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Republicans Avoiding Offering any Plausible Solution to the Foreclosure Crisis in Nevada

Julie Parker — Thu, 09 Feb 2012 09:45:54 +0000

Although the game of competing for the presidential crown among the Republicans is heating up, the party is avoiding offering any plausible solution to the foreclosure crisis in Nevada. The state ranks first in unemployment and foreclosure figures. Among the houses 58% are underwater with the value of the houses far below the loan due amount. Nationally 22% are underwater.

To add insult to injury during his tour ofNevada, Mitt Romney said that the idea was not good to “try to sop the foreclosure process. Let it run its course and hit the bottom”.

Recently Rep. Ron Paul (Texas) came forward with a string of deductions and tax credits to those who were first nest builders and also for buyers who had experienced foreclosures. He thinks this would be an effective way to give a fillip to the housing market.

Newt Gingrich said if he won he would repeal the Wall Street Reform and Consumer Protection Act of Dodd-Frank. Gingrich was confident that “overnight it will be easier to get a housing loan”.

Recently President Obama has suggested a plan to help those with negative equity. It would enable them to become current on their mortgages that would lead to savings of $3,000 per year on an average. The plan would be financed with bank tax that the House, led by the Republicans has little interest in supporting. In a speech Obama admitted, “I’ll be honest, the programmes that we put forward haven’t worked at the scale that we hoped. Not as many people have taken advantage of it as we wanted”.

Experts think that the Republicans have hardly spoken on the housing crisis inNevadafor political expediency. Professor David Damore ofUniversityofNevadaatLas Vegassaid, “They’re not going to want to propose something that would involve more government intervention. But it’s kind of hard not to have the government involved in a situation likeNevada”.

Southern Nevada’s Legal Aid Center has been holding talks in a class room of the law school of the university to acquaint the troubled homeowners with the in and out of the mortgage issue. The Center claims that three fourths of those who have attended these talks have been able to continue to stay in their houses, at least for some time.

The latest problem is that those who had got their loans modified in 2009 were re-defaulting.

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Infographic: Housing Market Trends for 2011

Kevin Simpson — Wed, 08 Feb 2012 16:58:40 +0000

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Interview: Matthew Martinez From Beacon Hill Property Group

Kevin Simpson — Mon, 06 Feb 2012 18:43:14 +0000

Mr. Martinez is the author of the book “How to Make Money in Real Estate in the New Economy” , which has been a success in the real estate industry.

Mr. Martinez, can you tell us a little about your career?

I started buying multifamily apartment buildings in 2001. I acquired 3-4 unit buildings because they produced a positive cash flow but didn’t require 20% + down payments. After a few years, I graduated up to larger apartment complexes of 100+ units. Today, Beacon Hill Property Group, a private real estate investment company, acquires value-add income-producing properties in Boston and Miami.

The company’s transaction expertise covers a broad range of disciplines including multifamily, retail, property management, consulting, brokerage and development.

Matthew Martinez

Why did you start writing books about real estate investing?

I began writing books about investing in real estate because I wanted to help people achieve financial independence. About 10 years ago I was featured on CNN as a Tycoon in the Making. The story featured me as an up and coming real estate investor who made the transition from a corporate 9 to 5 employee to a real estate entrepreneur who no longer needed a paycheck to survive. Following the publication of this story on CNN, I was inundated by emails and phone calls from people all of the United States. I thought the best way to help people would be to write a book about my story. I never anticipated writing 3 books,ut I’m glad I continued writing because I’ve been able to help an even larger audience during the pWhere did you start investing?
I started investing in my hometown of Boston. I always recommend investing in the place that you know best. The place that is in proximity to your home and/or place of business.

Could you talk a bit about your work and what have you have accomplished since the book was released in 2010?

We formed a retail real estate brokerage firm and represent over 2 million square feet or retail space and more than 25 retail tenants. We’ve developed an expertise in retail during the past few years – since I started writing my last book. Moreover, we have been actively pursuing multifamily deals in our farm areas.

What are you working on these days?

I continue to look for value-add multifamily and retail deals in this distressed market. In fact, this is the very best time to be acquiring real estate since the RTC days in 1990! If you aren’t actively looking for properties, you should be! Fortunes will be made during this down cycle. Contrarians make their money when everyone is scared. They buy when others are selling and sell when everyone else in buying.

You have a new book titled: “How to Make Money in Real Estate in the New Economy.” Could you tell us more about this book?

In this book I describe how to build a property portfolio that performs in today’s distressed markets and is primed to generate cash flow and profits through the coming recovery. Topics covered include: how to value real estate; the new financing guidelines; multifamily, retail and office properties; commercial real estate future trends; and much more. This book will have you poised to take advantage of the strongest prospects for income, growth, and profit in more than a decade.

Making money, in most situations, is a long term process. From the moment we aim to achieve this goal, what’s the best path to take?

Work diligently and educate yourself through online and college courses, books and work experience. Find a mentor who will guide you. Work for a company that is doing what you want to do for yourself one day. Gain your experience on someone else’s dime. Never give up and always follow your dreams.

Thanks for this interview, Mr. Martinez.

You can buy the book here.

You can find more data on his website.

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Infographic: Property Auction

Kevin Simpson — Mon, 06 Feb 2012 10:48:05 +0000

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Foreclosures and Unemployment Given Top Priority in Florida

Julie Parker — Mon, 06 Feb 2012 09:36:00 +0000

Steve Dougherty after retiring from the police force bought in 2006 a house inFort Myerstogether with his wife; it was the time of the housing boom. He got re-employed and started making paying towards their housing mortgage. Soon after the bubble burst and Dougherty got laid off from his job in the civilian policing job. They were compelled to short sale their houses and suffered a loss of $150,000; narrowly foreclosure was averted. They were just one among many who lost their American dream of house ownership.

The same economic picture is noticeable in bothFloridaandMichigan– devastation by unemployment and foreclosures. This will inevitably influence the thousands of voters for the forthcoming Republican primary.

The two Republicans at the front of the race, Mitt Romney and Newt Gingrich are focusing on the after effects of the recession as they canvass inFlorida.Floridahas a diverse population – it being the most populous. The same issues are dominatingMichigan.

Romney seems to way ahead but Gingrich will cling on till the convention. Last week Gingrich, formerly speaker of the House, got endorsement from Herman Cain – once a White House hopeful. Gingrich will be accompanied by the son of Ronald Regan, Michael Reagan, while campaigning.

Romney however has not stopped his attacks on Gingrich for his links with Freddie Mac, one of the chief architects of the foreclosure crisis. Romney said that his has been the reason for Gingrich’s “failure to connect” with the voters.

MichiganandFloridahave set up schedules for early primaries. The reason was partly because of the Republican Party wishing the economic issues to be addressed. Both the states have the same problems relating to Social Security, Medicare and revival of tourism. Housing and the economy tops their lists.

Professor Susan MacManus (University of SouthFlorida) a graduate fromUniversityofMichigansaid that inFloridaforeclosures have been caused to some extent because of job outsourcing and exiting of migrants. The tax base has been eroded because of surfeit in empty houses.

InFlorida, Gingrich and Romney and also Rick Santorum and Ron Paul are slugging it out but none can avoid talking about unemployment and foreclosures. The prescriptions suggested are the same – reduced taxes, less involvement by government, and repeal of regulations like that of the Dodd Frank reform laws. They think these are cobbling mortgage industry and putting brakes on lending by the local banks.

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Infographic: The Numbers Behind Credit Cards

Kevin Simpson — Fri, 03 Feb 2012 13:29:55 +0000

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In New York City as Elsewhere Foreclosures have Tumbled Prices and Caused Blight to Neighbourhoods

Julie Parker — Fri, 03 Feb 2012 12:16:38 +0000

In New York City as elsewhere foreclosures have tumbled prices and caused blight to neighbourhoods. The worst affected are the localities housing single-families. Apartment buildings also have not been spared as per latest report by Citizens Housing & Planning Council andEnterprise. It deals with affordable housing.

Foreclosures are causing a string of code-violations spreading from one building to another. The houses located within 250’ of a foreclosed unit see on an average an increase of 14% in code violations (Class C). The problems related to lead paint, hot-water and heating as codified by Housing Preservation and Development Department. Harold Shultz of HPDD said, “In single-family neighbourhoods, you see empty homes and swimming pools filled with algae, in a way that you don’t see them in multifamily neighbourhoods”.

The effect on apartment buildings can be gauged by the fewer repairs being undertaken by landlords and a relative increase in violations of housing code, pointed out Shultz.

InNew York Citythe problem although widespread, is concentrated inManhattan(north), Bronx (central and west) andBrooklyn(central).

Some years previously a minimum of 1,300 multi-family units in the city were either in or threatened by foreclosure, observed the council. Many are still navigating through the foreclosure maze.

The icon of troubled multi-family housing became ten apartment buildings inBronx. Milbank Real Estate was the owner. Code violations of these buildings shot up by thousands according to the tenants. The firm could not be contacted for comments.

During this period the neighbouring units also suffered with increases in physical and financial problems. Sixteen surrounding buildings were affected as per University Neighborhood Housing Program based in northwestBronxdealing with affordable housing.

Proving that one is linked with the other is difficult but there has been an increase in code violations surrounding a foreclosed unit. Most of these buildings are located in neighbourhoods inhabited by the low-income group. At the time of the recession, rents dropped drastically and landlords have pulled away from undertaking any investments. There are other factors at play – stepped up inspections by housing department during this period.

Abby Jo Sigal of Citizens Housing & Planning Council andEnterprisesaid it is increase in vigilance that has led to noting of increase in code violation numbers Eric Bederman of Housing Preservation and Development Department ( spokesperson) that his department had increased its efforts for enforcement of regulations in the buildings carrying high risks. He said, “Buildings in severe physical distress, whether in foreclosure or not, can act as an undermining force in neighbourhoods that have historically struggled to maintain their housing stock”.

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Infographic: The Energy-Hungry House

Kevin Simpson — Thu, 02 Feb 2012 11:37:20 +0000

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Is Renting the Answer to Rehabilitating Abandoned Foreclosed Units?

Julie Parker — Thu, 02 Feb 2012 08:27:36 +0000

Is renting the answer to rehabilitating abandoned foreclosed units? There are many ongoing studies on the effects of the foreclosure mayhem but nothing is more telling than the trail of abandoned crumbling houses it has left behind the numbers exceeding 500,000. Even more are rushing into the market and now the lenders are up against a dilemma of their own creation.

What will they do with these vacant units?

Responding to the SOS from FHFA the Center for American Progress has suggested a forceful idea – make the lenders that are backed by the government to lease these out. The programme is named Rehab-to-Rent or R2R wants FHA as well as Freddie Mac and Fannie Mae to sell these houses to investors who will take on the task of repairing and then renting them out.

The three agencies own nearly half of all the houses in foreclosure in the market counting to about 230,000. The programme, if carried out properly, should have a big impact on the market. The idea however is nothing new.

From last December Bank of America had begun to circulate this plan of renting out foreclosed houses to the previous owner-cum-occupants giving them the option of buying these.

Both plans will help those localities that have been worst hit by the foreclosure crisis; the minority dominated areas with people in the low-income group have been worst affected.

The plans seem simple since right now there is a big demand for rented units. Former house owners are trying to downsize. The challenge is to convince Fannie Mae, Freddie Mac and FHA about the feasibility of the loan; without immediate short-term results they could hesitate to implement it and be tempted to sell off to investors who bid the highest.

CAP argues that the lenders should try to bring stability to the housing market and see that taxpayer’s are benefited by keeping off ‘For Sale’ signs from abandoned properties. If the market is again deluged with foreclosed units it would cause further tumbling of prices – especially in those areas that have already been battered. CAP opined that R2R programmes would be most required in the cities where the rental demand is strong; here there are a good number of foreclosed units.

Californian cities were prominent on the list. CAP commented, “It’s no surprise … to see three Californian cities listed on the ‘priority’ list.Californiahas one of the highest per-capita foreclosure rates in the nation and has been one of the largest drops in home prices”.

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Infographic: An Overview of the Commercial Real Estate Market

Kevin Simpson — Wed, 01 Feb 2012 11:08:51 +0000

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Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Infographic: An Overview of the Commercial Real Estate Market