shared with Fortune. SunTrust said: “While we are not at liberty to discuss a specific client relationship or our internal policies and procedures, generally speaking we work with clients on a case-by-case basis regarding potential loan modifications taking into account investor guidelines and the fact that every situation is different.”
The AGs must not lose sight of people like Joe, a former marine who served during the first Gulf War, and condemn troubled borrowers as unsympathetic “deadbeats.” The banks are relying on that stereotype to carry the day for them.
If the banks won’t deal, throw the book at them. Just like it’s been thrown at baseball great Barry Bonds for his comparatively trivial alleged perjury. If we can prosecute Bonds but not the banks, what kind of country are we?
http://finance.fortune.cnn.com/2011/04/07/foreclosure-fraud-the-homeowner-nightmares-continue/
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Wednesday, April 6, 2011
Mortgages are cheap - if you can get one?
According to the Federal Reserve, nearly a quarter of people who apply for loans are turned down. The denial rates tell only half the story. Many potential buyers aren't even applying for loans because they assume they can't get one. That shows up in credit scores for loans financed with backing from Fannie Mae and Freddie Mac. The average credit score has risen to 760 from 720 a few years ago. For FHA loans, the average score has gone to 700 from 660. Loans made to borrowers with sub-620 scores are almost nonexistent. Another factor keeping people out of the mortgage market is that lenders now require much more up-front cash. The median down payment for purchase is about 15%. During the housing boom, it approached zero. On most loans, banks want 20% down. On $200,000 purchases, that's $40,000, an insurmountable obstacle for many young house hunters.
Or, in New York City, where the median home price is $800,000, buyers need $160,000 up front. Industry insiders say all these factors have reduced the pool of buyers, lowering demand for homes and hurting prices. "We feel it really reduces the demand for houses," said Mike D'Alonzo, president of the National Association of Mortgage Brokers. "It's an unbelievable buyer's market, but there hasn't been as much activity as you would expect because not as many people qualify for loans." And it's about to get harder for buyers. Federal regulators proposed rules last week that are designed to discourage risky lending but that will also likely further restrict lending.
Banks would be required to keep 5% of some loans, specifically those with less than 20% down payments, on their books rather than selling them all off as securities. As a result, banks make be unlikely to issue loans where less than 20% is put down. So much for first-time buyers. "We think the new rules are appalling," said the NAHB's Howard. "Only the wealthy will be able to buy homes at low interest cost." It could also further erode consumer demand for homes. The immediate impact, should the new regulations get adopted, should be minor, according to Steve O'Connor, spokesman for the Mortgage Bankers Association. That's because Fannie, Freddie and FHA loans are all exempt from the requirements and they represent more than 90% of the market right now. The government, however, wants to reduce the presence of all three agencies in favor of private lenders, and banking experts fears the long-term impact of abandoning the field to mostly private companies.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Or, in New York City, where the median home price is $800,000, buyers need $160,000 up front. Industry insiders say all these factors have reduced the pool of buyers, lowering demand for homes and hurting prices. "We feel it really reduces the demand for houses," said Mike D'Alonzo, president of the National Association of Mortgage Brokers. "It's an unbelievable buyer's market, but there hasn't been as much activity as you would expect because not as many people qualify for loans." And it's about to get harder for buyers. Federal regulators proposed rules last week that are designed to discourage risky lending but that will also likely further restrict lending.
Banks would be required to keep 5% of some loans, specifically those with less than 20% down payments, on their books rather than selling them all off as securities. As a result, banks make be unlikely to issue loans where less than 20% is put down. So much for first-time buyers. "We think the new rules are appalling," said the NAHB's Howard. "Only the wealthy will be able to buy homes at low interest cost." It could also further erode consumer demand for homes. The immediate impact, should the new regulations get adopted, should be minor, according to Steve O'Connor, spokesman for the Mortgage Bankers Association. That's because Fannie, Freddie and FHA loans are all exempt from the requirements and they represent more than 90% of the market right now. The government, however, wants to reduce the presence of all three agencies in favor of private lenders, and banking experts fears the long-term impact of abandoning the field to mostly private companies.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Friday, March 25, 2011
Cash Has Always Been King...But Never More Important Than Today..
For many home buyers, mortgage financing is hard to come by these days. Lenders have tightened up credit requirements in an about-face from the lax lending of pre-crisis days that put people into mortgages they couldn’t afford and fueled record-high delinquencies.
Evidence of constricted mortgage credit was highlighted in the latest Housing Pulse report from Campbell Surveys and Inside Mortgage Finance as cash transactions set a new record, accounting for 33.7 percent of home purchases in February.
A separate study conducted by the National Association of Realtors (NAR) shows the same trend. NAR also found that all-cash sales were a record 33 percent in February. By comparison, they were 27 percent in February 2010, according to NAR’s historical data.
The Housing Pulse report notes that the increase in cash purchases last month paralleled a rise in activity among investors, who for the most part have their sights set on distressed properties that can be scooped up at a discount.
Investors bought 23.5 percent of the homes sold in February, up from 19.9 percent just two months earlier, according to the industry survey. Real estate agents participating in the Housing Pulse survey of February transactions confirmed the surge in investors.
“We are seeing investors come back into the market. One investor told me that one house he wanted came on Wednesday p.m and had nine offers by Thursday a.m.,” stated an agent in New Jersey.
“There are a number of investors and businesses buying up the short sale and REO properties and renovating them and then selling them as traditional sales,” reported an agent from Arizona.
NAR’s February report on existing-home sales noted that the median sales price on previously owned homes dropped 5.2 percent in February compared to the price points of a year earlier to hit a nine-year low.
The trade group attributed the decline to a larger number of distressed properties in the sales pool – 39 percent in February – thanks to investors with cash in their hands snapping up homes at bargain prices.
There are conflicting views within the industry as to the effect increased investor activity in the distressed property marketplace has on communities struggling to recover from the housing crisis. A separate article here on DSNews.com examines both sides of the debate over whether property investors are solving or contributing to neighborhood blight.
While investor appetite is strong for REOs and short sales that carry a discount price tag, the selection of properties that fall into this class has contracted somewhat.
The Housing Pulse Distressed Property Index (DPI) registered a slightly lower reading in February than in January, marking its first decline since last fall.
The report notes that the drop was not likely the result of a healing housing market, rather is appears to be linked to delays in the listing and sale of distressed properties as mortgage servicers continued to deal with legal and regulatory fallout surrounding title and paperwork issues following the robo-signing mess.
The Housing Pulse survey polls over 3,000 real estate agents from across the country each month to provide insight into home sales and mortgage usage patterns.
The survey also found that average transactions per real estate agent fell from 2.1 in January to 1.7 in February – a sign the home sales are slipping at a time of the year when they typically begin to increase. The report notes this may be an indicator that the spring buying season will start with a deficit.
By Carrie Bay DSN News
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Evidence of constricted mortgage credit was highlighted in the latest Housing Pulse report from Campbell Surveys and Inside Mortgage Finance as cash transactions set a new record, accounting for 33.7 percent of home purchases in February.
A separate study conducted by the National Association of Realtors (NAR) shows the same trend. NAR also found that all-cash sales were a record 33 percent in February. By comparison, they were 27 percent in February 2010, according to NAR’s historical data.
The Housing Pulse report notes that the increase in cash purchases last month paralleled a rise in activity among investors, who for the most part have their sights set on distressed properties that can be scooped up at a discount.
Investors bought 23.5 percent of the homes sold in February, up from 19.9 percent just two months earlier, according to the industry survey. Real estate agents participating in the Housing Pulse survey of February transactions confirmed the surge in investors.
“We are seeing investors come back into the market. One investor told me that one house he wanted came on Wednesday p.m and had nine offers by Thursday a.m.,” stated an agent in New Jersey.
“There are a number of investors and businesses buying up the short sale and REO properties and renovating them and then selling them as traditional sales,” reported an agent from Arizona.
NAR’s February report on existing-home sales noted that the median sales price on previously owned homes dropped 5.2 percent in February compared to the price points of a year earlier to hit a nine-year low.
The trade group attributed the decline to a larger number of distressed properties in the sales pool – 39 percent in February – thanks to investors with cash in their hands snapping up homes at bargain prices.
There are conflicting views within the industry as to the effect increased investor activity in the distressed property marketplace has on communities struggling to recover from the housing crisis. A separate article here on DSNews.com examines both sides of the debate over whether property investors are solving or contributing to neighborhood blight.
While investor appetite is strong for REOs and short sales that carry a discount price tag, the selection of properties that fall into this class has contracted somewhat.
The Housing Pulse Distressed Property Index (DPI) registered a slightly lower reading in February than in January, marking its first decline since last fall.
The report notes that the drop was not likely the result of a healing housing market, rather is appears to be linked to delays in the listing and sale of distressed properties as mortgage servicers continued to deal with legal and regulatory fallout surrounding title and paperwork issues following the robo-signing mess.
The Housing Pulse survey polls over 3,000 real estate agents from across the country each month to provide insight into home sales and mortgage usage patterns.
The survey also found that average transactions per real estate agent fell from 2.1 in January to 1.7 in February – a sign the home sales are slipping at a time of the year when they typically begin to increase. The report notes this may be an indicator that the spring buying season will start with a deficit.
By Carrie Bay DSN News
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Wednesday, March 23, 2011
New Home Sales Falls to Low Equal to 2003
New U.S. single-family home sales unexpectedly fell in February to hit a record low and prices were the lowest since December 2003, a government report showed on Wednesday, suggesting the housing market slide was deepening.
The Commerce Department said sales dropped 16.9 percent to a seasonally adjusted 250,000 unit annual rate, the lowest since records began in 1963, after an upwardly revised 301,000-unit pace in January. Sales plunged to all-time lows in three of the four regions last month.
Economists polled by Reuters had forecast new home sales edging up to a 290,000-unit pace last month from a previously reported 284,000 unit rate.
Compared to February last year sales were down 28 percent.
An oversupply of homes exacerbated by an increasing flood of properties falling into foreclosure is frustrating recovery in the housing market.
Data on Monday showed a steep drop in sales of previously owned homes in February, with prices tumbling to a near nine-year low.
CNBC Investor Guide to Spring Real Estate 2011 - See Complete Coverage
The median sales price for a new home tumbled 13.9 percent last month to $202,100, the lowest since December 2003. Compared with February last year, the median price fell 8.9 percent. Persistent price declines could dampen hopes of a pick-up in sales during spring.
At Februarys sales pace, the supply of new homes on the market rose to 8.9 months worth, the highest since August, from 7.4 months worth in January. There were 186,000 new homes available for sale last month, matching the prior months inventory.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
The Commerce Department said sales dropped 16.9 percent to a seasonally adjusted 250,000 unit annual rate, the lowest since records began in 1963, after an upwardly revised 301,000-unit pace in January. Sales plunged to all-time lows in three of the four regions last month.
Economists polled by Reuters had forecast new home sales edging up to a 290,000-unit pace last month from a previously reported 284,000 unit rate.
Compared to February last year sales were down 28 percent.
An oversupply of homes exacerbated by an increasing flood of properties falling into foreclosure is frustrating recovery in the housing market.
Data on Monday showed a steep drop in sales of previously owned homes in February, with prices tumbling to a near nine-year low.
CNBC Investor Guide to Spring Real Estate 2011 - See Complete Coverage
The median sales price for a new home tumbled 13.9 percent last month to $202,100, the lowest since December 2003. Compared with February last year, the median price fell 8.9 percent. Persistent price declines could dampen hopes of a pick-up in sales during spring.
At Februarys sales pace, the supply of new homes on the market rose to 8.9 months worth, the highest since August, from 7.4 months worth in January. There were 186,000 new homes available for sale last month, matching the prior months inventory.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Tuesday, March 22, 2011
February Home Sales Dive to 9-year Low
WASHINGTON (Reuters) - Sales of previously owned U.S. homes fell unexpectedly sharply in February and prices touched their lowest level in nearly nine years, implying a housing market recovery was still a long off.
The National Association of Realtors said on Monday sales fell 9.6 percent month over month to an annual rate of 4.88 million units, snapping three straight months of gains. The percentage decline was the largest since July.
Economists polled by Reuters had expected February sales to fall 4.0 percent to a 5.15 million-unit pace from the previously reported 5.36 million unit rate in January, which was revised slightly up to 5.40 million.
The median home price dropped 5.2 percent in February from a year earlier to $156,100, the lowest since April 2002.
"If the price declines persist, even with the job market recovery, that could hamper recovery in the housing market," said NAR chief economist Lawrence Yun.
Compared with February last year, sales were down 2.8 percent.
Oversupply of homes and a relentless wave of foreclosures are pressuring prices, holding back recovery in the sector, whose collapse helped to tip the U.S. economy into its worst recession since the 1930s.
Foreclosures and short sales, which typically occur below market value, accounted for 39 percent of transactions in February, up from 37 percent the prior month. All-cash purchases made up a record 33 percent of transactions in February.
Sales last month fell across the board, with multifamily dwellings declining 10 percent and single-family home units dropping 10.0 percent.
At February's sales pace, the supply of existing homes on the market rose to 8.6 months' worth from 7.5 in January. A supply of between six and seven months is generally considered ideal, with higher readings pointing to lower house prices.
WASHINGTON | Mon Mar 21, 2011 10:34am EDT
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
The National Association of Realtors said on Monday sales fell 9.6 percent month over month to an annual rate of 4.88 million units, snapping three straight months of gains. The percentage decline was the largest since July.
Economists polled by Reuters had expected February sales to fall 4.0 percent to a 5.15 million-unit pace from the previously reported 5.36 million unit rate in January, which was revised slightly up to 5.40 million.
The median home price dropped 5.2 percent in February from a year earlier to $156,100, the lowest since April 2002.
"If the price declines persist, even with the job market recovery, that could hamper recovery in the housing market," said NAR chief economist Lawrence Yun.
Compared with February last year, sales were down 2.8 percent.
Oversupply of homes and a relentless wave of foreclosures are pressuring prices, holding back recovery in the sector, whose collapse helped to tip the U.S. economy into its worst recession since the 1930s.
Foreclosures and short sales, which typically occur below market value, accounted for 39 percent of transactions in February, up from 37 percent the prior month. All-cash purchases made up a record 33 percent of transactions in February.
Sales last month fell across the board, with multifamily dwellings declining 10 percent and single-family home units dropping 10.0 percent.
At February's sales pace, the supply of existing homes on the market rose to 8.6 months' worth from 7.5 in January. A supply of between six and seven months is generally considered ideal, with higher readings pointing to lower house prices.
WASHINGTON | Mon Mar 21, 2011 10:34am EDT
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Monday, March 21, 2011
New Home Construction Falls
WASHINGTON — Builders broke ground last month on the fewest homes in nearly two years and cut their requests for permits to start new projects to a five-decade low. The decline in construction activity is the latest evidence that the U.S. housing industry is years away from a recovery.
Home construction plunged 22.5 percent in February from January to a seasonally adjusted 479,000 homes, the Commerce Department said Wednesday. It was the lowest level since April 2009 and the second-lowest on records dating back more than a half-century.
The decline followed a surge in highly volatile apartment construction in January, which pushed the overall construction rate up to more than 600,000 units — the fastest rate in 20 months. Still, the building pace has been far below the 1.2 million units a year that economists consider healthy.
Single-family homes, which make up roughly 80 percent of home construction, fell 11.8 percent in February. Apartment and condominium construction dropped 47 percent, reversing much of January's gains.
Building permits, an indicator of future construction, fell 8.1 percent last month to the lowest level on records dating back to 1960. Permit requests for single-family homes saw the biggest decline. Apartments and condos remained flat.
Falling prices, sluggish sales and the weak construction rate all point to a housing market that is "stuck at a bottom of a steep hill," according to Moody's Analytics Economic Research.
"There are really large structural problems with the housing market," said Dan Greenhaus, chief economic strategist with Miller Tabak + Co. "This is not a run-up in oil prices. This is a multiyear build up in the housing market that is going to take more than several months or several quarters to get through."
For a housing recovery to take hold, the job market needs to improve and builders need to gain access to hard-to-get credit.
"Credit is flowing freely to large companies but not so much to the small builders," said Patrick Newport, U.S. economist for IHS Global Insight. "If builders cannot get financing to build new homes, housing will remain in the dumps."
Analysts said year-end building code changes in California, Pennsylvania and New York caused an artificial spike for permit requests in December and housing starts in January. Builders in those states rushed to file new permits before those changes went into effect.
Even with those gains, the housing market has struggled. Millions of foreclosures have forced home prices down and more are expected this year. Tight credit has made mortgage loans tough to come by. And some potential buyers who could qualify for loans are hesitant to enter the market, worried that prices will fall further.
The drop in home construction activity was felt coast to coast. It fell 48.6 percent in the Midwest, 37.5 percent in the Northeast, 28 percent in the West and 6.3 percent in the South.
The volatile housing market is weighing on the overall economic recovery. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.
The trade group said Tuesday that its index of industry sentiment for March improved slightly to 17. That was the first gain in five months after four straight readings of 16. Still, any reading below 50 indicates negative sentiment about the housing market's future. The index hasn't been above that level since April 2006.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Home construction plunged 22.5 percent in February from January to a seasonally adjusted 479,000 homes, the Commerce Department said Wednesday. It was the lowest level since April 2009 and the second-lowest on records dating back more than a half-century.
The decline followed a surge in highly volatile apartment construction in January, which pushed the overall construction rate up to more than 600,000 units — the fastest rate in 20 months. Still, the building pace has been far below the 1.2 million units a year that economists consider healthy.
Single-family homes, which make up roughly 80 percent of home construction, fell 11.8 percent in February. Apartment and condominium construction dropped 47 percent, reversing much of January's gains.
Building permits, an indicator of future construction, fell 8.1 percent last month to the lowest level on records dating back to 1960. Permit requests for single-family homes saw the biggest decline. Apartments and condos remained flat.
Falling prices, sluggish sales and the weak construction rate all point to a housing market that is "stuck at a bottom of a steep hill," according to Moody's Analytics Economic Research.
"There are really large structural problems with the housing market," said Dan Greenhaus, chief economic strategist with Miller Tabak + Co. "This is not a run-up in oil prices. This is a multiyear build up in the housing market that is going to take more than several months or several quarters to get through."
For a housing recovery to take hold, the job market needs to improve and builders need to gain access to hard-to-get credit.
"Credit is flowing freely to large companies but not so much to the small builders," said Patrick Newport, U.S. economist for IHS Global Insight. "If builders cannot get financing to build new homes, housing will remain in the dumps."
Analysts said year-end building code changes in California, Pennsylvania and New York caused an artificial spike for permit requests in December and housing starts in January. Builders in those states rushed to file new permits before those changes went into effect.
Even with those gains, the housing market has struggled. Millions of foreclosures have forced home prices down and more are expected this year. Tight credit has made mortgage loans tough to come by. And some potential buyers who could qualify for loans are hesitant to enter the market, worried that prices will fall further.
The drop in home construction activity was felt coast to coast. It fell 48.6 percent in the Midwest, 37.5 percent in the Northeast, 28 percent in the West and 6.3 percent in the South.
The volatile housing market is weighing on the overall economic recovery. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.
The trade group said Tuesday that its index of industry sentiment for March improved slightly to 17. That was the first gain in five months after four straight readings of 16. Still, any reading below 50 indicates negative sentiment about the housing market's future. The index hasn't been above that level since April 2006.
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Friday, March 18, 2011
Rents May See Doudle-Digit Increase
(CNNMoney) -- Renters beware: Double-digit rent hikes may be coming soon.
Already, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years.
"The demand for rental housing has already started to increase," said Peggy Alford, president of Rent.com. "Young people are starting to get rid of their roommates and move out of their parent's basements."
By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode.
Rent hikes have averaged less than 1% a year over the past decade, according to Commerce Department statistics, adjusted for inflation. Now, Alford expects rents to spike 7% or so in each of the next two years -- to a national average that will top $800 per month.
In the hottest rental markets, the increases will likely top the 10% mark annually for the next couple of years, according to Lesley Deutch of John Burns Real Estate Consulting. In San Diego, she anticipates rents will rise more than 31% by 2015. In Seattle rents will climb 29% over that period; and in Boston, they may jump between 25% and 30%.
This is a sharp change from the recession, when many Americans couldn't afford to live on their own. More than 1.2 million young adults moved back in with their parents from 2005 to 2010, said Deutch. Many others doubled up together.
As a result, landlords had to reduce prices and offer big incentives to snag renters.
Now that the recession is easing, many of these young people are ready to find new digs, mostly as renters, not owners. Plus, the foreclosure crisis continues unabated, and the millions losing their homes are looking for new places to live.
Apartment developers many not be able to keep up with this heightened demand, which will force prices upwards, according to Chris Macke, a real estate analyst with CoStar, which tracks multi-family housing trends.
"There will be an envelope of two or three years," said Macke, "when the rise in demand for rentals will exceed the industry's ability to meet it."
Plus, Alford added, "there's been a shift in the American Dream. We're learning from our surveys that a huge proportion of people are choosing to rent."
They've experienced the downsides of home ownership -- or seen friends and family suffer -- and don't want to take the risks or pay the higher costs of home ownership.
Where home ownership costs are particularly high, there are many more renters than owners. In Manhattan, for example, only about 20% own their homes; in San Francisco, about of third of the population does; in Los Angeles, less than 40%; and in Chicago, about 44%.
There's one factor that could rein in rent increases: the huge number of foreclosed homes that could hit the market over the next few years.
In many markets, like Phoenix and Las Vegas, there are neighborhoods filled with recently built, single-family homes going for fire-sale prices. When the cost of owning homes falls well below the costs of renting them, more people will buy.
"That's always been the biggest competition for rentals," said Deutch
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Already, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years.
"The demand for rental housing has already started to increase," said Peggy Alford, president of Rent.com. "Young people are starting to get rid of their roommates and move out of their parent's basements."
By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode.
Rent hikes have averaged less than 1% a year over the past decade, according to Commerce Department statistics, adjusted for inflation. Now, Alford expects rents to spike 7% or so in each of the next two years -- to a national average that will top $800 per month.
In the hottest rental markets, the increases will likely top the 10% mark annually for the next couple of years, according to Lesley Deutch of John Burns Real Estate Consulting. In San Diego, she anticipates rents will rise more than 31% by 2015. In Seattle rents will climb 29% over that period; and in Boston, they may jump between 25% and 30%.
This is a sharp change from the recession, when many Americans couldn't afford to live on their own. More than 1.2 million young adults moved back in with their parents from 2005 to 2010, said Deutch. Many others doubled up together.
As a result, landlords had to reduce prices and offer big incentives to snag renters.
Now that the recession is easing, many of these young people are ready to find new digs, mostly as renters, not owners. Plus, the foreclosure crisis continues unabated, and the millions losing their homes are looking for new places to live.
Apartment developers many not be able to keep up with this heightened demand, which will force prices upwards, according to Chris Macke, a real estate analyst with CoStar, which tracks multi-family housing trends.
"There will be an envelope of two or three years," said Macke, "when the rise in demand for rentals will exceed the industry's ability to meet it."
Plus, Alford added, "there's been a shift in the American Dream. We're learning from our surveys that a huge proportion of people are choosing to rent."
They've experienced the downsides of home ownership -- or seen friends and family suffer -- and don't want to take the risks or pay the higher costs of home ownership.
Where home ownership costs are particularly high, there are many more renters than owners. In Manhattan, for example, only about 20% own their homes; in San Francisco, about of third of the population does; in Los Angeles, less than 40%; and in Chicago, about 44%.
There's one factor that could rein in rent increases: the huge number of foreclosed homes that could hit the market over the next few years.
In many markets, like Phoenix and Las Vegas, there are neighborhoods filled with recently built, single-family homes going for fire-sale prices. When the cost of owning homes falls well below the costs of renting them, more people will buy.
"That's always been the biggest competition for rentals," said Deutch
American Eagle Realty, we are a realty company not a legal firm, we can help with all of your real estate needs including foreclosure. American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Loan Mods, too. Contact us we can help, We have helped others we can help you...
Whether you want buy, rent, or sell a home we can assist you.
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
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