Mark Daya- Foreclosure Prevention/ Short Sale Specialist

CNN Money

Federal officials hope to launch a pilot program in early 2012 to convert government-owned foreclosures into rental properties.
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http://money.cnn.com/2012/01/09/news/economy/foreclosures_rental/index.htm?iid=HP_River

The BuildFax residential remodeling index reached a record high in October, extending its 23-month climb another month, as homeowners opt to stay put and remodel rather than buy a new home.

The index, which began in 2004, rose to 147.6, up 40 percent from 105.8 in October 2010. The index stood at 141.4 in September, which was also a high.

Joe Emison, vice president of research and development at BuildFax, said while the number of remodeling projects is rising, the average estimated construction cost of each project is falling.

“We see that as an indication that people are doing more comfort remodels, meaning they’re modeling to make their homes more comfortable as opposed to flipping it,” he said.

The company found the average project cost of a major remodeling project for 2011 was $39,460, down from an index high of $43,808 in 2004. The average project cost of a minor remodeling project in 2011 was $10,968, down from an index high of $12,623 in 2006.

With the monthly cost of owning a home more affordable now than at any point in the past 15 years, homeownership is becoming less expensive than renting in a growing number of cities.

Making sense of the story

• The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the nation’s largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc.
• Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4 percent, are the lowest in six decades.
• As a result, monthly mortgage payments on the median priced home – including taxes and insurance – are lower than the average rent levels in 12 metro areas, according to data compiled by Marcus & Millichap.
• Homeownership also is looking more affordable because after several years of declines, apartment rents will rise approximately 4 percent this year, and rents are poised to pick up even more momentum across the country next year, according to Marcus & Millichap.
• Affordability could continue to improve as prices slide even lower in coming months.  Price declines are likely because the share of “distressed” sales, including bank-owned foreclosures, tend to rise in the winter, when traditional sales activity cools.

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http://online.wsj.com/article/SB10001424052970203764804577060502694077494.html?mod=WSJ_RealEstate_LeftTopNews

While incidences of mortgage fraud have remained steady over the past six quarters overall, submissions of fraudulent employment/income information are on the rise, according to the latest Mortgage Fraud Risk Index by Interthinx.
Employment/income fraud on mortgage applications increased 8.8 percent during the third quarter of 2011.

Applications for home purchase loans dropped by 20 percent in October from September, even though mortgage rates in October held close to their lowest levels of the year.  Compared with one year ago, applications for home purchases were unchanged.

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http://blogs.wsj.com/developments/2011/11/11/applications-for-purchase-mortgages-declined-in-october/?mod=WSJBlog&mod=WSJ_Real Estate_BLOGSDEVELOPMENTSFEED