News Alerts. Nov. 1, 2013. Morning Edition. #RealEstate

Linking ≠ endorsement. Enjoy and share:

  1. Investor-owned homes often fall into disrepair as rental properties

    Kevin Smith, San Gabriel Valley Tribune, writes:

    Renters typically don't care as much about the appearance and upkeep of the properties as buyers who purchase homes to live in them. And many of the investors are absentee landlords who generally feel the same way. It's become a problem across the Southland, according to Marty Rodriguez, owner of Century 21 Marty Rodriguez in Glendora.

    "You have a lot of slumlords who will put as little money as possible into the homes to maximize their return." she said. "And it has an effect on the neighborhood if you have people who are not taking care of the landscaping and the outside of the homes."

    Walsh said he still gets asked about the long-feared "shadow inventory" of distressed properties that some predicted would trigger another surge in foreclosures. But those warnings, he said, didn't account for the breadth and depth of the government's eventual intervention in the crisis.

    "Some of the banks will vacate the properties and then put them on the market, but most of them are just selling them on auction.com," said Carlos Sandoval, a Realtor with Sierra Realty in Fontana. "Everything is just moving so quickly. I'll put a property on the market and within 24 hours I'll get calls from seven to 10 investors. Some are corporations that keep them to rent out and others are fixed up and sold to buyers — some from other countries."

    Being a slum landlord is not good business. There are laws in many places that allow the government to come after such landlords, costing those landlords much more than they gained with their short-term, slummy strategies.

    In addition, obtaining good insurance from reputable carriers is nearly impossible for such neglected properties.

    There's truly a very high liability-risk exposure for slumlords. Don't be one.

    On the shadow inventory, we've taken the same position in this site as stated above by DataQuick President John Walsh.

    Source … http://www.sgvtribune.com/business/20131 028/investor-owned-homes-often-fall-into -disrepair-as-rental-properties


  2. Calculated Risk: Freddie Mac: Mortgage Serious Delinquency rate declined in September, Lowest since April 2009

    … most of the reduction in the serious delinquency rate is from foreclosures, short sales, and modifications.

    Although this indicates some progress, the "normal" serious delinquency rate is under 1%.

    At the recent rate of improvement, the serious delinquency rate will not be under 1% until late 2015 or 2016.

    Source … http://www.calculatedriskblog.com/2013/1 0/freddie-mac-mortgage-serious.html


  3. Alan Greenspan owes America an apology | Dean Baker | Comment is free | theguardian.com

    Wow, Dean Baker really, really rips Alan Greenspan for Alan's utter failure as Fed Chairman.

    The horror story could have easily been prevented had there been intelligent life at the Federal Reserve Board in the years when the housing bubble was growing to ever more dangerous proportions (2002-2006). But the Fed did nothing to curb the bubble. Arguably, it even acted to foster its growth with Greenspan cheering the development of exotic mortgages and completely ignoring its regulatory responsibilities.

    We have to say that if we saw the bubble and coming collapse in 2002, which we did, then how in the world can Alan Greenspan, with all of the resources and data flowing at the Fed, not see it (rhetorical question, that).

    Source … http://www.theguardian.com/commentisfree  /2013/oct/28/alan-greenspan-housing-mar ket-crisis


  4. mainly macro: The 'official' cost of austerity

    What ended the EZ crisis was not austerity but OMT: if that had been rolled out in 2010 rather than 2012, other periphery countries could also have adjusted more gradually. And of course fiscal consolidation in Germany and some other core countries was not required at all. If instead we had seen fiscal expansion there, to counter the problem of hitting the ZLB, then the overall impact of fiscal policy on EZ GDP need not have been negative. (Section 5 of Jan in't Veld's paper looks at the impact of such a stimulus.) That means that over 3 years nearly 10% of Eurozone GDP has been needlessly lost through mistakes in policy. This is not the wild claim of a mad macroeconomist, but what simple analysis backed up by mainstream models tell us.

    We agree with Simon Wren-Lewis's analysis there.

    Source … http://mainlymacro.blogspot.com/2013/10/ the-official-cost-of-austerity.html


If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.

Hill & Usher (PropertyPak™ is a division) has many insurance offerings. See our menu above for more info and links.

Did this post help you? Let us know by leaving your comment below.

Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.

Furthermore, we, as insurance producers, are prohibited by law from disparaging the insurance industry, carriers, other producers, etc. With that in mind, we provide links without staking out positions that violate the law. We provide them solely from a public-policy standpoint wherein we encourage our industry to be sure our profits, etc., are fair and balanced.

We do not necessarily fact checked the contents of every linked article or page, etc.

If we were to conclude any part or parts of our industry are in violation of fundamental fairness and the legal standards of a state or states, we'd address the issue through proper, legal channels. We trust you understand.

The laws that tie our tongues, so to speak, are designed to keep the public from losing confidence in the industry and the regulatory system overseeing it. Insurance commissioners around the country work very hard to analyze rates and to not allow the industry to be damaged by bad rate-settings and changes in coverages. The proper way for people in the industry to deal with such matters is by adhering to the laws, rules, and regulations of the applicable states and within industry associations where such matters may be discussed in private without giving the industry unnecessary black eyes. Ethics is very high on the list in the insurance industry, and we don't want to lose the people's trust. That said, the industry is not perfect; but what industry is?

For our part, we believe in strong regulations and strong regulators.

We welcome your comments and ask you to keep in mind that we cannot and will not reply in any way or ways where any insurance commissioner could rightly say we've violated the law of the given state.

We are allowed to share rating-bureau data/reports and industry-consultant opinions but make clear here that those opinions are theirs and do not necessarily reflect our position.

Subscribe