The Better Bargain: Foreclosure or Short Sale?
Short sales and foreclosures have flooded the housing market in recent years, and buyers are often drawn to the bargain prices but may be hesitant to jump into what usually is a difficult transaction and a long process.

Bankrate.com recently tackled the question of “Which to Buy: Short Sale or Foreclosure?” in an article that helps buyers weigh the pros and cons of a distressed property. Experts note that the question largely depends on buyers’ situations, how quickly they need a home, and their tolerance for fixer-uppers.

Foreclosure Pros and Cons
Buying a foreclosure is often faster than purchasing a short sale. Plus, buyers often can negotiate closing costs and price in foreclosure sales, Elaine Zimmermann, a real estate investor in Memphis, Tenn., told Bankrate.com.

However, abandoned homes in foreclosure can deteriorate very quickly so the buyer may need to weigh the condition of the home and whether they want a fixer upper. Scarred walls and carpets and appliances that were damaged by the former owner are not uncommon in a foreclosure, says David Richardson, an inspector in the Detroit area who’s certified by the American Society of Home Inspectors.

Short Sales Pros and Cons
A short-sale home is still owned by the occupant, so it tends to be in better condition than a foreclosure, experts say.

“The short sale is, in my opinion, far better than buying a foreclosure because the home is generally in better condition because it’s been occupied,” says Gwen Daubenmeyer, a certified distressed property expert with RE/MAX in Detroit. “The utilities have been maintained, usually the lawn is maintained, those kinds of things.”

But short sales often can take a longer time than a foreclosure to close. However, the federal Home Affordable Foreclosure Alternatives program, or HAFA, may be able to help speed up the short-sale process since it has created a timeline to hold mortgage lenders accountable, but still “it’s not perfect by any means,” Daubenmeyer says.

Source: “Which to Buy: Short Sale or Foreclosure?” Bankrate.com (June 2011)

Foreclosures Slow as Banks Face Backlogs
Nationwide, new foreclosure cases and repossessions have dropped by a third since last fall as banks, as greater scrutiny over banks’ foreclosure procedures and more home owners fighting back in court has slowed the pace. Banks, already facing huge backlogs of foreclosures they’ve already repossessed, also may be reluctant to add on more to their inventory, experts say.

For example, In New York, experts estimate it would take lenders 62 years at their current pace to repossess the 213,000 houses now in severe default or foreclosure, according to LPS Applied Analytics, a real estate data firm. New York boasted the longest foreclosure backlog in the nation. Following behind, in New Jersey it would take 49 years, and in Florida, Massachusetts, and Illinois it would take 10 years to handle the supply of foreclosures at the current pace.

States where courts must review each foreclosure tend to have the longest delays. But in the 27 states without that requirement, foreclosures are much quicker. For example, as comparison, in California, the foreclosure backlog is three years, and in Nevada and Colorado, it’s two years.

“If you were in foreclosure four years ago, you were biting your nails, asking yourself, ‘When is the sheriff going to show up and put me on the street?’” Herb Blecher, an LPS senior vice president, told The New York Times. “Now you’re probably not losing any sleep.”

However, the banks say they is no strategy in delaying foreclosures. “Any suggestion that we have a strategy to delay foreclosures is baseless,” a spokesman for Bank of America said. Instead, one bank blamed delays in state laws governing foreclosures while others said the decline in foreclosures is the product of an improving economy.

Source: “Backlog of Foreclosures Giving Some a Reprieve,” The New York Times (June 19, 2011)

30-Year Rates Inch Up Slightly for the Week After eight weeks of declines, the average 30-year fixed-rate mortgage, a popular choice among home buyers, edged up this week but still remains low by historical standards. Meanwhile, the 15-year mortgage continued to reach new lows for the year, Freddie Mac reports in its weekly mortgage market survey. Here’s a closer look at how rates fared for the week. 30-year fixed-rate mortgage averaged 4.50 percent, up just slightly from last week’s 4.49 percent. Last year at this time, the 30-year rate mortgage averaged 4.75 percent. 15-year fixed-rate mortgage averaged 3.67 percent for the week, which is down from last week’s 3.68 percent. That marks its lowest level since November 2010. Last year at this time, the 15-year rate mortgage averaged 4.20 percent. 5-year adjustable-rate mortgage averaged 3.27 percent, down from last week’s 3.28 percent average. A year ago at this time, the 5-year ARM averaged 3.89 percent. Overall, “mortgage rates were little changed this week as financial market participants shrugged off the recent inflation reports,” says Frank Nothaft, chief economist of Freddie Mac. Source: “Mortgage Rates Mixed; 30-Year Fixed Ticks Up to 4.50 Percent,” Freddie Mac (June 16, 2011)

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Fore

CA – Foreclosure Inventories

Foreclosure activity slows in May, except in California Foreclosure filing activity was down in May 2011, with fewer foreclosure filings in all states except California, where there was an increase in Notice of Trustee Sale filings, which may lead to more foreclosure sales in future months. Activity on the courthouse steps was mixed, with California the only state to have increases in foreclosure sales both “Back to Bank” and “Sold to Third Party.” After an increase in foreclosure cancellations across the board in April 2011, there was a reversal of this trend in May, with cancellations declining significantly in California, Nevada, and Washington. Cancellations moderately declined in Arizona, but increased in Oregon. Notice of Default filings fell in May 2011 with a 4 percent decline resulting in the fewest foreclosure starts since October 2008 when SB 1137 resulted in a temporary halt in the Notice of Default process. More foreclosures were scheduled for sale at the courthouse steps in May, with Notice of Trustee Sale filings up 16.6 percent from April, the first month-over-month increase this year. Notice of Trustee sales remain down year-over-year, off by 9 percent. Cancellations of foreclosure sales dropped 24.3 percent compared with April after rising 27 percent from March. Foreclosure sales on the courthouse steps were up from the prior month, with 3.4 percent more sales Back to Bank and a 4.1 percent increase in foreclosed properties Sold to Third Parties. The average Time to Foreclose continued a steady climb, increasing 10.3 percent to a new record of 344 days. Third parties are reselling inventory more quickly, with the Time to Resell down 7.6 percent month-over-month to 134 days, the fewest number of days since September 2010 — likely due in part to a lack of inventory throughout much of California. closure activity slows in May, except in California Foreclosure filing activity was down in May 2011, with fewer foreclosure filings in all states except California, where there was an increase in Notice of Trustee Sale filings, which may lead to more foreclosure sales in future months. Activity on the courthouse steps was mixed, with California the only state to have increases in foreclosure sales both “Back to Bank” and “Sold to Third Party.” After an increase in foreclosure cancellations across the board in April 2011, there was a reversal of this trend in May, with cancellations declining significantly in California, Nevada, and Washington. Cancellations moderately declined in Arizona, but increased in Oregon. Notice of Default filings fell in May 2011 with a 4 percent decline resulting in the fewest foreclosure starts since October 2008 when SB 1137 resulted in a temporary halt in the Notice of Default process. More foreclosures were scheduled for sale at the courthouse steps in May, with Notice of Trustee Sale filings up 16.6 percent from April, the first month-over-month increase this year. Notice of Trustee sales remain down year-over-year, off by 9 percent. Cancellations of foreclosure sales dropped 24.3 percent compared with April after rising 27 percent from March. Foreclosure sales on the courthouse steps were up from the prior month, with 3.4 percent more sales Back to Bank and a 4.1 percent increase in foreclosed properties Sold to Third Parties. The average Time to Foreclose continued a steady climb, increasing 10.3 percent to a new record of 344 days. Third parties are reselling inventory more quickly, with the Time to Resell down 7.6 percent month-over-month to 134 days, the fewest number of days since September 2010 — likely due in part to a lack of inventory throughout much of California.

How to Keep Your Passwords Secure
What makes a good password vs. a bad password? You undoubtedly have several passwords that you use to protect your important business information — so how do you make sure those passwords don’t become easy guesses for would-be hackers or make you a victim of cybercrime?

Here are some tips from security experts.

▪ Make your password 10 characters in length: Security researchers have found that a password with 10 characters would take a hacker, on average, 19.24 years at a hundred-billion-guesses-a-second rate to try every combination of those 10 characters to guess your password.

▪ Make sure your passwords are encrypted: If you use a password service to store all of your passwords so you can keep them straight, make sure the company does not store actual passwords but only the encrypted forms of it on the cloud. For example, the password bank LastPass only stores encrypted passwords on the Internet, and the information is only decrypted when you’ve retrieved it.

▪ Don’t use common words: Steve Gibson, a security expert and chief executive of the Gibson Research Corporation, suggests avoiding commonly used passwords as well as any words found in the dictionary. Instead, he stresses one of the strongest passwords you can make is a bunch of gibberish characters — again, at least 10 characters long.

Source: “Guard That Password (and Make Sure It’s Encrypted),” The New York Times (June 11, 2011)

Which Social Network Is Rated Most Important?
Nearly 60 percent of survey respondents say that it is important to have a LinkedIn account–more than any other social network, according to “S-Net (The Impact of Social Media),” a report from ROI Research Inc. of nearly 3,000 active social networkers.

And those surveyed say they use LinkedIn a lot, too. With those who have an active LinkedIn account, half of those surveyed say they visit the site at least weekly, and 20 percent visit the site at least daily.

“Factors including LinkedIn’s recent IPO announcement, the May uptick in national unemployment, and signs of a slowed market certainly contribute to LinkedIn’s attractiveness among social networkers,” says Daina Middleton, CEO of Performics, which released the survey results.

The survey also found:

•Social networkers listen to what their peers have to say about brands and businesses they like–or don’t. Sixty percent say they are at least somewhat likely to take action when a friend posts something about a product/service, company, or brand. Slightly more than half agree that others can influence business decisions made by companies and brands by sharing their opinions on social networking sites.

•Fifty-three percent frequently or occasionally use social networking sites to give feedback about a brand or business.

•The public is divided on using social networks to give and get advice about other companies. Fifty percent of respondents say they use social networks to give advice and another 50 percent say they use it to get advice about services and companies.

Source: “New Social Media Study: Nearly 60 Percent Say LinkedIn Is Most Important Social Network Account,” RISMedia (June 9, 2011)

What’s That ‘+1 Button’ All Over the Internet?
Google recently launched the “+1 button” and you’ll spot it on a range of Web sites from YouTube and Blogger to the Washington Post and many others. Google added the +1 button to its search engine three months ago but is now making the “+1 button” available to other Web sites to add.

So what is it?

The button is similar to Facebook’s Like button. You click the +1 button when you think “this is pretty cool” or when you want to say “you should check this out” when viewing Web sites, according to Google.

The button gives you the ability to vote on Web sites and advertisements (the button can appear next to the headline of search ads), and the information is then used to tailor search results for you and your contacts.

For example, “with a single click you can recommend that raincoat, news article, or favorite sci-fi movie to friends, contacts, and the rest of the world,” writes Google software engineer Evan Gilbert in a blog post. “The next time your connections search, they could see your +1′s directly in their search results, helping them find your recommendations when they’re most useful.”

You’ll need to be signed into your Google Account to see when friends and contacts have endorsed certain Web pages using the +1 button.

Google says it hopes the added button will help improve click-through rates for content and advertising and is encouraging Web site owners to add the button to their Web pages to get their search results to stand out more.

Source: “Google Rolls Out +1 Button for Web Sites,” TechSpot (June 1, 2011)

On Housing, Don’t Believe the Doom
Non-distressed properties sold by voluntary sellers have started to stabilize. That’s a sign that the worse could be over, Ajay Rajadhyaksha, the co-head of U.S. fixed income strategy at Barclays Capital, said in a research note on Friday.

An increase in voluntary sales over the summer should lead to another change in the mix of homes, in favor of non-distressed sales, and the aggregate index of home prices should stop declining and could even increase.

“In sum, there are many reasons to worry about the U.S. macroeconomic picture (the recent softening in the labor market, the U.S. fiscal picture, etc.) but the recent drop in U.S. home prices should not be one of them,” according to Rajadhyaksha.

Source: “Don’t Believe the Doom on U.S. Housing,” CNBC.com, Patrick Allen (June 3, 2011)