For those of us who either don’t live in Arizona, Florida, Nevada, or other hard hit parts of the country, or who are RENTERS, like myself, we don’t really get to see the crash up close. Sure we hear about it on the evening news and maybe there’s a friend of a friend who’s going under water, but in general we’re mostly unaffected.
Very interestingly, there’s a slew of gonzo journalists springing up all over the web – folks who are going out into the hard hit neighborhoods and bringing the face of the housing market crash to viewers first hand. And every now and then, you see something that makes you realize just how out of control the housing industry bubble got and how hard the bust hit some communities.
Youtube-r Arizona Public, posts videos detailing the economy and various goings-on around Phoenix and Arizona at large. Today, I’ve stumbled across an interesting and brief video that gives you a taste of just how much this housing market decline has effected certain neighborhoods.
I can’t post the video here, but please CLICK HERE to watch.
You can also follow him on Twitter at @ArizonaPublic
Posts Tagged ‘for sale by owner real estate’
Let’s take a side step away from the “10 Things About Realtors” column to talk a little bit about an emerging trend in the housing industry.
FSBO’s and realtors alike are becoming more and more aware of the vast effect trends can have upon their endeavors in the real estate market. Staying savvy to the latest trends has been shown, especially of lately, to make the difference between success and failure in today’s highly variable market.
One recent trend that has caught many eyes is a growing shift towards banks utilizing the current abundance of foreclosed homes in today’s market, choosing to invest in their remodeling and the possibility that the general consumer will find one of these homes irresistible.
Acquired by banks after a borrower defaults on their mortgage, foreclosed homes are often in disarray and will merely continue to depreciate from neglect. Though, in this growing trend these homes are receiving high-value improvements targeted directly to the everyday buyer. A practice which is projected to be advantageous to the banks undertaking these “makeover” investments, as well as the general home buyer.
In fact, increases in general demand and the sales prices for these revamped homes are expected to have an overall positive effect on the real estate market as a whole. Yet, this new trend may only be treating a symptom of the overall predicament, as it does not prevent lenders from dealing with foreclosed upon homes in the first place. Thankfully, an outfit known as Bank of America has chosen treat this issue at heart, attempting to prevent borrowers from ever struggling with foreclosure at all.
Once the second greatest supplier of reverse mortgages, Bank of America has chosen to no longer offer these unique mortgages. Banks generally operate these mortgages by providing the home buyer must be 62 or older with monthly payments based upon the equity they hold in the home (fair market value of home minus all liens on the property). The bank would then take ownership of the home upon the buyer’s death or decision to move out.
By no longer offering reverse mortgages Bank of America is able to focus more determinately upon traditional mortgages, preventing the black scourge that foreclosed homes represent for the market from the start. So for what it’s worth there’s a much needed glimpse of hope in today’s tumultuous market.