How Ratings Could Dramatically Change the Single Family Rental Business Investors large and small are closely following on the efforts to convert blocks of single family rentals into securities and sell them to securities investors, similar to the way mortgages are securitized into mortgage-backed securities by Fannie Mae, Freddie Mac and leading banks. If successful, SFR-based securities will become a huge new source of financing and will transform single family rentals and residential … [Read more...]
Improved Short Sale Processing Time – Fact or Fiction?
April 24, 2012 By Leave a Comment
Improved Short Sale Processing Time – Fact or Fiction?If you are considering the purchase of a short sale or if you are an listing short sales, 2012 may be the year for you. First off, the Mortgage Forgiveness Debt Relief Act of 2007, which protects certain short sale sellers from tax liability, is set to expire at the end of the year. The Treasury has amended the HAFA guidelines for those short sale sellers interested in participating in the government’s HAFA short sale program. Bank of … [Read more...]
Real Estate News by the Numbers: Weekending April 20
April 21, 2012 By Leave a Comment
Real Estate News by the Numbers: Weekending April 20A quick rundown of the important real estate news from the week of April 14 – April 20, by the numbers:33% – Increase in January, year-over-year, in short sales in the U.S. In total, 32 states saw an increase in short sales.6.9% – Increase in mortgage applications, on a seasonally adjusted basis, from the week before. The Refinance Index was up 13.5%, whereas the Purchase Index was down 11.2%2.6% – Decrease in existing homes sales in … [Read more...]
Real Estate News: Week of April 7 – April 13
April 14, 2012 By Leave a Comment
Real Estate News: Week of April 7 – April 13A quick rundown of the important real estate news from the week of April 7 – April 13, by the numbers:10% – Increase in foreclosure filings in the first quarter, in states where the foreclosure process must undergo judicial scrutiny. The increase in fillings come on the heels of the $26 billion mortgage settlement between the government and the nation’s largest mortgage lender.2.4% – Decrease in mortgage applications (seasonally adjusted) … [Read more...]
Real Estate News : Week of March 17 – March 24
March 26, 2012 By Leave a Comment
Real Estate News : Week of March 17 – March 24A quick rundown of the important real estate news from the week of March 17 – March 24, by the numbers:1.57% – Drop in new homes sales in February from January. Despite the recent drop, new home sales are up 11.4% since February 2011.5.8 Months – Current supply of new homes on the market. Although supply dropped slightly for the month, median new home prices were up to $233,700 from $217,000 in January.4.26 Million – Existing home sales in … [Read more...]
Real Estate News by the Numbers: Week of March 3 – March 9
March 10, 2012 By Leave a Comment
Real Estate News by the Numbers: Week of March 3 – March Real estate news from the week of March 3 – March 9, by the numbers:227,000 – Number of jobs the U.S. economy added in February. The number exceeded the 204,000 jobs analysts expected. However, the unemployment rate remained at 8.3%.$14.5 Million – List price for Rachel “Bunny” Mellon’s Caribbean vacation home. Bunny Mellon, 101, was the wife of the late Paul Mellon. The estate sits on 26 acres.3.88% – Average rate on … [Read more...]
The Most Common Short Sale Incentive Programs Available Today
February 26, 2012 By Leave a Comment
The Most Common Short Sale Incentive Programs Available TodayShort sale incentive programs have been big news these last few weeks. While the programs themselves are not new, the fact that they have been a featured topic on many news media sites has brought a renewed interest in these programs. So, I thought it would be a good idea to share some information on the most common short sale incentive programs available: Options available for short sale sellers: HAFA: In this program, qualified … [Read more...]
Real Estate News by the Numbers: Week of February 18 – February 24
February 25, 2012 By Leave a Comment
Real Estate News by the Numbers: Week of February 18 – February 24This is A quick rundown of the important real estate news from the week of February 18 – February 24, by the numbers: 14.3% – Predicted growth in U.S. employment this decade according to the Bureau of Labor Statistics. The Washington-Arlington-Alexandria area is predicted to have the greatest job growth through 2020.223 – Number of stores the U.S. Postal Service has identified for possible closings. The closings are … [Read more...]
Real Estate News by the Numbers: Week of February 4 – February 10
February 12, 2012 By Leave a Comment
Real Estate News by the Numbers: Week of February 4 – February 10A quick rundown of the important real estate news from the week of February 4 – February 10, by the numbers:Less than 50% – Number of lenders offering mortgages to applicants with FICO scores less than 620 and a 10 % down payment. Borrowers are being rejected, even though the applicants fit within the government sponsored enterprises’ purchasing guidelines.3.33% – Drop in consumer sentiment in January from the previous … [Read more...]
The Feds’ REO Initiative – Explained
February 10, 2012 By 1 Comment
The Feds’ REO Initiative – ExplainedLast month, we discussed the overwhelming inventory of REO homes currently residing in the Federal Housing Finance Agency’s inventory. Federal Reserve Chairman Ben Bernanke wants to start a national REO rental program. But the agency may have seen the light – or at least a glimpse of it.They know they need someone to manage the properties, or in essence become landlords. That’s why they have opened up pre-bid qualification. Here are the nuts and … [Read more...]
The Evolution of Short Sales
February 8, 2012 By Leave a Comment
The Evolution of Short SalesWhen I was first invited to write for BiggerPockets, I was told that I had editorial freedom—but I should keep to my all-time favorite subject, short sales. Between the BiggerPockets Blog and my other gigs, I think that I have probably written about 2000 articles about short sales. I also calculate that sometime in 2012, I will reach 1000 short sale closings in five years. That’s right, my team and I will have processed and negotiated 1000 short sales before this … [Read more...]
Real Estate News by the Numbers: Week of January 28 – February 3
February 5, 2012 By Leave a Comment
Real Estate News by the Numbers: Week of January 28 – February 3A quick rundown of the important real estate news from the week of January 28 – February 3, by the numbers:8.3% – U.S. unemployment in January, the fifth straight month that unemployment has dropped. All together, 243,000 jobs were added in January, 100,000 more than economists had expected.1.3% – Drop in home prices month-over-month in November according to the new S&P/Case-Shiller 20-city index. Prices fell in 19 of … [Read more...]
Bulk Sales of GSE Foreclosures Begin
February 2, 2012 By Leave a Comment
Bulk Sales of GSE Foreclosures BeginThe Federal Housing Finance Agency (FHFA) today invited investors interested in purchasing pools of Fannie Mae, Freddie Mac and FHA foreclosures in the nations hardest-hit metropolitan areas with the requirement they rent them for a period of year to pre-qualify.The new bulk sales program, under discussion since August, will begin with a pilot program where Fannie Mae will offer for sale pools of various types of assets including rental properties, vacant … [Read more...]
What to Do with 3 Million REOs?
January 28, 2012 By Leave a Comment
A hot topic in Washington, D.C. this month is what to do with 3 million REOs currently in holding by the Federal Housing and Finance Agency. The popular answer is to make the government agency the largest landlord in America.Does this help or hurt the investor market and, more importantly, the recovery of the real estate market in general? Or does it just prolong the inevitable?Federal Reserve Chairman Ben Bernanke supports the national REO rental program saying in a white paper to Congress on … [Read more...]
What to Do with 3 Million REOs?
January 28, 2012 By Leave a Comment
A hot topic in Washington, D.C. this month is what to do with 3 million REOs currently in holding by the Federal Housing and Finance Agency. The popular answer is to make the government agency the largest landlord in America.Does this help or hurt the investor market and, more importantly, the recovery of the real estate market in general? Or does it just prolong the inevitable?Federal Reserve Chairman Ben Bernanke supports the national REO rental program saying in a white paper to Congress on … [Read more...]
Is New Gov’t Foreclosure Plan a Good Deal?
January 19, 2012 By Leave a Comment
Federal Reserve Chairman, Ben Bernanke, cited a plan to pilot a program early this year which would convert government-owned foreclosure properties into rentals. Foreclosures now owned by Fannie Mae, Freddie Mac and HUD would be sold to investors in bulk. Is this new government foreclosure plan a good deal?After recently acquiring $450 million in vacant foreclosed homes with a plan to rent them out, John Brady, Oaktree Capital Management's head of global real estate, said, "We believe that this … [Read more...]
Real Estate News Week of December 10 – December 16
December 17, 2011 By Leave a Comment
Real Estate News Week of December 10 – December 16Real Estate news from the week of December 10 – December 16 :$80 Million – “Shopped” price for a Los Angeles mansion. The six bedroom house was previously owned by Walt Disney’s wife and currently is owned by Gabriel Brener, co-owner of the Houston Dynamo soccer club.$1.33 Billion – Lehman Brothers offer for half their stake in the Archstone apartment portfolio. The offer matches a previous one made by Equity Residential.3.94% – … [Read more...]
Real Estate News:Week of November 26 – December 2
December 3, 2011 By Leave a Comment
Real Estate News : Week of November 26 - December 2A quick rundown of the important real estate news from the week of November 26 – December 2, by the numbers :8.6% – U.S. unemployment rate for November 2011. The rate is the lowest since March 2009 and a significant drop off from last month’s 9.0% rate. The U.S. economy also added 120,000 jobs, more than the 110,000 jobs economists had predicted.3.9% – Decline in the S&P/Case-Shiller home price index in the third quarter of 2011 … [Read more...]
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Don’t Lose Heart Because of Institutional Competition
Don’t Lose Heart Because of Institutional CompetitionI remember feeling somewhat uncomfortable at the announcement earlier this year that Fannie Mae and Freddie Mac would be packaging large portfolios of foreclosed properties and selling them to the highest bidder. As a smaller investor, I did not like the idea of larger buyers having an unfair advantage over the smaller guys like myself. Truthfully, with such a high level of competition acquiring foreclosed properties and so many distressed … [Read more...]