Market Trends and Condition

http://online.wsj.com/article/SB1000142405270230472440457729790407054778...

http://online.wsj.com/article/SB1000142405270230472440457729790407054778...

This is a very good article written by Justin Holman, a real estate blog contributer.

"I read an excellent piece this morning in the New York Times written by Greg Smith about why he was leaving Goldman Sachs. In short, he says it’s become too sleazy as short-term profit motives are now trumping all other considerations.

In the past 2.5 years I’ve been investing in real estate in my home town Pueblo, Colorado. What I’ve found is that large banks are dragging out the foreclosure process so that homes are left vacant for 18 months or more. This is bad for everyone.

It’s bad for the banks because while the homes sit vacant they deteriorate and lose value.
It’s bad for the neighborhood because it drives down prices and vacant homes invite criminal activity.

The effects of the robo-signing scandal that developed in 2009 through 2010 are still being felt. Foreclosure activity slowed almost to a halt for a while, and still hasn’t reached a normal pace, though banks are now beginning to file at a more normal rate. Shoddy underwriting and legal shortcuts in the foreclosure process are blamed for a great number of lost homes. However, some homeowners are now fighting back.
One couple depicted in an MSNBC story began trying to get a mortgage modification back in 2008 from Bank of America, after the husband’s job was lost. They were only a month behind on mortgage payments, and tried to work with Bank of America. However, they could get no action, and after a year of red tape and delays, the couple hired an attorney to help.

A large number of borrowers who were hoping for some help from the states’ attorneys general settlement with the five largest mortgage lenders are holding an empty bag. The $26 billion settlement is expected to help only around 1 million troubled homeowners, far from the 11+ million with underwater home loans.
Proponents of the settlement deal state that around 1 million homeowners will have their mortgage balances lowered and another 750,000 would be able to refinance with lower interest rates. With 3.5 million homeowners having lost their homes over the last four years, and another 11 million underwater on their loans, many consider this settlement far too little far too late.

http://www.cnn.com/video/?hpt=hp_t3#/video/bestoftv/2012/03/20/exp-early...

According to DSNEWS.com "Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit."

http://www.dsnews.com/articles/housing-crisis-to-end-in-2012-as-banks-lo...

from blogger on TFunding site:

While a new upward surge in the real estate market may be gradually sweeping the country investors may want to think twice before switching their real estate investment strategies. Wholesaling still remains king and here’s why…

Here is the list of the top five states with underwater mortgages.

1. Nevada
2. Arizona
3. Florida
4. Michigan
5. Georgia

read the whole story here:

http://bottomline.msnbc.msn.com/_news/2012/03/09/10626408-5-states-drown...

Between $7 billion and $10 billion in property taxes go into delinquency each year. For state, county and local governments, failure to collect this much revenue is having a negative impact on their budgets and ability to continue funding obligations and infrastructure. In 29 states and the District of Columbia, governments turn to investors to make up the short fall.