Housing Market: Over 10 Million Properties In U.S. Have “Underwater Mortgages” With “Shadow Inventory ” Of Foreclosures At 1.5 Million Homes

As of the summer of  2012, according to Forbes, “…there are still more than 10 million properties with underwater mortgages, and a shadow inventory of 1.5 million, or four months supply.  Negative equity will continue to take its toll on consumption, while the shadow inventory, worth about $246 billion according to CoreLogic, will constrict lending and probably affect banks’ earnings…”

Out of those 10 million mortgages that are underwater, about 3 million remain “severely underwater,” which means the initial loan-to-value ratio (LTV) is 125% or more (in other words, the value of the mortgage is at least 25% higher than that of the property).  While seriously delinquent mortgages (at least 60 days) have declined, the percentage of loans in foreclosure has remained stubbornly high, at about 10% of underwater mortgages.

According to CoreLogic, the shadow inventory stood at 1.5 million in April, which translates to 4 months of supply.  After having peaked at 2.1 million in 2010, the shadow inventory has declined, but still remains elevated; its total dollar volume is $246 billion.

Source:  http://www.forbes.com/sites/afontevecchia/2012/06/26/10-million-underwater-mortgages-and-shadow-inventory-worth-246b-mean-housing-trouble/


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I just heard from D.C…you need to see this!

I just heard from D.C. that he’s very close to running out of his Virtual Short Sale Investing DVD/Blueprint courses.

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Plenty of Ways to Make Real Estate Cash!

If you are looking for a quick way to make some cash, then you might want to look into real estate and making some real estate cash. Because of the way the market it is at the moment, there is a real large possibility that you, like others, can make a lot of real estate cash!

For those of you who watch the news, or read the newspaper, you probably are aware of the fact that many people are losing their homes to the bank. This can be a very good thing for people who need to make some money and are turning to real estate! Foreclosures these days can be bought for such a low price and you can turn them around for a large profit and make some serious real estate cash!

The main thing that you need to keep in mind when it comes to real estate and making money is you need to make sure that you have enough in your budget to cover repairs as well as taxes. In order to sell the house and turn it around for real estate cash, you need have the house in tiptop condition!

Once you get started making real estate cash, you can keep on building and buying more and selling more and you can really start to turn this into some sort of small business and use the real estate cash that you make as your actual income. This way you could turn into your own boss, and make the money that you want to make!

If you seriously want to look into making real estate cash and turning old foreclosed homes into some profit then you are going to need as much information as you can get! The more information that you have the better off you are going to be and the more real estate cash you are essentially going to make. After you get all of your information you might want to start building a rock solid plan so that you have an idea of what direction you want to go in. Remember you have control of how much real estate cash that you want to make, so the smarter that you are at it, the better off you are going to be.

So, you have the basics that you need in order to make some real estate cash. You need to have a lot of information and you need to have some sort of plan to get you off of your feet. From there, you are just going to need some funding and then you can begin investing and you can begin to make some real estate cash. It may sound like a hard thing to get into, but the fact of the matter here is, people are losing homes and some people are buying homes. So turn that foreclosed home into a real estate cash cow, and start looking at homes that can make you money!



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Real Estate Forclosures for Dummies

For many people looking for a real estate bargain, foreclosures may be the answer. Many cities across the country have been hit hard by the foreclosure boom. Make sure to research your area and see what kinds of deals are available out there.

Stopping a foreclosure is not easy, but if you can stay informed and seek help it may be possible. The equitable proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Now you know what real estate foreclosure means you may know what to look for.

The credit crisis has made obtaining refinancing much more difficult. Tons of money have been lost by lenders on risky sub-prime loans. Now homeowners struggling to make payments are unable to refinance to escape payments they can not afford. This has resulted in a glut of real estate foreclosures.

HUD homes or houses that have been foreclosed on by the governments department of housing and urban development can also be a very good deal. Real Estate Foreclosures become HUD homes when a government backed loan is foreclosed on. To purchase one of these as-is homes make sure to find a realtor who is qualified to sell them.

Tax reversion (property tax foreclosure) Property tax foreclosure is the process of disposing of property on which taxes have not been paid. In all US jurisdictions a lender who conducts a foreclosure sale of immovable property which is the subject of a federal tax lien

Now, with rising interest rates and softening prices threatening to derail homeowners who stretched to buy with risky loans, the message from this movement goes, this is the year for foreclosure bargains. Even more exotic products, such as interest-only loans, where balances don't shrink, or, worse yet, option ARMs, where balances grow, also contributed to foreclosure problems.

Federal, state and local lawmakers have struggled to respond to a growing wave of foreclosures among borrowers with higher-cost subprime mortgages. All this means that the right foreclosure deal may be out there waiting for you.

To Recap, be aware of the different types of foreclosures and which one may provide the best oppurtunity for investment. Be sure to do your research and to find a qualified realtor. Then with a little luck and a little patience the perfect deal may be out there for you.

by Rob Muller

For any inquiries about foreclosures or short sales in Cherokee County Real Estate Rob Muller is an full time Realtor specializing in Cherokee County GA Real Estate as well as East Cobb Real Estate

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What You Need To Know When Purchasing A Foreclosure Home

Before choosing to purchase a foreclosure home there is a great deal of information that you need to gather to make sure that you get yourself a bargain. If you take the find to do your research you could quite possibly make some very good savings when purchasing a foreclosure home. So make sure that you take your time to do this research to make sure you make the right choice.

One very important thing to do is to speak to a few sales trustees. By doing this you can find out some very important information about the home you are looking at. Sales trustees are the only people that you can truly depend on to get you the best savings. Ask them about everything you can think of and do not be afraid of holding back. These people are there to help you so it is important that you know what to ask them.

You need to be aware that there could be some serious problems with the home you ask thinking of buying. You need to make sure that you find out about these before you buy otherwise you could end up with a home that you are not happy with. Doing your research and finding out about things like this in advance will make all the difference when you make your purchase.

It is just as important for you to find out about this as it is to find a perfect foreclosure home at a bargain price. You won't find out this information overnight, you will need to be prepared to make a lot of phone calls and be willing to sit through numerous meetings to get this information. You will also need to do plenty of bargaining too.

You should do a title search in order to determine exactly which foreclosure homes in your area have any problems that may not have been listed. If you need help to do this search you could look at using the services of a title agency who will be able to help you. If you don't know of any title agencies off the top of your head try looking in your phone book or searching on the internet. You should be able to locate one very quickly.

Of course you shouldn't just rely on other people to find out all the information about a foreclosure home for you. You also need to be willing to research things yourself and see if there's a better way of doing things. By putting the effort in at the start and doing your research you will stand a much better chance of getting yourself a bargain.

To find out more about va foreclosures check out http://www.stopbankforeclosurenow.org


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Pre-foreclosures: The Goldmine of the Next Decade

Foreclosure is a process in which a piece of real estate becomes the property of a lending institution due to the legal owner's inability to make scheduled payments on the mortgage or deed of trust.

Typically, the lender files a notice of default after a homeowner fails to make his or her mortgage payments for several months. If the loan is not reinstated, the lender moves to foreclose. As a result, the lender becomes the new legal owner of the property and has the right to resell the property and recover any outstanding loan balances in addition to foreclosure expenses.

The foreclosure process consists of three stages: pre-foreclosure, which begins the redemption period; foreclosure, which is when the home is sold at a public auction; and post-foreclosure, which is when the property reverts back to the lender if it fails to sell at the public auction. Although each stage offers bargain-buying opportunities, the pre-foreclosure stage is considered by many real estate investors to be the most promising time to purchase during the foreclosure process.

Investing in pre-foreclosures means you will be acquiring property any time before the scheduled public auction. As the investor, you will be buying the property directly from the owner. The earlier you contact a homeowner in pre-foreclosure, the more time you will have to make a connection, structure a deal and purchase the property.

There is a common misconception that real estate investors purchasing homes from owners facing foreclosure are taking advantage of the homeowner's misfortune. This is simply not true. A Notice of Default is filed only when a borrower (property owner) has broken the terms agreed upon with lender at the inception of the loan in default. This breech gives the lender every right to protect its financial interests. Therefore, an experienced real estate investor becomes the problem solver by finding a win-win solution that will help the homeowner get out of default.

Property owners facing foreclosure are typically scared or in denial. Many of them hope some miracle will happen that will make their ordeal simply go away. Doing nothing will certainly ensure a homeowner's foreclosure, loss of home, loss of equity and credit rating damage for an entire decade.

When dealing with an owner in pre-foreclosure, talk to them as soon as possible. It is vital to explain the following three benefits of avoiding foreclosure:

1. Protects their credit

By working with an investor, homeowners may be able to avoid foreclosure and begin rebuilding credit. Even if a homeowner endures the process of losing his or her home, the repercussions of a foreclosure on a credit report are far reaching. A poor credit rating affects everything from buying a car to renting a home. With certain businesses, credit is even a factor in employment. Investors often help homeowners protect credit.

2. Make a profit

While it is true that real estate investors purchase at a discount, a homeowner facing default may still be able to recover some of their equity and walk away with profit.

3. Get a fresh start

Stopping the foreclosure allows homeowners to breathe a sigh of relief. As the pain and pressure of the foreclosure lifts, they find it easier to move on and begin rebuilding their life.

Buying in the pre-foreclosure stage can be the most lucrative slice of a real estate investor's business. Once rapport and trust have been established, a professional real estate investor can determine whether the sale of a property would truly benefit everybody involved.

There are various ways to profit while helping people find viable solutions for their defaults. The following three are most common:

1. Purchase at a discount

Real estate investors are not likely to make a profit by purchasing at full market value. As an investor, it is essential to inform potential sellers that you earn your living from your profits. Therefore, you must buy for less than retail price while taking into account acquisition, sales and holding costs and any necessary repairs. A discount of twenty to thirty percent of full market value is common practice among real estate investors.

2. Buy property "subject to" the existing loan

There are widely spread rumors that it is illegal to purchase property that involves taking over an existing mortgage. This is completely false. While assumable loans are practically extinct, it is perfectly legal to purchase property subject to an existing loan. It is important to be aware of the "due on sale" clause stating the existing lender can call the loan due upon the transfer of title. In other words, the lender has the right to demand full payment of the outstanding loan balance at the time of transfer. In practice, lenders would rather receive their monthly payments than call the loan. Purchasing property subject to the existing financing means a smaller out-of-pocket investment for the real estate investor.

3. Create instant equity utilizing a Short Sale

Structuring a Short Sale can prove profitable when dealing with a homeowner facing foreclosure whose property is equity deficient. In this market, troubled lenders would rather discount their mortgages than increase their already mounting inventory of foreclosed properties. The type of discount you create will largely depend on the quality of your Short Sale package combined with the quality of your negotiating skills.

Real estate investors prevent a large number of foreclosures every year across the country. There are many ways for investors to make a profit while helping people move on with their lives.

Undoubtedly, the money is there to be made. Pre-foreclosures are a fabulous way to make it.

About the Author

Brenda Coté is a Real Estate Investor, Real Estate and Mortgage Broker, Mentor, and Wealth Coach. At Transforming Lives, Creating Wealth, Brenda employs a "whole person" approach to support female Real Estate Investors succeed in business and life. To download Brenda's FREE audio workshop, "The Seven Elements of a Wealth-Creation Mindset" please go to: http://www.TransformingLivesCreatingWealth.com


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