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."

Smart Short Sales is Expanding!

That's right, we're expanding! 

 

North Carolina holds a special place in my heart...there's no place like home!  I was born and raised in Western Carolina, specifically Brevard.  I attended Western Carolina University and played football for the Catamounts.   I became a school teacher right out of college, married my high school sweetheart and acquired my first real estate license in 1972.  Life has taken me all over our great country--even all the way to Alaska!

For the last several decades, I have resided in Georgia, but I have remained attached to my roots in North Carolina as well.  The housing crisis we are experiencing in this country is widespread.  I feel I offer invaluable resources, including my own personal experience, in helping people find a dignified solution to their own housing crisis.

I am proud to continue to represent Prudential Real Estate from the Prudential Great Smokys Realty group in Sylva, North Carolina as a licensed broker. I will continue working in Savannah, Georgia as well! The housing crisis is far from over, and statistics tell us that 2013 will be a big year for homes entering foreclosure status. As an Advanced Certified Distressed Property Expert, I am qualified to help you or someone you know avoid foreclosure. The latest reports from RealtyTrac show us that Bryson City is well below the national average for foreclosure rates, but since the end of 2012 has seen significant increase in foreclosure filings.

Please don't hesistate to contact me for more information on how I can help you find a dignified solution!

Rob Sales
Smart Short Sales-Providing Dignified Solutions
CDPE Advance, DPP, REO Specialist, CIAS
(912) 655-7674

Broker, Prudential Great Smokys Realty (Sylva, North Carolina)

Associate Broker, Prudential Southeast Coastal Properties (Savannah, Georgia)

5 Most Dangerous Mortgage Relief Scams

Since the beginning of the housing crisis in 2008, millions of homeowners have found themselves owing more on their mortgage than the home is worth. For homeowners in this circumstance, there is a lot to worry about. They not only have to worry about losing their homes, but they are also susceptible to fraud.

Unfortunately, the mortgage crisis has opened the door for fraudsters to take advantage of homeowners in distress. This is more common than most people realize because much of the fraud is well disguised and can seem legitimate.

For people in this situation, the best way to avoid the most common types of Mortgage Relief Fraud is by consulting professionals who are specifically trained to deal with distressed homeowners. If you or some­one you know is in this situation, don’t be the next victim.

From Interthinx Mortgage Fraud Report from Q4 2012:

The top 5 states for mortgage fraud in 2012 were:

NEVADA

ARIZONA

FLORIDA

NEW JERSEY

CALIFORNIA

• The state with the lowest amount of mortgage fraud in 2012 was Kansas
• The metropolitan area with the most mortgage fraud in 2012 was Cape Coral-Fort Myers, FL.
• California experienced the greatest decline in mortgage fraud reports in 2012v.
• All 50 states reported some incident of mortgage fraud in 2012

There are 5 common ways that con artists and scammers will try to take advantage of you.

Learn about these so that you will know what to watch out for:

 

#1 CHARGING YOU UPFRONT

One of the most important things that distressed homeowners need to remember is that they should never be asked to pay anything up front. Period. In fact, the only people who should ever ask you to pay any money at all is the lender that owns your mortgage or servicer who collects for the lender. Even a real estate agent will only make money off the commission that comes after a sale is com- plete. If someone asks you to pay them money to help you out of your situation, be very suspicious.

#2  GUARANTEES

No one can guarantee to save you from your mortgage troubles. While there are more solutions today than ever before, avoiding foreclosure is still a difficult process. A qualified agent can give you advice and help you through your options, but if someone guarantees you success, chances are they are trying to take advantage of you.

#3 CHARITY OR GOVERNMENT AFFILIATION

While there are housing relief charities that exist, a common fraud tactic is for the con artist to pre- sent themselves as a non-profit or a representative of the government. They will also use seals and government names to make them seem more legitimate. Be leery of anyone approaches you like this and speak to your lender before you take any action.

 #4 ASKING YOU TO TRANSFER YOUR DEED

Under no circumstances should you transfer the deed to your property to anyone but the bank that owns your mortgage. Some people will ask you to do this under the promise that they will save the property. The problem is that once you sign the deed over, you forfeit all legal rights to the property.

 
#5 ADVISING YOU TO STOP CONTACTING YOUR LENDER

In any circumstance, your lender will ultimately make the decision as to what housing relief options you will be eligible for. When scam artists ask you to stop contacting your lender, they are doing so specifically so that you will be uninformed and forced to rely on them. Never cut off contact with your lender. Not only will you be uninformed, it will actually make it more difficult to come up with any solution at all.

 

It can seem daunting, but despite the fact that there are people who may seek to take advantage of homeowners in this circumstance, the situation isn’t hopeless! The fact is that there have never been more options for distressed homeowners than there are today. The banks and the government have been aggressive in creating alternatives for homeowners in danger of losing their homes.

 

One of the most common options is a short sale. This is when the bank agrees to allow the home to be sold for less than the amount owed on the mortgage. Banks have become increasingly willing to take this option because the amount of money the home sells for is typically greater in a short sale than at a foreclosure auction.

 

For homeowners, a short sale is often the best solu­tion because it can be much better for their credit than a foreclosure and many times they can walk away from the home without the financial burdens that will make it difficult for them to move on.

 

As a Certified Distressed Property Expert, or CDPE, I have been specifically trained to help homeowners learn what the best solution for them is, and I can also help them avoid the common scams above. It is my mission to help as many homeowners as possible.

Rob Sales

Smart Short Sales-Providing Dignified Solutions Prudential Southeast Coastal Properties
Associate Broker, CDPE Advance,
DPP, REO Specialist, CIAS
912-655-7674

 

 

Educate Yourself So YOU Don't Become a Victim!

For distressed homeowners in danger of losing their home, there are already a lot of problems. The last thing a homeowner in this situation needs is to fall victim to a scam. Unfortunately, people in this situation are often the most vulnerable to a kind of fraud called “mortgage relief fraud.”

 

Fraudsters will prey on people who are looking for a loan modification, short sale or other foreclosure alternative because these are the most common options for distressed homeowners.

 

There have been legal cases brought against many, but scammers always try to stay a step ahead of law enforcement. Even though many of them have been caught, there are still people who prey on vulnerable homeowners with too-good-to-be-true promises.

 

In fact, in a recent example highlighted in the New York Times, con artists told homeowners that they represented the bank and that the homeowners were already approved for a loan modification. Only after the homeowners paid thousands of dollars up front did the truth come to light.

 

Educate yourself so you don't fall victim!

 

 

Georgia's Foreclosure Rollercoaster Not Over Yet

Georgia foreclosures have been on a rollercoaster ride over the past two years says Daren Blomquist, Realty Trac Vice President. Recently he presented his analysis supporting this statement at the 2013 Inaugural Meeting of the Georgia Association of Realtors.

He was approached by two realtors from Walton County, which has the highest foreclosure rate in the state. Both told him his analysis was exactly what they had been experiencing.

Below is his presentation outlining Georgia's situation.

Georgia Foreclosure Situation & Outlook from RealtyTrac

Georgia is among the non-judicial foreclosure states — most of which have been less susceptible to being tossed to and fro by the storm waves generated by the robo-signing settlement, however, it has most definitley seen it's "ebbs and flows" directly correlated with the major highlights of the robo-signing settlement case.

Blomquist's Slide 7 above most clearly demonstrates this. After trending higher through most of 2010 and during early months of 2011, Georgia foreclosure activity decreased on an annual basis for 13 straight months starting in March 2011. This trend began just a few months after the robo-signing controversy came to light in October 2011 and after the 49 state attorneys general investigation into foreclosure practices by the nation’s five leading lenders had gotten into full swing.

In April 2012 the settlement was finalized and Georgia foreclosure spiked for three straight months in April, May and June 2012. Starting in July 2012 there have now been six straight months of annual decreases in Georgia foreclosures, which would correlate direclty with a Georgia Court of Appeals ruling in July 2012 that held lenders to a higher standard in providing information about the entity that actually owns the mortgage to homeowners on foreclosure notices.

Blomquist believes this rollercoaster ride over the past two years in Georgia isn't over yet. He states that it actually foreshadows more bumps in the state’s foreclosure trends before its housing market can return to smooth sailing.

The three-month surge in foreclosure notices in mid-2012 — not to mention the 32 percent of Georgia homeowners who are seriously underwater (see slide 16) — indicates there are still many homeowners in danger of foreclosure in the state.

2013 is expected to be an important year in which these idle foreclosures will push through the pipeline, along with the huge foreclosure inventory that already exists in the state (see slide 11) ensures that the lingering foreclosure problem will continue burden Georgia home prices. Georgia's saturated market provides inventory for Realtors to sell and buyers and investors to buy.


Source: David Blomquist, RealtyTrac.com February 14, 2013

Savannah Foreclosure Statistics for December 2012

RealtyTrac, a leading marketplace for foreclosures properties including plentiful data for trending statistics used by real estate professionals and economists, has released figures for December 2012.

The latest trends indicate that 1 in 810 housing units in the U.S. received a foreclosure filing during December 2012. The chart below shows National statistics.





In the Savannah area alone, 1 in 1,718 homes received a foreclosure filing during the last month of 2012. Fifty-six new foreclosures were filed in the following zip codes: 31419/31410/31406/31405/31407/31401/31408. Chatham County reports 82 foreclosures in November 2012, and 73 in December.

Broken down by Savannah zip codes, the below chart shows the number of foreclosures in December 2012:

The average sales price of homes in Savannah area December 2012, accoridng to RealtyTrac,is $234,348.00 and the average price of sold foreclosures was about $150,000 in November 2012, and is projected to remain so for December 2012 as sales decline typically during the holiday season.

CNN Money's Lists Hardest Hit Foreclosure Neighborhoods in America

From CNN Money.com Published January 17, 2013

The foreclosure crisis is slowly easing, but in some of the nation's neighborhoods it feels like it has just begun.

Total foreclosure filings, including default notices, scheduled auctions and bank repossessions, were down 3% in 2012 compared with a year earlier, according to RealtyTrac's year-end foreclosure report.

100 hardest hit zip codes

Does your town make the list? Check our map to find out. 

 

Yet while overall filings have plunged some 36% since the peak foreclosure year of 2010, some states are now seeing their foreclosure rates climb.
                                        
Florida, Illinois and Georgia were home to the largest number of zip codes with the highest foreclosure rates of 2012, displacing former title holders California, Nevada and Arizona, which accounted for 81 of the top 100 zip codes in 2011.
                                        
Much of the shift has to do with the way these states handle foreclosures, said Daren Blomquist, a spokesman for RealtyTrac. In judicial states like Florida and Illinois, foreclosures are processed through the courts and take longer to go through the system than in non-judicial states.
                                        
Hardest hit neighborhoods: Does your town make the list?

Last year, the average foreclosure in Florida took 853 days, according to RealtyTrac. Meanwhile, in a non-judicial state like California, it took less than half that time.
                                        
Unclogging the foreclosure pipeline more quickly has meant an earlier recovery for housing markets in non-judicial states, with rising prices, more stable sales and fewer new foreclosures, he said.
                                         
Meanwhile, states that delayed the process are just now feeling the pain. Foreclosure activity climbed in 25 states last year, 20 of which were judicial states.
                                        
"It's ripping the Band-Aid off versus pulling it off slowly," said Blomquist.
Related: Logjam in foreclosures breaking up

The hardest hit neighborhoods:
In Lawrenceville, Ga. (zip code 30045), nearly 13% of homes -- 1 out of every 8 -- received some kind of foreclosure notice last year making it the hardest hit zip code in the country. This suburb of Atlanta has seen home prices plunge by more than 40% from the early 2006 peak, according to real estate site Zillow.
                                        
A high percentage of homeowners in Lawrenceville bought near the top of the market, when home prices topped out at a median of about $193,000. When prices plunged during the recession, many of those homeowners owed more than their homes were worth and many wound up in default.
                                        
A similar dynamic played out in the second hardest hit zip code, 33032 in Homestead, Fla., south of Miami. Its foreclosure rate hit nearly 10% last year, up from 5.4% in 2011. The bust depressed prices by nearly two-thirds in the area, according to Zillow. Three other nearby zip codes in Homestead and Miami finished in the top 10, Florida had 33 zip codes among the 100 hardest hit, more than any other state.
               
Illinois was home to three of the top 10 hardest hit neighborhoods and 24 of the top 100, led by Carpentersville's 60110, which came in third with a foreclosure rate of nearly 9%. This small city west of Chicago suffered economically as heavy industry left town.
                                        
Meanwhile, some of the last year's biggest placeholders had less of a presence in the top 100 in 2012. California had 16, down from 38 in 2011, and Arizona claimed four, down from 15.           

Published January 17, 2013 from CNNMoney.com