Million-Dollar Forclosures – The Rich are Walking Away

Million-Dollar Forclosures – The Rich are Walking Away

Since the housing bubble burst five years ago, there has been visible increase in the number of wealthy American families that are losing their homes to foreclosure and in most cases, such foreclosures are said to be mostly voluntary.

From the report put together by RealtyTrac, an outfit geared towards tracking foreclosures, more than 36,000 homes worth about a million dollars were either foreclosed or served with a notice in 2011. Although the percentage falls below 2% of total nationwide foreclosures, it is higher in comparison to preceding years.

According to the vice president of RealtyTrac, Daren Blomquist, “These properties are accounting for a bigger piece of the foreclosure pie.” This can be seen from the report that among the foreclosed properties, there was 115% increase in foreclosure of properties that are valued at a million dollars and above beginning from 2007. The percentage is even higher in the case of homes that are valued at $2 million and above at 273%. Such cannot be said of the homes valued between $500,000 and $1,000,000 since their foreclosure rate reduced by 21%.

It would also interest you to know that a lot of homeowners within the multi-million dollar range were until recently, able to postpone every process that has to do with foreclosure of their properties. According to Blomquist, “they had more financial means to hold out against default.” It was also determined that those homeowners who made fair deals with the lenders were the ones that had other means of income, according to the President of Esslinger-Wooten-Maxwell, a Miami-based real estate firm, Ron Shuffield. It is also reported that 9% of the total foreclosures recorded last year in Miami was represented by properties valued more than $1 million.

Saddled with bloated mortgages after a long run up in property values, many high-end homeowners have chosen to pursue a “strategic default.”

But with a recovery in the housing market still years away, foreclosure has turned out to be a worthwhile option after all. Saddled with bloated mortgages after a long run up in property values, many high-end homeowners have chosen to pursue a “strategic default.” Even though they can afford the monthly mortgage payments, they still decide to walk away from their home because they owe more on the property than it is worth.

According to a national real estate and mortgage expert with Wilshire Holding Group, a Florida-based real estate firm, Stuart Vener, “In the lower-priced houses you’ll see more people defaulting because they can’t afford the payments and it’s a choice between feeding their family and paying the mortgage on a home that’s under water.”

“In million-dollar homes, you’re looking at people who can afford it, but they have to make a business decision: Does it make sense to make payments on a mortgage when the home is worth less than they owe?”

He goes further to say, “In million-dollar homes, you’re looking at people who can afford it, but they have to make a business decision: Does it make sense to make payments on a mortgage when the home is worth less than they owe?” In most cases, it has been said that the best financial decision to take in such cases is just to walk away. According to Blomquist, foreclosures take up to 348 days to be completed, the homeowners have enough time to pack up their belongings and leave. This is just equal to a whole year of free housing for the owners of such foreclosed homes.

Blomquist further states that the fact that a few houses were foreclosed within a given wealthy neighborhood does not in any way have any negative impact on the values of the surrounding homes. Vener says, “You’re not going to see the weeds growing.” He goes further to state that on the other hand, foreclosed homes are an opportunity for real estate investors to make good bargains. He sums it up this way, “In a good way, this is going to drive turnover.” 

Contact Sound Financial Enterprise, LLC for more information about your housing needs.

Sound Financial Enterprise, LLC

PO Box 8611, Tacoma, WA 98419

Phone 253-215-4115;

http://soundfinancialenterprise.com/home.htm

http://www.facebook.com/#!/gordon.macdonald.3745

First Published: February 23, 2012: 5:54 AM ET

By Jessica Dickler @CNNMoney February   23, 2012: 10:09AM ET

Article found  at: http://money.cnn.com/2012/02/23/real_estate/million_dollar_foreclosures/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

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Bandit Signs – Get Creative!

Bandit Signs – Get Creative!

Most real estate investors have put up bandit signs to generate leads. If you have done that, you probably have also experienced calls from irate property owners telling you to remove the sign or they will call the cops. Part of putting up bandit signs seems to be avoiding the bandit sign police. I only had to put up bandit signs one time and my mind started to think, “There has to be a better way!” Here was my thought process: I often park my car in high traffic areas; I have bandit signs; so why can’t I put the two together to get my signs seen? Voilà! …and out popped this idea.

What you see below is my brain child – a twist on bandit signs where I have not gotten calls from the bandit sign police and I even got my first lead last week. The pictures below will show you how you could implement this in your market. I figured out a way to mount four bandit signs on top of my vehicle. It is pretty easy to do, just keep reading.

Frame it! First, I built a 2×2 frame that that would hold four bandit signs. I wanted people to be able to see them from any direction.

 

Get it up there! I placed the sign about 6” above the top of my car. I did that by making the frame with four legs. I had to cut the two legs on opposite corners a little shorter to account for the curvature of my vehicle roof.

 

Protect your car! I put rubber pads on the bottom of the sign frame, similar to what you put on your table legs to protect your floor. I drive a SUV and it is a bit of a stretch to reach it. The rubber pads definitely have saved the paint.

Screw down the sign! I used four broad-headed screws to mount the sight to the frame – one on each corner. More screws would not be good because the plastic corrugated material expands and contracts with changes in temperature.

Protect your bandit sign! I had to keep the sign from blowing off the top off the car. What I came up with will do that just fine, but it would not do much against the ne’er-do-wells that are bent on breaking things.

I used vinyl-coated wire cable and created two eye loops. One is attached to the sign and the other is for a lock. This seems to do the trick. I haven’t had any trouble with it.

Park Right! I have been parking my vehicle at a transit center and park-n-ride lot where there is a lot of traffic from all over the region. When I go the mall, I put it on top of the car. Crowds are good!

Go Mobile? I don’t know about that; I have never tried to drive around this with the bandit signs on the top of my vehicle. If that were to work, I think I’d have to strengthen the frame with some cross braces, and attach the signs with something more substantial.

Give it a shot and let me know if you have any improvements. More importantly, I want to know if you are getting any leads! Contact me by phone, email, or on Facebook.

Sound Financial Enterprise, LLC

PO Box 8611, Tacoma, WA 98419

Phone 253-215-4115;

http://www.facebook.com/#!/gordon.macdonald.3745