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Expert’s Inside Info Turns Out to be Wishful Thinking - 2009-11-08 |
One of the powerful drags on the real estate recovery is the large number of vacant bank-owned homes in the metro Atlanta area. While this is a serious problem all over the United States, it is especially severe here for two reasons:
* For much of the past decade, the Atlanta area has led the nation in housing growth, so it is only natural to expect that we would have more than our share of mortgage defaults. Remember that home loans are most vulnerable to problems in the first couple of years after origination while the borrower is getting used to the new payment; and
* For much of that same decade, Atlanta was a target for mortgage fraud, both organized and informal. It was not until the United States Attorney became seriously involved that the extent of this fraud was even realized, much less checked.
Both of these factors fueled the current inventory of vacant homes poisoning our local market.
When one of these homes sells to an investor for a below-wholesale price, it immediately has a chilling effect on the appraised value of all the homes within a mile. And there are finally enough of these homes selling to impact the entire market at all pricing levels.
Obviously these sales are not "indicative of typical buyer behavior," but the appraisers say they now must include and consider them in all estimates of market value. They then mutter something vague about a "code of conduct" and lender requirements, meaning it's not their fault.
So I was mightily heartened recently when I saw this quote from a mortgage industry commentator on Bankrate.com, that well-respected barometer of our nation's interest rates. He said we could now: "Look for lots of government incentives for mortgage refinancing and for investors to absorb the millions of vacant homes across America."
Believing that since he was an "expert," he must have a direct phone line to Ben Bernanke or, at the very least, to Barack Obama, I called him in California to ask for more information. Such an infusion of money and incentives for investors and homebuyers would have a powerful impact on the Atlanta market, and I wanted to know about it now.
When I reached the expert, I inquired if he had any evidence whatsoever that any new programs were, in fact, on the way or even under consideration anywhere. The phone line went silent.
"No," he replied, "but I know Washington and I know it's going to happen."
He went on to describe the political driver for such programs as a need to shore up city tax bases in a time of great need. He concluded that his prediction must be right because it's "the only thing that can work."
After I hung up the phone, I found myself replying "You may be right, but no one in Washington seems to be listening."
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Upcoming Events
"EPA CERTIFIED RENOVATOR" TRAINING
Do You Work with Real Estate? You Must Be LEAD SAFE CERTIFIED as of April 22nd.
To all owners, realtors, investors, property managers, contractors, electricians, plumbers and painters. Do you ever engage in any level of renovation? If so, read this:
Any renovator, from owners to contractors, from plumbers to electricians to painters, who disturbs lead paint while working in a pre-1978 home, school or day care center, now must be Lead-Safe Certified. If you’re not, you can face tens of thousands of dollars in fines. Plus, you put the health of yourself, your workers and your customers at risk, which could result in lawsuits. One simple 8 hour class certifies you for five years. It’s that easy.
Since April 22, 2010, there are new Federal rules regarding how you perform any work that disturbs lead-based paint in homes, child-care facilities and schools built before 1978. You now must be EPA certified and follow specific work practices to prevent lead contamination.
Failure to follow the new rules can result in federal fines of up to $32,500 per day or up to 5 years in federal prison, or both. Don’t take a chance - it’s not worth it.
How To Become an EPA Certified Renovator:
In just one day, John Adams will teach you how to meet all EPA requirements and become an “EPA Certified Renovator.”
Don’t wait - register now! Click on “Seminars” and choose your day!
- Friday, July 30th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 06th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 13th at Suburban Plaza, 2643 North Decatur Road and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 20th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, August 27th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
Total Course Cost: $295, includes exam and EPA-HUD 400 page manual
Space is limited to 20 participants.
Training services provided by Seagull Environmental Management Co, Inc.
Courses are approved for purposed of certification under Section 402 of TSCA for the Certified Renovator.
This course has been approved by the Georgia Real Estate Commission for 7 hours of Real Estate Continuing Education
For more information, call toll-free 888-373-0029
Click above on the "Seminars" button to register
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John Adams Presents
“The MetroVestAtlanta.com REO Bus Tour”
Get on the bus for a tour of South DeKalb County’s “Real Estate Owned”
homes. Each house you visit will be available that day for purchase at
a giveaway price, regardless of current condition. Financing is
available!
Throughout the day, we will hear from mortgage providers, people in the
construction business and property managers all discussing today’s
situation with Bank Owned REO properties.
Who Should Attend: Investors, Realtors, Lenders, Prospective Buyers, and
anyone who might want to buy a super-bargain house and either do the
rehab themselves or have all the work performed by the pros.
You will see abandoned dumps and finished products, and everything
in between. And Snap will be there to answer all your questions and
explain the rehab and rental strategies.
Saturday, August 21st, 9:30 AM to 4:00 PM
Your $49 fee includes the bus tour and lunch. You must make reservations. No walk-ups.
There is limited seating and the seats are filling fast. ACT NOW before you miss the bus.
We will be meeting at Suburban Plaza, 2643 N. Decatur Road and Church Street, Lower Level, Decatur 30033 (beneath Hancock Fabrics, in the arcade.)
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