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In This Issue:
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Presents Come
Early To Default Research
A few weeks ago I was given my
first present of the season by an old friend of Default Research - Atlantic
Publishing! Many of you know I was honored to write the forward for “The
Pre-Foreclosure Real Estate Handbook” almost two years ago. Atlantic
Publishing has asked for Default Research’s assistance again as they embark on a
new book, “The Complete Guide to Locating, Negotiating, and Buying Real
Estate Foreclosures.” Not only was this a great present, it is an honor for
me to represent Default Research in providing more education about the
foreclosure process.
As we wrap up the year,
education has become an even more important part of the goal here at Default
Research. This month, we have two experts in the mortgage field, Bill Wilkinson
of Wilkinson Financial in Rockville, MD, and Shane Becker, a Branch
Manager-Senior Loan Officer at Robbins & Lloyd Mortgage in New York City. Both
of these knowledgeable sources give their insights into the foreclosure crisis
as a disappointing 2007 comes to an end.
As our year at Default Research
winds down, I encourage all of our clients to not slow down a bit as the holiday
season gets into full swing. Let other investors take the next six weeks off
while you continue to use the freshest leads in the business to help families in
distress and grow your own business! Thank you for helping to make 2007 our
best year yet, and I look forward to working with all of our clients in 2008. |
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California Foreclosures Increase 221 Percent In
October 2007
Foreclosures Increase 18,975 in One Year
Default Research, the
fastest growing foreclosure research company in the nation, is reporting that
California foreclosure filings are up a dramatic 221 percent in October 2007
compared to the same time last year.
According to Default
Research (www.defaultresearch.com),
San Diego County led the state with 3,427 foreclosure filings, up 400 percent in
October. Riverside and Los Angeles Counties followed San Diego with foreclosure
increases of 290 percent and 160 percent respectively.
“Right now, Southern
California is the epicenter of the foreclosure crisis,” said Serdar Bankaci,
President/CEO of Default Research Inc. “Out of the five largest counties in the
state, San Diego is hardest hit, followed by Riverside and Los Angeles. Last
month was bad for the Golden State and the coming months could be even worse.”
Bankaci explained that
California could see an even bigger spike in foreclosures in the next two
quarters as a large number of three year adjustable rate mortgages are due to
reset. Many of those deals were made in late 2004 and 2005 when the market was
booming.
“California had some of the
most expensive real estate in the country, and many people bought homes they
couldn’t afford with teaser loans,” said Bankaci, whose company provides the
freshest foreclosure leads and most accurate foreclosure statistics in the
country. “Those families who lived beyond their means are going to go from boom
to bust and unfortunately join a growing number of Americans in foreclosure.”
For a full listing of the
foreclosure statistics in the counties covered by Default Research in
California, please click on,
www.newsletter.defaultresearch.com. With an emphasis on educating people
about the foreclosure crisis, the Default Research site also offers extensive
foreclosure resources, links to free informational teleseminars and a link to
their growing national monthly foreclosure education newsletter, The
Homestand.
Default Research is the
national leader in foreclosure research. More information about Default Research
can be found at its Web site:
www.defaultresearch.com. |
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Home Owners In Foreclosure –
What Were They Thinking?
There’s no end in
sight to the avalanche of foreclosures, which in turn creates a multitude of
buying and re-selling opportunities for savvy Default Research investors. Before
you can help a family in distress, it is very important to understand what
caused these seemingly innocent borrowers to find themselves in such desperate
straights. With this important background knowledge and the freshest
foreclosure leads in the business, you will be even more successful when dealing
with these mortgage holders and have a better understanding of what led to this
nationwide dilemma.
Very simply, the
crisis began years ago with sub prime mortgages. Many innocent people were
offered 100 percent financing and never had to show any income or assets. The
majority of these outrageous loans were adjustable rate mortgages with
prepayment penalties. For example, if a three-year mortgage was set to adjust
in its second year, the payment would go up, but the consumer could not afford
to re-finance without paying a stiff penalty. Now, that dollar amount could be
up to 6 months interest, or thousands of dollars. If a consumer could not
afford the new payment or the penalty to refinance, generally the payment would
be late, lowering the homeowner’s credit score and making it impossible to
re-finance in any case. Bottom line: If the family could not afford the monthly
payment and they could not re-finance to get a lower monthly payment, the only
choice was foreclosure.
Loss of home equity
is another reason for the increase in foreclosures. Remember, sub prime
mortgages often allow 100 percent financing, which means the borrower starts out
with no home equity, having bought at market value with nothing down. This
borrower was planning to re-finance when the loan adjusted and counted on
increased home equity. The basic thinking is that the homeowner will buy the
house with 100 percent financing, gain equity, then re-finance into a lower
interest rate, which will make the monthly payments more affordable. In some
cases this did happen.
In fact, from
2002-2006, home values appreciated so much that borrowers could re-finance,
pulling cash out and using it to make their payments. Homes basically became
ATM’s for the owners! However, once the families were out of cash, they were
stuck again re-financing and using their home equity for their mortgage
payments. This final result for many families was foreclosure because the
family gained equity, continually using any gains just to stay afloat. In early
2007, house values stopped appreciating. This was big trouble since it stopped
the cycle cold – no equity meant no more re-financing, and no more cash with
which to make the payments; once again, making foreclosure the only option.
Unfortunately, the
picture I painted above that caused the foreclosure crisis is not a pretty one.
We all learn from our mistakes and right now as the year ends, this country is
learning about, among other things in real estate, predatory lending and the
dangers of refinancing. With 2007 and those mistakes in the past, we can all
hope that in 2008, with legislation and education, the foreclosure crisis will
begin to end.
Shane Backer is a Branch Manager-Senior Loan Officer for Robbins & Lloyd
Mortgage in New York City. He can be reached by e-mail at
ShaneB@robbinslloydny.com.
To
learn more about his company, log onto their Web site at
http://www.ezmortgagedirect.com |
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Free Book
Order the freshest leads
from any Default Research county for six or more months and receive a free
copy of, “The
Pre-Foreclosure Real Estate Handbook: Insider Secrets to Locating and Purchasing
Pre-Foreclosed Properties in Any Market.”
Be sure to check out the
forward in the free book written by Default Research President/CEO
Serdar Bankaci. Again, to get your free copy, order any county for six
months. To order please call 888-211-8396
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Arizona Foreclosures Increase 164 Percent In
October 2007
Maricopa and Pima Counties See 2,829 New
Foreclosures in October 2007
Mt. Pleasant, PA
– Default Research, the fastest growing foreclosure research company in the
nation, is reporting that foreclosure filings in Pima and Maricopa Counties rose
from 1,068 in October 2006 to 2,829 in October 2007.
According to
Default Research (www.defaultresearch.com),
Maricopa County led the state with 2,523 foreclosures and Pima County had 306 in
the month of October, which is an increase of 170 percent for Maricopa and 96
percent for Pima. While Pima County has had -some volatility in its foreclosure
statistics, Maricopa County’s foreclosure rates have been skyrocketing for the
past 13 months.
“Increasing
foreclosure numbers and empty homes are unfortunately going to be the norm for
at least the next three quarters in the Phoenix area,” said Serdar Bankaci,
President/CEO of Default Research. “Our clients in Arizona have reported
working with families in trouble who used their homes as ATM’s during times of
high home appreciation, and chose to refinance. Now, many banks are foreclosing
on homes with mortgages well over the value of the property.”
While the debate
rages around the country as to what has caused the foreclosure crisis, many
homeowners in Phoenix are responsible for losing their homes because they lied
about their income.
“These home
buyers were making $50,000 a year, but they didn’t file accurate document loans
with the banks and just made up their income,” said Bankaci whose company
provides the freshest foreclosure leads and most accurate foreclosure statistics
in the country. “While those homeowners are paying for their mistake, Phoenix
area neighborhoods are also losing value as homes are left abandoned and in
horrible condition.”
For a full
listing of the foreclosure statistics in the counties covered by Default
Research in Arizona, go to
www.newsletter.defaultresearch.com. With an emphasis on educating people
about the foreclosure crisis, the Default Research site also offers extensive
foreclosure resources, links to free informational teleseminars, and a link to
their growing national monthly foreclosure education newsletter, The
Homestand.
Default Research
is the national leader in foreclosure research. More information about Default
Research can be found at its Web site:
www.defaultresearch.com. |
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Wonder if this is possible? It is if you are totally prepared and have a well- done professional presentation during that critical moment.
Get More Information
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The Triad Real Estate Economy in
South Florida
According to
veteran mortgage broker Bill Wilkinson, a Maryland native who resides in Florida
in the winter, the Sunshine State unlike any other state in the US has a very
different prospective when it comes to real estate and the economy that feeds
it. Because he lives in and studies the Florida market, Wilkinson has a unique
perspective that he offered to share with Default Research.
The Normal Work Economy
The employment base
is very interesting in Florida. We have the everyday worker - blue and white
collar - who faithfully go to and from work everyday. General employment
conditions are reasonably stable; however worker confidence is down by 42% as
compared to the national low of 30%. That means that a lot of people do not
feel very good about their working prosperity and feel that the outlook is not
in their favor. With this attitude, most will back off buying real estate and
continue to rent for fear of a job loss. The trend indicates a migration
elsewhere and a population downturn. Not a good sign for real estate in Florida!
TInvestors And Second Home
Buyers - A Very Hard Hit Sector
When people feel
insecure they want to get out of real estate, especially in investment
properties. There is a lot of this movement going on in Florida and across the
country when it comes to the condo markets. This particular market is dying
fast and there seems to be a huge inventory, especially in Florida. That means
values are going south (pun not intended). Lenders are redlining condo financing
which is making loans for condos a touchy proposition for refinancing and
purchase. Condo owners are losing significant value with many in the “Red
Zone.” Don’t be surprised to see many turn off the lights and walk away with
lenders taking over the property to re-sell at a much lower price. Another bad
scene in Florida!
Vacation homes
These homes are
available for sale but are being passed over since everyone believes a better
deal is just around the corner. Vacationers are looking for rentals rather than
sales right now. The prime sellers are lenders and banks who may just want to
dump their foreclosure into a ready sale with a good financing deal. When that
happens, look for a crowd.
To top it all off,
insurance premiums are skyrocketing to levels nobody has ever seen before.
Premiums are in the thousands each year and flood insurance is not usually
included. . Taxes are hurting the retired and poor because both groups are
barley able to live on their social security payments. This year, the
legislative body in Florida voted to give homeowners some relief, which is a
good thing. However, taxes still need to be lowered for many. A real
possibility under these conditions might be a migration north to the Carolinas.
In conclusion, all
of these conditions, coupled with the sub-prime issues, will cause an ever
increasing number of foreclosures in the Sunshine State. Unfortunately for
Florida, it’s all just getting started folks. It is sad to say for a big time
fan of Florida, there is still a lot of weeping and gnashing of teeth to be felt
in the coming months.
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Detroit
Foreclosures Up 118 Percent In October 2007
Company to Offer Free Foreclosure Leads at Detroit Area Convention
Default Research, the fastest
growing foreclosure research company in the nation, is reporting that Detroit
foreclosures increased by 118 percent in October 2007 over the same time last
year.
However, the good news,
according to Default Research (http://www.defaultresearch.com),
is that in 2007 from September to October the number of Detroit foreclosures
only increased by four percent.
“September and October were
good months in terms of the foreclosure catastrophe in all three major counties
in the Detroit area,” said Serdar Bankaci, President/CEO of Default Research.
“While there has been a slight increase over the past month, maybe the area is
seeing stabilization in the foreclosure crisis.
One of the keys to ending the
foreclosure crisis in Detroit and across the country is education. That is why
Default Research is teaming up with the National Real Estate Network and Wayne
County Community College to sponsor the Learn How to Buy Properties using
Pre-Foreclosure, Foreclosures and Short Sales on December 1, 2007 from 8
a.m. to 4 p.m. at the Crowne Plaza Hotel Detroit Metro Airport.
“This is the second straight
year Default Research has been a part of this important event by offering
free leads to everyone in attendance,” said Bankaci, whose company provides
the newest foreclosure leads available. “Default Research wants to do its part
to educate the public about the foreclosure crisis through our instructional Web
site (www.newsletter.defaultresearch.com)
and by participating in great opportunities like the Short Sale event on
December 1st.”
“Not only will Default Research
offer free leads at the conference, the company will also provide tips on how to
use the freshest leads available,” said Mark Maupin Jr., co-founder of National
Real Estate Network LLC and a real estate professor at Wayne County Community
College. “As it did last year, Default Research is donating its time and
resources to train and educate the public on short sales in Michigan. We are
fortunate to have a real estate leader on the national level join us locally in
Detroit.”
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Don’t miss
the best educational event of the year in the Detroit area! Learn How to Buy
Properties using Pre-Foreclosure, Foreclosures and Short Sales on December 1
st, 2007 from 8 a.m. to 4 p.m. at the Crowne Plaza Hotel Detroit Metro
Airport. To learn more about this important event, please go to: http://activerain.com/blogsview/283066/How-To-Earn-Thousands. |
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