Posted by
Heyli Regpala on Tuesday, October 12th 2010
The Canadian housing market may be cooling down and property values are rising but this does not mean that people are lining up the banks to get a mortgage on their homes. In fact, because of the stiff competition to get new business, banks are coming up with different strategies and gimmicks to lure in customers. TD Bank, for one, is revamping its mortgage program to ensure that homeowners can easily tap into their equity but not switch to another lender when mortgage is up for renewal.
TD Bank’s overhaul of its mortgage program is centered on its switch from traditional mortgages to collateral charge mortgages, which is very much like lines of credit. This form of mortgage makes it difficult to transfer from one lender to another because the mortgage must be paid in full first. So if a change of lender is needed or wanted, renegotiation must be done from scratch.
The switch to collateral mortgage will start on the 18th of October and encourages employees to approve up to 125% of home’s actual value. This means that if the property increases in value, then the borrower can cash out more. But money cannot be withdrawn by just a simple phone call; TD Bank would still need to reassess the home and look at rising values.
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Posted by
Heyli Regpala on Tuesday, October 12th 2010
“Another man’s loss may be another man’s gain” – that is exactly what happened between the residential housing market and the apartment industry. Whereas property values are still declining and houses for sale remain in the market for a long time, the apartment industry is gaining more advocates as a shift from house buying to renting happens nationwide. If there’s another industry that’s being saved by this shift, it’s the development industry.
The national shift has been such a big lifesaver for the developers that some real estate businesses who have not considered developing in a long time suddenly find themselves doing just that – developing apartment sites. Take for example the property between New York Avenue and L Street near Mount Vernon Square in Northwest D.C., which has been undeveloped since brothers Guy and L.P. Steuart acquired it in the 1920s. Guy Steuart II is now converting the site into an apartment complex and has just recently partnered with Arlington housing developer Paradigm Development and applied for excavation permits to start work this month of October.
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Posted by
Heyli Regpala on Monday, October 11th 2010
The whole country is experiencing deflated home prices because of the flurry of foreclosures everywhere. Many real estate experts say that this status just might remain for a very long time. And the smaller parts that make up the bigger picture will also experience the same thing.
Central Virginia is proving to be a microcosm of the United States, mirroring how the real estate is faring. Short sales – which is how homes sold for less than loan value and bank-owned homes are called – are still abound in Central Virginia and are expected to hold down property prices and property values for a long time. Experts further warn that short sales and foreclosures will be a force to reckon with in the real estate market for years to come.
But Central Virginia has something it can be thankful for: the local market is indeed more stable than in most areas in the country. Despite reflecting the national trend, Central Virginia can boast of being more stable than other areas.
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Posted by
Heyli Regpala on Monday, October 11th 2010
There have been mounting pressure to freeze all foreclosure proceedings in all 50 states until the foreclosure scandal tides over and thorough investigation has been made. The country’s largest bank has heeded to the call and other major financial institutions might follow suit. One major bank though has flat out refused to freeze any foreclosure, saying no such fraud has happened within its bank.
Wells Fargo just might not put a halt to any foreclosure sales under its wing. Spokesman Chris Hammond says there’s no need for Wells Fargo to implement a foreclosure moratorium as it has always done everything in its power to keep homeowners in their homes instead of resorting to foreclosure. The bank works out the kinks with borrowers and looks at alternatives for keeping owners in their homes before foreclosing on a property.
This is why Hammond declares that San Francisco-based Wells Fargo is not joining the banks which have decided to freeze foreclosures. Bank of America has recently decided to expand its foreclosure stoppage from 23 states to all 50 states. JPMorgan Chase & Co., Ally Financial Inc., and PNC Financial Services Group have all frozen foreclosure sales in 23 states where foreclosures need to be approved by a judge in court.
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Posted by
Heyli Regpala on Monday, October 11th 2010
A lot of things are pointing to blanket stoppage of all home foreclosures: one is the recent move by Bank of America to freeze foreclosures in all 50 states and the other is the upcoming November 2 midterm elections where people will surely think about the reeling economy when they vote. However pressing these two events may be, a top White House adviser thinks that there is no need to halt all foreclosures.
White House Senior Advisor David Axelrod said last Sunday, “It is a serious problem. I’m not sure about a national moratorium because there are in fact valid foreclosures that probably should go forward.”
Axelrod reiterates that White House is doing something about the problem, urging lenders to come up with the reviews on flawed documentations as soon as possible. He adds that the administration is hoping the investigation into what has become known as “robo-signing” will move rapidly.
The fast-approaching midterm election sure has people thinking about economy, with foreclosures and evictions becoming top political issues in voters’ minds. Lawmakers, involved in a tight race, are now taking opposing sides.
Top House Democrat Rep. Debbie Wasserman Schultz of Florida says she is backing the foreclosure moratorium. She adds that the government should talk to banks regarding reshaping ‘troubled’ mortgages.
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Posted by
Heyli Regpala on Sunday, October 10th 2010
Perhaps with the way the commercial real estate industry is trying to find its grounding, everybody needs all the help they can get. And the launch of the first and only national commercial real estate show is the perfect venue to get tips and news regarding the market’s current state.
Launched last October 2, “Commercial Real Estate Show” can now be heard online at CREshow.com every Saturday and over the radio at Biz 1190 AM (WAFS) in Atlanta. Being the only national commercial real estate talk radio show, its target audience includes property owners, investors, business owners, and other people in businesses related to the commercial real estate. Each Saturday airing will begin with the latest commercial real estate news and ease to discussions featuring top industry guests.
The show is hosted by Michael Bulll, CCIM, whose experience in the industry covers 30 years. His sales and leases experience amounts to over $2.5 billion. He has also founded Bull Realty, a 32-member commercial brokerage firm that sells commercial properties and lad for 74 servicers and banks.
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Posted by
Heyli Regpala on Sunday, October 10th 2010
Have you ever heard of anyone collecting title insurance? Perhaps none; yet if you are going to buy a home or refinance a mortgage, a title insurance gets the largest chunk in the itemized estimate for closing costs and fees. Though most home buyers and refinancers don’t bother to question this anymore because of the tiresome process of asking and shopping for better insurance providers, the recent buzz on foreclosure freezing by some banks and mortgage providers bring to light the immense importance of title insurance.
A title insurance is supposed to cover a home buyer from cases wherein other people turn up after the house has been bought and claims rights to the house. Title insurance providers run a title search and sift through government filings related to the property prior to it being bought to lower the chances of insurance being claimed later on. But if the insurers miss something and someone else do turn up later on, insurers would have to provide legal counsel or settle with whoever is claiming.
Sounds like title insurers are indeed champions of home buyers and refinancers, right? Not really; the truth is, they are more concerned about lenders, real estate agents, and lawyers who can give them more business. Though kicking back money from companies and brokers who send insurers business is technically not allowed, there’s nothing much everybody can do since title insurance is required if there’s mortgage involved.
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Posted by
Heyli Regpala on Saturday, October 9th 2010
The heat is on: after pressure from the Senate and more homeowners, the country’s largest bank gives in.
Last Friday, Senate Majority Leader Harry Reid, D-Nevada pleaded to major mortgage servicers and banks to extend the recent foreclosure freezing to all fifty states. According to him, if homeowners in 23 states get a chance at delaying foreclosures, so do those from the remaining 27 states. And it seems that Bank of America has heeded to the plea.
The country’s largest bank, Bank of America, has announced last Friday that it is widening its investigation into the flaws of the foreclosure procedures. As a result, foreclosure sales in all 50 states are now put on hold. The bank previously froze foreclosure sales in the 23 states where foreclosure must be approved by a court.
Bank of America, however, stresses that foreclosure process on delinquent borrowers will still push through. The only procedures that they are halting, according to their announcement, are the judgment and foreclosure sales.
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Posted by
Heyli Regpala on Friday, October 8th 2010
The commercial real estate, more than the residential, is slowly starting to pick up the pieces it shed when the economic crisis struck. And some companies are trying to ride the current commercial real estate rise. That’s exactly what Virtus Real Estate is doing by leveraging a unique investing approach.
Leading real estate private equity firm, Virtus Real Estate is currently investing based on demographic trends. Its current investment strategy emphasizes the role of specific demographic trends and seeks investments that are not tied down to major asset classes like bonds, stocks, hedge funds, and traditional types of real estate. The key trends, which serve as the basis of the firm’s investment strategy, are as follows:
- Baby Boomer Generation’s aging and growth
- Millenial Generation coming of age
- United States’ Hispanic market growth
- transitory nature and decreased job tenure of the American worker
The beauty of Virtus Real Estate’s investment strategy is that the trends being followed will happen whether or not S&P 500 is up or down 30%. Also, the firm’s target sectors are affected less by the current economic bubble and recession.
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Posted by
Heyli Regpala on Friday, October 8th 2010
Today’s real estate market is still trying to recover – values and sales are still down and homeowners are always in danger of foreclosures. This may be why some companies and pension funds are looking at cutting back on losses without sacrificing efficiency and performance. That’s what the largest public pension fund in the United States is aiming at when it withdrew its apartment complex portfolio from the largest global investment firm.
California Public Employees Retirement System, or more known as Calpers, is replacing BlackRock Realty Advisors as the manager of its $1 billion apartment complex real-estate portfolio. BlackRock has managed the apartment complex portfolio since 1998. The apartment complex portfolio will now be consolidated with GID Investment Advisers LLC, an affiliate of The General Investment & Development Cos.
“By consolidating our core multifamily portfolio under a single partner/manager, we anticipate lower costs, improved efficiency and enhanced performance,” says real-estate investment division head at Calpers, Ted Eliopoulos.
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