More Home Owners Stay-Put in Foreclosure
Posted by GLOZAL on March 6, 2012
More lenders are allowing home owners in default to stay-put in their homes longer--and even negotiating special arrangements with them, such as the lender paying the home insurance if the home owner pays the utility costs, The New York Times reports.
Why the postponement? Banks don’t want the cost of maintaining more homes on their books. Many municipalities are forcing banks to better maintain foreclosed homes, which has been adding to the costs.
By the end of January, more than 644,458 homes were under bank ownership. What’s more, about 710,725 are in the foreclosure process, awaiting to add to that number, according to data by RealtyTrac.
“Under normal circumstances, the banks would be able to cover the cost of maintenance, upkeep, and property taxes by just reselling the property, but these are desperate times, and banks are resorting to somewhat desperate measures in some cases,” Daren Blomquist, a vice president at RealtyTrac, told The New York Times. “It is more of a factor now because property values have come down and will not cover all these costs when the banks resell the property, if they can resell the property.”
In 2007, the average time it took to complete a foreclosure was four months. By the end of 2011, that has stretched to a year. In some states the slowdown is even more pronounced, such as in Florida where defaulting home owners often stay put for more than two years, or in New York in which foreclosures in 2007 once took 263 days to complete and in 2011 now average 1,019 days.
Tuesday, March 6, 2012
Wednesday, February 22, 2012
CHASE BANK OFFERS HOMES TO WOUNDED VETS!!
Chase Donates Inventory Homes to Wounded Vets
Daily Real Estate News
Tuesday, February 21, 2012
Chase announced it will donate at least 100 homes it owns to wounded military veterans as part of a program operated by a national nonprofit group known as Operation Homefront.
Eligible military families must be on active duty, not currently own a home, and be financially capable of taking on home ownership. Spouses of military members killed in action will also be considered for the program.
"These individuals have made tremendous sacrifices for our nation, and as they move back into civilian life in a tough economic environment, we hope that a mortgage-free home will make that transition a little easier," Frank Bisignano, JPMorgan Chase Chief Administrative Officer and CEO of Mortgage Banking, said in a statement.
Military families can apply for the Homes on the Homefront program at www.OperationHomefront.net/HomesOnTheHomefront.
The announcement comes months after Chase has taken steps to develop a foreclosure prevention and assistance program for military vets. Last year, Chase admitted to 14 wrongful evictions of military families. Other wrongful evictions of military families also surfaced from other banks last year, and the Justice Department is currently overseeing reviews by major banks of military members’ mortgages for any violations of the Servicemembers Civil Relief Act.
Daily Real Estate News
Tuesday, February 21, 2012
Chase announced it will donate at least 100 homes it owns to wounded military veterans as part of a program operated by a national nonprofit group known as Operation Homefront.
Eligible military families must be on active duty, not currently own a home, and be financially capable of taking on home ownership. Spouses of military members killed in action will also be considered for the program.
"These individuals have made tremendous sacrifices for our nation, and as they move back into civilian life in a tough economic environment, we hope that a mortgage-free home will make that transition a little easier," Frank Bisignano, JPMorgan Chase Chief Administrative Officer and CEO of Mortgage Banking, said in a statement.
Military families can apply for the Homes on the Homefront program at www.OperationHomefront.net/HomesOnTheHomefront.
The announcement comes months after Chase has taken steps to develop a foreclosure prevention and assistance program for military vets. Last year, Chase admitted to 14 wrongful evictions of military families. Other wrongful evictions of military families also surfaced from other banks last year, and the Justice Department is currently overseeing reviews by major banks of military members’ mortgages for any violations of the Servicemembers Civil Relief Act.
Tuesday, February 21, 2012
FORECLOSED HOMES TO BECOME RENTAL PROPERTIES
KEEP FORECLOSED PROPERTIES AND TURN THEM INTO RENTALS??
Morgan Stanley Predicts REO Rental Program Will Create 1.8 million Jobs
posted by GLOZAL on February 19, 2012 at 3:34pm
The government's program to turn foreclosed Fannie Mae, Freddie Mac and Federal Housing Administration properties into rentals "is here to stay," according to housing analysts at Morgan Stanley. One of the greatest effects of it, the bank's analysts say, is job creation, with the possibility of creating more than 1 million jobs in the hard-hit construction and real estate industries. The jobs could be created by private capital without the use of taxpayer dollars.
The program's purpose is to clear the national backlog of distressed housing.
"On a macro level, (the REO rental program) could not have come at a better time," the analysts say.
According to the Bureau of Labor Statistics, the economy lost 2.5 million housing-related jobs over the past five years. Of those, 2.16 million were in construction and 240,000 were in real estate.
Employment in construction increased by 21,000 in January, following a gain of 31,000 in the previous month.
Analysts estimate about eight million properties will be sold in some form of distressed sale over the next five years.
"Even if only half can be turned into rentals, which would represent only a 20% increase in the total number of single-family rental properties available today, that could result in the creation of one million one-time construction-oriented jobs plus a possible additional 800,000 in permanent jobs, mostly in some of the hardest-hit sectors and the hardest-hit economic areas of the country," they say.
The 800,000 jobs would comprise the cottage industry for servicing REO rental units, from cleaning properties to collecting the rent.
The chart below shows Morgan Stanley's full-time job-creation numbers per distressed property turned into rental by each category and for total jobs. The calculation is based on anecdotal labor-usage feedback the firm received from current single-family operators.
Capital Economics called the program to move REO properties to rentals the “best housing fix so far” and “possibly more significant” than President Brack Obama’s refinancing proposals announced late last month.
Support for a government-led program was the most popular disposition strategy among panelists at January's American Securitization Forum.
But when Federal Reserve Chairman Ben Bernanke sent a letter in January to Congress proposing the REO rental program, it highlighted the deep political divide on how to repair housing.
Private investors, with the government's support, are gearing up for what they perceived as a massive and long-term investment opportunity
"With the added benefit of the potential for significant private sector-led job creation, potentially in the hardest-hit sectors in the hardest-hit regions, we are increasingly confident that (the program) can have a positive impact on housing and the macro economy as a whole," the analysts say.
Morgan Stanley Predicts REO Rental Program Will Create 1.8 million Jobs
posted by GLOZAL on February 19, 2012 at 3:34pm
The government's program to turn foreclosed Fannie Mae, Freddie Mac and Federal Housing Administration properties into rentals "is here to stay," according to housing analysts at Morgan Stanley. One of the greatest effects of it, the bank's analysts say, is job creation, with the possibility of creating more than 1 million jobs in the hard-hit construction and real estate industries. The jobs could be created by private capital without the use of taxpayer dollars.
The program's purpose is to clear the national backlog of distressed housing.
"On a macro level, (the REO rental program) could not have come at a better time," the analysts say.
According to the Bureau of Labor Statistics, the economy lost 2.5 million housing-related jobs over the past five years. Of those, 2.16 million were in construction and 240,000 were in real estate.
Employment in construction increased by 21,000 in January, following a gain of 31,000 in the previous month.
Analysts estimate about eight million properties will be sold in some form of distressed sale over the next five years.
"Even if only half can be turned into rentals, which would represent only a 20% increase in the total number of single-family rental properties available today, that could result in the creation of one million one-time construction-oriented jobs plus a possible additional 800,000 in permanent jobs, mostly in some of the hardest-hit sectors and the hardest-hit economic areas of the country," they say.
The 800,000 jobs would comprise the cottage industry for servicing REO rental units, from cleaning properties to collecting the rent.
The chart below shows Morgan Stanley's full-time job-creation numbers per distressed property turned into rental by each category and for total jobs. The calculation is based on anecdotal labor-usage feedback the firm received from current single-family operators.
Capital Economics called the program to move REO properties to rentals the “best housing fix so far” and “possibly more significant” than President Brack Obama’s refinancing proposals announced late last month.
Support for a government-led program was the most popular disposition strategy among panelists at January's American Securitization Forum.
But when Federal Reserve Chairman Ben Bernanke sent a letter in January to Congress proposing the REO rental program, it highlighted the deep political divide on how to repair housing.
Private investors, with the government's support, are gearing up for what they perceived as a massive and long-term investment opportunity
"With the added benefit of the potential for significant private sector-led job creation, potentially in the hardest-hit sectors in the hardest-hit regions, we are increasingly confident that (the program) can have a positive impact on housing and the macro economy as a whole," the analysts say.
Monday, December 19, 2011
CHEAPER TO RENT OR OWN......................HMMMMMMMMMMMM
Renters Spending 5% More Than Home Owners
Daily Real Estate News
Rising rents are forcing renters to outspend home owners on housing costs, according to a new study.
Since 2005, home owners’ housing expenses have climbed from 31.9 percent of their household budget to 33.2 percent. On the other hand, in that same time period, renters’ expenses have jumped from 35.6 percent to 38.4 percent, according to the October CoreLogic U.S. Housing and Mortgage Trends.
In the last 26 years, home owners have increased the amount they spend on household expenses by 12 percent while renters have increased it by 22 percent, according to the study.
Earlier this month, Capital Economics economists noted that for the first time in 30 years the median monthly mortgage payment is about the same -- or less -- than the median rental payment.
Yet, with the bleak job market, home ownership rates continue to fall in many parts of the country, particularly among younger generations. CoreLogic found in its report that the home ownership rate for the 25-to-34 age group dropped from 51.6 percent in 1980 to 42 percent in 2010. For the 35-to-44 age group, home ownership rates fell from 71.2 percent to 62.3 percent over that period-
Daily Real Estate News
Rising rents are forcing renters to outspend home owners on housing costs, according to a new study.
Since 2005, home owners’ housing expenses have climbed from 31.9 percent of their household budget to 33.2 percent. On the other hand, in that same time period, renters’ expenses have jumped from 35.6 percent to 38.4 percent, according to the October CoreLogic U.S. Housing and Mortgage Trends.
In the last 26 years, home owners have increased the amount they spend on household expenses by 12 percent while renters have increased it by 22 percent, according to the study.
Earlier this month, Capital Economics economists noted that for the first time in 30 years the median monthly mortgage payment is about the same -- or less -- than the median rental payment.
Yet, with the bleak job market, home ownership rates continue to fall in many parts of the country, particularly among younger generations. CoreLogic found in its report that the home ownership rate for the 25-to-34 age group dropped from 51.6 percent in 1980 to 42 percent in 2010. For the 35-to-44 age group, home ownership rates fell from 71.2 percent to 62.3 percent over that period-
Tuesday, December 13, 2011
FLIPPERS ARE TO BLAME FOR HOUSING CRISIS?
House Flippers to Blame for Housing Downturn?
Daily Real Estate News
Tuesday, December 13, 2011
House flippers — made up of investors who bought up homes during the housing boom, possibly made a few upgrades to the home, and quickly resold the homes for high-dollar profit — played a larger role in causing the housing bubble than previously thought, according to a new federal report out by the Federal Reserve Bank of New York. The impact that speculative real estate investors played in driving the housing downturn has mostly been overlooked until now, the researchers note.
The speculative investors used low downpayments and subprime credit in buying up multiple homes at once, the report says. Their actions attributed to home prices in some areas being inflated, researchers say.
"This may have allowed the bubble to inflate further, which caused millions of owner-occupants to pay more if they wanted to buy a home for their family," researchers note in the report.
House flippers made up a big piece of the real estate market during the housing boom. According to the report, more than one-third of all home mortgages from 2006 were to people who already owned at least one home. What’s more, “in Arizona, California, Florida and Nevada, where average home prices more than doubled from 2000 to 2006, investors made up nearly half of all mortgage-backed purchases during the housing bubble,” the Associated Press reports. “Buyers owning three or more properties represented the fastest-growing segment of home owners during that time.”
When home values began to fall in 2006, investors defaulted on their loans in large numbers, accounting for more than 25 percent of seriously delinquent mortgage balances, according to the report. In investor hot-spots like Arizona, California, Florida, and Nevada, investors accounted for more than a third of seriously delinquent mortgage balances from 2007 to 2009.
The report urges lenders and regulators to take action to limit speculative borrowing in order to avoid a future housing downturn.
Daily Real Estate News
Tuesday, December 13, 2011
House flippers — made up of investors who bought up homes during the housing boom, possibly made a few upgrades to the home, and quickly resold the homes for high-dollar profit — played a larger role in causing the housing bubble than previously thought, according to a new federal report out by the Federal Reserve Bank of New York. The impact that speculative real estate investors played in driving the housing downturn has mostly been overlooked until now, the researchers note.
The speculative investors used low downpayments and subprime credit in buying up multiple homes at once, the report says. Their actions attributed to home prices in some areas being inflated, researchers say.
"This may have allowed the bubble to inflate further, which caused millions of owner-occupants to pay more if they wanted to buy a home for their family," researchers note in the report.
House flippers made up a big piece of the real estate market during the housing boom. According to the report, more than one-third of all home mortgages from 2006 were to people who already owned at least one home. What’s more, “in Arizona, California, Florida and Nevada, where average home prices more than doubled from 2000 to 2006, investors made up nearly half of all mortgage-backed purchases during the housing bubble,” the Associated Press reports. “Buyers owning three or more properties represented the fastest-growing segment of home owners during that time.”
When home values began to fall in 2006, investors defaulted on their loans in large numbers, accounting for more than 25 percent of seriously delinquent mortgage balances, according to the report. In investor hot-spots like Arizona, California, Florida, and Nevada, investors accounted for more than a third of seriously delinquent mortgage balances from 2007 to 2009.
The report urges lenders and regulators to take action to limit speculative borrowing in order to avoid a future housing downturn.
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