Archive for the ‘Mortgage Relief’ Category

$4.5 Billion in Nonperforming Loans, Delinquent Debt to Hit the Market

Nonperforming mortgage loans delinquent debt

 

 

 

 

Kennesaw’s Ashford Capital Partners’ Managing Partners Matt Riedemann brings you news you can use.

Three of the nation’s largest mortgage lenders have put sizable packages of nonperforming and reperforming mortgage loans on the market for investors to buy,according to New York-based loan broker Mission Capital Advisors.

First reported by Bloomberg, The loans are worth a combined $4.5 billion, Mission Capital said. Bank of America has put up approximately $2.56 billion worth of delinquent debt for sale, including nonperforming loans, reperforming mortgages (those in which the borrower was 90 days or more behind but has resumed making payments), and home equity lines of credit (HELOCs), according to Mission Capital. Citigroup has put up $1.8 billion worth of reperforming mortgages for sale, and JPMorgan Chase is looking for a buyer for $143 million worth of nonperforming mortgage loans, Mission Capital said. The sale was first reported by Bloomberg News.

According to Mission Capital, there has been an increased demand for delinquent mortgage loans, troubled debt, and nonperforming mortgages among hedge fund investors and private equity firms. Last month, Freddie Mac announced that it intended to sell $410 million worth of delinquent mortgage loans. But there has been so much of a demand that the suppliers cannot keep up, Mission Capital said.

“The supply has yet to meet the demand that’s out there,” Mission Capital managing director Luis Vergara said. “A lot of capital has been set aside to invest in residential product.”

Spokespeople from Citi and JPMorgan Chase declined to comment on the sale of the delinquent or nonperforming loans. A spokesperson from Bank of America said the bank did not comment on “market rumors.”

Data compiled by Mission Capital shows that about $4.2 billion worth of nonperforming loans and $3.2 billion worth of modified or reperforming loans have traded or been put up for sale so far this year.

Author: Brian Honea February 13, 2015 http://dsnews.com/news/02-13-2015/4-5-billion-in-nonperforming-loans-delinquent-debt-to-hit-the-market?utm_source=DSNews.com&utm_campaign=6128f3d2ec-Your_Daily_Dose1_28_2015&utm_medium=email&utm_term=0_1924082bfe-6128f3d2ec-175200045

Come back tomorrow to http://www.AshfordCP.com/blog  where Kennesaw’s Ashford Capital Partners’ Managing Partners Matt Riedemann brings you news you can use.

Twice as Many Consumers Prefer New Homes to Existing

Larger closets, open floor plans, and roomy kitchen islands seen as big draws of new homes.

 

While twice as many American consumers prefer a newly built home compared to an existing dwelling, many are reluctant to pay extra for new, according to the results of a new survey from Trulia.

Forty-one percent of respondents said they prefer to buy a new home over a previously lived in one, compared to 21 percent who said they would prefer an existing home at the same price. But of those buyers interested in new homes, only 46% were willing to pay the 20% premium that new homes typically require. In fact, only 17% of respondents said they would pay at least 20% more for a new home.

Trulia compared median prices for a new home adjusted for property features and location and found that new homes are typically priced 20% higher than older homes with similar attributes such as square footage and number of bedrooms in the same zip code.

The survey explored consumer preferences for each type of home. The top reasons respondents prefer a new home are for modern features such as bigger closets, a kitchen island, open floor plan, walls pre-wired for flat screen TVs, radiant floor heating, to be able to customize the home before construction is completed, and to spend less on maintenance and repairs.

Fans of existing homes have their reasons, too. The most compelling reason to buy an existing home is to pay less. However, among respondents who strongly prefer an existing home, the top reasons to buy an existing home are for one-of-a-kind finishes such as original wood floors, woodwork, ornate details, or stained/leaded glass windows, and to live in a more established neighborhood.

Interestingly, respondents are much more likely to mention the neighborhood as a reason to prefer an existing home than as a reason to prefer a new home. This suggests that for many Americans, the ideal home might be a new home in an established neighborhood, the survey concludes.

By  – Builder Online – May 5, 2014

Selling in May…

You’ve probably heard the old Wall Street axiom: “Sell in May and go away.”

 

From an investment perspective, this is a warning of difficult times ahead. Summer can be a challenging period in the stock market because so many managers are off the desks, vacationing at the beach, or on the golf course. Statistically, individual investors are better off cashing out of their positions and coming back to the market once the summer is over

 

For the real estate market, the saying “Sell in May…” has an entirely different meaning. This is because the summer months are actually the most profitable months for real estate transactions!

 

A Window of Opportunity

 

From a logistical perspective, summer is the absolute best time to consider a move.

 

For families with children in school, the summer makes for a perfect time to relocate to a new district, and give the kids time to make new friends before the next school year.

 

Employees and small business owners typically have much more freedom to take a week off for a move during the summer – making it much easier to consider purchasing a house and moving across town (or across the country) before the workload picks back up again in the fall.

 

So for homeowners who have been considering putting their house on the market, the term “Sell in May…” is one of opportunity as real estate activity picks up.

 

This Year Is Different…

 

Over the past few months, I’ve spoken with a number of homeowners who feel “trapped” in a home because of lower prices, mortgage issues, or the lack of real-estate activity. Last summer, these challenges weighed on the market, keeping would-be home sellers from being able to sell attractive houses.

 

But this year, the environment is completely different! Real estate transactions have been picking up significantly, due in part to the fact that private equity companies have been buying up millions of dollars of properties in the Atlanta area.

 

If you missed the headlines, let me fill you in…

 

Companies like Blackstone Group have been investing in a few key cities like Atlanta, purchasing thousands of properties and putting the homes up for rent. There are two key consequences from this activity:

 

1) Home prices have been increasing dramatically. 

 

2) The number of available homes for sale has decreased.

 

It’s a natural result of the supply and demand curve. If there is significant demand (for example, the Blackstone purchases), prices will naturally rise. And of course as Blackstone takes houses off the market, a natural shortage of supply results.

 

This puts you as a seller in the driver’s seat – with much more control and negotiating power than you might have had last year.

 

Let Me Help You Get Top Dollar For Your Home

 

If you’re in the market to sell a home (your primary residence, or even an investment property), let me help you get the maximum value for your property.

 

This year, the “Sell in May” mantra could net you thousands of dollars more than you could have made during the winter months. And it’s my job to help you list and negotiate your sale so that you’re able to capture the largest profit possible for this transaction.

 

As you can tell, I’m excited about the opportunity in today’s market. We’ve got a defined window of time, and you owe it to yourself to make money in this healthy environment.

 

Please give my office a call this week. We’ll set up an appointment to chat, and figure out the best plan of attack for your real estate transaction.

 

Don’t let this summer go by without exploring the opportunity to lock in an attractive price on your home or investment property.

 

Wishing you every success,
Matt

Matthew J. Riedemann
Founder, President, & Managing Director
Ashford Capital Partners, Ashford Advisors

678-231-4579
Matt@AshfordCP.com

Mortgage Relief May Be Easier Than You Realize

Today, I want to have a conversation about mortgages… Specifically, I want to talk about the options that are currently available to homeowners who may find themselves in challenging situations.

As I talk to a number of our current and prospective clients, I continue to see a familiar good news / bad news scenario:

The good news is that the local real estate market is heating up, driving home prices higher and giving homeowners more options with their property. This new surge in demand for residential real estate comes from both organic and institutional buyers.

Organic buyers are essentially individual purchasers who are buying homes for the purpose of occupying the properties. This is the traditional idea of a home buyer. Institutional buyers, on the other hand, are buying properties up for the purpose of either renting or reselling the homes for a profit. In particular, the private equity company Blackstone Group is active in the Atlanta market, plowing hundreds of millions into local home purchases.

The bad news is that many local homeowners are finding themselves in a difficult situation. This can be a result of a change in income since the home purchase, a change in interest rates (as teaser rates expire and payments balloon), or a general change in life as family dynamics evolve.

More and more, we are seeing homeowners in a spot where an adjustment to their mortgage would make a big difference in the financial and life balance picture…

Homeowners Have More Options Than They May Realize

When it comes to challenging mortgage situations, many homeowners have a great deal more flexibility than they have had in the past. This is due both to new government programs, and to an increased willingness to lend on the part of the banks.

A number of government programs have been created to help homeowners who have adjustable-rate mortgages that are in the process of resetting to higher rates. Many mortgage payers don’t even realize that their rates are increasing until they receive a notification of payment change from the mortgage company.

Other programs focus on homeowners who are in a hardship situation. This can result from a change in employment, a medical or disability situation, or other life issues that arise and cause difficulty for homeowners.

Finally, with property prices increasing, the banks are now much more willing to consider a mortgage adjustment because the underlying property now has value and can be sold in the event of a foreclosure. When banks see valuable collateral, they are much more willing to set up an attractive mortgage arrangement.

My point here is that as a homeowner, you are no longer arbitrarily stuck with your current mortgage. There are many ways to work out a new solution, and at Ashford Advisors, we can help find the perfect program to meet your mortgage needs.

Rental Property Owners Now Have Flexibility Too

As a result of the housing boom (and subsequent bust) many individuals have found themselves in the position of owning extra homes that are being rented out. I’ve seen a number of families that moved to larger homes during the housing bubble, and simply kept their old house for the purpose of renting and creating additional income.

Of course there are a number of individual real estate investors who purchased multiple homes with the intent to flip them – only to be stuck underwater when the real estate tide turned.

With the tremendous amount of buying pressure now lifting real estate values in the Atlanta area, investors who have been stuck with properties now have options as well…

The low interest rates and higher collateral prices can now be a help to investors with mortgage needs. Even though investment loans typically carry a higher rate of interest than mortgages for homes that are lived in, there are a number of banks who will now offer competitive rates for investment properties that can be rented.

This type of mortgage arrangement could be helpful if your investment home needs some remodeling or upkeep. And some investors are able to re-negotiate loans, taking out some equity for repairs, and then get the home into great shape for selling and exiting their investment with a profit.

Setting Up Meetings To Discuss Opportunities

Over the next few weeks, I’ll be scheduling appointments with homeowners and residential real estate investors to discuss mortgage options. If you are in the position of needing some help with your mortgage – or you just want to check into where your mortgage stands, when it resets, or what the terms are – I hope you will call me.

Given the resources that we have at Ashford Advisors, and the network of contacts we have developed in the Atlanta real estate market, I’m sure that we can help with your situation. You may be able to free up additional cash, rid yourself of an unwanted investment, or lower your monthly payments.

It would be my pleasure to help you and your family, and I look forward to sitting down with you. Please give my office a call to schedule your appointment today!

Wishing you every success,
Matt

Matthew J. Riedemann
Founder, President, & Managing Director
Ashford Capital Partners, Ashford Advisors