24 Sep 10 How Wall Street Reform Benefits Foreclosure Buyers
By Peter G. Miller
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 growing demand for rental housing.
‘In previous eras, we haven’t seen people question whether homeownership was the right decision. It was just assumed that’s where you want to go,’ Raphael Bostic, a senior official with the Department of Housing and Urban Development, told the Washington Post. ‘You’re not going to hear us say that. What we’ve seen in the last four years, is that there really is an underside to homeownership.’
The change in government policies impacts the demand for investment real estate because a growing population combined with a smaller percentage of owner-occupants means more demand for rental property.
Mortgages:
The Wall Street reform legislation homogenizes the mortgage marketplace and assures that there will be no shortage of conventional, VA and FHA loans. Lenders are entirely free to offer more exotic financial products, but only if they’re willing to set aside reserves, eliminate prepayment penalties and face potent lawsuits from borrowers and mortgage investors enabled by the new standards.
For buyers and investors with proper paperwork and visible finances the new loan requirements will be a low hurdle, however, for many borrowers mortgage applications will suddenly become more difficult. Application reviews will stiffen and lender standards will rise, meaning that many loan applications will be declined. We’re already seeing this with the new devotion to higher credit scores.
The tougher financing standards will create two results. First, there will simply be fewer buyers than might otherwise be the case. Second, there will be fewer buyers who can ‘stretch’ and afford a bigger mortgage for a given income. In the end these two factors will create less pressure to push up home prices.
Rentals & Foreclosures:
Since the end of World War II, we have had a steady need for additional rental units to accommodate a growing population. In 1950 we had a population of 153 million, a figure that will soon top 310 million. Now we have massive numbers of foreclosures adding to demand.
‘For 2010, the midyear numbers put us on pace to exceed three million properties with foreclosure filings by the end of the year, and more than one million bank repossessions,’ said James J. Saccacio, chief executive officer of RealtyTrac. ‘The roller coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continue to sit just below the surface, threatening the fragile stability of the housing market.’
Marketplace Changes:
Although there’s plenty of property demand, that demand is not actionable. Individuals who might once have bought are effectively being shut out of the marketplace by such issues as tougher loan standards, unemployment, reduced wages, credit reports with major black marks and changing federal policies. And while such individuals may not have the financial muscle to buy a home, they often have sufficient income to afford a good rental.
Time & Place:
So is this the time to buy investment real estate, especially short sales and foreclosures? In many markets there’s a fusion of discounted acquisition costs, historically-low interest levels, falling vacancy rates and rising rental rates. This doesn’t mean specific real estate investments are attractive everywhere or for all buyers, but in areas where such trends exist and seem likely to continue this may well be an unusually good time to consider short sales and foreclosures, two ways to acquire discounted real estate.
24 Sep 10 RealtyTrac 09/16/2010 PRESS RELEASE
IRVINE, Calif. – Sep. 16, 2010: RealtyTrac (realtytrac.com), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report for August 2010, which shows foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 338,836 properties in August, a 4 percent increase from the previous month but a 5 percent decrease from August 2009. One in every 381 U.S. housing units received a foreclosure filing during the month.
‘The trend lines of decreasing default notices and increasing bank repossessions converged in August, with virtually the same number of new default notices and bank repossessions for the month – a clear indication that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers,’ said James J. Saccacio, chief executive officer of RealtyTrac. ‘On the front end, seriously delinquent loans are rolling into foreclosure at an unusually slow rate, while on the back end the dammed-up inventory of properties already in foreclosure is moving to REO in steady stream rather than a flood – presumably to prevent further erosion of home prices.’
- Foreclosure Activity by Type:
A total of 96,469 U.S. properties received default notices (NOD, LIS) in August, a 1 percent decrease from the previous month and a 30 percent decrease from August 2009 – the seventh straight month where default notices have decreased on a year-over-year basis. Default notices peaked in April 2009, when 142,064 were reported nationwide.
Default notices increased on a monthly basis in some states, counter to the national trend. Default notices in California increased on a month-over-month basis for the third month in a row, and New York, Indiana, Ohio and Florida also registered month-over-month increases in default notices.
Foreclosure auctions (NTS, NFS) were scheduled for the first time on a total of 147,003 U.S. properties in August, a 9 percent increase from the previous month and a 2 percent increase from August 2009. The August total for scheduled auctions was the second highest monthly total in the history of the report, which goes back to April 2005, and was 7 percent below the peak of 158,105 in March 2010.
Lenders foreclosed on 95,364 U.S. properties in August, the highest monthly total in the history of the report and about 2 percent higher than the previous peak of 93,777 bank repossessions (REOs) in May 2010. August REO activity increased 3 percent from the previous month and was up 25 percent from August 2009 – the ninth straight month where REOs have increased on a year-over-year basis.
- Nevada, Florida, Arizona post top state foreclosure rates in August
Nevada continued to document the nation’s highest state foreclosure rate for the 44th straight month, with one in every 84 housing units receiving a foreclosure filing in August – 4.5 times the national average. Nevada maintained the nation’s highest state foreclosure rate despite a 25 percent year-over-year decrease in foreclosure activity in August – the 11th straight month where Nevada foreclosure activity has decreased on a year-over-year basis.
Florida foreclosure activity decreased on a year-over-year basis for the fifth straight month in August, but the state’s foreclosure rate still ranked second highest among all states. One in every 155 Florida housing units received a foreclosure filing in August – 2.5 times the national average.
One in every 165 Arizona housing units received a foreclosure filing in August, the nation’s third highest state foreclosure rate, and one in every 194 California housing units received a foreclosure filing in August, the nation’s fourth highest state foreclosure rate.
One in every 220 Idaho housing units received a foreclosure filing in August, the nation’s fifth highest state foreclosure rate. A total of 2,915 Idaho properties received a foreclosure filing in August, an increase of nearly 9 percent from the previous month and an increase of 11 percent from August 2009. Idaho was the only state with a top 5 foreclosure rate to document a year-over-year increase in foreclosure activity.
Other states with foreclosure rates ranking among the top 10 in August were Utah, Georgia, Michigan, Illinois and Hawaii.
- Five states account for more than 50 percent of national total
California alone accounted for 20 percent of the national total in August, with 69,143 properties receiving a foreclosure filing during the month – a 3 percent increase from the previous month but a 25 percent decrease from August 2009.
Florida accounted for nearly 17 percent of the national total, with 56,877 properties receiving a foreclosure filing – a 10 percent increase from the previous month but a 9 percent decrease from August 2009. Florida default notices were down 46 percent from August 2009 but increased 2 percent from the previous month, ending five straight months of month-over-month decreases in Florida default notices.
Michigan, Illinois and Arizona each accounted for about 5 percent of the national total in August, with 17,764 Michigan properties receiving foreclosure filings, 16,808 Illinois properties receiving foreclosure filings, and 16,510 Arizona properties receiving foreclosure filings.
Other states with foreclosure activity totals among the nation’s 10 highest in August were Georgia (16,366), Texas (14,290), Ohio (13,479), Nevada (13,385), and Washington (6,760).
Metro foreclosure hot spots continue downward trend
All 10 metro areas with the nation’s highest foreclosure rates in August posted year-over-year decreases in foreclosure activity for the second month in a row.
The Las Vegas-Paradise, Nev., metro area documented the highest foreclosure rate among metropolitan areas with a population of 200,000 or more, with one in every 73 housing units receiving a foreclosure filing, despite a 25 percent decrease in foreclosure activity from August 2009.
Foreclosure activity in Modesto, Calif., decreased 10 percent from August 2009, but the city still documented the nation’s second highest metro foreclosure rate, with one in every 95 housing units receiving a foreclosure filing in August. Six other California metro areas had foreclosure rates ranking among the top 10: Stockton at No. 3 (one in every 100 housing units receiving a foreclosure filing); Merced at No. 6 (one in 111); Riverside-San Bernardino-Ontario at No. 7 (one in 113); Bakersfield at No. 8 (one in 120); Vallejo-Fairfield at No. 9 (one in 124); and Sacramento-Arden-Arcade-Roseville at No. 10 (one in 125).
Two Florida metro areas registered foreclosure rates among the top 10: Cape Coral-Fort Myers, Fla., at No. 3, with one in every 104 housing units receiving a foreclosure filing; and Miami-Fort Lauderdale-Pompano Beach at No. 5, with one in every 111 housing units receiving a foreclosure filing.
Report Methodology:
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month – broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default – Notice of Default (NOD) and Lis Pendens (LIS); Auction – Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). The report does not count a property again if it receives the same type of foreclosure filing multiple times within the estimated foreclosure timeframe for the state where the property is located.
U.S. Foreclosure Market Data for Top 10 States – July 2010
24 Sep 10 Basement Remodeling With Hanging Ceiling Tiles
When it comes to basement remodeling, the most frequently asked question is: what type of ceilings should I choose? There are several options for ceilings including traditional drywall, tongue and grove board, acoustic ceilings and hanging ceilings (or drop ceilings). All type of ceilings has their advantages and disadvantages. Choose the one suits the purpose of your need is important.
Hanging ceiling is the most commonly used ceiling type for basement. The main reason is because most basement ceilings have existing plumbing and electrical systems. With the drywall or acoustic ceilings, you will have to relocate all the pipes and wires. There is a lot of work involved and could cost a fortune to move the pipes. Hanging ceiling is the best option to cover up all the hanging pipes and wires nicely with a smooth finish while it still provides easy access to get to the wires and pipes. Although, one thing need to keep in mind when choosing hanging ceiling is the height of your basement. Drop ceiling requires a minimum of 4in to slide the ceiling tiles in place. So if you already have a very low basement ceiling then you might want to look into some other options.
Once you have decided to choose drop ceiling, next step is to find the right ceiling material. With some research online, you will notice that Faux Tin Hanging Ceiling Tiles has become extremely popular and widely used in both commercial and residential lotations. There are a number of specialized reasons why they are popular. First off, Faux Tin Drop In Ceiling Tiles are very affordable and yet bring elegant results. Plus, they are sound proofing, water proofing and fire resistant which are perfect for basements. Faux Tin Ceiling Tiles come in such a vast variety of colors, styles and different patterns that you can be sure to find the one you like for your basement.
Installing a drop ceiling is easier than you would imagine. All you need are some tools, a little handyman skill, and a through planning. There are many online resources that provide step-by-step instructions on how to install hanging ceiling tiles. Some are given in a video format that makes it easy to actually see the process as it happens. Here is one video I found on YouTube that show how easy it is to install a hanging ceiling:
YouTube – Faux Tin Drop In Ceiling Tiles Installation
Next time, you can turn the project of the remodeling your basement ceiling a fun DIY project!
22 Sep 10 What else can a zipper do?
What else can a zipper do? You’ll be surprised to find out the amazing things a zipper can do after watching this video. I guarantee it!
20 Sep 10 Where to Buy Real Tin Ceiling Tiles
If you are looking to give your boring white ceiling a whole new elegant look, tin ceiling tiles would be a best choice. The tin ceiling tiles are becoming more and more popular for suspended ceilings (drop tin ceilings). They are used for home renovation as well as kitchen remodeling. The material look especially good on kitchen ceilings, and you make matching back splashes with the same type of tiles to bring your kitchen a modern look. The tin ceiling tiles are also very popular for commercially locations such as restaurants, theatres, retail stores, office buildings and more. Tin tiles are flexible in making custom patterns when it comes to designs. They provide thermal insulation in sound proofing, water proofing and dust proofing. Tin ceiling tiles are also excellent as a fire barrier as they are proven to be excellent in controlling the spread of fire compared to any other building material such as plaster, wood, and drywall.
It is easy to order tin ceiling tiles online nowadays. There are many online tin tiles retail stores, one of the leading tin tile retailers is DecorativeCeilingTiles. They carry tin ceiling tiles in many patterns and colors such as Mill Finish Aluminum, Tin Plated Steel, White, Clear Coated, Polished Brass and Polished Copper to match the rest of your house designs. You can choose costume made ready to install tiles, or you can choose to paint or apply a clear polyurethane coating to the plain tin tiles to add a fresh element to an old stale room. The best part of ordering from DecorativeCeilingTiles store is they will ship the orders the same day or the next business day which is usual for the tin ceiling tiles industry which a waiting period of several weeks is pretty common elsewhere.
DecorativeCeilingTiles store tin tiles can be installed in drop in and nail up. Nailing the tiles to the ceiling is easy and simple. Plywood is the best type of wood to use with nail up ceiling tiles because they are very strong. If you have high ceilings and want to save money on your heating and cooling bills, you might want to consider drop in tin ceiling tiles. With a little planning and use the correct tools, you can install it with no time. Hire a professional contractor would be a good choice if you have extra budget on hand. Either way, it won’t take very long to finish one room. The finish will truly make your ceilings stand out.
Here are some samples of the tin ceiling tiles from DecorativeCeilingTiles store:
