New rules coming down from Federal Reserve Chairman Ben Bernanke aim to prevent the current mortgage lending crisis from happening again in the future. The rules will require stricter requirements for proving income of borrowers, limiting or eliminating pre-payment penalties. The changes will also require lenders to consider the borrowers ability to repay from sources other than the home’s value.
Interesting article.
It appears that more and more cities are seeing banks delay the foreclosure process when the occupant abandons the property. There can be many reasons but the article speculates that the banks are trying to minimize losses on their books which may catch the eye of regulators. Others presume it’s to avoid costly maintenance fees, taxes, and increased liability.
Nevertheless, it’s happening on a large scale. Neighborhoods of all flavors are seeing often smelly over-grown eye sores sitting detracting from the value of their surrounding properties.
What can one do? Little without trespassing.
City and county officials (according to the article) have spent millions on cleaning up such properties with little recourse to banks and prior owners. At the end of the day, the tax payers are footing the bill.
Just another added benefit of a changing market.
For the first time since July home sales have risen across the US, but the average price has fallen. Demand is back but buyers are being pickier and negotiating harder on the homes they purchase.
On average prices have fallen 8.2 to 8.7 percent between condominiums and single family homes respectively.
Now I may be accused of being a bit biased here, BUT take what I’m about to say seriously.
Many argue that the as home prices across the country continue to decline that they intend to wait until it “hits the bottom” before they jump off the fence and buy. Now it’s difficult for anyone to predict where the bottom is, and many times the bottom passes and on the slight incline the economy takes on it’s first few weeks of recovery many start to buy.
As the economy recovers interest rates will rise again. Take for example a 5.5% loan on a $218,900 mortgage (the rate some people grabbed a few weeks ago). They could expect to pay around 994.31 / month. If home prices were to drop 10% over the next year, to bring the home price to $197,010 and finance at a mere 6% - the payment would be $994.94 - not much difference. It pays to do the math - either way you’re going to pay about the same out of pocket.
Where someone potentially gains is if the market completely rebounds to it’s previous numbers, but I highly doubt that will happen quickly. The market corrected - and that’s a healthy part of any economic situation.
For more information on this article visit rightonyourmoney.com
In Canada - the problem isn’t selling the home - it’s being able to afford to buy one after you do.
With soaring prices - some places as high as 45% appreciation in one year some Canadians are finding it hard to buy a home. Experts estimate that this rapid appreciation trend will slow to a puny 4% this year easing the troubles on worried home buyers.
Georgia’s recent water crisis has hit a new low. Some lawmakers have proposed annexing a small part of Tennessee to include the Nickajack Resevoir to quench Georgia’s growing thirst.
If you didn’t see it, last summer Georgia sucked their water supplies nearly dry and have been fighting with Tennessee and Florida over water rights for some time.
This article is aimed at agents informing them of benefits of having their clients get home inspections, but I think it’s great info for everyone. In Spokane the prices run around $275 for most home sizes.
Many of us saw this coming.
After touring what must be hundreds of houses reviewing them for my first time home buyers, investors and relocation clients I’ve seen the effects of poor craftsmanship in many. Now I’m not a home inspector, but I can tell when something doesn’t look right. A new regulation in Washington may make it more difficult to flip houses and put more controls and accountability on the “Flippers.”
The new regulation suggests that investors or developers seeking to buy, fix up and sell a home as a business in a period less than a year shall hold contractors licenses among other requirements. Individuals developing a property with the intent to rent it or sell it outside of 12 months may be exempt.
If you are interested in flipping and turning properties this may be worth looking into before the fines moutnt up.
Baghdad Iraq is experiencing what the U.S. did several years ago - a Real Estate boom. According to several articles, the boom is being driven by decreased violence (no not zero violence - just decreased). Bidding wars and high prices are not uncommon. And prices are rising.
A 750 square foot home is said to run around $150,000 USD. Larger homes, up in the 200 and 300k range.
Where is the demand you may ask? Iraqis are returning by the thousands from Syria to reclaim their homeland creating complete Real Estate chaos.
No, not Turkey futures - the country. While countries around the world are rushing to invest in the soft U.S. Real Estate Markets - others are stuffing their money into a small country in the Middle East - Turkey.
Offshore investment is gaining significant popularity as the world is being shrunk by affordable long distanct travel and the increased ability to communicate over long distances quickly through the internet.
Here are the 10 Reasons to Invest in Turkey
Who Am I?