Rent to Own, Solution or more problems

NEW YORK – Jan. 17, 2016 – Rents are skyrocketing across the U.S., and an increasing number of renters devote more than half their paychecks to covering rental costs. It's not just a family burden: Those escalating rent costs have been cited as a major hindrance preventing renters from saving enough for a home purchase downpayment.
But some housing analysts are pointing to rent-to-own agreements as a solution for families who are stuck paying rent but longing for homeownership.
A report from Moody's Investors Service singles out a program called Home Partners of America that helps potential buyers with credit problems or not enough money for a downpayment. One of the unique aspects of the program – compared to other single-family rent-to-own programs – is that the buyers select a property they would like to purchase, and then Home Partners of America buys it, providing it meets the program's qualifications. It then sets up an agreement to rent the property to the would-be buyer. The end goal, however, is that Home Partners of America will eventually sell the property to the renter later on.
The buyer-chosen properties are likely to be "higher quality and in more desirable locations [such as those with better school districts]" than properties that are purchased through foreclosure sales, according to Moody's.
Under the rent-to-own agreement and during the lease term, the tenant would be able to purchase the home at a pre-set price. The lease term generally runs between three to five years. The longer they wait to buy, the higher the purchase price will rise – usually 3.5 percent to 5 percent per year during the term of the lease.
"Furthermore, the strategy could benefit property recovery values because renters with purchase options are incentivized to maintain their properties well," Moody's report notes.
Moody's report shows that the average value of properties under the program is $247,483 in comparison to rental homes offered by Invitation Home sand American Homes 4 Rent that average $167,631 and $143,066.
Source: "Is Rent-to-Own the Future of Housing?" HousingWire (Jan. 14, 2016)

MY apologies !!

I have not been blogging for sometime now and the reason is I can't stand to watch the news, or even walk by and see it on TV. Our Country, and I mean the media has become so one sided, that its very hard for anyone to correctly dissect the news to understand what is truth of fiction, with the media and their hidden agenda, making it sound like the Our Country is doing well when in fact its doing the opposite. The banks are taking away homes that no longer belong to the banks, and stealing the homes from homeowners,without real due process, the "So" called Foreclosure Defense attorneys are not properly defending you on your home. Media is giving the impression that homes are moving in an upward incline showing an increase in our homes when in fact, what they don't tell you is the banks are hording the inventory and putting many, many of people out of work for the all mighty dollar "Greed". We had an election last year and we are now finding out the "So" called Barack is Not eligible to have been in the race and to top that he had so much voter Fraud in the State of Ohio it came out to be 130%...WOW how do you get a 30% more turn out the 100%, and No one voted for Romney...again, so much of this administration has done is to terrorize the media, the people, and our severing way of life. Waht are we to do, well we need to start getting into public office ourselves and ""STOP"" sitting on the couch watching all this go by us, we need to start taking an active roll, no matter what it is, how small it could be, but step up now!! otherwise we will be beaten. more news later !!

WSJ - tax liens triggering foreclosures

A report released this week by the National Consumer Law Center (NCLC), says the number of foreclosures tied to delinquent tax payments is climbing. The NCLC, an advocacy group, estimates that $15 billion of tax-lien foreclosures happened in 2010, the latest year for which data are available. Rising tax-lien problems stem from two overlapping trends associated with the weak economy: To close budget deficits, some local governments are increasing proxy taxes to raise additional revenue. But a growing number of homeowners, many unemployed or living on fixed incomes, are finding those tax bills—even before rate increases—a strain. When homeowners fail to pay, municipalities have the legal authority to foreclose or auction off the tax lien to debt collectors, who can charge interest rates as high as 50% on the outstanding balances. If the homeowner doesn't pay—the deadlines to do so vary across the nation—many states allow the tax-lien holders to take ownership of the properties and resell them. While the sales are causing distress for some homeowners, they reflect hard fiscal realities at the state and municipal level. "Cities and towns are facing their own budget problems and of course need homeowners to make prompt tax payments," says John Rao, an NCLC attorney who wrote the report. Homeowners are slipping on tax payments for the same reasons they are falling behind on mortgage payments, Mr. Rao said: "They're unemployed, or underemployed, expenses have gone up, and you don't have enough money." Advocates for the elderly and the unemployed, the groups most at risk of losing their homes, say it isn't uncommon for consumers with homes valued at hundreds of thousands of dollars to lose the properties after failing to pay a few thousand dollars in taxes. "The system is really counterintuitive," said Laura Newland, an attorney with AARP, an advocacy group for people age 50 and older. "Some of the properties that are most vulnerable are the ones without a mortgage." (Local taxes on homes with a mortgage are often paid by the mortgage lender, which collects taxes from homeowners in their monthly payments.) Frank Alexander, a professor who specializes in tax-law foreclosures at Emory University's law school, said municipal governments selling tax liens are being shortsighted. "It creates short-term cash, but generates long-term problems," he said, pointing out that tax-lien sales and tax foreclosures often spark legal challenges that can last for years and prove costly for homeowners and municipal governments.

Really?? We have NO Inventory ~ for a turn around!

Home prices are finally turning around Single-family home prices picked up for a third month in a row in April, suggesting the recovery in the housing market is gaining traction, a closely watched survey showed on Tuesday. The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.7 percent on a seasonally adjusted basis, topping economists' expectations of 0.4 percent. On a non-seasonally adjusted basis, prices fared even better, rising 1.3 percent. Just three out of the 20 cities in the index saw declines in April on a seasonally adjusted basis. "It has been a long time since we enjoyed such broadbased gains," David Blitzer, chairman of the index committee at Standard & Poor's, said in a statement. "While one month does not make a trend, particularly during seasonally strong buying months, the combination of rising positive monthly index levels and improving annual returns is a good sign." Compared to a year ago, prices were down 1.9 percent, beating expectations for a decline of 2.5 percent, and an improvement from the 2.6 percent annual decline seen in March.

Economists give Obama a 'D'

When it comes to handling the economy, neither Obama nor Congress make the grade. Responding to a survey, 20 economists gave the Obama administration and the current Congress a "D" for their poor performance on the economy. "Eleventh-hour decisions and kicking the can down the road do not provide certainty to businesses and individuals," said David Crowe, chief economist for the National Association of Home Builders. "As a result, economic decisions will also be postponed or made on the basis of the most conservative expectations without better indication of the future." Crowe is one of 10 economists to give the same grades to both the Obama administration and Congress. He gave each a grade of D. Sean Snaith, economics professor at the University of Central Florida, gave the failing grade to Obama, blaming overreach by the administration. But if economists were disappointed in the White House, many are far angrier with the partisan gridlock in the current Congress. Several economists said Congress was more interested in scoring political points than in helping the economy. "The administration and Congress share the same economic record," said Keith Hembre, chief economist forCanon T3i 18.0MP Digital SLR Camera with 18-55mm IS Lens - Digital Nuveen Asset Management in Minneapolis.

Inventory shortages stabilize home prices

The average home price for non-distressed properties increased 1.7% from April to May, suggesting that a decline in overall inventory is now pushing up prices, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The average price for a short-sale still slipped 0.7%, while the price on damaged REO properties increased to 1.8% and 1.5% for move-in ready REOs. In its latest HousingPulse Tracking Survey, Campbell Surveys cited declines in home inventory levels as one of the principal reasons for home price stabilization, especially in areas that have experienced large price declines in the past six years. Multiple factors are causing the shortages—namely homeowners keeping their houses off the market while prices are still low. In addition, those who are underwater are staying in place and cannot move until more of the debt is paid down. The survey also says appraisals are keeping prices down. The survey cites at least one real estate agent in Florida as saying appraisals are keeping prices from going up because appraisals that come in under the contract price are stopping "natural valid appreciation."

The Truth About MLS Searches On The Web

The truth about MLS searches on the web.

This short article tries to explain what most Purchasers do not understand about MLS entries on various websites on the web

This, undoubtedly is just one of my personal favorite subjects, the data here is only a reflection of my Understanding and Opinions around the "Use" from the MLS systems for delicately searching for qualities on the web.

The Web is a superb source to make use of inside your early procedure for trying to find houses within the areas which are desirable for you. The large number of websites have a myriad of nice tools that you should evaluate and perform some initial research without some annoying Realtor breathing lower your neck. I'm a Real estate agent and that i perform the same factor, I enjoy peruse different qualities in various states, simply to make a price comparison and find out what values are just like in various regions of our Country.

Statistics inform us the average Buyer stays about 6 several weeks on the web searching for qualities before they begin seriously thinking about continuing to move forward to the entire process of physically searching at and buying a house. Now here's where things obtain a little confusing towards the average Buyer after they are raring to visit, this is the way the web sites work from here inside your journey.

To begin with, let us try making a couple of things understandable that might be just a little confusing, especially if you're a very first time buyer. #1 Almost everyone has now notice the acronym "MLS" this means the Mls. The MLS is how all the Realtors List the qualities available inside a particular area. Whenever a Seller lists a house, they'll hire a realtor who then will put all the information to the MLS to ensure that the many other Agents can easily see the home, in Oc California, that's lots of Agents (about 13,000) Odds are your opportunity agent won't have a buyer for that home they have listed but there's an excellent chance the other 13,000 agents will, this is the energy from the MLS.

Ok, it's true that exactly what the MLS is! But how about the many other area's round the Country? You will find 1000's of MLS's, all serving another areas for Realtors. And each Realtor available and that i mean everybody needs to possess a Property license to gain access to their very own particular MLS, they likewise have to pay for a fee to make use of the MLS. Just how do all of the different websites you have been searching at have these houses on their own sites? They're permitted to distribute the data via a system known as IDX or Internet Data Exchange, quite simply it can be each and every agent in the united states to determine if they would like to allow IDX to distribute their listing once the come in in to the MLS system. Most do, some don't. Which means, odds are you aren't seeing all the entries per your particular criteria on any websites available on the web. You aren't getting accessibility real Mls merely a re-hashed version from it. Also this is actually the same mechanism that might be with an individual Realtors website, they're going to have a house search section somewhere on their own site, this is actually the same information you will get on every website in the united states on the web. Those sites just rehash what's joined in to the MLS and could offer additional features online that provide you much more of a "Touchy Feely" experience

#2 Now you could begin wondering, this is nice of these web sites to provide me all of this information free of charge, gee I question why they're doing this? MONEY, and that i mean Large MONEY!! Ever notice the way your Junk e-mail accumulates after a powerful duration of surfing the web Property internet sites! It is all about advertising revenue and perhaps acquiring you like a future Client.

Another factor these Websites do is that they will leave a house online, lengthy following the home has offered, they do not walk out their method to take away the property since it increases the quantity of houses that individuals will question, therefore growing their profits. Actually during my research 30-35% of times the house you're searching when needed maintain Escrow, Some sites will show you that others might not.

So, here's my point, is the fact that how you need to satisfy the agent that you will use that will help you make probably the most important choices individuals existence? Absolutely not! Don't misunderstand me, the web continues to be the site to visit when you're just beginning out, but when the time comes to honestly searching for a house you will need the very best Purchasers Agent that you could. I highly recommend that you get a Purchasers Agent that is useful for you, it will likely be to your benefit in each and every way imaginable. In the end a Purchasers Agent legitimate Etate is free of charge because the Seller pays all Agent commissions.