Wednesday, September 30, 2009
Bringing back the fun in Real Estate Investing!!
Stone Equity Group is here to inform you as to the hottest markets to invest in, how to invest with as little money out of your pocket, as well educate you in the arsenal of tools today’s investors have at their disposal such as LLCs, and 1031 exchanges. Our SEG Advisors will also provide information, services, tips and tricks in regards to their own specialization. We will cover many areas if interest for investors as well as people looking for information in but not limited to Asset Protection, Tax Incentives, Real Estate Investing, Commercial Investing, and Credit Counseling.
Where is the pot at the end of the rainbow?
Many investors have realized their pots at the end of their rainbows have disappeared, and are lost as to where to invest now.
In this Real Estate Market there is so much happening outside of our backyards. We have been looking at the places that are hot in this market place and we happen to see all fingers pointing at Texas. The reason why Texas is the big place to invest in is because of job growth. With so many people are losing their jobs all over the country there is a lot of people moving out of state and looking for a new place to call home. The big plus in Texas is a mix of affordability and job opportunity by what you can read in this article below.
Report: Dallas-Fort Worth has strongest job market in U.S.
Investors need to think their way of think from flipping to renting. The market is so volatile you cannot be sure that the foreclosure or rehab you’re trying to fix and flip has the equity at the end of the day to make it a profitable investment. Come over to SEG and see what I’m talking about.
In this Real Estate Market there is so much happening outside of our backyards. We have been looking at the places that are hot in this market place and we happen to see all fingers pointing at Texas. The reason why Texas is the big place to invest in is because of job growth. With so many people are losing their jobs all over the country there is a lot of people moving out of state and looking for a new place to call home. The big plus in Texas is a mix of affordability and job opportunity by what you can read in this article below.
Report: Dallas-Fort Worth has strongest job market in U.S.
Investors need to think their way of think from flipping to renting. The market is so volatile you cannot be sure that the foreclosure or rehab you’re trying to fix and flip has the equity at the end of the day to make it a profitable investment. Come over to SEG and see what I’m talking about.
DON'T TRUST THE SELLER
After over 30 million in real estate transactions, I have learned a couple things. We will talk about one right now, which must be a mindset, protocol, and over all rule that is critical when analyzing a property for acquisition. This important piece of knowledge has helped save me millions in potential losses and assisted in properly valuating properties. OK enough build up here it is…………..
DON’T TRUST THE SELLER
When you go into a real estate, transaction there is a paradox between the buyer and seller. The buyer wants to pay as little as possible for the property. The seller typically over values their property and expects you to pay the premium. So in this dichotomy of goals as a buyer in acquisition mode we must conduct due diligence with extreme prejudice and expect the seller to omit or manipulate facts and numbers to aide in accomplishing his/her plight. Now I understand this sounds like paranoia, but in real estate investing only the paranoid survive.
There are several angles that I typically see where this reality surfaces during my due diligence process but for the sake of time we will discuss two. The first is the misuse of terms actual and proforma. It never ceases to amaze me the back peddling that happens when you realize the financials you made the offer on have suddenly changed and your 10 cap, on the advertised “actuals”, is now a mere 8.2 cap. There are many reasons for this disconnection. First the property may have performed at a 10 cap last year as a fluke but this year back to normal it’s at a 8.2 cap. Alternatively, the owner may have been managing the property so management expenses and vacancies were low. Lastly and most often, it is a manipulation of numbers like excluding expenses, or including non-relevant income.
The second is the lack of disclosure. Typically, if you are searching for an undervalued property the majority will have issues hidden deep below the surface to avoid scaring you off. These problems are the reason for the sales price and can be fixable or potential nightmares. Your mission is to find these problems then assess the solution, feasibility and cost. They can include deferred maintenance, inflated rents with concessions, mis-management, transient tenants, environmental, obsolescence and declining neighborhoods.
So word to the wise when you are knee deep in financial analysis and the numbers click start digging deeper, and do not settle until you expose the dirt. Another suggestion is to join a real estate club specialized in real estate acquisition. One company Stone Equity Group offers members a deal review to help analyze potential properties along with access to due diligence on exclusive properties including condos, duplexes, fourplexes and multifamily in the hottest markets nationwide.
Happy Investing ~ Joshua Host
DON’T TRUST THE SELLER
When you go into a real estate, transaction there is a paradox between the buyer and seller. The buyer wants to pay as little as possible for the property. The seller typically over values their property and expects you to pay the premium. So in this dichotomy of goals as a buyer in acquisition mode we must conduct due diligence with extreme prejudice and expect the seller to omit or manipulate facts and numbers to aide in accomplishing his/her plight. Now I understand this sounds like paranoia, but in real estate investing only the paranoid survive.
There are several angles that I typically see where this reality surfaces during my due diligence process but for the sake of time we will discuss two. The first is the misuse of terms actual and proforma. It never ceases to amaze me the back peddling that happens when you realize the financials you made the offer on have suddenly changed and your 10 cap, on the advertised “actuals”, is now a mere 8.2 cap. There are many reasons for this disconnection. First the property may have performed at a 10 cap last year as a fluke but this year back to normal it’s at a 8.2 cap. Alternatively, the owner may have been managing the property so management expenses and vacancies were low. Lastly and most often, it is a manipulation of numbers like excluding expenses, or including non-relevant income.
The second is the lack of disclosure. Typically, if you are searching for an undervalued property the majority will have issues hidden deep below the surface to avoid scaring you off. These problems are the reason for the sales price and can be fixable or potential nightmares. Your mission is to find these problems then assess the solution, feasibility and cost. They can include deferred maintenance, inflated rents with concessions, mis-management, transient tenants, environmental, obsolescence and declining neighborhoods.
So word to the wise when you are knee deep in financial analysis and the numbers click start digging deeper, and do not settle until you expose the dirt. Another suggestion is to join a real estate club specialized in real estate acquisition. One company Stone Equity Group offers members a deal review to help analyze potential properties along with access to due diligence on exclusive properties including condos, duplexes, fourplexes and multifamily in the hottest markets nationwide.
Happy Investing ~ Joshua Host
PROFIT IN A DOWNTURN
As the masses huddle in the real estate crash hysteria a hand full of new adopters introduce out of the box solutions to investing profitably in a changed market. One of these companies Stone Equity Group (SEG) has rolled out another one of their Market Exploitation Strategies (MES) offering wholesale properties to their members from distressed banks and builders.
Due to the saturation of the market SEG is able to cherry pick projects in 5 star areas with strong rental fundamentals and deep discount creating huge cash flow. One of their latest projects, SEG REO Program offers investors the ability to Buy REO properties nationwide all under 20 thousand and have huge cash flow.
“When our members talk we listen, and right now they want cash flow with little to no cash outlay, so that’s been our mission.” declared Joshua Host, a principle with SEG, in a recent interview.
American industry is boom-bust with early adopters and over investors taking their place on the S-Curve. So with this re-distribution of bank funds in the real estate down turn look for the contrarians to profit. “At SEG we look at the market factors of longer hold times, unstable prices, higher rents, and lower vacancy rates then we design turn key solutions that use these factors at an advantage for our members” Joshua Host stated.
About Stone Equity Group
SEG is an educational, consulting, and networking organization that feels the best investment on Earth is Earth. SEG has built a reputation in the industry for designing blue ocean opportunities and being dedicated to serving the aspirations of its members. For more information about SEG visit www.Stoneeg.com or email info@Stoneeg.com. ~ Joshua Host
Due to the saturation of the market SEG is able to cherry pick projects in 5 star areas with strong rental fundamentals and deep discount creating huge cash flow. One of their latest projects, SEG REO Program offers investors the ability to Buy REO properties nationwide all under 20 thousand and have huge cash flow.
“When our members talk we listen, and right now they want cash flow with little to no cash outlay, so that’s been our mission.” declared Joshua Host, a principle with SEG, in a recent interview.
American industry is boom-bust with early adopters and over investors taking their place on the S-Curve. So with this re-distribution of bank funds in the real estate down turn look for the contrarians to profit. “At SEG we look at the market factors of longer hold times, unstable prices, higher rents, and lower vacancy rates then we design turn key solutions that use these factors at an advantage for our members” Joshua Host stated.
About Stone Equity Group
SEG is an educational, consulting, and networking organization that feels the best investment on Earth is Earth. SEG has built a reputation in the industry for designing blue ocean opportunities and being dedicated to serving the aspirations of its members. For more information about SEG visit www.Stoneeg.com or email info@Stoneeg.com. ~ Joshua Host
Escaping Retirement Poverty
As the wealthiest country in the world you would imagine after 45 years in the work force your retirement would be comfortable….Unfortunately statistics show 95% of Americans at the age of 65 cannot retire or have to depend on family and social systems. Additionaly more and more of the rare 5% that do retire comfortably are living longer so are forced back into the work force in their later years. When I ask most clients about their retirement plans the question is typically met with a dazed look and shoulder shrug. For some it seems retirement is a distant twinkle, and for others it is becoming the 600 pound gorrilla. The difficulty with these extremes is the first needs only slight attention to obtain future security but the idea is often shelfed because there are currently bigger fishes to fry. The latter usually need to make larger investments to secure financial security but now risk adversion and fear of failure cause analysis paralysis. There is no snake oil or secret sauce to escape retirement poverty. There is a three step process that will aid in hitting the hammock:Make a plan: This is often easier with a mentor, counselor, or friend that has the fortitude to keep you accountable. When ever I am assisting a client in making a plan it includes their current financial picture, forecasts, and future necessity. With these components we find the end term financial consideration in achieving the goal. Once this number has been established alond with the period of time til retirement we can work backwords in producing a plan to build a profitable real estate portfolio.Find a team: In any pursuit a team does not add to the likelyhood of success but rather multiplies the odds in your favor. So on the road to financial freedom to decrease your risk and speed the results make sure you have specialists in tax preparation, asset management, real estate finance, real estate acquisition, real estate management and again a mentor, consultant or friend to hold you accountable.Take Action: For most taking action can be very uncomfortable due to the unknown. A smart man once told me you have to do what’s uncomfortable until it’s comfortable, that is the only was to grow. The fact is there will be bumps in the road and it will probably be harder than you expect but isnt your family’s future securtiy worth putting in a little elbow greese? One group in particular, Stone Equity Group, is a real estate network specialized in assisting busy professionals build profitable real estate portolios in changing markets. SEG has a board of advisors that cover areas from tax strategy, asset protection, residential investments, reos, foreclosures and many other areas important in building and protecting your nest egg. Regardless of your dream remember one thing. “He who aims at nothing will hit it every time” Ancient Chinese Proverb. ~ Joshua Host
Houston is BOOMING
It was said at 55-60 a barrel Houston thrives....at over 100 a barrel Houston is on fire. But if we only wanted to focus on areas specialized in the petroleum industry Lafayette, LA or Tulsa, OK would be great candidates as well. What separates Houston from the pack is the diversification among energy, health care, tech, and financial industry that give an economic buffer to energy fluctuations. As the second largest city nationwide, with an affordability index, job market, and cost of living that rival any city in America to date Houston offers the investor's paradox of cash flow and potential appreciation like no other market.
While opportunity is vast, speculation can lead to unsatisfactory results. So to maximize the environment SEG led a market analysis to identify profitable markets. Through research two were identified, being multifamily and Duplex/Town homes in the inner Beltway. As gas prices soar and traffic worsens property values in the inner Beltway of Houston will have little way to go but up. In a search to capitalize on these findings we have negotiated discounts for SEG members on duplexes with a Houston based builder. Due to the hot market finding discounts has proved difficult, but SEG established a long term relationship that allowed these discounts on sixteen duplexes in Houston at only $94 a square foot for a nicely finished product. At the purchase price alone they are a deal, but with a $30,600 lease back they are a steal. In addition the Federal Government approved the "Tax Stimulus Act: Section 179" that allows accelerated depreciation on materials with less than a 15 year life span*. Other purchasers of these duplexes have been able to write off $100,000 year one by completing cost segregation which SEG can help to facilitate.
While opportunity is vast, speculation can lead to unsatisfactory results. So to maximize the environment SEG led a market analysis to identify profitable markets. Through research two were identified, being multifamily and Duplex/Town homes in the inner Beltway. As gas prices soar and traffic worsens property values in the inner Beltway of Houston will have little way to go but up. In a search to capitalize on these findings we have negotiated discounts for SEG members on duplexes with a Houston based builder. Due to the hot market finding discounts has proved difficult, but SEG established a long term relationship that allowed these discounts on sixteen duplexes in Houston at only $94 a square foot for a nicely finished product. At the purchase price alone they are a deal, but with a $30,600 lease back they are a steal. In addition the Federal Government approved the "Tax Stimulus Act: Section 179" that allows accelerated depreciation on materials with less than a 15 year life span*. Other purchasers of these duplexes have been able to write off $100,000 year one by completing cost segregation which SEG can help to facilitate.
GO ZONE specialist Karla Dennis joins Stone Equity Group Board of Advisors
United States of America (Press Release) May 19, 2008 -- Orange County, CA – Stone Equity Group started receiving numerous requests for Karla Dennis shortly after Ms. Dennis was a co-speaker at a recent seminar sponsored by SEG. One attendant responded “Karla was so thorough and down to earth; she simplified the GO ZONE tax benefits in a way that was easy to understand”. After numerous inquisitions and discussions SEG extended an offer for Ms. Dennis to sit on the Board of Advisors. “We have been blessed in building a Board of Advisors that are innovators in their perspective fields and parallel our company’s beliefs and values” Said Joshua Host, CEO of SEG.
SEG is tireless in their pursuit to help busy professionals build profitable real estate portfolios in changing markets. Ms. Dennis will aid SEG members in both tax consulting relating to real estate investing and tax preparation in all 50 states. The addition of Ms. Dennis to the SEG Board of Advisors and the SEG dedication to progressively add value and make financial freedom more accessible to the masses has set them aside from would be competitors.
Karla K. Dennis is a licensed Enrolled Agent. An Enrolled Agent is the designation granted to a select few who have exemplified expertise in the field of taxation and have passed a rigorous exam administered by the U.S. Treasury Department.
Ms. Dennis holds a Masters of Science Degree in Taxation from Golden Gate University and a Bachelor of Science Degree in Business Administration from California State University Dominguez Hills.
In addition to being a SEG Advisor, Ms. Dennis is the President and Founder of COHESIVE– a professional tax firm that employs distinguished tax professionals who specialize in complex tax situations, tax preparation and resolving tax issues.
Karla Dennis offers a complete tax and accounting service
to individuals and businesses. Because she has been working with clients and businesses for over 15 years, she has unsurpassed expertise in the field of accounting and taxation. Her track record includes not only preparing tax returns, but also representing clients in audits and collections issues before the Internal Revenue Service. The expertise of knowing what the IRS or other taxing authorities are looking for when your return is prepared is an indispensable benefit that she offers to her clients. Her expertise coupled with personalized service is the number one reason why clients come to her again and again. Her goal is to build a relationship with clients so they may have someone they know and trust to handle their tax and accounting needs.
Stone Equity Group (SEG) is a real estate network that is focused on assisting busy professionals build profitable real estate portfolios that cash flow. Over the last few years SEG has negotiated millions of dollars in discounts on behalf of their members and created a turn key system that takes care of everything from negotiations to property management. For more information on SEG visit Stone Equity Group.
SEG is tireless in their pursuit to help busy professionals build profitable real estate portfolios in changing markets. Ms. Dennis will aid SEG members in both tax consulting relating to real estate investing and tax preparation in all 50 states. The addition of Ms. Dennis to the SEG Board of Advisors and the SEG dedication to progressively add value and make financial freedom more accessible to the masses has set them aside from would be competitors.
Karla K. Dennis is a licensed Enrolled Agent. An Enrolled Agent is the designation granted to a select few who have exemplified expertise in the field of taxation and have passed a rigorous exam administered by the U.S. Treasury Department.
Ms. Dennis holds a Masters of Science Degree in Taxation from Golden Gate University and a Bachelor of Science Degree in Business Administration from California State University Dominguez Hills.
In addition to being a SEG Advisor, Ms. Dennis is the President and Founder of COHESIVE– a professional tax firm that employs distinguished tax professionals who specialize in complex tax situations, tax preparation and resolving tax issues.
Karla Dennis offers a complete tax and accounting service
to individuals and businesses. Because she has been working with clients and businesses for over 15 years, she has unsurpassed expertise in the field of accounting and taxation. Her track record includes not only preparing tax returns, but also representing clients in audits and collections issues before the Internal Revenue Service. The expertise of knowing what the IRS or other taxing authorities are looking for when your return is prepared is an indispensable benefit that she offers to her clients. Her expertise coupled with personalized service is the number one reason why clients come to her again and again. Her goal is to build a relationship with clients so they may have someone they know and trust to handle their tax and accounting needs.
Stone Equity Group (SEG) is a real estate network that is focused on assisting busy professionals build profitable real estate portfolios that cash flow. Over the last few years SEG has negotiated millions of dollars in discounts on behalf of their members and created a turn key system that takes care of everything from negotiations to property management. For more information on SEG visit Stone Equity Group.
Stone Equity Group appoints James Burns, Esq to its Advisory board
Stone Equity Group (SEG) announced last Friday the appointment of James Burns, J.D., LL.M.,. as the Director of Asset Management. Mr. Burns is the author of the new book “The 3 Secret Pillars of wealth” which parallels SEG’s business model. This strategic move furthers both parties’ initiative of providing a simplistic retirement path for busy professionals.
James Burns currently holds two law degrees and focuses on estate planning, wealth creation, business transactions, and wealth crisis management (asset protection).
Mr. Burns will be responsible for the structuring and implementation of asset management strategies for clientele. In addition Mr. Burns will provide seminar and webinar education for investors nationwide.
“Our number one goal is customer satisfaction, with a great reputation and tremendous experience James is the perfect compliment to help fulfill our clients’ needs.” Stated Joshua Host, CEO of Stone Equity Group.
Stone Equity Group (SEG) is currently one of the fastest growing real estate investment firms in the country; specializing in assisting busy professionals build profitable real estate portfolios that cash flow. SEG locates, underwrites and negotiates with developers nationwide in the disposition of real estate at discounted prices. These discounts are structured as an incentive package creating turnkey solutions for end term investors. SEG provides a network for investors including education, property management, and investor resources that mitigate unnecessary risks and expenses associated with real estate.
# # #
SEG has negotiated millions of dollars of discounts in Real Estate on behalf of our members. If you are interested in less risk, higher returns, and PASSIVE CASH FLOW then SEG is the perfect partner for you. With hundreds of REO properties discounted 15%-40% in the hottest markets nationwide SEG can help you build true wealth in 2008. Learn why hundreds of investors trust Stone Equity Group by registering for your password to one of the fastest growing Real Estate Investor website online.
James Burns currently holds two law degrees and focuses on estate planning, wealth creation, business transactions, and wealth crisis management (asset protection).
Mr. Burns will be responsible for the structuring and implementation of asset management strategies for clientele. In addition Mr. Burns will provide seminar and webinar education for investors nationwide.
“Our number one goal is customer satisfaction, with a great reputation and tremendous experience James is the perfect compliment to help fulfill our clients’ needs.” Stated Joshua Host, CEO of Stone Equity Group.
Stone Equity Group (SEG) is currently one of the fastest growing real estate investment firms in the country; specializing in assisting busy professionals build profitable real estate portfolios that cash flow. SEG locates, underwrites and negotiates with developers nationwide in the disposition of real estate at discounted prices. These discounts are structured as an incentive package creating turnkey solutions for end term investors. SEG provides a network for investors including education, property management, and investor resources that mitigate unnecessary risks and expenses associated with real estate.
# # #
SEG has negotiated millions of dollars of discounts in Real Estate on behalf of our members. If you are interested in less risk, higher returns, and PASSIVE CASH FLOW then SEG is the perfect partner for you. With hundreds of REO properties discounted 15%-40% in the hottest markets nationwide SEG can help you build true wealth in 2008. Learn why hundreds of investors trust Stone Equity Group by registering for your password to one of the fastest growing Real Estate Investor website online.
Fastest Growing Private Companies In Orange County Honored
Orange County Business Journal Staff
October 3, 2008
By Michael Lyster
Fast-growing private companies—including a video game store franchisor, a flat TV seller and even a provider of healthcare to prison inmates—were honored at a cocktail reception in Irvine on Thursday by the Orange County Business Journal.
The event honored the top 10 companies on the Business Journal’s list of 100 fast-growing private companies, which appears in the Oct. 6 edition of the paper.
Companies were ranked by revenue growth for the 12 months through June 2006 to the 12 months through June 2008.
The companies honored:
No. 1 Newport Beach-based Play N Trade Franchise Inc., which franchises video game stores and saw two-year growth of 1,926% to $7 million in sales.
No. 2 Orange-based American Correctional Solutions Inc., a provider of healthcare to prisons that saw 720% growth to $12.3 million in sales.
No. 3 Irvine-based Earthbound Media Group, an Internet marketing company with yearly sales of $2.5 million, up 525% from two years earlier.
No. 4 Irvine-based Vizio Inc., a seller of flat-panel TVs with yearly sales of $2.3 billion, up 480% from two years earlier.
No. 5 Mission Viejo-based Stone Equity Group, which markets unsold homes to individual investors and has yearly revenue of $1.7 million, up 477% from two years earlier.
No. 6 Costa Mesa-based Pacific Building Care Inc., a provider of janitorial and other building services with sales of $90 million, up 400%.
No. 7 Costa Mesa-based Lead Tracking Solutions Corp., a provider of advertising tracking software with sales of $1.4 million, up 361%.
No. 8 Costa Mesa-based BandCon, a provider of Internet services with sales of $14.5 million, up 323%.
No. 9 Irvine-based Neudesic LLC, a technology services provider and custom software developer with sales of $34 million, up 231%.
No. 10 Laguna Hills-based Blytheco LLC, the top reseller of business software made by Irvine’s Sage Software Inc. with sales of $23 million, up 228%.
In all, the 100 companies on the Business Journal’s fast-growing private companies have yearly sales of $27 billion, up more than 40% in the past two years.
The event honoring the top 10 companies at the Hyatt Regency Irvine drew about 450 people.
Reo Foreclosures, Foreclosure Investing, Real estate investing
Foreclosures for pennies on the Dollar?
After 5 years of record setting apreciation causing areas to increase as much as 400% between 2002 – 2006 it struck me odd at first when I put the subject line “Foreclosures for Pennies on the Dollar” on a marketing piece. At one point I remember the cavalier speculators compacent in the days of 20% appreciation counting on its buffer to marginalize negative cash flow. How were most so remiss to our boom-bust reality. In the greatest country on earth we have minimized stagnant periods but amplified volatility creating millionaires and even billionaires at every spike.
Now because of our banking relations we are picking up foreclosure and reos properties for 10 – 40 cents of current market value, which has already tumbled in most areas. I am watching the SEG REO Program make millionaires while the masses are paralyzed with fear. Why can’t we sober the sheep to opportunity knocking at the door?
The answer is we are trying every day to erase retirement proverty one client at a time. jph
Now because of our banking relations we are picking up foreclosure and reos properties for 10 – 40 cents of current market value, which has already tumbled in most areas. I am watching the SEG REO Program make millionaires while the masses are paralyzed with fear. Why can’t we sober the sheep to opportunity knocking at the door?
The answer is we are trying every day to erase retirement proverty one client at a time. jph
SEGAdvisors.tv goes LIVE
After an initial beta period SegAdvisors.tv went live yesterday to continue SEG’s progressive mission to erase retirement poverty. The free site offers financial strategy from leading experts on a wide range of topics delivered in a entertaining, well edited catalog of tv series and live shows. Series and segments can be downloaded to your Ipod to enjoy during a morning run or evening flight. The importance is to increase the financial inteligence in an entertaining format that is enjoyable, not stale and redundant. We are brining on additional advisors to increase topic range and knowledgebase and have a forum to collaborate on real estate investing. Check it out when you have a chance and give us some feedback on how we can improve. jph
REO and Foreclosure network
Call now to RSVP for the hottest REO event possibly ever……. (ok, that may be a little much)
Anyway, hundreds of properties have already been purchased through the SEG REO Program which gives small to medium investors the purchasing power to buy properties for 10 – 40 cents on the dollar. Each night learn from different SEG Advisors, industry experts and guest speakers on ways to make millions in the REO and Foreclsoure market. Dinner and refreshments will be served and seats are limited so call for availability before someone else takes your seat.
All properties under $20,000
Market values up to $171,000
Silent Auction - $0 reserve on properties
Multiple Exit Strategies
Huge cash flow $450 - $680 a Month
Dinner and refreshments
RSVP LINE (800) 212-BULK (2855) INFO www.BUYREOS.org
Will loan modifications end the foreclosure crisis?
The House has brought a proposal to the forefront that would insure loans that lenders modified terms, including reducing the interest rates, postponing payments or extending payment arrangements. The proposal would utilize funds from the infamous $700 Billion bailout to help main street and curtail the foreclosure boom. Opponents warn of the moral dangers and potential for an increase in foreclosures because many may seek lower payments offered through the loan modification proposal. The difficulty with this is a stipulation states the borrower must be 90 days late and with only a small percentage qualifying for a loan modification this could cause a spike in foreclosures.
Many states including Ohio have developed and or instituted modification options during the foreclosure process. Based on initial cases opting for modifications roughly 30% qualified for modification. Many have stated this number is exaggerated and point to numbers around 10%.
While loan modifications are an important part of the recovery process it is not a one size fits all for the foreclosure crisis and legislation should be handled with kit gloves. ~ Joshua Host
Many states including Ohio have developed and or instituted modification options during the foreclosure process. Based on initial cases opting for modifications roughly 30% qualified for modification. Many have stated this number is exaggerated and point to numbers around 10%.
While loan modifications are an important part of the recovery process it is not a one size fits all for the foreclosure crisis and legislation should be handled with kit gloves. ~ Joshua Host
Barney Frank the "over regulator"
Millions are frustrated over the need to shell out $700 Billion to bailout the financial crisis. Barney Frank the Maryland Democrat with over 40 years in public office has led the committee overseeing the bail out and foreclosure crisis.
My concern is the push for over regulation could extend and worsen the lending contraction just like an over correction to avoid a auto accident.
While Frank may see this event as proof that capitalism doesn't work. That fact is our country became the hegemony it is today and the largest philanthropic supporter of the WORLDS needs through free market capitalism. I agree regulation is needed to avoid repeating this mishap in the future but lets be smart about it Barney. ~ Joshua Host
My concern is the push for over regulation could extend and worsen the lending contraction just like an over correction to avoid a auto accident.
While Frank may see this event as proof that capitalism doesn't work. That fact is our country became the hegemony it is today and the largest philanthropic supporter of the WORLDS needs through free market capitalism. I agree regulation is needed to avoid repeating this mishap in the future but lets be smart about it Barney. ~ Joshua Host
Discovering the cure to Foreclosure-itis
While economists have confirmed we are in a recession based on 2 declining quarters in the GDP and the latest jobs report, I find it important to point out at only a 6.3% unemployment we are far from the 25% rates that plagued our country during the great depression. Unfortunately that seems only temporary. In the latest jobs report an additional 533,000 people have joined the unemployment list and economists are forecasting the potential of an increase touching double digits.
The weak job market is only a component fueling foreclosure-itis, a progressive cycle symptomatically breading itself. It was reported almost 7% of mortgages were in arrears in the third quarter, with an additional 2.9% in the foreclosure process meaning close to 10% of households are at risk of foreclosure. That is staggering.
So how do we stop foreclosure-itis?
While there is no quick fix I have a few suggestions:
1. Eliminate capital gains taxes for real estate investors for 5 years
2. Bring back stated loans for self employed borrowers based on bank statement deposits
3. Demo vacant homes to decrease the oversupply of houses
4. Create low income housing grants that keep mortgage payments at the equivalent of market rent
If I have to pick only one the elimination of capital gains would spur investment into distressed assets and stabilize the real estate market. This in turn would calm the masses and return confidence to main street. The only question is with the Democratic party taking office could they conjure the cajones? ~Joshua Host
The weak job market is only a component fueling foreclosure-itis, a progressive cycle symptomatically breading itself. It was reported almost 7% of mortgages were in arrears in the third quarter, with an additional 2.9% in the foreclosure process meaning close to 10% of households are at risk of foreclosure. That is staggering.
So how do we stop foreclosure-itis?
While there is no quick fix I have a few suggestions:
1. Eliminate capital gains taxes for real estate investors for 5 years
2. Bring back stated loans for self employed borrowers based on bank statement deposits
3. Demo vacant homes to decrease the oversupply of houses
4. Create low income housing grants that keep mortgage payments at the equivalent of market rent
If I have to pick only one the elimination of capital gains would spur investment into distressed assets and stabilize the real estate market. This in turn would calm the masses and return confidence to main street. The only question is with the Democratic party taking office could they conjure the cajones? ~Joshua Host
Foreclosure & REO Silent Auction
SEG Advisors will be hosting the REO & Foreclosure Network every Thursday night for 5 weeks starting January 15th and ending February 12th at Dave & Busters located at the Irvine Spectrum from 6-8 PM. The event offers insight into investment strategies to capitalize during this foreclosure market. Come enjoy a Silent Auction with 0 reserve properties and opportunities to purchase properties from $5k to $20k. For more information visit BuyReos.org.
LOAN MODS MAY ONLY POSTPONE THE INEVITABLE
After much anticipation for results of loan modifications, the foreclosure band-aid, a new report showed that 58% of loans modified during the first quarter of 2008 defaulted within 8 months.
This statistic is a strong indicator that while loan mods may be a great component in recovery it is primarily topical medicine when radiation is needed to remove the tumor. Loan mods more likely will only postpone the inevitable for the masses currently signing up for note modifications. One attorney specializing in loan modifications, James Burns Esq., said "When we speak with potential clients about modifying their loan or other options candidness is important to find the right solution." This honesty is the reason it is critical prospective candidates choose an attorney firm wisely.
With loan modifications now the dull saving grace to the foreclosure crisis where will they look next for solution?
~ Joshua Host
This statistic is a strong indicator that while loan mods may be a great component in recovery it is primarily topical medicine when radiation is needed to remove the tumor. Loan mods more likely will only postpone the inevitable for the masses currently signing up for note modifications. One attorney specializing in loan modifications, James Burns Esq., said "When we speak with potential clients about modifying their loan or other options candidness is important to find the right solution." This honesty is the reason it is critical prospective candidates choose an attorney firm wisely.
With loan modifications now the dull saving grace to the foreclosure crisis where will they look next for solution?
~ Joshua Host
Foreclosure rates in R.I. accelerating, fueled by job losses | REO
Job losses, declines in work hours, and other financial strains due to the deteriorating economy — more than risky loans — are now driving up mortgage default rates, economists say, and threatening to trigger another giant wave of foreclosures.
An estimated 1 in 14 homeowners in Rhode Island with a mortgage were at least three months behind on their payments at the end of September, according to a report released Friday by the Mortgage Bankers Association in Washington.
These “seriously delinquent” mortgage holders — on top of the more than 2,100 mortgage holders who entered foreclosure in Rhode Island during the third quarter — are largely the product of the deteriorating job market, economists say, and therefore even harder to rescue than their predecessors.
“You can do all the [loan] modifying you want, but if you lost your job, you can’t pay back any of your loan,” said Nicolas P. Retsinas, director of Harvard University’s Joint Center for Housing Studies. “In some ways, the worst is yet to come.”
Nationally, the first wave of foreclosures was driven primarily by investor speculation, followed by homeowners who faced “rate shocks” when interest rates on their mortgages reset, said the Mortgage Bankers Association’s associate vice president of economic forecasting, Orawin Velz. “Now, the problem becomes fundamental, which is that people are losing jobs.”
The U.S. economy has shed 1.9 million jobs this year, and slack labor demand has left more people working part time because they can’t land full-time jobs. The Economic Policy Institute in Washington estimates the number of unemployed or underemployed workers in the county at 19.6 million, or about one in eight workers.
“Until we see a turnaround in the job situation, we’re not going to see these numbers improve,” said Jay Brinkman, Mortgage Bankers’ chief economist. The increase in mortgages that are 90 days delinquent is “the highest it’s ever been,” he said.
Rhode Island has lost nearly 15,000 payroll jobs since January and the state unemployment rate as of October is 9.3 percent, tied with Michigan’s as the highest in the country.
Rhode Island also is just behind Michigan in its rate of foreclosures initiated during the third-quarter, making it sixth-highest in the country and ahead of every other state in New England. The Mortgage Bankers’ report is based on a survey of about 85 percent of all mortgage companies, commercial banks, thrifts, credit unions and other lenders
Meanwhile, the ranks of homeowners have fallen behind on their mortgages has grown. The state’s third-quarter delinquency rate (mortgages 30 days or more past due) rose to 7.3 percent, compared with 5.8 percent during the same period last year, according to he Mortgage Bankers’ report. (The delinquency rate excludes loans in foreclosure.)
“People are losing their jobs, they’ve depleted savings and 401(k)s,” said Raymond Neirinckx, of the Rhode Island Housing Resources Commission. “They’re saying, ‘What else can I do now to save my home?’ ”
Efforts by Washington lawmakers to encourage lenders to voluntarily modify mortgages “are not working,” Neirinckx said. “Tweaking interest rates or extending the terms from 30 to 40 years isn’t having a significant impact.”
Lenders are taking months to come up with modification plans, Neirinckx said, in part because the entire system is overwhelmed by the volume of work. And when they do come up with a proposal, he said, the modification is often not enough to make the mortgage affordable for the homeowner.
Federal Reserve Chairman Ben S. Bernanke last week outlined several options to help stem foreclosures, including buying delinquent mortgages and providing bigger incentives for lenders to refinance loans. He called for addressing the “apparent market failure” of lenders to modify mortgages even in cases where it was in their own economic interest to do so.
Bernanke’s proposal would go beyond the efforts announced last month by the Department of Housing and Urban Development to change the amount of the loan a lender must forgive, and allow banks to extend the mortgage’s payback period.
“The harsh reality is that many of these loans that are now in default … are outside the reach of traditional channels,” said Harvard’s Retsinas. “You’ve got to break through the thicket,” he said, by reforming bankruptcy laws and changing tax rules to create incentives for investors of mortgage-backed securities to modify loans.
—With reports from Bloomberg NewsForeclosure starts
Rhode Island ranks sixth nationwide in percentage of foreclosure actions that were initiated in the third quarter.
1. Nevada 2.47 %
2. Florida 2.31
3. Arizona 1.88
4. California 1.53
5. Michigan 1.23
6. Rhode Island 1.22
Source: Mortgage Bankers Assoc.
Foreclosure Follies
On Monday we published a letter from the FDIC complaining about our recent editorial on the agency's mortgage modification plan. Hours later, the Comptroller of the Currency released new data suggesting that the FDIC proposal may be as bad as we feared.
Background Reading
The FDIC wants to pay loan servicers to restructure delinquent loans and then have taxpayers share the losses if the loans fail again after six months. The FDIC did not appreciate that we reported private data showing that more than 50% of modified loans go delinquent again. The agency suggested that 15% might be a better estimate.
That estimate just got a lot harder to defend. Comptroller John Dugan released the default numbers on loans modified in the first two quarters of 2008, based on data from institutions servicing more than 60% of all first mortgages. "What makes these quarterly reports unique is that they are not merely surveys, but instead consist of validated, loan level data," said Mr. Dugan. "We believe the reports include the most accurate and reliable data on mortgage performance that is available today."
In today's Opinion Journal
According to Mr. Dugan, "The results, I confess, were somewhat surprising, and not in a good way." Of mortgages modified in the early part of this year, more than 35% had gone at least 60 days delinquent again after just six months, and a full 53% were 30 days delinquent or more. By eight months, this default rate had climbed to 58%. Second quarter modifications are on track to be nearly as ugly, with more than 50% of borrowers at least 30 days delinquent at the six-month mark. Come to think of it, these stinkers are going south so quickly that perhaps the FDIC's plan actually will protect taxpayers -- there won't be much left to insure after these toxic loans blow up in the first six months after modification.
Of course, that would mean that fewer foreclosures would be avoided, which is supposed to be the point of this exercise. For her part, FDIC Chairman Sheila Bair says that "The OCC's data on redefaults raises more questions than answers because it fails to define, in any meaningful way, the modifications that have redefaulted." In politics, when you don't like the data, merely wish it away.
She believes that her formula, which reduces interest rates initially but often creates larger obligations down the road, will yield fewer re-defaults than the industry average. Washington's housing bubble resulted in many loans going to borrowers who cannot or will not make their mortgage payments. Let's stop contriving ways for taxpayers to subsidize them.
From WSJ.com
Foreclosure relief unlikely until Obama in office
WASHINGTON (AP) — With job losses mounting and lawmakers preparing to funnel money to Detroit automakers, a top House Democrat said Monday that a new government effort to help borrowers avoid foreclosure will have to wait until after President-elect Barack Obama takes office.
Wall Street rallied for the second straight day with the major market indexes jumping more than 3 percent. The Dow Jones industrials' nearly 300-point advance gave the blue chips their highest close in a month.
Speaking to reporters during a housing industry forum in Washington, Rep. Barney Frank, D-Mass., said any use of $700 billion in financial industry rescue money to aid homeowners will come after President George W. Bush leaves office next month.
While the Federal Deposit Insurance Corp. has proposed to use $24 billion from the financial bailout to help borrowers, Frank declined to specify how much should be spent but said it won't require new legislation.
Frank also threatened to tie up the remaining half of the $700 billion financial industry rescue money unless the Bush administration provides some of it for borrowers facing foreclosure.
"They're not going to get the (money) unless they get very serious about the foreclosure modifications and showing us how we're going to get some lending out of the banks," said the House Financial Services Committee chairman. "At this point I don't see that happening."
The Treasury Department says $335 billion has been allocated from the first half of the program, which was enacted more than two months ago. Treasury Secretary Henry Paulson, who is overseeing the program, is weighing tapping the second $350 billion. The main goal of the program is to get financial institutions to lend money more freely again.
The Bush administration has focused mainly on voluntary industry efforts to modify loans, and those have not stopped the surge in foreclosures.
"Imagine how many foreclosures we would have if the financial system had been allowed to collapse," Neel Kashkari, director of the Treasury Department office overseeing the $700 billion program, said at the same conference.
But critics say many in the public — and lawmakers on Capitol Hill — were led to believe that some of the money would go to avoiding foreclosures and are frustrated that it has yet to do so.
In a report to be released Tuesday, a special bipartisan commission chaired by former HUD Secretaries Henry Cisneros and Jack Kemp takes aim at the Bush administration for the current foreclosure crisis, citing its lax enforcement of fair housing laws and lackluster response for problems that have disproportionately hit large poor and minority populations.
Calling the system "broken," the seven-member panel calls for the creation of an independent agency separate from the Department of Housing and Urban Development to more vigorously enforce fair housing laws.
"The federal government needs to be in the business of getting things done," said Kemp, who served under President George H.W. Bush. "And right now, fair housing enforcement is not getting done. That's why we need a new, independent agency that won't get mired in politics."
Discussion at Monday's forum, sponsored by the federal Office of Thrift Supervision, focused on how broad the government's intervention should be, rather than whether the government should play a role. The U.S. is on track for 2.25 million foreclosures this year, more than double traditional levels.
Mark Zandi, chief economist at Moody's Economy.com, said the public is likely to be more sympathetic to efforts to assist borrowers, because the link between the foreclosure crisis and the sinking economy is increasingly clear in the minds of most Americans.
"It's now in every corner of the country," Zandi said.
However, data released Monday show that more than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year already are in default again.
The data raise questions about whether government money may be better spent on creating jobs, rather than averting foreclosures, said John Reich, director of the federal Office of Thrift Supervision.
But the reports aren't detailed enough to show how well the programs are working or which borrowers have been most helped, said FDIC Chairman Sheila Bair.
The report "raises more questions than answers because it fails to define, in any meaningful way, the modifications that have redefaulted," she said in a statement e-mailed after the forum. "It's impossible to make any judgment about the redefault rates of sustainable modifications versus cosmetic modifications that by their nature are more likely to redefault."
New Jersey Gov. Jon Corzine called for a three- to six-month halt to foreclosures while the government works out a more aggressive plan. "We need a bottom-up approach ... by modifying people's mortgages and helping them stay in their homes," he said.
The U.S. economic picture has darkened over the past month. One in 10 Americans with a mortgage is either behind or in foreclosure, and more than 500,000 jobs were lost in November.
Unemployment stands at 6.7 percent, and the worldwide credit markets have only improved modestly from the freeze that led Congress to approve a $700 billion bailout before the election.
Investors seeking safety during the ongoing economic and financial peril are pouring money into Treasury securities, driving down rates on short-term bills to record lows. The Treasury Department auctioned $27 billion worth of three-month Treasury bills Monday, fetching a discount rate of 0.005 percent, and another $27 billion in six-month bills was auctioned at a discount rate of 0.300 percent, both all-time lows.
Also Monday, House Speaker Nancy Pelosi said negotiations are continuing with the White House on a $15 billion auto bailout that could go to a vote this week, and three more large U.S. employers announced layoffs.
Dow Chemical Co., based in Midland, Mich., said it will slash 5,000 jobs and shutter 20 plants to rein in costs, Maplewood, Minn.-based 3M Co. is cutting 1,800 jobs in the fourth quarter, while Anheuser-Busch InBev said it would cut about 1,400 U.S. jobs to help save the world's largest brewer at least $1.5 billion a year. Three-quarters of the job cuts will be at Anheuser's North American headquarters in St. Louis.
Elsewhere, privately held newspaper publisher Tribune Co. filed for bankruptcy. Tribune, which is controlled by real estate magnate Sam Zell, owns the Los Angeles Times, Chicago Tribune and the Baltimore Sun, plus the Chicago Cubs and Wrigley Field.
AP Writers Jeannine Aversa, Christopher S. Rugaber, Hope Yen and Daniel Wagner contributed to this report.
Foreclosure Expert Sees “Roaring Comeback” in 2009
By KELLY CURRAN
December 9, 2008
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The nation’s foreclosure hemorrhage has finally slowed — slightly, mind you — from 84,534 REO properties in October to 84,291 in November, according to the 2009 outlook from ForeclosureS.com, released Tuesday. While the decline is largely likely an artifact of a growing push to halt pending foreclosures while lenders and government officials search for solutions to the nation’s housing crisis, Alexis McGee, president at the online foreclosure investing resource says that she sees a significant decline in foreclosures as buyers return in 2009, pushing home prices up and fueling a real estate recovery.
“Recovery is underway. Affordable is back in the housing market,” says McGee. “In 2009, housing will not only recover, but we’ll see buyers leap into this market in droves, depleting our housing oversupply, and actually put higher price pressures on the market.”
That’s a pretty optimistic take, and one that stands in stark contrast to most assessments, given that well-known and respected economists including Mark Zandi at Moody’s Economy.com have suggested that the nation’s housing markets won’t be likely to see a bottom until late next year.
McGee has been preaching a brighter future for the housing market for well over a year, suggesting that investors start buying foreclosures; a cynic might suggest, of course, that she has strong self-interest in doing so.
In June of 2007, she said “the overall economy is sound, and markets will turn around,” in arguing that investors start to buy foreclosed properties. In February of this year, she suggested that investors shouldn’t “be scared off by the gloom and doom talk swirling around housing markets,” and should buy properties that were, in her eyes, on sale.
Obviously, most investors that bought in February have likely seen their investments lose money, given most regional and national home price trends this year. And as recently as November, McGee was suggesting that a drop in pre-foreclosure notices signaled a real estate bottom, rather than the more likely seasonal effect the trend has since been proven to be.
But regardless of a market that seems stubbornly unwilling to follow her predictions, McGee maintains that now is a great time for investors to buy. Low interest rates and the ability to rent out properties for positive cash flow, she says, are strong reasons to invest; of course, she also touts that investors will be able to sell their investments in late 2009 at a large profit.
Which is exactly, in our opinion, what the housing market doesn’t need right now: a swarm of investors with short-term horizons, looking to put properties on the market in late 2009, when most economists are suggesting a more organic bottom for the housing markets.
What the numbers show
ForeclosureS.com found that the number of properties repossessed by lenders following foreclosure in November is off nearly 21 percent from September’s 106,415 REO filings. “Certainly some of the drop reflects growing results of government and private efforts to keep homeowners in their homes,” said McGee, acknowledging the likely strong effect of moratorium and modification efforts.
Still, year to date, however, 12.6 of every 1,000 households nationwide have been lost to foreclosure.
The national pre-foreclosure average isn’t necessarily promising, either. Pre-foreclosures, which include notice of mortgage default and/or foreclosure auction, were up 5.57 percent in November from October’s totals, with 27.1 of every 1,000 households across the country facing some kind of foreclosure action.
McGee said pre-foreclosure numbers are likely to climb in early 2009, albeit at a much slower rate than in 2008. “Too many homeowners already are just too overextended and likely won’t seek help to work out their delinquent mortgages until after a pre-foreclosure filing against their property. That filing, it seems, is the wake-up call for many to get the help they need and sell,” she said.
“What I can tell…is that hardest hit housing markets have already hit bottom and others will follow in 2009,” she argues. “The bottom line to keep in mind: What goes down absolutely positively will go back up again.”
The only question seems to be: when? Timing, after all, is everything.
– Paul Jackson contributed to this report.
Reo Foreclsoures, foreclosures investing is timely for real estate investing.
December 9, 2008
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The nation’s foreclosure hemorrhage has finally slowed — slightly, mind you — from 84,534 REO properties in October to 84,291 in November, according to the 2009 outlook from ForeclosureS.com, released Tuesday. While the decline is largely likely an artifact of a growing push to halt pending foreclosures while lenders and government officials search for solutions to the nation’s housing crisis, Alexis McGee, president at the online foreclosure investing resource says that she sees a significant decline in foreclosures as buyers return in 2009, pushing home prices up and fueling a real estate recovery.
“Recovery is underway. Affordable is back in the housing market,” says McGee. “In 2009, housing will not only recover, but we’ll see buyers leap into this market in droves, depleting our housing oversupply, and actually put higher price pressures on the market.”
That’s a pretty optimistic take, and one that stands in stark contrast to most assessments, given that well-known and respected economists including Mark Zandi at Moody’s Economy.com have suggested that the nation’s housing markets won’t be likely to see a bottom until late next year.
McGee has been preaching a brighter future for the housing market for well over a year, suggesting that investors start buying foreclosures; a cynic might suggest, of course, that she has strong self-interest in doing so.
In June of 2007, she said “the overall economy is sound, and markets will turn around,” in arguing that investors start to buy foreclosed properties. In February of this year, she suggested that investors shouldn’t “be scared off by the gloom and doom talk swirling around housing markets,” and should buy properties that were, in her eyes, on sale.
Obviously, most investors that bought in February have likely seen their investments lose money, given most regional and national home price trends this year. And as recently as November, McGee was suggesting that a drop in pre-foreclosure notices signaled a real estate bottom, rather than the more likely seasonal effect the trend has since been proven to be.
But regardless of a market that seems stubbornly unwilling to follow her predictions, McGee maintains that now is a great time for investors to buy. Low interest rates and the ability to rent out properties for positive cash flow, she says, are strong reasons to invest; of course, she also touts that investors will be able to sell their investments in late 2009 at a large profit.
Which is exactly, in our opinion, what the housing market doesn’t need right now: a swarm of investors with short-term horizons, looking to put properties on the market in late 2009, when most economists are suggesting a more organic bottom for the housing markets.
What the numbers show
ForeclosureS.com found that the number of properties repossessed by lenders following foreclosure in November is off nearly 21 percent from September’s 106,415 REO filings. “Certainly some of the drop reflects growing results of government and private efforts to keep homeowners in their homes,” said McGee, acknowledging the likely strong effect of moratorium and modification efforts.
Still, year to date, however, 12.6 of every 1,000 households nationwide have been lost to foreclosure.
The national pre-foreclosure average isn’t necessarily promising, either. Pre-foreclosures, which include notice of mortgage default and/or foreclosure auction, were up 5.57 percent in November from October’s totals, with 27.1 of every 1,000 households across the country facing some kind of foreclosure action.
McGee said pre-foreclosure numbers are likely to climb in early 2009, albeit at a much slower rate than in 2008. “Too many homeowners already are just too overextended and likely won’t seek help to work out their delinquent mortgages until after a pre-foreclosure filing against their property. That filing, it seems, is the wake-up call for many to get the help they need and sell,” she said.
“What I can tell…is that hardest hit housing markets have already hit bottom and others will follow in 2009,” she argues. “The bottom line to keep in mind: What goes down absolutely positively will go back up again.”
The only question seems to be: when? Timing, after all, is everything.
– Paul Jackson contributed to this report.
Reo Foreclsoures, foreclosures investing is timely for real estate investing.
Texas' swift foreclosure process puts struggling homeowners in a bind
By DAVE MICHAELS / The Dallas Morning News
WASHINGTON – Even as banks streamline programs to renegotiate troubled mortgages, efforts to help Texas homeowners are being hindered by the state's fast-track foreclosure process, according to housing counselors and government officials.
In other states, foreclosure can take as long as four months, giving the borrower more time to negotiate a better loan or catch up with missed payments. But in Texas, the process starts sooner and may take as little as 41 days to complete – the quickest in the country, according to a 2006 study by the Texas Department of Housing and Community Affairs.
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"The biggest obstacle we have in Texas is we are a very fast foreclosure process state," said Linda Davis-Demas, assistant housing director for the Consumer Credit Counseling Service of Greater Dallas, which works with borrowers. "We are always up against the gun in regards to that."
Texas' foreclosure laws are so adverse to struggling homeowners that state Attorney General Greg Abbott plans to push the Legislature next month to lengthen the time homeowners have to "cure" a default, from 20 to 45 days.
Under state law, a homeowner who doesn't catch up on payments after receiving the 20-day notice can lose his or her home.
Mr. Abbott, who obtained a predatory-lending settlement against Countrywide Financial Corp. that could lead to more affordable loans for 30,000 Texans, said the 20-day window is far too short in the current economic environment.
"Twenty days, when you count the fact that people have things going on, that is just real short notice to get anything done," Mr. Abbott said in a phone interview. "Forty-five days more than doubles the length of time."
Texas' residential foreclosure laws haven't changed since 1984, after state lawmakers decided borrowers should be given 20 days before foreclosure could start, said Judon Fambrough, a lawyer and senior lecturer at Texas A&M University's Real Estate Center.
Texas mortgage bankers don't think the law needs to be changed now, said Larry Temple, general counsel for the Texas Mortgage Bankers Association. Mr. Temple said mortgage servicers are "anxious" to help struggling homeowners.
"We believe the time frames now are pretty fair and reasonable," Mr. Temple said. "It's after the borrower is in default and has failed to make a payment or two that they are given notice and are in default. If they don't [cure it], then comes the foreclosure.
"You put all of that together, and in most cases the borrowers are 90 or 100 days delinquent," he said.
Housing crisis
The housing crisis has been most acute in states such as California and Nevada, where many borrowers took on exotic loans to finance homes that always seemed to appreciate in value.
The foreclosure process takes longer there than in Texas, indicating that more time doesn't necessarily mean borrowers will find a way to save their homes.
Last week, the Mortgage Bankers Association reported that 11.5 percent of subprime loans in Texas had either started the foreclosure process or were more than 90 days behind in payments. The figure was 9 percent at the same point in 2007, according to the MBA, which says state foreclosure laws can complicate the loan-modification process.
Dallas-Fort Worth had more subprime loans than Houston and San Antonio combined, according to a study by the Federal Reserve Bank of Dallas. Many of the area's subprime borrowers got adjustable-rate mortgages, whose interest rates reset to much higher levels after two or three years.
Forrest Brannon of Dallas was one such borrower.
Mr. Brannon, a 78-year-old veteran, is running out of time to save his home after he got behind on his monthly payments, which almost doubled in recent months, from $379 to $700.
Mr. Brannon said his finances were imperiled when he and his wife had to spend more money on health care, including a $3,000 bill for dental work. He got behind on his mortgage, then received a notice his home would be sold about a month ago.
First Franklin Loan Services, his servicer, has agreed to work with him, Mr. Brannon said. But he has less than a month to find a solution, he said.
"I can't hardly write, and now I've got to send bank statements and fax forms," said Mr. Brannon, a former postal worker who lives off disability from an injury he sustained on the job. "I feel I should have more time to get these mortgage payments together. The thing about it is, I could pay a little extra and get caught up."
Bill Halldin, a spokesman for First Franklin, said he couldn't discuss Mr. Brannon's case specifically. But he said the company reaches out to borrowers "dozens of times" before initiating foreclosure. The information includes referrals to mortgage counseling services, he said.
"Unfortunately, often borrowers do not respond to our requests and in some instances [we] are unable to work out a solution," Mr. Halldin said.
Vexing problem
Mr. Brannon's experience illustrates a problem that is vexing lawmakers and housing experts. Despite widely publicized efforts to rescue troubled homeowners, foreclosures are rising, and experts are divided over whether loan workouts are working.
A report this week by federal regulators showed that more than half of borrowers whose loans were modified in the first half of 2008 have since fallen behind on payments.
"This raises questions ... about what modifications work and what ones don't work, and what else needs to be done," said Bryan Hubbard, a spokesman for the Office of the Comptroller of the Currency, which regulates national banks.
Federal Deposit Insurance Corp. chairman Sheila Bair, a leading advocate of loan modifications, said many servicers still aren't changing loans enough to make them affordable.
Sherry Randall, office director of housing for Acorn Housing in Dallas, agreed: "A lot of them are being stuck on repayment plans or given loan modifications, where there are changes but the payments are still high."
Some are tempting foreclosure even as they wait for new loans. That's because most servicers are modifying loans for only the most delinquent borrowers – those who are more than 90 days behind. By that time, the foreclosure process could have already started for some Texans.
JoAnn DePenning, statewide coordinator for the Texas Foreclosure Prevention Task Force, said Texas should push to include information about foreclosure-prevention resources with notices that are sent to delinquent borrowers. Mr. Abbott's recommendation "is the first very strong push to change our process," Ms. DePenning said. But "if you are just saying we are giving you longer and aren't changing any other part of the process, you are delaying the inevitable."
Staff writer Jessica Meyers in Dallas contributed to this report.
Foreclosure Storm Will Hit U.S. in ‘09 Amid Job Loss (Update1)
By Dan Levy
Dec. 11 (Bloomberg) -- U.S. foreclosure filings climbed 28 percent in November from a year earlier and a brewing “storm” of new defaults and job losses may force 1 million homeowners from their properties next year, RealtyTrac Inc. said.
A total of 259,085 properties got a default notice, were warned of a pending auction or were foreclosed on last month, the seller of default data said in a report today. That’s the fewest since June. Filings fell 7 percent from October as state laws and lender programs designed to delay the foreclosure process allowed delinquent borrowers to stay in their homes.
“We’re going to see a pretty significant storm next year,” Rick Sharga, executive vice president of marketing for Irvine, California-based RealtyTrac, said in an interview. “There are two or three clouds that suggest a pretty heavy downpour.”
Rising unemployment, expiring foreclosure moratoriums and state efforts that “run out of steam” will push monthly filings toward the record of more than 303,000 set in August, Sharga said. The number of homes that revert to lenders, the last stage of foreclosure and known as “real estate owned” or REO properties, will increase to 1 million from as many as 880,000 this year, he said.
Job Losses
“The forces leading to foreclosure are hard to offset in most cases and impossible in many,” Robert Hall, a Stanford University professor and chairman of the National Bureau of Economic Research committee that calls the beginnings and ends of recessions, wrote in an e-mail. “Job loss is a major source of defaults at all times, and job losses are running at extreme levels now.”
Initial jobless claims increased to 573,000 in the week ended Dec. 6, the highest level since November 1982, while the number of workers staying on benefit rolls reached 4.429 million, also the most since 1982, the Labor Department said today. U.S. companies slashed payrolls by 533,000 last month, the fastest pace in 34 years, for a total of 1.9 million job cuts so far this year.
“The labor market is facing its worst crisis since 1982, and it is certainly not over yet,” said Harm Bandholz, a U.S. economist at UniCredit Markets and Investment Banking in New York.
Home prices have fallen by about a fifth from the mid-2006 peak, according to the S&P/Case-Shiller home price index.
‘Devastating Consequences’
“The decline in prices and its devastating consequences” will continue next year with no indication of when they will stabilize, Hall said. Programs that modify the terms of loans, including efforts by Fannie Mae, Freddie Mac, JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. can’t help thousands of borrowers, he said.
“Something like 70 percent of subprime foreclosures are beyond the reach of modification programs because the owners are investors, because the owner is in default for the second time on the property, or because the owner has disappeared,” Hall said.
The share of mortgages delinquent by 30 days or more in the third quarter rose to a seasonally adjusted 6.99 percent while loans already in foreclosure rose to 2.97 percent, both all-time highs, the Mortgage Bankers Association said in a Dec. 5 report. The gain in delinquencies was driven by an increase in loans with payments 90 days or more overdue.
No Improvement
“Until we see a turnaround in the job situation, we’re not going to see these numbers improve,” said Jay Brinkmann, chief economist of the Washington-based bankers group.
In November, one in every 488 U.S. households received a foreclosure filing, RealtyTrac said. Nevada had the highest rate for the 23rd straight month with one in 76 households in some stage of foreclosure, more than six times the national average. Filings more than doubled from a year earlier to 13,962.
Florida had the second-highest rate, one in 173 households, and the second-most filings at 49,190, an increase of 68 percent. Arizona had the third-highest rate, one in 198 households, and ranked fifth in total filings with 13,136, up 128 percent.
California, Michigan, Georgia, Ohio, Colorado, Utah and Idaho also ranked among the top 10 highest rates, said RealtyTrac, which collects property data from more than 2,200 U.S. counties that represent more than 90 percent of the population.
California
California had the most filings with 60,491, up 51 percent from a year earlier, and a rate of one filing for every 218 households, more than twice the national average.
Michigan ranked third in filings with 14,594, up 27 percent, and had a rate of one for every 309 households, according to RealtyTrac. Nevada, Arizona, Ohio, Georgia, Illinois, Texas, and Virginia were among the top 10 states with the most filings.
New Jersey had the 15th highest rate, one in 622 households, and had 5,582 filings, up 32 percent from a year earlier. New York had the 39th highest rate, one in 3,040 households, and had 2,601 filings, a decrease of 55 percent, RealtyTrac said.
Florida had three metropolitan areas among the top 10 highest rates, including Cape Coral-Fort Myers in first place with one in 59 households in a stage of foreclosure. Fort Lauderdale was seventh at one in 117 households, and Port Lucie- Fort Pierce was eighth at one in 118 households.
Las Vegas ranked second at one in every 61 households in a stage of foreclosure.
California had six metro areas in the top 10, led by Merced in third place with a rate of one in 76 households in a stage of foreclosure. Modesto, Stockton and Riverside-San Bernardino ranked fourth through sixth, Bakersfield was ninth and Vallejo- Fairfield was 10th, according to RealtyTrac.
To contact the reporter on this story: Dan Levy in San Francisco at dlevy13@bloomberg.net
Last Updated: December 11, 2008 12:33 EST
Reo Foreclosures and foreclosure investing are the basis for real estate investing in today's market.
Monday, September 28, 2009
California comes out on top in foreclosure filings
LA TIMES - Foreclosure filings -- that includes default notices, auction sale notices and bank repossessions -- were reported for 60,491 California residences in November, according to Irvine-based RealtyTrac, the most of any state. That was up 6% from the previous month (after two months of decreases) and a 51% increase from November 2007.
Just what are we talking about here? That translates into 1 in every 218 houses or more than two times the national average.
Some of the California metro areas making the U.S. Top 10 list for foreclosure filings and where they ranked:
Upland 3. Merced, 1 in 76
4. Modesto, 1 in 93
5. Stockton, 1 in 94
6. Riverside-San Bernardino, 1 in 107
9. Bakersfield, 1 in 129
10. Vallejo-Fairfield, 1 in 133
Nationwide, RealtyTrac showed a 7% decrease in November foreclosure filings (1 in 488) from October, but a 28% increase since November 2007.
As to why there was a November decrease nationally, RealtyTrac CEO James J. Saccacio cited state laws that have extended the foreclosure process, loan modification programs and holiday foreclosure moratoriums. "There are several indications, however, that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months."
I think he's got that right. The November slowdown was merely a delay of much more to come.
For the record: As commenter TMSELF correctly points out, California is not the leader in percent of homes in foreclosure filing: "Nevada maintained the nation’s No. 1 foreclosure rate, with one in every 76 housing units receiving a foreclosure filing during the month — more than six times the national average," according to RealtyTrac. Also ahead of California, Florida with 1 in 173 homes and Arizona with 1 in 198 homes.
-- Lauren Beale
Foreclosure Workshop Saturday In Arizona
Financially troubled homeowners will get an insight into the mortgage foreclosure process and advice on avoiding it at a workshop scheduled Saturday at Gilbert Civic Center.
The workshop, part of a Valley-wide effort by the Leadership Centre and the Arizona Foreclosure Prevention Task Force to stem the rising tide of foreclosures, is aimed at teaching families about crisis budgeting and strategies for keeping their homes.
Residents who live in neighborhoods plagued by foreclosed properties will also get information on how to maintain their own property values amid the blight that often comes with abandoned houses.
Several speakers are lined up for the event, including representatives from the Don't Borrow Trouble Campaign and Arizona Saves. The goal is to help people before it's too late, said Cheri Horbacz with the task force, which also plans a workshop Jan. 10 in Mesa.
Similar workshops elsewhere in the Valley have brought in crowds of 500 people; one in Glendale drew 1,800.
Participants will learn how to talk to their lenders about loan modifications because about half of homeowners facing foreclosures fail to talk with their lender during the process, said Patricia Garcia-Duarte, task force chairwoman.
"We want to make sure people feel comfortable. The bank is calling, but they may have an option," Garcia-Duarte said.
Beleaguered owners will also learn how to save money, and maybe their homes, even when facing a foreclosure. A class will teach 90-day crisis budgeting, said Jennifer Quillin with Arizona Saves.
Quillin said many lenders require money up front if a loan modification is agreed on. Even if terms can't be reached, homeowners should still trim their budgets to save money, she said.
"If they are not able to save their home, they'll need that money to move out," Quillin said. "It's not a 'no bill holiday' when you can't make a mortgage payment."
Speakers will also touch on the tax ramifications of foreclosures and what to expect during legal proceedings.
Mark Lines, an attorney with Shaw and Lines, will speak on trustee sales and personal liabilities that could be retained after a foreclosure.
Organizers hope people will leave the workshop energized to survive the down market.
"They'll walk out feeling like they are the CEO in charge of their company and no one cares more about their money than they do," Quillin said.
Foreclosures on the second wind
After a flurry of foreclosures over the last 18 months the fallout from toxic subprime loans has started to wain. Foreclosure investments all the rage have impacted REO portfolios held by banks to just under 900k. This fact does not note the second wave of foreclosures to hit the market between 2009 to 2011 expected to be around 4 million.
The reason for the second waive of REO and Foreclosures is the adjustable rate prime mortgages structures on 3, 5, 7 and 10 year fixed periods after which may reset into substantially larger payments based on 1 - 2 percent rate increases or balloon forcing an accelerated payment. While mortgage backed securities typically utilized a 3% default rate for valuations some lenders are finding 12% of their portfolios in some stage of delinquency or foreclosure.
The office of the Thrift Supervision and the Controller of Currency released a 3rd quarter report putting a scare into the already fragile housing market illustrating new findings. The report, which covers the third quarter of the year, was the second such indication of the effectiveness -- or lack thereof -- of new efforts at foreclosure mitigation. It examined the portfolios of nine national banks and five thrifts, including JPMorgan Chase (NYSE: JPM), Citigroup (NYSE: C), Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC), and First Horizon (NYSE: FHN), representing more than 60% of all U.S. mortgages outstanding.
As detailed in the report, the first since the initial tabulation was put out in June, new foreclosure initiatives actually fell by 2.6% to 281,298 in the September quarter (largely due to mortgage relief programs). But a perhaps more important metric, foreclosures completed, increased by 8%, while the total number of foreclosures in process rose by 11% to 617,642.
There was also a disturbing new trend in the report released by Comptroller of the Currency John C. Dugan: More than half of the mortgages modified in the first quarter to benefit struggling borrowers had fallen back into delinquency, once again more than 30 days past due by the end of September.
Real estate investments in the foreclosure and reo space are heating up. For more information on Foreclosure investments contact Stone Equity Group
SEG Advisors.Tv big hit for real estate investors
When SEG was started it had a mission of erasing retirement poverty through real estate investing. SEG has released SEG Advisors.Tv to further its vision which offers investors free access to real estate investment videos from leading advisors. Videos are being added constantly and cover Tax Strategy, Real Estate Investing, Asset Protection, and Asset Management. A forum is also available which covers similar topics in a live setting in the SEG community.
For more information on SEG Advisors.Tv.
For more information on SEG Advisors.Tv.
Foreclosures Swarm Las Vegas
I knew Las Vegas would get hit hard by foreclosures when my friend bought a condo there for $300k a couple years ago. With nothing but open desert for miles around there's no way that a 2BR condo could be worth 300,000 crispies!
I don't call this market downsizing, I call it "right-sizing". Vegas cannot grow into perpetuity, like anything else there is a ceiling. As sad as it is, sooner or later many in construction and the businesses its' support industries will have to find the next boomtown. In their wake will be many, many foreclosed homes that whose prices will have to come back down to earth.
Vegas was, and will probably remain to be the playground for those in the Southern California area as well as an international gambling destination. I believe, like the mountain communities surrounding Los Angeles and San Diego, many of the homes in Las Vegas will soon be vacation properties.
You might be able to buy a vacation house there for the cost of a rough weekend pretty soon!
Foreclosure Filing Rate Climbed to a Record High
Foreclosures are hitting record highs according to recent industry report submitted by RealtyTrac. As per RealtyTrac, an online firm specialized in foreclosure properties, states that foreclosure filings which includes auction sale notices, home-loan default notices and bank repossessions, were reported a record high in April, 2009. The study shows that one in every 374 U.S.households received a foreclosure filing in April which is in fact the maximum monthly foreclosure rate ever posted since RealtyTrac began issuing its report in January 2005.
Some states have witnessed a steep record high in foreclosure activity in comparison to last year. Nevada continues to post the nation's highest foreclosure activity rate. In April, one in every 68 housing units in the Nevada state received a foreclosure filing, which is actually five times more than the national average. Total foreclosure activity in Nevada was up 111% from April 2008. In addition to this, Florida is a second state that has shown second highest rise in foreclosure activity among the other states in April. Total foreclosure filing in Florida was up 75% from April 2008. With rise of 42% from April 2008, California posted the nation's third highest foreclosure activity rate.
The continuous slow down in jobs market and price depreciation had a significant effect on foreclosure levels. New housing affordability has turn out to be the prime concern and as a result deeply discounted foreclosure market holds for more than half of home sales activity. In fact in coming few months, RealtyTrac even estimates the foreclosure filing will further continue to increase till the world's largest economy struggles to overcome from its second year of recession.
Housing market in US will continue to fall and experts even expect the peak of foreclosure activity now. Though the house market is down and price will continue to decrease, but if you are looking to buy any of the foreclosure property, you must take several factors in consideration like the quality and amenities of the neighborhood and much more.
For more information on foreclosure or any guidance in foreclosure investment, contact Stone Equity Group (stoneeg.com). The group specializes in assisting busy professionals build profitable real estate portfolios in changing markets. Over the years, it has built relationships with banks and large lending institutions to help liquidate non-performing assets.
Some states have witnessed a steep record high in foreclosure activity in comparison to last year. Nevada continues to post the nation's highest foreclosure activity rate. In April, one in every 68 housing units in the Nevada state received a foreclosure filing, which is actually five times more than the national average. Total foreclosure activity in Nevada was up 111% from April 2008. In addition to this, Florida is a second state that has shown second highest rise in foreclosure activity among the other states in April. Total foreclosure filing in Florida was up 75% from April 2008. With rise of 42% from April 2008, California posted the nation's third highest foreclosure activity rate.
The continuous slow down in jobs market and price depreciation had a significant effect on foreclosure levels. New housing affordability has turn out to be the prime concern and as a result deeply discounted foreclosure market holds for more than half of home sales activity. In fact in coming few months, RealtyTrac even estimates the foreclosure filing will further continue to increase till the world's largest economy struggles to overcome from its second year of recession.
Housing market in US will continue to fall and experts even expect the peak of foreclosure activity now. Though the house market is down and price will continue to decrease, but if you are looking to buy any of the foreclosure property, you must take several factors in consideration like the quality and amenities of the neighborhood and much more.
For more information on foreclosure or any guidance in foreclosure investment, contact Stone Equity Group (stoneeg.com). The group specializes in assisting busy professionals build profitable real estate portfolios in changing markets. Over the years, it has built relationships with banks and large lending institutions to help liquidate non-performing assets.
Benefits of Buying Bank Foreclosure Properties | Real Estate Investing
The trend of buying foreclosure properties has witnessed a steep rise in the past couple of years. Today, banks and other financial institutions around the world have an abundance of bank foreclosure auctions and the growth of foreclosures is expected to continue in next few years.
Buying a bank owned property offers the buyer several
advantages over buying a foreclosure. The major advantage of buying from a bank is th at there are no liens or judgments on the property and there are no back taxes due. In addition, there are no tenants to deal with or evict and the property evaluation process can be done easily. Moreover, every bank foreclosure has reasonable down payments and most times, better interest rates.
A foreclosure investment can be a real benefit if the property the buyer purchased does not require any repair. This can allow the buyer to purchase the property quickly without any delays. In addition to this, there are no unpaid taxes to be concerned about and no issues with evicting the former owners. In most cases, banks assist you in acquiring the property so they can get it off their books as quickly as possible.
Another option is reselling the foreclosure to another buyer and making a profit. This has been the most common procedure adapted by many real estate agents. In addition, the buyer can do some cosmetic renovation on the property to increase the value of the home and result in an even higher return for the investor.
Bank foreclosures are also referred to as "REO" properties (or Real Estate Owned Properties), and it is a common practice for banks to sell off these properties as quickly as they can to eliminate the costs incurred to maintain them. REO properties are many times great buys because the buyer usually pays below market value for the home. Banks typically sell these properties in "bulk" to those investors who can buy multiple properties at one time. "Buying in Bulk" can be the most advantageous way to buy property and generate the largest profits.
The last key benefit of buying a bank foreclosure is that banks are usually more open to negotiating the terms and conditions of the deal with the buyer. For example, banks may offer buyers better financing options than they would offer on traditional properties. Acting as a lending institution gives banks the flexibility to settle the terms and conditions of the loan more efficiently and in a faster time frame.
Buying REO Foreclosures - The Best Way to Invest in Real Estate
An REO is real estate owned by the bank. The term REO can be defined as a specific type of property, but in real estate this acronym actually indicates that the property in question has been foreclosed on and has been taken back by the mortgage lender or trustee.
Over the past few years, buying
REO foreclosures has gone though a dramatic change and has witnessed a steep rise in sales. In comparison to other forms of real estate investments, bank foreclosures are creating many new wealthy investors due to the potential return on investment these homes can generate. In addition, the number of bank foreclosures has increased dramatically in numbers which allows buyers to hand pick properties that meet their specific needs and investment purposes. In the marketplace today, investing in REO foreclosures has become a lucrative business for real estate investors.
Benefits of Buying REO Foreclosures
Buying REOs can be a very lucrative investment opportunity and a great way to get the best deal on a new house. There are a variety of benefits to buying REOs including:
Minimum Risk - Among the different types of bank foreclosed properties - pre-foreclosures, foreclosure at auctions or HUD foreclosures -- REOs offer the buyer the least amount of investment risk. REOs are generally properties that have survived a foreclosure auction and now belong in the lender's inventory of non-performing assets. The banks maintain these properties and generally are free of liens and other encomberances.
Availability - Compared to other foreclosure properties, REOs are easier to locate. All you need to do is to contact a mortgage company or bank. They will provide you with a list of REOs in your area. Many banks have their own REO Departments and agents that will work with you directly to find properties available.
Below Market Value - One of the prime benefits of buying a REO property is most REO properties are available at below market value. The reason for this is that the bank is liable for the taxes on the property and they generally prefer to sell it to you at below market value and get it off their books.
Great ROI-Return on Investment - Reselling a foreclosure home can provide a great return on your investment. You may not be interested in buying a foreclosure property for yourself, but you still have the option to make a profit by reselling it. After all, this has been the most frequent practice used by many real estate agents to generate income. Moreover, a little renovation work can further add to the value of the property and generate higher returns.
Buying foreclosure properties is one of the best ways to generate profit in the real estate market today. However, before you finalize your purchase, make sure you do your due diligence and research the property so you feel comfortable with the purchase. It's important to research as much as you can about the area, current housing prices, planned developments, proximity to stores, the town, etc. This research can save you many headaches and problems down the road.
Over the past few years, buying
REO foreclosures has gone though a dramatic change and has witnessed a steep rise in sales. In comparison to other forms of real estate investments, bank foreclosures are creating many new wealthy investors due to the potential return on investment these homes can generate. In addition, the number of bank foreclosures has increased dramatically in numbers which allows buyers to hand pick properties that meet their specific needs and investment purposes. In the marketplace today, investing in REO foreclosures has become a lucrative business for real estate investors.
Benefits of Buying REO Foreclosures
Buying REOs can be a very lucrative investment opportunity and a great way to get the best deal on a new house. There are a variety of benefits to buying REOs including:
Minimum Risk - Among the different types of bank foreclosed properties - pre-foreclosures, foreclosure at auctions or HUD foreclosures -- REOs offer the buyer the least amount of investment risk. REOs are generally properties that have survived a foreclosure auction and now belong in the lender's inventory of non-performing assets. The banks maintain these properties and generally are free of liens and other encomberances.
Availability - Compared to other foreclosure properties, REOs are easier to locate. All you need to do is to contact a mortgage company or bank. They will provide you with a list of REOs in your area. Many banks have their own REO Departments and agents that will work with you directly to find properties available.
Below Market Value - One of the prime benefits of buying a REO property is most REO properties are available at below market value. The reason for this is that the bank is liable for the taxes on the property and they generally prefer to sell it to you at below market value and get it off their books.
Great ROI-Return on Investment - Reselling a foreclosure home can provide a great return on your investment. You may not be interested in buying a foreclosure property for yourself, but you still have the option to make a profit by reselling it. After all, this has been the most frequent practice used by many real estate agents to generate income. Moreover, a little renovation work can further add to the value of the property and generate higher returns.
Buying foreclosure properties is one of the best ways to generate profit in the real estate market today. However, before you finalize your purchase, make sure you do your due diligence and research the property so you feel comfortable with the purchase. It's important to research as much as you can about the area, current housing prices, planned developments, proximity to stores, the town, etc. This research can save you many headaches and problems down the road.
S.E.G | Real Estate Investing Specialists |
Stone Equity Group (SEG) specializes in assisting busy professionals build profitable real estate portfolios in changing markets. Over the years, SEG has built relationships with banks and large lending institutions to help liquidate non-performing assets. These relationships have allowed SEG the opportunity to develop the SEG REO Program, which gives SEG clients the opportunity to buy foreclosures homes, properties and REOs for pennies on the dollar. One example recently a client purchased a REO investment under the SEG REO Program for $29,900 and the market value was $180,000. While this is above average it gives you a scope of the opportunity. Whether you like him or not, Donald Trump, recently said there will be more millionaires made in this market than any other in our lifetime. For a username and password to our investor website click here or call us toll free at 1 ( 800 ) 212 - BULK .
Foreclosure Investing, Real Estate Investing, Real Estate Investing California, Real Estate Investment Firm, Reo Foreclosure Investing,
Visit http://www.stoneequitygroup.com For more information.
Foreclosure Investing, Real Estate Investing, Real Estate Investing California, Real Estate Investment Firm, Reo Foreclosure Investing,
Visit http://www.stoneequitygroup.com For more information.
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