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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com
Showing posts with label FHFA. Show all posts
Showing posts with label FHFA. Show all posts

December 5, 2011

Property Managers Thrive as Rentals Soar

Hi Folks,

   Hope you all had a great weekend, whether you were doing Holiday shopping or anything else to relax this past weekend.

   For quite some time, many honest and hard working Property Managers were being grouped into the same category as some bad apples in their field. However, since people are having difficulties purchasing homes due to mortgage rules, etc, rentals are soaring, and in conjunction, Property Managers are flourishing.

   If you are not sure of what the functions of a Rental Property Manager are, they "handle such tasks as screening tenants, helping landlords set rents, resolving disputes and ensuring lawns get mowed. They charge homeowners about 8 percent to 14 percent of the monthly rent, depending on the manager and city", as told by Hui-yong Yu on businessweek.com.

   Time for some hard facts from Yu in the article, "Once ‘Ugly’ Property Management Grows as U.S. Home Rentals Surge", Renter household formation "surpassed new owner-occupied homes in 2007 for the first time since 1985 and has held the lead since", per the U.S. Census Bureau data". Additionally, U.S. apartment vacancies fell to a five-year low in the third quarter, according to Reis Inc., a New York-based real estate research company. Supply and Demand - less vacancies means less apartments available, and thus, higher rents. Diane Castanes, a partner at Phillips Real Estate Services in Seattle, mentioned that “When rents go up, that gives people enough cash flow to hire professional management,”

   “There has been a dramatic shift toward renting,” Chris Herbert, research director of Harvard University’s Joint Center for Housing Studies, and as Yu said, services for rental properties are thriving "following a surge in foreclosures and stiffening of mortgage standards". This led to an explosion in membership in the National Association of Residential Property Managers over the past five years, according to the Chesapeake, Virginia-based trade group".

   This is where this story becomes extremely interesting.

   "Property management may have a role to play in fixing the housing crisis", said Reggie Brown, chief executive officer of All Property Management LLC, a Seattle-based Web service, in a segment of Yu's article. A few months back, the FHFA, which regulates Fannie Mae and Freddie Mac, was looking for ideas on "handling foreclosed homes held by the government", to the tune of about 248,000 as of June.

   Brown "filed a suggestion with the FHFA that the homes be put up for rent with property managers hired to oversee them", which was a fantastic idea. "What’s going to change is the percentage of U.S. households that are rental versus owner-occupied,” he said. “It’s now almost 40 percent, but that number is definitely going to grow.”

   From our standpoint, this is a great idea on many levels. With the proposal from Brown, coupled with our proposal to Rent to Own these homes (to generate immediate revenue), I definitely feel this would make a large impact on the Housing Market.

What are your thoughts on this?

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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #PropertyManager #rentalproperties #foreclosures #RenttoOwn #screeningtenants #homeowners #owneroccupiedhomes #apartmentvacancies #FHFA #Rentals #mortgagerules

October 25, 2011

Battle of The Home Price Indices

Hi Everyone,
   Glad to have you back with me here today!

   This week, there were two separate Home Price Indices released that reflected Home Prices in August as compared to the previous month, along with a comparison to the previous month one year prior. However, both the S&P/Case-Shiller Home Prices Index and the FHFA Monthly Home Price Index differ in their report.

   For the period covering July through August, the S&P/Case-Shiller Home Price Index showed increases of +0.2% for both the 10- and 20-City Composites. On the flip side, the FHFA House Price Index Fell 0.1%, which they deemed the "First Monthly Decline Since March".

   For the period covering August 2010 through August 2011, the S&P/Case-Shiller Home Price Index said that "Annual Rates of Change Continue to Improve", with Atlanta and Los Angeles continuing their drop, however, with the Midwest acting as a shining star, Detroit is named as "the healthiest when viewed on an annual basis" (possibly due to renewed strength in the Auto-Industry?). Once again we turn to the flip side, and we see that the FHFA House Price Index reported that U.S. prices fell 4% from August 2010 - August 2011.

   For the sake of Apples to Apples, the FHFA monthly index is calculated "using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac", and the S&P/Case-Shiller Home Price Index is a Weighted value composite of "single-family home price indices for the nine U.S. Census division"

   Did you find this interesting. Which of the figures would you place most of your faith?

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #HomePrices #FannieMae #FreddieMac #mortgage #FHFA #Detroit #Atlanta

September 11, 2011

Feds Finally Keen on Rent to Own Housing

Good Morning Friends,

   I'm glad to have you back another week to examine the Real Estate Market, look at some options that are open to you as a buyer or a seller, and to interpret the moves that the Government is making toward improving the Housing Market and the Economy.

   Today, we are actually going to hit all 3 of the above points in one Blog Post, and some of this information will surprise you!

   For quite some time, Rhode Island Senator Jack Reed has been, "calling on Fannie Mae and Freddie Mac to rent out their massive, 250,000-strong inventory of foreclosed homes in order to 'shrink the inventory of government-owned homes'", as Carol VanSickle points out in her story ("Federal Rental Program Update: White House Supports Rental Program"). Reed believes that by the Government taking on a landlord role, it would help "diminish the glut of foreclosures".

   According to Federal Reserve Chairman Ben Bernanke, per a recent article by Christina M Johnson ("Rent To Own - Forecast Bright As Home Sales Continue To Be Gloomy"), he believes the U.S. Housing Market is a strong factor that is hurting the broader economy, and believes that the massive amount of foreclosures selling below cost are "one of our country's biggest economic drains".

   Johnson, who was been privately buying and selling homes for 20 years, says that as we have seen, "foreclosures offered at below market pricing forces all housing prices to continue downward", and that this is one never ending cycle. Exacerbating this are the lending restrictions (lowering the bar on potential buyers), along with decreasing home prices. Johnson fears that we could become a nation of renters with only the "rich few as the exclusive property owners", and she cites data from Realty Trac, Inc. and CoreLogic that estimates millions of homes either in foreclosure or very close to going into foreclosure...currently!

   The following question was raised by Johnson; "Could the rent to own home sale market help pull the U.S. out of its economic slump?". Could the Government acting as a landlord help us? As VanSickle writes, "Previously, the idea of a landlord-government has been met with strong resistance."

   The "Winds of Change"...

   "Reed finally has some real support in the form of a call to action from the White House", says VanSickle, and says that the Obama administration has announced that "the government-controlled GSEs should partner with private investors in order to make Reed’s proposed rental program a reality", and the president said that the administration is “soliciting ideas” on how to put Reid’s concept into action. In an article titled, "Feds seek ideas on renting government-owned foreclosed homes" on the Seattle Times Website, Officials from the Obama administration and the Federal Housing Finance Agency (oversees Fannie Mae and Freddie Mac), said they hoped for innovative solutions to the "severe oversupply of single-family homes".

   The Seattle Times story says that Federal officials are "seeking ideas from investors and others about how to rent some of the nearly 250,000 foreclosed homes owned by government-backed entities such as Fannie Mae". VanSickle writes that the end goal is to "“turn the federal government’s inventory of foreclosed houses into rental properties that could be managed by private enterprises or sold in bulk”, and Johnson writes that Government incentives would "generate even more interest from other professionals related to the home sales industry, offering their help and expertise to help facilitate a successful rent to own transaction". This would, in turn, help the related fields and related services that are depending on Housing to get back on it's feet.

   U.S. Treasury Secretary Timothy Geithner recently said that they are "Exploring new options for selling these foreclosed properties will help expand access to affordable rental housing, promote private investment in local housing markets and support neighborhood and home-price stability", as Louis Aguilar writes in The Detroit News story, "Feds aim to revive Michigan's foreclosed homes".

   Aguilar writes that among the strategies on which agencies are "seeking comment" are rent-to-own programs and "ways the properties can be used to support affordable housing". He adds that the program might have a "big impact on Michigan", which, as per the U.S. Housing and Urban Development, or "HUD", ranks fifth in the nation for foreclosed properties (There is a new foreclosure properties website called the "REO PORTAL" located on the Huduser website). Along with Aguilar, both the Seattle Times story, as well as Johnson's story, both mention Rent to Own as an option gaining popularity.

   Johnson says that if the Government encourages private Rent to Own purchases via "tax breaks and financial incentives", this will reduce the amount of homes in foreclosure (and lower inventory), will stabilize prices, and would add a layer of "privatized protection". She said that the risks must also be addressed, such as potential property damage and costly evictions. Two of the most important points, however, are ensuring that the Buyer is working with someone to fix their credit (so they can actually buy the home at the end of the lease period), and on the flip side, making sure the Seller is current and does not have existing liens or a pending foreclosure on the actual home!

   In order to counter the lack of an outright sales commission due to a Real Estate Agent or Broker at the successful completion of an outright sale, Johnson has a suggestion; Real Estate Agents and Brokers could expand their services to property management, collecting the monthly rent, etc. Of course, each one of these would need to be cleared with the local Real Estate Board and also not cross over any fine lines drawn by RESPA or other Federal agencies.

   "Action on the issue might take a while", says the Seattle Times story, and says that the HUD and the FHFA announced a "request for information" that is open to all interested parties (Aguilar points to the FHFA website, where potential investors can click on "Request for Information: REO Asset Disposition"). The deadline for information requests is Sept. 15, so act fast !

   My thoughts? I've been servicing Rent to Own for over 9 years and watching how it helps buyers and sellers...but I pose the following question; "Why did it take the Government so long to open their eyes to this option?" Do you have any ideas to share on this?

Would You Like Our Blog Posts Directly to your E-mail? Here's How:
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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #FHFA #foreclosure #renttoown #Obama #Government #rentalprogram #HUD #RealEstate #FannieMae #FreddieMac

May 26, 2011

Home Prices - Look Out For The Herd

Happy Hot, Sticky, Summery Day,

   The one and only Winter fan shouting out to you today !

   When you think about Housing and Real Estate, one of the first things that comes to mind (or should come to mind), are Home Prices. This week, the Federal Housing Finance Agencys (FHFA) released their seasonally adjusted purchase-only house price index, which, as described, is, "calculated using home sales price information from Fannie Mae- and Freddie Mac-acquired mortgages."

   The "skinny" on these numbers boils down to the 2.5% drop in Q1 2011 vs. Q4 2010, and the 5.5% drop from Q1 2010 to Q1 2011. In the actual breakdown of the figures, "the strongest prices", as they were referred, were in the West South Central Division, where prices, "declined only 0.5 percent." Amongst the largest price drops (for the 25 most populated metropolitan areas) was the Atlanta-Sandy Springs-Marietta, GA area, which saw prices drop in excess of 13% from Q1 2010 to Q1 2011. Ouch !

   What does this all mean? "Absolutely nothing!", says Eric Bramlett, a Real Estate Broker in Austin, Texas, who says that all Real Estate is "local", and that the only buyers who are interested in purchasing "anywhere in the United States" are investors. Bramlett says that the, "vast majority of home buyers need to buy a property in a specific city or metro area, and most want to purchase within a sub-market of that area."

   In the world we live in, and the way we are wired, when we hear a market is in decline, many people go into the "Herd" mentality mindset, slap the blinders on, and forge along with those negative thoughts, so in a way, I believe it does effect us, even if indirectly.

   Bramlett provides some solid advice for homeowners and buyers, which is to, "find out where your local market stands, and you will have an accurate read on where you stand as a homeowner or buyer."

   Hopefully, you will read this for knowledge purposes and will not slap on the blinders. Educate yourself, check your desired area for crime, business, expansion, employment, etc. Did we miss anything? We'd love to hear from you.

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #homeprices #FannieMae #FreddiaMac #Atlanta #realestate

February 25, 2011

A Look at Current Home Prices and Home Sales

Hi Folks,

   Hope you've had a great week!

   A few key Housing numbers were released this week, and I'd like to review them with you here today since they deal with two very important factors; Home Prices and Home Sales.

   In terms of Home Prices, both the S&P/Case-Shiller Home Price Indices and the FHFA Monthly House Price Index were released this week. The S&P Indices, which provided data through December 2010, showed that the, "U.S. National Home Price Index declined by 3.9% during the fourth quarter of 2010.", and that the, "National Index is down 4.1% versus the fourth quarter of 2009, which is the lowest annual growth rate since the third quarter of 2009, when prices were falling at an 8.6% annual rate." The FHFA Index didn't fare well, either, with a 0.8 Percent drop in the Fourth Quarter of 2010, as well as a drop of 3.9 percent from the fourth quarter of 2009 to the fourth quarter of 2010.

   Chris "CD" Dowell of RE/MAX Best Associates, says that, "A high percentage of home buyer are investors. They're not worried about list price when making offers. They're looking at market value." Similarly, Paul Gabrail from Select Investment Group, says that many thought that, "because we saw short term leveling of prices a few months ago that the problems were over. Yet, we still have 9%+ unemployment, over leveraged borrowers, and banks are still increasing their foreclosure filings, which lead to lower prices because of oversupply."

   In terms of Home Sales, Existing-Home Sales Rose Again in January, as per the National Association of REALTORS®. Existing-home sales figures, which marks, "the third consecutive month with a pace that is now above year-ago levels". New Residential Sales in January 2011 were 12.6 percent below the revised December rate, and 18.6 percent below the January 2010 estimate.

   In summary, as Gabrail says, "some of these hotter markets are even worse - 13%+ unemployment, one in 10 houses behind on their mortgage and houses sitting empty and on market for over 1 year. It's all supply and demand and there is no demand when unemployment is 9%, so we have both extremes: Low demand and over supply."

   Do you have any comments on the Housing numbers release this past week? We'd love to hear from you.

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

January 26, 2011

Update on Home Prices

Good Morning,

   Welcome back, as we're half way through the week.

   Two of the leading Home Price Indices were released yesterday; the S&P/Case-Shiller Home Price Index and the FHFA Monthly House Price Index.

   The S&P/Case-Shiller Home Price Index came in with, "nine markets – Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, Portland (OR), Seattle and Tampa" at their, "lowest levels since home prices peaked in 2006 and 2007". Similarly, The FHFA Monthly House Price Index, came back with a 4.3 percent drop in U.S. prices, "For the 12 months ending in November".

   These numbers show us that there is still a long way to go.

   Double-dip in Home prices? Do you agree?


Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

November 24, 2010

Do the Housing Numbers Make You Dizzy?

Hi Folks,


   Hope you've had a great short week, and you're ready for the Feast !

   As we discussed on Monday, there were quite a bit of pivotal numbers coming out, and I wanted to take a look at them together with you. Whether this will aid in your digestion tomorrow will remain to be seen.

   New Residential Sales: October came in at 8.1% below September and 28.5% below October 2009, and compared to the same numbers released last month, which showed a 6.6 percent short term increase, but was also substantially below the previous year (21.5 percent decrease). What happened to another short-term increase? Where did that go?

   Existing-Home Sales: The figures for October came in 2.2% below September, and 25.9% below October 2009, reflecting, of course, the tax credit frenzy during that period of time.

   FHFA Quarterly Index: This purchase-only FHFA house price index showed a 1.6% drop from the 2nd Quarter to the 3rd Quarter, and a 3.2% drop from the same period in 2009. The biggest movers were the Mountain Division of the US, which was down 4%, while the New England Division rose 0.9%

   We still have a long way to go until we start seeing rock-solid numbers coming out with every new release, and it certainly will, as we cannot create more land, just more houses!

   As a final note, we will be doing a very informative piece on Friday, which will cover the topic of Bank REOs and Foreclosures, so be sure to tune-in (and digest).

Have a Safe and Happy Thanksgiving
...and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

November 22, 2010

Turkey vs. Home Sales ?

Hi All,


   Hope you all had a great weekend, and welcome back to the "Short Week" for most of you.

   It boggles the mind when you realize that there will be 3 major data releases in the next 2 days leading up to the Thanksgiving Holiday weekend, but the wheels of the Economy must chug ahead and chrun out the figures.

Here is what is due out this week:
Tues Morning - NAR Existing Home Sales
Weds Morning - FHFA Quarterly Index And New Residential Sales

   Of course, we will recap any of the numbers, should they be eventful. Other than that, we will keep our posts this week short and to the point, since the choice between the thought of turkey and reading my blog posts is a battle that I do not want to get involved with.

   As a reminder, we are still offering our, "Important News for Sellers":

   To Recap the offer: We are offering 30 Free Seller Ads (2-Month Ad duration) - so you can list your home for sale or Rent to Own (a $9.99 value). No catch involved - just Holiday Spirit.

   How do you nail down that free Ad? CLICK HERE to send us the E-mail address that you will use to create your ad. We will then send you a username, password, and the link to log in and place your Ad, add images, etc. This is rare, so jump on this before the remaining slots are gone.

Have a Great Week, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com/