Posts Tagged ‘pipeline’

Abandoned Homes Continuing to Hold Back the Market?

April 24th, 2013 Comments off

According to nationalmortgagenews, banks are the ones walking away from vacant homes these days, starting but not completing the foreclosure process because they do not want the responsibility for maintaining the property, resulting in hundreds of thousands of homes being withheld from the market. In some cases, homeowners who have already left the property are being hit with back taxes, repairs, insurance and unpaid debt. Thomas Fitzpatrick, an economist in the community development department at the Federal Reserve Bank of Cleveland, states “We’re seeing more and more, banks getting a judgment to sell a home but not taking it to a foreclosure sale. It may cost more to cure the back taxes and bring the property up to code than they could ever get from selling the property itself.” Data from RealtyTrac indicates 35 percent of the roughly one million homes in the foreclosure pipeline are abandoned and the servicer has not taken title to the property. Last year the Federal Reserve issued directives requiring servicers to notify borrowers and municipalities when they decide not to pursue foreclosure, but no time line was given and enforcement can be difficult. MHProNews has learned this may be contributing to the increase in prices on existing homes. Says Ruhi Maker, a senior staff attorney at the nonprofit Empire Justice Center in Rochester, N.Y. “I have long been convinced that the current run up in home prices is a false high. Once all these foreclosures are through the system we could see another decline in prices.”

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Builder Confidence Wanes

March 18th, 2013 Comments off

Single-family home builder confidence slipped for the third consecutive month, falling two points to 44 for March, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). MHProNews has learned any number above 50 indicates the outlook for the next six months is good rather than poor. NAHB Chief Economist David Crowe says the infrastructure that supports home-building has to re-establish itself. “During the Great Recession, the industry lost home building firms, building material production capacity, workers who retreated to other sectors and the pipeline of developed lots. The road to a housing recovery will be a bumpy one until these issues are addressed, but in the meantime, builders are much more optimistic today than they were at this time last year.” Regionally, the West gained four points, the Northeast remained unchanged, and the South and Midwest each lost a point.

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UMH Goes Shopping

March 1st, 2013 Comments off

StreetInsider informs MHProNews that UMH Properties, Inc. (NYSE:UMH) has finalized its deal for ten all-age MHCs for $67,500,000, a total of 1,654 developed home sites to add to its portfolio. The acquisition includes five communities in Ind., four in Penn., and one in Mich., with an average occupancy of 85 percent. UMH President Samuel A. Landy says, “With this acquisition, UMH has increased its portfolio by approximately 18%. These communities are an excellent fit with our existing portfolio. We believe that all of these communities will benefit from our sales and rental programs. Additionally, we have a strong acquisition pipeline in place and expect continued growth throughout the remainder of 2013.” A publicly-owned real estate investment trust (REIT), UMH now owns 67 MHCs comprised of 12,500 developed home sites. UMH closed today at 10.08, up +0.52%.

(Photo credit: UMH Properties, Inc.)

Home Improvement another Positive Housing Sign

January 28th, 2013 Comments off

Door and Window Market Magazine states a study by the Joint Center for Housing Studies at Harvard University indicates the market for remodeling is being stimulated by foreclosures being revitalized, seniors retrofitting their homes in response to changing needs, and energy conscious homeowners making their homes more sustainable. Homeowners over 55 accounted for more than 45 percent of all home remodeling, up from about 30 percent a decade earlier. Joint Center Director Eric S. Belsky says, “After limited spending during the housing bust, renovating the more than one million distressed properties that were sold in 2011 contributed nearly $10 billion to home improvement spending. With about three million more foreclosures and short sales in the pipeline, there is even more such spending ahead of us.” The study showed market spending on energy-related projects increased from 23 percent in 2007 to 33 percent four years later. MHProNews understands some of the remodeling uptick is the result of refinancings that save borrowers on their house payment.

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Delinquencies Drop

November 27th, 2012 Comments off

NationalMortgageNews reports residential delinquencies unexpectedly fell almost five percent in Oct. after spiking eight percent in Sept., according to Lender Processing Services (LPS). While the national delinquency rate at the end of Oct. hit 7.03 percent, delinquencies have fallen over seven percent since Oct. 2011. LPS says when late payments rise, it usually continues into the following month, but that did not happen this year. Although not in foreclosure, 3.5 million properties are 30 or more days late, and an additional 1.5 million are 90 days delinquent. As of Oct. 31, 1.8 million are in the foreclosure pipeline. As MHProNews has learned, states with the fewest delinquencies are Montana, North and South Dakota, Wyoming and Alaska. Those with the most include Florida, New Jersey, Mississippi, New York, and Nevada.

(Image credit: foreclosuresupport)

Multifamily Rental Units Increasing Nationally

September 10th, 2012 Comments off

IHS Global Insight economist Patrick Newport, talking to nationalmortgagenews, says, “The trend is still away from homeownership. You still have a lot of foreclosures in the pipeline and people who lose their homes will mostly end up renting.” Rental rates have risen from 2.2% in 2011 to 4.1% in 2012, and the National Association of Realtors (NAR) predicts that number will hit 4.4% in 2013. Meanwhile, vacancy rates on multifamily units have dropped to 4.2% in the third quarter from 5.6% one year ago. Builders added 37,700 multifamily units to the inventory last year, and NAR forecasts 79,850 units will be added this year, and that number will blossom to 148,600 in 2013. As MHProNews has learned, Fannie Mae’s Kim Betancourt says, “There is a potential for oversupply occurring over the next 24 months in a limited number of submarkets.”

(Photo credit: zimbio)