Twenty-five percent of all homes sold in the U.S. are foreclosures, according to RealtyTracs the organization that tracks homes facing mortgage troubles.  This greatly impacts the values in neighborhoods everywhere because foreclosed homes are typically deeply discounted so lenders can clear their books of the debt.

The good news, however, is that the more these foreclosures sell the more quickly the housing market will recover.  According to MSNBC.com,

A total 248,534 properties in some stage of foreclosure — default, scheduled auction or REO — was sold to third parties, up about 5 percent from the first quarter though down 20 percent from the second quarter 2009, according to RealtyTrac.

“Ironically, the higher the percentage of homes that are sold that are distressed properties, and the bigger the number, the quicker we’ll get through this housing downturn,” said [Rick] Sharga.

Real estate companies are anticipating the real recovery to begin the second quarter of 2011.

Photo by Violette 79 through Flickr Creative Commons.

I can’t do that.  Why?  Because I’ve convinced myself that I can’t or I’ve always been told that I can’t or the news says that I can’t.

Crothecker was right when he wrote on The Great Corporate Escape, it’s time to stop talking and take action,

It’s amazing how helpful people can be when you ask them to use their talents to help you.  I don’t know if the timing is right for us to make a move.  There are a lot of factors: I just started working as an independent consultant this year, we don’t want our kids to have to change schools, we have renovations to finish on our current house, etc.  But it doesn’t matter if we actually do buy a new house or not.  What really matters is that I stopped talking about it and took action.

IF you want something, DO something.  Don’t just say you can’t.  Figure out if you can.

With a multitude of inexpensive houses now on the market and many of them listed as short sales, it’s no wonder buyers want the ability to get the best price possible in the shortest amount of time.  The reality, however, is that nearly all short sales take a long time to close.

While the idea of writing an offer on two marvelous houses and then waiting to see which bank will close first seems tempting, there is a major problem with the concept.  When you get into a binding contract (or two) (or three), you may end up buying both houses.

Why?  Perhaps a seller facing the short sale process has the slow moving mortgage company.  But in good faith, they proceed doing everything right.  But the buyer ends up closing on the other home instead of theirs, so the bank then moves forward with the foreclosure because it has taken months to get that far.

The seller then could sue the buyer for specific performance – by holding two binding contracts, they were not acting in good faith therefore caused the foreclosure.  The seller could sue for damages at that point.

Avoid getting into a situation where you have two contracts at all cost unless your resources are generous and you can afford to own two homes!

From The Painted House, this original ranch house is beautiful. Please take the time to go look at all the stunning photos and read about the history of the house!

H/T Blonde Mom Blog.

Housing recession I cast you away from here!  Though sales have dropped drastically for the majority of real estate agents, they have not completely stopped.  Why?  Housing and shelter will always be a need and no matter how hard a loan is to obtain, no matter how hard a house is to sell, there will always be a good buyer who has an acceptable credit score, a good job, and is ready to buy.

In the past two weeks, I’ve had the privilege of working with a buyer as well as getting ready to list two homes.   When one sells, the owners will be seeking another house as well.

That my friends, is a pocket of light shining in my own real estate career.

In California, housing prices are on the rebound according to WIBW,

The national housing market is shrouded in uncertainty. But in California, there are glimmers of stability.

Home prices are rising in virtually every corner of the state. They’ve climbed for nine consecutive months, and in July posted a 10.4% gain year-over-year. That puts the state’s median price at $315,000 — nearly twice the national median of $183,000.

Other good housing news is for 10 metro areas that Realtor.com names as most likely to appreciate. Included is my own metro area, so perhaps that’s why business is picking up.

How is your area faring?

A couple of years ago, I showed properties so far in the country that I thought we’d need a boat to navigate the river out of there.  Okay, so it wasn’t that bad, but it was remote enough that the listing agents did not put lock boxes on the houses.  Instead, Realtors were still required to go to the offices to pick up the keys and then deliver them back.

In modern America, there are lock boxes that can be placed at houses giving agents access to homes after appointments are made.  There are several different kinds of combination locks – the dial kind, letters, numbers, punch locks, and more.  There are electronic lock boxes, as well, that require special keys or cards that have to be updated regularly.

The down side of having a combo lock is they can be “hacked” into by someone with enough patience to try different numbers or letters.  The down side of having one of the fancier electronic lock boxes is the batteries occasionally need replaced.

The plus side of having a combo lock?  The batteries don’t die (like mine did today as I tried to get into an open house).  The plus side of having an electronic lock?  They’re virtually tamper proof so some sellers would prefer them for safety reasons.

Right now I’m kind of digging on the combo lock, personally.

August 2010 was another banner month of foreclosures according to RealtyTrac.com and MSNBC.com.  In 2005, approximately 100,000 houses were lost to foreclosure according to the article.  It is anticipated that in 2010, 1.2 MILLION homes will be lost to foreclosure and another 3 million are in some stage of the foreclosure process.

“It really does look like we’re seeing a slowdown of new foreclosures being initiated as part of a means to manage inventory levels on the market,” RealtyTrac senior vice president Rick Sharga said in an interview.  “I don’t think it gets any better really until the end of 2013.”

Root problems of high unemployment, wage cuts, negative home equity and restrictive lending practices persist, however, pointing to lingering housing market pain.

That’s how we see it here at Shak & Jill, as well.  However, people who can qualify for home loans have the world at their fingertips.  If you can buy now, do it because mortgage interest rates are on the rise now but still floating at their lowest point ever.

I just discovered this wonderful website called Unhappy Hipsters. Click through for plenty of sarcasm (and laughter) with would-be artistic photos.  You’ll be glad you did!

(Look out, the neighbors may be watching!)

Real estate agents must use extreme caution when advertising or marketing homes for sale due to fairly strict fair housing laws.  For example, there are some words that are definitely forbidden:

Asian, children, couples, disabled, English only, mature individuals, mentally ill, physically fit, restricted, singles only, and Restricted.

Words you must use with caution include:

board approval required, curfew, domestics, quarters, exclusive, ideal for (should not describe people), male roommate, near, prestigious, safe neighborhood, snowbirds, and tranquil setting.

These words are acceptable as standard words:

Assistance animals, credit check required, no college students, no drugs, no drug users, families welcome, golf course nearby, handicap accessible, kids welcome, membership available, nursing home, privacy, private setting, quality construction, quiet, single family home, and traditional style.

Housing must be available to all people regardless of

• Race
• Color
• Religion
• National Origin
• Sex
• Handicap
• Familial Status

It’s amazing how easily people forget that these are federal laws (plus the morally correct thing to do).  For example, if I had a seller tell me they would refuse to sell to someone of a different religion or national origin, I’d most likely decline to list the home.  They can find another monkey to peel their banana.