Foreclosure Trends

Susy Copus asked:


According to the Royal Institution of Chartered Surveyors (Rics) house sales are at their lowest level since their monthly survey began in 1978.  The annual fall, according to Halifax Plc, is 10.9% and house prices in August fell by 1.8%.  Property prices have returned to the levels seen in early 2006.

  

There are a number of reasons for the fall.  Crucially the credit crunch means that banks are less able to raise funds from wholesale markets and therefore do not have the funds to lend on.  In addition, whereas this time last year banks were keen to invest in the housing market, they now see the housing market as a risky investment and want only to lend to buyers who are safe bets.  This equates to buyers who have a large deposit plus a good credit score.  Long gone are the 100% mortgages and the large salary multiples. 

 

For the potential buyer household incomes are squeezed with higher costs for food, energy and fuel, and with a recession looming employment may not be secure.  Such pressures have not been seen for a decade.  Furthermore, of the buyers that have secured mortgages they may wait to see how much the market falls.

 

In a nutshell, there are fewer buyers who have secured mortgages and with fewer buyers there is less demand for housing and so prices have fallen.  Some experts predict that prices will fall by as much as 25% in total from peak to trough and the market will begin to recover in 2010.  In contrast, the Centre for Economic and Business Research predict a total fall of 15%.        

 

So what will stop the freefall?  The UK government announced some, in effect, minor measures: interest free loans, a stamp duty level rise and help for those not affording their mortgage.  This was a welcome help but is unlikely to stabilise the market significantly as the key problem is the banks having funds to borrow and then those banks taking the risk to lend.

 

Hope glimmers as the US Treasury has in effect nationalised the US’s two largest mortgage providers, Fannie Mae and Freddie Mac which will protect millions of mortgages and indeed, banks worldwide who are exposed to them.  This hugely costly intervention is expected to stabilise the US housing market which in turn will stabilise the US economy.  As a result UK banks will be able to secure funds to lend to consumers.  However, return to the previous easy lending criteria is unlikely and even when banks have funds to lend they are likely to require the borrower to show that they are a good investment: with a deposit and affordable repayments.

 

The housing bubble has burst, but the fact remains that the property market in the medium and long term will be backed by the sheer necessity of housing requirements.  The population is increasing and there is not enough housing to home everyone.  With less sales, property developers are currently short of cash and are putting their projects on hold.  As a result new building will be well below the government’s targets and as demand outstrips supply prices will go up.  Indeed, the Centre for Economic and Business Research (CEBR) expect house prices to rise by 30% between late 2009 and 2012. 

 

And so the UK housing market is expected to be slow into 2009 but as the economy recovers so too will the housing market. 

 



RAFAEL

Gina Labarbera asked:


I won’t jump the gun and say that all is well but, according to an article in the Wall Street Journal, housing prices have been slowly, if steadily, declining since 2006. The author, Cyril Moulle-Berteaux, notes that in 2005 and 2006, the average home mortgage required 25% of a buyer’s monthly income. For first-time buyers, the numbers were more intimidating, with homes often commandeering up to 37% of the household income. Ouch!

Over the past two years, as more people have been unable to purchase or maintain their current homes, housing prices have fallen 10% - 15%, while income is steadily growing. Home prices now are on par with where they were in the 1990s and, consequently, more people are able to afford to buy. This is especially helpful to first time homebuyers.

Will this decline in housing prices lead to a dramatic drop in home value for people who already own homes? Not to worry, according to Mr. Moulle-Berteaux. As inventories of unsold homes decrease (due to increased affordability and people buying them), the market will start to swing upward again. This is a pattern that has occurred consistently in the U.S. housing market and there is no reason to expect that this time will be different. We can, however, hope that the growth will be slow and steady, and avoid the fireworks that led to drastic price increases, speculative loans and a rash of foreclosures.

If you’d like to see what is available in the Jacksonville area in your price range, give me a call.



PABLO

Fritz Pfister asked:


The consistency in the number of home sales within the local housing market should be the envy of the state and nation. Considering that 2003, 2004, and 2005 were seller’s markets, and 2006, 2007 were buyer’s markets; look at the consistent number of home sales as reported by member brokers to The Capital Area Association of Realtors (CAAR) MLS:

2003 3996

2004 4005

2005 4197*

2006 4175

2007 3998

*CAAR record high

The rise in the median sale price of a home in the face of an oversupply of homes for sale defies the laws of supply and demand as witnessed below:

2003 $90,500

2004 $92,750

2005 $100,000

2006 $99,000

2007 $104,500*

*CAAR record high

The only reason 2006, and 2007 were buyer’s markets was due to the record number of homes for sale. Although demand remained steady, supply skyrocketed. The number of home listings increased from 6213 in 2003 to a record 8082 in 2006, and fell slightly to 7960 in 2007.

There’s more to the story from 2007. A record number of listings did not sell with the supply of homes vastly outnumbering buyers. A record 2362 home listings expired, and 1174 withdrew without a sale. There were 367 more pending contracts that failed to close than in 2006, resulting in 1554 home listings returning to the market.

The great news to begin 2008 is that interest rates fell below 6% for only the second time this decade. That should provide motivation for indecisive home buyers to purchase. Caar also reported closed home sales were up in December, however pending sales were down which will be reflected in January closings.

It may have been a struggle for home sellers in 2007 due to excessive numbers of homes for sale, however overall it was a good year in the local housing market. There are hundreds of markets that would trade places in a New York second, proving once again that real estate is local. In spite of the negative psychology within the housing market created by the media, flat job growth, incompetent state government, a tax and spend governor, and the highest interest rates in two years throughout most of the year, 2007 in Springfield Illinois turned out pretty darn good.

Just imagine how good the local housing market could have been, and would be if there were; responsible reporting in the media, there was a functional state government, and there was a governor with policies that encouraged business growth along with lower taxes; which creates jobs.



BRYCE

Igor Mosyak asked:


The loan modification process can assist homeowners who are at risk of foreclosure to stay in the homes that they love. If you are experiencing temporary financial hardship and have fallen behind on your mortgage payments, then you need to understand the options that are available to you and your family. Talking with a professional foreclosure consultant can help you to understand your rights and to develop a solid action plan to stop your pending foreclosure.

Here are just a few of the topics that you can discuss with your foreclosure consultant:

Developing a feasible plan for loan repayment

You may have experienced a setback recently that has caused your lender to file a Notice of Default against you. It is OK. There is still time to intervene and stop the foreclosure from ever happening. Time is of the essence though. You need to be proactive and get in touch with a foreclosure consultant as soon as possible in order to maximize your potential to successfully stop the foreclosure. You can discuss realistic repayment possibilities and the foreclosure consultant can then approach your lender’s loss mitigation team on your behalf.

A loan from the Federal Housing Authority:

Your foreclosure consultant is an expert at helping you obtain a loan from the FHA to cover the delinquent amount of your mortgage payments and bring your loan current. There will be no interest or payments on this loan from the FHA until your mortgage is refinanced or your home is sold. You must be between 4 and 12 months behind on your mortgage payments in order to receive the FHA loan.

Loan modification:

Your foreclosure consultant will work with your lender to get your loan modified and bring it current. This will involve several aspects including

Partial payment of the amount delinquent;

A letter of hardship explaining your legitimate reasons for falling behind on your mortgage payments;

Relevant financial statements presented to the lender;

Pay check stubs;

W-2;

Tax return form copies;

Banking statements;

and more as required by the lender…

It’s important for you to realize that just because you desire to enter into the loan modification process doesn’t mean that the lender will be willing. You must convince the lender that modifying your loan is in their best interest. It is the goal of the lender to minimize their own losses for the long run – nothing more. It is all just a singular component of the loss mitigation process to them. For that reason, it is also very important to act immediately. The loan modification process is time-consuming and needs to be initiated as promptly as possible in order to maximize your chances to stop your foreclosure.

If you are facing foreclosure and need assistance in dealing with your mortgage lender, there is help available. Just visit us at Stop Foreclosure Help Today and you can be on your way to successfully stopping your pending foreclosure and being able to relax again. We are always here for you.



WILLIAM

The Global Property Guide asked:


Asian property markets, though still relatively unaffected by the credit crunch, will soon be affected by inflation and higher interest rates, warns the Global Property Guide, because of rising food, fuel and other commodity prices.

“Higher food, fuel and other commodity prices affect the housing market negatively in several ways,” says Prince Christian Cruz, senior economist at the Global Property Guide.

“At the micro level, households may postpone their decision to purchase a new house or spend on renovation if they anticipate higher prices. At the macro level, higher food and fuel prices push inflation up. Monetary authorities typically raise key interest rates to stem inflationary pressure,” Cruz explains.

Asian households are particularly vulnerable to recent rises in food prices. The price of rice, the staple in Asian diet, has risen by more than 90% during the last year to March 2008, according the UN Food and Agriculture Organisation (FAO).

The price of other food also has increased significantly. Wheat was up 160% in March 2008 on a year earlier; soy bean oil by 104%, corn by 37%, and sugar by 26%.

Food prices are a key component in the Consumer Price Index (CPI). Their proportional weight ranges from 28% in Singapore, to 33.2% in China, to almost 50% for urban workers in India. High food prices will persist until 2009, according to reports by the FAO, World Bank and the International Rice Research Institute.

The price of almost all commodities is increasing, not only food. The price of light sweet crude oil surged to US$115 a barrel in April 2008, up almost 80% from a year earlier. NYMEX crude oil has been above US$100 per barrel since March 2008.

Many Asian economies which have recently experienced residential real estate price surges such as China, Singapore, Philippines, Hong Kong and India (all of which registered double-digit house price increases in 2007) are under significant inflationary pressure (see table).

Higher inflation and interest rates

Monetary authorities typically raise interest rates to combat inflation. They can also increase the cash reserve ratio (CRR) of banks or sell bonds or other financial instruments to reduce money supply.

The Reserve Bank of India (RBI) raised the cash reserve ratio by 50 basis points in two stages to mop excess liquidity and contain inflationary pressures. The CRR will be 7.75% effective April 26 and 8% by May 10, 2008.

The RBI, similar to other central banks in Asia, left key interest rates unchanged during the first half of April.

However, most analysts indicate the key rates might be hiked in May if inflation continues to be above the official targets

Fears of interest rate hikes cropped up in several Asian countries, particularly in Indonesia and China.

High interest rates affect housing markets in two ways:

1. By discouraging investment and consumption and causing the economy to slow, higher interest rates reduce people’s willingness to spend on housing

2. Higher interest rates discourage borrowing for housing loans.

“The situation is unfortunate because most Asian housing markets have not yet fully recovered from the effects of the 1997 Asian Financial Crisis,” Cruz notes.

“Even with strong house price gains in 2007, property prices in Asia are still below their pre-Asian Crisis peak levels. Despite 31% nominal rise in the over-all residential property price index, Singapore’s prices are still about 10% to 20% below their pre-Asian crisis peak level in real terms,” adds Cruz.

“In the Philippines, even with the 15% increase in condominium prices in 2007, it is still about 47% below its peak level in real terms,” he continues.

The housing markets most likely to be affected by monetary tightening seem to be China, India, Singapore, Philippines and Thailand, which have experienced the largest increases in inflation.

Will Asia tango together?

“With global financial markets interconnected, the world’s economies tend to move together. The synchronicity was observed with the global housing boom - never before in recorded history did so many countries experience so much house price growth all at the same time,” Cruz notes.

“The housing market slowdown may also be synchronized,” he adds. “Inflationary pressures are likely to cause Asia’s central banks to raise interest rates, and slow their housing markets,” he says.

However convergence will not be universal. Where currencies are pegged to the US, housing markets are likely to diverge somewhat from the global adjustment.

Countries such as Hong Kong and the Gulf must follow US interest rates. Unless those countries re-peg their currencies, their central banks cannot raise interest rates. This may lead to higher inflation including in the housing market.

###

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Phone: (+632) 750 0560

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GERALD

Joseph Kenny asked:


Despite aggressive interest rate cuts by the Federal Government to maintain jobs and even a stimulus package sent out to assist with finances, consumer confidence is still lingering around its lowest level in close to two decades. With everything much more expensive now and the dollar still staggering to keep up against to the Euro, consumers are more likely to remain pessimistic about the economy and market landscape until at least sometime next year, and this fact is something that hurts the housing market the most more than anything else.

Indeed, a combination of the mortgage crisis and weak consumer confidence will cause the real estate market to suffer extensively throughout the year, hitting the industry with a double blow that squeezes it from both ends. The mortgage mess has led to an enormous number of foreclosures that have brought thousands of homes to the market, while a weak response from consumers means that these homes won’t be sold anytime soon.

Lynn Franco, leading director of the Consumer Research Center of TCB, or The Conference Board, has commented on the issue and said that consumer confidence is at the weakest it has been in 17 years. The Conference Board is recognized as producing the Consumer Confidence Index, a representation of the optimism consumers feel towards the economy which is measured by their activities of spending and saving.

In regards to the latest CCI evaluations, Franco believes that the current values look troubling in terms of where the economy is heading overall, and especially in regards to the housing market. She says that what with the way consumers are feeling apprehensive towards the market, not only concerning current circumstances but also future possibilities, they will most likely put off such an enormous purchase until they start to believe that things are at least a little more stable in the economy.

There was a report by the CCI in early 2007 that recognized a swelling of consumer confidence at the time, something that influenced economists to predict that the rest of the year would witness a turnaround for the real estate industry. However, this never happened, and in fact, consumer confidence went down considerably for the remainder of the year.

Inflation has had a considerable impact on consumer spending too, and especially in regards to real estate. With the cost of fuel prices and food at the level they are currently, very few people are willing to commit to the opportunity of buying a home, seeing it as a risky maneuver that can significantly burden them financially. Furthermore, employment is seen as something that is at risk for people across the nation, with job layoffs a very real threat currently for hundreds of individuals. When taking these aspects and seeing the big picture, it comes as no surprise that the housing market is suffering through one of the toughest times in decades.

Even though homes may been cheaper now than they have been in years, buyers are sitting on the sidelines still because they fear that their credit scores aren’t good enough to warrant finding a loan that can purchase them a home. Others are simply waiting it out and wanting to see how low prices are going to drop until they feel there’s a good enough opportunity to take the plunge into purchasing a new home.



ALFREDO

Malik Ahmad Attorney at law asked:


Challenging Wrongful Foreclosure in Nevada

This is a brief guide for lay persons about how to challenge foreclosure successfully. This memo is not a substitute for legal assistance. Foreclosure is a complex areas of law and one should not venture into it without proper legal help. However, at this time it is meant as only education purposes.  It is divided into the following parts:

 Filing Bankruptcy before Foreclosure Occurs

Suing to Enjoin Foreclosure before It Occurs Suing to Set Aside a Foreclosure that Has Already Taken Place Filing a Counterclaim in the Detainer Action after Foreclosure Has Occurred Filing Bankruptcy after Foreclosure Procedural Grounds for Challenging the Foreclosure Substantive Grounds for Challenging the Foreclosure

 Filing Bankruptcy before Foreclosure Occurs

This is often the shortest and simplest procedure. It has the following advantages: a bankruptcy filing automatically prevents foreclosure temporarily and sometimes permanently; you have the opportunity to cure a default in your payments by paying the delinquent amount in installments over a reasonable period; you may be able to reduce or eliminate the fees of the lender’s attorney; and you may be able to avoid interest on the amount you are delinquent (though not interest on the loan itself).

Hire a qualified lawyer for bankruptcy. A paralegal would not understand all the issues. It is not just the forms needed to be filled and filed. Also, you need an expert who can give you a qualified opinion considering all of your target areas. You must file before the foreclosure sale takes place, a time that usually is only 20 or so days after the foreclosure process starts with a letter to you or a notice in a newspaper.

 Suing to Enjoin Foreclosure before It Occurs

To obtain an injunction, you must file a complaint in a court. You will need a lawyer. Only a qualified lawyer can tell you how to obtain an injunction. Sometime a bond is required, and more often the requirements of a bond are dispensed with based on proper grounds.

There is a “clear” showing of “immediate and irreparable injury, loss or damage” or “that the acts or omissions of the adverse party will tend to render [the] final judgment ineffectual., in seeking Temporary injunction. Judges take this requirement seriously.

The most difficult requirement of all may be the need to give a bond “in such sum as the court … deems proper” unless you successfully obtain permission to bring the action as an indigent person. A homeowner with only modest amounts of other assets and income may be unable to qualify as indigent and may also be unable to find anyone willing to provide a bond, especially one on short notice.

 Suing to Set Aside a Foreclosure that Has Already Taken Place

The grounds for setting aside a foreclosure are limited to “some evidence of irregularity, misconduct, fraud, or unfairness on the part of the trustee or the mortgagee that caused or contributed to an inadequate price.” Defenses like the absence of a delinquency or violations by the lender of federal or state commercial law may not be raised.

The burden of proof is upon you in a lawsuit to set aside a foreclosure. Damages are the only remedy. There is nothing to prevent a third-party purchaser from keeping your house even if he knows of your claim against the lender and even if he believes that your claim is meritorious.

 Filing a Counterclaim in the Detainer Action after Foreclosure Has Occurred

Foreclosure may be challenged by a counterclaim when the lender (or other new owner of the property) seeks possession by a “detainer” action. It is better to file the counterclaim in writing, and the grounds for doing so are discussed below. It is preferable that you use a lawyer to assist you, but most persons do not.

Lenders may assert that a wrongful foreclosure may not be challenged even when the parties are before the court on the issue of possession, the right to possession is necessarily founded on ownership, and ownership depends on the lawfulness of the foreclosure.

Not every new owner is successful in obtaining possession. It may overlook the proof that is necessary to show that it the foreclosure was conducted properly and that it was entitled to foreclose - things like affidavits or testimony showing that you did not make timely payments. You may and should contest every assertion made by the new owner, even if you do not have a lawyer. The new owner has the burden of proof. If it fails to meet that burden, the judge may conclude that you are entitled to remain in possession even though you no longer own the home.

 On the other hand, if the new owner is successful in the detainer action, it is entitled not only to possession but also to the rental value of the property from the date of foreclosure until the date of removal.

Must furnish a bond

 The amount of it can be prohibitive: a “sufficient amount to cover, besides costs and damages, the value of the rent of the premises during the litigation.” Even the furnishing of an affidavit of indigency may be insufficient to retain possession during an appeal.

 Filing Bankruptcy after Foreclosure

 It is possible to set aside the foreclosure through the bankruptcy process. The grounds that may be asserted are discussed below.

 There is some good news even if you lose the challenge; bankruptcy usually discharges all or part of a deficiency judgment against you for any amount still due after the foreclosure occurs.

Procedural Grounds for Challenging the Foreclosure

Failure to Give Personal Notice. No personal notice to a borrower is required by statute. However, we believe that federal and state constitutions require personal notice to each borrower, either by summons or by certified mail that is actually received, and we are litigating cases so as to establish this principle.

Insufficient Notice by Newspaper Publication or Posting in Public Places. Under Nevada statutes, advertisement of a foreclosure sale must be made three different times in “some” newspaper “published” in the “county where the sale is to be made.” Only 20 days’ notice is required, and the use of publications read almost exclusively by lenders and lawyers is permitted. Both the shortness of the time and the use of obscure newspapers seem vulnerable to constitutional objection.

Failure to Give Notice Required by the Deed of Trust. Many deeds of trust require notice of foreclosure by certified mail, or at least by mail, in addition to notice by newspaper publication. Many also require notice - before foreclosure is sought — that the entire sum has been declared to be due because of a late payment or other default. No Meaningful Opportunity to Dispute the Foreclosure. This too is a constitutional challenge to Nevada’s foreclosure process. It is based on the notion that making you find a lawyer and file a lawsuit in 15 days, assume a high burden of proof, and furnish a bond are unfair hurdles imposed on you. Defects in the Foreclosure Sale. Nevada judges have said that the foreclosure must occur in the county in which the property is located; it must take place at an accessible location; and a lender may not use a purely technical default as a basis for foreclosure. However, when the lender demands the full amount of the debt, they have refused to let the borrower cure the delinquency by paying the disputed amount before the foreclosure occurs. They also have ruled that there is no minimum price that must be paid and have allowed the lender to recover a deficiency judgment if the amount received in the sale is less than the amount owed. They have yet to decide whether the combination of a shockingly low price and another procedural defect are sufficient to disallow the foreclosure.

 Substantive Grounds for Challenging the Foreclosure

The following claims and defenses are among those that may be raised so as to defeat a foreclosure altogether or reduce the amount of any deficiency:

 Late Payments Were Accepted on Other Occasions. This suggests that the lender waived the right to refuse late payments and was estopped from foreclosing.

The Lender Refused to Supply a Pay-Off Amount or Accept Full Payment so Foreclosure Could Be Avoided. Despite unfavorable precedent, this could be a viable ground. A Borrower was in Military Service at the Time of the Foreclosure. The Loan was Unconscionable. That is, the inequality of the bargain is so manifest as to shock the judgment of a person of common sense, and the terms are so oppressive that no reasonable person would make them on the one hand, and no honest and fair person would accept them on the other. The Making of the Loan, or the Servicing of It, was Riddled with Unfair and Deceptive Practices that Violated the Nevadae Consumer Protection Act. The Servicer Collected Unauthorized Fees for the Escrow Account, or as Late Charges, or as Attorney Fees during the Foreclosure Process. One Spouse Was Required to Sign the Mortgage Note even though the Credit of the Other Spouse was Sufficient. One or More Borrowers Lacked the Mental or Physical Capacity to Borrow. The Mortgage Broker Was Paid an Unlawful Sum by the Lender. The Lender Violated a Relationship of Trust with the Borrower that Developed in the Lending Process. There Was Fraud or Misrepresentation by the Lender in the Making of the Loan.

YOUNG

Susy Copus asked:


By mid 2007 house prices were still rocketing with the early predictions for 2007 to be that house prices would continue to rise possibly by around 10%.  That was before sections of the investment world realised that their money had been invested in the US’s collapsed housing market.  With that realisation, money was pulled out of the system and lending came to a near standstill.  We know the rest of the story.

First time buyers had been priced out of the housing market and were fearing that the longer they out of the market, the harder it would be to buy their own place.   Family members would contribute to a deposit, friends could co-own a property with a shared mortgage, or people decided saved and rented meanwhile.    Now, with house prices set to fall further in 2009 affording a house will become easier.  In fact, according to The National Association of Estate Agents (NAEA) the proportion of first-time buyers entering the housing market in November 2008 increased for the third month in a row.  First time buyers accounted for 10.4% of all properties sold, up from 8.3% in August. 

Cash buyers are the next winners.  Cash buyers will be able to buy a property without having to secure a mortgage and will be the crème-de-la-crème of buyers, so sellers will be more likely to lower their price even more to secure them. 

Investors buying property at auctions to renovate or to let out are winners too.  As reported in the Guardian, the average price of a house sold at an auction has fallen by 31.1% in the three months to November, compared with the same period a year ago. This is more than double the falls reported by Halifax and Nationwide. 

Homeowners wanting to move up the property ladder could also be winners.  Assuming a mortgage can be secured, the percentage fall in higher priced property will equate to more money in your pocket.

The main losers are those that bought at the height of the property boom and now are facing negative equity for a number of years.  For some homeowner, the recession and the expected redundancies may equate to mortgage payments being unaffordable.  As such, house repossessions are expected to rise by 67% from 45,000 this year to 75,000 by the end of 2009.  This includes homeowners and landlords whose rental income no longer covers the mortgages. 

In terms of life satisfaction, sellers waiting to sell are losing out on a daily basis.  They want to move house, yet are stuck where they are until they find a buyer.  In the meantime the value of their property is falling and they are losing money.  Estate agents are trying to drum up business by holding a high-street end of year sale.  Yet, moving over Christmas and the holiday season is historically a quiet time for estate agents and the housing market in general.

The housing market is likely to continue falling in 2009 and may bottom out by 2010.  A slow recovery is expected and banks, adverse to risk, are unlikely to lend at the levels seen in 2007.  Property will be in comparison, cheap and more affordable.  Borrowers will be low risk and able to pay either fairly small deposits with a higher interest rate or larger deposits with a lower interest rates.  As a result the market and prices will be more secure and making money on property will be through long term investment or property renovation. 

If you are thinking of buying or selling now, or in the near future, review your options carefully and work out how you can be a winner.



BOOKER

Ask Guy asked:


 

Will The Housing Market Continue to fall?

The over-whelming majority of states have seen their real estate markets slow down. However, in states where real estate sales have slowed it can still be a good time to purchase property. Many veteran real estate investors often buy more real estate in slower markets, capitalizing on the down turn to make a higher profit over the long haul, purchasing properties at lower prices than previously possible.

www.newfrontierinvestments.com

 

Real estate sales had been booming for years, but in the majority of markets home sales have slowed. Although home ownership reached an all time high, increasing foreclosures are having a significant impact on the market. Investors have capitalized on creative investments strategies. For example short sales fell out of favor when mortgage delinquencies were low and rising home prices made it easy for borrowers who ran into trouble to sell their homes or refinance their mortgages. But as the housing market cools, interest in short sales is increasing. Due to adjustable rate mortgages and conventional loans are entering default at unprecedented rates as United States battles its worst housing crisis in decades with increasing foreclosures. Housing deflation will last well into 2009 and may linger much longer. More and more homeowners are walking away from mortgages in United State and housing prices are tumbling. But the investors’ market is looking up as bargain hunters buy up foreclosures at bargain basement prices and are turning out huge profits. Sadly, there’s no Kelly Blue Book equivalent for real estate investors to lookup used property prices in, so you’re going to have to learn for yourself how to estimate the current market value of potential investment properties. However, thanks to computers and the Internet, in most real estate markets it’s not that difficult to get a rough estimate of a property’s current market value. This is especially true for real estate investors located in counties where all property ownership, sale and tax assessment records are available online. Wealth has always been built when a problem exist. So yes the market is execpted to continue to decline. How ever if you smart you my come out of this crisis on top. Remember, another man trash is another man treasure. I also want my readers to have a chance to speak to me live for a free 15 min coaching you can call 1-800-931-1393

www.newfrontierinvestments.com



LAURENCE

Lee Bell asked:


Notwithstanding the fact that the city of Phoenix was quite small until 30 or 40 years ago, the Valley of the Sun is presently the fifth largest city in the country. Far-sighted investors saw this arid desert as the opportunity it was. Today, the city continues to spread out and offer opportunities to those who know where to find them.

 

The metro area is full of people who moved here to elude snowy winters. They manage to abide the hot summer each year and look forward to eventful weekends full of favorite sports teams’ home games and outdoor recreation in the fall through spring months. Lovers of nature learn that any direction will take them somewhere new and different to enjoy. It is regrettable that, thanks to the real estate market, too many families in Phoenix are losing their homes to foreclosure. They are now less than thrilled about this life in the desert.

 

The Real Estate News in Phoenix Contains Mixed Messages

 

The Greater Phoenix metro area real estate community is staggering from a suffering housing market. If you read the stories in the media the situation seems very grim. However, if you pay attention to the statistics, thousands of homes are being sold every month. What this seems to indicate is that the real estate market is not as dead as the media puts forth.

 

That does not imply that numerous homeowners are not agonizing over difficulties in keeping up with their mortgage payments on real estate properties that were over leveraged in the boom years, or that national lenders are not going out of business. Many homeowners are losing their homes to foreclosure and many those in the lending industry are losing their jobs thanks to the adjusting market trends. Investors certainly enjoyed the great profits created while the market was high, and so we are unsympathetic to the grumbling we hear from those who raked in the profits. However, those very same people who benefited so much from the boom of the recent few years are also leaving the real estate industry by the thousands.

 

Be Looking for Opportunities in the Phoenix Real Estate Correction Period

 

Of course, problems still abound in the Phoenix real estate market. National lenders continue to close up shop. The mortgage industry is slowing down and letting people go. Normal families are having trouble keeping up with their mortgage payments when they owe a lot more than their homes are now worth and took on adjustable rate mortgages and are unable to refinance to a fixed rate. Foreclosures are going up. We need to be on the lookout for the opportunities as they come up. This is just one of those ordinary adjustment periods. Before long, the market will begin to move forward again, perhaps not as fast or as furious, but more steadily and with circumspection.

 

We can already see some of that positive movement in the most fashionable areas of the Valley. Very shortly, an annual growth rate of five to eight percent will again come to those of us who are patient. After all, the market is not completely dead. Long-term investment in the Phoenix real estate market is wise.

 

The city of Mesa is really experiencing an upturn, check out Las Sendas homes for sale with private pools or Alta Mesa golf real estate for some great long-term investments.



EVERETT