Sharp Drop in US Homes Lost to Foreclosure in Feb.

While the nation’s foreclosure woes persist, new data show they’re easing amid a resurgent housing market, rising home prices and efforts by some states to buy homeowners more time to avoid losing their homes.

The number of U.S. homes repossessed by lenders last month fell 11 percent from January and declined 29 percent from February last year, tumbling to the lowest level since September 2007, foreclosure listing firm RealtyTrac Inc. said Thursday.

Some states continued to see sharp increases in homes lost to foreclosure last month, including Washington, Wisconsin and Iowa. But home repossessions declined both on an annual and monthly basis in a majority of states, including past foreclosure hotbeds such as California, Georgia and Arizona.

All told, 45,038 U.S. homes completed the foreclosure process in February. That’s less than half of the 102,000 homes lost to foreclosure in March 2010, when home repossessions peaked, according to the firm’s records, which go back to January 2005.

Foreclosures remain at more than double the pace that RealtyTrac considers normal, roughly 20,000 foreclosures a month, the average in 2005. But their national impact has been contained, said Daren Blomquist, a vice president at RealtyTrac.

“It’s definitely safe to say we’re past the worst of it at a national level,” he said.

Several factors are contributing to the overall decline in completed foreclosures. More jobs and ultra-low mortgage rates are helping the once-battered housing market recover, and the rising demand combined with fewer available homes has helped push home prices steadily upward since last year. They posted their biggest annual increase in six years in January.

Higher home values help restore equity to homeowners, which can help those at risk of foreclosure by improving their chances of refinancing their mortgage to a lower payment or place them in a better position to sell their home.

In the first nine months of 2012, 1.4 million homeowners who had been underwater on their mortgage, or owed more than their home is worth, were moved into positive equity, according to data from CoreLogic.

The tight supply of available homes for sale has created a sellers’ market, with many properties drawing multiple offers. That means even bank-owned homes and those in some stage of foreclosure, which typically sell at a discount to other homes, are going for higher prices.

That has given banks further incentive to let homeowners who have fallen behind on their payments avoid foreclosure by authorizing a short sale, when a lender agrees to accept less for a home than what the seller owes on their mortgage.

Last year, sales of homes in some stage of foreclosure rose 6 percent from a year earlier, while sales of bank-owned homes fell 15 percent, according to RealtyTrac.

Meanwhile, states like California, Nevada and Washington have passed laws to increase homeowners’ protections from foreclosure. Those laws have effectively delayed the pace of homes entering the foreclosure process, which has helped to thin the pipeline of completed foreclosures in those states.

The combination of fewer foreclosed homes hitting the market and higher prices for those that do sell is good news for homeowners because those properties will be less of a drag on the value of nearby homes.

“They’ll have less of a negative impact just because there are fewer selling,” Blomquist said.

As of the end of February, 1.5 million U.S. homes were in some stage of foreclosure or in banks’ possession, according to RealtyTrac.

Given the monthly pace of home repossessions through February, Blomquist projects there will be 600,000 completed foreclosures this year, down from 671,000 last year.

He also expects the number of homes taken back by lenders to increase later this year, noting that 1.2 million homes entered the foreclosure process in 2012. Typically, about half of those end up as bank-owned homes, he said.

While lenders took back fewer homes last month, the number of properties that entered the foreclosure process in February increased 10 percent from the previous month, RealtyTrac said.

The monthly gain was the first after three monthly declines. So-called foreclosure starts were down 25 percent from February 2012, with Nevada, New York, Washington and 13 other states posting annual increases.

Overall, Florida posted the nation’s highest foreclosure rate, which RealtyTrac measures by tracking the number of properties with foreclosure-related filings. One in every 282 households in the state received at least one filing, or more than three times the national average…..View More

Recession Proofing Assets and Wealth In 2013

In contrast to the present economic growth and bullish market trends, several experts are of the view that the US economy may come under the grip of recession by the 4^th quarter of 2013 or in the 1^st quarter of 2014. Investment expert Michael Lombardi published a report named Critical Warning Number Six which attained much attention from the media because of its controversial content that explains the possibility of an approaching economic downturn which will be more severe than the one in 2007. Lombardi believes that the present economic prosperity is the result of a 4 yearlong recovery phenomena which initiated in 2009 after the devastation of the 2007-08 Great Depression. At present, major investment sectors and stocks have recovered completely and going through a phase of growth and expansion. But this phase of affluence and economic growth will not continue forever and market will collapse again in the future. Market downfalls, recovery, and growth are parts of the economic cycle and by looking back at the past we can see that recessions often arrives when the economy reaches the peak of growth and development. Therefore recessional events will continue to haunt and torment investors in the future as well which is why it is important to recession proof investments and assets so that they are immune from future troubles. Given below are some safety measures and rick management techniques adopting which you can protect your wealth and investment from recessions.

Gold Investment: Gold investment is one of the convenient procedures using which you can safeguard property and assets from market downfall. Unlike money gold has real value and its demand is always on the rise which is why you can convert your monetary assets into gold by simply buying physical gold. There are 2 advantages of investing in gold, first it acts as an inflation hedge which means the value of gold is not effected by recession. Secondly since the value of gold is appreciative in nature you can always buy gold at the present time and sell it at higher prices in the future. 

Diversify your Portfolio: The best way to evade recessional dangers is by investing in various sectors. Recessions often attack a particular sector in the beginning and later spreads in to other segments. By diversifying your portfolio you will get enough time to refuge and cover most of your assets before it causes major damage to your wealth. 

Investment in Foreign Market: If you take a look at the last recession, you will see that countries like China and India remained unaffected from the global economic decline. Economies of countries like China are not tied to the US economy and therefore investors looking to diversify their portfolio can invest in foreign stocks in countries like India, Australia, Brazil, etc. Furthermore investors can buy stocks from countries like China and India at lower prices and enjoy high yields.  

Real Estate Property Investment: Real estate invest can be an effective tool during recession if executed in the right manner. The wisest thing to do with real estate properties during a recessional phase is to provide them on rent. You can be successful in real estates if you sell the property during economic prosperity and rent it during market downfall. In United States rental properties that provide smooth cash flow is available in a number of areas and you can locate them by doing some online study. 

Invest in Timberland: Timber is an investment sector that performs well when stock market declines as the sector is not associated with the market. Moreover timber industry has shown significant growth in the past 2 decades with continuous annual average growth of log prices. The other benefit of timberland investment is that the land you buy for growing timber acts as the principal and you can use it for some other purpose if the timber market declines in the future.

Critical Warning Number Six

Something bigger than the credit crisis of 2008 is headed our way.

https://www.lombardipublishing.com/SecurePubs/order.php?pub=CA&sb=PC-CA-EVEREST3

For most people, it will hit them like a brick wall.

It will touch Americans harder and deeper than
anything else we've seen since the Great Depression.

Michael Lombardi feels so strongly about this, he's
decided to present his "Critical Warning Number Six" in a
new video.

In case you're not familiar with him...

Michael Lombardi has been widely recognized as
predicting five major economic events over the past 10 years.

In 2002, he started advising his readers to buy gold-
related investments when gold traded under $300 an ounce.

In 2006, he begged his readers to get out of the housing
market...before it plunged.

He was among the first (back in late 2006) to predict
that the U.S. economy would be in a recession by late 2007.

Michael correctly predicted the crash in the stock market
of 2008 and early 2009.

Finally, Michael turned bullish on stocks in March of
2009 and rode the bear market rally from a Dow Jones
Industrial Average of 6,440 on March 9, 2009, to 13,437 on
September 28, 2012—a gain of 109%.

I call Michael's video controversial because most people
will not like what he has to say...they will find it hard to believe
until they see all the facts as Michael presents them.

Michael's first five predictions have already come true.
Now he's issuing Critical Warning Number Six.

A Guide to Canadian Real Estate Tax Payments

When the global housing market was going through some tough times in the recent past Canadian real estate market was enjoying a decent growth with impressive sale figures and pleasing property prices. The real estate sectors in major economies like the United States, Eurozone, Japan, etc. have declined considerably for the past several years especially after the Great Recession of 2007-08 in which the world came across a global economic decline. However the Canadian real estate market remained majorly invulnerable to this event and continued to grow and expand further.

Experts believe that the golden era of prosperity and success of the real estate sector will continue for the year 2013 as well if investors maintains precision in their investment. Buying property in Canada is profitable when you possess a better understanding of the Canadian tax laws that are applicable under real estate investments. It is not necessary for investors to be a Canadian citizens for making investments in the property sector. Immigrants who are willing to invest in Canadian properties can buy assets on a temporary basis by fulfilling certain immigration criteria.  Immigrants eager to invest in rental properties can do it by first applying for annual tax returns with CRA (Canadian Revenue Agency). 

Moreover when you buy property in Canada you will have to pay provincial property tax that differs from province to province. Federal Goods and Service Tax (GST) is levied on new home purchases and is not applicable on the resale of properties.  While selling back property, Canadian government takes 50% of any withholding tax from non-residential sellers. Besides immigrants need to provide a clearance certificate issued by the CRA, and the buyers will be personally responsible for any unpaid taxes of the seller. Canadian residents are not taxed on gains and profits incurred from selling properties. 

There are several other province and locations specific laws which are quite substantial and flexible directed to make real estate investment easy and profitable for investors. However for the successful running of property investments, investors must be aware of the all the rules and legal guidelines and act accordingly. Investor must also gain knowledge on the numerous tax implications during the various phases of property investment from buying to renting or inhibiting, and finally selling of the property.

Save Property and Investments from Upcoming Recession

With the present bullish market scenario investors are in the mood for investing their capital in various sectors but the current bull market situation is rather causing more concern for investors than relief because of the various new economic and market predictionswhich indicates that the bull will bring a new recession along with it in the coming months of 2013. History suggest that bull market scenariosare often followed by economic depressions and market collapse and presently many are considering that we are at the apex of bull market situation which is why a new recessional downfall is expected in the days to come. Hence it is important for investors to safeguard their investments and recession-prooftheir portfolios now before it is too late. Investors who invest blindly and are ignorant of the fact that periods of recessions and expansions are part of an economic cycle are more likely to lose money in their investments. So if you are an investor and involved in stock market investment you must learn how to protect your property and investments from recessionary phases which is why are providing some important guidelines following which you can save your investment from the upcoming predicted recession that will most probably land upon us in 2013.

Measures you must take for recession proofing your investment

Risk management:Investments are always associated risks and dangers and it is significant to adopt risk management plans and strategiesin the very beginning of the investment so that the investment becomes risk proof and secured from recessional phases.

Stay updated on current market trends: Market is a determining factor that plays a major role in determining the fate of your stock market and property investment. The current market situation is bullish in nature whichis very luring for investors. But considering that bullish market phase can change into recession in leaps and bounds it is important for investors to remain updated on current market trends so that they can respond immediately upon market changes.

Enquire before you invest: One of the traditional ways by which you can save your investment is by making a detailed research before you invest and look out for any anomalies that can be the reason for trouble later. More over with research you can choose the best stocks for investment that will provide you with better dividends and probably won’t sink during market collapse. 

Reinvest your dividends: Reinvesting the dividends earned from original investment is an appropriate way for making more money from investments. Apparently the present bullish market is offering a major opportunity for investors for using such reinvestment schemes for doubling their assets and recessional losses won’t be able to create a major dent in your overall financial stature.

Keep some security assets: Keeping some security assets aside is important since it helps in recovery. Many investors don’t keep security assets and put forward everything in investment which is why many can’t reinvest after the end of a recessional phase and even suffer from bankruptcy. Gold acts as a perfect security asset and you can convert part of your monetary property into gold and use it at the time of requirement.

By following these above steps you can protect a large part of your investments and assets during a recessional phase. Although no one can avoid recession completely it is always important to minimize the danger in your portfolio and adopt steps that facilitates quick recovery from such phases.

Real Estate Investment ~ A Short Story

Real estate investing makes sense when there is the assurance of monthly returns or good profits on sale/ resale of the property. It does not stop at that. The returns should be positive and comparative with other properties in the area that have the same or similar features.

Canadian Real Estate Investing Guide

As mentioned above, cash flow is the principal consideration that must be done before venturing into this sector of investment. Once you are assured that positive income will be generated through the same, you can prepare a flow chart covering your forthcoming endeavor in the real estate.

It would be wise to start with due consideration of your objective for the investment. A long term investment will generally pay off very well. Understand how you can control your finances to get the most out of the same. Do consult experts or people with experience in this field to find out how you should calculate and use tax deductions associated with property investments. Remember that mortgage is paid down every month.

You could evaluate how much down payment you are contributing toward the investment property. In Canada, since the year 2006, this amount has been set at about of 5-10% of the value of the property. The Canadian banks offer standard mortgages on the same. Then you have to consider the carrying costs, the amortization period, the insurance thereon, the property taxes and other costs. After you deduct all the above amounts from your expected rent amount, you can find out whether you can still avail a good cash flow on the property. It will be necessary to, of course consider that there could be unexpected or routine maintenance charges (like costs incurred for repairing leaking pipes, servicing various appliances, etc.) in the year that you will have to bear. This has to be included in the above considerations. Hence with this background, when any urgent repairs crop up, you are financially ready for coping up with the situation at hand; unlike a novice in this field who, being caught unawares and at a loss to fend for self when such circumstances arise, feels that his investment was a failure.

It is important to realize that tax deductions, after being written off against other income, can be beneficial in the form of refunds. Fees for legal compliances, insurance, land transfers, maintenance costs and property taxes come under this category. Plus, the monthly mortgage paid gives you equity amounts. If your aim is a long term investment, there is a fair chance of reasonable property appreciation, unless the area has lost demand due to certain reasons. Property depreciation should also be taken into account.

Property Investment Tips 

1. Due research in the market is essential before you delve in this segment.
2. Explore the various financing options and the investment strategies.
3. Take the help of experts in this field to guide you through the process of investing. Reliable home valuators can be considered.
4. It is necessary to prepare a portfolio of the property investment.
5. The equity in your home can be used for securing loan in the investment property.
6. As per your financial position, it would help if you analyze the forthcoming income and expenditure and prepare a balance sheet of the same.
7. Possibilities for capital as well as rental growth should be considered.
8. The location plays an important role. It should be in an area that has demand for rentals. The specific details as regards the number of rooms and their types should be researched. Good infrastructure, areas developing in the next couple of years that will be easily accessible to centers of essential daily needs and transportation should be preferred.
9. Refrain from properties that are in areas already developed, because by the time you buy them, the potential for further growth could be nil as it may have already peaked by that time.
10. Save up for a minimum of half a year’s mortgage payments, because, in all possibility, you may not be easily able to get a tenant in the initial stages. Additionally, you may also need some money for unexpected repairs and/ or maintenance work.

Real Estate Market Trends

The housing market was quite low in the year 2012. Foreclosures starts have been seeing a decreasing trend through the year. But now banks are aiming for selling into positive trends in the housing market after having observed that investors are buying properties; over-bidding on the same; thus boosting the prices. If the market gets flooded with rental supply, this will cause the rents to lower down. Still, buying for flipping is being done and this pushes properties for rent or sale at the backstage. For the same, the mortgage rates have been lowered and the rent amount along with housing prices have been pushed up. However, solid economic fundamentals do not drive this trend, especially at the level with which the prices are increasing. It would be interesting to observe the market trend of this momentum that will be carried forward as we enter into next year.

The year 2012 did not see any growth in the income of the average citizen. Yes, rental prices were quite appreciable and traveled an upward trend. Therefore a major portion of the household income was spent on rental housing and the low income group was badly hit due to the same. New homes sales; though modestly rising, are still suffering and related jobs are hard to find. The market trend going into 2013 could see a small rise in the sales of new housing starts. Mortgage rates will also have to be considered along with how the rental market will be viewed by investors. On account of the lowered interest rates, the demand for loans has been very high. This trend is expected to continue in the next year.