Some rental investments don't pay off
Buying foreclosed, or otherwise inexpensive, residential units with the game plan of renting the property for as many years as it takes until real estate appreciation returns has proven to be a time-tested and generally successful investment strategy.
Unfortunately, it's not as easy as it appears. Just because a residence, whether a condominium or a single-family residence, can be acquired cheaply doesn't mean that a home-rental scheme can be operationally profitable.
With F.H.A. Help, Easy Loans in Expensive Areas
The New York Times
SAN FRANCISCO — In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston.
A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary.
"A Truly Extraordinary Slump": Reports of Robust Recovery Premature, James Galbraith Says
Disappointing reports this week on housing starts and foreclosures, as well as the index of leading economic indicators, have cast a bit of a pall on the "robust recovery" story, putting a crimp in the stock market's ascent in the process.
University of Texas professor James Galbraith was never a believer in the V-shaped recovery and says it's going to take a very long time for the U.S. to recover from a "truly extraordinary slump."
Homeowners Predict a Full Recovery in Next Six Months: Zillow
Homeowners in the United States were more optimistic about the future of the housing market last quarter than they have been in 18 months, according to the Zillow Q3 Homeowner Confidence Survey.
According to the Seattle-based company’s study, 41 percent believe their home’s value will increase in the next six months. An additional 43 percent say their home’s value will remain the same, with only 17 percent expecting their home’s value to drop.
Citi Reports Success in Florida Foreclosure Prevention Rates
After a preliminary review of third quarter foreclosure prevention data, Citigroup Inc. announced Monday that its efforts produced nearly three times the success rate in helping distressed homeowners avoid potential foreclosure in the Florida housing market, compared to last year.
According to the data, Citi’s loss mitigation success in the Sunshine State outnumbered foreclosures completed by a ratio of almost 16 to one, compared to a six to one ratio during the same period last year.
Fannie: 'Recovery is here'
The deepest and longest recession since the Great Depression appears to be over, Fannie Mae economists say, projecting sales of new and existing homes will jump 11 percent next year and that national home prices will stabilize, remaining essentially flat.
The mortgage guarantor's monthly housing forecast projects 5.96 million home sales in 2010, with sales of existing homes growing by 10 percent, to 5.46 million. New-home sales are expected to rebound even more sharply in 2010, growing by 24 percent to 498,000.
National Foreclosure Mitigation Counseling Program Clients Are Sixty Percent More Likely to Avoid Foreclosure than Homeowners Who Don’t Seek Counseling
WASHINGTON — Today NeighborWorks America, the administrator of the National Foreclosure Mitigation Counseling (NFMC) Program announced that NFMC clients who receive foreclosure counseling are 1.6 times more likely to avoid losing their homes to foreclosure than homeowners who do not receive foreclosure counseling, according to findings in a report released today. As a result of NFMC Program funding, families who sought and received foreclosure counseling were provided much needed information, assistance and guidance to address their risk of foreclosure, which helped them find a solution to foreclosure.
The report, which analyzed NFMC Program activity during the first year of the program (January 1-December 31, 2008), also found that NFMC Program clients were more likely to receive a loan modification than homeowners who did not receive counseling, and NFMC Program clients who received loan modifications lowered their mortgage payments significantly more than homeowners who received loan modifications without NFMC Program counseling.