RealtyTrac Articles

With the passage of Wall Street reform now a done deal in Washington there are probably few people who did better than real estate investors. Stricter mortgage standards plus less federal emphasis on homeownership means there will be a new and growin0Wed, 28 Jul 2010 07:00:00 GMTWith the passage of Wall Street reform now a done deal in Washington there are probably few people who did better than real estate investors. Stricter mortgage standards plus less federal emphasis on homeownership means there will be a new and growing demand for rental housing.

Given vast supply, sputtering prices and interest rates around 4.5 percent, is now the time to buy investment condos, especially distressed units in distressed communities? 0Thu, 22 Jul 2010 07:00:00 GMTIt's probably just a coincidence, but a very large number of distressed properties in the nation's leading foreclosure centers are condos. Florida, California, Nevada and Arizona are filled with condos, units which in many cases now sell at huge discounts. Given vast supply, sputtering prices and interest rates around 4.5 percent, is now the time to buy investment condos, especially distressed units in distressed communities? A condominium can be seen as a form of ownership rather than as a type of property. Physically, a condo might be a detached home, townhouse, apartment flat, professional office or industrial space.

Attention foreclosure rehabbers: Plenty of roughed-up repos are yours for the taking. From San Francisco, Calif., to Cape Coral, Fla., repo rehabbers are snagging discounted digs before the sector snaps back. 0Fri, 09 Jul 2010 07:00:00 GMTAttention foreclosure rehabbers: Plenty of roughed-up repos are yours for the taking. From San Francisco, Calif., to Cape Coral, Fla., repo rehabbers are snagging discounted digs before the sector snaps back. Cash-strapped lenders, anxious to shore up their depleted balance sheets, are slashing prices and accepting lowball offers, according to investors and brokers across the county.

The new face of mortgage lending is now being revealed on Capitol Hill. How will the market for foreclosures, REOs and short sales be impacted? How will getting a mortgage change? 0Thu, 01 Jul 2010 07:00:00 GMTThe new face of mortgage lending is now being revealed on Capitol Hill. Bills passed by the House and Senate are being merged and it seems plausible if not likely that we'll soon have mortgage reform. So what's the big deal? How will the market for foreclosures, REOs and short sales be impacted? How will getting a mortgage change? The answer is that we will soon see a mortgage marketplace which largely resembles the 1990s, a calmer financial time when most loans were conventional, VA or FHA products. Borrowers will be better qualified and loans will be better documented.

Foreclosure homes accounted for 31 percent of all residential sales in the first quarter of 2010 for an average discount of 27 percent, according to a new report from RealtytTrac.0Tue, 29 Jun 2010 07:00:00 GMTForeclosure homes accounted for 31 percent of all residential sales in the first quarter of 2010, and that the average sales price of properties that sold while in some stage of foreclosure was nearly 27 percent below the average sales price of properties not in the foreclosure process, according to a new report from RealtyTrac. A total of 232,959 U.S. properties in some stage of foreclosure — default, scheduled for auction or bank-owned (REO) — sold to third parties in the first quarter, a decrease of 14 percent from the previous quarter and down 33 percent from the peak during the first quarter of 2009.

The metro areas on the list below had an average discount of at least 35 percent on foreclosure purchases, positive year-over-year growth in median home prices and relatively low unemployment rates.0Wed, 16 Jun 2010 07:00:00 GMT“Buy low. Rent smart. Sell high.” It should be every real estate investor’s mantra in today’s market. It is for investor, author and educator Andy Heller. “ Today the investor should be buying property between 30 and 60 percent off.” Based on data from RealtyTrac, National Association of Realtors (NAR) and Bureau of Labor Statistics (BLS), all of the metro areas on the list below had an average discount of at least 35 percent on foreclosure purchases, positive year-over-year growth in median home prices and relatively low unemployment rates.

In the world of short sales, foreclosures and REOs not too many distressed homes are available through the FHA, a situation which may be on the verge of change. 0Wed, 09 Jun 2010 07:00:00 GMTIf you look at what’s happening in the world of short sales, foreclosures and REOs you’ve probably noticed that not too many distressed homes are available through the FHA, a situation which may be on the verge of change. One big reason we don’t see a huge number of FHA foreclosures today is because there are relatively few FHA mortgages to go wrong from the toxic loan years. The FHA program was shoved aside by loan alternatives which seemed a lot more attractive.

Is there any way to assure real estate success, to purchase real estate at the bottom of the market, sell at the top and face no risk in between? 0Thu, 27 May 2010 07:00:00 GMTIs there any way to assure real estate success, to purchase real estate at the bottom of the market, sell at the top and face no risk in between? It would be great to say that the answer is yes, and greater still to have such knowledge, but the central reality of investing is that such certainty does not exist. There's always risk, including the risk of not doing anything and missing an opportunity. But if it's true no form of investing is risk-free, then it's equally true that there are steps which can be taken to reduce marketplace perils, especially when considering foreclosures, short sales and distressed properties in general

Here are the Top 10 Myths that came up in a recent survey about attitudes toward buying foreclosure, and the facts to set the record straight.0Thu, 20 May 2010 07:00:00 GMTTrulia.com and RealtyTrac recently surveyed U.S. adults to get some insight into what people *think* is involved with buying a foreclosure. Here are the Top 10 Myths that came up, and the facts to set the record straight: Foreclosures need a huge amount of work. 92 percent of consumers expressed that if they bought a foreclosure, they would be willing to make home improvements after they closed the deal, with 65 percent being willing to invest 20 percent or less of the purchase price. Although stories of foreclosures missing plumbing and every electrical fixture are very memorable, many foreclosed homes need only the cosmetic improvements.

With the number of bank-owned REO properties expected to rise in the summer of 2010, here are 7 Tips that can help you snag a bank-owned property.0Thu, 13 May 2010 07:00:00 GMTWith the number of bank-owned REO properties expected to rise in the summer of 2010, here are 7 Tips that can help you snag a bank-owned property. 1. Hire an REO expert with experience buying bank-owned properties in your local market. RealtyTrac has thousands of agents to choose from in our RealtyTrac Agent Network. 2. Avoid lowball offers. Since most bank-owned properties are being sold at list price or above, a lowball offer will not work in most markets. Consider submitting an offer slightly above list price. 3. Determine the value of the property. You make your money when you buy, not when you sell.

Recently there's been an argument to be made that portions of the real estate market were beginning to return, an argument that may have to be re-thought as a result of the Gulf of Mexico oil spill. 0Thu, 06 May 2010 07:00:00 GMTDuring the past few weeks there's been an argument to be made that portions of the real estate marketplace were beginning to return, an argument that may have to be re-thought as a result of the Gulf of Mexico oil spill. Across Gulf waters and shorelines that were once pristine we now have the threat of a major environmental disaster. Unless the BP oil leak is soon stopped or slowed, the damage to sea life and shore areas will take years to clean up. No less important, the damage will also be economic: A lot of Gulf Coast real estate will become less valuable each day the spill continues.

Here are ten investing tactics for 2010 that can help you build wealth and financial stability in the years ahead.0Mon, 03 May 2010 07:00:00 GMTInvesting in real estate, like any other investment, should be approached cautiously and prudently. Wherever you invest, buyers should budget for monthly mortgage and principle payments, taxes, insurance, maintenance and unexpected repairs. According to several real estate experts, 2010 will be a good time to buy a foreclosure property as a home, an investment property or a vacation rental. Here are ten investing tactics that can help you build wealth and financial stability in the years ahead. 1. BUY SHORT SALES 2010 will be remembered as the year of the short sale.

The federal government's tax credit for first-time homebuyers is now over and done. The result is that a housing market that had begun to stabilize will now be set back as demand wanes.0Thu, 29 Apr 2010 07:00:00 GMTThe federal government's tax credit for first-time homebuyers is now over and done, a program that largely ended April 30. The result is that a housing market that had begun to stabilize will now be set back as demand wanes, meaning that prices will soften. For buyers and investors the good news is that there will be less competition for short sales and foreclosures. The tax credit was worth as much as $8,000 for first-time buyers who purchased before April 30, 2010. In addition, there was a provision giving a $6,500 credit to home sellers.

Jay Schurman concluded that “banks are not in the real estate business” after a marathon REO purchase in 2008 that started in January and ended in August. 0Thu, 15 Apr 2010 07:00:00 GMTJay Schurman concluded that “banks are not in the real estate business” after a marathon REO purchase in 2008 that started in January and ended in August. Nearly two years later lenders are much savvier about selling bank-owned properties, and their newfound know-how is grounded in the basics of supply and demand, which are both heavily impacted by foreclosures in the 2010 marketplace. Sales of properties in some stage of foreclosure accounted for one-third of all sales in the first three months of the year, according to RealtyTrac.

The surest place to find future foreclosures is among the very people Uncle Sam is helping with its mortgage modification programs, which gave 1.4 million borrowers trials modifications in 2009. 0Wed, 14 Apr 2010 07:00:00 GMTMore than 1.4 million borrowers have been offered trial mortgage modifications through the federal government during the past year, a significant number by any standard. What's also significant is this: The surest place to find future foreclosures is among the very people Uncle Sam is helping. While anyone with common sense would like to see fewer foreclosures, the reality is that the numbers are up. In 2009 there were 3,957,643 foreclosure filings according to RealtyTrac, a number that rose 21 percent over 2009. So far in 2010 RealtyTrac says that first-quarter foreclosure filings have increased 16 percent when compared with a year ago.

Foreclosure filings were reported on 932,234 properties in the first quarter, a 7 percent increase from the previous quarter and a 16 percent increase from the first quarter of 2009.0Wed, 14 Apr 2010 07:00:00 GMTForeclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 932,234 properties in the first quarter, a 7 percent increase from the previous quarter and a 16 percent increase from the first quarter of 2009, according to the latest RealtyTrac U.S. Foreclosure Market Report. One in every 138 U.S. housing units received a foreclosure filing during the quarter. Foreclosure filings were reported on 367,056 properties in March, an increase of nearly 19 percent from the previous month, an increase of nearly 8 percent from March 2009 and the highest monthly total since RealtyTrac began issuing its report in January 2005.

Corey Fryer found the dream home for his growing family in an idyllic tree-lined Chicago neighborhood by negotiating directly with a distressed homeowner in pre-foreclosure.0Wed, 31 Mar 2010 07:00:00 GMTCory Fryer’s growing family needed more room. Fryer and his wife had just moved back to Chicago from Grand Rapids, Mich., and were looking for a spacious home for their growing family of six. Fryer began searching online for properties and spotted a two-story brick bungalow on a tree-lined street in South Chicago’s West Chatham neighborhood using RealtyTrac.com. The pre-foreclosure he unearthed had been abandoned by the current owner and was boarded up despite its great location across the street from an elementary school and near a park where Fryer’s four children could play.

Beginning April 5 new guidelines will make buying distressed properties much easier. Simply put, if this was poker you’d now be able to see the other guy's hand. 0Thu, 25 Mar 2010 07:00:00 GMTBeginning April 5 new guidelines will make buying distressed properties much easier. Simply put, if this was poker you’d now be able to see the other guy's hand. The goal of the new rules is to reduce the foreclosure inventory by making it easier to have a short sale. To do this the government wants lenders to unravel the current short-sale process, deals that can take months to close if they close at all. In the past foreclosures were not much of a problem for lenders because distressed properties could generally be re-sold for enough money to fully pay off both the mortgage debt and the lender's foreclosure costs.

Foreclosure activity in these five metro areas zoomed higher last year at a faster pace than already established foreclosure hotbeds like Las Vegas, Phoenix, Los Angeles and Tampa Bay.0Thu, 18 Mar 2010 07:00:00 GMTForeclosure activity in these five metro areas zoomed higher last year at a faster pace than already established foreclosure hotbeds like Las Vegas, Phoenix, Los Angeles and Tampa Bay. Buyers can find discounts of 30 percent or more as foreclosures flare up in these cities — all of which have solid economic fundamentals and strong upside potential for real estate. In Boise, bank-owned properties in the low-end price range of under $200,000 are still attracting the most competition from buyers, according to Tonyah Lee, an agent with Keller Williams Realty Boise. “Everybody’s looking for a deal,” she said.

Forbearance pretty much means financial mercy at the option of the lender and it's at the heart of a new proposal by the Mortgage Bankers Association to reduce foreclosures among the unemployed. 0Thu, 18 Mar 2010 07:00:00 GMTWithin the world of mortgage debt there's a concept called forbearance. It pretty much means financial mercy at the option of the lender and now the idea is at the heart of a new proposal by the Mortgage Bankers Association to reduce foreclosures among the unemployed. To see how forbearance works imagine that Smith doesn't pay his mortgage but even so Lender Jones elects not to foreclose. Why doesn't the lender foreclose? Most likely because Jones thinks Smith can re-start regular payments as soon as he starts a new job, recovers from an illness, gets past a temporary set-back, etc.