DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

A few short years ago experts were predicting that by 2012 the housing market and foreclosure rates would return to normal. Now that 2012 is almost here, it seems that the predictions were not as accurate as everyone hoped. The down economy is certainly a factor, but this time, there is another culprit in the situation.

The primary reason 2012 is likely to be heavy on foreclosures is due to recent irregularities in the mortgage industry. Specifically, the paperwork was not being handled properly. Low-level employees were rubber stamping documents at an alarming rate.

It would have been impossible for the workers to review the paperwork and get the correct information and signatures in the flash of time they spent on each document. Perhaps they were under pressure to get a certain amount of work done. Maybe they were just poorly trained. For whatever reason, the foreclosure documents were signed thoughtlessly and mistakes were made. Eventually, legal action was taken to halt these foreclosures.

Now the mortgage companies have begun to revamp their processes and clear up these bad practices. They are now meeting with government approval and are getting back in the business of handing out foreclosure notices. By 2012, the big players should be in full swing, working on reclaiming properties from non-paying owners.

The bottleneck could have been avoided with proper training and supervision of all employees at these mortgage lenders companies. Yet, the number of foreclosures overall may not be much different. Instead of coming spaced out evenly over the months, there was a time when the process slowed down, and now there will be a time when the mortgage companies make up for lost time with their foreclosures.

The good news for homeowners is that it gives them a longer period of time to come up with the money to catch up their mortgages. If they have a chance of saving their home at all, they are more likely to do it with this extra time they have been given.

The good news for people who want to buy a home is that there will likely be a glut of REO homes on the market after awhile. Because of this, there will be inexpensive houses for them to choose.

Real estate investors will also see benefits, as they snap up the foreclosed properties, rehab them, and sell them again at a profit. They may have opportunities to buy homes to rent if they prefer. Investors can make the most of this bad situation if they have enough contacts and are good at reselling or renting homes.

It is a good time to raise capital to be ready for the 2012 housing situation. It is the best way for homeowners to keep their homes, potential owners to be ready to buy, and investors to be ready to make the best deals. There is no need to fear what will happen in 2012. Instead, look it as an opportunity, and get your ducks in a row.

Bookmark With

Many people think that they can determine the value of a house on their own. They either take the seller’s word for it that the house is worth what they say it is worth, or they try to research the value of the house online. There are many reasons why this is a bad idea.

First, you don’t want to make a mistake and pay too much for a house. At the same time, if you underestimate the value of a house and make a low offer, it will not be accepted. It is important that you know the true value of a house, and the only way to do that is to have the house appraised by a local real estate appraiser.

Second, the information found on websites is not to be trusted. It is often gathered from out of date sources, and information is usually gathered by people that are not local to the area. This means two things. First, it means that the housing value given online is not accurate for the time frame. Secondly, it means that the housing value provided is not usually based on location at all, which plays a large role in determining the value of a house.

In fact, housing value is calculated based on several factors. The majority of the housing value is determined by the condition of the house. This is not well known in public data, so websites cannot accurately describe or value these homes. In addition, the housing value is based on the values of other homes in the area. This data may be available online, but it is usually outdated. Finally, the housing value is based on what the market will bear, which is also generally outdated on the internet.

Third, it is important to get a local real estate appraiser to appraise your home. This is because a local appraiser will be familiar with the area, making it easier for them to determine the actual value of the house.

Finally, it is important to get a local real estate appraiser to determine the value of a house because this is required by most mortgage lenders. Most lenders will require that you get the house appraised so that you know exactly what the house is worth. This appraisal amount is the highest amount that the mortgage company will lend you for purchasing the property. It is often the determining factor in the sale price of a home as well.

Even if a property has been appraised recently by someone else or the seller, it is important to get your own appraisal done of the home. This way you know that the appraised amount is accurate, and if there are any discrepancies they can be addressed.

Bookmark With

No one will tell you that the economy is not struggling right now. It is in a major downturn and will probably be slow to recover in most areas. Housing prices are still down for most of the country. However, there are a few markets where the housing market is beginning to recover.

1. El Paso, Texas

The Base Realignment and Closure (BRAC) Act of 2005 has been steadily improving the economy of El Paso. The post is expected to more than triple its contributions to the El Paso economy by 2013, and it is well on its way to that goal. The post not only provides military jobs, but also construction jobs for El Paso workers, as well as jobs in almost every field off post. Because of this, El Paso’s economy is doing well, and housing prices continue to rise.

2. Tri-Cities, Washington State

The Tri-Cities is facing a housing shortage, which is causing housing prices to go up. Unlike many other parts of the country, there are more people who want to buy houses than there are houses on the market.

3. Omaha, Nebraska

If you look at the overall figures for Omaha, they still look bad. The averages for the city have stalled at low prices and some areas still seem to be headed down. However, if you go to the right areas of Omaha, you will see prices beginning to lift. Areas like Benson, Hanscom Park, Hillsborough, Clairmont Heights, and Fort Redman are going for more now than they were in the recent past. In Omaha, it is wise to research the area you are looking into, and have a Realtor you can trust.

4. New Orleans, Louisiana

New Orleans is a tricky town when it comes to real estate. Nice new apartment buildings have cut down on the needs in other sectors of the real estate market. Many of the older apartment buildings are scrambling for tenants. The residential housing market is nearly level, but what makes New Orleans special is that there are very few distressed homes on the market – only about 5% compared to about 20% elsewhere. Right now, New Orleans is a good place to find a nice house at a reasonable price. At the same time, the prices are not so low that you are likely to lose everything if you are the seller.

5. Anchorage, Alaska

In Anchorage, housing prices overall have stayed pretty even. While the rest of the country was seeing big drops in their prices, Anchorage houses seemed to hold onto their value well. There have been some gains in certain areas, and the average sales price rose 2% in the city over the last year.

6. Bangor, Maine

The recovery in the Bangor housing market is not so much in the pricing of the houses as it is in the number of sales that are being completed. More people are out shopping for homes now. Younger people are buying houses now, as opposed to baby boomers. They are more optimistic about the long term value of the home and less concerned about making a profit quickly.

The climate is beginning to change in the housing market, at least in pockets here and there. Careful study of the different markets will help you determine the best places to buy and the best times and prices for selling. You do not have to figure it out all on your own; a Realtor or fellow investor will help you succeed.

Bookmark With