WASHINGTON – Fewer people bought new homes in December, making 2011 the worst sales year on record.
The Commerce Department said Thursday new home sales fell last month to a seasonally adjusted annual pace of 307,000. The pace is less than half the 700,000 that economists say must be sold in a healthy economy.
About 302,000 homes were sold last year. That's less than the 323,000 sold in 2010, making 2011 the worst year on records dating back to 1963.
The median sales prices for new homes dropped in December to $210,300. Builders continued to slash price to stay competitive.
Though new-home sales represent less than 10 percent of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to the National Association of Home Builders.
A key reason for the dismal 2011 sales is that builders must compete with foreclosures and short sales — when lenders accept less for a house than what is owed on the mortgage
Builders ended 2011 with a third straight year of dismal home construction and the worst on record for single-family home building. But in a hopeful sign, single-family home construction, which makes up 70 percent of the market, increased in each of the last three months.
See the original post at www.foxnews.com.
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Showing posts with label short sale. Show all posts
Showing posts with label short sale. Show all posts
Thursday, January 26, 2012
Sunday, April 11, 2010
Even Women Are Making Money In Real Estate Using Short Sales
Seven Reasons Women Are Turning to Real Estate in Record Numbers
Think short sales and real estate investing is a guys game? Think again. Women are making in-roads into real estate in a big way. Forget clipping coupons or trying to save up for a vacation, research shows that women have been making the majority of home buying decisions related to the purchase of a family home for several years but now many are taking it one step further. Women are now making investment decisions on a regular basis including the purchase of short sale real estate and other investment assets. In fact, nearly 1 out of every 4 real estate transactions are conducted by women buyers.
Below are the most important reasons women are turning to real estate in record numbers:
1. Profits. Women have historically lagged behind men in earning capacity even with the same education and job experience. Short sale real estate provides an exceptional opportunity for women to supplement income without having to work second or even third jobs.
2. Retirement. Even after the most recent rebound, many investment portfolio's are far from healthy. A few well-timed short sale deals are able to replace much of that lost income.
3. Convenience. Real estate is flexible allowing women the time to interact with family and friends without sacrificing a life they love.
4. Security. A few well timed deals or rental properties afford women an independent means of income aside from those of their spouse or significant other. Statistically women live longer than men which often results in a dramatic decline in their standard of living towards the end of life. Holding a few long term assets that appreciate over time can assure access to funds at any time of life.
5. Empowered. Not surprisingly, men have been harder hit by the recent downsizing and lay-off's than women. Experts believe higher overall income levels are acting as an inverse incentive to eliminate men while keeping less expensive staff. The shift in income is increasingly shifting the focus of power in the household.
6. Credit Changes. Gone are the day when women must have a co-signer but lower income levels combined with children and more obligations often resulted in a practical need for two income applications. As women earn more and build solid credit reputations independent from their spouse or significant other, they are asking for...and getting...more favorable terms. Combined with federal incentives such as tax breaks, it's a winning combination.
7. Fun. Women have learned to enjoy the freedom, prestige and game of negotiation once thought to be the exclusive domain of men. Of course, communication skills combined with social savvy, independent wealth and a bit of encouragement has resulted in a record number of women learning that wheeling and dealing is not only a great way to make money but a lot of fun!
Yes women are doing this with Short Sales - TODAY!
For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.
Think short sales and real estate investing is a guys game? Think again. Women are making in-roads into real estate in a big way. Forget clipping coupons or trying to save up for a vacation, research shows that women have been making the majority of home buying decisions related to the purchase of a family home for several years but now many are taking it one step further. Women are now making investment decisions on a regular basis including the purchase of short sale real estate and other investment assets. In fact, nearly 1 out of every 4 real estate transactions are conducted by women buyers.
Below are the most important reasons women are turning to real estate in record numbers:
1. Profits. Women have historically lagged behind men in earning capacity even with the same education and job experience. Short sale real estate provides an exceptional opportunity for women to supplement income without having to work second or even third jobs.
2. Retirement. Even after the most recent rebound, many investment portfolio's are far from healthy. A few well-timed short sale deals are able to replace much of that lost income.
3. Convenience. Real estate is flexible allowing women the time to interact with family and friends without sacrificing a life they love.
4. Security. A few well timed deals or rental properties afford women an independent means of income aside from those of their spouse or significant other. Statistically women live longer than men which often results in a dramatic decline in their standard of living towards the end of life. Holding a few long term assets that appreciate over time can assure access to funds at any time of life.
5. Empowered. Not surprisingly, men have been harder hit by the recent downsizing and lay-off's than women. Experts believe higher overall income levels are acting as an inverse incentive to eliminate men while keeping less expensive staff. The shift in income is increasingly shifting the focus of power in the household.
6. Credit Changes. Gone are the day when women must have a co-signer but lower income levels combined with children and more obligations often resulted in a practical need for two income applications. As women earn more and build solid credit reputations independent from their spouse or significant other, they are asking for...and getting...more favorable terms. Combined with federal incentives such as tax breaks, it's a winning combination.
7. Fun. Women have learned to enjoy the freedom, prestige and game of negotiation once thought to be the exclusive domain of men. Of course, communication skills combined with social savvy, independent wealth and a bit of encouragement has resulted in a record number of women learning that wheeling and dealing is not only a great way to make money but a lot of fun!
Yes women are doing this with Short Sales - TODAY!
For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.
Sunday, January 17, 2010
New FHA Loan Guidelines Remove 90 Day Holding Rule For Foreclosed Homes
Lenders have recently held investors to standards that require them to hold a property for at least 90 days. That was until Friday January 15, 2010. Both the government and major lenders are have finally realized that bank owned properties (REO) and short sales are becoming the norm in today's market place.
According to HUD Secretary Shaun Donovan, a temporary ban on the "90 day holding rule" (also known as the "90 day no flip rule") will be relinquished for one year. There are certain restrictions, but "this temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties" (www.hud.gov). In short, the FHA has finally realized that the purchase, rehab and resell of a foreclosed property can often take less that 90 days in today's market.
This reversal of the "90 day no flip rule" is the first step toward stabilizing home prices and preventing any further deterioration of this economy. The effective date of this new ruling will begin February 1, 2010. In order to protect borrowers from fraudulent practices, the following guidelines must be upheld.
For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.
According to HUD Secretary Shaun Donovan, a temporary ban on the "90 day holding rule" (also known as the "90 day no flip rule") will be relinquished for one year. There are certain restrictions, but "this temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties" (www.hud.gov). In short, the FHA has finally realized that the purchase, rehab and resell of a foreclosed property can often take less that 90 days in today's market.
This reversal of the "90 day no flip rule" is the first step toward stabilizing home prices and preventing any further deterioration of this economy. The effective date of this new ruling will begin February 1, 2010. In order to protect borrowers from fraudulent practices, the following guidelines must be upheld.
- If the resell of the home is 20% greater than the original purchase price then the lender must meet specific conditions.
- All transactions must be within arms length of both buyer and seller parties.
- The waiver of the "90 day no flip rule" will not apply to Home Equity Conversion Mortgages.
For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.
Sunday, December 6, 2009
Short Sale & Foreclosure Investors Transactional Funding
Many of you today want to know exactly what is a "Short Sale?"
It is simply a sale of real estate in which the sale price of a property is less than the balance owed on the property's loan.
Exactly how does it happen?
Often times this occurs when a borrower fails to pay the mortgage loan on the property. At this point the lender decides that selling the property for a loss is better than trying to collect delinquent payments from the borrower.
Who decides the process?
In a short sale both parties consent, because it allows both the borrower and the lender to avoid foreclosure. This can save the lender additional fees that most likely will not get paid by the borrower. In addition to helping out the lender, the borrower may be able to avoid damages to his/her personal credit.
So what does this mean for Short Sale and Foreclosure Investors?
This means that for all short sale and REO investors who flip their deals, you're going to have to come up with your own funds. Unfortunately many investors don't have their own funds to close the A to B transaction. There are lenders out there today that are prepared to offer the transactional funding needed (also called flash cash) so that you can complete your double closes. They can provide 100% of the funds needed to close your A to B transaction so that your B to C transaction can close and you can collect your profits from the difference.
Most title companies these days no longer allow the funds from your B to C transaction to be used to close the A to B transaction (also called dry funds) and therefore require that you supply (wet funds) to close your A to B transaction. That is where transactional funding comes into play. While there are a few companies out there that offer this service, most ONLY can offer the same day close funds and several transactions require more time. If you're interested in "Transactional Funding" and other resources like these to help your real estate business, then simply fill out the form below.
In addition, Bank of America has been adding some stipulations inside the short sale approval letter which states that you as the investor may not re-sell the property for 30 days. Unless you have your own cash to take down the deal and hold for 30 days, that will kill your deal and most times, they are refusing to lift that restriction. Find out that there is an alternative so you don't lose the deal or your profits.
It is simply a sale of real estate in which the sale price of a property is less than the balance owed on the property's loan.
Often times this occurs when a borrower fails to pay the mortgage loan on the property. At this point the lender decides that selling the property for a loss is better than trying to collect delinquent payments from the borrower.
Who decides the process?
In a short sale both parties consent, because it allows both the borrower and the lender to avoid foreclosure. This can save the lender additional fees that most likely will not get paid by the borrower. In addition to helping out the lender, the borrower may be able to avoid damages to his/her personal credit.
So what does this mean for Short Sale and Foreclosure Investors?
This means that for all short sale and REO investors who flip their deals, you're going to have to come up with your own funds. Unfortunately many investors don't have their own funds to close the A to B transaction. There are lenders out there today that are prepared to offer the transactional funding needed (also called flash cash) so that you can complete your double closes. They can provide 100% of the funds needed to close your A to B transaction so that your B to C transaction can close and you can collect your profits from the difference.
Most title companies these days no longer allow the funds from your B to C transaction to be used to close the A to B transaction (also called dry funds) and therefore require that you supply (wet funds) to close your A to B transaction. That is where transactional funding comes into play. While there are a few companies out there that offer this service, most ONLY can offer the same day close funds and several transactions require more time. If you're interested in "Transactional Funding" and other resources like these to help your real estate business, then simply fill out the form below.
In addition, Bank of America has been adding some stipulations inside the short sale approval letter which states that you as the investor may not re-sell the property for 30 days. Unless you have your own cash to take down the deal and hold for 30 days, that will kill your deal and most times, they are refusing to lift that restriction. Find out that there is an alternative so you don't lose the deal or your profits.
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