tom-beaty.com views on real estate

At first glance the new President Obama housing rescue plan is playing to mixed reviews. Some critics say it does not go far enough to solve the housing mess this country is now in.

Others express resentment at helping people who took on more house than they could afford or somehow mismanaged there money irresponsibly. These may have elements of truth in them, but the fact is the President has to begin to take action to stop the bleeding.

What most of the critics overlook is this is a beginning, not an ending of the actions the President will take. It’s unrealistic to think the President will solve this massive problem with one plan, action or decision.

The mortgage rescue plan basically gives banks a financial incentive to reduce homeowners mortgage payments a maximum of 31 percent of the homeowners income. The borrowers that will benefit most from this payment reduction are those who had a reasonable mortgage loan, but through no fault of their own lost their job or had their hours slashed.

Many critics resent footing part of the tax bill to help homeowners in trouble. However,this appears to be the quickest and best way to stop the flood of foreclosures.

One benefit those critics will receive is the decrease of the value of their homes slowing down and in time stopping. Because the more foreclosures in their neighborhood the more value their home loses.

The mortgage rescue plan will also help homeowners who are underwater so-to-speak. That is homeowners who owe more than their home is worth - provided they can still afford the monthly payments.

The plan will help these homeowners. How? By offering incentives to banks to reduce interest rates and restructure loans. In fact, banks who received bailouts funds are required to participate in the program.

What are the other requirements?
Home interest reductions and loan refinancing are available to loans backed by Fannie Mae (The Federal National Mortgage Association) or Freddie Mac (The Federal Home Loan Mortgage Corporation). Many of the sub prime loans were not backed by Fannie Mae or Freddie Mac.

Experts predict 1 out of 10 homeowners in trouble will be helped by the plan. But remember this is just the beginning. What the President is attempting to do is to restore confidence. It is similar to starting a dead battery on a cold night. It is a waste of time to focus on all the parts of the car like the engine, the transmission or the lights.

You have to focus on jump starting the battery first and the rest will start to fall in place. I’ll continue to keep you informed and walk you through this President Obama rescue plan and how it can help you as a homeowner. Stay tuned.

To get more tips and updates on the President Obama Rescue Plan go to http://blackhomeownernews.com

First lets start with why you should talk to the neighbors before you buy a home. Neighbors, although they may attempt to not be nosy, you can bet that most of them know everything that you need to know about the home you are looking at as well as the neighborhood. One time in my own neighborhood, although I did not know the people that lived there, I noticed that there were people at the house one day with hazmat masks and suits on for over one week unloading and cleaning the house. Had the new buyers asked anyone in the neighborhood about the house, they would have had more ammunition in negotiation after they knew this information.

We have also had the FBI do a stakeout on a neighbor’s house and arrest the occupants for counterfeiting. We have had two suicides in the homes and a guy arrested for child porn. All of these things have happened in a quiet suburbia neighborhood of only 58 homes in the 600K and above price range on a private golf course. Who would have thought? Well that is why unsuspecting buyers have continued to purchase in our little haven without knowledge until they go to the neighborhood party on various occasions and they learn that the previous owner in the home failed to tell them that the basement flooded and was left unoccupied for a year or so, so that it caused major mold problems so bad that a recovery team had to come in. Would you like to know this before you make a 600K investment?

So here is the game plan on talking to the neighbors!

Once you have decided on the home that you want to purchase, make sure that you visit the neighbors to get all of the scoop. Ask any question that comes to your mind, but here are some serious questions to ask. Go to at least 3 neighbors and do not make an offer until you talk to at least 3 to get the scoop.

1. How is the neighborhood association; strict, crazy or what?
2. Are there any assessments coming in the future?
3. How is the construction on the homes in the neighborhood?
4. Is there any crime in the neighborhood?
5. Is the neighborhood social?
6. How are the amenities?
7. Why are the neighbors (house you are looking at) moving?
8. Have they had any trouble with their house that you know of?
9. Is there anything that would prevent you from buying your own home again?
10. And anything else you want to know.

Rhonda Duffy, best known as a consumer advocate and the #1 Real Estate Agent in Georgia, hosts 2 weekly radio shows on A.M. talk channels in Atlanta, has licensed her business model to 55 cities, is a licensed auctioneer and a master coach in NLP.

The top 7 mistakes Realtors make while doing short sales make these listings more hassle, and far less likely to close, and end up costing agents money.

Mistake #1 - Not knowing the listing is a Short Sale from the very beginning.

If you don’t know that a home needs a short sale to get it sold before you list it, you may not find out until closing, or shortly before closing when the settlement statement is prepared. Then at the last minute you find out that the property isn’t going to close because the seller doesn’t have the money needed to bring to closing. All your time, effort and money you spent on this listing, and this transaction is wasted.

If you don’t realize that a listing is going to require a short sale at the time you are taking the listing, but you do know it by the time you’re signing a contract for the sale - by not being prepared beforehand you have set yourself up for time delays, and other problems. We often hear agents who have accomplished a short sale or two say they generally take 60 - 90 days. A short sale should take between 30 - 60 days. If it takes longer, then somewhere time is being wasted in the process, and I’m not talking about the time the lender wastes.

In a short sale situation, delays and taking too much time to get lender approval will often kill your deal. The buyer either can’t wait that long, or may give up and move on to another property.

But if you’re not prepared in advance, after getting the contract signed, you have to scramble to get together the documents you need for the short sale package that you will send the lender to get the approval. All the while you are wasting time, making it less likely that the buyer will wait for the lenders approval.

Sellers can be very slow at coming up with the financial documents that you will need, and you need these documents fast. Every day you waste at this point makes it less likely that you will get lender approval in time, before the buyer gives up and walks out on you.

If you are prepared in advance, once you get a completed contract it should take more than an hour to get the short sale sackage sent to the lender. No wasted time - no delays.

Not knowing that a listing is going to require a short sale also means you probably don’t have the listing agreement filled out appropriately, which could cause you trouble, and cost you money.

Chris Badger of Strategic Loss Mitigation, along with being a real estate Broker, is known as one of the top experts in Short Sales.

For more information see his blog at Short Sale Blog

For his complete Short Sale guide for agents, go to “The Ultimate Short Sale Success System”

There are various reasons why an owner of a multifamily property is looking to sell their property. You can use the seller’s motivational factor to assist you in approaching them. The motivating factor in selling a property can also enable you in locating sellers.

There are various public records that you can access and databanks at your disposal if you know what it is that you are looking for. Here is a list of some motivating factors and how you can transform that information into potential leads.

Divorce can be a motivating factor to sell. You can access divorce filings by contacting your local county clerk’s office.

Poor property management is also a big factor in a multifamily property owner wishing to sell. If you can find out which management company is running poorly operated properties, then you can find out who the owners are and contact the owners directly.

The death of a multifamily property owner is also a reason to sell. You can check to see what estates are in probate court and get your contact information there. Often in estate scenarios, you run into a bunch of family members who know nothing about managing property and they are looking for a buyer to take away that burden.

Multifamily properties that violate city code violations can be a great indicator of someone who would like to unload their headache. You can access city code violators by contacting your local city code enforcement office. There may be a fee to purchase the list.

A history of fire code violations can prompt property owners into selling as well. The owner may wish to get out from under the necessity of updating the facilities to meet fire code requirements. You can check with the city fire marshal to find out how to access that information.

Along this same line, you can also check out properties that are currently under some type of litigation. The owner of a property that is under a cloud of legal hassles is likely going to be extremely motivated to sell.

Owners who have become delinquent in paying the property taxes on their multifamily property may be looking for a buyer. Your county clerk’s office will have record of properties that have delinquent property taxes.

The factors that motivate a multifamily property owner to sell can be diverse and will definitely vary from person to person. It is not necessary to dwell on the “why” behind an owner’s deciding to sell as it is to make the most of that information. The reasons behind selling can both give you access to sellers and give you leverage in approaching them.

Lance Edwards is living proof of his mantra that you don’t have to “graduate” from single family to multifamily - you can start with multifamily; using none of your own money and not dealing with tenants and toilets. For FREE information, visit http://www.ApartmentWealthMachine.com.

Rental real estate offers both the potential for capital appreciation and current income for real estate investors. Are you looking for a great rental real estate market to invest into? If so, consider evaluating Indianapolis.

As the economy continues to struggle, many investors are turning to real estate investing for capital preservation, current income and capital appreciation. With these concepts in mind, why is Indianapolis a great rental market to invest into?

A Buyers Market

It is definitely still a Buyers market in Indianapolis right now. What does that mean? It means that you can often find great rental properties to invest in at well below market values. This ultimately means that you are increasing your opportunities for greater annual rental income as well as for long term capital appreciation as the housing market rebounds.

Most real estate professionals in the area see these market conditions continuing through the end of the year. So, buying opportunities are a plenty right now! Dont delay and take advantage of the current financial opportunity offered to investors currently.

Foreclosures are on the Rise

Another opportunity within the Indianapolis real estate market currently is foreclosures. Foreclosures are on the rise within the local area, up just under 3% from the prior year. While this is lower than the national average, foreclosures are still on the rise.

Foreclosed properties can often be acquired for values much lower than the current market. Depending upon which state of the foreclosure the property is purchased within, the prices could be staggering low. But, rental values within the same area have often not decreased. So, you can list your real estate investment property at current rental values and generate a greater net annual income than if you purchased another non-foreclosure property within the same area.

Affordable Housing Market

Another key feature of the Indianapolis real estate market is that in comparison with comparable cities nationwide, the real estate market is more affordable for traditional buyers. So, this real estate market is not only appealing to local investors, but to real estate investors nationwide.

The opportunity to acquire rental real estate properties at competitive values makes entering into this investment market more affordable for most people. Creating an entry point into the rental real estate market, Indianapolis could offer the ability for investors to leverage their properties to purchase additional real estate in the same area or in other parts of the country.

With depressed market values, increased foreclosure rates and competitive housing pricing, Indianapolis offers several key financial opportunities for real estate investors.

Whether you are a beginner or a professional real estate investor, Indianapolis offers a tremendous amount of financial opportunities to take advantage of. Whether you are searching for homes to flip, houses to resell or rental properties, Indianapolis provides great opportunities.

Cynthia Conradt invested in Real Estate due to being sick and tired of working for a Fortune 500 Company. She decided to take her own path in life vs. her boss dictating her path. Visit her blog at http://youcanbuycashflowrealestate.com to receive a copy of her FREE e-book.

The regulatory solution proposed herein is simple, yet far reaching. It comes in two parts, the first is to limit the amount lenders can loan to borrowers with a rather unique enforcement mechanism, and the second is to increase the penalties for borrowers who commit mortgage fraud. The following is not in legalese, but it contains the conceptual framework of potential legislation that could be enacted on the state and/or federal level. A detailed discussion of the text follows:

Loans for the purchase or refinance of residential real estate secured by a mortgage and recorded in the public record are limited by the following parameters based on the borrower’s documented income and general indebtedness and the appraised value of the property at the time of sale or refinance:

1. All payments must be calculated based on a 30-year fixed-rate conventionally-amortizing mortgage regardless of the loan program used. Negative amortization is not permitted.

2. The total debt-to-income ratio for the mortgage loan payment, taxes and insurance cannot exceed 28% of a borrower’s gross income.

3. The total debt-to-income of all debt obligations cannot exceed 36% of a borrower’s gross income.

4. The combined-loan-to-value of mortgage indebtedness cannot exceed 90% of the appraised value of the property or the purchase price, whichever value is smaller except in specially sanctioned government programs.

Any sums loaned in excess of these parameters do not need to be repaid by the borrower and no contractual provision is permitted that can be interpreted as limiting the borrower’s right to exercise this right, make the loan callable or otherwise abridge the mortgage agreement.

This last statement is the most critical. This is how the enforcement problem can be overcome. Regulators are pressured not to enforce laws when times are good, and decried for their lack of oversight when times are bad. If the oversight function becomes a potential civil matter policed by the borrowers themselves, the lenders know exactly what their risks and potential damages are.

Any lender foolish enough to make a loan outside of the parameters would not need to fear the wrath of regulators, they would need to fear the civil lawsuits brought by borrowers eager to get out of their contractual obligations. If any borrower could obtain debt forgiveness by simply proving their lender exceeded these guidelines based on the loan documents, no lender would do this, and regulatory oversight would be practically unnecessary.

One key to making this work is to prohibit lenders from introducing a “poison pill” to the loan documents that would make borrowers hesitant to bring suit, otherwise lenders would make their loan callable in the event of a legal challenge forcing the borrower to refinance or sell the property. Basically, if the borrower brought suit and won, they would see principal reduction equal to the deviation from the standards, if they brought suit and lost, they would have no penalty. Most of these cases would be decided by summary judgment based on a review of the loan documents thus minimizing court costs.

The result of these restrictions will be that all homeowners will have at least 10% equity in their properties unless they have borrowed from a government program like the FHA where the combined-loan-to-value can exceed the limits. This equity cushion would buffer lenders from predatory borrowing and a huge increase in foreclosures if prices were to decline.

Home equity in the United States has been declining since the mid 1980s, and it actually declined while prices rose during the housing bubble due to the rampant equity extraction. The lack of an equity cushion exacerbated the foreclosure problem as many homeowners who owed more on their mortgage than the house was worth simply stopped making payments and allowed the house to fall into foreclosure.

Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall?
Learn more and get FREE eBooks at: http://www.thegreathousingbubble.com/
Read the author’s daily dispatches at The Irvine Housing Blog: http://www.irvinehousingblog.com/

While housing market in the rest of the country is suffering and looking bleak, New Orleans seems to be making it through this economic crisis relatively unscathed. Like the rest of the nation, the area suffers from high unemployment, tighter and harder-to-get credit, and an overstocked inventory of homes for sell.

The number of foreclosures rose in the last year, but still remain less than 1% than the number of foreclosures in California. Overall, the home prices are slightly down from last year, but there are actually neighborhoods within the New Orleans area that experienced modest gains and continue to have very solid sales.

New Orleans never experienced record breaking growth or skyrocketing demands for housing like California and Florida did a few years back and that may be the reason the housing market has not fallen so far. But perhaps it has dodged a housing crisis because it was already at an economic low point following Hurricane Katrina in August 2005.

Whatever the reason, real estate in New Orleans remains relatively stable. There are few areas with the greater New Orleans area that ought to be examined: the historic French Quarter, Uptown, Bywater, Holy Cross, the 9th ward, and Tammany.

Growing Areas

Real estate is alive in the historic areas. Agents are doing well in Uptown. The appeal of Uptown was that it was never flooded and because of that, it is a full functioning town. Everything is still in working order, including the streetcars. With the public transportation and much of the housing located within close proximity to restaurants, nightlife, and the universities, it has become a somewhat of a hotspot for buyers.

As far as Bywater, Holy Cross, and the 9th ward are concerned, average sale prices increased 96% from before the storm. Many people argue that this price gain is a result of the heavy philanthropic activity in that area from the multiple foundations that organized rebuilding projects.

Declining Areas

Tammany is starting to behave more like the rest of the nation. After hurricane Katrina a large influx of people flocked to the north shore and those people were willing to pay a premium price for undamaged homes. In fact the demand was so great that builders began new developments to accommodate the demand.

Now with the strike of the economic recession and loans being more difficult to come by, the large inventory of new and available homes greatly outnumbers the number of buyers. But real estate in Tammany is not completely bleak. The sale of homes directly relates to the employment in the area and lately this area has lacked an increase of well paying jobs that often spur home buying.

However there is hope that more jobs will be available with the transfer of Chevron’s headquarters to the area and with the NASA Stennis space station in nearby Mississippi offering more work. Tammany may not be in the most favorable situation, but it may be some consolation that they are no worse off than the rest of the country.

Opportunities Available

This report may be depressing to the current home owners and for those with subprime credit with the desire to buy. But for those with the means, New Orleans real estate screams opportunity. Interest rates are low, prices are low, and homes and property are abundant. It will take years for the housing market and economy to bounce back to a vigorous vitality but when it does, those that buy now, will be on top.

New Orleans real estate agents will show you only those homes best suited to your needs in terms of size, style, features, location, accessibility to schools, transportation, shopping and other personal preferences. Visit www.realestatelouisiana.com to contact a Realtor now.

If you’re considering purchasing real estate, Louisiana might not be the first place to enter your mind. Many Louisiana residents are still dealing with the aftermath of 2005’s devastating Hurricane Katrina.

The unpredictable economy and increasing foreclosures across the country are also deterring many potential buyers and investors; however, those with good credit or funding will be able to capitalize on plummeting prices and a glut of eager sellers, making now a prime time to buy real estate in hotspot locations such as Louisiana.

Homebuyers will find that real estate in Louisiana is a great investment opportunity as many locations within the state have consistently seen rises in property value even in the wake of Hurricane Katrina. There are even more opportunities if you’re considering renovating a damaged or out of date home. When looking to purchase residential real estate, consider the following:

1. Location

When you’re choosing a location, don’t only consider the distance of your daily commute. Real estate located in major cities or similar desirable areas may be smaller or more costly but usually offer greater return on the investment. Even in a buyer’s market these kinds of property will be the first snapped up.

2. Cost of Renovation

Most properties, unless brand new, will require some of your own investment to create a more modern appeal and to repair any damages left by the previous owner. When negotiating, use this as a tool to lower the asking price, helping you secure a hefty profit in the future when the housing market goes up again.

3. Time

How long you plan to live on a property can make a difference on the value of the investment. Long-term dwellers will find a larger return and will have the opportunity to wait until the market is in their favor. If your stay is going to be short-term, you may even loose money on your investment during these difficult economic times.

4. Insurance

Real estate will come with one hefty price tag, and that’s insurance. Of course, the location of your property will help determine what kind of insurance and excess is necessary to cover your home, but it is always wise to be fully covered for many natural disasters or other incidents that may occur.

Not only is it a good time for potential home buyers. Commercial real estate buyers will also find a wealth of opportunities in the state. Now is the time to snap up one or many commercial properties which will expand and strengthen your investment portfolio.

Big cities, such as New Orleans, that are consistently on the rise and attracting tourists and new residents pose great opportunities for a variety of property units. Rents are also on the rise due to the rash of foreclosures, which means attracting tenants has never been easier. If you think Louisiana real estate might be for you, there are many qualified real estate agents, both commercial and residential, who can help you get started on choosing an investment opportunity.

If you’re considering investing in real estate in Louisiana, real estate agents can help you get the best property for your price. Visit www.realestatelouisiana.com to find a realtor who can help you with your transaction from start to finish.

Your first home, it can be very frustrating and
Scary but it can also be extremely exciting. It is a great feeling to be able to decorate how you want. Want to park a boat on the front lawn than go for it you can do what you want.

Unfortunately, things can go wrong, sometimes you will not quite be able to make your loan payments all the time. This is where private mortgage insurance comes in.

When you first buy your home, most lenders expect you to pay a large down payment of at least 20 percent or get some kind of insurance loan protection program that is called private mortgage insurance. this insurance coverage will protect the lender just in case you are ever unable to make your monthly payments. This insurance does not cover anything else though.

Many people do not bother to get the insurance because everything is fine. No job is 100 percent reliable in this economy. If you lose your job or an emergency comes up than you are protected.

There is no shortage of brokers out there and they come in all shapes and sizes with various personalities. What people do not realize is that if you have a very helpful and friendly broker, it can really make a difference in your entire attitude about getting a loan.

Some people are very meticulous when it comes to bills and Do not want to feel like they are gambling on the real estate market.

This is what helps make a fixed rate mortgage so appealing. The payments do not change so you have a much better chance of being able to save up money for home repairs, vacations, and new purchases.

This loan is also good for people who have to travel a lot. Knowing your payment will be the same when you get back from a far away place can really help your state of mind.

Most lenders who will give you a fixed rate mortgage will give you the option to pay off some of the principal early without any penalties. A nice large down payment will always improve your chances of being approved. If your credit is not completely top notch, the bigger the down payment, the more likely you will get approved. The banks and private lenders know they will be able to get their money back. Most self employed people need to have a down payment of up to 25 percent which can make it tough for small business owners to own homes until they are very well established.

Rex Steel has been involved with the mortgage industry for over 25 years. He has written countless informative
articles. To view more on the mortgage industry please visit his new and informative website.

Thailand is a country of southeastern Asia that extends southward along the Isthmus of Kra to the Malay Peninsula. The capital and largest city of Thailand is Bangkok. It is also the country’s center of political, commercial, industrial and cultural activities. Bangkok is known in Thai as “Krung Thep Mahanakorn” or more colloquially, “Krung Thep” with and estimated population of 63,038,247 covering the geographical area of about 513,115 km.

Thai culture has always been greatly influenced by China and India giving an exotic blend for which The Kingdom of Thailand has become famous. Thailand property is fast becoming the desire of overseas property buyers is accessible, affordable and a great place to buy property abroad. Buyers in Thailand tend to be mostly investors who are looking to cash in on the booming tourist industry however with increasing demand this is set to change.

There are some restrictions on the area, for example foreigners are not allowed to own the land in Thailand, and they may only own the building on such land. Another restriction is found on freehold condominium where only 49% of the development can be sold to foreign buyers.

The process of buying in Thailand can be complicated, but with good research, advice and an English-speaking lawyer, most of these complications can be avoided.

If you are planning on buying land, or a villa then you will be required to setup a Thai company which will cost around $1,000 and will also have on going fees of around $50 per month.

Once you’ve found the property you want, the agent will prepare a purchase agreement that will detail price, terms and conditions, settlement date etc. In most cases a 10% deposit will be required to secure the property (in most cases this is refundable should the sale not go through, as long as it was not your fault).

From January 2009 there was an increase in the properties rates in Thailand. Usually the properties are purchased by foreign investors are high compared to local investors.

Properties in Thailand are consistently popular with overseas buyers their main regions of interest are: Amnat Charoen, Ang Thong, Bangkok Metropolitan Area, Buri Ram, Chachoengsao, Chai Nat, Chaiyaphum, Chanthaburi, Chiang Mai, Chiang Rai, Chon Buri, Chumphon, Kalasin, Kamphaeng Phet, Kanchanaburi, Khon Kaen, Krabi, Lampang, Lamphun, Loei, Lop Buri, Mae Hong Son, Maha Sarakham, Mukdahan, Nakhon Nayok, Nakhon Pathom, Nakhon Phanom, Nong Khai, Nonthaburi, Pathum Thani, Pattani, Phangnga, Phatthalung, Phayao, Phetchabun, Phetchaburi, Prachuap Khiri Khan, Ratchaburi, Rayong, Roi Et, Sa Kaeo, Sakon Nakhon, Samut Prakan, Samut Sakhon, Samut Songkhran, Saraburi, Satun, Si Sa Ket, Sing Buri, Songkhla, Trang, Trat, Ubon Ratchathani, Udon Thani, Uthai Thani, Uttaradit, YasothonSatun, Ratchaburi, Chumphon, Phatthalung. There are many reasons for people opting to buy a property in these areas.

Mortgages in Thailand have always been notably impossible to get and have put many buyers off. Recently though a new branch of the Bangkok Bank has opened in Singapore, which has opened up borrowing possibilities. You should expect to get no more than 50% in finance, with the exception to some well-known developments where finance of nearer 70% is available.

Choose between the wide selection of ‘Investment Properties’, ‘New Builds’ and ‘Off Plans’ Overseas at http://www.global-choice.co.uk and know more about Overseas Investment Properties and the 6 Hot Reasons to invest, right now! Log to the website: Properties for sale in Florida