Real Estate Information Archive

Blog

Displaying blog entries 1-6 of 6

If I had a dime for every time someone said to me, "hey if you find a killer deal or foreclosure that noone knows about, I'm interested, " well I'd be rich and wouldn't need to be selling real estate.  

So I came to the conclusion this week that NOONE IN OUR DATABASE is even aware that we are SENDING THEM NEW FORECLOSURES & HOT DEALS BEFORE OTHER REAL ESTATE AGENTS EVEN KNOW ABOUT IT!

The fact that they are unaware is probably my fault - stupid of me. But the fact of the matter is that every 7-10 days we send out the Larkin Group market report and it always contains:

1. Our new listings
2. Our new foreclosure listigns - BEFORE THEY ARE EVEN ON THE MARKET.
3. Our latest price reductions. Again, prior to most agents even being aware.

People: This info is PRICELESS! If I were a Buyer I'd KILL for it! So I guess all I can say is....pay attention?

If you are not on this list currently, click on this link: http://www.gostgeorge.com/Newsletter and choose "newsletter signup" on the right.

This Month in Real Estate: What's up with Foreclosures?

by Jeremy Larkin

Talkin' St. George Area Foreclosures

by Jeremy Larkin

There has been alot of talk about Washington County, Utah foreclosure rates - we're currently boasting the highest rate in the state! So I guess we now have the weather, national parks and foreclosures.....but I digress.

I spent an entire afternoon recently with Paul Foy, an Associated Press (AP) writer who came to town looking for the "foreclosure scoop." You can read the full KSL.com version of the story HERE.

I think he was surprised at several things: 1 - just how many distressed properties there are around here, 2 - how "nice" many of the homes are, and 3 - that the community is still vibrant.

Of course it is, it's St. George! All sugar-coating aside, we have a terrible foreclosure problem that has affected nearly every person in the county, but has also brought with it INCREDIBLE buying opportunities....time to go shopping!

In this week's episode, I join forces with Bank of America's Blake Bench upon the StGeorgeForeclosureTour.com shuttle to talk foreclosures, our upcoming foreclosure tour, and take a brief outside look at a HOT foreclosure that sold in 6 days. We even made a pit stop at In N' Out Burger!

Join us as we kick off the fall 2009 Foreclosure Tour season on September 5th. It is fun, short, FREE and should be enlightening! Details and registration at www.StGeorgeForeclosureTour.com OR www.SoUtahForeclosureTour.com.

 

"Bailout Begins at Home" - courtesy of Utah CEO Blog

by Jeremy Larkin

Hello real estate fans! Occasionally, (because I am too tired, or busy, or lazy or in this case - because this is a great piece), I will "borrow" content from colleagues in the business who bring a relevant point of view to the table.

This week I hope you will take the time to read a post on the UtahCeoMagazine.com blog written by local Broker and friend, Graig Griffin. He talks about the value that every sale of a foreclosed property brings the local real estate market.

I share his sentiments. The quicker we can "mop up" these homes, get them "off the books" so to speak, the better. The challenge that all of that vacant inventory creates affects every one of our lives whether we own a home, rent one, or simply live in a distressed housing market - which we ALL do.

One of my favorite comments in this piece is about the changes in the 2009 St. George Parade of Homes brought on by the challenges in the housing market:

"Most of the Parade homes are what I would consider “normal” houses, meaning that the odds of prospective purchasers arriving on planes without propellers is pretty low. Any plane, really."

As a related side-note, there is actually a home on tour for $259,900 this year. If that doesn't sound very cheap to you, remember that a few years ago there were almost NO homes on tour under $750k.

Here is the link, enjoy and be sure to comment on that blog site if you like it, don't like it or just want to share your opinion!

http://www.utahceomagazine.com/blog.php

 

Moratorium slows foreclosures...but can that last?

by Jeremy Larkin

I wish I could say YES, but I'm afraid the answer is NO. First let's look at recent efforts to curb the foreclosure tidal-wave.

Oh Crap........

As many are aware, foreclosure filings dipped in November by 7%, most likely due to Freddie Mac and Fannie Mae-imposed Moratoriums designed to give lenders and borrowers more time to sort through loan modifications or other means of staving off the foreclosure wolves.

In addition to the moratoriums, the following factors also aided in slowing filings:

  • New Laws - Many states requiring lenders take greater action to avoid foreclosures such as  requiring contact with borrowers earlier in the default process.
  • Loan Modifications - I mentioned recently that I had contracted with a company whose' chief aim was to be the "middle man" between lender and borrower to put in place some type of modifcation to the loan to keep them in the home.

So why will they go back up? Because we are simply treating the symptoms, not the disease. 

According to a recent report on the subject, more than 1/2 of the homeowners who received loan workouts in the first half of 2008 are ALREADY behind again!

The disease is the following: We were living  above our means, typically on credit borrowed from our homes, now our homes are worth enough, home sales are down, and suddenly we are out of work. It is a vicious cycle.

The symptom is foreclosure, whether it be on a home or a car or a ski-boat.

For what it's worth, the states with the highest foreclosure rates in November were (surprise, surprise) Nevada, Florida and Arizona.

What does this mean locally? Tough to know, but what we DO know is this: Most people who took out risky ARM mortgages took them out in 3, 5 or 7 year increments. Well I'm no math wiz, but this summer's foreclosure boom was exactly 3 years from the peak of the market.

One wonders what could happen in 2010 (5 years) and 2012 (7 years).

The good news for St. George / Southern Utah is that, frankly, it is one of the best places to live on the entire planet and numerous magazines and independent groups will corraborate that statement.

A place like Mesquite, Nevada (sorry folks) could see some real trouble as Randy Black shuts down casinos and hundreds of laborers leave for greener pastures.

A question to all: How do we treat the disease?

Big Lenders Deciding to assist "At-Risk" Borrowers

by Jeremy Larkin

I know what you're thinking....."Hey I'm an at-risk borrower!" Aren't we all?

That said, with defaults mounting, big-time lenders including Citigroup, JPMorgan and Bank of America, have also become more aggressive about modifications to mortgage agreements.

What took them so long? Most likely optimism....the hope and assumption (based on historical data) that it would all just "get better."

From the article on Yahoo: Citigroup says it is imposing a moratorium on most foreclosures as part of a series of initiatives aimed at helping at-risk borrowers remain in their homes — making Citi the latest big bank to announce sweeping efforts to try to curtail losses from souring mortgages.

Citi said late Monday it won't initiate a foreclosure or complete a foreclosure sale on any eligible borrower who seeks to stay in a home if it is the borrower's principal residence, the homeowner is working in good faith with Citi and has sufficient income to make affordable mortgage payments.

So let's have some fun and I will translate for you some of the comments made by Citi Executives and PR people:

Sanjiv Das, chief executive of CitiMortgage, said, "It is in our interest that borrowers stay in their homes and actually make the payments."

Translation: "If we take on another foreclosure while hiring new people to process it we are going to go broke"

Das also said: "There is a huge amount of anxiety among borrowers," he said. "We will reach out to them before they become delinquent."

Translation: I'd like to THUMP these people for screwing up my vacation, yacht and 7th  home plans...can't they just pay their "&$@#* mortgages?

Steve Curnette, President of InsBank Mortgage in Nashville, TN said: "It's nearly an insurmountable undertaking. The number of bad loans that they can modify using their resources is being quickly outstripped by the number of new loans that need to be modified."

Translation: I wonder if Costco is hiring?........"

All joking aside, I am VERY pleased to see this happening. Homeowners need it, the banks need it, the ENTIRE COUNTRY needs it. It is all fun and games to see the foreclosed homes hit the market and figure out a plan to buy them for investment purposes, but at some point it will bankrupt the very institutions we rely on for credit.

 Additionally, (and I may get in trouble with homeowners), we all like to beat up on the big banks but when you truly understand the situation you see that THEY are the biggest losers. The average home-owner ruins their credit, feels stupid around their neighbors, then moves on to an equal or better home for LESS money as a rental.

I'd like to get some opinions from you people out there in OR out of my industry as to whether you like the idea of loan "workouts" or not. 

In the meantime PLEASE contact us if you or someone else you know is in a "bad spot" with their house. We work full-time with these issues and may be able to propose or find a solution to the problem. 

Carry on!

 

Displaying blog entries 1-6 of 6

Syndication

Categories

Archives

Contact Information

Photo of Jeremy Larkin - The Larkin Group Real Estate
Jeremy Larkin - The Larkin Group
Keller Williams Realty
50 E 100 S, Suite 300
St. George UT 84770
435.767.9886
Fax: 435-359-5085

St. George Real Estate - Your premier destination for St. George,Utah Real Estate Listings, Home Values, MLS Search, REO/Foreclosure Info &  St. George Real Estate Statistics.  Serving St. George, Santa Clara, Ivins, Washington, Hurricane, LaVerkin, Toquerville & more! Specializing in REO/foreclosure properties, frustrated Sellers, First-Time home buyers, and Investors. Looking for the most LOCAL St. George, Utah real estate information available? Your search is over!