Market Trends of Generation Y

I found an article that was pretty interesting.  It compared real estate trends among the different generations. Generation Y is men and women from 18 to 34 years of age—largely prefer downtown living, often in rental apartments with easy access to walkable neighborhoods and public transportation.

The Urban Land Institute, or ULI, the land-use association that long has championed dense development over sprawl, this week plans to release the results of a survey of generational housing preferences, highlighting those of Generation Y.

The survey found that Generation Y is more likely than older generations to live in apartments and in downtowns, with 54% favoring renting and 39% favoring city living.

Some real estate professionals apparently disagree with the surveys and state that Generation Y members rent out of necessity and not as a preference.  I can see this point since most Generation Yers do not seem to work LOL. KIDDING!!! Increased costs of parking and maintaining vehicles, and greater access to public transportation help Gen Yers decide on urban environments, including both studios and condos. Many complexes also come with amenities Gen Yers enjoy including outdoor pool areas, gas grills, gyms, and social rooms. These properties also require much less maintenance than the average home.

The housing and mortgage crisis over the past five years may have scared some Gen Y members away from investing in real estate for the time being. They may have seen their parents lose fortunes in home equity and 401K funds. Perhaps, they are waiting it out to see if this is truly a real estate market rebound, or just a blip. Rising interest rates may force Gen Yers to reconsider as potential payments and rents head skyward.

Anyway, it all seemed pretty interesting to me..especially since I have never seen a study such as this. However, it seems that this type of information would be important for marketing purposes as it relates to an increasingly significant segment of the population.

Paddy Deighan J.D. Ph.D

http://www.homesavers.pro

 

An Important Update on Facebook Privacy

I have never been a particular fan of Facebook. They do not respect privacy and they allow politics to interfere in the social networking sphere and there is no place for this in their reality.. They are allowed to do things with information that you are not allowed to do…adding to my disdain for them. True, they have SOME usefulness and hence, Facebook must be tolerated to some degree. You have all seen the Facebook ads that show us an image of one of our friends and notify us that this particular friend likes some particular brand or product.  However, were you aware that these images could not only be used to endorse products that you have already “liked,” but also those that have nothing whatsoever to do with you AND without your providing any permission other than simply using Facebook?

Facebook recently settled a class action lawsuit regarding this practice. The settlement and resulting privacy-policy “clarifications” actually just make the practice legitimate. According to Facebook’s revised privacy policy, “you give us permission to use your name, profile picture, content, and information in connection with commercial, sponsored, or related content…served or enhanced by us…without any compensation to you.” WHAT????? This means Facebook can use your images basically anywhere, at any time, and for any reason.

The class-action lawsuit was brought by a man whose wife’s image was used in this manner to advertise a “hot singles” service, but despite the fact that Facebook ultimately settled, the judge who approved the settlement even said that “it is far from clear [that the plaintiffs] could ever have shown they were actually harmed in any meaningful way.” The only way to opt out of this term of use is to quit Facebook completely. Facebook has also received criticism lately for another relatively new feature that takes facial recognition to a new level in order to suggest tagging options for pictures. Not to mention that htis comes from a paragon of privacy protection, ABC News LOL Be forewarned!!!

Paddy Deighan J.D. Ph.D

http://www.homesavers.pro

 

Pluses and Minuses of the HAMP Loan Modification Program

The Home Affordable Modification Program (HAMP) has been something of a disappointment nearly from its inception. After loudly touting the program’s ability to help 4 million borrowers, the current administration was forced to concede it had barely helped a fraction of that number and some advocates and administrators in the program actually came right out and declared the program to be a failure. However, in recent months, there has been a lot of discussion about how HAMP is finally gaining momentum.  Hundreds of thousands of borrowers are getting the loan modifications that they desperately need. There is another, untold aspect of the story however. The untold story is that many home owners are defaulting on the modified loans. Sometimes the default is literally just a few months after modification.

According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), of the roughly 1.2 million mortgage modifications made through HAMP since its inception in 2009, 306,000 have re-defaulted.  This is a default rate on modification of over 25%. It is either good or bad..…it depends upon how you want to look at it.

 Furthermore, homeowners who entered the HAMP program in 2009 are re-defaulting at a rate of 46 percent. This statistic seems to be very alarming. “The Treasury needs to research why so many borrowers are dropping out of the program,” said head of SIGTARP Christy Romero. Her agency’s report indicates that homeowners who received only small reductions in their loan payments or overall debt, were still underwater on their mortgages, or had subprime credit scores and high overall debt at the time of modification were most likely to default. As of the end of April of 2013, taxpayers had lost roughly $815 million on permanent HAMP modifications that had re-defaulted.OUCHHHHHHH The U.S. Treasury originally allocated $19.1 billion to HAMP and, so far, has spent $4.4 billion. HAMP was recently extended to 2015.

Paddy Deighan J.D. Ph.D

http://www.homesavers.pro

 

Encouraging Foreclosure Statistics Indicate True Real Estate Market Recovery

There are some additional real estate recovery statistics that indicate more good news. In June of 2013 total foreclosure filings dropped to 127,790.  This number is a 35 percent decrease as compared to 2012. It is also the lowest monthly total since December 2006!!  CNN Money analysts have analyzed these numbers and CNN declared that “the long national foreclosure nightmare is nearing its end.

RealtyTrac vice president Daren Blomquist is also echoing this positive position. Mr. Blomquist  stated that “the housing market could be back to pre-mortgage meltdown levels before the end of the year”. Blomquist further observed that,  “it is becoming increasingly evident that foreclosures are no longer a problem nationally,” although he admitted that they might still be a small issue in “several state and local markets.”

Actual repossessions are down in 34 of 50 states last month as well. Arkansas, Oklahoma, and Maryland saw “significant increases” in these actions. If banks continue at their current rate, 2013 will see about 500,000 repossessions. This compares favorably to the 671,000 repossessions in 2012. Blomquist predicted that once the foreclosure timelines start to decline, the recovery will truly be fully underway.

Presently, it takes an average of 526 days nationally for properties to go through the entire foreclosure process. “Once that number turns the corner and starts going down, that will be a strong indication that the lenders and courts have worked through the [foreclosure] backlog and now…are dealing with the fresher vintage of foreclosures,” he said. However, I nned to point out that the “average” of 526 days for foreclosure is misleading if viewed by itself.  Two out of three foreclosures end in default and those cases take less than 45 days to adjudicate. Accordingly, the ones that are contested can easily take 4 years or longer. There are valid reasons for this as distressed home owners DO have options, such as Deed in Lieu, forbearance,  loan modification, short sale, quiet title and wrongful foreclosure actions.

Paddy Deighan J.D. Ph.D

http://www.homesavers.pro

 

New Fannie Mae and Freddie Mac Short Sale Guidelines

There are changes looming in the guidelines which Fannie Mae and Freddie Mac utilize relative to the multiple listing services (MLS). Beginning August 1st, each new short sale listing must maintain an “active” status for a minimum of five days. Additionally, the five days must a weekend.

“Along with our regulator, the Federal Housing Finance Authority (FHFA), we decided to take this step in response to Realtors’ concerns,” says Jane Severn, director of marketing at Fannie Mae. “We’ve had cases where a short sale property is listed in the MLS as ‘active’ and, in less than an hour, it goes into ‘pending’ status.”

“Realtors should identify any short-sale listings that would require approval by Fannie Mae or Freddie Mac,” Grant says. “If the new rules apply to a listing added to the MLS after Aug. 1, we recommend that agents put a disclaimer in MLS comments telling cooperating brokers that the seller must keep the listing active for five days, including a weekend. This disclaimer would allow cooperating agents to structure their offers accordingly.”

Grant says it’s important to remember two things: that the new rule only affects Fannie Mae and Freddie Mac short sales; and, though it directly affects sellers, it also indirectly impacts buyers’ offers.

Severn says Fannie Mae wants their “short sale listings to be marketed in a manner that allows the market to see the listing.” She notes that their current policy for properties Fannie Mae owns (REO listings) reflects the same philosophy since Fannie Mae won’t evaluate offers until the listing has been in the MLS and “active” for at least three days.

Under Fannie Mae and Freddie Mac’s rules, the short sale property must be listed in an MLS that covers its geographic area, and a printed copy of the property’s MLS listing must be kept on file. If a property is located in an area not covered by an MLS, it must be advertised in a manner customary for the same period of time – at least five consecutive calendar days that includes one weekend.

Paddy Deighan JD Ph.D

http:://www.homesavers.pro

Number of Deficiency Judgment Lawsuit on the RISE!!

There are a dramatic number of deficiency judgment lawsuits being filed. Many experts predicted this and it is happening. There is just too much money sitting out there for the lenders to ignore.   Many states have lengthy statute of limitations and lenders are taking advantage of it. Additionally, many home owners who were in distress are now financially stable and this makes them an easier target.

Home owners quickly breathe a sigh of relief when the short sale is completed. However, for many owners, this is the start of their problems.  In the past, it was possible to get a “waiver” of deficiency as part of the short sale negotiation process. However, it is rare to receive a waiver today.  You can ask for a waiver, but in all likelihood, it will not be granted.

So, what can you do??

The first thing to do is determine what the lender must do in order to enforce its rights relative to the deficiency judgment. In some judicial foreclosure cases, the lender has also received the right to seek a deficiency judgment when it received its final judgment. In other situations, the lender must take the additional step and file a lawsuit in order to seek a deficiency judgment.  Many home owners transfer assets out of their name when they believe that they are going to be sued on a deficiency judgment.  By then, it is too late as the lender has already performed an asset check PRIOR to filing the deficiency judgment complaint.

It is also interesting to note that the junior lien holders are more likely to pursue a deficiency judgment!! The reason for this is that they frequently received a very small percentage of the loan balance during the short sale.   There is no seniority when it comes to a deficiency judgment. The junior lien holders have as much chance of receiving judgment as the superior lien holders.

There are measures that can be taken by prudent short sellers….

Paddy Deighan J.D. Ph.D

http://www.homesavers.pro

New York Puts Foreclosure Abuse Settlement Funds to Good Use

New York is making best use of the money that it received from the Attorney General foreclosure lawsuit. New York attorney general Eric Schneiderman played a key role in negotiating the settlement and he earned significant money for his own state. In last year’s foreclosure abuse settlement with five of the country’s largest banks Mr. Scheiderman announced this week that he will I use $20 million of that money to “rebuild and restore neighborhoods hit hard by the housing crisis.” Schneiderman noted that his office has already provided “roughly $2 billion in relief to homeowners throughout the state, but it’s not nearly enough”. He believes that the key to truly effecting a recovery lies in empowering his state’s land banks, which can acquire vacant, abandoned, or foreclosed properties and then rebuild, demolish, or redesign them. Mr. Schneiderman believes that the land banks will best be able to truly “empower local communities to rebuild their own neighborhoods” and said that his office will “invite competitive proposals from land banks to directly address the effects and aftermath of the foreclosure crisis.”

 

Schneiderman is presently engaged in suing – and re-suing – several banks for foreclosure abuse in New York and for failing to honor the terms of the foreclosure abuse settlement from last year. His movement in support of landbanks actually could result in increased foreclosures in some areas of the state since land banks often seize control of property via tax delinquency. In Syracuse, nine percent of all property iseligible for seizure due to property tax delinquency at this time. However, land banks tend to focus on properties that are not being maintained or that have been abandoned rather than inhabited homes. The land banks have previously been reluctant to seize property because there were no ready buyers for the properties and they did not have the funds to rebuild, restore, or maintain on their own.

Paddy Deighan J.D. Ph.D

http://www.homesavers.pro