All Street Real Estate Blog

Mortgage fraud continues to plaque the real estate industry. Charges have been recently brought to a Hamilton County, Indiana individual. The individual was a principal in about 12 different entities that performed foreclosure rescue. The information below recently published in Realtor Mag outlines how the scam works and what to look for. I want to mention that to my knowledge no convictions in the above mentioned case have been rendered and not all foreclosure rescue companies scams. There are good licensed Realtors helping people with foreclosure options and alternatives.

The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.

Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.

The senate has approved a plan to extend the tax credit closing date from June 30th to September 30th. If passed by the house it will go to the President for his signature.

The Indianapolis Housing Agency board unanimously approved cutting payments to landlords by 10% and eliminating any inflationary rent increases to help cover a 3.2 million budget shortfall in federal housing voucher funds. Agency Executive Director Rufus “Bud” Myers is quoted in this morning’s Indianapolis Star “The goal is to maintain voucher holders.” I will be sending Mr. Meyers a letter later today encouraging him and the board to rethink this strategy and remind him that maintaining the current number of voucher holders will be of no value if they have no units to live in. I don’t know about anyone else, but a 10% revenue hit is huge to my cash flow. If this is approved by the U.S. Department of Housing and Urban Development I will no longer be able to accept Section 8 tenants.

Commercial Real Estate Vacancies
to Peak Late This Year or in Early 2011

Vacancy rates continue to rise in most commercial sectors and are not expected to level out in most markets until the end of this year or early 2011. This according to a news release issued late last week by the National Association of Realtors® (NAR).

Lawrence Yun, NAR chief economist, noted in the release that there is one bright spot in commercial real estate.  “The multifamily sector can expect increased demand as the economy creates jobs and new households are formed, likely in the second half of the year,” he said.  “However, the office, warehouse and retail sectors continue to experience the delayed effects of the recession.  These sectors should see gradual improvement after jobs pick up and create additional demand for space, meaning a broader improvement in commercial real estate is likely in 2011.”

The financial turmoil in Europe is providing an unexpected windfall for American home buyers, as international money seeking a safe haven is flowing into the U.S., pushing domestic mortgage rates to the lowest levels of the year and back near 50-year lows.

Veiw entire article at: http://online.wsj.com/article/SB10001424052748704904604575262713807080890.html?mod=djemRealEstate_h

Buyers should first check there credit score , gather all there fininacial information and meet with a mortgage originator to obtain a preapproval wchich means the lender is willing to lend up to a specific amount for a home. Find a good real estate agent who knows the area and te business. Most effectively done through referral from someone you know.

Existing home sales in January were down 1.4% statewide and 18.4% in the Indianapolis metro area from one year ago. Nationally existing home sales were up 11.5% for the same period. My take is the weather hampered central Indiana sales and I suspect February numbers will be lower as well. What is encouraging is the statewide median sales price is up 12.4% over a last January indicating home values are recovering.

This is a comparison from the 12 month period ending in 2008 vs. 2009. MIBOR consists of a 13 county area. These counties are Boone, Brown, Decatur, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Montgomery, Morgan, Putnam, Shelby.

Units Sold

This also includes all of the counties in MIBOR. As you look at the individual counties the numbers differ quite a bit. In sold units, Shelby is -23% , while Johnson is 4%.

Hamilton: 12 Month Period ending 2008 (Nov.) 4,713 vs 2009 of 4,622. Diff. of -2%

Marion: 12 Month Period ending 2008 (Nov.) 11,841 vs. 2009 of 11,351. Diff of -4%

Madison: 12 Month Period ending 2008 (Nov.) 1,359 vs 2009 of 1,279. Diff. of -6%

Don’t let the negative numbers fool you. The market is consistently getting better month after month. A lot of the movement in the market, especially under $200,000 is due to the first time home buyers credit and foreclosures. The tax credit is due to expire on June 30^th 2010 you must have an accepted offer by April 30^th of 2010.

This is a comparison from the 12 month period ending in 2008 vs. 2009. MIBOR consists of a 13 county area. These counties are Boone, Brown, Decatur, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Montgomery, Morgan, Putnam, Shelby.

Units Sold

This also includes all of the counties in MIBOR. As you look at the individual counties the numbers differ quite a bit. In sold units, Shelby is -25% , while Johnson is -4%.

Hamilton: 12 Month Period ending 2008 (Oct.) 4,819 vs 2009 of 4,468. Diff. of -7%

Marion: 12 Month Period ending 2008 (Oct.) 11,994 vs. 2009 of 11,100. Diff of -7%

Madison: 12 Month Period ending 2008 (Oct.) 1,412 vs 2009 of 1,259. Diff. of -14%

Don’t let the negative numbers fool you. The market is consistently getting better month after month. A lot of the movement in the market, especially under $200,000 is due to the first time home buyers credit and foreclosures. The tax credit is due to expire on June 30^th 2010 you must have an accepted offer by April 30^th of 2010.