Sweet Deal? $16 For a $300,000 Home?

Hi Everyone,

   Welcome back !
   Well...Chalk this one up under the topic of "Oddball Topics!".

   Some guy in Texas walked paid a $16 filing fee and moved into an abandoned foreclosure home...and he is well within his legal rights to stay. According to a story by Stephen Clark, titled, "Texas Man’s $16 Property Seizure Throws Obscure Law Into Spotlight", the man used a legal maneuver known as "adverse possession", which "allows individuals to take property considered abandoned", is an old law on the books of most states, and dates back to the 1800's and British common law.

   Basically, as Clark writes, it was originally used to "deal with the boundaries of farmlands that weren't always clear". Larry Morandi, director of state policy research for the National Conference of State Legislatures, called it "kind of a quirky doctrine" designed to acknowledge that if you got "possession of a property and no one's been challenging it, you should have some type of title to it". But, nowadays, the concept has led to abuses, and as Clark writes, some scam companies have formed to seize properties and rent them out. Basically, a function of the sluggish economy and the increase in foreclosures.

   In this specific case in Texas, if this guy stays in the house for 3 years, he can obtain the title and become the owner. It's true! Some states can take 20 years, so he chose the right state to do this!

   Is he really safe there? Apparently, he told the news that the owner would have to pay off a "massive mortgage debt", and the bank would need to file a "complex lawsuit" (he does not see this happening). It seems that he did his homework, since he put up "no trespassing" signs, and therefore, the police cannot remove him since it's a "civil matter, not a criminal one."

   Some states are cracking down, but only Florida and Washington state have passed laws "tightening the requirements for claiming property through adverse possession." In Colorado, there was a change that allowed judges to force the adverse possessors to "compensate the original owners for back property taxes and interest". The crackdowns failed in many other states, which I find very odd, don't you?

   Apparently, Clark writes, "as long as it's in the open, it's not a crime", and adds that adverse possessors can even "register the bills in their name and notify the bank, previous homeowner or neighbors of their intent."

   This is definitely something that is hard to wrap your mind around. It's something I am sure most of us are not familiar with. What are your thoughts on this?


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TAGS: #abandoned #foreclosure #Texas #adversepossession #Britishcommonlaw #mortgagedebt

The Bounce Continues, As Well As The Tug of War

Hi Folks,

   Friday has arrived, and not a moment too soon !

   OK, on Wednesday, we discussed the jump in Building Permits, Housing Starts, and Housing Completions from July 2010 to July 2011. In our summary from that Blog Post, we said; "To gain a better assessment on that very important piece of the market, we will have to see what the National Association of Realtors (NAR) posts for their Existing Home Sales Index for July". Those numbers were just released, and "the trend is our friend", as the saying goes.

   Existing Home Sales are up "Strongly From a Year Ago", says the National Association of Realtors® (NAR), in their Press Release. By the Numbers, Existing Home Sales are 21% above July 2010. Regionally, the big winner was the Midwest, which was 31.3% above July 2010, but all Regions posted double-digit gains from July 2010.

   Lawrence Yun, NAR chief economist, made a very interesting comment as to the tug and pull (I call it Tug of War), that is holding back a full-blown recovery vs. and uneven recovery. Yun said that even though the "“Affordability conditions this year have been the most favorable on record dating back to 1970", the issue is that many buyers are being "held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers,”. Ron Phipps, NAR President and broker-president of Phipps Realty in Warwick, R.I. says that an "unacceptably high number of potential home buyers" are unable to complete transactions, and that “For both mortgage credit and home appraisals, there’s been a parallel pendulum swing from very loose standards which led to the housing boom, to unnecessarily restrictive practices as an overreaction to the housing correction”. Thus, the "Tug of War".

   We found out this week that since July of last year, Permits, Starts, Completions, and sales of Existing Homes have all increased substantially. What's next? New Residential Sales for July will be released next week, and it will certainly be important to analyze these figures. What do you think? Is this good news?


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TAGS: #ExistingHomeSales #NAR #BuildingPermits #HousingStarts #HousingCompletions

Housing Permits, Starts, And Completions All Rise

Hi Everyone,
   Hope you're having a productive and peaceful week. I come to you with some good housing news today!

   For the 12 months spanning July 2010 through July 2010, the 3 components of the New Residential Construction Housing statistics all showed an increase.

   From July 2010 through July 2011, Privately-owned housing units authorized by building permits jumped 3.8%, Privately-owned housing starts jumped 9.8%, and Privately-owned housing completions rose 9.5%, per the U.S. Census Bureau and the Department of Housing and Urban Development.

   What does this mean?

   This paints an overall picture of increased real estate activity from the same period a year ago. My opinion - this is a good thing. However, we are still sitting on a large inventory of existing homes, with a large percentage of that inventory as foreclosure/short sale properties. To gain a better assessment on that very important piece of the market, we will have to see what the National Association of Realtors (NAR) posts for their Existing Home Sales Index for July (due out Thursday Morning).

   Please Stay Tuned !

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TAGS: #residentialconstruction #buildingpermits #housingstarts #housingcompletions #realestate #foreclosure #shortsale

Danger Alert - For Anyone Showing Homes

Hi Folks,

   Hope You had a nice weekend, and welcome back.

   Today will be more of a Public Service Message, and it serves as a warning to anyone showing a home to relative strangers, male or female.

   "The attempted kidnapping and near sexual assault of a female Jackson real estate agent on Wednesday has reminded those in the industry about the dangers of their profession". This was taken from a recent story published in the JacksonSun website in Tennessee, written by Ned B. Hunter.

   The agent was showing a home to a man in the late afternoon, when he grabbed her and tied her up and put her in a closet, then left with her cell phone and purse. Fortunately, she was able to escape and call the police, resulting in the arrest of the suspect. She was very lucky, since it could have ended a lot worse for her.

   Earlier this year, I wrote a story in this Blog titled, "Home Security When Selling or Residing", in which we discussed these dangers. Jennifer A. Chiongbian, SVP and Licensed Associate Broker with Rutenberg Realty in New York City, suggests that you let your friends and neighbors know when you are showing a home. She also added another tip regarding your friends and neighbor; "have them call you afterwards to make sure everything is okay."

   Bottom Line...Be careful. You might be showing a lot of homes each day, but please don't get so entwined in the process that you overlook your safety and security. Any helpful suggestions for our friends here?


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TAGS: #realestateagent #danger #showingahome #Jackson #Tennessee

Homebuyers, Homebuyers...Please Come Back!

Hi Everyone,
   It's Friday, and I'm glad to have you back!

   Sometimes it fascinates me to see the ripple effect of the Economy (specifically, Housing and Employment). When Housing and Employment are in turmoil, some crazy things happen, for example...the creation of modern-day Ghost Towns...yes, Ghost Towns.

   According to a recent story on 247wallst.com ("The Eight States Running Out Of Homebuyers") by Douglas A. McIntyre, Michael B. Sauter, and Charles B. Stockdale, "Parts of Oregon, Georgia, and Arizona have become progressively more deserted.". As a matter of fact, they said that the "single biggest problem in the U.S. real estate market is simple: There are very few homebuyers.", and referred to a “buyers’ strike”.

   In order to find the hardest-hit states, 24/7 Wall St. used 6 factors which ranged from vacancy rates, foreclosure rates, unemployment rates, construction figures, population changes and price reductions.

   The Eight States that wound up on their list were Michigan, Nevada, Arizona, California, Illinois, Georgia, Oregon, Florida. Michigan had the worst Population Change (Decrease) from 2005-2010, which would have been substantially impacted by the car industry bankruptcies.

   Some other facts regarding the other states that were analyzed: Nevada had the worst 2010 Foreclosures, the worst Unemployment, and the worst decrease in Building Permits 2006 to 2010. Florida had the 2nd worst vacancy rates. Two states that did not make the list were Colorado (had one of the worst foreclosure rates) and South Carolina (one of the worst vacancy rates), but they stated that the populations in both states have "rebounded enough to make a strong case that their housing markets may recover moderately over time."

   What happens now?

   As we discussed the other day in "Really? They Are Doing THAT To Foreclosures?", this story also mentions that some homes will be "torn down in these pockets of high foreclosures" to drop supply and boost prices. Outside of that spark of hope, they don't feel overly optimistic regarding these areas, since, "jobless rates may never recover" and little chance that the "populations in these areas will ever rebound." Thus...Ghost Towns for now, and who even knows how long.

   Do you live near a newly-deserted region? How does it feel? What are your thoughts from your first-hand observations?

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TAGS: #GhostTown #vacancyrates #foreclosurerates #unemploymentrates #constructionfigures #populationchanges #Michigan #Nevada #Florida

Really? They Are Doing THAT To Foreclosures?

Hi Folks,

   Happy Wednesday to you.

   As some of you may be aware, when a person cannot afford their home, it's very easy for late payments to start accruing, and the bank letters come, and all of those other ugly things.

   Before that, a homeowner can try and bring their mortgage current, do a Rent to Own, along with a few other salvage techniques. Ultimately, they may decide to short sale the home, if the price of the home is less than the outstanding mortgage(s). Additionally, they can walk away, and the home will ultimately go into foreclosure. At this point, it remains on the bank's balance sheet as an REO (Real Estate Owned), and the bank uses agents to try and sell the homes to recoup something to cover the losses.

   But this raises the question...what about the "Orphans"...the homes that won't even sell at substantial discounts. What do the banks do with these homes? Bulldoze them!

   "Increasingly, it appears banks are turning to demolition teams instead of Realtors to rid them of their least valuable repossessed homes", which comes from an article aptly titled, "Bulldoze: The New Way To Foreclose", written by Stephen Gandel for Time.com. As Gandel writes, "There are nearly 1.7 million homes in the U.S. in some state of foreclosure.". Now, with the market laws of supply and demand, if there are too many homes on market, prices stay low. Gandel poses the question, "But what if some of those homes never hit the market."? This could be good for the market.

   Just recently, per the article, Bank of America (BofA) announced "plans to demolish 100 foreclosed homes in the Cleveland area.", and most of there homes, according to a BofA spokesman, are "worth less than $10,000". How many so far? Approximately 100 in Detroit, 150 in Chicago, and more cities slated by end of year. It's not just BofA...Fannie Mae, Wells Fargo, and JPMorgan Chase were also mentioned.

   Why is this good? Who does this help?

   It's good for the banks since they no longer need to pay tax and upkeep, writes Gandel. They might even get a write-off for the donations.

   It's good for the local governments since they have the land donated back to them, and they get to develop it or use it as open space,

   The story says that "Housing economists like these deals because they remove homes from the market that would otherwise sell for a low price or not at all", which would drop prices (supply/demand).

   Gandel writes; "we are at the point where banks would be better off knocking down houses that reselling them", and adds that this shows there is "still something very wrong with the housing market." I find it very encouraging that banks are thinking outside the box to stir things up. What do you think?


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TAGS: #REO #foreclosure #shortsale #renttoown #repossessedhomes #mortgage

The Housing Market Vortex Postpones Retirement Plans

Hi Everyone,

   Hope you had a peaceful weekend. I spent the weekend ridding our home of any last remaining strains of the Strep virus so that our son may safely come back home and not have to deal with the joyous illness.

   So many times, we have heard the old "Gold Watch" story, about people who stay at a company for most of their life, retire with the company, and get a gold watch and a big send-off. As times have changed, and as that has become a story of bygone days, the lofty cushion that home equity has provided for people at the age of retirement is (or already has) gone the same route.

   In a recent story in USA Today ("Loss of home equity downsizes retirement for many"), author Sandra Block quoted an AARP survey that found "Nearly 32% of adults over age 50 say their home has declined substantially in value over the past three years". Block also adds a very important, yet strikingly true, comment from Jay Butler, an associate professor of real estate at the W.P. Carey School of Business at Arizona State University, who says that, "A lot of folks will postpone retirement."

   "Postpone Retirement?" Wow. It's amazing to even think about that after working hard your entire life !

   Looking even deeper into the ramifications, Block discusses health-care costs, which are quite expensive, as well as long-term expenses, which have been covered in retirement via the sale of a home with (substantial) home equity.

   The vortex and the fallout from the Housing Market is making retirement-age folks as well as younger homeowners re-evaluate their plans, and sadly, as Block says, it is "created a dilemma for seniors who are unable to live independently, or fear they will need help in the future". Some retirement communities (such as CCRCs - continuing care retirement communities), are emphasizing the "benefits of doubling up", says Block, which means that some centers are offering savings for sharing quites in the communities.

   The lesson we can learn from this is as follows: never take anything for granted, just as the "Gold Watch" story. Always make sure you have a contingency plan, and after that, make a contingency plan for your contingency plan...I am not kidding.

   What are your thoughts? Do you find this a frightening new reality of life?


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TAGS: #homeequity #retirement #AARP #CCRC #downsize

Short Sale Requirements For Sellers and Buyers

Hi Folks,

   My apologies for the late post, but I am recovering from a week filled with Strep throat and a high-fever. Thankfully, I have done a sizable amount of my homework upfront, and was able to get this out to you as quickly as humanly possible.

   A comprehensive discussion on the topic of short sales must straddle both sides of the transaction - both sellers and buyers. Today, we will look at some requirements of both sides of Short Sales.

   In a recent article by Greta Guest for the Detroit Free Press titled, "Shortsales, longwaits: Buyers and sellers find process frustrating", Guest says that what you need to qualify in terms of paperwork and forms can "vary by lender".

   The three things Guest says that a homeowner would need to qualify for a short sale (according to the Certified Distressed Property Expert website) are:

* To show Financial hardship: Prove that "there is a situation causing you to have trouble affording your mortgage."
* To show Monthly income shortfall: Prove to a lender that "you cannot afford, or soon will not be able to afford your mortgage."
* To show Insolvency: "The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage."

   Now, let's discuss what needs to be done for those buying a short-sale.

   Jan Green, a Realtor with RE/MAX Excalibur in Scottsdale, AZ, who has processed short sales both on the listing side and purchase side, says that she counsels the buyers about short sales first, and says, "make sure they are pre-qualified; and what their time frame for closing is; do they have a house to sell?".

   Joseph Lam, a Real Estate Broker and a short sale listing specialist with Keller Williams Realty in San Jose, CA, who has been guiding sellers and buyers to get the transaction thru (approved) by the short sale lender, says that "Like any buyer in today's market, the buyer needs to get pre-approved for a home loan first." Lam names one of the requirements as verification of the buyer's downpayment (bank statement, etc.).

   Robyn Love, an agent and an investor with IRCA, who has done short sales on her own and with another negotiation service, also concurs that the "Buyers need to have been qualified from a bank" along with a downpayment. Green, Lam, and Love all add that patience is golden. These deals can take time !

   On the patience factor, Love says that Short sales, "especially when first listed, take several months to be approved.", and when an offer comes, the bank, "may or may not take their offer if it is too low." Love also adds that sometimes "if the foreclosure is months away, the bank won't move fast.", but, "If it's around the corner, the approval is faster."

   Some tips for Buying a Short Sale:

   Love says that usually, the bank is looking to minimize their loss, so a "low ball offer with no low comps or repairs will most likely be rejected.". She also says that pictures of repairs and low comps "help the bank make a decision".

   Green advises that when purchasing a short sale, to "garner all information as to the likelihood of a short sale closing before even putting" a buyer in her car.

   Additionally, Green says that she also interviews the listing agent before showing a short sale, and she asks, "if he/she has collected financial data, hardship letter, has seller consulted an attorney and CPA, does the seller have a true hardship (they might just be "trying" a short sale). "...what is the listing agent's experience in short sales."

   In Summary, short sales are wild-cards for now, until real legislation actually sticks..and yes, "HAFA" (Home Affordable Foreclosure Alternatives), we are talking about you !!

   Comments? Questions? Venting? (Venting allowed within respectable limits)

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TAGS: #ShortSale #foreclosure #HAFA #hardship #insolvency #homeowner #prequalified #downpayment #comps

Amazing! A Real Estate Investing Social Game

Hi Everyone,
   Hope your week is going well !
   Well, it had to happen. It was a matter of time.

   A Golden Idea...yes, I'm talking about a Real Estate Investing Video Game !

   "Commonwealth Bank’s Investorville... Build a property portfolio without spending a cent". This is how the product was introduced in a Press Release from Commonwealth Bank in Australia.

   The program, Investorville", is billed as an "online simulation tool for budding property investors" as per the Press Release, and it operates in a "social game-like environment that uses gameplay to simulate scenarios", as per the story titled, "CommBank releases investment game", written by Laura Parker for GameSpot AU on ZDNet.com.

   Investorville is the product of both Commonwealth Bank and creative agency BMF, and incorporates market insights from RP Data. The game "mimics reality to provide people with real-time exposure to the property market, allowing them to make more informed property decisions.", per the Release.

   The game was created for both Existing Homeowners and also for those who already own an investment property. The online site is designed to be as, "fun and engaging as it is educational and informative.", says the Release, and it permits users to simulate "ongoing costs, without ever putting any of their own capital at risk".

   How does it work?

   Parker describes it as follows: Users start by making an online profile with personal relevant information on current budgets and existing real estate investments. Users can then search for investment properties in suburbs across Australia based on their target price; after a property is found, users will have a simulated 15-year period in which they must set rent, decide when to repair or renovate, and deal with events such as changes in interest rates, pay increases or decreases and bad tenants. Users can also choose to purchase more properties as the simulation advances, based on how well their investment is going.

   Mark Murray, General Manager Commonwealth Bank Consumer Marketing, explained "the rationale behind the development of Investorville" in the Release as follows: “Making the leap from owning your own property to buying an investment property can seem quite daunting to a lot of people. Investorville helps to break down common misconceptions and show the practicalities of property investment.", and adds that the, "really beneficial part of Investorville is that users can, in the true sense of the term, try before they buy", since, "The properties and data are reflective of the Australian property market and the types of properties available”. Aaron Michie, Interactive Concepts Director at BMF (the creators of Investorville), says the following regarding Investorville; "Investorville combines sophisticated economic modelling and real market data with a simple user-friendly gameplay to give people realism and simplicity.”

   The first real estate-oriented application that was developed by the bank was the "Commonwealth Bank Property Guide iPhone App", which was launched in 2010, and it uses "augmented reality to overlay data and tools onto the phone’s screen, providing property information on almost any premises the phone is pointed at"

   Does anyone out there think there is a version for the Wii or Xbox on the horizon? As silly as it may be for me to admit, I think it is a very good possibility.

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TAGS: #RealEstateInvesting #socialgame #propertyinvestor #Australianproperty #iPhoneApp

Rent to Own, The Good vs. The Ugly

Hi Folks,

   Welcome back to our first post of AUGUST !
   WOW...you can almost feel the snow that's on it's way in the next few months.

   9 years of living and breathing Rent to Own, and can I share this with you? I have never seen such publicity regarding Rent to Own as I have seen over the past few months ! Most of it is good and promising, but there are always vultures and bad apples out there looking to take advantage of buyers and/or sellers in desperate situations.

   Let us take a look at the "BAD" (and the "Ugly").

   In a recent Press Release on Media-newswire.com, titled, "A Georgia man was sentenced to nearly six years in prison for his role in a mortgage fraud conspiracy", as the story says, a person from Georgia was allegedly involved in a scam involving "dozens of properties and $7.5 million in loans", as per Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

   The scam went as follows, per the article: the individual, "informed the straw buyers/investors that after he purchased these properties in their names, he would enter into a “rent-to-own” agreement with one of the individuals from the community with poor credit in order to help that individual improve his/her credit score by renting the property for a year.", and additionally, he "represented to the straw buyers/investors that he would collect the rent from these individuals as tenants in the properties, pay the mortgages and taxes for the properties, and maintain the properties for the straw buyers/investors for approximately a year, at the end of which time he would sell the property to the tenant after his/her credit score improved and the property would be transferred out of the straw buyer’s/investor’s name, according to court documents."

   Unfortunately, he "did not assist any individuals with poor credit, nor did he enter into any “rent-to-own” agreements.", but instead, he "conspired with" loan officers, "to prepare and submit fraudulent mortgage loan applications to various mortgage lenders knowing that they contained false information with regard to the straw buyers/investors in order to secure mortgage loans on the 48 properties, according to court documents.". Ultimately, he was sentenced to 69 months in prison.

   Now, that is the only negative story on my radar the past few months, aside from a Foreclosure Scam we discussed in a previous Blog Post ("Foreclosure Scam Alert Based On Phony Deeds")

   For the most part, Rent to Own has been represented in the Media as an opportunity for buyers, sellers, as well as entire Housing Markets and Nations to rebuild and prosper. With that, let us examine these positive stories (the "GOOD").

   Rent to Own has always been an important strategy to pull buyers with less than perfect credit into the market, as well as sellers who are stuck in a home or multiple homes. A recent story in the Milwaukee Journal Sentinel titled, "Condo Living: Income Property", discussed a company in Milwaukee (Milwaukee Apartment Finders) that "offers its clients a rent-to-own option, which allows tenants who make an additional down payment when they sign the lease to apply a percentage of their rent to the purchase price of the condo unit.", which is a Rent to Own agreement. The story adds that at the end of the lease, "which is typically 12 months, tenants can opt to buy the unit or forfeit the down payment to the condo owner."

   Additionally, in a story by Luis Hernandez for the Visalia Times ("47-unit housing project OK'd by Tulare Planning Commission"), the story discusses the approval by the "Tulare Planning Commission" of a design for Aspen Court, "a 47-unit affordable-housing project in east Tulare — the first such development to receive city approval in several years." In the story, Consultant Tim Sciacqua (representing Kaweah Management), is quoted as saying that "Tule Vista, a rent-to-own single family housing project on E Street north of Bardsley Avenue, has 10 units ready to be rented out. The second project, Trails West at Cross Avenue and West Street, is about 10 months away from completion. Framing for the houses is up."

   The good stretches outside of our borders, as well.

   In the United Arab Emirates (UAE), two recent stories discussed Rent to Own in the Oil-rich nation. "The introduction of rent-to-own schemes may boost demand" for projects in Abu Dhabi, Jones Lang LaSalle said in a report released this week, noting that it expected other developers to follow the Sorouh model". This quote comes from the story written for the National.ae, titled, "1000 homes to boost sluggish sales market", which offers hope in boosting the market in that country. In a second story for the UAE, written by Parag Deulgaonkar for Emirates247.com ("Rents in older Abu Dhabi buildings fall 15% in Q2. Second half to see higher handover; prices not to recover before 2012"), the story says that, "The introduction of rent-to-own schemes may boost demand, but only a limited number of developers offering this option.". Once again, a beacon of hope for increasing demand and stoking the market.

   Buying a Home, Selling a Home, Renting a Home, OR Renting-to-Own a Home. These all require careful review and due-diligence before signing on the dotted line. Do not rush your decision, regardless of how dire your situation, as you could find yourself worse-off by ten-fold. Consult your attorney, title company, etc. These are major life decisions...

   Looking for your comments on this topic......starting now...


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

TAGS: #renttoown #titlecompany #buyinghome #sellinghome #downpayment #UAE #mortgagefraud

Lengthy Short Sale Process a Painful Reality

Hi Folks,
   How is everyone today?

   The National Association of Realtors (NAR) just released their "Pending Home Sales Index" (PHSI) for June, which reflects "When the contract has been signed", but, "the transaction has not closed". The figures came in at 2.4% above May, and 19.8% above June 2010, with the biggest increases from May to June were in the South and the West,

   Now, if you were not aware, the PHSI is a "forward-looking indicator", which assumes about 2 months between the contract signing and the closing. The question this raises in my mind is the following; what about the lead time for short sales from contract to closing? These have been trending longer, and according to a recent story, "Short sales are among the most arduous real estate transactions, often taking six months or more to close -- if they get done at all".

   In the story written by Greta Guest for the Detroit Free Press, and titled, "Shortsales, longwaits: Buyers and sellers find process frustrating", Guest cites an agent in Oxford, Michigan, who worked on a short sale that stretched eight months. Michelle Chappell, an agent with Real Living John Burt Realty in Oxford, said that after the process which she called "heart-wrenching" for her buyers, she said, "This was the last one I sold. I said no more. I won't do it.". Chappell reflects a growing number of Realtors that are avoiding short sales because they can be so difficult, writes Guest (she aptly uses the term, "Short sale shy")

   Why such a long process?

   "Homes with more than one mortgage and mortgage insurance tend to take the longest", said Ellen Mahoney, president of Complete Title Services' loss mitigation division in Birmingham, Mich, writes Guest. She adds that a "growing reason short sale deals fall through or take longer" is because of mortgage insurance" purchased after the homeowner closes on the deal and the loan is later sold to other lenders and investors.".

   Other factors also contribute to the lengthy process, but ultimately, as Guest writes, "These kinds of delays mean buyers walk away because of the time and frustration involved."

   What do you think would trim down the time? Perhaps a standardized process (like the one the Government has tried to implement without success to this point, yet)?

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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: #shortsales #lossmitigation #mortgageinsurance #realtor

Prices and Sales were Virtually "Boring"

Hi Folks,

   Welcome back.

   The figures just rolled out for the S-P/Case-Shiller Home Prices, which showed "a second consecutive month of increase in prices for the 10- and 20-City Composites" through May, and on an annual basis, the release stated that "Washington DC was the only MSA with a positive rate of change, up 1.3%.", and that "Minneapolis fared the worst posting a double-digit decline of 11.7%".

   Additionally, the New Residential Sales figures for June were released, and these pegged the market at 1% below May, but 1.6% above June 2010.

   Overall, the numbers didn't express anything more than perhaps a seasonal increase in the numbers and pricing. The Pending Home Sales will be released this Thursday, so hopefully, they will be a little more exciting than these figures.

Stay Tuned !


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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: #homeprices #residentialsales #Washington #Minneapolis

Real Estate Is Still Our Sweetheart

Hi Folks,

   Let me start out by saying this: I am done with summer. The heat, the humidity, the sweat, and the drivers. The drivers? Yes, the people driving on the road with their windows open when the temps are 100 or above. Why? To save a negligible amount of money on gas? The problem with driving with your windows open with unbearable Dew Points is that people drive erratically. The humidity and the heat fry their brains, and they are all over the road. It's along the same lines as cell phones while driving, but it's just a different form of distraction (heat exhaustion), and wiping sweat off constantly. My rant is as follows: New laws for Driving While Sweating (DWS) - when temps are above 85 degrees, your windows must be closed. Tickets from the Police, unless you can prove your A/C doesn't work. OK, I had to share that.

   Now, let's discuss our topic; "Real Estate Is Still Our Sweetheart".

   For those of you aware of the website, Zillow.com, you might have heard that they just released an Initial Public Offering (IPO) on the stock market last week. In a story from the Associated Press that was featured on Boston.com, Zillow was described as a company founded in 2004, and "provides online listings for more than 100 million homes that are either for sale or for rent."

   The interesting thing in this story ("Real estate site Zillow jumps on IPO"), is that Zillow "has never made a profit". Adding to the story, it says that "Americans are buying homes at the weakest pace in 14 years".

   However, "Zillow’s shares tripled in their trading debut on the Nasdaq stock market.", the story says, and summarizes the event as follows: "The weak housing market did not hurt Zillow’s initial public offering.", adding that, "Investors set aside housing market doldrums and rushed to grab shares".

   So why is it our sweetheart? I'm not referring to myself, HomeRun Homes, or anyone specifically. I am referring to the collective market. Regardless of what has happened with Real Estate and the underwater mortgages and foreclosures, people are still "Bullish" on Real Estate. Perhaps it is buying on Emotion vs. Fundamentals? Either way, it is good news for Real estate and for our country.

   I know, as for myself, it makes me wonder if HomeRun Homes should go Public one day. For now, let us just focus on doing what we've been doing for the past 9 years.

   What do you think? Was this Real Estate IPO explosion just a wild aberration?

PSSSST...
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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: #realestate #zillow #IPO #homesforsale #homesforrent

Contract Cancellations A Factor in Home Sales Drop

Hi Folks,

   I'm honored to have you here with me today and always.

   This past week, the National Association of Realtors®, or NAR, released their June figures for Existing-Home Sales, which showed a decrease.

Let's take a quick look at the breakdown and then we'll discuss the factors involved:
  * From June 2010 - June 2011:
       The Northeast dropped 17% and the Midwest dropped 14%
  * Single-family home sales were stable, but the condo sector weakened.

Some other important details, per the NAR:
  * First-time buyers purchased 31 percent of homes in June (At 36% in May, and 43% in June 2010).
  * Investors accounted for 19 percent of purchase activity in June (Unchanged from May, and 13% in June 2010).

   Prices were up slightly, but Lawrence Yun, NAR chief economist, called it an "uneven recovery". NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., went further, and added that home sales should be higher, saying, "With record high housing affordability conditions thus far in 2011, we’d normally expect to see stronger home sales”.

   What was a major factor?

   The NAR Press Release said that "Contract cancellations spiked unexpectedly", and according to Victor Benoun, President of The Mortgage Source, Inc., cancellations were up 16%., which is a "telling number".

Benoun explained that there are several factors for the spike in cancellations:
  * First, says Benoun, to some extent, "buyers remorse may set in"
     He says this could be related to costly repairs discovered during an inspection.
  * Another factor is financing.
     Benoun says that lenders have made borrowing more difficult
  * Benoun also points to Appraisals.
     He says "If the value comes in lower than sales price", it is another cause.
  * Finally, he points to employment (losing a job while applying for a home loan)

   However, as with all Economic numbers, they vary by location.

   "The national numbers show how local real estate truly is.", says Ken Anderson, President and Broker of Coldwell Banker Evergreen Olympic Realty. Anderson says that they are, "not seeing the higher cancellation rates reported in other parts of the country", and that buyers "are cancelling far fewer contracts than a year ago, when the stimulus created too much urgency".

   In spite of the market, there is hope. Anderson says, "Our home sales increased 11% from May to June. Buyers are recognizing the opportunities and are getting back into the market.". Benoun says that there is a "silver lining for those who have the desire and ability to purchase a home.", and adds that prices "have not been this low in a decade and mortgage rates are hovering at 30 year lows.

   Where do you think the market is headed? Since the jump in cancellations was unexpected, what other factors might also happen unexpectedly?


PSSSST...
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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: #ContractCancellations #HomeSales #ExistingHomeSales #NAR #recovery #housing

It's Our Birthday ! HomeRun Homes Celebrates 9 Years of Rent to Own Homes

Hi Folks,
   I hope your week has been kind to you, or at least so far.

   OK, I'm happy and I want to share this with you...
   It's Our Birthday !

   We are celebrating 9 years of Rent to Own Homes this month.

   We are about to break the news, but here is your exclusive look at our Press Release hitting the wires this week:

For Immediate Release:
HomeRun Homes
(631) 678-5298
(631) 574-2420
http://www.lease2buy.com

Rent to Own Homes Mega-Site Celebrates Their 9th Anniversary

Ronkonkoma, New York, July 20, 2011 - HomeRun Homes (www.Lease2Buy.com) is proudly celebrating their 9th anniversary, and is announcing substantial strides toward their goal of bringing the Rent to Own Option into the mainstream of Real Estate Transactions.

Bringing Rent to Own Into The Mainstream

It has been a very busy and eventful year for HomeRun Homes. Over the course of the past year, the company has achieved the Government-mandated PCI DSS Web Security Compliance Certification, they were accepted into the prestigious Building Trades Association (BTA), and they announced a Strategic Alliance with business documents mega-site, U.S. Legal Forms. Additionally, the company started donating services to the Wounded Warrior Homes Non-Profit Organization.

Over the first part of this year, the company purchased the HomeRunHomes.com Domain Name to co-exist with their Lease2Buy.com Domain Name. The CEO & Founder of the company, Robert Eisenstein, began offering Public Speaking Appearances, and was quoted as summarizing the previous year as, "gigantic leaps forward in making Rent to Own an option that should always be on the table for both Buyers and Sellers".

Bigger Steps In the Coming Year

Eisenstein and HomeRun Homes are mapping out another powerful year, with some very helpful new projects on their agenda. Some of these projects include; making a mobile-version of the website (for Androids, IPhones, IPads, etc), adding additional payment options for customer convenience, creating a video tutorial series for the website, and creating a page devoted to the listings (Ads) RSS feeds from the website.

The company is also looking to add more countries to cover multiple different emerging markets (South Africa, China, Russia), and they hope to make further alliances with non-profit organizations to assist them in meeting their goals. Eisenstein forecasts that with the further integration of Rent to Own as an option to buy or sell a home, "it could even stoke the fires of recovery in some languishing regional housing markets".

For additional information on the topic, "Rent to Own Homes Mega-Site Celebrates Their 9th Anniversary", please visit http://www.Lease2Buy.com

ABOUT HOMERUN HOMES

Founded in 2002, HomeRun Homes is a Centralized Marketplace which helps people Buy or Sell a Rent to Own Home, a Commercial Property, or to offer Home Services nationwide and globally to the thriving Rent to Own market

- END -

   Summary: 9 years in the books. Lots of people in their new homes as a result of our website, and a lot of people have been able to crawl out from under their hefty mortgages as a result of our website. That's what keeps me going !

   I would love to hear your thoughts, comments, and opinions!


PSSSST...
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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: #renttoown #RealEstate #HousingMarkets #homes #BuildingTrades #PCI #mobile #Android #Iphone #RSS #tutorial #speaking