First Fidelity Homes expands its offering of Bank REO properties to the NE

July 30, 2010 by · Leave a Comment
Filed under: REO News 

PR Web – Primarily focused on buying REO properties in the Midwest and Southeastern U.S., First Fidelity acquires its first REO property in Maine and adds to the assets it has in other Northeastern states such as New Jersey and Pennsylvania. As foreclosures rise, banks have an urgent need to offload these properties and offer them to investors at a considerable discount. While most investors focus on flipping, First Fidelity Homes offers a socially responsible solution.

Flipping homes can be detrimental to the physical, social, and economic well-being of a community since homes are left vacant during the process. Instead of flipping the REO properties it acquires from banks, First Fidelity offers these homes under selling financing to homeowners and structures the monthly payments to be significantly lower than market rents in the area. As Farouk Sheikh, CEO of First Fidelity Homes added, “Making sure the properties are cheaper to own than to rent is what makes this a win for the homeowner.”

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Bulk REO investing is a great investment in this real estate recession

July 29, 2010 by · Leave a Comment
Filed under: REO News 

Bulk REO investing is a saving grace of many real estate inventors desperate to climb out of the recession hole. And with a good reason. Bulk REO is a sure way to bring in millions for pennies. All you need is nerves of steel, good guts, solid strategy and great love for what we all hold dear- money.

Love for money is a given if you take time to read this article. So are the guts if your bank account is on a ready. We will supply the strategy and nerves of steel come with practice so don’t worry about that for now.

After all, bulk REO investing all it is not much different than paying poker. With cards open. Oh yes! In Bulk REO all cards are on the table and your bank account better be on a ready. Rules are simple enough. Keep your cool, don’t expect miracles, don’t bet too high, be good for your money and for god sakes do not try to cheat- you will be caught. Play the right card at the right time and you will clean the table.

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HUD gives non-profits and governments 10% discount on REO properties

July 13, 2010 by · Leave a Comment
Filed under: REO News 

Housing Wire – The Department of Housing and Urban and Development (HUD) will give state and local governments and nonprofits participating in the Neighborhood Stabilization Program (NSP) preference to buy its REO at 10% below the appraised value.

The new initiative will also give these buyers a 14-day first-look period to consider buying the property ahead of investors. HUD secretary Shaun Donovan announced the new initiative at the National Council of La Raza annual conference in San Antonio, Texas.

In May, HUD announced a third round of NSP grants in addition to the $6bn awarded since September 2008. Grantees, which include nonprofits, state and local governments, use the money to buy and rehabilitate vacant homes in an effort to grow local economies and create jobs. The money is also put toward down payment and closing-cost assistance to low- and middle-income homebuyers.


U.S. mortgage delinquency rate increases to 9.2% in May

July 8, 2010 by · Leave a Comment
Filed under: REO News 

Home mortgage delinquency rates increasing 2.3% from April and a whopping 7.9% from last year is nothing to dismiss.  With unemployment benefits expiring and the temporary jobs from the census going away, we should expect this to increase from here as well.

With these trends continuing, there is a growing possibility that we will see a double-dip recession starting this fall.  Politicians are aware of this and growing talk of a second stimulus package or a jobs bill to try and prevent this.  This will be futile because we will just be creating more debt and the amount of GDP per dollar continues to decline.

I see the recession as a benefit in disguise if we let it takes its course and lets companies and real estate fail so we can get prices to a point where the average wages can support not just the wealthy portion of the population.  Like I have said, we need to measure the wealth of our society from the base not the peak.

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Foreclosed homes sell at 27% discount in U.S. as REO supply increases

July 2, 2010 by · 1 Comment
Filed under: REO News 

Almost a 30% discount is nothing to shake a stick at when purchasing a home from foreclosure.   Prices are still high for where the economy and market is at in 2010.   With unemployment guaranteed to rise higher and the market selling off because of the debt crisis and uncertainty, we should expect more foreclosures in the coming years.

Home prices will continue to fall and will most likely stabilize near the pre-bubble prices of 2002.  Too many jobs have been sent over seas and our industrial section has been reduced to a point where the broad portion of the real estate market is priced too high for most people who would be looking to own a home.  We should look at this continuing correction as a positive move for the future.   The quicker we let the market correct, the faster a durable recovery in the U.S. real estate market will take place.

We must remember that over the life of a 30 year mortgage, you are paying between 2.5-3 times the price of the home through interest charges to the bank.   A dollar saved on price will save you an additional $1-2 dollars in interest over the life of the loan and that last thing we need to do is pay more than we have too for borrowing money.

Bloomberg – Homes in the foreclosure process sold at an average 27 percent discount in the first quarter as almost a third of all U.S. transactions involved properties in some stage of mortgage distress, according to RealtyTrac Inc.

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