Saturday, October 28, 2006

Help with Foreclosure

Facts : Foreclosures are costly to the Mortgage Industry !! as well as to the city governments, neighborhoods and familes facing foreclosures.

The Homeownership Preservation Foundations was created to help reduce foreclosures and preserve homeownership for American Familie in crises.

Please call them too free : it’s a 24/7 hotline for homeowners in need of foreclosure counseling. The number is 888-995-Hope (4619). The non-profit is staffed by specially trained foreclosure counselors working for one of four HUD-approved counseling angecies. The call is offered free of charge to any homeowners in the US.

Source : dsnews

Stopping Foreclosures | Foreclosure Help

Wednesday, October 18, 2006

How To Profit from the Coming Foreclosure Real Estate BOOM!

How To Profit from the Coming Foreclosure Real Estate BOOM!

A smart real estate investor will know that using leveage and following a system can net terrific profits in real estate. Particularly with foreclosure properties. Foreclosures are a great way to build a fortune. Now more than ever, because real estate foreclosure rates are the highest we've seen in 46 years...

Here’s a basic strategy investors with foreclosures:
A foreclosure home is up for sale. It's worth $350,000 according to comparable real estate appraisals, but the bank's asking price is $300,000.

The savvy investor will have a contractor or home inspector on their power team check out the foreclosure property in question. In this case, they discover it needs $20,000 of work.Interestingly enough, many real estate homebuyers will pass right over the foreclosed property. Because unlike an investor, they "think" it's ugly.

This real estate offers a handsome opportunity for an opportunistic real estate investor. Savvy investors will also use the Multi-Offer Strategy Technique in a Foreclosure…

This technique uses the principle of offering ‘choice’ to the eager seller – the bank - after it has been on the market for 60 days. Here, the investor submits three offers at a variety of prices ranging from $210,000 to $225,000. They do so by submitting an offer in their personal name, another under their partner's name, and the other under a company name. These offers are presented by the Realtor to the bank's loss mitigation department whose sole job is to sell off the banks non-performing assets as quickly as possible. Even if that means the bank registers a loss on the loan of the property by selling to the investor.

Since they are buying through a bank's loss mitigation department, their offer of $225,000 is accepted - even though it is well under the asking price. This strategy can work great in a foreclosure-heavy market like Detroit and Denver, Colorado. Yes, foreclosure real estate in Denver and foreclosures throughout Colorado's real estate market are high. And banks in these markets truly are motivated sellers.

That's not all!

The savvy investor experienced in the real estate contract with a foreclosure will actually get the bank to give them a mortgage for the $225,000. Once the home loan goes through, the investor closes on the real estate, using a 10% down payment from a private lender. The investor then immediately sells the property to another “fix and flip” investor, and nets at least a $75,000 profit.

All this by selling it at the original asking price rather, than the actual real estate value of the property! Foreclosure real estate is skyrocketing. Being a real estate investor with this one niche can help you become a multi-millionaire. Discover more real estate investing tips, deal alerts, and receive valuable foreclosure resources and contracts by visiting today. It could literally change your life!

Discover How To Buy & Profit from the Foreclosure Real Estate BOOM without Cash and Bad Credit! Foreclosure real estate is soaring to all time highs since the 1960's. Now more than every before, fortunes can be made with foreclosure real estate more quickly than in the past. Learn how to buy and profit from the foreclosure real estate boom in north america, even if you have little cash and poor credit.

Monday, October 09, 2006

Foreclosures - Take Action Early

If you’re looking at the potential for foreclosures, the worst thing you can do is take a “wait and see” attitude.

In fact, the earlier you can start talking to – and negotiating with – your creditors, the better.

Start early actually means that you should contact the person or company that holds the title to your property as soon as you think you may be in trouble. It’s tempting to avoid the problem to the point of not answering the telephone when those creditors call, but that’s not going to solve the issue. In fact, creditors who aren’t getting answers or satisfaction are more likely to take action than those with whom you’ve been talking.

Another reason you should start talking to your creditors well before foreclosure becomes immediate and unavoidable is that you have more options at that point than when the creditor is already taking action. One of those options could be the chance to renegotiate your loan. You might be eligible for a refinancing loan that will stretch your payments out over a longer period of time, meaning you’ll have lower monthly payments. That could significantly increase your ability to make those payments on time. Not only could you be eligible for a longer payoff, you may also qualify for a loan that’s larger than your current payoff. That means you could get some cash back from refinancing your loan. If you’re having trouble meeting other bills as well because of some short-term issue, this influx of cash could be the answer you’re looking for.

If you take time to contact your lender, you may also find them willing to give you a break on a payment or two. Some lenders will allow you to pay the interest due, putting the rest of the payment off until the end of your note. While you probably won’t have the option to do this more than once or twice, it could be the answer to short-term problems that sometimes hamper the ability to make payments on time.

It’s human nature to avoid confrontations, including those that occur when you’ve had trouble making your payments on time. But this isn’t a situation that’s going to resolve itself. Take time to contact your lender. Explain as much of the problem as you can and ask for advice. You’ll find them much more willing to negotiate with you early in the process than after you’ve missed several payments. Dave is the owner of and websites that provide information on home foreclosures

Tuesday, October 03, 2006

Mortgage Foreclosure in Minnesota

1. How is a mortgage foreclosed in Minnesota?

In Minnesota there are essentially two ways that a mortgage can be foreclosed. The first way to foreclose is through the process of foreclosure by action. In this process, the mortgage holder files a lawsuit in district court against the homeowner and any others claiming an interest in the property. The matter will proceed with the timing of a normal lawsuit. If successful, the court will enter judgment of an amount due with costs and disbursements and order the sale of the property by the sheriff in order to satisfy this judgment. The sheriff will conduct a “sheriff’s sale” described below.

Foreclosure by Advertisement. The second and most common way for a mortgagee to foreclose on a mortgage on Minnesota property is through the process referred to as foreclosure by advertisement. Essentially, foreclosure by advertisement allows the mortgagee to publish in a legal newspaper that the mortgage is in default and that a sale of the property subject to the mortgage will be held on a specific date. If the property owner fails to cure the default before the sale, the sheriff will conduct a “sheriff’s sale” described below.

2. When is mortgage foreclosure by advertisement available?

A mortgagee may foreclose through the advertisement process if the mortgage contains a permission to foreclose by advertisement (most mortgages do) and there is a default in a condition of the mortgage. Additionally, the mortgage must have been recorded or duly registered. (Most are.)

3. What notice must be provided in order to foreclose by advertisement?

The mortgage holder must publish notice that the mortgage will be foreclosed by sale by providing six weeks published notice in a legal newspaper. Additionally, this notice must be served personally on the occupant of the property at least four weeks before the sale. The notice must contain the date of mortgage, when and where recorded or registered, the amount due on the mortgage, the time and place of sale, and time allowed for the property owner to redeem after the sale among other things.

4. What happens at a sale?

Essentially, the sheriff or deputy auctions the property being foreclosed to the highest bidder. The sheriff or deputy will deliver to the purchaser (usually the mortgage holder) a Certificate of Sale, which will be recorded within twenty days after the sale and operates as a conveyance of the foreclosed property after the property owner’s redemption period expires.

5. May the foreclosed property owner regain title to the property after the sale?

Yes. In most cases, the foreclosed property owner has six months to redeem the foreclosed property from the purchaser at the sale. To exercise their right to redeem the property, the foreclosed property owner must pay the purchaser the amount of the sale plus interest from the time of the sale. In some instances, this redemption period will extend up to one year after the sale of the property has occurred.

Usually this redemption is completed by refinancing the property or by selling the property within the redemption period.

6. Does the property owner have the ability to reinstate the defaulted mortgage prior to the foreclosure sale?

Yes. In Minnesota a property owner has the right to pay amount in default and resume to make the monthly payments (“reinstate”). To successfully reinstate, the property owner must pay the mortgage holder the amount in default, including insurance, delinquent taxes, interest, cost of publication and service, and attorney’s fees. (The amount of attorney’s fees is limited by law.) The effect of making this payment is that the mortgage is reinstated and foreclosure proceedings are abandoned.

This article was written by Attorney Mike Kallas of Kallas Law in Minneapolis Minnesota. The Law firm specializes in business and real estate law.

Monday, September 25, 2006

Real estate foreclosures - a safe way to purchase a home

The real estate business is one of the main pillars of today’s global economy. Investing in real estate is most likely to guarantee your financial independence, but what is considered the best investment on the real estate market? Lately, excellent profits have been provided by investing in foreclosures.

Many people are unaware of what real estate foreclosures really refer to. Foreclosure happens when a homeowner defaults on a mortgage loan. The truth is that there is a high demand for homes on the real estate market. Prices have risen awfully and a lot of citizens have taken on mortgages in order to keep their homes.

Foreclosure web sites are there to offer heaps of information about discounted properties or foreclosures, not to mention they are ready to throw in programs or training material to guide you through the buying process. Real estate foreclosures attract potential homebuyers because these houses can usuallly be purchased at a price below the market.

There are many prospective buyers that choose a foreclosure listing service in order to browse for potential, low-priced homes. A foreclosure listing service may be free or you might have to pay and it offers a list of property items and required information to people interesed in purchasing foreclosures.

Finding a reputable foreclosure listing service is not a piece of cake. Free foreclosure listings have no charge, but they do not provide enough information and might not be updated on a scheduled basis. If you choose to browse through a paid foreclosure listing service, you can get more detailed and updated information. There is a seven days trial of service in which you can go see how the entire process of buying a foreclosure takes place. After that, if you are satisfied with the service, you can continue subscribing and getting everyday info about real estate foreclosures.

What does a foreclosure listing service has to offer besides the property list? Well, there is a detailed description on major aspects of the real estate such as: property details, foreclosure information, location, sales history, taxes and contact information. The property details include: number of bedrooms, lot size and loan balance of the house and photos of each property. A foreclosure listing service will give the prospective buyer an idea of the city and the state where the home is located.

Many buyers are confused about the different types of information available on the real estate market or even the kind of information they need. People are often misinformed about the lists of foreclosed properties, no matter if they are owned by the bank or the government or if they are statewide/nationwide/local. Today, there are several websites that have built a reputation and deliver daily accurate information to their customers (home buyers or investors) about foreclosures and available opportunities. On the other hand, there are those satisfied with the minimum research, which pay no attention to details and make false claims (the promise of getting rich). You will want to avoid such a foreclosure listing service.

Real estate foreclosures are in high demand not only by home-buyers, but by real estate investors also. They make profits by purchasing homes below price market and selling them at a higher price. They are not afraid to pay for a foreclosure listing service as the cost has little significance when the profits come from buying and selling real estate foreclosures. The process that involves such properties is quite an investment.

Real estate foreclosures are quite popular and people looking to profit from such a business are always in search of foreclosure listings. That is why they generally have the first pick of cheap properties. So, if you are interested in a foreclosed home, it will be a good investment to pay for an accurate and useful list of real estate foreclosures and get good results.

For persons interested in purchasing inexpensive homes, such properties – real estate foreclosures – are the answer. If you browse the Internet, you will come across many online foreclosure listing services. It is best to subscribe to these services and pay a membership fee. You have to check these listings regularly and make immediate contact if you find a suitable foreclosed property. Watch real estate foreclosure hotspots also as there are lots of properties available on the foreclosures’ market especially in high demanded areas (mainly coastal regions).

Purchasing real estate foreclosures can be an excellent investment. It has a lot to offer, but there are certain risks involved as well. A golden rule is to research, research, research and browse the market carefully. Though more and more people choose to buy a foreclosed property, foreclosure homes still represent a very small percentage of the overall housing inventory, so it’s best to profit from it while the news is still hot!

By: David Yuri

Friday, September 15, 2006

Home Foreclosures on the Rise

The share of Mortgage entering foreclosures are on the rise.

In August, 115,292 Homes Entered foreclosures, up 53% vs. a year ago.
(source from realtytrac)

Foreclosures rose 160% in California.

Monday, September 04, 2006

Colorado Real Estate Foreclosures

If Georgia is the top state for real estate frauds, Colorado real estate steals the spot for being with the most foreclosures. Colorado has the distinction of having the highest number of foreclosed homes in the nation for the second consecutive month. This is the latest sign that the weak, lower-priced housing market continues to plague the economy. The RealtyTrac Inc. report shows that since April, 3,706 homes in Colorado were in state of foreclosure. That translates to a ratio of one of every 494 households in foreclosure. The national average is one of every 1,268 households.

Colorado real estate retained the No. 1 spot even though the rate of foreclosures dropped by 31 percent from March, when 5,392 homes were in foreclosure. There is a disaster driving the high rate of foreclosures, said Mary Wenke, public trustee of Arapahoe County. In April, Wenke's office opened 436 foreclosures, compared with 288 in April 2005. Wenke insisted adjustable rate mortgages, whose interest rates are starting to rise, will mean even more foreclosures in coming months. The factors driving the numbers include a record excess of unsold homes in the market, homeowners' huge credit card debts, pre-payment penalties, mortgage fraud, and bankruptcies.

Wenke asserts that foreclosures are just stages in a vicious cycle and affected by unemployment. She adds that the foreclosure rates negate the government claims of a stronger economy. The head of Colorado Real Estate Center, Byron Koste affirms the statement by Wenke. Koste says that the rising foreclosure rates should serve as a red flag for the economists that are claiming economic strength. Koste adds that foreclosures are more frequent among entry-level housing market. Events like these usually throw real estate businesses off because consumers are more hesitant to buy houses.

However, Cherrywood Properties' Ben Fielder claims that it is unfair to categorize the whole of Colorado real estate as foreclosure haven. He asserts that the foreclosures are primarily concentrated on the northeastern side of Aurora and Adams County. He even claims that real estate is on a steady rise and that people are more excited than ever to buy their own Colorado home. The only problem he sees is that there are over-enthusiastic buyers who get loans and mortgages that they cannot manage.

Whether you decide to buy Colorado real estate or not, it's up to you. The place is good, with nature and a vast selection of prospective homes. The government also provides good public service. Just mind what Colorado real estate experts like Wenke, Koste, and Fielder have to say -- do not buy homes you cannot afford. Lenders and banks won't have second thoughts in taking it back if you can't pay for it.

Thursday, August 31, 2006

Profit From The Real Estate Bubble: Invest In Foreclosures

How To Buy Foreclosure

There may be only one slogan for people interested in real estate investments. “Buy on time, buy quick”. This is how to buy foreclosure. Real estate investment is about being smart and taking opportunities as they fall.

A Homeowner Sale May Be More Favorable

You may have to move at the right time because many distressed homeowners would want to dispose of their buildings at a bargain. If the lender takes over the foreclosure process, then he will mark the price at the market value because of his in-depth knowledge about how to buy foreclosure.

Get Reliable Information

Every business has its own information sources. One smart way about how to buy foreclosure is to rely on information from reputable sources such as newspapers or online lists. Alternatively, you can contact real estate brokers, attorneys, county recorders or title insurance officers. These people have the competence, experience and professional acumen to advise of credible listings of upcoming foreclosures.

Enter Into Discussions With The Homeowner

If you get to know about a distressed property, try to see the owner and enter into discussions with him before the lender does. Advise him on the imminent foreclosure and how he can redeem the property and avoid a taint on his credit rating by making the property available to you. Here you can make a bargain and get property well below the market price.

In such instances, it is advisable to extract as much information as possible to know the homeowner’s real equity as in many cases the homeowner has no equity at all after mortgaging the entire property out.

At The Foreclosure Auction

Should you miss the opportunity to buy from the homeowner, you can still acquire the property at the auction sale. As a further tip on how to buy foreclosure at the auction, you will be better of if you exercise a great deal of discretion especially if you are a beginner. Before you arrive at the auction, make sure that you have studied the background of the property and have satisfied yourself about title, cost of repair, remaining equity, competing interest, etc. The reason is that, after the acceptance of your bid you cannot reverse your decision. You are bound to purchase the property as it is.

After The Auction

Even if you are unable to get an auction and ownership of the property reverts the lender , you still have the chance to acquire the property as many lenders will not want to keep the property but dispose of them at a margin. This is how to buy foreclosure in this situation : Determine the market price of the property and if you can make some profits after taking way repair costs, you can contact the lender and then negotiate a price based on your market findings.

Article Provided by :

John Appleseed is contributor to, where his insider knowledge of Bank REO strategies are freely shared.

Monday, August 07, 2006

Where will the Bubble Burst ?

It's the big question everyone is waiting for, where will the bubble burst? With Continued interest increases, a slowdown of home value appreciation and a shift from a seller's market to a buyer's market, the big question among consumers and the real estate industry today is what will happen when the the real estate bubble bursts.

Let's put it this way, instead of telling you how and where the bubble will burst, let's examine how or why it's possible that the bubble will burst.

1. In Recent years, with low interest rates, the Average homeowners have taken advantage of low rates to puchased homes they otherwise could not afford

2. The Majority of this owners bought homes with Low Rates, no money down and interest only loans.

3. Many of this buyers are in overvalued markets such as California and New York and have believe that real estate appreciation will continue to rise yearly in double digit figures.

4. Rise in Potential defaults because of rising interest rates in areas of overvalaution should be factor when buying a home.

5. The Largest correction will occur in states with middle or high end properties that has experienced rapid real estate appreciation.

6. Lower end properties will remain a strong market.

7. States with low real estate appreciation will see little corrections.

8. Increased in Foreclosures are usually attributed to a slow economy - but what we see today is because of overbuying of property as a result of low interest rate.

9. The Bubble has burst from a homeowner who are walking away from a huge deposit on a home where the value has declined or where they been unable to sell the property at a suffiecient price to complete the transaction.

10. The Homeowners more likely to be at risk are those who experienced little appreciation last year and have stretched their mortgage payments beyond the 35% income to mortgage ratio.

11. As ARMs begin to convert, more and more homeowners will find themselves in trouble.

12. The Rise in active home inventory is a strong leading indicator that the foreclosure rates may soon start to escalate, thus leading to slow or decrease home values.

Foreclosure Information

Sunday, August 06, 2006

Foreclosure Hotspots

Top Ten Foreclosure Cities

1. Indianapolis Indiana
2. Atlanta Georgia
3. Dallas Texas
4. Memphis Tennessee
5. Denver Colorado
6. Detroit Michigan
7. Kacksonville Florida
8. San Antonio Texas
9. Canton Ohio
10. Las Vegas Nevada

Top Ten Foreclosure Counties

1. Wayne County Michigan
2. Dallas County Texas
3. Shelby County Tennessee
4. Tarrant County Texas
5. Marion County Indiana
6. Fulton County Georgia
7. Harris County Texas
8. Cuyahoga County Ohio
9. Dekelb County Georgia
10. Franklin County Ohio

Foreclosures in the USA are still climbing up and I am expecting
it to still climb up until maybe next summer.

Wednesday, August 02, 2006

Why Buy Pre Foreclosures?

Have you ever heard of the term pre foreclosure? Do you think that this means the same thing as a foreclosed property? If you answered yes to these questions you are not alone. But at the same time, if you answered yes you are not familiar with the advantages of buying pre foreclosures.

Pre foreclosures are properties that are in the final stage before they are taken back by the bank or lender. This means that the owner is still in charge of the property, but if they do not make any attempt to rectify their situation the bank or financier will repossess the home.

There are many benefits in buying pre foreclosures. The reason that most people miss out on these homes is because they do not know what they are, or how to find them.

The number one advantage of pre foreclosures is the lower price associated with such properties. The owner has to sell the house before the bank or lender takes it and is more inclined to listen to any offers that they receive. It is quite possible to find pre foreclosures that are up to 50% off of the market value.

In addition to the bargain that you can get on pre foreclosures, you will also be able to deal directly with the owner. This is an advantage because the buyer is in control during a pre foreclosure deal. If the home owner turns down your offer and fails to find another buyer, they will end up losing everything. If they manage to sell the home they can at least end up making back some money.

Finding pre foreclosures can be done in the same way as locating homes that that bank already owns. You can find them in the newspaper, online, or by calling the lender directly on the phone. It is really up to you, and you can base it on what seems to be most effective.

Compared to foreclosed properties, you would normally face less competition with pre forecloses. This increases the chance of getting a great price and ending up with the home of your choice.

If you are looking for a new home, don’t forget to check out these properties. Buying pre foreclosures can be very profitable.

About the Author:
Ken Fong Terra Bites of Real Estate Information

Monday, July 17, 2006

Home Buyer Beware – Know The Signs Of Real Estate Market Trouble

Lots of articles have appeared recently about the booming real estate market in the United States. Home prices, especially on the East and West coasts, are not only at record levels, but are increasing at record rates. In some areas around Washington, D.C. and San Francisco, home prices have tripled in the last five years. While many homeowners have been enjoying huge increases in their equity, realized when they either sell their home or borrow against it, the market has become increasingly difficult for those trying to buy homes. It may get worse, as there are now some strong signs that the market may be near its peak:

# The prices of homes in many markets are so high that few buyers can purchase them using traditional mortgages. In Washington, D.C., for instance, 48% of new mortgages are of the interest-only variety, where the buyer pays only the interest on the loan for the first few years. This keeps the payments low enough that the buyer can qualify for the loan. The problem is that the buyer is only paying interest and not actually contributing to the purchase price of the home. The fact that so many buyers are obtaining interest-only loans suggests that prices in those markets may be too high to be sustained.

# Many home appraisers have complained that lenders are constantly pressuring them to “make the numbers” when appraising homes. Appraisers in some modestly-appreciating markets, such as Buffalo, NY, say that they are often given a value when assigned an appraisal, with the unspoken understanding that their appraisal is expected to come in at or above that figure. The lending industry is competitive, and lenders want to issue as many loans as possible. It would appear that quite a few of them are even willing to lend money when the home doesn’t appraise for the asking price. Appraisers point out that if they don’t provide the “requested” figures, then the lenders will simply hire other appraisers.

# The foreclosure rate is increasing. The rate increased in March and April over the same months last year, suggesting that more buyers may have discovered that they have mortgages on which they cannot make the payments. The foreclosure rates are the highest in Florida and Texas, which have foreclosure rates that are nearly triple the national average. With interest rates near historic lows, mortgages are more likely to become even less affordable as interest rates increase.

What this means for prospective buyers is that they must do even more research before buying a home. Buyers should genuinely consider whether or not they could actually afford to make home payments that include a reduction in principal. If a buyer can’t afford a home without taking out an interest-only loan, the buyer probably can’t afford the home. Buyers should be suspicious of home appraisals and should, if possible, ask the appraiser if they are being pressured to provide a predetermined figure. Every buyer wants his or her home to appraise for at least the amount of the loan. But the current market is one where buyers are straining to make payments on prices that are at record levels. The last thing any buyer wants is to strain to make payments on a mortgage that exceeds the value of the home. The real estate market is in a precarious state at the moment, and prospective buyers should do as much research as possible to make sure that they can both pay for, and keep, their new home.

About the Author:

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including, a Website devoted to debt consolidation information and, a site devoted to information on home equity loans.

Saturday, June 03, 2006

Real Estate Foreclosure Risk: The Double-Edged Sword In Real Estate Foreclosure Investments

As a real estate foreclosure investor, now is the time to take advantage of the growing opportunities and profits in the real estate foreclose market due to rising foreclosure risk. However, without accurate foreclosure investment advice you also face the inevitable challenge of avoiding foreclosure risk; the double-edged sword.

As a real estate foreclosure investor, now is the time to take advantage of the growing opportunities and profits in the real estate foreclose market due to rising foreclosure risk. However, without accurate foreclosure investment advice you also face the inevitable challenge of avoiding foreclosure risk; the double-edged sword.

Investment opportunities in the real estate foreclosure market have never been brighter. We have all read the past headlines: "85,000 Homes in Foreclosure", "Foreclosures Hit the Highest Level in 30 years", "U.S. Foreclosure Inventory Levels on the Rise"..., brought about by hard economic times and subprime loans. Now we are seeing a new trend: "What's up? Foreclosures rise in record year"..., while new single-family home starts are breaking records, foreclosures are growing. Rising home prices has led anxious first time buyers to purchase homes with little or no equity, combined with other rising costs, such as property taxes, they run the risk of mortgage foreclosures. A recent study by SMR research indicates a future increase in real estate foreclosures due to the rise of foreclosure risk will continue. Don't miss out on these growing real estate foreclosure investment opportunities, for more advice check out Foreclosure-Blogger.

Real estate foreclosure investors can take advantage of the investment opportunities and profits available while minimizing their real estate foreclosure risk. A sharp investor should do some simple homework and get accurate real estate foreclosure information. Avoid risk and mistakes concerning a potential property's fair market value as housing prices escalate. Know the true equity available in the home including liens from property taxes, utility bills and even pending IRS liens. Understand hidden title issues, legal safeguards and more. Don't miss out on lost opportunities because of unnecessary risk due to lack of real estate foreclosure advice.

About the Author:

Diane Bulmer is a freelance business writer who enjoys applying her creativity and expertise in providing readers with invaluable decision making information. With degrees from the University of Michigan and Eastern Michigan University, she has spent over 20 years conducting research, analyzing and reporting information for private industry and nonprofit organizations. For more information visit:

Info Provided by : John Nazareno Real Estate Foreclosure Information @copyrighted 2006 all right reserveyou may used this article providing that you provide a live link back to this blog

Thursday, May 25, 2006

“5 General Trends in the California Real Estate Market to Watch -- 2006”

“5 General Trends in the California Real Estate Market to Watch -- 2006”

Historically, the real estate trends of California have always been the precursors for the rest of the country. Which is why leading players of the real estate market keep a close watch on the Golden State’s real estate market conditions.

And whether you are a first time homebuyer, debating the viability of building your dream house in San Bernardino, or a real estate investor looking to sell condominium units in Los Angeles, you certainly want to know: When is it the optimum time to buy or sell?

Purchasing a house is a major investment. With judicious planning, this valuable asset will appreciate with each year.

But how do you get the big picture? Fortunately, real estate trends are predictable because these develop over a long period, unlike the stock market, which is rather volatile.

The first thing you will need to do is to read and track real estate articles: the market reports of the California Association of Realtors or the California Building Industry Association, and the briefs created by housing analyst companies.

Once you have identified the following key indicators you will have a better grasp of the general trends in California’s real estate market.


Interest Rates
When interest rates rise, buyers shy away. Conversely, lowered interest rates attract more buyers.

This year, interest rates in California are on an upswing. For example, thirty-year fixed mortgage rates, which averaged 5.71 percent in 2005, has risen to 6 percent levels in January 2006. And adjustable mortgage interest rates have moved up to 5 percent levels compared to 4.12 percent in 2005.

Building Permits
The higher the number of building permits issued, the higher the demand for houses.

Figures show that number of building permits issued for the year 2006, have fallen by 10 percent in comparison to last year’s figures. In terms of houses, that’s a decrease of 1,430 building permits compared to January 2005 figures, according to California Building Industry Association report.

Home Sales
This key indicator refers to the total number of homes sold. In the law of supply and demand, when there are few buyers, real estate prices fall.

The January 2006 figures of the California Association of Realtors reveal that the number of existing single-family detached homes sold, has gone down by 24.1 percent in comparison to sales for the entire year 2005.

Another factor to consider is the growing inventory of available houses in certain counties in California, which is changing the market dynamics. What was once a sellers market is slowly turning into a buyers market.

Loan Defaults
This refers to the failure of homeowners to pay their monthly mortgage fees. One downside to this is that many Californian homeowners are choosing to have a bad credit report, rather than to keep paying fees for a home whose value has been inflated by as much as 20 percent more.

Foreclosure Sales
Figures presented by DataQuick Information Systems, a housing analyst company, indicate that foreclosure activities in California have gone up by 19 percent in the last quarter of 2005. This is an increase of 3 percent compared to the third quarter of 2005, and is 4.6 percent higher when compared to 2004’s last quarter figures.

When foreclosure sales are on an upswing, consumer spending is down and consumer debt levels have risen. In the real estate market, this has meant that many financially strapped homeowners are selling their homes at lower prices. The other contributable factors are inflation, the rising prices of gasoline, federal budget deficit, and interest rates.

Concurrently, these key indicators confirm that although home sales levels in California are falling, the demand for houses remains strong and steady. Always do your due diligence before undertaking a purchase of property in California.

Author : John Nazareno
@copyrighted 2006 all right reserve
you may used this article providing that you provide a live link back to this blog
Foreclosure Information

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