News Alerts. Oct. 28, 2013. Evening Edition. #RealEstate

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  1. Number of U.S. Mortgages Going Unpaid = 4,594,000 News Alerts. Oct. 28, 2013. Evening Edition. #RealEstate

    … there are 4,594,000 mortgages going unpaid in the United States. Comparatively speaking, the nation’s non-current total stood at 5,640,000 in September 2012.

    The economy, employment, and wages/salaries need to pick up if people are to remain in their homes and if we are to avoid a long stagnation or even another downturn.

    Think about how bad it would be were more than 2 million additional houses to be added to the known shadow inventory.

    Source …

  2. Japan’s Tax-Hike Test by Koichi Hamada – Project Syndicate News Alerts. Oct. 28, 2013. Evening Edition. #RealEstate

    …Japan’s government is believed to be the world’s poorest, with the finance ministry reporting that the gross debt/GDP ratio exceeds 200%.

    That is an exaggeration. For example, Ichizo Miyamoto, a former senior finance-ministry official, claims that, accounting for the government’s assets, Japan’s net debt/GDP ratio is below 100%, similar to that of the United States.

    If “Japan’s net debt/GDP ratio is below 100%,” then we think Japan would be foolish to introduce tax increases of any kind right now. It should wait until its economy is fairly heated.

    Source …*/

  3. Bonds Erase ’13 Losses as Three-Decade Rally Defies Bears – Bloomberg

    No surprise to our readers:

    Bonds of issuers worldwide from Morgan Stanley (MS) to the Spanish government have erased losses for 2013 as reports of the death of the three-decade bull market in the securities prove premature with the Federal Reserve maintaining its stimulus.

    “As long as the Fed is buying, it provides liquidity in the bond market which spreads out into all asset classes,” Anthony Valeri, a market strategist in San Diego with LPL Financial Corp., which oversees $350 billion, said in a telephone interview. “Everything really does tie back to the U.S.”

    Source …

  4. Top and Bottom Markets for September Rent Growth – Multifamily Executive Magazine

    Occupancy rates increased year over year in most of the top 10 rent growth markets according to a September report from Dallas-based Axiometrics. And while Florida is heating up, the Washington, D.C., area is certainly cooling down.

    Nationally, occupancy improved by about 29 basis points across all metropolitan statistical areas, according to the data. Yet, annual effective rent growth declined nationally, from 3.17 percent in August to 2.99 percent in September.

    Source …

  5. FHA Chief: No More Waiting for Congress on Housing Reform | Reverse Mortgage Daily

    The foremost tool outlined by the FHA Commissioner is the ability to quickly make and respond to changes, rather than awaiting regulatory action.

    An example she provided was the action necessary to make changes to the Home Equity Conversion Mortgage (HECM) program, which contributed to the $16.3 billion shortfall of the agency’s Mutual Mortgage Insurance (MMI) fund shortfall.

    The MMI fund consists of two parts, which are the HECM and single-family mortgage programs. The impacts of these programs on the MMI fund have led to a $1.7 billion bailout from the U.S. Treasury—the first time FHA required an infusion in its near 80 years of operation.

    “FHA needs to be able to step in quickly and effectively,” Galante said. “We would not be standing here talking about a Treasury draw if not for those two programs.”

    Source …

  6. Are Crowdfunding Deals Sound Real Estate Investments? | Zillow Blog News Alerts. Oct. 28, 2013. Evening Edition. #RealEstate

    Good advice:

    Good developers and investors with proven track records will propose quality development or acquisition projects and can get cheap financing from banks that compete vigorously for such deals. That’s going to give the investors the most profit — and maximizing profits is their goal.

    So what type of developer or investor would chase crowdfunded capital from the general public? These are typically inexperienced developers and investors, or ones with limited financing options due to pitching low-quality, high-risk deals. Some may have even lost prior investors’ money.

    Be careful. Do your due diligence.

    Source …