Misc Real Estate
More Foreclosures Still In the Pipeline
According to some estimates, about 5 million to 7 million properties are potentially eligible for foreclosure but have not yet been repossessed and put up for sale. Some experts argue it could take up to three years for all these homes to go through the foreclosure process, hit the market and be purchased [...]
According to some estimates, about 5 million to 7 million properties are potentially eligible for foreclosure but have not yet been repossessed and put up for sale. Some experts argue it could take up to three years for all these homes to go through the foreclosure process, hit the market and be purchased by new owners. This new bubble of foreclosed properties will increase the inventory of properties on the market (which is already too high), pushing down prices and lengthening time on market for homes to sell. This will reverse the trend we have seen in the last 90 days, of falling REO inventory and increasing prices (at least in REO properties).
One example is that JP Morgan Chase hit its top month of foreclosures in the middle of 2008 and their numbers have been steadily falling. Unfortunately, the bank is estimating that it could again beat that previous record by the fourth quarter of 2010. Data released by RealtyTrac shows that banks are now slower to take properties back through foreclosure despite the fact that more and more homeowner are falling behind in their payments. This new wave of foreclosures are less the result of ARM mortgages adjusting and over leveraged properties. They are the result of job losses or changes in income.
Maybe a wave 3? I hope not, but there is an estimated 11 million US homeowners that now owe more on their mortgage than their home is worth. Many of them will decide that keeping that home is not worth it and will become delinquent. Hopefully some of these will opt to sell their home via a short sale instead of letting it go into foreclosure. By the end of 2012, 39 percent to 50 percent of home purchases in Phoenix will still be foreclosed properties, J.P. Morgan Chase has estimated. Wow!
According to the National Association of Realtors, the inventory of bank owned or bank mediated (short sales) properties declined from 49 percent of the inventory of homes sold in March 2009 to 38 percent of the inventory in January 2010. Additionally, the inventory is down to just a 7.8 month supply from a high of 11 months in July 2008. A stable market is around 4 months; we still have some time to go.
How Do We Know There is Another Offer?
Jay Thompson is a top real estate agent in Phoenix. I run into him occasionally online in various forums and blogs (although I doubt he knows who I am!). Jay wrote a very thought provoking post on his The Phoenix Real Estate Guy blog about multiple offers.
If you have ever been in a competitive bidding [...]
Jay Thompson is a top real estate agent in Phoenix. I run into him occasionally online in various forums and blogs (although I doubt he knows who I am!). Jay wrote a very thought provoking post on his The Phoenix Real Estate Guy blog about multiple offers.
If you have ever been in a competitive bidding situation for a property and lost, you know how frustrating it can be. There are more than a few of my customers that ask the question: “How do we know there is another offer”. Jay rants and then brainstorms about possible, but unlikely ways to validate that there truly is another offer over at The Phoenix Real Estate Guy.
MN Strategic Mortgage Defaults
Millions of Americans are now deeply underwater on their mortgage. If you’re among them, you need to stop living in a dream world and give serious thought to walking away from the debt.
No, you shouldn’t feel bad about it, and you shouldn’t feel guilty. The lenders would do the same to you—in a heartbeat. You [...]
Millions of Americans are now deeply underwater on their mortgage. If you’re among them, you need to stop living in a dream world and give serious thought to walking away from the debt.
No, you shouldn’t feel bad about it, and you shouldn’t feel guilty. The lenders would do the same to you—in a heartbeat. You need to put yourself and your family’s finances first. Read the rest at MaryAlice Short’s blog, the Minnesota Short Sale Expert.
Glacier Spotted in Hugo MN House
How do you like this spell of above freezing weather we have had lately? In fact, I heard it is supposed to hit 40 degrees here this week!. I am breaking out the shorts. Despite the warm weather, I encountered a rather frozen site today. It was a glacier inside this Hugo single family house.
I [...]
How do you like this spell of above freezing weather we have had lately? In fact, I heard it is supposed to hit 40 degrees here this week!. I am breaking out the shorts. Despite the warm weather, I encountered a rather frozen site today. It was a glacier inside this Hugo single family house.
I have seen lots of frozen houses and broken pipes, but nothing like this. I was surprised that there was 4+ inches of ice in this back entry. It appears the water was running for several hours to accumulate this ice field. It must have been just at the freezing mark as otherwise, this water would have spread out much further than it did.
Check out how the doors are actually iced shut. Great locking mechanism!
The Future of the Real Estate Market
MaryAlice at MNShortSaleRealtor.com read the 69 page report put out by T2 Partners on the state of the real estate market. She does a great job of giving us a Cliff Notes version with her thoughts added in. Take a closer look at MN Short Sales and MN Foreclosure Sales Will Continue To Rise.
MaryAlice at MNShortSaleRealtor.com read the 69 page report put out by T2 Partners on the state of the real estate market. She does a great job of giving us a Cliff Notes version with her thoughts added in. Take a closer look at MN Short Sales and MN Foreclosure Sales Will Continue To Rise.
Craigslist Rental Scams
It is hard enough to know who to trust these days. Now Craigslist is getting another black eye. It appears some scam artists are posting houses for rent and sale that they don’t even own.
This actually happened to me. Someone posted a property I was renting for $4400 on Craigslist for $1500. They took the [...]
It is hard enough to know who to trust these days. Now Craigslist is getting another black eye. It appears some scam artists are posting houses for rent and sale that they don’t even own.
This actually happened to me. Someone posted a property I was renting for $4400 on Craigslist for $1500. They took the pictures off the original ad and then created a fake email address to scottficek [at] gmail [dot] com (not sure how they found my name). Nice! I had a couple calls about the property, from some smart shoppers that found my phone number instead of sending an email.
MaryAlice Short writes about this topic over at her Minnesota Short Sale Blog.
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