Don't Let Time Run Out!

 

The Mortgage Forgiveness Debt Relief Act was passed by Congress in 2007 in an attempt to provide some relief for the millions of homeowners who found themselves owing more on their mortgage than the property was worth as a result of the collapse of the housing and finance industries. This report was created to give homeowners the most accurate information about the Mortgage Forgiveness Debt Relief Act, which has helped many distressed homeowners find options that were previously unavailable.

 The act, which was always intended to be a temporary solution, is now set to expire at the end of 2013.  Time is running out. But there is still time to change your financial direction and avoid foreclosure. Reading this report will teach you what the Mortgage Forgiveness Debt Relief Act is and how it can help save you money.

Time is running out. But there is still a chance to change your financial direction and avoid foreclosure.

 Rob Sales
Prudential Southeast Coastal Properties
Associate Broker, CDPE Advance,
DPP, REO Specialist, CIAS
912-655-7674

Some Results Indicate Investors are NOT the Dominant Force 2013

A recent trend report from HousingPulse indicates that investors are NOT the driving force in the current housing surge.  Results from the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey actually show first-time homebuyers and current homeowners are leading the market in 2013.

This presence of non-investor homebuyers is strengthening the market for non-distressed properties.  The spring/summer season of 2013 should prove to be remarkably strong says the report.

HousingPulse's data indicates that the current homebuyers carry a 42.2% market share this past March.  This is down from the fall numbers, but overall up in the year-over-year statistics.

The media continues to gives credit to the investors for driving the recent heightened activity; however, their share according to the report indicates only 21.8% market share in March 2013.  While looking at non-distressed property trends, investor shares are even less at 13.3% for the same time frame.  Current homebuyers had 50% market share and first-time homebuyers 36.8%.

Looking at DISTRESSED property trends for the same report, HousingPulse indicates the share of home purchases fell to 35.6% in March but peaked at 36.2% in March.

*The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey is based on a national survey of about 2000 real estate agents each month and provides up-to-date intelligence on home sales and mortgage usage patterns throughout the country.

Much of the country is seeing a lack of inventory in the non-distressed property segment, but with a strong sale market.  Additional factors contributing to the strength of the market, is the average time-on-market for non-distressed properties.  Numbers fell dramatically to 10.9 weeks on average, recorded the lowest since 2009 by HousingPulse.


Source: HousingPulse Update April 2013

More Housing Investment Trend News

From CNBC, Diana Olick reports latest real estate investment trends.  I am a Certified Investor Agent Specialist (CIAS)  and can provide you with the tools and information whether you are looking to avoid foreclosure, or investing in the housing market.  Foreclosure sales are on the rise and investors are waiting to pounce on the opportunity.  Contact me for more information.

 

New Housing Barons Widen Their Sights and Bets

 Published: Thursday, 2 May 2013 | 10:16 AM ET

By: Diana Olick CNBC Real Estate Reporter

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Hedge Funds As Landlords

Thursday, 2 May 2013 | 11:25 AM ET

Hedge fund managers are shifting strategies to make more money on foreclosures, reports CNBC's Diana Olick.

As home prices rise, there are fewer bargains in single family homes, but not fewer investors. Their ranks and property portfolios continue to grow. Last month Five Ten Capital, a Piedmont, California-based asset manager, inked a one hundred million dollar deal with Deutsche Bank to open a new fund to buy and manage single family rental homes, expanding Five Ten's range to Texas and Missouri.
"Obviously, home prices are up, so did you miss an opportunity? Yes, you'd have been better off buying a year ago than today, but we think for the most part we are in the third inning of this housing recovery," said Rob Bloemker, Five Ten's CEO.

Unlike the "flippers" of the last decade, today's investors in single family homes have a longer-term strategy. They buy largely with cash and seem intent on growing their portfolios, rather than recycling them. While some credit these bulk buyers with saving the housing market, they seem uneasy with that characterization.
(Read More: Map: Tracking the US Real Estate Recovery)
"I think investor activity has accelerated the recovery, but I don't think investor activity is responsible for the recovery," said Rick Sharga of Carrington Mortgage Holdings, a Connecticut-based group that invests in distressed homes and distressed mortgages. "If all 10 billion dollars of investor-announced funding had been spent last year, what percentage of the $1.7 trillion in mortgages written would that have accounted for? It's a rounding error really."
But these investors did help to clean up much of the distress created by the housing crash, especially in the hardest-hit markets, like Phoenix, Las Vegas and parts of California. Investors still accounted for 53 percent of home purchases in Las Vegas in March, according to DataQuick. Multi-home buyers bought 647 homes in the Las Vegas area in March, which amounts to 14.4 percent of all homes sold—a 20 percent increase from March of 2012.
There had been concern that as home prices rose, these investors would dump their homes back onto the market, and reverse the recovery. That is not the strategy, at least not yet.
"Investors aren't going to dump a lot of properties into a market and run the risk of losing money or devaluating the rest of their portfolios," noted Sharga.
They may not be selling, but some are changing their strategies, as they search for higher yields.
"We're not buying a lot [of homes] right now. We think the market is a little bit too frothy. We're very, very particular about our model and what we will buy," Sharga said. "We've been very active in the non-performing loan market. We'll look at other trades that don't have same kind of high-volume competition that artificially drives up some of those prices."

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Los Angeles-based Colony Capital, which boasts approximately ten thousand single-family rental homes in its portfolio, had centered its investments largely in the Southwest and West, but is now shifting to other markets.
(Read More: US Pending Home Sales Tick Upward in March)
"In terms of our mix, less is going to Arizona and California today," said Justin Chang a principal at Colony. "Our mix is increasing on east coast, Georgia, Florida, we're active in Texas. I think over time some of the early markets will become a smaller part of our overall portfolio."
Some investors are also starting to look at new construction, as home builders start to ramp up production again. The key is to find new product that is cheaper than replacement costs, which still is not that easy. So far investment has mostly gone only as far as distressed new homes, but as prices rise, that may change.
"On home building, there's a lot of chatter about that. We are in some conversations with builders," explained Chang, who admits the economics have not been compelling yet. "Over time you'll see more and more of these transactions, and we may do one as well."
Another potential strategy going forward is a consolidation, as investors turn away from distressed properties and focus on so-called "Mom and Pop" landlords, who may buy just one or two properties. There are an estimated 14 million single family rental homes owned by this cohort.
"If you think about all of the major institutions maybe owning 70,000 total homes compared to the market size of 14 million homes, the long term potential is enormous. Institutions are literally a fly on an elephant," said Aaron Edelheit, CEO of The American Home, an Atlanta-based company that owns and manages about 2,500 homes. "We may look back and realize that the REO [real estate owned] to rental space was only the foundation for an exponentially larger industry with institutions owning hundreds of thousands, if not millions, of homes."
(Read More: Next Boom? 'Spec' Homes Are Back)
There are 7.2 million more renters today than there were in 2004, and just 400,000 more homeowners, according to the U.S. Census.
Despite the recovery in home sales, the homeownership rate continues to fall, from an all-time high of 69.2 percent to 65 percent in the first quarter of 2013. As home prices rise and the employment picture improves, more people will come back to home ownership, and some of the new rental homes will inevitably be sold, but certainly not all of them.
"If you buy homes in areas with below-median income, I think the mortgage market is going to have harder time providing credit to these people, and it's going to take longer for that to recover," said Bloemker. "We think that these homes are more likely to be long term rentals, and those are likely to end up in the hands of institutional investors."
—By CNBC's Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC—CNBC's Stephanie Dhue contributed to this story
Questions? Comments? RealtyCheck@cnbc.com

Latest Real Estate Trend: Hedge Funds Buying Forecloures

Check out these headlines from around the real estate world. 

 

"The Next Big Thing on Wall Street"

"The business of buying foreclosed homes, renovating and renting them out is morphing from a largely mom-and-pop business into the next big thing on Wall Street.
Blackstone Group LP has become the biggest U.S. investor in single-family rental homes by spending more than $1 billion since the start of 2012 to acquire more than 6,500 foreclosed homes ... fresh evidence that the purchase of foreclosed homes, which began as a mom-and-pop pursuit, is gaining legitimacy among the biggest private-equity firms."

"A Land Grab Unlike Anything We’ve Ever Seen"

"The Blackstone shopping spree, and those of half a dozen other big investment firms and hedge funds, could radically change the local home landscape, as big-money brokers compete with first-time buyers and mom-and-pop landlords over homes in tight supply.
'It's a land grab unlike anything we've ever seen," said Peter Murphy, CEO of Home Encounter, the largest manager of rental homes in Tampa Bay. "You're going to drive through parts of town and all of it is going to be institutionally owned.'"

"Wall Street’s Hottest Investment Idea:
Single Family Homes"

"Large real estate investment trusts and private equity funds have generally focused on commercial real estate. That appears to be changing, and fast. Wall Street's hottest investment idea is now single family homes."

"Faster Than Anyone Imagined"

"Legendary investor Warren Buffett seemed to fire a starter pistol last February when he said he would buy 'a couple hundred thousand' homes nationwide. It's hard now to find a private equity firm on the planet that doesn't have a strategy in this space. The market is growing faster than anyone imagined."

"Investors Raise $8 Billion for Acquisitions"

"Larger Wall Street investors rushing into the market have raised between $6 billion and $8 billion, with the intent to acquire between 40,000 and 80,000 foreclosed homes in the months ahead."