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The foreclosure market is very hot at the moment. Almost every bank owned foreclosure that is available is getting multiple offers. The reason that they are in such high demand has a lot to do with the time it takes to buy a short sale. Although the amount of short sale homes on the market is much higher than the amount of bank owned property, there is much higher demand for bank owned homes. The main reason for this is the fact that it usually takes a lot longer to get a short sale deal to close. A lot of the time it can take around six to nine months for a bank to respond to a short sale offer. Many buyers do not wan to wait that long to buy a piece of property. When purchasing a short sale buyers need to to come to an agreement with the seller and with the bank that has the loan on the home. Once the buyers offer has been accepted by the seller then it goes out for approval from the bank. Waiting for approval from the bank is usually what takes a long time. The banks can also decide to reject the offer, even if the seller agreed to it.

There is a shortage of available foreclosures now, but it seems as though that is all going to change. The amount of homes that are in the foreclosure process at the moment is staggering. According to an internet foreclosure tracker, there are a lot of homes in that are currently in the foreclosure process. Most of these homes are not going to get cured because the economy is bad and most people are not going to be able to make up the back payments. On top of the borrowers who are in foreclosure at the moment, there are almost as many home owners that are in the pre-foreclosure process as well. Most of these home owners are also going to loose their homes. What this means is that there is going to be a huge flood of bank owned homes in that are going to hit the market. If the banks try to sell all the homes that are being taken back, then the market is going to be effected.

If all these homes that are being foreclosed on are put up for sale it seems like the demand is not going to be able to keep up with the supply. At the moment prices are rising because of the low supply and high demand. Homes are being bid up above their asking price because of the amount of people who are making offers on them. There are not many homes available so the ones that are get bid up. It seems like this is going to change as soon as the supply starts to increase. If the supply increases to the point where all the buyers are satisfied, then the market will probably remain stable and still increase modestly. If every home that is in the foreclosure process right now is put up for sale, it is more than likely that the supply of homes is going to be so great that the market will have to drop. Most people think that there is no way that the market is going to drop again any time soon. It just seems that with so many homes that are going to be available that the demand is not going to hold up.

The banks might be trying to figure a way not to flood the market and cause the market to drop. Even now many banks are holding off on selling a lot of the homes that they have taken back. They are selling some of them but are not putting many up for sale. Nobody is quite sure why this is happening. It is however keeping inventory down and keeping prices up. Many borrowers can live in their homes that they have lost for up to a year or so before the bank decides to evict them and put the property up for sale. This is not always the case, sometimes the bank will sell the properties as soon as they get them. It just seems that eventually the banks are going to have to get rid of all the homes that they have taken back. Maybe they will try to only sell a few at a time so the market keeps rising. Regardless of which way it goes, there is still going to be a lot more bank owned foreclosures available. Hopefully there will be enough inventory to meet the demand, and not so much that the property prices start to drop.

Once you have chosen your dream home, the most important thing is to ensure a smooth closing. Most home buyers and sellers count on their Real Estate Professional to guide them through this process. As an escrow professional, I know home buyers and sellers are often nervous about the process. If a Realtor wants to truly market themselves as an expert in their field, they should learn the settlement procedures inside and out.

A knowledgeable real estate agent must be familiar with the mortgage lending process, even if they are primarily working with sellers. The sellers will become reliant upon the buyers mortgage lender to ensure timely closing and disbursement of funds. If the Real Estate Agent is going to represent buyers, this is vital to ensure a smooth closing. Most of the larger lenders will offer seminars to help inform Real Estate Agents on typical lending practices.

Another important part of the settlement process is the title insurance or lien search. The Realtor must be prepared to explain to their client the ins and outs if a defect on title were to arise. The Agent must also be familiar with the typical charges associated with searching and insuring a clear title. These cost vary from state to state, and the responsibility of the buyer or seller to pay for these charges also vary by region.

Lastly, it is an absolute necessity for the Realtor to be knowledgeable of the HUD-1 settlement statement. This document explains to the client in detail all the charges associated with the transaction. The HUD-1 will provide the buyer and seller with their bottom line. An informed Real Estate Agent will be able to catch any mistakes or incorrect charges to their client. Knowing what is being charged and why is vital to provide excellent representation of the buyer or seller in the transaction.

The settlement process can be overwhelming to a buyer or seller, especially if this is their first or second transaction. The client has obtained a Real Estate Agent to guide them through the purchase or sale of the property. Representing the client is so much more than showing them properties or putting up a sign and finding a buyer for their property. If a Realtor can properly inform their client of each step towards the settlement and disbursement of the transaction, they are truly representing them.

The real estate market can be visualized as a massive pyramid. There are very few multi-million dollar properties at the top of the pyramid, and a large number of relatively inexpensive entry-level properties forming the base. Like any structure, if the foundation is weakened, the structure may collapse. In the same way, housing markets collapse from the bottom up due to problems with affordability.

The foundation of a residential real estate market is the entry-level buyer. Entry-level buyers are generally young people starting to form new households. When homeowners want to sell their house and move up to a nicer one, someone needs to buy their house. If you follow this chain of move-ups backward, eventually you come to an entry level buyer. If there are no entry level buyers pushing the sequence of move ups, the entire real estate market ceases to function.

The entry level market was initially boosted the moment 100% financing became available because many more people were enabled to purchase; however, it was imperiled at the same time because of the change in savings incentives. This market was subsequently destroyed the moment 100% financing was eliminated because few entry-level buyers had a downpayment and very few people were in the process of saving to get one.

In the past, people would rent and save money until they had the requisite downpayment to acquire a house. The barrier to home ownership was not the ability to make payments; it was having the necessary downpayment money. When downpayment requirements go up, the number of people capable of buying a house declines considerably, particularly for entry-level buyers who must save this money rather than transfer it from a previous sale. Since few potential entry-level buyers were saving money during the rally, sales volumes suffered dramatically in the wake of the bursting real estate bubble.

The weakness in the base of the housing market is going to serve as a drag on sales and pricing for many years to come. The government will likely come up with some artificial stimulus to encourage sales, but once the stimulus wears off, the same underlying problems will resurface. We must rebuild the base of the housing market through savings and stable financing. This will take time because the bad incentives and practices of the housing bubble.


FBI warns real estate buyers and investors about the highly increasing frauds in mortgage. Complaints about these mortgage frauds have been piling up and would almost certainly break the record of last years reports. For the first six months of this year, suspicious activity reports have risen to an alarming 33,359. This amount would most likely reach and even surpass the total of the entire previous year of 46,717, projecting to a shocking 70,000 according to the FBI.  Investigations also include potential crimes which are suspected on corporate entities. The FBI released their final report on the frauds during the year of 2007 showing that the investigated frauds rose by 47%.

by: Vii

couple looking at house
When buying a new house, you should consider not only the price of the property and its potential resale value. It is not the just the economic worth that is important to the buyer but convenience as well.

First of all, consider the location and how it is going to affect you and your family. How accessible is it from your place of work? How long will it take for the children to travel to and from their schools?

Similarly you should also give regard to the advantage of having hospitals and groceries nearby. Make sure too that the neighborhood has a healthy and friendly environment. Take time in deciding. Buying a house is a major decision so don’t rush.


Investing is always a tricky thing. Unless you are sure that what you are investing will not only place you at a financial loss but will also earn for you, then it is really always a matter of choosing the best possible risk. Property investment can be a good thing. Most often than not, owning land works well for you. However, history will show that this can also drain you if you choose unwisely or if you do not plan your budgets accordingly.


When investing in property, there are some simple indicators that you can use as your guide to making a good investment. Look at the demand for prices by looking and comparing prices. Those that are higher are likely in places of higher demand. Look at taxes too. Some areas have higher taxes than others making them less palatable for investment. Also, look at school ratings. If schools in the area are rising in ranks, the area will probably become a popular place especially for families.

While you are trap with your daily schedules both at home and at work, you may find an urgent matter that needs your attention. It may be a simple house repair or a major decision of selling a property for a reason. Whatever it may be, of course you want to ensure the quality that you will gain from attending to this urgent need.

Talking about quality, it is one thing that we are often times after for. So whether you decide to get the service of a professional or be the one to offer service to others, quality of an output will prevail. And for instance, due to an urgent financial need or you feel like moving to other place, you may find selling a property could help you out. The quality of your property for sale is significant.

Selling out a property takes time. One of the common properties for sale nowadays is the house. Posting a house for sale on a market list is easy but finding and convincing a buyer may be difficult. You may need the help of a person who has an expertise in selling a real estate property. Finding a real estate brokerage can be a help.

What is a full service real estate brokerage? Real estate brokerage (or broker) acts as intermediary between you as the seller to your potential buyers. A broker is not just a mere intermediary because he or she has to be authorized or licensed to execute the job. The job is not only limited to this but also includes searching for either a home seller or buyer for his or her client. Furthermore, he or she provides guidelines and prepares the necessary things for a faster deal closure.

Answers to the question what is a full service real estate brokerage can help you analyze the pros and cons that you have to consider in selling your house. What is a full service real estate brokerage? Take a look at the following:

o Comparing the value of your property to others to give it a reasonable price.

o Exposing your property through different real estate strategies to catch the eyes of
potential buyers.

o Providing guidelines and consultation to meet the contentment of the client.

o Preparing the documents needed for the buying and selling matters

Being able to avail what is a full service real estate brokerage is not actually a waste of money. A licensed broker, together with his or her subagents can actually sell your house in a short period of time because of his knowledge, skills, and ability to do so. Less time with reasonable earning – that what is a full service real estate brokerage about.

Considering what is a full service real estate brokerage can save your time and sell your house at the right price. With the competition that you can encounter in the real estate market, you need to be equipped as to not to be left behind in this area.

AppealGive your house more selling appeal by putting it in a spic and span state. Photos often lie and buyers know this and they will surely inspect every detail when they come to evaluate the house you are selling.

If you are currently staying in your house while it is already up for sale, make sure you give it a pristine look all the time, regardless of rowdy kids and annoying pets. All major repairs must have been made and scratched surfaces caused by pets must have been covered by polishing and repainting. Some buyers are very meticulous and particular about the manner by which previous occupants made use of the house. Hence it actually helps if the house appears to have been taken cared of and properly maintained.

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Why have potential clients send an emailed message, if you either do not have time to respond, or simply do not have the information needed to effectively respond? Once you start to generate leads whether using physical mailers or via the internet, you will want to automatically follow-up and convert those leads to closes, without overcrowding your already busy schedule.

These days, email seems to be the most effective and the least evasive method for contacting potential real estate buyers and sellers. Although almost everyone has an email address, it can be difficult to get potential clients to open your email instead of sending it to spam. A successful agent understands that the proper email followed by the appropriate response is the correct formula for generating leads.

Let’s face it, we’ve all received emails that look like they are from real people, yet they are nothing more than a sales pitch with a structured email and front man. These messages are quickly sent to the trash without ever being opened because the receiver can not tell if the mail is valid or a virus. I invite you to explore the idea that a solid subject is the first step toward eliminating spam confusion. As with most successful agents, once they’ve mastered how to structure the email, it becomes difficult to efficiently respond to every lead, as you generate more and more daily. As if just getting buyers and sellers interested isn’t enough, you are also left with the task of responding in just the appropriate way, that is sure to incentivize and mobilize the prospective client.

Responding to a lead is key to closing, and I submit that only the proper response can close the deal. But don’t leave your leads up to just anyone. If you do not have the right subject lines to your e-mails, your great offer may never reach your customer.

slavic-village.jpgSlavic Village in Cleveland, is experiencing a rise in crime rates. The culprit? Foreclosures in the neighborhood that forced a lot of homeowners to move out. The Country Treasurer reports that at least 800 homes have been vacated. It has attracted squatters and looters.
The area developed in the middle of the 19th century when Polish and Bohemian immigrants settled in to work in steel mills and factories in the area. With the foreclosure of houses, crimes have been up. Initially, the remaining residents tried to fight the criminals by organizing watch groups and prodding the police into action. Eventually, however, most residents just opted to move out.

As less of the residents remain, the fight to keep the crime rates down have become tougher.

This is not the first town to suffer this fate.

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