DEAN GRAZIOSI: DEAN GRAZIOSI REVIEW – REAL ESTATE FEED BY DEAN GRAZIOSI

The facts are overwhelming.  Never before have so many real estate properties been either in foreclosure or been in delinquency.  Delinquent mortgages are mortgages that have missed one installment. 

Well-intentioned state governments have launched protective programs designed to save homeowners the heartbreak of foreclosure.  The statistics from these states are not reflected in the latest Mortgage Bankers Association delinquency and foreclosure report that states a whopping 13.16% of mortgages are non-performing. 

One might ask how experienced mortgage lenders created the current phenomenon.  The answer is recklessly.  Imagine approaching an auto dealership with no down payment, no job and no prospects for overcoming either of those shortcomings.  Incredibly, you are approved for a loan and are shortly driving away with a new car.  The beaming auto dealer could not be happier.  After all, he could notch up another sale.

Well, that is what happened in the freewheeling mortgage lending industry from 2001 to 2006.  By the time regulators caught on, the current crisis had emerged.  This crisis is far from over.  Due to new regulatory adjustments, the reality of the current real estate financing crisis is yet to be fully disclosed.  Thanks to new latitudes in the mark-to-market accounting, many banks are able to disguise the extent of the problem.

Real investors take note.  These institutions know they have problems and they know that the non-performing loan crisis is expanding not contracting.  Currently, prime mortgage failures are beginning to kick in and the depth of the problem has just touched the surface.

With national unemployment headed beyond 10%, prospects for more failure are stout.  This crisis has created a wide path of opportunity for real estate investors.  Real estate agents know where these distressed assets are and have connections to lenders that can provide great investment opportunities for qualified buyers.  Let’s face it.  Banks do not want to take over vacant real estate properties.  Banks want to sell these properties before they take title. 

With all investment, the goal is to buy low and sell high.  If you subscribe to that formula for success, contact a real estate agent today.  The time is now!

Bookmark With

The recession has taken a heavy toll on the building industry.  States once reliant on residential and commercial construction have extremely high unemployment rates and many projects were halted while in progress.  The focus of the government’s housing campaign has been to clear the decks of existing inventory and have combined in an all out effort to keep financially troubled homeowners in their homes.

As a result, building firms have been unusually idle, as housing starts have dwindled to record lows.  In previously strong new construction states like Florida, Arizona, Nevada and California, requests for building permits have been few and far between.

In November, new home construction rebounded from a six-month low.  Construction actually increased at an annual rate of 574,000 or 8.9% above October’s housing starts.  Even with the November progress, housing starts remained 12.4% below year-over-year comparisons of 655,000.

New construction was strongest in the northeast where housing starts were up 16.4%.  Housing starts rose 12.3% in the south, 3% in the Midwest and 1.9% in the west.  October had been surprisingly disappointing for builders as homeowners waited to see if the homebuyer tax credit legislation would be extend or modified.

Once the December 1^st cutoff was extended and the program expanded to include some existing homeowners, construction firms began to see some light at the end of the tunnel.  These firms are hoping that Congress will take note and broaden the 2010 homebuyer tax credit.  The 2009 bill was extended to cover homes closed before the end of June.

The November startups gave builders hope.  However, the industry remains mired in high unemployment.  The industry’s suppliers have also been affected and inventories are at alarmingly low volumes.  Prices for building lots and for land for new developments are favorable but most construction is not speculative.

In 2009, housing starts peaked in the summer with July setting the bar.  Normally, new starts are lower in the winter months.

Bookmark With