How The Summer Squeeze is Changing Investing Investor participation in the housing market dropped sharply In July for the second straight month, reversing long-term growth in investor purchases of residential properties, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey.Investor participation in the housing market fell to 21.9 percent of all transactions in July, from 23.5 percent in June, based on a three-month moving average. Investor participation back in May … [Read more...]
New Foreclosures Spike in May
June 15, 2012 By Leave a Comment
New Foreclosures Spike in MayInvestors unhappy with current foreclosure inventory levels may have some temporary relief in the coming months as an unexpected spike in May foreclosure activity works its way through the system. Overall activity broke the 200,000 barrier for the first time in three months and starts increased on an annual basis for the first time since 2010 according to the May report from RealtyTrac.But the bulk of new distress sales probably won’t be REOs, but rather as … [Read more...]
Value Disputes and Bank of America Short Sales
May 22, 2012 By Leave a Comment
Value Disputes and Bank of America Short SalesIf you have completed more than a handful of short sales, then you have likely have been involved in a value dispute with the short sale lender. During the course of the short sale, the short sale lender sends out another Broker to complete a Broker Price Opinion (BPO) for the short sale listing. The bank then, in most cases, bases their price on the value stipulated in the BPO. However, often times, there is a discrepancy between the value … [Read more...]
Short Sales – How to Manage the BPO
May 1, 2012 By Leave a Comment
Short Sales – How to Manage the BPOI’m not going to say that I am super strong. I’ve done some martial arts and some kickboxing, but if I hit you, I probably wouldn’t take you to the floor. Nevertheless, I know the best way to fight a bad Broker Price Opinion (BPO). I can knock that baby to the floor in three easy moves. And… here they are:Meet the BPO agent at the property. In order to be able to intelligently discuss the BPO with the seller’s lien holder, it is a good idea to … [Read more...]
Why Investors Lose Money on a certain Percentage of all Auction Deals
March 21, 2012 By Leave a Comment
Nearly one out of every four properties purchased by investors at auction over the past four years has cost them money, not because they didn’t know what they were doing but because lenders overvalued them when setting minimum bid and reserve amounts, especially in markets with weaker demand and an older housing stock. As a result, investors in one market alone, Cleveland, have lost over $56 million since 2006. A new study by two economists at the Federal Reserve Bank of Cleveland, Thomas J. … [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...]
Can Real Estate Investors Make A Difference?
January 4, 2012 By Leave a Comment
Can Real Estate Investors Make A Difference?Foreclosures, Short Sales, Repossessions, Default, Resales! A nation’s homes shape the quality of its citizens’ lives. Homes are where the workaday world ends and family life begins. Life’s passages take place in our homes; they are where children grow up and memories are made. Homes form the building blocks of every community.Not since the Depression has a man-made disaster so threatened America’s homes and housing stock as the … [Read more...]
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Where Oh Where Have All the Distressed Sales Gone?
Where Oh Where Have All the Distressed Sales Gone? The signing of the Attorneys General agreement five months ago was supposed to speed up foreclosure processing and move more properties through the pipeline faster than we’ve seen since Robogate. Over the past year, new initiatives by the GSEs and the biggest banks, and improved transaction management technology were supposed to get record numbers of short sales to closing faster and easier than ever.So what the heck happened?If you’re … [Read more...]