URBALO

Home prices have shown few signs of any turnaround, and a new report sees the downward slide continuing. Major housing markets showed worse declines. The Case-Shiller index covering 20 top metro areas for the month of June fell 3.5 percent, and the 10-city index dropped 4.1 percent year-over-year.

“The pullback in the U.S. residential real estate market is showing no signs of slowing down,” Robert J. Shiller, Chief Economist at MacroMarkets LLC said in a statement. “The year-over-year decline reported in the 2nd quarter of 2007 for the National Home Price Index is the lowest point in its reported history, which dates back to January 1987.”

The slump in housing prices began in mid-2005 when appreciation rates first started to slow and then reverse. During the past few months a credit crisis and a huge jump in default rates and foreclosures contributed to market declines.

Defaulting home owners have unleashed many new homes onto already sizable inventories. Read Full Article ->

Realty Trac has just released the foreclosure numbers for July 2007 and according to the report the nationwide foreclosures are up 93 percent since last July and 9 percent up from June 2007. There were $179,599 foreclosure filings reported in July. But what are the main factors that have contributed to the increase in foreclosures numbers?

Let’s take a look at a few of them:

1. Subprime and adjustable-rate mortgages

When the mortgage rates were at an-all-time low, consumers have borrowed more than they could afford, and due to the adjustable-rate mortgages, they were able to buy more expensive properties.

2. Increase in the real estate taxes

This is a factor that has affected everyone nationwide and in some areas, consumers have seen an increase as high as 50 percent.

3. Higher assessments

Due to an increase in electricity, gas and other consumer’s good, the property management companies and the condo associations have imposed higher assessments fees on the owners.

4. Higher interest rates

This is obviously one of the most important factor that contributed to such a high number of foreclosures fillings

5. Average time of properties on the market

The average time of houses on the market has increased and more and more sellers are facing with the situation where their property stays on the market for a prolonged amount of time. A 60-70 days time on the market is seen as normal these days but this has definitely hurt the homeowners that are in financial trouble and need to make the sale quick.

If you find yourself in trouble, read this article and remember to always talk to your lender first before deciding on other options, it is known that recently banks have been willing to go down as 20 percent of what is owed to them.

The number of foreclosures reported in the U.S. last month jumped 93 percent from July 2006 and rose 9 percent from June. This is an again an obvious sign that homeowners are having trouble making payments and finding buyers during the national housing downturn. The average time of properties on the market has increased also and this makes it even more difficult for people that find themselves in a bind and need to sell fast.

According to the report, there were 179,599 foreclosure filings reported during July, up from 92,845 during the same period a year ago. The number of foreclosures for June was at high as 164,644.
Read Full Article ->

The news that the largest U.S. mortgage lender could face bankruptcy as liquidity worsens has had a great impact on its stock, down 13%. This is the biggest one-day decline since the 1987 stock market crash. The stock has been downgraded to “sell” from “buy” on Wednesday and the investors are less confident the company can pay its bills and fund operations.

Shares of Countrywide closed down $3.17 at $21.29 on the New York Stock Exchange. They have fallen 50 percent this year, and this is definitely a tough situation for them, which doesn’t seem to have an happy ending for the company. Read Full Article ->

I bet you anything that you would have never guessed……Paris Hilton, that’s right my dear readers, the “Miss I’m not a Naughty Girl Anymore” has found her vocation: she wants to be a real estate investor. When I read this article, I really thought it was Fool’s Day, but then I looked at the calendar, and realized that we’re past that. I mean, really, Paris Hilton wants to stop partying and devote her time to real estate? Hard to believe, and honestly I don’t think anyone took her seriously.

On another note, Mademoiselle Paris is forced to sell her home in the Hollywood Hills and is currently shopping around for a gated community in the high-scale Beverly Hills. The reason? Apparently, “random guys from all around the world just showing up and leaving things.”

I have an idea, she should pair up with Miss Lohan and I’m sure they can watch over each other.

Now back to the real estate issue, since this is still a real estate blog and not PerezHilton.com, would any of you, and I’m referring to my fellow real estate agents, will have the patience to deal with her?

I know the commission would be large, but….is it worth it?

Second question, have any of you dealt in the past with such a “difficult” client?

Like many other homeowners, home-based business owners also tapped the seemingly ever-increasing rise in property value and the corresponding low interest rates the past few years to refinance their homes and use the funds for either consumer spending, business growth and expenses, or both. But now it looks as if that may not have been such a great idea.
When you are in over your head with your mortgage, when foreclosure is on the horizon, you have a few options, but I must tell you, none of them are great. Here are your choices:

Short sale: If you are on the verge of foreclosure, you would work with the bank to quickly sell the property – probably for less than its worth, but at least enough to cover the mortgage. It keeps the foreclosure off of your credit report, but that’s about it. Read Full Article ->

This is a question that everyone has asked themselves: What should I do if I’m in a foreclosure situation?

There can be one of four different outcomes:

- You bring your payments current and your loan is reinstated. (Happy ending)
- You sell your home and pay off the loan, keeping “foreclosure” off your credit record. (You have to move but your credit rating is in tact.)
- You do nothing and your home is sold at auction by an attorney, trustee, or the local sheriff. (Not good.)
- You do nothing and the bank re-possesses your home with the intention of selling it. (Not good.) Read Full Article ->

States with the Highest Foreclosure Rates
Jan-June 2007

1. Nevada
2. Colorado
3. California
4. Michigan
5. Florida
6. Ohio
7. Georgia
8. Arizona
9. Connecticut
10.Indiana

In the first six months of this year, Nevada, Colorado and California earned the dubious honor of being the three states with the highest foreclosure rates in the country. However, what might surprise people is that several states from the Midwest, including your home state of Ohio, round out the top ten.

The main problem in your area isn’t greed, but economic conditions, particularly in the auto industry. Unfortunately, knowing that others are facing similar circumstances doesn’t make your situation easier.

The slide started innocuously in April after New Century Financial, a mortgage lender whose principle borrowers were Americans with less-than-stellar credit, filed for bankruptcy protection.

Its customers were people who may have been late on credit card payments, maybe even filed bankruptcy in the previous years, but still wanted that shot at the American dream: a home of one’s own.

Lenders, flush with cash and eager to exploit new markets so they could, in turn, lend more money and increase their profits, were only too happy to oblige.

Hedge funds and banks worldwide saw a market flush with opportunity and took their fill, buying mortgage-backed securities to bolster their own bottom lines. Read Full Article ->

Chicago home sales fell 19.8% from the same time period last year according to a report released this week. In Illinois the median home price in June was $215,000, up 1.1% from June 2006. The data is generated from a survey of the MLS and includes existing as well as new properties. Nationwide the existing home sales are at their slowest pace in 4.5 years.

There is plenty of extra inventory so now is a great time to take a look at what’s available on the MLS for your ideal home criteria. This is definitely a buyers market at this point and everyone that it’s looking for a home or for an investment, should take advantage of this. The mortgage rates are lower so this will help you go higher on the purchase price. If you need more info, feel free to leave a comment here.