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Info and Tips about Ky Master Commissioner Sales

First Time Buyers’ Market

With so many first time buyers taking advantage of the federal tax credit, there is credit moving, as well as houses being bought.  According to Business Lexington, 4,105 Kentuckians have taken advantage of this tax credit.  However, the article correctly points out that the cost of this program may exceed $15 billion, yep, that’s with a “B”.

As stated in the earlier posts, some of the credit for stabilizing the market can be given to this tax credit and people taking advantage of it.  I guess we will have to see if it is enough to turn the economy around.  But, is it costing us too much in the long run?  Let’s hope we don’t have to wait to find that out . . .

The entire article is worth reading.

Home Prices Rising Slowly

A new report out shows that home prices are rising slowly again, but still below the market average from last year.  Overall, the Standard&Poor’s/Case-Shiller home price index is up 1.2% nationally.  However, home prices nationally are still 13% below last year.  This article makes a great point that once the Federal tax credit for first time buyers expires, if the unemployment rate continues to rise, and if this is a jobless recovery, will the market be able to sustain itself?

All of these factors may lead to increased foreclosures.  Read the full article.

Stay tuned for more.

Anyone have any thoughts?

Lending Up, Profits Down

As I’m sure most of you have heard, lenders have finally started letting some credit flow.  Lenders in the Greater Cincinnati/Northern Kentucky area increased their lending by about 3% last quarter, far ahead of the national lending average.

Banks also in this area had over $73 million worth of foreclosed property on their books.  So the refinancing rates appear to be helping out home owners and some first time buyers.  But it looks as if there is still a glut of property out there for the investor to pick up some really incredible deals.

The complete article is worth the read.

The New American Dream – Renting

The Wall Street Journal runs an article regarding the increase in rentals.  The forebodes well for the foreclosure investor.  With so many homeowners losing their homes, they still have to have somewhere to live.  Since mortgage loan requirements have tightened considerably, most of these individuals have to go back to renting.  Which means that homes or apartment complexes near schools, or multiple bedrooms are poised to increase, simply because families with children will need that extra space.  While they may not have been able to afford owning a home, they will go back to renting, where you don’t have to have a big downpayment, you don’t have to carry insurance if you choose not to, and credit checks are mostly minimal.

Now is a great time to flip a foreclosed home back to renters or invest in multi-family units.  Check out the WSJ article.

Foreclosure Filings Still on the Rise

RealtyTrac.com is still reporting a rise in foreclosures on the national level.  Even though there may be a faint light at the end of the tunnel, it is still very difficult to determine how far away that light really is at this point.  Nationally, Kentucky ranks 39th overall in the amount of foreclosures filed.  Still, with unemployment in some areas reaching almost 20%, it’s a wonder we are not higher.  It would be interesting to see how high Kentucky is, per capita . . .

Taylor, Bean & Whitaker Files for Bankruptcy

As an update to the last post where the state of Kentucky issued a cease and desist order, Taylor, Bean & Whitaker is now filing for bankruptcy.  The subprime lending crisis certainly extends to more than just houses and borrowers.  Companies have to keep in mind sound lending practices.  Keep in mind that when TBW comes out of bankruptcy, all of their foreclosures will have to start anew with potential more homes for the foreclosure investor.

Innovate or Die!

Business Lexington has a great article about making sure your company is innovating or face the threat of becoming obsolete.

There are two kinds of companies and organizations in today’s world: innovative and dead. If your organization isn’t characterized by imagination, speed, discovery and innovation, then you are likely on your way to becoming obsolete — you just don’t know it yet.”

With so many changes that technology can bring, you must adopt, adapt, innovate, and utilize new techniques to not only survive, but thrive.  What a lot of businesses don’t realize is that the CEO or other managers must be the visionary.  But they have to lead you staff and make sure that they buy into what new innovations you have.  In fact, many of your employees could be your best innovators.  If they have not bought into the new changes, you will never succeed.

Learning how to innovate and having an innovative culture starts with day one for a new employee.  Train into them from day one that they must look for ways to innovate, whether it is helping your customers or clients, to finding new ways and procedures for processing the work.

Innovate or Die!

The rest of the article is well worth the read.  Click here.

Map of Foreclosure Rate in Select Kentucky Counties

Here is a great map of the foreclosure rate in the surrounding counties:

Jefferson

Fayette

Hardin

Warren

Daviess

Central Kentucky Weathering Property Market Well

According to David O’Neill, Property Value Administrator for Fayette County, Central Kentucky is weathering the foreclosure crisis well and property values have not dropped significantly.  Central Kentucky has a little more diverse workforce, so when the economy duldrums hit other communities, it does not take such a big swing.  It also helps that the biggest manufacturer, Toyota, is still making cars, albeit, more slowly.  Can we ever imagine a time before Toyota?

Should we ask the question, what happens if Toyota hits the skids?  Might be another topic for another day.

But, back to home valuations in and around Fayette County, for the most part, they are down, but not significantly.  Mr. O’Neill also discusses how long homes are sitting on the market.  The average has not changed much, surprisingly.

The best year, 2006, homes were turning over in about 58 days.  2007, it was about 76 days on average for a home to sell.  2008, about 77 days, and in July, 2009 it was about 78 days on average.  That is a lot less than I was expecting.

But it also suggests to the investor that for the right price, location, and amenities, houses are still moving.

For the full article by David O’Neill, check it out here.

Subprime Foreclosures Slowing?

Signs suggest that the subprime foreclosure rate may be slowing down.  This may be a sign that while we are not in a recovery, the economy shows signs of leveling off.  The unemployment rate may also be slowing.  Which begs the question.  What kind of recovery will there be?

My guess is that this will be a jobless recovery.  We must make an effort to convert from an industrial based economy to an information based economy.  We are already setting up the infrastructure for this type of economy, however, it may be a house with no foundation since much of the basic work is being done overseas through cheap, almost free labor considering what some people are paid.

This could continue to widen the gap between people who have, and those who don’t.

Back to the subject at hand.  Subprime foreclosures seem to have leveled off for now.  Time will tell what happens, but keep in mind the subprime loan is a valuable vehicle for many individuals to get a loan and buy a house.  It is not a bad product.

The individuals who get greedy are what make the product untenable for many people.  Borrowers buy too big of a house, lenders want the high returns exotic loans bring, servicers add an extra layer, and the cycle goes on.  Everyone just needs to take a step back, focus on getting a reasonable rate of return, and only buy what you can afford.