Foreclosures Surge in March

A recent article on MSN Money describes the surge last month in foreclosure activity around the country.  March 2009 saw a 46% increase over March 2008. 

Much of the increase is attributed to lenders lifting temporary moratoriums and resuming legal actions against delinquent mortgage holders.

To read the full article click here

Locally, the total number of properties in some stage of foreclosure has been steadily increasing the past several months.  Currently in King, Snohomish & Pierce county there are a total of 7,877 homes in foreclosure.

Exciting News for Real Estate Investors

 To learn more about Fannie Mae’s new guidlines you can contact Shane Pierard with Cobalt Mortgage.

King County Foreclosure Auction Statistics for December 5th 2008

Of those 203 properties:

• 11 were picked up by 3rd parties at the auction
• 51 reverted back to the bank
• 141 were cancelled/sale off

Since we started the week with over 300 properties on the list, there were aslo over 100 postponements granted as well.

We specialize in foreclosure auctions, short sales, REO/bank owned properties

Will low interest rates bring buyers back to the table

Conforming 30 year fixed rates mortgage loans have dropped considerably this past week.  Locally Citibank and Countrywide are offering a 30 year fixed conforming loan for 4.875% with a cost of 2.250% and 2.000% respectfully. 

Will these never before seen interest rates prompt buyers back into buying again or will they sit on the sideline in hopes of obtaining the rumored 4.5% government subsidized rate when the new Obama administration takes office. 

Below is a chart obtained from MSN Money detailing available rates, fees & points available in the greater Seattle-Tacoma area.

Loans shown are 30-yr. fixed conforming loans available in Seattle-Tacoma, Washington.

photo credit: respres

 With rates this low, anyone looking to purchase a primary residence or investment property definitely needs to look to the foreclosure auction and short sales or REO/bank owned properties to get twice the financial benefits.  By buying a distressed property you can pick up a new home at discounts of 20-45% under today’s market value.  Combine that with never before seen low interest rates and you can increase your buying power dramatically.

Will Dec. 5th 2008 be the Biggest Foreclosure Auction Ever in King County

The foreclosure auction set for December 5th in King County, Washington is set to be the largest in County History.

Read more...

Fannie Mae & Freddie Mac Temporarily Suspend Foreclosures

Last Thursday the twin mortgage giants Fannie Mae and Freddie Mac announced they were suspending all foreclosure sales and pending evictions beginning on November 26th through January 9th 2008.  Shortly after the announcment I started receiving calls from associates and clients asking me what affect I thought this would have locally on foreclosures.  My answer was not much at all.  Even though Fannie Mae and Freddie Mac own neary half of all loans originated in the U.S., the number of loans in their portfolio that are in foreclosure is actually very small.  It only represents about 2-3 percent of their entire portfolio.

The end result is that approximately up to 10,000 homeowners will have their foreclosure stalled for a few weeks in order to allow time to work out modifications with them.  For those homeowners, this is certainly good news, especially considering the upcoming holiday season.

Many of the people I spoke to were surprised to learn that so few homeowners would be affected by the announcement.  The reason is simple however, the majority of homeowners in foreclosure took out loans that Fannie and Freddie would never dream of purchasing.  They were the no income, no asset, no credit check loans that are the root cause to our current financial market’s collapse.

And no amount of bailout or releif programs are going to be able to help most of those borrowers.  When they couldn’t verify income or assets in the first place, it is highly unlikely they will suddenly be able to now, and one of the major tenants of all of the announced releif programs are that the borrowers must show they are able to qualify for the new loan terms.

Forbes Ranks Seattle #1 Real Estate Market to Rebound!

Forbes.com recently posted an article listing Seattle as the #1 real estate market in the country most likely to rebound.  An excerpt from the story says “Seattle has a reputation for nurturing brainy industries like aerospace and software. That should help it weather the coming financial storm. Seattle also stays strong because of its vibrant, livable downtown where rents are going up and tenants are likely to stick around.”

It’s nice to know that the people at Forbes and the 700+ real estate professionals they surveyed for this piece echo the same sentiments that we at Real Estate Investment Firm have been saying for several months now.  When you look at the fundamentals of the Seattle area real estate market and the local economy, there is no better place to be to position yourself to make large gains when the turn around occurs.

You can read the entire article here.

Purhasing Foreclosures – Is It Hot Or Not?

Occording the Matt Steel, the owner of Real Estate Investment Firm, “this is the opportunity of a lifetime.”

As reported in a Seattle Weekly article on November 12, 2008, Steel talks about the current foreclosure market and how his company plays a part in it.  Helping thier investors find the “Hot” properties at auction each Friday or helping clients who are behind on their monthly mortgage payments find a buyer, through a short sale, to avoid foreclosure all together.

To see the full article in its entirety, go to http://www.seattleweekly.com/2008-11-12/news/foreclosure-vultures/

Join with REIF in Giving Back to the Community!

GOAL: The primary goal of Toys for Tots is to deliver, through a shiny new toy at Christmas, a message of hope to needy youngsters that will motivate them to grow into responsible, productive, patriotic citizens and community leaders.

OBJECTIVES: The objectives of Toys for Tots are to help needy children throughout the United States experience the joy of Christmas; to play an active role in the development of one of our nation’s most valuable natural resources – our children; to unite all members of local communities in a common cause for two-three months during the annual toy collection and distribution campaign; and to contribute to better communities in the future.

We treat people with kindness and respect, and we give without regard to race, creed, sex, lifestyle, residence, or other discriminatory consideration.

          Real Estate Investment Firm Cares   

                       GENTLY USED COAT DRIVE

Did you know that 90% of homeless adults need a new, warm coat each winter because they have no place to keep one over the summer months? But it’s not just homeless people who need our help; thousands of families are forced to make a choice between buying a winter coat and putting food on the table, or meeting other basic survival needs.

This year REIF Cares want to collect gently used winter coats and distribute them to thousands of men, women, and children who would otherwise go without.

Happy Holidays & a Joyous New Year

REALESTATEINVESTMENTFIRM

16300 Redmond Way, Suite 202, Redmond WA 98052

Please contact LoAn at 425-214-6744 with any questions or for drop-off information & locations. 

Finding the right contractor can make or break a flip when it comes to investing in foreclosures

Often, hiring the right contractors to tackle a flip project is the difference between making a solid profit on a deal or going sideways or back wards on your investment.

 While the current market necessitates more of a buy and hold strategy once in a while, a house ends up at the foreclosure auction and the numbers are so good you still have an opportunity make a decent profit from a fix-and-flip.  That profit can quickly evaporate into thin air however, if you hire the wrong crew to perform the rehab.  One of the keys to successful real estate investing is knowing what projects will bring value to your property and which will only take money from your bottom line.  When rehabbing a property it is crucial that the general contractor and his crew and the various sub-contractors involved understand that the needs of an investor are quite different from the average homeowner.  For the investor, it is always about the bottom line.  What will the job cost, and what will it return in dollars. Speed, quality and skill are what a successful rehab needs from his contractors, especially in this uncertain marketplace.

 One company and owner I have come to know very well in the recent months is Jerzy Radka, owner of Greenwood International.  Greenwood is a family owned business based in the Seattle area.  The founder and owner, Jerzy Radka, is also a real estate investor and he intimately understands what it takes to turn a flop into a successful flip.  After working with Jerzy and his crew on several projects I learned very quickly there isn’t very much this guy can’t get done.  His company is a complete one-stop-shop for all your home remodeling and rehabbing needs.  His crews work quickly and efficiently throughout the project, jumping from one task to the next as they work through the punch list.

To learn more about the type of work and projects that can be completed by Greenwoodii, please visit the following page: Greenwoodii International   

I strongly encourage anyone who is about to tackle a remodeling or rehabbing project to give Jerzy and Greenwood a call.  And if you want to learn how you can purchase or invest in foreclosures in King, Snohomish or Pierce County, please visit www.realestateinvestmentfirm.com