turn key investment properties

FHA 203k renovation and rehabilitation mortgage

2011-09-26T10:58:00.000-07:00

The FHA 203k renovation and rehabilitation mortgage clears the way for numerous homeowners to get the very best buy on purchasing their home. In my career as a mortgage loan officer for the past 20 years, I have seen my customers seal some of the very best deals buying real estate using the FHA 203K Repair and Renovation loan.

My customer, Mr L, called me when they put the last finishes on their repairs on the house they purchased for just cents-on-the-dollar. Here’s how he snagged the “deal of the century” as we are calling it.

Mr. L knew that his family needed to purchase a home that would more than meet their needs but still remain within their budget. They had been on the hunt for their perfect home for about 2 years. I could hear the excitement in his voice when Mr L called me to get the loan application completed and the preapproval letter drafted so that his contract could be accepted by the seller.
“This is the perfect house for us, Jo. It is so unbelievable that we getting this house in this neighborhood for so little money. Not only is our payment going to be within our budget, but is going to leave room for other stuff. What a deal!”

Here is the process we went through to get the perfect house for Mr. L.
(1) First he looked at the house with his contractor and got an idea of how much it would costs to repair
(2) I gave him an estimate of what terms would be on the loan
(3) He and his realtor wrote an offer to purchase the home and it was accepted.
(4) I set up an appointment for the appraiser, the HUD consultant and the homebuyer to meet at the property. The HUD consultant reviewed the specifications and cost estimates from the contractor who would do the work. The appraiser gave us a value for the property. Later the HUD consultant delivered the “official” reasonable costs estimate that the mortgage office would use to calculate Mr. L’s loan amount.
(5) Mr. L submitted his income and asset documents and loan disclosures to the mortgage office and we submitted the loan to underwriting for approval.
(6) Mr. L closed on his loan leaving the money for repairs in escrow to be pulled out little by little as the repair on the house gradually came to completion. The HUD consultant came out 4 or 5 times to inspect the work as they would get to a certain stage in repairs. At each inspection, a draw was made on the repair money sitting in the escrow account to pay the contractor until the work was completed.

Here is how the 203k loan structure looked approximately for Mr. L. :
Sales price: $80,000
Cost of renovations: $38,000
15% reserve on renovations: $5,700
$123,700
X 96.5 (to subtract 3.5% mandatory down payment)
$119,371 (FHA base loan amount)
X 1.01 (adding 1% upfront FHA mortgage insurance)
= $120,564 (total loan amount with upfront MIP added)
Mr. L’s money needed to close:
Down payment 3.5% $4,339
Closing costs including $800 HUD consultant fee & 3 inspections $5,000
Escrowing property taxes and insurance $2,700
Seller agreed on contract to pay $2,400 of closing costs for buyer. (FHA allows the seller to pay up to 6% of the closing costs if it can be negotiated on the contract)

$4,339 dp + $5,000 closing costs + $2,700 tx & ins=$12,039 minus seller pd $2,400=Mr L to pay $9,639 to close.

The house value was assessed at over $200,000. What a deal for Mr. L! What a deal for anyone who can buy a house that far below market price, fix it up and walk into an instant 40% equity position!

The FHA 203K mortgage loan financing was a great real estate home purchase for Mr. L living in Memphis.

Jo Garner, Mortgage Office
Evolve Bank & Trust
(901) 482-0354 jogarner@mindspring.com
www.MoneyShoppe.NET

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“SHOW ME THE MONEY”

2010-11-04T06:05:00.000-07:00

“SHOW ME THE MONEY”
TREASURE HUNTING FOR CLOSING FUNDS

By: Jo Garner, Mortgage Officer
Evolve Bank & Trust (901) 482-0354
jgarner@getevolved.com

“Jerry McGuire” was a 1996 award winning film with the resounding catch phrase, “Show me the money!” Lenders have been repeating this to their borrowers for years. Where can borrowers go to find money when they do not have it to show?

Three areas to search are the borrower’s forgotten assets, gifts from family or employers and move-in costs paid by third parties. Sinking a shovel into these three areas has turned up pay dirt in the past. Here is a treasure hunting map detailing some clues.

Gift From Family: Gifts can come from family members or employers. The amount of the donation varies according to different loan programs. The donor will be required to document the source of his funds and that the money is a gift to the donee not requiring repayment. If the family member giving the money does not want to cash in a certificate of deposit or stock fund, he can borrow against the asset to give to the donee.

Borrower’s Forgotten Assets: Whole life insurance policies or annuities may have a cash value that can be borrowed. Many times the borrower does not realize the insurance she purchased years ago has a cash value that can be borrowed to pay the move-in costs.

Loans secured on certificates of deposit, stocks and bonds, and durable assets such as cars can be used as acceptable sources of funds to close as long as the loan is secured on an asset owned by the borrower. The payment must be added into the debt-to-income ratios for qualifying purposes

IRAs, 401(k)s and Retirement Funds. There can be heavy financial penalties for pulling money from these sources. However, many companies allow the homebuyer to borrow against these assets with no penalty. The repayment terms may be calculated in the borrower’s debt-to-income ratio.

Sale or Cash Out Refinance of Existing Real Estate Property can generate needed funds to close on another property. Lenders will require the HUD 1 Settlement Statement or sufficient proof of the source of funds.

Tax Refunds can provide a surprising source of closing funds.

Move-In Costs Paid By Third Parties: Sellers are as motivated to sell a house as the buyer is to purchase. Sellers can pay up to 6% of the sales price toward the buyer’s costs on FHA loans. If the borrower is getting a conventional loan above 90% loan-to-value the seller can pay 3%. If the loan-to-value is 90% or less, the seller is allowed to pay costs up to 6% of the sales price or value whichever is less.
Investor loans allow the sellers to pay no more than 2% no matter how much money the investor pays down.

Lenders are motivated to close the transaction and sometimes can bump up the interest rate slightly in order to use “premium pricing” to pay the borrower’s prepaid taxes and insurance or some of the closing costs. In most cases the rate is increased .25% and the difference in the monthly payment is minimal.

Charitable Organizations and government agencies such as Tennessee Housing Development Agency have programs that provide down payment assistance to borrowers. Some of the well known programs are City of Memphis Down Payment Assistance, Shelby County Down Payment Assistance, United Housing, Inc.. For the down payment assistance grants and loans, the borrower is required to meet a minimum or maximum annual income guideline and sometimes are required to be first time homebuyers. First time homebuyers are defined as buyers who have not owned real estate in the last 2 to 3 years.

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housing market improving

2010-07-09T06:28:00.000-07:00

housing market improving

The housing market has improved in the last two years to the extent that John Burns Real Estate Consulting sees the market as possibly approaching the beginning of its next up cycle. Three factors needed for such a transition include demand, supply and investment, as the firm noted in a March 2008 report. More than two years later, job growth is coming back slowly and renters are beginning to recognize favorable buying conditions. New home construction is at an all-time low and is likely to remain low until REO inventory clears. As for the investment situation, mortgage rates and home prices fell dramatically since March 2008, creating the best buyer affordability conditions in about 30 years, the firm said. "We are at Stage 1 (The Bottom) and heading into Stage 2 (The Beginning)," CEO John Burns said in a statement today. "While we think Stage 2 will last longer than usual, we want to point out that the downside of investing in housing right now is about as low as you will ever see."

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Home Loan Demand Sinks to 13-Year Low

2010-05-20T07:31:00.000-07:00

Home Loan Demand Sinks to 13-Year Low

Demand for loans to buy U.S. homes shriveled to a 13-year low last week, following the expiration of federal tax credits, while near-record low mortgage rates stoked refinancing, the Mortgage Bankers Association said on Wednesday. Mortgage purchase applications sank 27.1 percent to the lowest level since May 1997 in the absence of the popular government support, the group said. U.S. housing groped for footing after more than a year of homebuyer tax credits worth up to $8,000 expired on April 30. Requests for home purchase loans have fallen almost 20 percent over the past month despite low borrowing costs. "The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season," Michael Fratantoni, the industry group's vice president of research and economics, said in a statement.

Overall loan requests were down 1.5 percent, on a seasonally adjusted basis, in the week ended May 14, cushioned by a 14.5 percent jump in mortgage refinancing applications as home loan rates neared historic lows. Average 30-year mortgage rates fell 0.13 percentage point last week to 4.83 percent, the lowest since last November, the MBA said. The record low was 4.61 percent in March 2009, based on the group's survey, which has been conducted since 1990. Low borrowing costs and stabilizing home prices are being offset by near double-digit U.S. unemployment and a looming supply of foreclosed properties yet to hit the market. The worst of the housing crisis is over but recovery will be long and slow, most economists agree.

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#1 Turnkey Whitehaven rental
18.46% ROI
Video walk through at http://www.youtube.com/jdsproperties1

5024 Shubert Memphis TN 38109Memphis TN 38109 . 903sqft 3 bed 1.5 baths.
Purchase price of only $27,500 ARV= 60,000
Estimated monthly rental income $700/mth (8,400/yr)
Minus management fee 56/mth
Minus monthly taxes 78.77/mth
Minus monthly insurance 30/mth
Minus maintenance 56/mth
Minus vacancy 56/mth
= $423.23 positive monthly cash flow (5,078.76/yr) =18.46% ROI

EMAIL OR CALL JDS PROPERTIES @ (901) 212-7246 FOR MORE INFO OR PICS

House Prices Up 5.1 Percent in April Amid Slower REO Growth

2010-05-13T09:25:00.000-07:00

House Prices Up 5.1 Percent in April Amid Slower REO Growth

Home prices in April gained 5.1% from last year, while REO levels across the country slowed their climb, according to the real estate data provider Clear Capital. The firm measures home prices on a rolling three-month period. REO took up 29.6% of the market in April, less than a percentage point of growth from 28.9% in March when levels increased from 26.1% in February. The best performing markets manage to post positive gains as the tax credit expired in April. Alex Villacorta, senior statistician at Clear Capital, said an interesting dynamic their seeing is the distinction between markets that resist increased levels of REO and those that remain sensitive to them. “For example, the highest performing metro areas have seen prices remain relatively flat over the last quarter despite REO saturation rates averaging just above 33 percent. Contrast this with the lowest performing areas which have seen prices drop dramatically with average declines of more than 10 percent and average REO saturation rate less than those in the highest performing areas,” Villacorta said. “This paradox suggests that price trends are not wholly dependent on distressed sale volume, and re-enforces the need to understand local market trends.”

wanna invest in real estate? check us out at www.jdspropertiesmemphis.com

Whitehaven rental

12.88% ROI

324 Dreger Memphis TN 38109. 1595sqft 4 bed 2 baths.
Purchase price of $39,000 ARV= 80,000
Estimated monthly rental income $750/mth (9,000/yr)
Minus management fee 60/mth
Minus monthly taxes 121.13/mth
Minus monthly insurance 30/mth
Minus maintenance60/mth
Minus vacancy 60/mth
= $418.87 positive monthly cash flow (5,026.44/yr) =12.88% ROI

EMAIL OR CALL JDS PROPERTIES @ (901) 212-7246 FOR MORE INFO OR PICS

New home sales surge

2010-04-28T08:34:00.000-07:00

New home sales surge

Sales of new single-family houses in March 2010 were at a seasonally adjusted annual rate of 411,000, 23.8 percent above the March 2009 estimate of 332,000, according to estimates released jointly Friday, April 23, 2010 by the U.S. Census Bureau and the Department of Housing and Urban Development. March new sales are 26.9 percent above the revised February rate of 324,000. The $8,000 first-time home buyer tax credit expires Friday, April 30, 2010. There is also a $6,500 credit for repeat buyers. “Undoubtedly, the tax credit is working,” said Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich. “Builders are seeing a growing optimism among consumers.” “The near record-breaking 27 percent increase over February was the result of home buyers taking advantage of the tax credit as well as a carryover of demand that was held back by unusually bad weather in February,” said NAHB Chief Economist David Crowe. “The increased sales are very welcome news and sales will continue to improve, although we expect them to plateau in late spring and early summer when the credit expires. Following that, the housing momentum will be carried forward by low interest rates, pent up household formations, excellent affordability conditions and a budding employment growth,” Crowe added.

Regionally, sales increased 35.7 percent in the Northeast, 4.3 percent in the Midwest, 43.5 percent in the South and 5.7 percent in the West. The nationwide inventory of new homes on the market dropped a negligible 0.8 percent in March, to 227,000 units as builders continued to maintain small inventories. With the increased sales pace and low inventory level, the month’s supply of new homes for sale dropped from 8.6 in February to 6.7 in March. The median sales price of new houses sold in March 2010 was $214,000; the average sales price was $258,600.

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HAFA coming April 5

2010-04-02T10:38:00.000-07:00

HAFA coming April 5

Short sales are already picking up in the distressed-property market, and the trend is expected to explode in coming weeks, when the government starts handing out cash to encourage lenders to close these deals. "Banks have ramped up short sale approvals," said Duane Legate of House Buyer Network. "They're hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales." Short sales accounted for 17% of all residential real estate sales in February, up from nearly 13% in November, according to a monthly real estate market survey by Campbell/Inside Mortgage Finance.

And Bank of America, the country's largest mortgage servicer, has more than doubled the number of short sales it processed in recent months. This is a huge change from even just six months ago when the short-sale market was stalled and most people would describe the process has real estate hell. Because lenders stand to lose so much on these transactions, they have been reluctant to make short sales happen, often waiting months before getting back to potential buyers. But that has been changing.

For one thing, banks realize that they make out far better financially with a short sale than a foreclosure. "The lenders lose 50% on a foreclosure and only 30% on a short sale," said Glenn Kelman, founder of the real estate Web site Redfin. "And short sales offer a way to get distressed properties off their books quickly." And on April 5, lenders and mortgage investors will have even more incentives to offer troubled borrowers short sales instead of foreclosing. Under the new Home Affordable Foreclosure Alternatives (HAFA) program, borrowers will earn a $3,000 "relocation incentive" and servicers will get $1,500 for handling a short sale. The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims. Lenders participating in the program must also determine the market values of properties early on
and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days.

What's in HAFA?

The coming boom in short sales may accelerate the end to the foreclosure crisis by cleaning out the overhang of borrowers in distress and replacing them with more stable homeowners. Plus, these sales are better for distressed borrowers because their credit scores suffer less. Going through a foreclosure can knock 200 points off a FICO score, twice as much as the penalty for a short sale. I'll provide details as they come along, but here's a primer from the National Association of Realtors (NAR):

- Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.

- Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.

- Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).

- Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6%).

- Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).

- Uses standard processes, documents, and timeframes/deadlines.

- Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).

- Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

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Buffett predicts housing recovery in 2011

2010-03-02T09:15:00.000-08:00

The Oracle of Omaha, in his annual letter to shareholders of Berkshire Hathaway Inc., has written, “Within a year or so, residential housing problems should largely be behind us. Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.” The decline in the U.S. housing market has led to record foreclosures and an over-supply of housing. Buffett thinks it will take another year before housing demand catches up with supply. Buffett said reduction in new housing starts is the best way to reduce inventory overhang, and joked that the only other options are to destroy existing homes in a “tactic similar to the destruction of autos that occurred with the ‘cash-for-clunkers’ program” or “speed up householder formations by, say, encouraging teenagers to cohabitate, a program not likely to suffer from a lack of volunteers.” Berkshire, which owns companies in the real-estate space, has su
ffered on account of the housing slump. Clayton Homes, the pre-fab housing company owned by Berkshire, saw a drop in profit by about 9% last year, while earnings at Shaw Industries, a carpet manufacturer, dropped 30%. Buffett decried the “punitive differential” in mortgage rates between factory-built homes and site-built homes. While buyers of site-built homes obtain a 30-year loan at a little over 5% on account of guarantees offered by Fannie Mae and Freddie Mac, buyers of homes built by Berkshire companies such as Clayton pay as high as 9% on their mortgage since “very few factory-built homes qualify for agency-insured mortgages.”

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Refinance loans up 21%

2010-02-19T10:30:00.000-08:00

Refinance loans up 21%

Demand for home loans rose to a six-week high on a mini refinance wave, with borrowers pushing to lock in rates before they climb later this year, the Mortgage Bankers Association (MBA) said today. Applications to buy homes and refinance loans jumped last week to mid-December levels as average 30-year mortgage rates held near 5%. The industry group's mortgage index jumped 21% last week, fueled by a 26.3% leap in demand for refinancing as purchase loan requests increased 10.3%. The 30-year mortgage rate dipped 0.01%age point to 5.01%. But this borrowing cost was 0.40%age point above the record low set last March and seen headed higher throughout the year. "Rates continue to hover around 5%, quite low by historical standards, but are well above the record lows seen in 2009 and hence are not generating substantial refi volume," said Michael Fratantoni, MBA's vice president of research and economics.

Affordability remains high with mortgage rates still historically low and average home prices plunging about 30% from 2006 peaks before stabilizing since last summer. The government's bonus to first-time and move-up buyers via a tax credit remains in place for several more months, luring buyers who have been sitting on the sidelines waiting for some signs of stability. "I do think the housing recovery in the U.S. still has legs and is firmly in tact," said Ian Pollick, economics strategist at TD Securities in Toronto. "There's a lot of pent up demand in the system right now, there are a lot of really really good deals."

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Freddie Mac mortgage refinance purchases rise 41%

2010-02-02T08:46:00.000-08:00

Freddie Mac mortgage refinance purchases rise 41%

The volume of refinance loans bought by mortgage giant Freddie Mac swelled 41% in December from the previous month to $27.3 billion. In November, Freddie bought $19.3 billion of refinance loans, a 7% gain from October. Freddie’s total mortgage portfolio grew at an annualized rate of 5.7% in the month, while at the same time the aggregate unpaid principal balance of the mortgage-related investments portfolio slid to $755.3 billion, from $761.8bn at the end of November. Purchases and issuance totaled $44 billion in December, bringing the full-year 2009 total to $548.37 billion.

The delinquency rate in Freddie’s single-family portfolio grew 15 basis points to 3.87%, while the multifamily delinquency rate was virtually flat at 0.15% in December. A year earlier, the single-family portfolio was 1.72% delinquent, while the multifamily portfolio was 0.03% delinquent. Freddie’s guaranteed participation certificates and structured securities issued increased at an annualized rate of 5.9% in December. Issuance for the month included $4.4bn of guarantees under the Housing Finance Agencies (HFA) initiative, in which the Treasury Department bears initial losses on these securities up to 35% of the program-wide issuance.

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FHA announces significant policy changes

2010-01-21T09:14:00.000-08:00

FHA announces significant policy changes

The Federal Housing Administration (FHA) insures about 30 percent of new loans, and its health is vital for the housing market. But as foreclosures have risen, the government agency has seen its losses rise and its reserves sink below the minimum level required by Congress. According to the Mortgage Bankers Association (MBA) more than 18 percent of FHA borrowers are at least one payment behind or in foreclosure, compared with 14 percent for all loans. In addition, some unscrupulous operators have shifted their business to the FHA after the subprime business went bust. Last week, the FHA served subpoenas on 15 mortgage companies with suspiciously high default rates for FHA loans, part of a broad crackdown on dubious lenders. To address the problems, the FHA announced policy changes designed to more revenue into the agency, while at the same time keeping loans available.

The changes include: 1) homebuyers will Pay an upfront mortgage insurance premium of 2.25 percent of the total loan amount, up from the current level of 1.75 percent. FHA officials also plan to ask Congress to increase the maximum annual premium that FHA can charge. Borrowers will still be able to wrap these fees into the total amount borrowed. 2) homebuyers will need a credit score of at least 580 to qualify. Borrowers with a score lower than 580 will need a down payment of at least 10 percent.

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better to pay with cash

2010-01-13T13:32:00.000-08:00

It’s getting harder and harder for qualified buyers to get a loan to purchase investment property these days, so JDS Properties offers many affordable CASH ONLY properties for investors who have cash and want to invest in real estate. Some of the benefits of investing with cash in real estate as opposed to some other investments are: instant positive cash flow (usually of $600+ each month), instant equity (usually $15-30K), your investment is tied to a piece of property and not just a piece of paper, and tax benefits.

Our typical CASH ONLY investment property will cost around $30,000 with rehab included in that price, be rented for more than $700/mth, and have about $20k in equity.

Here is an example using one of our deals we have available in January 2010

800 Lydgate Memphis TN 38116 1,377sqft 3 bed 1.5 baths.

Purchase price of $33,000 (rehab included in price)

Projected monthly rental income $775/mth (9,300/yr)

Minus management fee 62/mth

Minus monthly taxes 90.75/mth

Minus monthly insurance 40/mth

Minus maintenance 60/mth

Minus vacancy 55/mth

= $467.25 positive monthly cash flow (5,607/yr)

=16.49 ROI

(467.25 monthly cash flow and a 16.49 ROI sure beats the stock market)

What's up with real estate in 2010?

2010-01-04T14:38:00.000-08:00

What's up with real estate in 2010?

According to Michael J. Malpede, of Easy Forex, the rebound in US housing market is another potential positive for the outlook for the US economy. The US housing market has improved and shows sign of stabilization. The housing market will benefit because the inventory of new homes are at their lowest level in 17 years, but the outlook for housing remains uncertain. A number of analysts suggest that the housing market remains weak and that the recovery was driven by foreclosures and short sales. The Fed announced plans to add additional support to government mortgage agencies (Fannie Mae, Ginnie Mae, and Freddie Mac) and the tax credit for first time home buyers has been extended to April 2010. This could keep the recovery in US housing market going during the first half of 2010, but it's uncertain what happens to the housing market when the Fed stops buying mortgage-backed securities next year. Still-rising mortgage delinquencies signal more foreclosures. "Delinquencies are a precursor to foreclosures," said Cameron Findlay, chief economist at LendingTree.com, in an interview Tuesday. "We're not seeing any decreases in delinquencies, which is very concerning."

More people are falling behind on their monthly payments during the recession as unemployment hovers around 10%, and this figure isn't expect to do any wild dips in the immediate future. Earlier this week, Fannie Mae (FNM) said serious delinquency rates in its conventional single-family-home mortgage portfolio rose to 4.98% in October from 4.72% the previous month. A year ago, the rate stood at 1.89%. A wave of foreclosures would only add to the inventory overhang of unsold homes and delay a lasting recovery in residential real estate. In spite of all this, Moody's Investors Service upgraded its outlook on the U.S. home-building industry to stable from negative. It cited strengthening indicators like housing starts, sales, and improving home affordability. "The industry's recovery remains precarious, however, given the sizable number of potential foreclosed homes that might eventually come to market, as well as the anticipated continued decline in home prices in 2010," Moody
's said. "The U.S. government's support for the sector is a critical source of strength. A premature removal of government backing would put the industry's outlook at considerable risk of returning to negative."

visit www.jdspropertiesmemphis.com for great wholesale deals

More foreclosures coming

2009-12-09T07:57:00.001-08:00

More foreclosures coming

Diana Olick has climbed on board with an increasing number of people who thinks foreclosures are still going to hit us like a ton of bricks, driving home prices even further down. She quotes Lender Processing Services: "The November Mortgage Monitor report, released by Lender Processing Services, Inc. (NYSE: LPS), reveals a nationwide loan deterioration ratio higher than 3:1 - indicating that for every one loan improved, three more loans are deteriorating... The number of foreclosures on the market continues to stall as foreclosure timelines extend. Nearly 30 percent of properties that have been in foreclosure for 12 months have not yet been put on the market for sale - twice the level of the prior year. Foreclosure inventories continued to climb to record levels. October's foreclosure rate stood at 3.14 percent, a month-over-month increase of 0.7 percent and a year-over-year increase of 85.1 percent." And she quotes Mark Zandi, who we quoted yesterday: "This lull in foreclosure sales has resulted in the price gains in the past few months," he told Reuters. "Foreclosure sales will increase, and home prices will resume their decline by early 2010 as mortgage servicers figure out who will not qualify for a modification."

Thank you for your business

JDS Properties
Building YOUR wealth with real estate.
John D. Skaggs
Owner
(901) 212.7246
FAX 866.900.1827
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3Q09 - Delinquencies up, rate slows

2009-11-18T06:19:00.000-08:00

3Q09 - Delinquencies up, rate slows

According to credit reporting agency TransUnion, delinquent mortgages were up 58% from 3.96% a year ago, and as of Sept. 30, 6.25% of U.S. mortgage loans were 60 or more days past due. Two months delinquency is considered a first step toward foreclosure because it's hard for homeowners to catch up with payments at that point. The rate of delinquency is slowing, however. The rate was up 7.6% from the second quarter -- a much smaller jump than the 11.3% rise in the second quarter and a 14% rise seen in the quarter before that. F.J. Guarrera, vice president of TransUnion's financial services division, says that while the slower rate is encouraging, the co9ntinual increase shows there are still a lot of problematic mortgages out there.

Mortgage delinquencies remain highest in the four states where the crisis has hit the worst: in Nevada, the rate reached 14.5%, up from 7.7% a year ago; in Florida, the rate was 13.3%, up from 7.8% last year; in Arizona, the rate hit 10.4%, up from 5.5% in 2008; and in California, the rate jumped to 10.2%, from 5.8% last year. Two things have to get better before mortgage delinquency rates start reversing themselves: home values and unemployment. "Until we see improvement in both of those areas, it's possible that it will take longer for delinquency to improve," Guarrera said.

JDS Properties
Building YOUR wealth with real estate.
John D. Skaggs
Owner
(901) 212.7246
FAX 866.900.1827
www.jdspropertiesmemphis.com
www.youtube.com/jdsproperties1
www.myspace.com/jdspropertiesmemphis
www.meetup.com/The-Memphis-Investment-Property-Meetup-Group
www.facebook.com/johndouglasskaggs
http://jdsproperties.blogspot.com/

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BOA loans $184 billion in Q309

2009-11-10T10:45:00.000-08:00

BOA loans $184 billion in Q309

Bank of America (BOA) extended nearly $184bn in new credit
during Q309, bringing the total of new credit issued for the first nine months of the year to $759 billion. During the first nine months of the year, the bank said its originated $292 billion in first mortgages for more than 1.3 million borrowers. During the quarter, BOA originated $96 billion in first mortgages for nearly 450,000 borrowers purchase homes or refinance mortgages. The $759 billion in new credit extended is equal to nearly $17 for every $1 of the $45 billion of Troubled Asset Relief Program (TARP) funds it received from the federal government.

By November 16, Bank of America will pay more than $2.5 billion in dividend payments to the US Treasury Department. “As households and communities across America continue to feel financial strain, we are working hard to revitalize the US economy by making every good loan that we can to individuals, businesses of all sizes, and municipalities and nonprofits across the country,” said Bank of America’s consumer policy executive Andrew Plepler. “We are hopeful that our ongoing efforts will not only improve economies across America, but also provide consumers the relief they need during these difficult times.”

Foreclosures pick up in suburbs

2009-11-03T06:06:00.000-08:00

Foreclosures pick up in suburbs

A report from RealtyTrac says dramatic increases in foreclosures in Q309 came in suburban areas previously believed to be stable, such as Boise, Idaho, up nearly 22% from Q209, and Provo, Utah, which rose nearly 11% in the same period. In several states, foreclosure activities drifted toward smaller towns with previously self-sustaining industries. Chico, California in Sacramento Valley, an agricultural hub, had a 98% increase in foreclosures from Q308, according to the report. “You’re moving from Phoenix to Prescott, you’re moving from Las Vegas to Reno,” said Rick Sharga, the vice president of marketing at RealtyTrac.

Sharga sees the foreclosure crisis coming in three waves, and with this new data, the market is showing signs of the second one. “That first wave of foreclosures cratered the economy, which created job losses, which created the second wave. Now, we’re seeing prime rate loans affected by unemployment. And the third wave will be really a repeat of wave one, except this time we’re going to see a switch of Option ARM and Alt-A loans out for the subprime loans. It will probably be as big but somewhat shorter lived.” Sharga said that he expects a peak in foreclosures in 2010, only a marginal improvement in 2011 and a return to normal monthly foreclosure activity sometime in 2012.

www.youtube.com/jdsproperties1
www.jdspropertiesmemphis.com
now serving memphis and st. louis

Great turnkey investment property in St. louis mo for only .62cents on the dollar. $19,121.64 positive cash flow the 1st year & $66,000.00 in equ

2009-10-27T16:51:00.000-07:00

Great turnkey investment property in St. louis mo for only .62cents on the dollar. $19,121.64 positive cash flow the 1st year & $66,000.00 in equity.

Before rehab video will be up 11/2/09 on www.youtube.com/jdsproperties1

7721 Peachtree St. Louis MO 63130 is a fantastic deal in the beautiful University City area of St. Louis MO. It’s a 3bed 2 bath 1316sqft home with car port. This home will have a retail value of at least $130,000, or more. It comps out at $145,000 and zillow has it at $172,000.

You can pick up this gem for only $80,000.00 totally rehabbed and ready to rent or sell. That is only .62 cents on the dollar. Or you can get it as is, before we start the rehab for only $66k

We plan on having this home rented soon for at least $925/mth and we estimate your monthly payment (PITI+ property management) to be only $668.47/mth which will leave you a very respectable $256.53 positive monthly cash flow and $66,000.00 in equity. This would make a great home to lease purchase also

WE WILL PAY ALL YOUR EXPENSES FOR A YEAR!!! So your 1st year positive cash flow will be:
$925 X 12 = $11,100 (rents)
+ 668.47 X 12 = $8,021.64 (expenses paid)
= $19,121.64 positive cash flow the 1st year.

Call John Skaggs @ (901) 212-7246 to requests info or pics

Call John Skaggs @ (901) 212-7246 to requests info or pics

Request for Permanent Reversal of HVCC

2009-10-27T06:48:00.000-07:00

Request for Permanent Reversal of HVCC

http://www.hvccpetition.com/SignPetition.aspx

Everyone should take a look at this site and sign this petition to stop the HVCC Appraisal Guidline. You should also forward this link to anyone you know involved in real estate.

owner financed occupied memphis investment property

2009-10-22T12:26:00.000-07:00

owner financing with only 10% down, $269/mth cash flow

5024 Shubert Cv, Memphis TN 38109 is a 1000sqft 3 bed 1.5 bath. It is currently rented for $650/mth. Retail value is about $52,000 but can get it owner financed (with 10% down) for only $41,500. Your owner financed note will be about $381/mth leaving you with about $269/mth positive cash flow.

Call John Skaggs @ (901) 212-7246 to requests info or pics

Make an offer!!!!
www.jdspropertiesmemphis.com
www.youtube.com/jdsproperties1

Fannie and Freddie now have 100,000 REOs in portfolio

2009-10-13T19:27:00.000-07:00

GSE REO Portfolio Near 100,000

According to 10-Q filings with the Securities and Exchange Commission (SEC), Freddie Mac’s portfolio is nearly 35,000 properties, while Fannie Mae’s is closing in on double that figure at nearly 64,000. Fannie’s REO portfolio nearly doubled from the first half of 2008 compared to H109. Fannie held 33,729 properties during H108. The number of properties increased in all regions of the US except the Midwest, which experienced a decrease from 15,265 to 14,626 properties, but the rate of growth in the two portfolios has declined. Freddie acknowledges it expects to experience further losses from REO properties: “While temporary suspensions of foreclosure transfers and recent loan modification efforts reduced the rate of growth in our charge-offs and REO acquisitions during the second quarter of 2009, our provision for credit losses includes expected losses on those foreclosures currently suspended,” the Freddie filing said. Freddie said its pool of Alt-A interest-only loans, as well as 2006 and 2007 vintage loans comprise the biggest share of its portfolio and “continue to be larger contributors to our worsening credit statistics than other, more traditional loan groups,” because of factors like declining home prices. Freddie’s REO properties are concentrated in the West region of the country, and homes there comprised 27% of the unpaid principal balances of Freddie’s single-family mortgage portfolio as of June 30, 2009, but accounted for 46% of its REO acquisitions in the first half of 2009.

www.youtube.com/jdsproperties1
www.jdspropertiesmemphis.com

Delinquencies rise

2009-10-09T08:49:00.000-07:00

Delinquencies rise

Fannie Mae says that delinquencies on loans accelerated and its mortgage investment portfolio stayed unchanged in August from the previous month. Delinquency on loans in its single-family guarantee business jumped by 0.23 percentage points to 4.17 percent in July, the most recent data available, and multifamily delinquencies also rose, up 0.05 percentage points to 0.56 percent in July. The mortgage investment portfolio was at $779.4 billion in August, for an annualized 1.5 percent decrease year to date.

JDS Properties
www.jdspropertiesmemphis.com
www.youtube.com/jdsproperties1

Hello from JDS Properties

2009-09-28T18:06:00.000-07:00

This is our 1st blog post, so i'll tell you a little bit about us. We typically offer turn key occupied rental property at wholesale prices...less than .70cents on the dollar. We offer property in Memphis TN and St. Louis MO, and have been in business over 6 years.

you can learn more about us at www.youtube.com/jdsproperties1 or www.jdspropertiesmemphis.com

If you are a seasoned real estate investor or someone wanting to invest in real estate, please consider looking at our list of properties. At JDS Properties, we wholesale investment property to other investors all across the country. All deals have great equity and/or cash flow.Please send us an email to johndskaggs@yahoo.com so we can forward you our list of available properties.