Tag Archives: Cross River NY Homes

Short Sales Overtook REO Sales in Q3 | Cross River Real Estate

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For the first time ever, sales of properties in some stage of foreclosure (pre-foreclosure sales) outnumbered sales of bank-owned properties (REO) in the third quarter, as short sales continue to gain market share at the expense of REO and sales of completed foreclosures at auction.

Pre-foreclosure sales, largely short sales, increased 22 percent from the second quarter and were also up 22 percent from the third quarter of 2011, while the average sales price decreased 3 percent from the previous quarter and was down 5 percent from a year ago, according to RealtyTrac. A total of 98,125 pre-foreclosure sales occurred during the quarter compared to a total of 94,934 REO sales.

By contrast, REO sales increased 19 percent from the previous quarter but were still down 20 percent from the third quarter of 2011. A total of 193,059 U.S. properties in some stage of foreclosure or bank-owned (REO) were sold during the third quarter, an increase of 21 percent from the previous quarter, but still down 3 percent from the third quarter of 2011. Foreclosure-related sales accounted for 19 percent of all U.S. residential sales during the third quarter – down from 20 percent in the previous quarter but the same level as in the third quarter of 2011.

Pre-foreclosure properties sold for an average price of $191,025 in the third quarter, down 3 percent from the second quarter and down 5 percent from the third quarter of 2011. The average sales price of a pre-foreclosure residential property in the third quarter was 27 percent below the average sales price of a non-foreclosure residential property, up from a 25 percent discount in the previous quarter and a 19 percent discount in the third quarter of 2011.

The average REO sales price decreased 7 percent from the previous quarter but was still up 7 percent from the third quarter of 2011. REOs sold for an average price of $161,954 in the third quarter, down 7 percent from the second quarter but up 7 percent from the third quarter of 2011. The average sales price of a bank-owned home in the third quarter was 38 percent below the average price of a non-foreclosure home, up from a 33 percent discount in the second quarter but down from a 39 percent discount in the third quarter of 2011.

Homes in foreclosure or bank owned sold at an average price that was 32 percent below the average price of a home not in foreclosure, up from a 29 percent discount in the second quarter and a 31 percent discount in the third quarter of 2011.

Short sales of properties not in the foreclosure process increased 15 percent from the previous quarter and were up 17 percent from the third quarter of 2011. These non-foreclosure short sales accounted for an estimated 22 percent of all residential sales, bringing the total distressed sale share to an estimated 41 percent for the quarter. Non-foreclosure short sales prices in the third quarter fell short of the total amount of loans outstanding by an average of $82,312 per short sale. For all short sales, including non-foreclosure and in-foreclosure properties, the sales price was short of combined loan amounts by average of $94,896 per short sale.

“The shift toward earlier disposition of distressed properties continued in the third quarter as both lenders and at-risk homeowners are realizing that short sales are often a better alternative than foreclosure,” said Daren Blomquist, vice president of RealtyTrac. “However, the scheduled expiration of the Mortgage Forgiveness Debt Relief Act at the end of this year could stifle this trend toward short sales. If that law expires as scheduled, homeowners who agree to a short sale could see their income tax jump significantly because the portion of the unpaid loan balance not covered by the short sale proceeds will be considered taxable income in many cases.

Pre-foreclosure homes that sold in the third quarter took an average of 359 days to sell after starting the foreclosure process, up from an average of 319 days in the previous quarter and up from an average of 318 days in the third quarter of 2011.

Third parties purchased a total of 94,934 bank-owned (REO) residential properties in the third quarter, an increase of 19 percent from the previous quarter but down 20 percent from the third quarter of 2011. REO sales accounted for 10 percent of all residential sales during the quarter, the same as in the second quarter but down from 11 percent of sales in the third quarter of 2011.

Separately, Lender Processing Services reported yesterday that foreclosure starts declined significantly foreclosure starts over the last two months – down 21.9 percent in October and almost 48 percent on a year-over-year basis – leading to a nearly 7 percent drop in overall foreclosure inventory.

“LPS observed a drop-off in foreclosure starts in September that accelerated in October,” Blecher said. “This decline coincided with the implementation of new procedural changes outlined in the National Mortgage Settlement, which requires, among other things, that mortgage servicers provide written notice to borrowers 14 days prior to referring a delinquent loan to a foreclosure attorney. This has resulted in what is likely a temporary slowdown in foreclosure starts that we do not believe is indicative of a longer-term trend. However, we will continue to monitor this activity closely in the coming months.”

The LPS Mortgage Monitor reported that September loan originations were down, likely due to the shortened number of business days in the month. However, prepayment speeds (historically a good indicator of refinance activity) rebounded in October, and as such, LPS expects to see overall origination numbers pick up for that month. LPS also found that mortgage spreads remain elevated, averaging 197 basis points above the 10-Year Treasury rates, with interest rates consistent across all product types.

via realestateeconomywatch.com

Negligent life tenant raises foreclosure risk | Cross River Real Estate

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DEAR BENNY: My sisters and I “own” some Tennessee properties inherited from my late father, who died in 1984. In his will, he wanted to provide for his current wife (“B”), so she was given a “life estate” for her use of both properties during her lifetime. My sisters and I are the owners on the deeds. One of the properties is a residence, and the other is an income-producing commercial property.

Fast forward to today, and here’s the picture: The residential property has been abandoned for three years now, housing mold and the occasional vagrant. “B” has advanced Alzheimer’s, and is in a nursing facility; she seems destined to live forever in that regrettable state. Her guardian (daughter) states that “B” will not return to the residence, and they have stopped insuring it or paying real estate taxes on it.

We have received nothing from the county tax office, so I inquired and found the taxes are unpaid for the previous two years, as well as for this current year. After three years of nonpayment, the county can auction the property for back taxes. I asked them to send me the tax bills. My sisters and I are confused at how “B” and her guardian can renounce their financial responsibilities and yet retain control of the deteriorating property.

The commercial property is producing income for “B” and family, and the taxes are currently paid. We have offered to let “B” enjoy continuing beneficial control of the commercial property if she will abandon claims on the residence, so that we can save the house from complete destruction, but they say their attorney advises that they can’t do that, and they don’t really care anyway.

What are we to do? Is there a legal action to remedy this situation? –John

DEAR JOHN: I don’t know Tennessee law, but your question sounds like what we lawyers call a “waste issue” with respect to the residential property. The life tenant can be sued for waste, meaning that by her inaction, she is letting the property deteriorate (i.e., going to waste).

Usually it is a damage claim, but there are cases where, faced with facts showing that the life tenant is not properly maintaining the property, the court may order injunctive relief in the form of allowing the remainderpersons to receive the property. You all are the remainderpersons.

Either way, it would require paying off the life tenant for the remaining value of the life tenancy, which uses actuarial tables based on age of life tenant, value of property and applicable federal rate. Waste damages could be deducted from any payoff to the life tenant, as would taxes and other maintenance costs the life tenant is required to pay.

Life tenants are entitled to rental income on property. The life tenant must pay taxes, insurance and upkeep of the property, and is entitled to income unless specifically stated otherwise in a last will and testament or the instrument creating the life estate.

DEAR BENNY: What are the tax complications of gifting a home? In one of your columns you wrote: “If you die and leave the house to someone, that person gets the stepped-up basis. In other words, the value of the property at the time of death. …” My question is, wouldn’t the brother who received the gift have to pay an inheritance tax if the property was not in a trust? –Don

DEAR DON: Inheritance laws vary state by state. For example, Virginia and the District of Columbia have no inheritance tax. States that do have inheritance tax have exemptions for property passing to certain family members. A brother may or may not be exempt depending on state law.

You may also be thinking of estate tax, which is a transfer tax on the value of assets transferred on account of the decedent’s death, reaching probate and nonprobate assets. The federal exemption is currently $5.12 million. Under certain state laws, such as in Maryland and the District of Columbia, there is an estate tax imposed for assets that pass from a decedent. Both Maryland and the District of Columbia impose estate tax on assets of greater than $1 million. The tax is imposed on the estate rather than the recipient, unless there are insufficient assets in the estate to pay the tax.

I don’t know all of the state laws, so you really should consult an attorney in your state. Alternatively, many states have lots of information on their website, so check there first.

DEAR BENNY: We live in a large condominium complex and our unit happens to be located close enough to the lobby that we hear the elevator constantly. The sound, what I call harmonizing, has been occurring for the last five to six years. I have spoken to the management many times and they have responded by repairing, but the fix is never long-lasting.

This noise is mind-numbing since it is more of a scraping sound that on occasion seems to go right through you.

My question is, would it be too much if I told management that I will no longer pay assessments until this issue has been resolved? Would I be justified in doing this? I have looked in the bylaws and found nothing pertaining to an issue like this. What would you suggest? –Mark

DEAR MARK: No! No! No! I cannot under any circumstances recommend that any homeowner in a community association, whether that be a condominium, a cooperative or in a homeowners association, withhold the assessment.

There are several reasons. First, you admit that this problem has been plaguing you for several years. If you suddenly decide to withhold your association assessments, I seriously doubt that a judge would be sympathetic.

More importantly, as soon as you are delinquent, I suspect your association will start collection efforts, which can include filing a lawsuit against you. Once again, while you may have a legitimate concern, case law throughout this country makes it clear that a homeowner has an obligation to pay his assessment, regardless of any problems that the homeowner has.

You will be accused of just trying to get out of paying the assessment, and using the noise problem as an excuse.

I don’t mean to be unsympathetic; I just don’t think it’s a good idea to withhold your assessment. However, that does not mean you don’t have remedies. You claim that the noise is a major concern. Noise is subjective; I have often joked that my definition of noise is my son’s definition of music.

You need to prove that the noise is excessive. I suggest you ask the association board to hire an acoustical engineer to do a study of the noise level in your unit. If the board refuses, then you should hire the engineer yourself. Once you get a report that indicates that the noise in your apartment is above acceptable levels, present that report formally to the board and demand that they resolve the situation. A good engineer will also recommend possible solutions to the problem.

In the final analysis, you may have to file suit. At that point in time, you can start withholding your assessment, but make sure that you give it to someone (perhaps your attorney) to hold in escrow. You don’t want the judge to think you are a deadbeat, just trying to avoid paying the assessment.

This way, you are the plaintiff and not the defendant. In my opinion, it makes you look more favorable to a judge.

DEAR BENNY: We have Diamond points and want to know how to not burden our four adult kids with them. They cannot afford them. Actually, I do not want to burden my wife with them and wonder where I can get advice. –Phil

DEAR PHIL: I was not familiar with Diamond points, so I researched this on the Internet. Frankly, I was shocked at the number of websites offering to sell (or rent) those points. For my readers, Diamond Resorts International operates as a form of time share, and for those who have been following my column, you will know that I get more time-share questions than on any other subject.

I don’t know the answer and seek guidance from readers who may have had success in selling their points. However, I do want to repeat my strong advice: If you find someone who is prepared to sell your time share (or your points or any other similar product), under no circumstances should you give them any money upfront.

You should also contact the Better Business Bureau in your area to determine if it has had complaints about that company.

Also, contact your state’s attorney general, since there have been many lawsuits against fraudulent time-share sellers filed by a number of attorneys general (as well as a number of class actions filed by private attorneys.

via inman.com

Cross River NY Real Estate | Productivity Q&A

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Interested in doing a Q&A with me? What tech/apps/social media are you into?
 Email me (meg@inman.com) or Facebook/Tweet me your ideas!

I recently did a mini review of Evernote 5 so I thought who better than Dean Ouellette to do my next productivity Q&A with? I’ve had the privilege of sitting in on an Evernote class of Dean’s here in Phoenix. If you ever get the chance, I promise you won’t be disappointed!

1. Tell us about yourself Dean.
Hi, my name is Dean and I am an Evernote-a-holic. I have long been a tech geek and since I have got into real estate I have looked for ways to become more productive. Evernote has allowed me to do so, while also saving money. I am a former political consultant who moved to real estate five years ago in an effort to find more balance and a way to spend more time with my 5 kids. My real passion in life is coaching youth athletics. When I am not coaching kids I sell real estate in the Chandler/Phoenix market and teach real estate tech classes to other agents.

2. You’ve upgraded to Evernote 5. What are your overall thoughts?
Evernote 5 is out, and like always I was an early Beta user. When I first saw the videos on the web I was very excited.  It looks gorgeous and with the new changes in sharing and the ability to search both shared notes and personal notes at the same time I couldn’t wait to my hands on it. After a few weeks, I was not happy with some of the performance issues and changes, but Evernote being as responsive as they are fixed all those issues with version 5.0.1. After the latest version I am very pleased with the update!

3. What specific things about Evernote 5 will be boosting your productivity?
A few of the features I really like about Evernote 5 for productivity. Such as the type ahead search which gives you search suggestions based on your account. As you type a drop down list of suggestions appears such as things you have searched in the past and text from within your notes. This has made finding things even easier than before. As a keyboard shortcut user I also like the Command-J which makes jumping between notebooks quick and easy.  Some people are going to find the shortcuts on the top left a time saver, but I had used shortcuts in the old system. These just made it more obvious for the general user that the function is a possibility.


4. How has Evernote helped you in your business planning? Have you started doing those things for 2013 and beyond?
Evernote is used in just about every aspect of my business and planning. I have a master sheet with goals and timelines that I check out every Sunday night. This allows me to look at my business, see where I am, where I am going and to make sure I have moved forward this week to get closer to my goals.


5. A lot of people think that Evernote is just another app to try and help us get organized. What is it about Evernote that makes it stand out from the others especially in the real estate world.
Simplification. I could leave my answer at that one word. I used to use one program for doing all of my to-do and task management items. Another program for doing all of my transaction management. I had another program to track my leads and another program for managing just my short sale listings. Then I had Dropbox for storing all my folders and Gmail for storing all my emails. I spent a lot of time looking for the best systems to do all these aspects of my business. What I have been able to do is replace all of those old systems, all of which I liked, into one program for a small fraction of the cost I used to pay. Getting everything into one location saves me a lot of time because I never need to worry about where something is or do I have access to it from my phone or iPad or relatives house that I am visiting during the holidays. I always have access to it and know right where it is.


6. Any tips for agents that are just getting started with Evernote?
The best thing I ever did was a 30-day challenge. I challenged myself to use Evernote exclusively for 30 days. Every piece of paper, every business card, any to-do item, they all went into Evernote. After 30 days I saw the power because I never had to wonder what i did with that note or that phone number. I knew right where it was. Also learn to use tags. There are powerful things you can do with your notes once you learn the power of tagging. I have done videos on how I use tags for my to-do and action items. This is probably my favorite thing I do in Evernote.


7. I’ve been going a little app crazy lately & Laura’s NEXT post talks about wiping out those apps you just don’t use. What are some top apps that you can’t live without.
Jeff Lobb and myself did a panel on this very topic for Inman Connect San Francisco in 2012. I am an app junkie when it comes to trying out apps. But I am also a big believer in simplification and minimalism. If an app does not fix a problem for me and make my life easier I am going to pass. If an app will make my life easier I ask myself, is this something I can do with another app I am already using, and if so then I do that. If I have hundreds of apps it is only because I teach a lot of classes so feel I need to at least try most apps and know what they do. But as far as apps I use often, the short list of most use apps would be Evernote, Google Voice, PDF Expert, my Flex-MLS shortcut I created, Realtor.com branded app for my clients, Zite, Skype, Lift, and of course MLB At-Bat.
via next.inman.com

Housing Market Propels Economy | Cross River Realtor

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The U.S. housing market, which plunged the economy into recession five years ago and was a persistent drag on the recovery, is now a key economic driver at a time when other sectors are slowing.

Economists project U.S. gross domestic product growth will slow in the final three months of the year from the sluggish 2% annual rate in the third quarter. Businesses, unnerved by the prospect of federal tax increases and spending cuts known as the “fiscal cliff” taking effect in January, have slowed their pace of investment spending. Defense spending also is expected to slow, further weighing on growth.

But while those economic pillars weaken, an improving housing market is buoying consumers’ spirits and giving the economy its biggest lift since the real-estate boom. Macroeconomic Advisers projects the economy will grow at a 1.4% annual rate in the fourth quarter, with housing contributing 0.4 percentage point. IHS Global Insight is projecting a 1% growth rate, with housing contributing 0.53 of a percentage point—the largest contribution since 2005.

“Housing seems unfazed by the uncertainty that is plaguing other parts of the economy,” said Ben Herzon, an economist with Macroeconomic Advisers.

The real-estate recovery is just beginning, of course, and housing’s role in the overall economy remains diminished by five years of rising foreclosures and falling prices. New loans aren’t easy to come by as lenders grapple with distressed mortgages. Millions of homeowners owe more than their property is worth. Still, housing’s steady improvement is “going to offset some of the slowdown in manufacturing, and it is one of the reasons we think we’re likely not to see a double-dip recession,” said Doug Duncan, chief economist at Fannie Mae FNMA -1.79% .

Home prices rose 3.6% in September from a year ago, according to the S&P/Case-Shiller National Index out Tuesday. Prices are up 7% through the first nine months of 2012, which is the strongest rise since 2005 and puts prices on a trajectory to beat even the most optimistic forecasts from earlier this year. The gains also are broad-based, with the 20 cities tracked by the Case-Shiller index—except Chicago and New York—showing year-over-year gains.

The housing turnaround has been a boon for real-estate brokers and home builders, some of whom have seen their stock prices more than double this year. Retailers have seen a new stream of customers ready to decorate, furnish and upgrade their homes while investors are splashing out at hardware stores to renovate previously foreclosed homes. Banks, meantime, have posted record mortgage profits amid high refinance volumes and stronger demand for new loans.

Beyond those direct benefits are a number of indirect effects. Rising home values make homeowners feel better about their finances—making them more likely to spend and, with interest rates low, more comfortable about taking on debt. An index of confidence released Tuesday by the Conference Board rose to 73.7 in November, the highest level since February 2008.

“Housing’s share belies its importance to the economy,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank DBK.XE +2.32% . “The confidence effects are massive.”

Rising home prices are making consumers feel flush, which may eventually spur them to spend more: New home-equity lines of credit are projected to grow by 22% this year to $77 billion, a three-year high, according to Moody’s MCO -1.18% Analytics. “We can start to see the housing market as an assist to our growth rather than an anchor,” said Frank Blake, chief executive of retailer Home Depot Inc. HD -0.34% on an earnings call this month.

Rising home values have given Clara Soh confidence about her finances—and she is spending accordingly. The 35-year-old senior director at a pharmaceuticals trade group has spent the past five years saving more and spending less. With interest rates low, she recently refinanced a Portland, Ore., home that she has been renting out since her recent move to Washington, D.C. That lowered her payment by $300 a month—while the home has gained $100,000 in value. Now she plans to pay off her 30-year mortgage early and splurge a little: She recently spent $300 on clothes, $1,000 on climbing gear, and $700 on a new bike. “I feel a little more confident about the direction things are going. I have a little more of a cushion,” she said.

While rising prices now are driving the housing market forward, that couldn’t have happened without a painful cycle of losses. Lower prices and rock-bottom interest rates have boosted affordability. The average monthly mortgage payment on a median-price home in October, assuming a 10% down payment, fell to $720 at prevailing rates, down from nearly $1,270 at the end of 2005.

Rising rents and an uptick in household formation have ignited demand, which, in turn, has pushed inventories of homes for sale to their lowest level in at least a decade. The upshot: More buyers are chasing fewer homes, pushing up prices.

“Consumers are trying to find a house to buy and they can’t,” said Ivy Zelman, chief executive of research firm Zelman & Associates. In Phoenix, Maracay Homes WY 0.00% sold out four of its 12 developments this year and will add 10 new ones over the next six months. At Whispering Heights, a Maracay development in Chandler, Ariz., that courts move-up buyers with homes priced from $250,000, the company sold as many as 10 homes a month, up from three a month last year. They sold out in October.

via online.wsj.com

Are You Defining Your Niche Properly? | Cross River Realtor

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When I started my blog, I made the mistake of not defining my niche well enough.

In fact, I defined it with one word: “coding.”

Defining the niche my blog targeted with one word was never going to be enough. Perhaps for the pioneers of the internet it was okay, but in this day and age, with millions of websites in the competition, you need more than a one-word topic name for a niche.

I can’t emphasize how important it is to define your niche. You need to be able to know the focus of your blog inside out, what makes it so great and how it’s different from every other blog. A one word simply isn’t enough.

I didn’t know this when starting my blog. But when it did dawn on me, I knew I needed to change. I overhauled my About page, I changed my tagline, and I generally wasted a lot of time deciding on what the heck my site was about.

Luckily for me, the site was still new and unknown, and I doubt a single person noticed my change of focus, but this was time I could have spent building great content and promoting my blog.

I hope that you can learn from my mistakes. So here are the main things you need to think about when defining your niche.

Choose an audience, not a topic

This was the first mistake I made. When you decided what your blog was going to be about, did you choose a topic like business, blogging, or photography? Or in my case, coding?

I did. And it wasn’t long before I realized it wasn’t going to work. Coding is a hugely broad topic, and I had no idea who I was writing for. Beginners? Experienced coders? What kind of coding were they interested in? What needs did they have that I could address?

I didn’t even know my own blog! My blog posts were lacking purpose. They weren’t targeting anyone, they weren’t addressing any needs. No wonder no one was reading them!

Think of all the successful blogs you know. ProBlogger, Digital Photography School, Zen Habits. They don’t just blog about a topic, they’re aimed at a specific audience.

Coding was a weak topic. But those who are learning to write code and want to apply their skills to real projects—now that’s a very clearly defined audience.

Lessons

  • Don’t write about something, write for someone.
  • Know the focus of your blog, inside out.
  • With every blog post you write, ask yourself: what’s the purpose of this blog post and how does it address my audience’s needs?

Differentiate your blog from every other

When I was deciding on my clearly defined audience, there was one big thing I had in mind. How was my blog going to be different from all the rest?

If you’re blogging about blogging, you’re competing with ProBlogger. If you’re blogging about photography, you’re competing with Digital Photography School. If you’re blogging about coding like I am, you’re competing with Tuts+ and SitePoint.

How do you expect to stand out from the pack? You simply don’t stand a chance. Unless you differentiate your blog.

Here’s a little exercise Derek Halpern taught me. Identify the top ten blogs in your niche and for each one, explain how it is unique from all the others. Now decide how your blog can fit in amongst that top ten, with its own unique spin.

In my case, I decided that my blog was going to be focused on coding in the “real world”—guiding people along their learn to code journey, while also helping them apply their skills to real projects.

Lessons

  • Identify how your blog is different from all the others in your niche and how it can compete.
  • Ideally, choose a unique spin that no other blog shares.

Where do you want your blog to be in a year?

Knowing how you want your blog to grow is something that’s extremely helpful for defining your niche. It’s not as important as the previous two points, but it really does help.

Think about what kind of things you’ll be selling, what components there will be on your website, even how you want your site to look and be designed.

For me, I decided that in a year’s time I wanted to be selling WordPress themes and plugins on my website. So, to prepare for this, I now have a WordPress category in my blog which I add to regularly.

I also know that I want my website to be known as a supportive community for coders. Just knowing this gives me a better idea of what kind of content to add to my blog today.

Lessons

  • Have an idea in your head of what your blog will be when it’s fully mature.
  • Think about how it will make money, what it will be known for, and how it will look.
  • Use this insight to gain a better idea of what to focus your blog on today.

Strengthen your blog’s foundation

It doesn’t matter whether your blog is already established or not. Websites are dynamic—you can change them at any time. So take this advice: laser define your niche and strengthen your blog’s foundation.

What niche does your blog focus on? Tell us in the comments—and no one-word answers please!

via problogger.net