HomeRun Homes Rent to Own Homes Blog

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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

July 31, 2011

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 !
Regards,
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

July 28, 2011

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

July 26, 2011

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

July 24, 2011

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?

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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

July 21, 2011

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?


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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

July 19, 2011

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!


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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

July 17, 2011

More Real Estate Bubble Talk

Hi Folks,

   Hope you had a nice weekend, and I'm honored to have you back with me!

   Last week, we took a look at Canada and where it stands in terms of a Housing Bubble (Canadian Housing Bubble Or An Exception To The Rule) vs. our busted bubble. Today, let's expand our reach and look at a few countries around the globe to examine whether their Housing Bubble has burst yet.

   Any conversation about Real Estate and Housing would not be complete without discussing China. In a recent Investopedia story that was aptly named, "China's Real Estate Bubble", Arthur Pinkasovitch looked at the average home prices in 2007, which, "slipped from $221,900 to $219,000" and then had a "massive 21% drop over the next two years." In contract, the author said that Chinese real estate "maintained its value through the Great Recession as property values tripled between 2004 and 2009." However, he says that "major cracks are beginning to surface within the Chinese real estate market as speculation about the collapse of the bubble has started to emerge.", and points to a drop from "stable" to "negative" by Standard & Poor's ("in anticipation of a "sharp correction" for real estate prices. Analysts are forecasting that home prices will fall by 10% within the next year.")

   Pinkasovitch points to oversupply of residential and commercial real estate in the country, and says that in order to maintain GDP growth, "the Chinese government has continued to over invest in large infrastructure projects focused on real estate development. At an average wage of $7,400 people are neither able to purchase the basic $100,000 apartments units nor invest into small businesses around the new developments.", and names some cities with residential apartment occupancy rates of only 30%. On the Commercial Real Estate end, he discusses the "Great Mall of China" which, "contains 9.6 million square feet of floor space", but, "less than a dozen active shops remain in the mall".

   Additionally, the Author points to the following fact; "According to The Atlantic, residential housing investments contributes to 6% of GDP, the same level as U.S. real estate at the peak of the housing bubble". He also says that the current prices are too high, and that "property prices in major metropolitan areas have risen to unsustainable levels".

   Robert Rubin, Editor of Safe Money Products, corroborates this, and says that China is already full of "empty cities, malls, and airports. That’s why China may not be the place for long-term safe money, despite its boom.". Rubin says that Local governments around China formed “Local Government Funding Vehicles” (to lend money to developers), but says that the finances of these "unofficial banks" are off-record, and says that the government of China "recently estimated 26% of these loans are bad, and 50% will be repaid only with difficulty.". Rubin also says that the real estate bubble "may pop when its government raises interest rates to control inflation."

   Putting the China "Bubble" on hold for a moment, let's take a look at a few other countries.

   In the Middle East, and specifically in Saudi Arabia, "A leading Saudi architect has warned that the Kingdom’s ambitious housing programmes could be scuppered by a looming real-estate bubble", says an article in Construction Week, titled, "Kingdom faces real-estate bubble, says Saudi Diyar". "The real-estate sector is ridiculously overpriced; it is a bubble", says Saudi Diyar principal Hisham Malaika on an Arab News interview. Additionally, says the Diyar from the oil rich nation that seems to build endlessly, "The cost of real estate is over inflated, and it is prohibitive for real-estate developers to finance projects for low- and medium-income families".

   In Europe, the Bulgarian Real Estate Market will return to an uptrend imminently, says an article titled, "Limited Return' of Bulgarian Real Estate Market 'On the Way'" and the "Bulgaria Real Estate Report Q3 2011" of Business Monitor International (BMI). The report cites data that an "average of 1 550 property auctions took place a month in January and February 2011, compared with a monthly average of 750 in 2010."

   The story sums up the Bulgarian market and says that the market "has a long way to go to recover before BMI sees anything like the growth of the previous decade", and that "a fundamental improvement in Bulgaria's economy has yet to be seen that would prompt BMI to upgrade the report forecasts and therefore the 2011 real GDP growth expectation is left virtually unchanged".

   Although the countries discussed here appear to be at differing stages of Bubbles and recoveries, we live in a Global Economy, which is not a cliché. As Rubin points out regarding the Chinese market; "The great threat isn’t to China, but to the commodity producers around the world that feed Chinese construction. China is the largest commodity consumer in the world. If Chinese construction wanes, demand for commodities will plunge. Commodities, stocks of commodity producers, and currencies of commodity producing nations will all be hit hard." The ripple effects of each country ultimately effects all of us, either directly or indirectly.

   What are your thoughts on this story?


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: #Canada #ChinaRealEstate #HousingBubble #realestateprices #commercialrealestate #MiddleEast #SaudiArabia #Europe #Bulgaria #GDP

July 14, 2011

Rent To Own In Hong Kong?

Morning Folks,

   I'd like to wish everyone a Happy Half Day. "Half Day", you ask? Yes, since I admit that I am a "hater of Summer", from June 1 - the end of August is 92 days. Half way is July 16th (Saturday)...thus, "Happy Half Day".

   In previous discussions, we spoke about the Global spread of "Rent to Own" as am option to buy or sell a home. Rent to Own is gaining further popularity in the USA, Canada, Australia, the Philippines, and multiple different countries. As we spoke about in our post titled, "It's Still Rent to Own to Me", we touched on the different names that are used when discussing Rent to Own (Lease Option, Option to Buy, etc), but they are all roughly equivalent to the same arrangement.

   Now, let's add Hong Kong to the mix. In a recent story by Bonnie Chen in The Standard in Hong Kong ("Greenbelt conversion on cards in drive to boost flats"), Chen discusses a recent initiative to develop more residential space across the country. Part of this initiative involves a list of potential sites that needs to be submitted, "to the chief executive's office by September", "according to a source."

   The interesting fact here, is that the Chief Executive Donald Tsang Yam-kuen, in a speech last year, announced the "My Home Purchase Plan" (also known as rent-to-own), with the, "first 5,000 units to be completed by the Housing Society in 2013. ". This is just one piece of Rent to Own in that part of the world. China is an incredibly huge market, and one that we look forward to becoming an integral part of in the upcoming months.

   Regarding Rent to Own in China and the China Housing Market, we will be taking a closer look at these in a Blog Post in the next few weeks, so keep an eye on our Blog.

What are your thoughts on China and Rent to Own?
Happy Half Day !!


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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 #hongkong #china #australia #leaseoption

July 12, 2011

Canadian Housing Bubble Or An Exception To The Rule

Hi Folks,

   Happy Wednesday and glad to have you back.

   We live in a Global Economy that literally synchronizes over time, and the Economy of each country has an effect on the others. As a subset of the Economy of any given country, there exists the Housing/Real Estate Market. Today, I'd like to take a look at Canada, our Neighbors to the North. In future editions, we will look at other Countries as well.

   "Looking at Canada in general, I don't see any bubbles", says Colette Gerber, a Division Director for the Real Estate Board of Greater Vancouver. "With respect to Vancouver", says Gerber, "real estate in this city is a hugely hot commodity." She admits that many people believe Vancouver "is a bubble waiting to pop", but she disagrees because, "Vancouver is geographically constrained with mountains and water preventing the city from being able to spread out. Vancouver continually ranks as one of the most desirable and most livable cities in the world. With a finite amount of land available and such a high demand to live in Vancouver, prices in this city will always rise."


   In Ontario (includes the Capital of Ottawa and the largest city of Toronto), Gerber says that, "housing will always be in demand because the majority of corporate offices are headquartered in that province."

   In terms of the province of Alberta, which encompasses the major cities of Calgary and Edmonton, Gerber says the major cities in Alberta "have seen an increase in activity as more jobs are made available in the province's main industry, the oil fields.", however, she points out that this "isn't a bubble", but it is "normal economic activity."

   In a recent article in the Calgary Herald, titled, "Calgary housing prices expected to rise", by Mario Toneguzzi, he author cites a housing price survey (The Royal LePage House Price Survey and Market Survey Forecast) that says "Calgary's residential real estate market has experienced a "modest" year-over-year decline but prices are expected to rise in the second half of the year, and adds from this report that, "detached bungalows have witnessed the largest year-over-year price decreases in the resale market", followed by standard two storey homes, and then standard condominiums.

   In a quote from the story in the Calgary Herald, Ted Zaharko, broker and owner of Royal LePage Foothills, stated that "Real estate activity in the Calgary market is down slightly year-over-year (and) at the moment there is not a sense of urgency to purchase", but, "With low interest rates, a strong economy and a healthy energy sector, Calgary's real estate market should start to pick up in the latter half of the year". Further, as Toneguzzi write, "According to Royal LePage, the average year-over-year house price in Calgary is forecast to climb 3.8 per cent in 2011, while sales are expected to decrease two per cent." The President of CREB, Sano Stante, said in the same article that, "Improved job prospects, combined with an increase in the number of people moving to Calgary, will give lift to our housing market for the remainder of this year and into the next."

   So, what can we summarize about the Canadian Housing "Bubble" (or lack thereof)?

   "Definitely no bubble for Canada as a whole, just regular economic cycles of supply and demand", says Gerber. Additionally, per Kelvin Mangaroo, President of RateSupermarket.ca; "The Canadian Housing Market did not take as much of a hit as the US did", and adds that, "house prices in Canada are now back up to pre-recession levels after only two years.".

   Mangaroo cautions that with Canadians taking on more debt and interest rates still at record low levels, "when rates do increase (which they ultimately will) many homeowners will feel the pinch and the Canadian Housing Market is bound to dip."

   Are you a Canadian Homeowner, Canadian Real Estate Investor, Agent, or a Canadian Real Estate professional? We'd love to hear your thoughts on the topic.

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HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #CanadaRealEstate #HousingBubble #Vancouver #Ontario #Toronto #Alberta #Calgary #Edmonton

July 10, 2011

Foreclosure Scam Alert Based On Phony Deeds

Hi Folks,

   I love to bring you good news, but since that is not always possible, I at least want to bring you informative and helpful news. Today's topic skews in that direction, for sure !

   In a Story from the Associated Press that appeared on TheRepublic.com, titled, "NC officials say fake property claims flooding in on real estate caught in foreclosure crisis", an incredibly deceptive event has been occurring on a very consistent basis. Why do you need to be aware if you do not live in North Carolina? Read on...

   This red flag was raised by officials at Charlotte-area courthouses, as they have been seeing an "epidemic of frivolous paperwork filed by people claiming the right to seize foreclosed property.", with the bogus deeds being filed by people claiming to be part of a temple from a small religious sect.

   In one specific case, as reported by the Mecklenburg Times, two guys came to a home during a showing, showed a deed and said the Temple now owned the home, and per Detective Brian Keziah of the Union County Sheriff's Department, "They took over the house."

   Mecklenburg County's register of deeds, J. David Granberry, said at least 200 deeds and other documents filed in his office (in the name of the Temple) are "outright fraud.", and cautions that many times, the documents appear official and legitimate. Granberry and other officials added that as more homes go into foreclosure/vacated status, there is more opportunity for this type of fraud.

   Why did we tell you to read on if you do not live in the affected area? The story mentions the following: "Real estate agents in Virginia and police in California warn of similar incidents there.

   So now what?

   Granberry suggests that state law be changed to make it illegal to file worthless documents (including deeds which record the transfer of real estate ownership), and says, "We will still have to file (the deed), but they could be prosecuted".

   A small glimmer of hope in all of this is that the story says the police "aren't powerless", and the two men mentioned about that barged in on the showing were arrested. According to the article, one was charged with "breaking and entering, first-degree trespass, obtaining property by false pretenses and possession of stolen goods", and the other was charged with "breaking and entering and taking possession of a house without consent."

   Do you know of any other Scams that are worth mentioning to us, your fellow readers?

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TAGS: #ForeclosureScam #PhonyDeeds #Charlotte #NorthCarolina #foreclosedproperty

July 7, 2011

Mortgage Anyone? To Dream The Impossible Dream?

Hi Everyone,

   Welcome to another Sizzling Summer Friday!

   Unless you've been living under a rock for the past few years (or you just don't follow the Real Estate Lending market, but if you didn't, I guess you wouldn't be reading this), you know that mortgages and lending has been tight and more stringent as opposed to the pre-housing bubble days.

   In a recent CNN Money article from Les Christie ("Secrets to getting a mortgage with so-so credit"), Christie concurs and says that, "Getting a mortgage can be tough these days -- even people with near-perfect credit have been rejected for loans". Christie points to a conference in which Fed Chairman Ben Bernanke said lending standards for mortgages have tightened so considerably that "the bottom third of people who might have qualified for a prime mortgage in terms of, say, FICO scores a few years ago -- cannot qualify today."

   Is there money to lend? Christie quotes the acting commissioner for the U.S. Department of Housing and Urban Development (HUD), Bob Ryan, who said that mortgage money "is flowing, it's stable, it's tightened from the boom years, but it's there.". "The belief is that you can't get a mortgage at all -- but you can," says Keith Gumbinger, of the mortgage information provider HSH Associates.".

   Christie writes about a loan officer who had a client with a 700 FICO a couple million dollars in assets, and he wanted to refinance. He was rejected! Apparently, his report showed an investment property he could not (housing bust), and had to do a short sale, and that blemish "resulted in an automatic rejection of his refinance application."

   So, are things really that bad?

   "Depends on who you ask", says Brian Willingham, a Loan Officer with FitzGerald Financial Group.

   "Lending has gotten a bad rap lately", adds Christopher A. Potter, a Loan Officer at GuardHill Financial.
  
   "Basically, these days you actually have to be able to afford what you want to buy (and disclose your true income on your tax returns).", says Willingham. Potter adds that now banks, "want to see that you can actually afford it. This is just common sense and will benefit all in the long run.". He also said that it's, "not that difficult assuming that you qualify.", and that people are so used to easy credit standards ("It used to be that all you needed was a pulse to get a loan.", adds Potter).

   Nicole Tucker, a Licensed Texas Real Estate Consultant, says that even though the requirements are tighter that several years ago, "it is not difficult to get a mortgage if a borrower has verifiable and steady employment and decent credit. You do not have to have stellar credit." Willingham continues this point, and agrees that for people with "sufficient, stable income it's a lot of paperwork but it's not "hard" to get a loan.", but adds that if your credit is "poor" and "you don't have a stable work history and stable income, it could be pretty difficult."

   So, on that note - less-than-stellar credit - is FHA still an option?

   In the article from Christie, he quotes Gumbinger as saying that "The FHA is just about as free and easy as it was in the go-go days,". Christie says that the standards are, "flexible and aimed at making mortgage borrowing easier, especially for working-class Americans.". Potter agrees, and says that the "FHA is extremely flexible with credit issues and there are plenty of lenders with "common sense underwriting". Melanie Roussell, a spokeswoman for the FHA, explained that "the agency is willing to overlook a blemish on a credit report -- even a big one -- if other factors are favorable", as written by Christie.

   Tips? Pointers?

   Paul McFadden of The Legacy Group, tells us that the most important thing is "to have all your documentation in order (income and asset information) along with a flexible attitude if letters of explanation need to be written." He summarizes the process as follows; "A borrower needs to work with a great team that would include a loan officer and possibly a realtor to make sure they are approved and their loan closes."

   Have you tried applying for a mortgage? Before or After the Housing Bubble? How was your experience?

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TAGS: #mortgage #loan #credit #refinance #FHA #FICO #HUD #LoanOfficer #RealEstate

July 5, 2011

Homeowners Unite! How Can We All Save Money?

Hi Folks,

   Happy Mid-Week to you.

   If you're a homeowner, I don't need to tell you how expensive it can be! Every time you turn around there is another expense coming at you, whether it is a break-fix or plain old fashioned preventative maintenance. It is expensive. Recently, Beth Braverman wrote an article for Money Magazine (on CNN Money), titled, "3 ways to save on home costs", which aimed at sketching some broad strokes for homeowners to take.

   For the purpose of our story, we are going to take her 3 sub-topics out of order, and we'll leave the biggest one for last.

   In the article, Braverman suggests to, "Trim the cost of borrowing", and she discusses the extremely low mortgage rates as an example. She suggests that you refinance at the lower rates, but to request a, "good-faith estimate" before you apply, to permit you to lower the closing costs. Jonathan Steele, a RN in Pennsylvania, suggests that you, "Get a 30 year loan and pay off your house in 15 or less", and cautions that you should, "Make sure the loan allows early pay off with out penalty.".

   The second sub-topic that Braverman discusses is that you should "Get a deal on furniture", and shares some tips from Furniture industry author Kimberly Causey, as follows: "When sales slow in the summer, many mom-and-pop shops will make deals to move inventory, says Causey. Ask for 20% off, and don't settle for less than 10%. Gently used floor models can go for 25% off."

   Now, as I mentioned in the beginning, the 3rd sub-topic has the most potential and ways in which homeowners can save, and Braverman refers to this one as, "Negotiate on repairs and upkeep", and from her angle, she says that contractors are, "still facing a slumping real estate market", and "will strike a deal to get your business."

   When posing the question of how homeowners can save costs, a majority of the replies were related to this specific sub-topic. Interestingly, one of the most popular suggestions was in favor of using a "programmable thermostat". Jonathan Steele says that he has had his for over 18 years, and that he owns two houses, and the tenants he has who "refuse" to use these have, "twice the heating bill we have by simply automating the heat turn down when we are gone in the day and asleep at night.". Dianne Martz, co-founder and principal of Sustainable Life Solutions LLC, says that installing and using a programmable thermostat, "can reduce your heating and cooling bill by 10%.", and says that if you already have one, to be sure it's programmed to "turn itself down or off when you're sleeping or at work or school.".

   Timothy G. Wiedman, D.B.A. Division of Economics and Business at Doane College in Crete, Nebraska, also calls the programmable thermostat, "The most cost-effective thing" that he ever did, and adds the following summary: "Believe it or not, that thermostat paid for itself in two months; and over its life, it literally saved thousands of dollars on our winter gas bills."

   A few other tips that were provided to us were regarding the hygienic quest we call, "washing our clothes". Steele says that he bought a front loading washer, which was, "twice the cost of a traditional washing machine". He says that the savings "were in the water", and adds that "when you pay for water coming in, you may also pay for the quantity of sewage going out in some municipality. So saving on the water used can be a double savings." An additional tip comes from Pablo Solomon, an Artist and Designer, who suggests to, "Put up a clothesline", since it is "really" inexpensive, and says that if your neighborhood prohibits clotheslines, "fight the board and get the rule changed."

   So what does it all boil down to?

   Mandy Williams, Author of, "What I Learned About Life When My Husband Got Fired!", suggests, "Thinking Before Spending", which she admits is, "A very basic concept", but says that we are all "guilty of "mindless" purchases that we do without thinking. And definitely without considering the total amount spent over time". She suggests a very simple tip; to , such as "merely to write down everything you spend money on for a week.", using what she calls "Green Sheets". Williams says, "You Are Never to Old or Young to Budget", which she admits is an "Obvious concept", but, "rarely remembered when at the time money is being spent."

   I hope these tips have been helpful. Can you also provide some helpful tips to your fellow readers here?

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HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #homeowners #mortgage #refinance #thermostat

July 3, 2011

Independence Day Makes Me Thankful

Hello Folks,

   As you are well aware, today is Independence Day. What does it mean? It symbolizes our freedom and independence as a sovereign nation. It is a day that gave birth to America, the friend of nations, the protector of nations, and unfortunately, those two defining factors of our great country also show a weakness to the remainder of the world.

   Why is that? Being a friend, a protector, and a helper to other nations as opposed to being an invader or an internal oppressor of our own people, shows to the civilized world that we are a great country with great intentions and actions, but to the savage parts of the world, this differs from the way they run their countries, so it makes us look "weak" in their eyes.

   How do I feel about that? Let these savage ones continue to look at us through their sadly distorted eyes, and focus on what we have been doing for 230+ years; providing a wonderful land of opportunity where each person writes the script of their own lives, and does not have that script thrust upon them with Gulags and mysterious prisons and death penalties if you look at someone the wrong way (vs. actually deserving capital punishment for pre-meditated murder!).

   My family originated in Romania, and my Grandparents came to this country, learned the language and spoke perfect English and assimilated into society, built families, and achieved their very own piece of the American dream...an important lesson for the immigrants of today. I thank God every day that I was born in the USA, and I am proud to be an American, not only today, but every single day of my life !!

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

June 30, 2011

Was The Increase In Pending Homes Sales A Surprise?

Hi Folks,

   Glad we could all get together again this Friday...the first day of July !

   Well, the figures were just released for Pending Homes Sales, "A forward-looking indicator based on contract signings" (per the National Association of Realtors®, or NAR), and per the NAR, "Pending home sales rose strongly in May with all regions experiencing gains from a year ago, pointing to higher housing activity in the second half of the year". To be exact, the numbers rose 8.2% from April, and 13.4% from May 2010. Was this a surprise, or was it expected...and what does it really mean?

   "Of course these figures were expected", says Galen Ward, CEO of Estately.com. Jim Kinney, a Vice President of Luxury Home Sales with Baird Warner says that the uptick in the pending numbers, "was no surprise to us as this is the prime seasonality to see an upturn--no upturn in May would be indeed very glum.". "Mays sales numbers are only representative of the "national market" (if there is such a thing) and we all now that real estate is local", per Greg Cook, a First Time Home Buyer Specialist".

   Ward says that the "The First-Time Homebuyer Credit" expired on April 30 of last year, so, "most buyers scrambled to get their offers in prior to May 1.", and Cook says that until we, "move beyond the inflated sales numbers of last years first time home buyer tax credit, we cant really tell if were better or worse year-over-year.", and adds that, "Once we move beyond those numbers (after June) the comparisons become more relevant and we might have a clearer picture of the health of our market."

   Ward extends this and adds the following comment; "Saying this year-over-year comparison is a signal of a rebounding market is akin to rewarding yourself for weighing less this May than you did last year when you were nine months pregnant."

   What does this mean? Where do we go from here?

   Lawrence Yun, NAR chief economist, said, “If banks would simply return to normal sound underwriting standards and begin lending to more creditworthy borrowers, we’d get a much faster recovery in the housing sector.”, and cautioned that job creation is critical to a solid recovery, since, "The job market has sputtered recently, and because variations in local job creation impact housing demand, markets will recover unevenly around the country".

   What are your thoughts? Is a key piece of the puzzle beyond job creation missing?

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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: #PendingHomesSales #Realtor #NAR #jobmarket #realestate

June 28, 2011

From Foreclosure To Eviction...Why So Long?

Hi Everyone,

   Welcome back!

   A major trend that is (sadly) happening all around us is the foreclosure process, which entails a long and drawn-out process which usually ends in the eviction of the current homeowners...or not!

   Today, let's focus on the "or not!", and see what is really going on out there.

   A recent CNN story written by Les Christie, titled, "Squatter Nation: 5 years with no mortgage payment", examined this in detail, and said that Nationwide, "it takes an average of 565 days to foreclose on borrowers in default from their first missed payments to the final auction. In New York, the average is 800 days". One such example of "Squatters", as they are referred to, is a Florida couple, that, "have not made a mortgage payment in nearly five years -- but they continue to live in their five-bedroom West Palm Beach, Fla. home.". I find that absolutely incredible !

   As incredible as it may sound, this is not a new trend, says Patrick Hohman of Louisville, KY, who says that when his dad was a little boy, "they lived in their foreclosed home from 1933 to 1937. Due to the volume of foreclosures in the 1930s, they stayed in the home for 4 years before being put on the street."

   Lesley A. Hoenig, a bankruptcy attorney practicing in Michigan, says that "the foreclosure process can take an insanely long time in some cases, especially if the owner has filed chapter 13 to catch up.", and that, "Ultimately, the lender may eventually kick the person out (Likely if the person isn't making any effort to get the loan modified or catch up)", and adds that, "until the number of foreclosures die down, people are going to be able to spend up to two or three years in their house before getting kicked out".

   Hoenig thinks that the main reason people manage to stay in their house is, "because lenders aren't really itching to have vacant houses in their inventory.". Marc S Hyman JD, a Licensed Real Estate Agent in Santa Barbara CA, says basically the same thing; "The last thing a bank wants to do in this market is actually take possession of a home so banks are letting the foreclosure process drag out as much as possible.", he says, adding, "During a normal market banks foreclose quickly in order to get their "investment" back as soon as possible and put it back to work."

   The reason Hyman provides is that in this market, "a bank does not want to own a home that it will need to maintain and insure. The bank will become responsible if anyone gets hurt while on the property. Furthermore a bank will not be able to sell the house quickly. Banks are looking at any solution that does not mean taking back the house.".

   Hyman does say, though, that once it does complete the foreclosure, "it does quickly evict tenants in order to avoid the legal obligations of being a landlord eg timely repairs, insurance coverage etc.". Referring back to the Christie piece from CNN, one such "Squatter" says that, "Living in this foreclosure limbo is "Hell,"", and adds, "I feel like I'm locked in a box. I work for a financial organization and if this came out, it could cost me my job."

   Ultimately, Hyman offers up this interesting point, and perhaps something for everyone to chew on; "The squatters are getting a longer break than in the past but it will come to an end.", and says that, "The sad thing is that the squatters are spending everything they are saving while living rent free. If they did not have the squatter mentality they would be saving the money and looking to buy somewhere else with the windfall they are getting by squatting."

   Hyman makes a very good point. We need to realize that a lot of these "Squatters" are families (with children), who had been working hard for years to pay on time, until hardships arose with the Economic downturn. It does not make it right, but it's quite possible that this category of folks would never have imagined being in the foreclosure process and being a "Squatter". It seems as if the whole definition of everything we believe(d) in has taken a 180-degree turn. Tough Times!

   What are your thoughts on this hot topic?

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: #foreclosure #eviction #squatter #mortgage #foreclosureprocess #RealEstate