Real Estate News Blog March Archive

Big Banks Come Out Swinging Against Subprime Originators

By Art C Ryter at 03/13/07 19:52

States that Morgan Stanley and other large banks are forcing subprime loan originators to buy-back/repurchase their loans. Forcolsures and defaults from mortgages granted in 2005 and 2006 are up to 13% of subprime loans. The forced repurchase of loans may push many mortgage companies into bankruptcy. I doubt that these companies would be able to refinance their loans, unless they have access in the foreign market.

Original source: Seeking Alpha. Big Banks Come Out Swinging Against Subprime Originators

Big Banks Come Out Swinging Against Subprime Originators

States that Morgan Stanley and other large banks are forcing subprime loan originators to buy-back/repurchase their loans. Forcolsures and defaults from mortgages granted in 2005 and 2006 are up to 13% of subprime loans. The forced repurchase of loans may push many mortgage companies into bankruptcy. I doubt that these companies would be able to refinance their loans, unless they have access in the foreign market.

Original source: Seeking Alpha. Big Banks Come Out Swinging Against Subprime Originators

Subprime Shakeout Will Erode New Home Sales - Analyst

Analysts predict that rising forclosures in the subprime mortgage market will stall new home sales. Subprime mortgages could be either in new home purchases or refinance existing loans. Forclosures on recently purchased homes will compete with new home sales as supply will increase and financing will be more difficult due to improved lending standards. With a downturn in the financial markets, there may be little help for people in forclosure which will also add to home supply inventory.

Original source: Seeking Alpha. Subprime Shakeout Will Erode New Home Sales - Analyst

U.S. Subprime Mortgage Delinquencies at 4-Year High

Casts the subprime mortgage market negatively based on increasing forclosures and little help for people looking to refinance their mortgages. The 4-year high in mortgage delinquencies is predicted to get worse as interest rates increase and Adjustable Rate Mortgages (ARMs) reset. Without money to refinance at higher interest rates, people seeking to stop their forclosure or other forclosure financial help may need look at selling their house for a loss and moving into more affordable homes.

Original source: Bloomberg. U.S. Subprime Mortgage Delinquencies at 4-Year High

Colorado Foreclosures: Mostly Comprised of ARM Loans and Loans f

77 is the unlucky number for financial investors as that is the percent of forclosures in the market from non-bank lenders and it is also the percentage of loans that are in the Adjustable Rate Mortgage (ARM) category. As the home owners and investors were already borrowing from the non-bank market, there may be little legitimate financial institutions can do to stop forclosure on their property or give them any forclosure help.

Original source: Default Servicing News. [404 Check: was link to http:/ / www. dsnews. com/ view_ story. cfm?id=913, anchor: Colorado Foreclosures: Mostly Comprised of ARM Loans and Loans from Non-Bank Lenders]

New Fund for Affordable Housing In Latin America

Relates that the Alsis Fund was created by the Overseas Private Investment Corporation, a United States government funded development agency, to assist the development of affordable housing and real estate in Latin America by making the mortgage market more efficient. Increasing real estate affordability in Mexico, Colombia, Costa Rica, and other Central American nations should help improve and diversify the general economies of the nations and the region as housing loans become the capitalization basis for small businesses.

Original source: Social Funds. New Fund for Affordable Housing In Latin America

Nicaragua, the new beachfront frontier

Presents San Juan del Sur, Nicaragua, as “Costa Rica” or “Panama” before the influx of American fast food chains, steep prices, and crime. Ocean-front properties are still available and developers of the region are looking to keep the small fishing village feel of San Juan, setting aside 450-acres as a natural reserve. Prices for land and homes on the beach or with ocean views can be found for ten percent of those in coastal Costa Rica. Second home buyers in San Juan del Sur are typically Americans, Canadians, and Europeans.

Original source: The Los Angeles Times. [404 Check: was link to http:/ / www. latimes. com/ business/ la -re -nicaragua11mar11,1,4908548,full. story?coll=la -mininav -business&ctrack=1&cset=true, anchor: Nicaragua, the new beachfront frontier]

Crisis Looms in Mortgages

Highlights the perceptible trends in the mortgage / real estate lending market in the United States. Sub-prime lending, loans to high risk borrowers, made up 12% of real estate loans in 2006. Loans were converted into faster-moving marketable securities and resold to investors, a high-finance version hot potato. If housing prices stagnate or fall in the United States real estate market, many lenders and investors will be left holding expensive and unproductive assets; and the sell-off will be ugly.

Original source: New York Times. Crisis Looms in Mortgages

En Buenos Aires ya no quedan terrenos de calidad para invertir

Offers a question and answer session with Jorge Perez “the richest Argentine” on real estate investment in Argentina and Uruguay. Two favorite real estate investment spots are in Punta del Este, Uruguay, and Buenos Aires, Argentina. Perez notes that affordable mid-end housing is generally lacking due to the dearth of good quality land in Argentina which is why he is currently focused on real estate development in Uruguay. Buyers of the development properties are 80% North American and European second home buyers. He is also working on establishing direct flights to Punta del Este via PLUNA, the Uruguayan national airline.

Original source: Perfil.com. En Buenos Aires ya no quedan terrenos de calidad para invertir

Investing in Argentina: The Dollar Still Goes a Long Way

Argues that Argentina is a great buy dollar for dollar, particularly in land and residential real estate. American and Europeans see value in Argentine real estate due to its relative cost and the fact that it is a cash market which usually hinders speculation. The increasing prices market for commodities that are energy convertible, corn, soy, sugar, and rising demand for meat in China also increasing demand for grains. Anyone want to be a farmer or rancher? Argentina’s real estate property market may be your ticket.

Original source: Daily Reckoning. Investing in Argentina: The Dollar Still Goes a Long Way