Demand For Single Family Rental Are High

 

Although real estate prices have fallen dramatically for the past 2 or 3 years, rents are rising. High demands for single family rentals are on the rise due to the volume of foreclosures and short sales. No matter what the reason for these families losing their homes they still need places to live. Consequently the demand for single family rentals is high.

For a lot of these families leaving their homes, they are not necessary wanting to leave their neighborhoods. They are looking to keep the kids in the same schools and keep their friends. For these new renters the rents are less than their old mortgage payments, they are relieved from maintenance work and they are happier to be out from under the massive payments.

In the past’s multi-family units, i.e. apartments, duplexes were easy to rent, but with so many more renters looking to live in SFR’s this is starting to change. We are starting to see the demand “good” single family property rentals in nice neighborhoods go up.

Investors will benefit from this information because they understand prices have been dropping on properties and the demand for good rentals has been going up. Investors are confident that they can rent for a good rate and have an easier sale when they are ready to sell after the prices rise.

Underwater Home loan A Vexing Dilemma

mark spectorIf CoreLogic’s data are anything at all use about 11.1 million homes in america (23.1 per cent of all mortgaged properties) were underwater in the October-December quarter. This implies 10.8 million properties, up from 22.5 %, through the July-September quarter. Even though the amount of underwater mortgages had dropped in the last three quarters, it had been mainly due to much more number of home foreclosures. This has place numerous in a quandary, keeping them from offering their properties in an currently poor housing market.

Generally, underwater home mortgages increase when ever home values drop. In December 2010, home values had been the lowest since the housing bust. In a regular market, about 5 per cent of householders could be underwater.

According to one estimate, about 2.4 million individuals have less than 5% equity in their properties, raising the threat perception should prices drop in their region. Nevada noted the worst case scenario, with a harmful property equity. Trailing strongly behind are Arizona, Florida, Michigan and California, with nearly half of property owners having mortgages underwater. Alternatively, Oklahoma had the smallest percentage of underwater mortgages through October-December quarter at 5.8 per cent. 

At present, home sales are dampened largely by underwater home mortgages. Householders who wish to sell their properties refuse to incur a loss, while banking institutions usually do not agree to a short sale. This means a mortgage company permits a borrower to sell the property for less than the specific amount of the mortgage.

Underwater mortgage is among the vexing troubles ailing the united states real estate markets. Regardless of the Home Affordable Modification Program (HAMP) created by the government in 2008, the situation continues to affect the country. Apparently, state attorney generals are making concerted efforts to solve the problems related to improper mortgage foreclosures with big mortgage companies.

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