Thursday, January 19, 2012
New home construction gathers momentum
New home construction gathers momentum: New home construction slowed slightly in December after a strong November showing, but was still much more active than a year earlier.
Mortgage refinancers rush to avoid fee increase
Mortgage refinancers rush to avoid fee increase: Borrowers are crowding mortgage offices to refinance before higher fees go into effect.
Snag lower rates with serial refinancing?
Snag lower rates with serial refinancing?: Serial refinancing is usually a bad idea, but there are exceptions that make it a smart move.
Wednesday, January 18, 2012
Best Type of Property for 1st Time Real Estate Investors?
by Fortune Builders:
What is the best time of property for those new to real estate investing to start with?
You have just finished your real estate investing education program and you are full of inspiration and passion to get out there and make money. So what type of property or deal should you take on first?
Perhaps we should start with some of the things you may want to avoid on your first deal while you get your feet wet and get a better feel for the business.
You may want to avoid:
Don’t Own a Home Yet?
Owning a home isn’t a requirement to start real estate investing but going through the process yourself can teach you volumes about the business. A great way to get started is by buying a multifamily property like a duplex which can give you your own piece of the American Dream which is paid for by the tenant or tenants in the other units. This may not snag you thousands tomorrow but the hundreds or thousands you save on your monthly housing payment can be used to fuel your real estate investing while your property builds equity which you can cash in on to buy your real dream home later.
Low on Cash & Credit?
If you don’t have much cash to invest, your credit isn’t great, your tolerance for risk is low and you need to make money fast then assigning or flipping contracts may be the best move. This means no need to borrow money or be a master of marketing yet. Simply find great real estate investing deals and pass them off or partner with other investors who have the experience and resources for a quick payday.
Properties & Real Estate Investing Strategies You are Familiar with
May be it is purchasing a vacation home in your favorite holiday spot which you can use and rent out for a profit, investing in student housing where your kids go to college, the strip mall your office is located in, the house down the street you know you can get for half of what it is worth and that you know you can resell easily.
by Fortune Builders:
What is the best time of property for those new to real estate investing to start with?
You have just finished your real estate investing education program and you are full of inspiration and passion to get out there and make money. So what type of property or deal should you take on first?
Perhaps we should start with some of the things you may want to avoid on your first deal while you get your feet wet and get a better feel for the business.
You may want to avoid:
- Major rehabs
- Homes with structural issues
- Complex commercial property deals
- Taking on a lot of debt which requires large monthly payments
Don’t Own a Home Yet?
Owning a home isn’t a requirement to start real estate investing but going through the process yourself can teach you volumes about the business. A great way to get started is by buying a multifamily property like a duplex which can give you your own piece of the American Dream which is paid for by the tenant or tenants in the other units. This may not snag you thousands tomorrow but the hundreds or thousands you save on your monthly housing payment can be used to fuel your real estate investing while your property builds equity which you can cash in on to buy your real dream home later.
Low on Cash & Credit?
If you don’t have much cash to invest, your credit isn’t great, your tolerance for risk is low and you need to make money fast then assigning or flipping contracts may be the best move. This means no need to borrow money or be a master of marketing yet. Simply find great real estate investing deals and pass them off or partner with other investors who have the experience and resources for a quick payday.
Properties & Real Estate Investing Strategies You are Familiar with
May be it is purchasing a vacation home in your favorite holiday spot which you can use and rent out for a profit, investing in student housing where your kids go to college, the strip mall your office is located in, the house down the street you know you can get for half of what it is worth and that you know you can resell easily.
Foreclosure free ride: 3 years, no payments
Delinquent borrowers facing foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight.
Among the tactics: Challenging the bank's actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, declaring bankruptcy.
It takes much longer than that in Florida, where the process averages 1,027 days, nearly 3 years. In D.C., foreclosure averages 1,053 days and delinquent borrowers in New York often stay in their homes for an average of 906 days.
And while some borrowers are looking for ways to make good with lenders and get their homes back, many aren't paying a dime. Nearly 40% of homeowners in default have not made a payment in at least two years, according to LPS.
Many of these homeowners are staying in their homes based on a technicality. There is rarely any dispute over whether or not they have stopped paying their mortgage, said David Dunn, a partner at law firm Hogan Lovells in New York, who represents banks and other financial institutions in foreclosure cases.
"In my experience, they never say, 'I'm not delinquent' or 'I want to pay my bill but I'm confused over who to send it to,' or 'Oh my God, you mean I didn't pay my mortgage?' They're not in technical default. They're in default because they're not paying," he said.
Millions eligible for foreclosure review
Ironically enough, the banks have given delinquent borrowers some of the ammunition they need to delay the foreclosure process. During the "robo-signing" scandal in 2010, it was revealed that bank employees signed paperwork attesting to facts they had no personal knowledge of. Now, borrowers are routinely challenging that paperwork.A Staten Island, N.Y. man who owed $300,000 on his mortgage and hadn't made a payment in two years, said his attorney used the robo-signing issue to fight his foreclosure.
In his case, the lender's paperwork included many different papers signed by the same employee. The problem was that the signatures didn't match. The judge dismissed the lender's case against the borrower, although it can be re-filed.
"It looks like I'll be in my home for some time to come," said the homeowner, who asked to remain anonymous. He said he is currently not making any payments on his home.
Sometimes just asking the bank to produce the paperwork that shows it is the legal holder of the mortgage note can stall a repossession, said attorney Robert Brown. Since mortgages are often transferred electronically, the official paperwork often gets misplaced.
10 cheap foreclosed homes for sale by Uncle Sam
"My lawyer asked my bank to produce an affidavit that entitled them to foreclose," said a client of Brown's, who lives in Harlem and also asked to remain anonymous. "They couldn't do it."The case was dismissed, without prejudice, though the lender can try again -- if it finds the paperwork.
In some of the more extreme cases, borrowers will file for bankruptcy in order to block a foreclosure. In these instances, courts order creditors to cease their collection activities immediately. Home auctions can be postponed as the bankruptcy plays out, which can take months.
The ensuing delays are further harming the housing market. People who stay in homes undergoing foreclosure for years often don't maintain the properties, causing blight and lowering property values in the surrounding neighborhoods, said Dunn.
Home prices: Your local forecast
Then there are the court costs that lenders bear, which will eventually be borne by home buyers as lenders increase their borrowing fees to cover the increased risk, Dunn said.David Berenbaum of the National Community Reinvestment Coalition (NCRC), a community activism group, disputes the contention that owners are gaming the system for free rent and hurting the housing market.
"Most people do everything in their power to maintain these homes," he said. "They take in relatives, get second jobs and even rent out rooms."
What really needs to be done, he said, is for lenders to work harder to find solutions that allow delinquent borrowers who can afford to make reasonable mortgage payments to keep their homes.
Tuesday, January 17, 2012
‘That’s what title insurance is for’
Owen Girard, senior vice president and claims center manager from Fidelity National Title Group (a unit of Fidelity National Financial Inc.), declined to comment on the Baxters’ case, citing company policy.
Girard also declined to comment generally on Fidelity’s policies and guidelines for handling any such claim in which a defect in title is discovered.
So what’s a homeowner to do when, like the Baxters, they find themselves truly stuck in a home that’s unsellable due to legal reasons?
For his part, a frustrated Baxter has taken his case to a lawyer.
Attorney Robert Garibaldi, who is now representing Baxter, says he’s “cautiously optimistic we’re going to get it resolved for him.”
“It’s in both parties’ interests to resolve this situation,” adds Garibaldi.
Asked how several surveys could have missed the encroachment issue and had property lines incorrectly drawn, Garibaldi said it appears that there were several liens “that were recorded improperly.”
“It happens in places where there’s a lot of vacant land and not enough sales to establish clear property lines.” Still, “this should have been picked up,” Garibaldi says. “That’s what title insurance is for.”
He added: “Typically, title companies do a lot of due diligence. They’re pretty careful on doing research and having title abstractors review things.”
‘I want to be compensated’
Asked how he’d like the situation to be resolved, Baxter ticks off a host of things.He’d like Commonwealth/Fidelity to reimburse him for his legal costs, as well as the expenses he’s incurred trying to fix the encroachment problem. Baxter recently bought a municipal lien on an empty lot to the right of his neighbor in the hopes of acquiring that lot and doing a minor sub-division to resolve the encroachment issue. That has meant more surveys, title work and other acquisition costs.
Baxter also wants to be compensated “for all the aggravation I went through over the years.” And finally, Baxter says he’d like to be compensated “if there is any difference in the price when I sell my home in the future from what it sold for in 2010.”
“Contracts were signed but the sales fell through because of the encroachment,” he notes.
In the meantime, Baxter vows to continue to demand action from Commonwealth/Fidelity National Title, and to insist that the company honor its commitment to him or anyone else who might have purchased title insurance and later found a defect in their title.
“This has baffled my mind,” Baxter says, “on how they think they can get away with this.”
Want to sell your home this winter? Turn up the heat, grab a snow shovel and get to work.
Given
the cold, dark and unpredictable weather, selling a home in winter
requires more toil -- from shoveling to holiday decorating -- than it
takes to sell in summer.
While the number of homebuyers drops in winter, those left hunting are generally a more serious group ready to make a deal now, brokers say. Meanwhile, competition drops as other sellers decide to pull their homes off the market and wait for spring.
"It is a myth that homes don't sell in the winter," says Leslie Mann, an agent with Hallmark Sotheby's International Realty in Hopkinton, Mass. "We have been really busy."
If you are ready to throw some winter open houses, here are a few tips to help home sellers enchant potential homebuyers in winter.
Crank up the heat: Cold houses don't sell. If potential buyers shiver at your open house, they aren't likely to stick around, let alone make an offer. This isn't the time to save on the heating bill. Keep the thermometer at least at a steady 70 degrees. A cold house sends the wrong message. "It doesn't need to be hot; it needs to be not cold," says Ronald Phipps, immediate past president of the National Association of Realtors and principal broker with Phipps Realty in Warwick, R.I.
Get shoveling: Don't let a little snow come between you and the next owner of your house. Get shoveling, and make sure the walkway is clear. If someone has to slip and slide their way into your house, you'll lose the battle before they cross the front door.
Moreover, if you want buyers to attend your open house, make sure they have a place to park. This task can be challenging as snowbanks and drifts accumulate. Don't clear just the driveway -- shovel out some spaces on the street as well, says Rona Fischman, principal broker of 4 Buyers Real Estate in Cambridge, Mass. While you are at it, make sure you don't wind up with big piles of dirty snow near the front door. "If they are concerned about breaking a leg, then they are not paying attention to your house in a good way," she says.
Build a snowman: Nothing says "welcome to your new house" than a Frosty in the front yard ready to greet potential buyers, Fischman says. And why not get creative here? You could dress him up in a Century 21 T-shirt -- or whatever your agency of choice is -- or even put the for-sale sign in his hands, she says.
Decorate, but don't go overboard: Some Realtors suggest stripping a house of all holiday decorations to avoid turning off potential buyers. But that sends the wrong message. After all, buyers are trying to get a feel for whether your house could become their next home. If your house is cold, empty and sterile, that sends the wrong message, Fischman says.
But be careful here. This is not the time to go nuts with plastic lawn ornaments. It might be the season to stow Santa and his reindeer out of sight in your cellar, Mann says. She recalls taking a potential buyer to see a house where the owners had gone over-the-top with Christmas kitsch. "The buyer said, 'I didn't know the Griswolds lived here.' It did not help them at all."
Better to focus on some lighter, classier touches, such as wrapping a garland around the banister on the stairs or putting up a wreath. "It really makes the entryway pop," Mann says.
Become a weather freak, and stay flexible: One thing you can't control during the winter is the weather. It's time to start tuning into The Weather Channel, at least while you're trying to sell your house. When planning an open house, it's better to be prepared for weather changes. If a big storm is headed your way, maybe it's a good idea to reschedule for a new day or push a morning open house into the afternoon, Mann advises. Even if you can lure a few buyers out in the storm, a dark and dreary day is probably not the best backdrop for showing off your house. "You have to have some level of flexibility when selling in the winter," she says.
While the number of homebuyers drops in winter, those left hunting are generally a more serious group ready to make a deal now, brokers say. Meanwhile, competition drops as other sellers decide to pull their homes off the market and wait for spring.
"It is a myth that homes don't sell in the winter," says Leslie Mann, an agent with Hallmark Sotheby's International Realty in Hopkinton, Mass. "We have been really busy."
If you are ready to throw some winter open houses, here are a few tips to help home sellers enchant potential homebuyers in winter.
Crank up the heat: Cold houses don't sell. If potential buyers shiver at your open house, they aren't likely to stick around, let alone make an offer. This isn't the time to save on the heating bill. Keep the thermometer at least at a steady 70 degrees. A cold house sends the wrong message. "It doesn't need to be hot; it needs to be not cold," says Ronald Phipps, immediate past president of the National Association of Realtors and principal broker with Phipps Realty in Warwick, R.I.
Get shoveling: Don't let a little snow come between you and the next owner of your house. Get shoveling, and make sure the walkway is clear. If someone has to slip and slide their way into your house, you'll lose the battle before they cross the front door.
Moreover, if you want buyers to attend your open house, make sure they have a place to park. This task can be challenging as snowbanks and drifts accumulate. Don't clear just the driveway -- shovel out some spaces on the street as well, says Rona Fischman, principal broker of 4 Buyers Real Estate in Cambridge, Mass. While you are at it, make sure you don't wind up with big piles of dirty snow near the front door. "If they are concerned about breaking a leg, then they are not paying attention to your house in a good way," she says.
Build a snowman: Nothing says "welcome to your new house" than a Frosty in the front yard ready to greet potential buyers, Fischman says. And why not get creative here? You could dress him up in a Century 21 T-shirt -- or whatever your agency of choice is -- or even put the for-sale sign in his hands, she says.
Decorate, but don't go overboard: Some Realtors suggest stripping a house of all holiday decorations to avoid turning off potential buyers. But that sends the wrong message. After all, buyers are trying to get a feel for whether your house could become their next home. If your house is cold, empty and sterile, that sends the wrong message, Fischman says.
But be careful here. This is not the time to go nuts with plastic lawn ornaments. It might be the season to stow Santa and his reindeer out of sight in your cellar, Mann says. She recalls taking a potential buyer to see a house where the owners had gone over-the-top with Christmas kitsch. "The buyer said, 'I didn't know the Griswolds lived here.' It did not help them at all."
Better to focus on some lighter, classier touches, such as wrapping a garland around the banister on the stairs or putting up a wreath. "It really makes the entryway pop," Mann says.
Become a weather freak, and stay flexible: One thing you can't control during the winter is the weather. It's time to start tuning into The Weather Channel, at least while you're trying to sell your house. When planning an open house, it's better to be prepared for weather changes. If a big storm is headed your way, maybe it's a good idea to reschedule for a new day or push a morning open house into the afternoon, Mann advises. Even if you can lure a few buyers out in the storm, a dark and dreary day is probably not the best backdrop for showing off your house. "You have to have some level of flexibility when selling in the winter," she says.
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