Foreclosures are Way Down – Is Time Running Out for Rental Property Deals?

July 30, 2017

Corelogic’s foreclosure report for December 2016 tells us that completed foreclosures in December fell a whopping 39.6% from
Dean Graziosi

Foreclosures are Way Down – Is Time Running Out for Rental Property Deals?

July 27, 2017

Corelogic’s foreclosure report for December 2016 tells us that completed foreclosures in December fell a whopping 39.6% from
Dean Graziosi

Foreclosures are Way Down – Is Time Running Out for Rental Property Deals?

July 25, 2017

Corelogic’s foreclosure report for December 2016 tells us that completed foreclosures in December fell a whopping 39.6% from
Dean Graziosi

Foreclosures — From a Flood to a Dribble

April 29, 2017

It’s been an exciting seven or eight years for real estate investors. The flood of foreclosures that began in late 2006 raged for a couple to three years, then began to subside.
Dean Graziosi

Foreclosures — From a Flood to a Dribble

March 19, 2015


It’s been an exciting seven or eight years for real estate investors. The flood of foreclosures that began in late 2006 raged for a couple to three years, then began to subside. All through this time, investors were snapping up properties, doing fix & flip, and turning homes into rentals for long term investment.

In the most recent three years or so, it’s been slimmer pickings. Investors have had to be more selective, market harder, and crunch the numbers more carefully. It has been working, as real estate investment is still making money. Large institutional investors jumped into the fray and converted tens of thousands of homes to rentals. This tightened supply and prices have risen, but we’re still out there doing profitable deals.

Underwater Homes Report & Outlook

CoreLogic recently released a report dealing with home equity, underwater properties, equity increases and more. Here are some highlights:

1. 10.8% of mortgaged homes have negative equity.
2. That’s roughly 5.4 million homes.
3. The aggregate value of negative equity increased by $ 7 billion from the third to the fourth quarter of 2014.
4. 20.0% of residential properties are under-equitied – meaning they have less than 20% equity.
5. 2.8% of homes, 1.4 million, have less than 5% equity.
6. Of residential properties with a mortgage, 1.0 million or 2.1% have a loan-to-value ratio of 100% to 105%.
7. Another 2 million, or 4% of homes, have a loan-to-equity ratio greater than 125%.
8. 3.2 million upside-down borrowers hold a first mortgage without a home equity loan.

Despite a lot of good news about home prices and buyers returning to the market, this data tells us that there are still a lot of homeowners out there in pain. While many under-water owners can remain in their homes and wait the market out, many will need to move for employment or other reasons.

With more than 5 million homes still in negative equity territory, there will be more foreclosures coming, just more a trickle than a flood. Those in positive territory but with less than 5% equity are also at risk, as they may not be sellable to cover costs. If the owners can’t bring cash to the table to close, they may just let the home go.

With 2 million homes with a mortgage 25% higher than value, it could be a very long time before prices correct enough to float those owners. The 3.2 million upside-down borrowers who only have a first mortgage will be candidates for investor marketing, short sales, or foreclosures at some point.

Though many economists place housing as the top factor in economic health in the U.S., it’s going to take more than rising prices to float the market. The economy is still in a funk, and employment opportunities are not healthy from a historical perspective. College graduates in particular are moving back in with parents or renting because they don’t have a down payment or enough faith in the housing market to commit to buying a home.

Real estate investment will remain healthy, but investors will need to sharpen their pencils and adjust their marketing to profit from this trickle of bargains to come. Real estate is local, and some markets will be better than others, but on average there will be bargains trickling down in the near to mid-term future. Investors holding rental properties may be able to profit by selling them at higher prices and buying replacement properties using a 1031 Exchange to defer capital gains. Profiting from both the improving price market and grabbing bargains as well should make for interesting investment activity in the next few years.

Make sure to check out Dean’s other Huffington Post articles:

2/24/15 Self-directed Retirement Accounts and Turnkey Rental Investing

2/17/15 Enthusiasm for 2015 Housing Markets

2/13/15 Trulia Asks: ‘Are We Past the Flipping Point?’

2/5/15 Is Multi-Family Worth a Look for Your Portfolio?
Dean Graziosi

What to Do If You Are Faced With The Prospect of Foreclosure

November 13, 2013

120749510Foreclosure isn’t easy. It means you are unable to continue making payments on your home and are forced to choose another option. Once out of your home, what happens then? As Dean Graziosi noted, the past and current states of the economy have meant foreclosure for many homeowners. This means you are definitely not alone. The good news is there may be some alternatives that will help you avoid foreclosure, or get back on your feet if you find yourself faced with it. An article on MSN discusses how foreclosures are working these days and what it all means for homeowners.


Some solutions to foreclosure are temporary while others are more permanent. Just because you may be forced to foreclose on your home, that doesn’t mean you won’t be a homeowner again. In fact, for some, it is happening more quickly than they may have thought it would in the beginning.


One temporary solution to foreclosure is the advanced claim. This is for homeowners who are presently having difficulties  that are expected to pass in the near future. Here, the insurer pays the delinquent amount to the servicer. In return, a promissory from the borrower will be received. The mortgage loan is then whole. Then, part or all of the borrower’s advance will be collected over a period of time.


A forbearance plan is another temporary solution. This is typically for keeping owners in their homes during short-term times of financial crisis such as temporary loss of or decrease in salary. Here, there are usually long-term prospects for income increases expected. These increases will need to cover mortgage obligations. In a case such as this, the specific circumstances of the borrower are taken into consideration. The borrower may then be permitted to make reduced monthly payments. Over time, the payments will increase in amount. This may be stipulated for a period of time ranging from six to 18 months or longer, depending on the specific circumstances involved.


A permanent alternative may be a loan modification. A homeowner who has experienced what is expected to be a permanent reduction in income may be able to take advantage of this solution. Here, the interest rate may be reduced, thus making the monthly payments easier to meet.


A deed in-lieu of foreclosure is another permanent alternative, but it is often a last resort. When this occurs, the borrower voluntarily gives up the property rights to the lending bank or “servicer.” While this may appear to be better than a foreclosure in terms of credit for the borrower, it may not be a good option. In a case such as this, it is best to seek professional advice and assistance to determine whether or not it should even be considered.


The thought of foreclosure is a daunting one. While there are options, sometimes it is inevitable. It is important to remember, however, that foreclosure doesn’t mean a homeowner can never own a property again. You can read more about the various options available by visiting Dean Graziosi’s website.

Avoiding Foreclosure Scams

September 6, 2013

Missing mortgage payments means you could lose your home and it will have a negative impact on your credit history. Dean Graziosi wants to give you the information on spotting and avoiding foreclosure scams. When faced with the possibility of losing your home you need to take the necessary steps in avoiding the foreclosure process if it is possible. Unfortunately there are many that will try to scam people that are going through the foreclosure process. Dean Graziosi will give you the strategies that you will need to avoid the scams.

To avoid the possibility of foreclosure by your lender, it is important to never ignore any letter you may receive from them. If you are going to miss a mortgage payment contact your lenders mitigation department. By explaining your situation and also providing them with your current financial information they can then assist you.

Various agencies have been formed to assist homeowners, so never abandon your property. These agencies can be a valuable resource to you and can assist with either short or long term solutions to avoid foreclosure.  There is no cost to a homeowner for these agencies, so beware of any agency that requires a fee to assisting you with financial counseling.

When trying to avoid a foreclosure it is also important to realize that although most of the agencies and lending institutions are trustworthy, there are those out there that will try to take advantage of your situation. Mr. Graziosi helps you avoid foreclosure scams which will be easy to spot once you know what to look for.

Be careful about those agencies that offer federal or government approved modification programs. This type of scam will claim to be affiliated with a government program or they will require you to pay high fees in order to receive benefits from the current government modification programs. Government or federally approved programs are free and there is no fee to participate in them.

Some of the companies out there will claim to eliminate your debt and tell you that you are not required to repay your mortgage. This is a false claim and it is wise to stay away from those companies that lead you to believe that know something that you don’t. This type of foreclosure scams you by taking a fee from you and in the end you will still end up having to repay your mortgage.

With help from Dean Graziosi through and his educating technique, you will then be able to recognize and avoid the many false claims and abusive tactics that are used by those companies. As the saying goes, if it looks too good to be true, then it probably is!

Making a Choice – This House or The Other

May 7, 2013

So you’ve narrowed it down to two houses, but aren’t sure which one you want to buy? Making a final decision can be difficult, after all you are investing in a place to live for at least five or so years. When you are faced with a choice like this, there is only one thing to do. Compare them.


Comparing the features of each house will be hard if they are very similar. Then there is a problem of one house having some of the features you want and the other house possessing a certain characteristic or quality you just can’t refuse. Since you can’t merge the two properties into one, or at least not easily anyway, you will have to actually decide between them.


So, how to go about choosing which house to call your home without sustaining any regrets? Begin by allowing the rational part of your brain to make the decision. While you’ll likely have a lot of emotion tied up in the house buying process, a decision based on it will probably be more impulsive than well-thought out. A home is an important investment, and deciding too quickly can lead to a lot of dissatisfaction if you aren’t careful.


Look at the circumstances particular to your decision. You may not be able to take a lot of time, or in some cases even a little, to make your decision. This means comparing the features of each home very quickly.


Consider outside factors when making a choice between two different houses. For example, perhaps you need to be on a bus line. One property is actually on a public transit line while the other is close enough for you to walk to the bus. Here you will need to consider factors such as possibly harsh winters, rainy days, and the amount of time it will take for you to walk to and from the bus each day. Buying the property that is on the transit line will require less walking while the other will mean leaving earlier in the morning and getting home later in the afternoon. What it all comes down to is what you are willing to do or what is most convenient for your specific set of circumstances.


Make a list of your needs and those of everyone else in the household. Then figure out if you have the budget to cover them. The house you choose may depend on these, especially if one property will be  significantly more costly to buy and maintain than the other. Though you may want the higher priced home, you may be better served to go with the less expensive option and save money over time.


Feel good about your decision. This is absolutely a must. Decisions that are made too quickly or on impulse often don’t net positive results in the end. Remember you will be living in your new home for quite some time, so carefully consider all options before signing on the dotted line.

Should I Buy a Home or a Condo?

February 4, 2013

Things to consider if you are thinking of buying a home or a condominium:


Will you have the time and are you in good health to mow a yard? If you live in an area where it snows will you be able to shovel your sidewalk and driveway? If you want a home on a few acres make sure you can take care of the yard work. Or you could hire the work out if you can afford it in your budget. If you do not have time to take care of a yard or the health to take care of a yard and you cannot afford to hire someone to help, choose a home with a small yard and short driveway or go with the option of purchasing a condo. Let someone else take care of the yard work for you. Of course, this expense will be included in your condo fees.


How much space do you need? Of course you can find large homes but you can also find large condos for sale. If you desire to have six bedrooms then the home option is best for you.


You may want more than two or three bathrooms in your next living space. You will probably have more choices in the home selection especially if you want more then two bathrooms.


Would you enjoy a swimming pool, tennis court and club house? If so, some home villages offer these amenities although it would be easier to find a condo that offers these superb amenities. Think of how nice and relaxing it would be to come home after a hard day at work and relax by the swimming pool. Get in a game of tennis with your significant other on the weekend without having to travel far. You can reserve and throw parties in the club house. Keep people out of your home and keep the mess in the club house. Of course you will have to clean up the mess in the club house but it would be nice to know that this option is available as you will not have to worry about immaculately cleaning your home before your guests arrive. Plus, the club house is made for large groups so you should comfortable fit your friends and family members in it.


Do you have a dog, cat or other type of pet? If so, make sure the condo you want to purchase allows pets. You do not want to have to give up your beloved fur companion due to a change in where you live.


By asking yourself the above questions you may be able to easily make a choice on buying a house or a condo. 

Winterizing Your Home on a Budget

January 9, 2013

You may think that since we are in the middle of winter it may be too late to winterize your home; there is still time.  With temperatures continuing to fall and many areas experiencing storms that have been severe, there are still some winterizing steps you can do while staying within your budget.

If your winterizing budget is $100 or less, you may think that what little you can afford to do will not make a difference.  You couldn’t be more mistake, there are plenty of steps you can take without spending a lot that will help improve the energy efficiency of your home.

If you can afford to spend more on winterizing, say $250 and less there are some additional steps you can take to winterize your home. 

There are some additional steps you can take to winterize your home without spending a lot of money. 

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