Register Real Estate Advisors

HOUSTON (Houston Business Journal) – Houston area foreclosures did not significantly increase between the second and third quarters, and there were fewer than last year.

RealtyTrac’s U.S. Foreclosure Market Report revealed that Houston–Sugar Land–Baytown foreclosures increased 1.5 percent between the second and third quarters, and actually fell 8.1 percent from third quarter 2008.

Approximately one out of every 256 area homes, or 0.39 percent, posted foreclosure activity from July to September, ranking Houston 124th in the United States for number of households in foreclosure.

The Dallas area’s 10,700 properties, or 0.45 percent of the whole, that posted foreclosure activity made it the highest in Texas.

College Station–Bryan had the lowest percentage of housing units in foreclosure during the third quarter, with 46 properties, or 0.05 percent.

HOUSTON (Houston Business Journal) – Texas foreclosures rose 17 percent between August and September, with 13,216 default notices, scheduled auctions and bank repossessions filed last month.
Year over year, foreclosures were up 43.7 percent in September, according to RealtyTrac Inc.
Statewide foreclosures were 11.3 percent higher in the third quarter than in the second with 29,838 filings, and 8.7 percent above third quarter 2008.
Nationwide, filings fell 4 percent between August and September but were up 29.2 percent from September 2008, with over 340,000 filings.

From the Dallas Morning News:

Value of Dallas-Fort Worth area commercial properties have declined, and as a result, a rising number are facing foreclosure.  “Every commercial real estate building in the nation has lost 30 percent of its value,” said Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University. “And the buildings in this town have been impacted.”   The number of commercial real estate deals posted for foreclosure has grown more than 10 percent so far this year. Industry leaders worry this is just a preview of what is to come.  “The vast majority of buildings bought after 2005 are absolutely not worth the debt,” said Paul Whitman, president of commercial real estate firm Jones Lang LaSalle’s Dallas office. “Don’t be shocked that there will be hundreds of millions of dollars in foreclosures in commercial real estate in 2010.”  Whitman and Dotzour said lenders are in many cases delaying commercial foreclosures and repricing properties.  Watch for “Bad for Business: Commercial Real Estate Faces Uphill Climb,” coming in the October issue of Tierra Grande http://recenter.tamu.edu/tgrande magazine, the Real Estate Center’s quarterly journal. It will be posted on the Center’s website in early November.

AUSTIN (Austin American-Statesman) – Residential foreclosures are at a five-month low in Central Texas, reflecting a trend in other parts of Texas, according to Foreclosure Listing Service (FLS) data.

“The tide may have changed,” said FLS President George Roddy Sr., adding that the figures offer hope that foreclosure postings may have peaked.

Travis, Williamson, Hays and Bastrop counties posted a combined 1,072 properties for foreclosure in the August auction, down 27 percent from July.

The Dallas area saw foreclosures fall below 5,000 for the first time since March. In Bexar County, postings fell to their lowest level since March, according to Real Estate Foreclosures Inc.

All week I was busy showing houses morning, day, and evenings.  The majority of what I showed was new construction and foreclosures.  They are both HOT!  If you are looking for a house this time of year remember to wear cool clothing and comfortable shoes.  It’s hot and there’s no air conditioning in the new construction homes unless they are completely finished.  In most of the foreclosures the air conditioning has been turned off.  Be prepared when house hunting in Texas in the heat of the summer.  Drink lots of water!

What it means to homebuyers

The Housing and Economic Recovery Act of 2008 will introduce changes in the mortgage industry which will also affect the housing market.  Here is a brief summary of the new legislation and what it means to homebuyers.

Purpose of the legislation:

• Make it easier to buy or sell a home
• Slow down the rate of foreclosures
• Ensure the financial stability of Fannie Mae and Freddie Mac

Highlights:

• Higher permanent loan limits for conventional, FHA and VA Loans (effective January 1, 2009)
• Tax credit for first-time homebuyers – up to $7,500 in the purchase year, for homes purchased between April 9, 2008 and July 1, 2009.
• Modernization of FHA loan programs – including a 3.5% minimum down payment (effective January 1, 2009)
• Fannie Mae and Freddie Mac get a financial boost from the U.S. Treasury, and they will have a new regulator with broader authority
• FHA “HOPE” Rescue Plan – refinancing for homeowners at risk of foreclosure

What this means to homebuyers:

The higher loan limits could help buyers obtain more affordable financing; however, the effects will vary by geographical location – so ask your Mortgage Adviser for details.  Since the new permanent limits are less aggressive than the “conforming plus” limits that expire on December 31, 2008, buyers must act soon to take advantage of current higher limits.

The initial cash savings from the tax credit may be very attractive to many first-time homebuyers; however, buyers must act soon to take advantage of the tax credit by closing on a new home before July 1, 2009.

Help for Fannie Mae and Freddie Mac makes it easier to buy or sell a home by boosting investor and consumer confidence in the housing market.  The FHA “HOPE” Rescue Program may help some homeowners avoid foreclosure, potentially reducing the inventory of homes entering the market.  This is good news for everyone.

I have had so many people tell me they are searching the internet to find a good deal on a foreclosure to have as an investment property. If this is the case for you, you’re not alone! First of all, who doesn’t want a good deal? Second, with the stock market choking, real estate investments are looking good because people know the value will go up again, it’s just a matter of time so they want to buy while prices are low. So people are always asking me, “How do you find good foreclosure deals?” It seems like I am hearing that daily.

The secret is a good real estate agent. You might search online all day and never find what you are looking for. If it’s out there, your Realtor can find it. I have access to data bases that consumers cannot access. Trust your Realtor to find the best deal for you while you are busy with your own career. When you are buying real estate, you don’t pay your Realtor for their services. The seller pays their commission. I cringe at the thought of people paying for foreclosure sharks to find them an investment property because if you use your trusted Realtor, you don’t pay anything for those services.

There is a ton of great real estate information on the internet and you might come across what you’re looking for through my online database which is the same database Houston Association of Realtors provides, but I hope you will call me to help you with your real estate needs. It’s what I have been trained to do, it’s what I love to do, and I will work hard to find whatever you are looking for in the Houston area or anywhere else.

There has never been a better time to invest in foreclosures if you have a stable income and money to invest.  Due to employment cuts, foreclosures are up and there is a lot of inventory on the market to drive prices even lower.  If you have a reserve of cash and feel secure that you won’t be losing your job, invest in real estate while prices are at an all time low.  I can show you foreclosures and short sales currently on the market.  Call me today for amazing investment opportunities!

I hope everyone got out to vote today. We all know how important this election year is. I was in line to vote early this morning before I went into the office. The lady behind me in line kept complaining about how long it was taking the elderly poll worker to get people signed in to vote, but I just kept thinking to myself how thankful I am to live in America where I can vote and not get shot at while I’m standing in line waiting. It made me think of those first elections held in Iraq while our troops were establishing the new Iraqi government.

I hope you all took advantage of the Starbucks free coffee. I didn’t because I don’t like coffee myself, but I hope all of you enjoyed it just the same.

As I am home tonight mapping the changing colors of red and blue while the polls are closing around the country I am on the edge of my seat. I am not going to get my political intentions involved on my blog, but I do want to use this opportunity to remind you of some of the differences between Obama and McCain on some housing issues.

Looking back on some of the articles written about Obama over the last year he points to the special interests in Washington and corporate greed as the causes of the sub prime credit crisis. He criticized the deal reached in the Senate to freeze some foreclosures, saying a 30-day period wasn’t long enough. His plan against predatory lending included penalizing the lenders, but gave no explanation for how he would actually do that. He said he would provide a tax credit to homeowners to cover 10 percent of the interest on their mortgage every year and make an additional $10 billion in bonds available to help the middle class buy their first home or avoid foreclosure. He also wants to mandate accurate loan disclosure to ensure consumers understand their loan agreements. Now that last one is interesting because I can explain a mortgage or loan document to you over and over again and so can your lender, but no one can understand it for you.

Now on the other hand, there’s McCain who believes it is not the duty of government to bail anyone out, not the big banks nor the individual borrowers who acted irresponsibly, whether knowingly doing so or not. He said any government assistance to alleviate the housing crisis must be temporary and should be accompanied by reforms that aim to make the system more transparent and accountable to prevent a repeat of the crisis. He said no assistance should be given to people who bought houses to rent or as second homes. He does not support federal bailouts unless it has catastrophic effects on the entire financial marketplace nor does he support people buying homes with no money down like lenders have done over the past few years. This simply means people should have skin in the game when they are buying homes which will make them less likely to walk away from them when troubling times come knocking at the door.

Thinking about each of their views, I still come back to the saying that we got into this mess one house at a time and we will get out of it one house at a time. That is why I support the “Save the Dream” campaign. If you’re not familiar with that campaign please check out my earlier blog posts.

I hope we are able to get some rest, even though this close political run for the White House is stirring our minds tonight. As we look towards the new year, it is my belief that no matter which candidate wins, our housing market will improve. Our economy will rebound. Our country’s most sacred investment, our homes, will again accrue in value. It is my sincere hope and belief. It is my prayer.  God Bless America!

By Ilaina Jonas

NEW YORK (Reuters) – Foreclosure activity in September rose 21 percent from a year earlier but fell by double-digits from the prior month as some state laws slowed the foreclosure process, according to a monthly report by research firm RealtyTrac.

Foreclosure filings — default notices, auction sale notices and bank repossessions — fell by 12 percent from August to 265,968 in September, according to RealtyTrac, which records property in various stages of foreclosure.

That means one in every 475 U.S. households received a foreclosure filing in September, the firm said in its report released on Thursday.

“Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures,” James Saccacio, RealtyTrac chief executive, said in a statement.

Most significantly, a California law that requires lenders to make contact with borrowers at least 30 days before filing a Notice of Default (NOD) took effect in early September. The state saw a drop 51 percent from the previous month, according to RealtyTrac. That helped drive the national rate down, given that California accounts for close to a third of monthly U.S. foreclosures.

A new law in North Carolina resulted in a 66 percent drop in notices of defaults in September in that state.

However the reprieve may be short-lived. After a Massachusetts law requiring lenders to give homeowners 90-days to become current before initiating foreclosure proceedings took effect in May, the foreclosure rate dropped. But three months later initial foreclosure filings jumped and were back near levels seen a year earlier, RealtyTrac said.

The markets that once lead the housing boom topped the foreclosure list in September.

Nevada posted the highest foreclosure rate in September, with an 11 percent increase from the previous month, according to RealtyTrac. Foreclosure filings rose 137 percent from a year earlier to 13,022 in September translating into one in every 82 housing units — more than 5 times the national average.

Florida was second with one in every 178 housing units receiving a foreclosure filing in September. Foreclosure filings rose 44 percent from a year earlier to 47,956, according to RealtyTrac

California was third after seeing a 32 decrease from August but a 36 rise from a year earlier to 69,548. One in every 189 homes received a foreclosure filing in September.

Arizona, Georgia, Michigan, Ohio, New Jersey, Indiana and Colorado were among the top ten states with the highest foreclosure rate in September.

For the third quarter, U.S. foreclosure filings rose 3 percent from the prior quarter to 765,558 and were 71 percent higher than the third quarter 2007, RealtyTrac said.

Six states accounted for more than 60 percent of U.S. foreclosure activity in the third quarter. California accounted for more than 27 percent of the nation’s foreclosure activity, with 210,845 properties receiving a foreclosure filing during the quarter. That’s up 4 percent from the second quarter and more than 122 percent from the third quarter of 2007, according to RealtyTrac.

Florida came in second with 127,306 properties in some type of foreclosure activity in the third quarter, the second highest state total. Arizona was third with 40,419 properties receiving a foreclosure filing.

Ohio, Michigan and Nevada all reported foreclosure filings on more than 30,000 properties during the third quarter. While Ohio and Michigan saw foreclosure activity decline from the second quarter, Nevada saw it rise 22 percent, RealtyTrac said.

(Reporting by Ilaina Jonas; editing by Carol Bishopric)