Tag Archives: Cross River NY Real Estate

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

Families Rediscover Multigenerational Living | Cross River Real Estate

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Seventy-five years ago, when America was emerging from the Depression and homeownership was less affordable, one out of four Americans lived in homes with grandparents and adult siblings. Today’s housing depression has again forced generations to move in together, but as the housing recovery takes hold, many plan to stay together and revive the multigenerational lifestyle of the past.

In 2011, 17.9 percent of Americans 18 and older lived in someone else’s household, up from 16.0 percent in 2007, prior to the start of the economic recession, the Census Bureau reported today. Some 41.2 million adults in 2011 lived in a household in which they were not the householder, the householder’s spouse or the householder’s cohabiting partner.

The return to multigenerational living has been remarkable and may be more significant than a temporary way to save money. Just prior to World War II, a quarter of Americans lived with extended family, as the U.S. struggled through the Great Depression. In 1980, only 12 percent of the nation’s adults lived in multigenerational households, but by 2011, as millions lost the homes to foreclosures and lending standards tightened, some 17.3 percent of adults. Between and 2011, the number of these additional adults increased by 1.9 million.

In recent years, along with multigenerational households, the phenomenon of “shared households” households that contain an “additional adult” (a resident 18 and older who is neither the householder, the householder’s spouse, nor the householder’s cohabiting partner) has increased as a proportion of all U.S. households. In 2007, prior to the start of the economic recession, 19.8 million or 17.6 percent of households were shared. Nationally, shared households peaked in 2010 at 22.2 million or 19.4 percent of all households and declined to 22.0 million or 19.2 percent of households in 2011. Not surprisingly, household sharing is most prevalent in high-cost areas, like the District of Columbia, California, Florida, Hawaii, New York and Nevada, where 20 percent or more of the population 18 and older lived in someone else’s household in 2011.

Multigenerational households include adult children as well as grandparents. Almost half of all additional adults were children of the householder. Additional adults can also be parents of the householder (9.6 percent), siblings (8.1 percent) and other relatives (16.0 percent). Nonrelatives accounted for the remaining 19.2 percent. The share of additional adults who were children of the householder increased by 1.7 percentage points between 2007 and 2011, while the percentage that was parents or nonrelatives declined, according to the census bureau.

Many of the adults sharing a household with relatives would have been in poverty if they had been living on their own. The official poverty rate for additional adults (based on family income) in 2011 was 15.8 percent. However, their poverty rate would have been 55.5 percent had they lived alone.

Though many families that moved in together in recent years to save money during the housing depression, many are planning to stay together as the economy improves. ERA Real Estate, a franchise network of 31,000 brokers and sales associates in 2,300 offices, reported yesterday that ERA brokers are seeing an emerging trend of multiple generations living under one roof. Buyers in the market today are planning for their future by keeping their immediate and extended family top-of-mind when purchasing a home.

“One trend we are seeing is buyers choosing homes based on their capability to accommodate more than one family group,” said broker Becky Russell of ERA Pacesetters Realty in Cary, N.C. “Therefore, they also take their extended family’s opinions and needs into consideration when deciding on a property and location.”

Ranelle Birmingham, managing broker of ERA Sarver in Leesville, La. said that the multicultural influence of nearby Fort Polk has a lot to do with the multigenerational living in her market, which has not seen many foreclosures. Retiring military families in her market often come from other cultures and expect to live with their extended families. But the trend includes young people as well, including siblings who join together to buy a property that they could not afford on their own.

Builders in Leesville are adapting to the new market with homes that include bedrooms with baths apart from the master suite, separate entrances, and additional space for privacy. Local lenders also are accustomed to multiple incomes and combined credit scores to qualify multifamily buyers, Ms. Birmingham said.

Implications of the multigenerational trend for the real estate industry are significant. Multigenerational living could result in fewer young, single first-time buyers, a group that is generally having a hard time qualifying for financing anyway, and fewer retirement home buyers. However the tradeoff is larger, more expensive properties for larger families in need of more room and generational privacy. Additional incomes from young adults and retirees on Social Security could help families qualify for larger mortgages at today’s low interest rates. Builders and remodelers might find a new market for larger homes designed for the multigenerational market with features to facilitate aging in place.

via realestateeconomywatch.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