by Rich Epstein on August 12, 2011
Search for Half of the Country's Foreclosures in One Place
The U.S. Department of Housing and Urban Development has unveiled a web-based map search tool displaying the location of all foreclosed properties held by Fannie Mae, Freddie Mac and FHA. These account for nearly half of all foreclosed (REO) properties in the U.S.
The idea is to move the shadow inventory and help stabilize local real estate markets. Until the majority of these distressed properties are gone, housing prices will not rise. This tool will make it easier for investors and owner occupieds to find these homes and with one click be shown how to make an offer on it.
The image is a snapshot of Rhode Island's search results.
by Rich Epstein on July 15, 2011
Central Falls City Services Being Shut Down
Since 1980, only about 46 cities or towns in the entire U.S. have filed for bankruptcy protection. Central Falls could be number 47.
Central falls has roughly 19,000 residents and 15% unemployment. The state took over Central Falls last year following the uproar of every teacher being fired from the High School.
Negotiaitions are being held with labor unions and retirees. Cuts are being made throughout the budget, including:
- At the community center, the subsidized lunch for seniors is no longer being served.
- The pool has been drained.
- Health screenings have been cancelled.
- The locks to the building were changed last week.
- The public library has been closed.
Overall, Central Falls faces $80 million dollars in unfunded pension and benefits obligations and an estimated $25 million in deficits over the next five years.
by Rich Epstein on June 22, 2011
Congress to make a decision on ending mortgage interest deduction.
For more than 80 years, the federal government has helped families become home owners and made home ownership a cornerstone of the U.S. economy by including deductions such as mortgage interest and property taxes in our tax code.
But as Congress debates ways to reduce the national deficit, those deductions are now at risk for repeal. If eliminated, the outcome would mean increased taxes for you – $3050 on average, and up to a 15% decrease in your home’s value. A devastating double whammy to any home owner!
To find out just how much a repeal of the mortgage interest deduction would cost you, take a moment to review your federal tax form Schedule A (if you are filing a tax form 1040) and look at line 10. That line shows the deduction for your home mortgage interest. What do you think your tax bill would look like if that deduction disappeared?
From a sales standpoint, the mortgage tax deduction is the biggest advantage of home ownership. Imagine what would happen to the already tired real estate market if this was repealed? Think of how many people would consider renting as a lifelong option.
Then think of the domino effect reducing the number of homeowners will have on the overall economy. Appliance, furniture, flooring and dozens of other businesses rely on new homeowners and existing home owners to update and maintain their homes. If the majority of these homes were rental units the optional purchases would disappear.
by Rich Epstein on June 17, 2011
Mortgage rates fell again yesterday and Greece's financial woes are right at the center.
What is influencing the rates right now:
Greece is on the cusp of disaster. The quandary is that bailout funds must be provided to Greece very soon, regardless of whether Greece agrees to the conditions or not. A Greek default will have disastrous consequences across Europe particularly among banks holding Greek debt.
The weekly jobless claims report indicated a drop in first-time filings for unemployment benefits, yet continued to stay above the threshold that suggests an improving job market.
Housing starts over the past month were improved more than analysts’ expectations. This is good news, yet much of the gain was in the multi-family homes category which simply reflects the fact that fewer people own their own homes and need rental property.
Current 30 year mortgage rate – 4.5%
