Posts Tagged ‘tracy foreclosures’

More Homeowners Paying Credit Card Bills Over Mortgage

Wednesday, April 6th, 2011

According to a new report by the credit management company TransUnion, more U.S. borrowers are choosing to pay their credit card bills over making a mortgage payment; no doubt due in part to the recession.

Prior to the economic downturn, Americans worked hard to stay current on their mortgages before they paid their other large bills like credit cards and student loans. But now that pattern seems to be changing.

In the last quarter of 2010, 7.24% of U.S. homeowners were delinquent on their mortgages, but current on their credit cards. While Sean Reardon, the author of the study and a consultant for TransUnion, notes there was a decrease of 7.40% since the third quarter, the number of homeowners behind on their mortgage payments remains “72% higher than it was at the beginning of the Great Recession.”

The TransUnion report compared three groups: homeowners 30-plus days delinquent on their mortgage but current on credit cards; those current on their mortgage but 30-plus days behind on credit cards; and those who are 30-plus days delinquent on both their credit cards and their mortgage.

While conducting the report Sean Reardon found there were two primary drivers in making the U.S. “less cash dependent and more credit dependent.” He found Americans first adjusted their “payment hierarchy” from mortgages to credit cards just months after the financial collapse in 2007, and that high unemployment and a suffering housing market left many owing more on their homes than they were worth.

By the final quarter of 2010, 23% of all U.S. homeowners owed more than their homes were worth, according to business information provider CoreLogic.

The inability for struggling Americans to make large mortgage payments, combined with the credit card industry’s decision to tighten lines of credit, has put pressure on consumers to stay current with their credit. It didn’t take long for people to realize missed mortgage payments may have dire consequences down the road, but good credit now is the road to keeping food on the table.

In the chart below, the red curve denotes delinquent mortgages, current credit cards. The green curve denotes current mortgages, delinquent credit cards. The purple curve denotes delinquency on both:

graph mortgage vs credit

[source]

Bay Area Housing Market Still Weak – Short Sales Account For Half Of Transactions

Thursday, March 17th, 2011

MDA DataQuick reported Thursday that Silicon Valley’s housing market continued to be weak in February, with resale home transactions in Santa Clara County practically flat; the median home price is at $495,000, down 3% from February of last year.

The report is reflective of sales trends throughout the Bay Area, where sales dropped 0.4% from last year, and the median home price dropped 4.1% to $355,000.

Distress sales — foreclosures and “short sales” for less than the value of the mortgage on a home — were just over half of transactions in the Bay Area, DataQuick reported. Cash buyers accounted for 30.9 percent of Bay Area home sold, the highest level since DataQuick began keeping track of the market in 1988.

Please Note: DataQuick’s report is based on transactions reported to county governments.

DataQuick’s president, John Walsh, warns the public not to rely on the report as an indicator of what the market’s strength will be for the rest of the year. If the economy continues to improve, Walsh says, the market could bounce back in the spring and summer.

John Walsh notes, however, that “sales over the past two months certainly underscore the market’s reliance on investor and cash purchases at a time many potential buyers hesitated to act.”

ORIGINAL ARTICLE

bay area housing market february 2011

Title Insurance and You: Do You Need to Pay for It?

Monday, March 14th, 2011

Many people who don’t completely understand the what title insurance actually is might question this item when the closing costs are added up. It is, however, a very important thing to have. As the name implies, the function of this kind of insurance is to ensure the integrity of the title to your home at the time its title legally passes to you as the buyer. Title insurance is designed to protect you in case there are problems or unknown legal complications tied to the title on the property which were caused by the actions or failures of previous owners.

In other words, title insurance ensures that that your ownership rights to your home are protected from any kind of liability arising time before you bought. This is an insurance policy which insures the “before” period of home ownership, unlike ordinary homeowner policies, which cover the “after” period.

After you complete the purchase of your home, if it were to come to light that there had been a tax or mechanic’s lien on it, title insurance would keep you from a disastrous financial loss from the circumstance.

It is all too common that someone will purchase a property and then discover that it has an encumbrance against it because of something that happened with a previous owner. You surely do not want to find yourself coping with such a situation without having the security of a good title insurance policy. Uninsured, you would have been exposed to a financial liability, which could amount to anything from a petty annoyance up to a big debt leading to loss of the property.

Title insurance covers homeowners against any disputes that come up from situations related to the title of your home before you purchased it. For example, if you buy a home that was sold to you in as part of a scam or swindle with illegal documents, the title insurance policy would cover you against any loss you might incur as a result. If any disputes were to arise regarding the chain of ownership of the property you have just bought, your title insurance policy would give you the coverage you need in that situation.

What Title Insurance Is Not

It is not protection against things you might do to jeopardize your ownership. It is strictly limited to ensuring that you have a clear title to the home at the time that title transfers. If you fail to pay the property taxes and a lien is filed, you will still have to take settle the debt yourself. Title insurance will not give you any protection that.

As one last reminder, title insurance does not cover anything related to the belongings or the structure of the property. You also need to take positive steps to insure your home against perils such as fire, theft, and natural disasters with a good homeowners policy. When you purchase your home, both title insurance and homeowners insurance provide different kinds of coverage, and you most certainly must have both of them.

If you have a need to look into Broomfield CO real estate for sale, it’s easy to Search for Colorado Homes at AutomatedHomefinder.com.

who pays for title insurance

U.S. Foreclosure Filings Down Slightly In First Half Of 2010

Monday, July 19th, 2010

According to a new report by RealtyTrac, property foreclosures filings in the United States dropped 5% during the first half of 2010; this is due to lenders continuing to delay foreclosure proceedings so they can focus on short sales and load modification efforts.

The same report states that over the past six months, more than 1.6 million homes have received at least one filing, such as default notices, auction sale notices, and bank repossessions. So while foreclosures filings were down slightly during the first half of the year, there is still an abundant amount.

There is growing concern that a backlog of homes in line for foreclosure could build up, which may result in a double dip in the market when said homes are dumped at some future date.

The chief executive of RealtyTrac, James Saccacio, contends that at the current pace, more than 3 million properties will receive foreclosure filings by the end of this year; leaving lenders to repossess more than 1 million of them.

“The roller coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market,” Saccacio said.

Saccacio continued, “The second quarter was a tale of two trends. The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sale and loan modification initiatives. Meanwhile the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009.”

For all the numbers and figures of the RealtyTrac report, visit PropertyWire.com: Property foreclosure filings in US down slightly in the first half of 2010.

U.S. Foreclosure Filings Down Slightly In First Half Of 2010
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4th Of July Fun! Uncle Sam Hat Treat Holders!

Friday, July 2nd, 2010

By: Amanda Formaro via Kaboose.com

What you’ll need:
-Styrofoam cup
-Red and blue felt
-Red paint
-Paintbrush
-Silver chenille stem
-Scissors
-White craft glue
-Black marker

How to make it:
Place cup, open end down, on top of the red felt and trace with a marker.
Cut around the traced circle leaving a ¾” border around it.

Fold the circle and cut a slit in the center of the circle to allow your scissors to get in. Cut out the inside circle, leaving about a ¼” border around the inside of the trace line. Set felt circle aside.

Paint red stripes all the way around the outside of the cup, stripes should run up and down. Let dry completely.

Cut a strip of blue felt about 1.5” wide. It should be long enough to wrap around the brim of the cup.

Glue felt strip around the outside of the top of the cup.

Lay red felt circle on to work surface, black trace line should be facing up.

Line the lip of the cup with white glue and press down onto black trace line. Let dry.
Turn cup over and place on work surface.

Use silver chenille to bend into star shapes, trim where needed. Glue onto the blue hat band.

When everything is dry, fill with treats.

Tips:
To make our treat cups sturdier, especially if using outside, glue a heavy washer to the bottom of the cup.

You can add handles to your cup by twisting to chenille stems together and poking through the sides of the cup and running over the top. This step should be done before adding the blue brim.

You may also use white paper or plastic cups for this project.

Uncle Sam Hat Treat Holders

Traps To Watch Out For When You Sell A Home

Wednesday, June 30th, 2010

Putting a home up for sale can turn out to be a wrenching experience. Although it matter how ready you might be to move on, it still means giving up a part of your history. Selling is even harder if it is prompted by difficult or even tragic circumstances, such as the death of a spouse, the loss of a job, or any kind of shift in financial circumstances.

This article covers common mistakes that that are made by people who want to sell and, more importantly, how to avoid being trapped by them.

Asking Too High a Price

Often it seems that sellers think that they should start out asking for the highest price in the realm of possibility. If it doesn’t sell right away, after all, they can always lower the price by a little, right? Not right. Although it’s true that opening prices can always be lowered, by the time that happens, the house has gotten “old.” People who dismissed your home as being too expensive or above their range as they studied the new listings won’t easily find out so they can come back and give your property a second look now that the listed price has been reduced. Start off by asking a fair price, and you’re likely to sell much faster and without a lot of bother. Considering the value of your time and the monetary and personal expense of holding the home on the market, most likely the right price differential could make months of difference in the time on the market before the transaction is successfully concluded.

Not Being Thorough With Disclosures

Laws in every state require you to disclose any material facts and flaws that pertain to your home. Most Realtors agree that it is safer to disclose too much about flaws and material facts than too little. It can be a problem if the buyer becomes aware of flaws or facts that you knew about, they could cancel the transaction or even take you to court.

Not Keeping the Home “Visitor Ready”

It is essential when you want to sell a home that it has to always look clean, comfortable, and welcoming. You can never tell when a Realtor will call and say they’re around the corner with a client who is ready to view the home. The home has to highlight the prospective buyers’ highest self-image, the way they like to think of themselves living a simple, carefree life. It could ruin your chances if a prospective buyer should walk in on two weeks’ worth of dirty laundry, a dirty bathroom sink, or a messy, cluttered house that looks more appropriate for a garage sale than for the relaxed, uncomplicated everyday life that needs to be the ideal.

Not Completing Your Agreements

When you enter into the contract, you may agree as part of the contract to do a few things, such as do something to fix up the outside of the home or make needed repairs. Be sure to complete whatever you agreed to do before the closing date, or the buyer could walk away from the deal.

Having Restricted Hours

When it finally happens that a prospective buyer wants to view the home, they want to be there now, or very quickly. Making a buyer wait even 24 hours may well keep them from wanting to see your place at all, or lead to them finding another one that they like better. Since the real estate agent will not want you present while the home is being shown, it’s a good idea to have your own list of places you can go or things you can do on short notice. This could be a neighbor’s home, the library, a movie theater, grocery store, etc.

Avoiding these home seller mistakes will increase the chances that your home will sell successfully and easily.

This information was provided by Automated Homefinder, Colorado’s Longmont real estate specialists.

traps when selling

Planning The Landscaping Of Your Garden

Friday, June 25th, 2010

Author: Owen Jones

Landscaping techniques allow the gardener to transform a simple backyard into a lovely garden. There are many paths to having a beautiful garden, because there are many types to choose from and there are different tastes too. Chacun a son gout. Some types of garden need a great deal of maintenance and others less so, but even a slabbed or concrete backyard requires some maintenance.

The best way of going about making something beautiful out of your backyard is planning and perhaps the easiest way of planning is to create a plan or a drawing of your garden.

If you decide on this route, the first thing you will have to do is obtain some graph paper and plot the exact size and shape of your garden onto it, using as large a scale as will fit on the sheet of graph paper.

When you have done that, put in in unmovable objects like a brick shed, a drain or septic tank, a fish pond and doorways et cetera. Then you should photocopy it, maybe five or ten times. This is so that you can make mistakes, change your mind or even allow everybody in the household to make their own design from their own investigations and imagination.

If you consider that this is beyond your abilities, you are probably wrong. It really is not difficult, kids draw on graph paper all the time in maths lessons. Nevertheless, if you do not want to do it this way, then you will have to rely on plans cut out of magazines.

So, collect all your ideas from magazines and place them in a file. Similarly, if you are making a diagram on paper, save your ideas in a folder, but also draw them on your graph paper.

Set yourself or your team a deadline of say, a fortnighy or a month, but you do want to do the majority of your work in the spring or the summer, when the weather is warm. On the appointed day, get together and combine all your plans into one.

Put all the superfluous material aside and forget about it. Do not overcomplicate the situation by having all the designs in the active file. Now you are ready to go to work and instigate the ideas.

The choice is now whether you do the work yourself or whether you get a contractor in. A builder will have experience, and so will be able to get the work done quickly. They will also be able to offer practical suggestions, if what you want to accomplish is tricky. The other side of the coin is that it is a great deal more expensive.

If you decide to do it yourself, you might find it a good idea to divide your plan into segments. It could be done in quarters of the garden at a time, if that is feasible, or you could do all the groundwork first, followed by the brick and blockwork, then the pond etc. Depending on your plan. The only thing that should to be done last is the planting of the plants

Owen Jones, the writer of this article writes on quite a few topics, but is at present concerned with outdoor accent lighting. If you would like to know more or check out some great offers, please go to our website at Outdoor Wall Lamps.

Article Source

About the Author: [Owen Jones has traveled extensively for many years and has various websites]

landscaping your garden

Do Housing Prices Have Further to Fall?

Monday, June 21st, 2010

Author: Ryan Moeller

In many areas market stability has not been restored. High inventory, high unemployment and high home prices will lead to further declines in home values. However, we are very close to hitting bottom and in many markets we already have. Remember, real estate is regional and you have to research not the entire country but down to the zip code, neighborhood, street and specific property. The article below sheds some light on Obama’s efforts and home values, a very interesting read. For more information, check out our Market Stability Report for info on your market and our Guide on Where to Invest.

Despite Obama’s Best Efforts, Housing Prices Have Further to Fall, Says Glenn Tongue

Posted Mar 10, 2010 01:23pm EST by Peter Gorenstein

What a difference a year makes. This times last year, the Federal Reserve, Treasury Department and White House were scrambling to do whatever they could to prevent home prices from falling off a cliff and thereby dragging the banking system down with it.

Now the Obama administration is set to launch a program on April 5 to encourage short sales. The plan will give homeowners and banks money if they sell the house for less than the mortgage is worth. The homeowner gets $1,500 to leave the house quickly and the bank gets $1,000 for going through with the transaction.

Time will tell whether or not it will be more successful than the struggling $75 billion mortgage modification program. Regardless there are still fundamentals in the marketplace the government can’t solve. “The inventory is too high, prices are slightly too high and unemployment is really quite high,” say Glenn Tongue, Managing Partner of T2 Partners and co-author of More Mortgage Meltdown.

Tongue tells Aaron, in the accompanying clip, home prices still have another 5-10% to drop before hitting bottom. And, though he admits “a year ago the situation was a lot worse” he’s still wary of investing in housing and financial stocks related to housing. In fact, his hedge fund is still shorting several companies in that business, though he would not name names, citing compliance rules.

Unlike last year, Tongue no longer finds the big banks attractive and instead focused on only a few specialty financial companies including Fairfax Financial and Resource America.

Real Return Real Estate™ for years has bought property at extreme discounts, sells and rents with tremendous cash flow. We also provide FREE tips, articles, guides and Educational Webinars. Visit our site http://www.realreturnrealestate.com for all the helpful resources.

[Article Source]

housing prices falling

Have Homebuilders Lost Confidence In The Recovery?

Tuesday, June 15th, 2010

According to the National Association of Home Builders, its housing market index fell to 17 in the month of June, dropping five points after two straight months of increases; the lowest level since March.

From The Associated Press:

Builders had been more optimistic earlier in the year when buyers could take advantage of tax credits of up to $8,000. Those incentives expired on April 30, although buyers with signed contracts have until June 30 to complete their purchases.

Experts anticipate home sales will slow in the second half of this year. In addition, high unemployment and tight mortgage lending continue to keep many buyers on the sidelines.

The drop in activity is “a wake-up call to the fact that the market will struggle to stand on its own two feet without the tax credit,” wrote Paul Dales, an economist with Capital Economics. “The double-dip in both activity and prices that we have been expecting for some time appears to have begun.”

New homes sales made up about 7 percent of the housing market last year. That’s down from about 15 percent before the bust.

It’s also bad news for the economy. Each new home built creates the equivalent of three jobs for a year and generates about $90,000 in taxes paid to local and federal authorities, according to the National Association of Home Builders. The impact is felt across multiple industries, from makers of faucets and dishwashers to lumber yards.

Full Article : Homebuilders less confident in recovery

homebuilders lose confidence in recovery

Appraised Value: The Ups & Downs Of How Much A House Is Worth

Monday, April 26th, 2010

Appraised Value: The Ups & Downs Of How Much A House Is Worth

Author: Trent

Determining Fair Market Value is an eternal struggle and major balancing act. That’s because buyers want a house to appraise on the low side—to keep the purchase price down. While sellers want the same house to appraise on the high side—to make the sale price higher. And then you’ve got the owners of the house—who also want the appraisal to be on the low side, in order to keep the property taxes down.

So with all these different agendas and points of view, how is the fair market value of a real estate property actually determined?

Once a year, your county sends all area homeowners official notices that put a dollar value on their property. And property taxes are based on those dollar values. But before those notices get sent out, a long, detailed process usually takes place. First, the land is valued as if it’s vacant—an empty lot, in other words. Then any improvements are described and measured. Improvements consist of the house and any other structures, pools, sheds, garages, and so forth. Next, most counties check the Marshall Valuation Service Cost Guide. It’s a standardized nationwide guide for determining the value of the cost per square foot to build a building that fits the description of the improved property. Next, if the house isn’t brand new, the replacement cost is considered, as well as depreciation; the year the house was constructed and the condition of the property are factors here. Appraisers then must take the critical step of comparing the value of the house with recent selling prices of similar homes in the neighborhood. At this point, the appraisal might stand “as is”—or it might be adjusted upward or downward.

Market Value is a theory, in other words—not an unchanging fact.

In a perfect world, you have to have willing buyer and a willing seller. Neither is under duress. Both are in a position to maximize gain and are trying to do this. But in the real world, things are rarely that simple and equally balanced. Which is why people feel differently about the appraisal value of a house. It really depends how strong their position is as a buyer or seller.

Does the local economy come into it at all? You bet it does.

Ask a successful Realtor about that! He or she will tell you they’ve noticed that the fast-growing economird are attracting people from other areas who consider real estate here a bargain. That helps fuel increases in property values.

How about your schoold district, the look of other houses near you, and walkability? Yes to all. Understand you houses pluses to different buyers and make sure you let everyone know about them.

So—now you know where that Grand Total comes from.

You’re armed with the information you need to make a better house-buying decision. For instance, you can understand how two virtually identical houses that are in two different neighborhoods could be very far apart in price and appraised value. And why your choice of the right house in the right neighborhood could be worth a not-so-small fortune to you right now—and years down the road.