Decline in Homeownership, Leads to Rush in Apartment Rentals

Miami, Fl -- With an increase in foreclosures, U.S. apartment proprietors are seeing a reduction in homeownership’s and a boost in rentals due to young adults finding their own places to live.  According to MPF Research, the number of occupied apartments increased by 215,000, almost twice the amount of units added in 2009 and the most since the company began tracking the data in 1992.  The vacancy rate has declined nearly 1.6% from 8.2% in December.

Investors are hoping that this expansion of young renters will lead to increased earnings next year of about 5 to 10% of real estate investments.    With the economy recovering from the worst recession since the 1930s, the biggest driver in apartment occupancy are new jobs.    According to the Labor Department, employers have been hiring an average of 147,000 jobs a month since the beginning of 2010. 

Financial support didn’t improve fast enough for homeowners to prevent more than 1.65 million foreclosure filings.  RealtyTrac Inc., a data company said on July 15 that a record 269,962 US homes were seized in the second quarter as lenders set a pace to claim more than a million properties at the end of 2010.  The US Census states, that the US homeownership rate fell to 67.1%

 “As homeownership continues to decline, people need to live somewhere,” said Henry Cisneros, who was President Bill Clinton’s housing secretary from 1993 to 1997 and is executive chairman of CityView, a real estate investment firm in Los Angeles that focuses on urban projects including apartments.

The rental market will be flourishing for the next few years.  Rents may increase from 4-6% in both 2011 and 2012, compared with 2% this year.  Landlords won’t be able to raise rents too aggressively because unemployment remains high at 9.5 percent and declines in home prices have made it no more expensive to buy than rent in about half of larger markets around the nation.  Expect significant rent growth by 2012 as supply tightens.

Posted via email from WESTCHESTER COUNTY DISTRESSED PROPERTY INFORMATION

Foreclosures decreases the value of a home by 27%

Miami, FL -- On average, a foreclosure reduces the value of a house by 27%, says a new paper from an economist at the Massachusetts Institute of Technology and researchers at Harvard University.

In the study, which is due for publication in the American Economic Review, MIT economist Parag Pathak and Harvard researchers John Y. Campbell and Stefano Giglio conclude that a foreclosure puts a much bigger dent in a home’s value, compared to a forced sale as a result of bankruptcy or the death of the owner.

Mr. Pathak says he’s not surprised that there’s a discount due to foreclosure, but says, “It is surprising that it’s so large,” according to a press release. The paper uses data on house transactions in the state of Massachusetts over the last 20 years.

A forced sale as a result of the owner’s death chips only 5-7% off the price of the home, and a bankruptcy filing drops the home value by an average 3%, the researchers found.

The presence of a foreclosed home in a neighborhood, which can often become a blight on the community, drops the value of all homes within 250 feet by 1%, on average.

Foreclosure discounts are larger for low-priced properties in low-priced neighborhoods, the authors conclude, “which suggests that foreclosing mortgage lenders face fixed costs of homeownership, probably related to vandalism, that induce them to accept absolute discounts that are proportionally larger for low-priced houses.”

Posted via email from WESTCHESTER COUNTY DISTRESSED PROPERTY INFORMATION

Get People to "Like" Your Facebook Page | Social Media Examiner

10 Ways to Grow Your Facebook Page Following

By Ching Ya
Published July 22, 2010

How can you quickly encourage people to become followers of your Facebook page?

This is the most common question I get from clients.  The truth is it takes time to build a new fan base from scratch.

From the day you set up a Facebook page, it does require an ongoing commitment to brand, monitor, and network with people who find interest in your product. Besides quality service, it’s important to build close-knit relationships with visitors.

How do you get people to like your Facebook page?  Here are 10 tips…

#1: Be Prepared With Quality Wall Posts and Consistent Engagement

If you want to be liked, be likeable first.  A disorganized Facebook page can turn off customers instantly. When reviewing a Facebook page, quality content and active engagements are great first impressions.

Several other factors people look for before joining a page include the brand itself, consistent posting of fresh information, and active engagement from both fans and admin.

#2: Reward Your Loyal Supporters

You may have just started your Facebook page, but your business is well-established. Encourage your loyal customers to join your Facebook page as supporters, reward them with customizable badges/tabs (to be placed on their profiles for visibility) and special deals for consistent support.

A shout-out from a happy customer is a lot more attractive than a marketing slogan, creating irresistible appeal for that ‘Like’ button.

#3: Leverage Your Existing Social Networks

If you’ve built a strong Twitter network for your business, utilize it to promote your Facebook page. Some people prefer not to overlap similar social contacts on both accounts, but why diminish your chance to be noticed? Your followers can broadcast your message on both of their social platforms by reaching out to a greater audience about your business.

A brilliant example of this is how Mari Smith rewarded her Twitter followers while attracting people to visit her fan page:

Did I mention that a few indirect promotions on your Facebook personal profile could work wonders too?

#4: Integrate Facebook Social Plugins to Your Website

It’s essential to have a main hub correlating all your social media activities. Your company’s website is the only place that gives you full control over content and brand management.

Integrate Facebook social plugins to encourage connections such as Facebook’s Likebox, Like button, and Comment stream.

As Facebook visitors increase, your page is more likely to show up on supporters’ news feeds and those of their friends, prompting people to find out more about your business page.

#5: Remind Your Fans to Like and Share

Facebook has some easy ready-made sharing buttons with which people can promote your tabs and pages to their friends.  Place a shout-out or reminder to ‘Like’ your status updates and instruct fans to click that little ‘Share’ button right next to your message so their friends will be alerted about the update.

#6: Utilize Forum Signatures and Membership Sites

If you’re an active participant in a forum or membership site, placing a signature with your fan page link is a plus. No-one will care about your information unless you stand out from the crowd.

Be an active helper in a LinkedIn Group or a frequent poster of special tips and tricks. As long as your participation in the niche community is appreciated, there’s a higher chance for other members to check you out.

Here’s an example of my signature at Chris Garrett’s Authority Blogger Forum.

#7: Take the Initiative: Request Help From Friends

It’s difficult to start a fan page with no engagement whatsoever. Why not initiate messages to your friends and buddies who are supportive of your business? Ask them to help out in some discussions, reward them with publicity or return the favor. It’s easier to ask a friend than a stranger if you’re worried about spamming people.

Make sure the question is interesting enough to get them talking. If you use your personal account and fan page strategically, you’ll discover a huge advantage of getting new friends to be your fans while they’re getting to know you better.

#8: Use Tagging and Acknowledgments

A great networking tool, status-tagging, can even drive in new connections.  Tag an author or a popular Facebook page to draw attention, but only if you have good reason to do so.

For example, selflessly promote a niche-post and how it benefits people who like your page. Be authentic, and the page admin (hopefully the fans as well) will appreciate you for it.

#9: Participate Outside Your Page

Use the Facebook Directory and Facebook Search to locate other Facebook pages in your niche and look for public discussions based on search terms related to your business.

Provide value to the popular pages; build credibility and relationships with the admin and members.  Get to know them better before asking them to look at your page. They just may reward you publicly.

#10: Collaborate With Other Page Admins for a Social Event

You can collaborate with other page admins to create a special event that may benefit both your fans and bring in new connections. I find this to be very successful.  There should be a mutual understanding and proper planning to make it work for everyone’s professional goals.

For example, Social Media Success Summit 2010 was a successful live online conference with 24 social media experts who shared how to use social media to attract quality customers and grow your business.

There are many ways you can increase your Facebook fan base.  Remember, showcase the quality of your service and why it matters to be a part of your page community.

Cut through the noise and let your message be heard. Intelligently apply Facebook Applications to enhance your Facebook page while learning from these superstars to empower your social media presence. Quality networking starts with effort and time, but the return will be worthwhile!

What have you done to be “liked”? What rewards have you used?  What have you done to increase visitors to your Facebook fan page?  Let us know in the box below.

Tags: ching ya, engagement, facebook, facebook application, facebook badge, facebook comment, facebook community, facebook directory, facebook fan, facebook fan base, facebook friends, facebook like button, facebook marketing, facebook page, facebook personal profile, facebook promotion, facebook search, facebook social plugin, facebook tagging, fan, forum signature, indirect promotion, like, like button, likebox, membership site, news feed, share button, sharing buttons, social network, tag, tagging, wall posts

via socialmediaexaminer.com

Facebook Fan Pages. Becoming a Place for Business owners to market and Expose the Products and Services.

Posted via email from WESTCHESTER COUNTY DISTRESSED PROPERTY INFORMATION

If HAMP Is a Band-Aid, HAFA's an Exit Strategy « HousingWire

Friday, July 23rd, 2010, 3:01 pm

The Home Affordable Modification Program (HAMP) was created pretty early on in the housing and economic crisis. It was created to help people stay in their home by making their payment more affordable. The effort was laudable. How could anyone not be in favor of keeping people in their home? What it doesn’t address, through no fault of its own, is whether or not the people want to stay in their home.

Say I bought my home in 2006 for $500,000 and put $50,000 down, and I got a loan for $450,000 at 7% for 30 years. I could afford the payment, and I paid on time. Fast forward to 2009. I am not making the bonuses I was in 2006, and my wife’s hours have been cut so our family income is not what it was. It seems that the HAMP program was made for me. Now comes the real question. Do I want to stay in the house? I owe essentially $450,000 on my home. From 2006 through 2009 the value of my home decreased from $500,000 to $240,000. I now owe $450,000 on an asset that is worth $240,000. Even if I were offered a mod to 3% and the term extended to 40 years do I really want continue to pay on a loan when the asset is worth about half of what I owe?

Granted that there are folks that didn’t buy their home as an investment but rather as a homestead. A place they felt they would stay for years to come. Maybe the schools are the best or the home is close to other family members, there are a variety of reasons. Those are the folks who have kept up their modifications through the trial period and into the permanent status. They may continue to pay, but as many areas are still seeing price stagnation and even continued decline, it will be interesting to note what the recidivism rate is on the permanent modifications in a couple of years. Some people started a trial modification because they initially hoped that things would get better and they would stay in the home. Some got on a trial modification simply to buy time. Some people stopped making their payments and it was months before they were offered a solution if they qualified for one.

More time goes by in getting approved for the modification and all the while they are not making a payment. They get a trial modification, and they make one payment and realize that they still can’t afford the home or decide it makes more sense to leave and rent a home on their street identical to their own for half of what they are paying now. In many cases, after that first trial modification payment is missed, it will take six to twelve months before a sheriff would ever come to their door to lock them out. In the meantime, they are saving the money that would have gone to payments and using it to consume, pay off other debts or even sock it away. The HAMP program has helped a lot of people who want to stay in their home but the continued decline of values before, during and after its inception prevented it from being the answer for most.

Then comes the Home Affordable Foreclosure Alternatives (HAFA) program. In recognition of the fact that some borrowers simply could not make payments even if the payment were lower, whether through job loss or a reduction in income, a more dignified exit strategy was created. HAFA offers a solution for those folks: short sale. It’s where the home is marketed and the lender agrees to accept the proceeds of a market value sale as satisfying the debt for less than what is owed. HAFA also offers a deed in lieu (DIL) of foreclosure, where the lender and borrower agree it would be better for both if the borrower deeds the property back to the lender, thereby saving the lender the time and expense of going through the foreclosure process. Once again, the concept is good, almost a no-brainer. It took a few months to put together and when rolled out, lenders and servicers were encouraged to go back to the borrowers who didn’t qualify for HAMP, were unable to complete a HAMP modification or didn’t accept one. What that means is borrowers who haven’t been making their payments for the last however many months while they are working on HAMP have a program available if they can’t afford, don’t want or don’t qualify for a HAMP modification.

Remember, they haven’t been making their payments through this entire process (well, maybe a payment or two), and it will take some time to “pre-approve” a short sale as values have to be obtained and reconciled. Then you put the house on the market and have another three or four months waiting for a buyer. If you find a buyer who is willing to pay the pre-approved price, which is not an easy task in this market, you proceed to closing which may take another 45-60 days and then the government will give you $3,000 to help you move. That’s a big win for the borrower as they have not been making payments for anywhere from six to 18 months. And the lender is prohibited from seeking the deficiency on the short sale. And your credit is not hit as hard as a foreclosure. And you get a $3,000 kicker.

A DIL is the shorter version, without the marketing or closing time, and it’s great for the folks, who have a place to go right then. Maybe a home they can rent for a lot less is available now or perhaps they are relocating for a job. They still get the benefits of reduced credit impact, protection from deficiency collection and a $3,000 moving allowance. Another big win for the borrower. HAFA will be more successful than HAMP because people want the end result. Simply put, there are far more people who want to get out from under the obligation rather than have a smaller payment.

Now, there are issues. Although HAFA provides for a little money to go to a junior lien if one exists, insiders are reporting that the juniors are not just rolling over and accepting what the plan calls for. This can delay a deal at best and kill a deal at worst. It is too early to tell what the success rate of the HAFA program will be but I am betting it will be far better than HAMP.

HAMP is a band-aid. HAFA is an exit strategy.

Cary Sternberg is president of Excellen REO, an asset management firm and subsidiary of Titanium Holdings.

via housingwire.com

Which programs will finally work from the government? What is the Best Solution for the Housing Crisis?

Leave your Comment.

Thank you

Posted via email from WESTCHESTER COUNTY DISTRESSED PROPERTY INFORMATION

First-time Home Buyers: What You Need to Know Before Starting Your Home Search

With historically low interest rates persevering and prices starting to creep back up, more and more renters are grappling with the question of whether to buy now or keep renting.

Based on the countless clients we have helped buy their first home, we can confidently tell you, yes! Now is a very opportune time to purchase your first home.

According to our colleagues in the Top 5 in Real Estate Network®, a national network of leading real estate agents, first-time home buyers across the country have taken advantage of today’s market conditions to go from renter to homeowner. That said, the ability to move into homeownership is very dependent upon the overall health of your finances. Buying a home not only takes having the necessary cash on hand for the deposit and closing costs, but also the financial wherewithal to convince a bank to lend you 80% or more of the purchase price in the form of a long-term mortgage.

Here are some other important points to be aware of before embarking on a home purchase:

1. Having good credit is all important, so put out the bucks to Fair Isaacs’ myFICO.com to get your current scores (about $16 each for reports from Equifax and TransUnion, another $15 at Experian.com). Don’t be surprised if the scores differ somewhat, and check them carefully for errors. Remember that errors must be reported to and corrected by the agencies themselves, which could take weeks or months.

2. Know what you can afford. Aim for a home that costs about two-and-a-half times your gross income – less if you have significant financial debt. In all, your monthly home payments should not exceed 36% of your gross monthly income. Getting pre-approved by a lender should be your signal to start home shopping.

3. Check your cash situation. Whether you are aiming to amass 20% of the home’s price for a conventional loan, or 3% or more for a loan from Fannie Mae, Freddie Mac, FHA or the Department of Veteran’s Affairs, you will also need to cover fees and closing costs, which can run up to 5% of the mortgage amount. First-time buyers may augment their cash by borrowing from an IRA or getting a cash gift from parents, but check with a financial advisor for amounts and tax consequences.

4. And speaking of tax consequences, remember that homeowners, unlike renters, must pay property taxes each year – and pay for any needed repairs or upgrades. Be sure to leave yourself a little financial wiggle room in order to meet these expected – and sometimes unexpected – expenses.

If you would like more information about preparing to buy a home, please e-mail our team. I also invite you to forward this email to anyone else who might soon be joining the ranks of homeowner!

Posted via email from WESTCHESTER COUNTY DISTRESSED PROPERTY INFORMATION

Four Reasons to Rent Your Retirement Property

If you have a vacation home that you had hoped to retire to some day but have since changed your mind, don’t jump to sell it…consider renting it out instead.

For many, it seemed like a great idea to buy that vacation condo 20 years ago. The plan was to vacation there as often as possible, then some day sell your primary residence and retire there for your Golden Years. But lifestyle changes or financial situations might now be causing you to consider selling it instead.

However, as a member of the Top 5 in Real Estate Network®, I, along with my team, have seen many a client successfully rent a retirement home instead of selling it. Author Christine Karpinski, director of Owner Community for HomeAway.com (HomeAway.com), offers some good reasons to consider renting your second home:

1. Circumstances have changed. Maybe grandchildren have arrived on the scene and you can't bear the thought of moving hundreds of miles away from them. Or your parents are in poor health and need you nearby.

2. You've suddenly realized there's no place like home and you've simply changed your mind. You've decided you like being near your friends and you don't want to leave your church or synagogue. Renting your second home out during the time you are not staying there makes it financially feasible to keep both homes.

3. You've decided to "retire" from retirement. These days, it’s not unusual for people to test-drive retirement and find that it's just not for them. Work can provide many rich rewards—structure, social interaction, mental stimulation, a sense of purpose, and so forth—that people keenly miss when they retire. And, let's be honest—sometimes people simply can't afford to retire.

4. Your fixed income hasn't kept up with your lifestyle. Even when you're happy to give up the daily grind of your job, losing the paycheck that comes with it can be pretty painful. Factor in inflation, rising taxes, and unexpected "new" expenses, and you may find that what seemed like a manageable cost of living five years ago doesn't seem that way anymore. Your second home, even if it's paid for, may start looking like a liability due to property taxes, homeowner's association dues, and maintenance costs. Not if you rent it out, says Karpinski. Then it becomes a source of new income.

So don’t give up and seek to unload your second home just yet! There are still many ways to make this investment pay off. For more information on renting or buying a second, potential retirement home, please e-mail our team. And please forward this email to any friends and family who could benefit from these insights.

Posted via email from WESTCHESTER COUNTY DISTRESSED PROPERTY INFORMATION

1st Time Buter

  
Download now or listen on posterous

1st time buyer.amr (96 KB)

Buy Your Home Now

Become a VIP Buyer

http://CreccoRealEstate.com

Anthony J. Crecco
---------------------------------------
The Crecco Companies.    www.CreccoRealEstate.com.       www.CreccoSocialMedia.com
www.Facebook.com/CreccoRealEstate  

Posted via email from WESTCHESTER COUNTY DISTRESSED PROPERTY INFORMATION