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Despite the high number of foreclosed properties flooding the housing market right now, both banks and builders in some cases are finding it impossible to sell houses. Reuters reports: “U.S. lenders and builders are turning to professional auctioneers to help them unload the unwanted real estate in a hurry.”

Hiring a professional auctioneer to unload a property is a last resort for companies looking to unload homes, and usually it means the seller will lose money on the property.

Winners and losers

The foreclosure auctions are great news for people looking for a bargain on a home, but they are bad news for banks and builders. And a home on the auction block means someone out there has already received bad news: Your home is foreclosed. Move out.

A silver lining is that lenders have started recognizing that they could stand to lose more on the home if they foreclose than if they work things out with the current homebuyers. Many banks now are waiting for owners to go through debt consolidation or debt management instead of foreclosing homes. The Mercury News explains why:

More than 2,000 Santa Clara County homeowners received foreclosure notices from their lenders in September, but a relative few actually had their homes sold at auction.

Foreclosed homes going once, going twice…

The situation in Santa Clara is present all over the country. Reuters reports that at a recent auction in Chicago, a seven-bedroom home was put up for auction.

“Any interest in this home at $7,000?” fast-talking auctioneer Renee Jones asked the crowd. “If not, we’ll move on.”

I find it tough to believe that no one wanted to buy a seven-bedroom home in Chicago for $7,000 (could it be a typeo?) but nevertheless, foreclosed homes for sale at auctions and online are at the highest numbers in recent history.

It ain’t over till the auctioneer sings

The number of foreclosed homes for sale hasn’t topped out yet. Auctioneers are gearing up for more business, according to Reuters:

Hudson & Marshall, one of the biggest auctioneers in the market … and its rivals say they are gearing up for more in the coming months, convinced that a moratorium on foreclosures earlier this year only postponed what they believe is an inevitable avalanche of new repossessions.

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These are tempting times for real estate bargain hunters. Unfortunately, many investors have money tied up in dwindling stock portfolios, and the best way to recover those losses may be to leave the money right where it is. On the other hand, whether it’s the tony house down the street with a falling price, a rock-bottom rental, or office space listed at a deep discount, there are real estate deals to be had.

Investors with stock portfolios are getting the best of both markets. Instead of selling outright, they are retaining their stocks and getting secured stock loans to snap up irresistible real estate bargains.

No shortage of distressed and foreclosure properties

Investor purchases of foreclosed houses have helped boost home-sale figures sharply in recent months, although prices remain depressed. There seems to be no shortage of foreclosed and distressed properties. In May, Mortgage Bankers Association reported that 12 percent of home-loan borrowers are behind on their payments or in foreclosure, a record 36-basis-point increase in one year. New York-based real estate research firm Real Capital Analytics estimates that there is presently $90 billion in commercial distressed real estate in the United States.

Generational demographics drive market recovery

The State of the Nation’s Housing 2009 report prepared by the Joint Center for Housing Studies of Harvard University, predicts that once the U.S. emerges from the current recession, strong demographic trends will restore health to the housing market. Echo boomers — the 75 million Americans born between 1979 and 1995 – are the key to recovery.

“There will be 5 million more echo boomers than there were boomers when they first started swelling housing markets,” said Eric Belsky, executive director of the Joint Center. Household growth during the next 10 years should range between 12.5 million and 14.8 million. “This is a powerful, powerful underpinning of future demand,” said Belsky.

According to the report:

The longer-term outlook is also promising. The record size of the echo-boom generation now reaching young adulthood should help keep household growth at least on par with 1995–2005 levels even if immigration slows dramatically from its peak pace in the first half of this decade. Over time, the combination of pentup [sic] demand from deferred household formation and low levels of home building will reduce the excess vacant inventory, bring markets back into balance, and send housing starts up sharply from early 2009 levels. If history is any guide, housing markets will rebound in advance of labor markets and help to spark the economic recovery.

Price corrections and production cuts point to eventual recovery

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There are strong factors working against a quick recovery, however, and it’s not clear whether recent increases in housing starts and existing home sales imply a rebound. “The best that can be said of the market is that house price corrections and steep cuts in housing production are creating the conditions that will lead to an eventual recovery,” he said. “For now, markets remain under considerable stress.”

That stress, combined with a confidence that the stock market will also rebound, is motivating investors to hang onto their portfolios and employ stock loans to take advantage of bargain-priced real estate investments.

To find out if you qualify for a stock loan or a securities-backed loan Click Here.

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If you are moving but have not yet sold your house, Designer Home Tending could help you sell your home more quickly and for a higher price.

Designer Home Tending provides a home tender who will provide several services, including home improvement and interior design work. You won’t need to get payday advances to use this service. It is free!

Why use designer home tending?

Designer Home Tending started its service based on this statistic:

Professionals, dealing with real estate, agree that a well furnished and decorated home sells faster and at a better price than a vacant home. Designer Home Tending says it has statistics that support this notion across the country consistently selling 20-40 percent faster than area “norms” are.

The web site for Designer Home Tending says:

“We provide a qualified and responsible occupant to care for a home while it is on the market. The home tender pays a modest fee to our service and is contractually obligated to furnish and keep the home attractive to foster a quicker sale.”

Nothing to lose

Designer Home Tending makes its money by charging the home tender, who gets the benefit of housing out of the deal. I find it hard to believe that homeowners don’t have to pay anything for this service, but here is quoted text directly from the Designer Home Tending web site:

The home tender pays a modest fee to our service and is contractually obligated to furnish and keep the home attractive to foster a quicker sale. During their stay the DHT will pay all utilities and maintain the property inside and out. … All home furnishings and décor will be overseen by Designer Home Tending, so we can specifically maintain the integrity and beauty of your home. All expenses are absorbed by our service ~ there is NO COST to a homeowner for this service.

Here’s a list of services Designer Home Tending provides, straight off the company’s web site:

• Your home is furnished and decorated, AT NO COST
• All utilities paid
• Yard mowed and maintained
• Snow removal
• Keeps systems working throughout the home
• Lowers homeowner’s insurance

Fancy and free

Consider that this service is free, I can’t think of any reason why a homeowner who is trying to sell a house would not use this service.

Imagine being a prospective home buyer. If it were me, I’d rather look at homes that were warm and pleasant-smelling. Vacant homes with no utilities will end up  cold or scorching hot, depending on the area.

Also, keeping the utilities on will give home buyers the opportunity to make sure that everything works correctly.

Test in the West

Designer Home Tending serves the western United States.  Designer Home Tending has offices in the following cities:

• Boise
• Denver
• Las Vegas
• Long Beach
• Los Angeles
• Salt Lake City

Designer Home Tending is a relatively new business, so if you live in the East keep a lookout for a Designer Home Tending office in  your area in the future.

You can sign up on the Designer Home Tending web site to either be a home tender or to use the service to help you sell your home.

Housing markets are tough for sellers right now. One of the best things you can do to attract a buyer is make sure your bathrooms are clean, bright, and modern. Start by cleaning, but remember that cleaning to attract a buyer may not be as obvious as it sounds.  Read House Fluffing on a Budget | Making the Bathroom Shine.

Once you’ve cleared the cleaning hurdle, take a critical look at your bathrooms and think about what you should do to update the bathrooms. Get ideas from home staging, interior design, and bathroom remodeling websites. Then ask yourself whether a quick online cash advance or installment loan would help you whip your own bathrooms into shape.

Buyers love updated bathrooms

The last thing potential buyers want to see when viewing a house is bathrooms that need updating. Here are a few of the many things you can do to update yours without breaking the bank. If you have a bathroom that really needs work and you can’t afford to do it, don’t give up. Take a little time to figure out which things would make the biggest difference, and limit your undertaking to those. Many times any improvement is a big improvement.

• If the caulk lines along your bathtub or sink are not spotlessly clean, remove and replace the caulk. Replacing caulk is one of the simplest, least expensive, and most effective things you can do to improve the appearance of a bathroom.
• If the grout between tiles has cracked and fallen out, hire a tiler to replace it. New grout can make old tiles look new.
• If you have an older tub that doesn’t shine anymore or that has a damaged finish, consider hiring a professional to reglaze it. It may not be as expensive as you think, and a clean, shiny tub can make all the difference.
• If the toilet seat is less than perfect, replace it.
• If the fixtures in your bathroom are damaged or outdated (spigots, handles, mirrors, etc.), replace them with sleek and modern fixtures. Stay away from brass fixtures. Most people don’t like them. To see what the styles popular, tour a model home or flip through an interior design magazine or website.
• If the lights are outdated or if they cast a less-than-flattering light, replace them. Light fixtures should be simple and attractive.
• Carpets hold moisture and odors. Remove them and replace with tiles, bathroom-grade wood laminate or a good quality linoleum. Contoured mats that fit around the pedestal of toilets and sinks as well as those plush toilet tank and lid covers feel unclean and look old fashioned. Get rid of them.
• If you have windows in your bathrooms, raise the blindsor pull back the curtains to let as much natural daylight in as possible. If privacy is a concern and your budget permits, consider installing textured modesty glass or applying an inexpensive window film to obscure the glass while allowing light to come in.
• If you can spend a little more and you really want to increase the appeal of your home, consider installing a pedestal sink. They are very popular right now, and they make the bathroom seem larger by freeing up space.

The market is a tough place for any house today.  Professional staging can give a house big advantages when it comes to attracting buyers.  But unfortunately, many homeowners can’t afford the services of a professional real estate staging artist, especially right now.

The kitchen is often said to be the heart of a home, and I think it’s true. If you’re getting ready to sell your house, there’s plenty you can do to fluff up the kitchen without spending an arm and a leg. In fact, there’s plenty you can do without spending any money at all – but you’re going to need plenty of elbow grease! If you’re strapped for cash and need to spend a little money on kitchen improvements before putting your house on the market, think about getting a quick cash advance with an online payday loan.

. . . someone’s in the kitchen

assessing

Take a close and discerning look, and try to be objective. Remember, starting now you’re not trying to live in this house, you’re trying to sell it. The best thing you can do for the kitchen is get it spotlessly clean – and then keep it that way until your house sells. This can be a tall order if you’ll be living in the house while it’s on the market – even taller if you’ll be living in it with children – and taller yet when you consider that prospective buyers generally do not appreciate food or cooking odors. But spotless and odorless are the standards that will help your house sell.

scrubbing

Clean the appliances, inside and out. Clean the cupboards and refrigerator. Prospective buyers will touch these surfaces; make sure they won’t stick to them when they do! Get the sinks, countertops, windows, and floors squeaky clean.

decluttering

Once you’ve achieved or at least paid real respect to the spotless and odorless standards, the next hurdle is decluttering. Get everything off the countertops and other surfaces (including the top of the refrigerator) except a very few attractive and well placed canisters, pottery bowls, or cookbooks. Dishtowels add a welcoming touch, so you might want to include a nice, fluffy set.

decluttering some more

I can’t over-emphasize this: get rid of the clutter. Clutter includes the stuff inside your cupboards, drawers, pantry, and refrigerator. Prospective buyers will open these things, especially if they’re genuinely interested in the house. If they like the look of the kitchen, prospective buyers will be inclined to open a cupboard or the refrigerator to see if it’s as good on the inside as it is on the outside. Make sure nothing falls out when they do, and make sure the insides are (here we go again) spotless and odorless.

scrapbooking

If you’re fond of what I like to call refrigerator scrapbooking, take it all down – the magnets, the newspaper chippings, the kid art, and even the family photos – and put it away out of sight. Or maybe you should break the refrigerator scrapbooking habit now and put your materials in a real scrapbook. Remember, you want potential buyers to focus on the house, not the people who used to live there or who live there now.

. . . and someone’s online

When money is tight, there’s no point in purchasing over-the-top staging props for your kitchen. But if you have a real sore spot– such as an oven or range that is so well used it cannot be gotten clean — you should consider replacing it. Plenty of people will buy a house knowing it needs work, but they also like knowing they’ll be able to cook in their new home as soon as they move in.

If the walls are a little dingy and money permits, you might also consider repainting the kitchen. But don’t take shortcuts. If you have old, painted wood cabinets, sand and prime them before you paint. If you have dingy old wallpaper, take it down and prep the surface before you paint, but never paint over it. And remember, elbow grease is free and necessary expenditures are just a quick online installment loan away.

Another giant has fallen in the recession forest. All the king’s cash advance and all the king’s quick payday loans couldn’t put them back together again. Stick in your thumb and pull out some debt relief.

Daniel Taub and Brian Louis report for Bloomberg that Real Estate investment trust General Growth Properties Inc. has filed the largest Real Estate bankruptcy in U.S. history. The second largest shopping mall owner in the country, they had accrued $27 billion in debt.

“Our business model remains strong”

“We intend to emerge as a leaner company,” General Growth President Thomas Nolan said in an interview. “We want to come out as a less leveraged company. Our business model remains strong.”

General Growth stepped onto the big boy slide when it dropped $11.3 billion to buy commercial-property developer Rouse Co. in 2004. As we’ve seen, the credit crunch and recession have severely decreased spending and property values. It isn’t surprising then that banks have reduced lending as mortgages writedowns have littered the financial landscape. None of this helped General Growth shoulder their titanic new investment.

According to Bloomberg, Rouse and 165 units are part of the bankruptcy filing. Joint ventures General Growth had a hand in are not included.

The end?

Dan Fasulo of Real Estate research firm Real Capital Analytics tells it like it is when it comes to the shockwaves this will send through the industry:

This is kind of the beginning of the end. This bankruptcy will drive down the values of mall assets in the United States. It’s going to put, I believe, more supply on the market than can be absorbed by investors.

The stock drop has been tremendous. General Growth closed at $1.05 on the New York Stock Exchange in composite trading recently, leaving the company’s value at $329 million. To put that into perspective, their shares once  traded at as high a level as $67 in March 2007. Things will not improve significantly for those who own shopping malls until consumers have the capital and confidence to come out strong once more.

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One of Philadelphia’s premier law firms, 106-year-old Wolf Block, has decided to call it quits.

Real estate makes up  the firm’s core practice, and the effects of the housing crisis on the firm convinced them to let the firm dissolve.

More financial trouble

Wolf Block also says its decision was due to credit constriction. Furthermore,  significant partners are planning to leave the firm, which also led to today’s decision.

Wolf Block Chairman Mark L. Alderman said the firm was “deeply saddened by the decision to unwind, but we intend to conduct ourselves during this difficult time with the pride, focus, humility and determination that have characterized Wolf Block lawyers for more than a century.”

Where will all the lawyers go?

Wolf Block says it will continue to operate for a few months while it attempts to relocate its lawyers and clients. Several Wolf Block lawyers have already started talks with Cozen O’Connor, another large firm in Philadelphia.

However, some of the firm’s other lawyers might be hurting for payday loans. Philadelphia Business Journal says it will be tough for lawyers to find jobs in the current market. Wolf Block currently has 287 lawyers and employs 400 support staff.

The beginning of the end

Though the current recession has pushed Wolf Block to the decision to dissolve, many of the people involved say the firms troubles began several years ago.

Wolf Block was still among the region’s elite firms until the recession of the early 1990s, when some of its top lawyers such as Alan Davis, Steve Goodman and Sy Kurland left for rival firms. A group of 13 partners left for Cozen O’Connor in 1995. Those familiar with the firm have said it never fully recovered from that series of defections, according to Philadelphia Business Journal.

More on Wolf Block

For more information about Wolf Block law firm, its previous merger attempts and its history, check out this article.

The way your home looks from the outside can greatly add to its selling price.

One of the tests for when it’s OK to get short-term loans is whether they can actually help you  make money.

Now is a terrible time to have to sell your home, as values for housing have sunk so low. But life happens, and if getting short-term loans to fix up your house could push up your home’s selling price, it could be a good investment.

Almighty curb appeal

The best way to increase the amount you can get for your home is to start on the outside, according to CNNMoney.com.

If the siding on your home is worn or damaged, replacing it is a good first step. If taking out short-term loans to get your siding repaired quickly will get more buyers looking at your home sooner, it might be worth it.

Siding tips

According to a remodeling survey, fiber-cement siding is the best way to get your money’s worth and add value to your home. Also, if only a portion of your siding is in really bad shape, consider replacing just that part. If you can get away with patching and painting the rest, go for it.

Stack your deck

If  you live in a warm climate, adding a deck to your home will greatly increase its value. Eric Stalemark, a contractor and founder of Decks.com, says that cedar is the best wood to use for a deck based on durability and appearance.

Get rid of window pain

Sprucing up your yard is another way to add value to your home.

If your windows are rotting or not properly sealed, replacing them can start saving you money immediately and increase the value of your home at the same time.

Windows certified by the American Architectural Manufacturers Association and the National Fenestration Rating Council can cut heating and cooling costs up to 30 percent. Whatever you do, make sure your new windows match the rest of the house to ensure they will drive the price of your home up, not down.

If short-term loans can help you start saving on heating immediately, it might be worth it to start your project today.

Existing-home sales have increased nearly 18 percent over November 2007 in the western U.S., a region that includes Colorado. This statistic and the ones that follow include single-family homes, condominiums, townhouses and co-ops.

Counter intuitive?

It may be surprising that home sales are rising during an  economic crisis, when payday loans are more popular than ever. Furthermore, home sales usually drop in the fall and winter and pick back up in the spring and summer.

However, home prices in the West have dropped nearly 26 percent. It’s a simple matter of supply and demand. No one was buying, and prices dropped to a level where houses are selling again.

How big is this trend?

Nationally, home sales are still down. Compared to November 2007, home sales are down 10.6 percent nationally. Prices decreased more than 13 percent nationwide, but so far that’s not enough to make homes an affordable commodity.

Sales were down 8.6 percent in October. So nationally, home sales are still in decline.

Sitting pretty in the West

Even in the West, home sales for October decreased, year-after-year. They were down 4.3 percent that month, making the jump in November even more significant.

Another surprise is that the median price for a home in the West is actually higher than the national average. Nationally the average price of a home is $181,300. In the West, it’s $242,500.

What about December?

While it’s unlikely that national home sales will increase in December, one statistic provides a glimmer of hope for the housing market. During the week that ended Dec. 12, the number of mortgage applications rose 2.9 percent. This figure is a bit tricky because it includes applications to refinance, which are climbing as interest rates drop.

Should I buy a home?

Just remember if you’re applying for payday loans or looking to repair credit, make sure you don’t sign up for something you can’t easily afford.

California Hit Hard By Recession

California’s budget shortfalls are due to the current recession.  In the wake of the downturn of the American economy that began in December 2007, the state began to bleed funds.  It certainly didn’t help that during this summer, Southern California was home to a series of natural disasters in the guise of one the largest wildfires in the Western United States.  Thousands of homes went up in flames, and many families were displaced or turned out with few options.  The state of California having to rebuild in the wake of disaster combined with recession is not a good mix for a balanced budget, and the state’s budget is in need of quick payday loans.  The Golden State’s economic woes are certainly not helped by the current climate.  Jobs are being lost at a rate not seen for over 20 years.  The housing market, long one of the most lucrative industries in the state due to California’s outrageously high priced housing market, has begun to topple over in the wake of the foreclosure epidemic and the freezing of the consumer credit markets.  Since property taxes and real estate sales taxes are some of the biggest sources of income for most of the state governments in the U.S., many states besides California have also begun to suffer the loss of state income due to the housing bubble being burst.
But the most populous state in the union can ill afford it when one of the largest sources of its income is no longer generating the same income, and they have an infrastructure to maintain.  Schwarzenegger is already asking President Elect Barack Obama for aid in the form of an infrastructure investment to boost job creation.  He is also contemplating laying off public employees, and he’s trying to figure out a way to trim the budget egregiously, without doing irreparable harm to the educational system as well as other state programs.

Governor Asks for Legislature to act Fast

The governor has asked legislators into session to deal with this problem now, after admonishing them for stalling in dealing with the problem, and rightly so.  Finances, especially running a budget, are vital, and if you are running into problems you can’t afford to stall.  The faster you act the better off you will be.  Those in need of emergency cash can turn to quick payday loans to tide them over during an emergency.