Sharing some social media wisdom and talking about another bank foreclosure settlement, increasing demand for rentals, shadow inventory and the Fiscal Cliff…
Time to knock the dust off the blog with my first article for 2013. I seriously slacked off for the past several months to give myself some needed time to focus on family for the holidays. Time is such a limited and precious resource. Several years ago I heard a guy speaking at the South Carolina Realtor convention that said you must realize that you have limited time, energy and money. You should only focus on the people that are serious about buying or selling real estate. Everything else is just a waste of your precious and limited time, energy and money.
Some people do not understand blogging or social media or why I would spend time using them. Even my wife does not understand why I use twitter and Facebook. But just a week ago I shared an article on twitter and over 3000 people clicked the link in that 1 tweet. There is so much power in social media IF you use it correctly. If all you do is try to sell, then you are going to be disappointed in your results. I see so many agents that do nothing but post listings to twitter or their Facebook wall.
Social media is like an online party. How long would you want to talk to someone at a party if all they said was “Home for sale, home for sale, home for sale”?
Probably not very long.
Which is why you must share things that are interesting or useful to your Facebook friends or twitter followers. So let’s jump into sharing some real estate news that you can use:
Banks Close to Another Settlement
Just before 2012 ended came word that bank regulators are getting close to yet another settlement with banks. Another multi-billion dollar settlement because of the way the bank’s foreclosure abuses such as forged paperwork or excessive fees. I am not saying that it is OK to stop paying for a house. But it is sad that the banks have to resort to some of the shady business practices they have used in foreclosures. Is it possible they have been doing it for many years but most people were not aware how big the problem was until the meltdown in real estate?
So which banks are we talking about? Why some of the same banks that have already settled and got super huge bailout from the American people:
- Bank of America
- Wells Fargo
- JPMorgan Chase
- Ally Financial
Will the rumored $10 Billion dollar settlement get the banks to change their business practices? If you are thinking about buying a home, maybe you should remember the names of these banks when you start looking to get a mortgage. Just saying…
More Demand for Rentals in the Next Decade
A recent study by the Bipartisan Policy Center shows that there is going to be 5-6 million renter households in the next 10 years because of tight inventories and stricter lending policies. While we do not want to go back to the too loose lending standards of the past, there is no doubt that it is harder to get a mortgage than it used to be. But it isn’t impossible to get a mortgage if you have decent credit. I fear that too many people are putting of buying a home because they heard it is harder than it used to be. Sad since mortgage rates are super low now…
On the other hand, news such as this makes investors drool since they know they can buy homes at super prices today. Then they can rent them for a return on their investment that Wall Street can’t touch. If you have ever wanted to start buying rental homes, now is a great time. Especially in Upstate South Carolina because the demand for rentals is high.
In the Shadows
CoreLogic just released a report showing that the residential shadow inventory as of October 2012 fell 12.3% from the October 2011 level. This is a supply of seven months which is still high. Shadow inventory refers to the homes that are either seriously delinquent on their mortgage, in foreclosure or have already been foreclosed on but are NOT on the market yet. Still this decrease is good news.
What the Fiscal Cliff “Solution” Means for Real Estate
You are probably like me and sick and tired of the political grandstanding the idiots in Washington put us through regarding the Fiscal Cliff. But what are some of the implications of the deal they finally passed for real estate?
- The mortgage interest tax deduction was untouched
- Congress extended the tax deduction for private mortgage insurance payments through December 31, 2013
- The Mortgage Debt Relief Act of 2007 was extended through 2013 (Tax forgiveness for short sales & loan modifications)
I guess we should just be glad the politicians finally got something done and it did not have negative implications for real estate!