40 Month Low in Foreclosures

RealtyTrac released U.S. Foreclosure Market Report for April 2011, which shows foreclosure filings, default notices, scheduled and bank repossessions — were reported on 219,258 U.S. properties in April, a 9 percent decrease from March and a 34 percent decrease from April 2010.

“Foreclosure activity decreased on an annual basis for the seventh straight month in April, bringing foreclosure activity to a 40-month low,” said James J. Saccacio, chief executive officer of RealtyTrac. “This slowdown continues to be largely the result of massive delays in processing foreclosures rather than the result of a housing recovery that is lifting people out of foreclosure.”

There is still a staggering amount of foreclosures in the pipeline that still need to move into the market. A portion of the decrease is due to banks not pushing the foreclosure process, but instead allowing time for loan modification and short sales.

To find out more information about foreclosures in your area, click here.

Month in Review of the Texas Economy - April

Recent report, “Month in Review of the Texas Economy” shows that Texas is outperforming the rest of the nation in job creation in all sectors from March 2010 to March 2011, except finance.

The largest contributor to private sector jobs is the mining/logging sector which as added 15.4% more jobs to the Texas economy. With this in mind the Midland – Odessa area is out pacing the rest of the state with 6% job growth, compared to Austin which is a 1.8%.

All good news for the Texas economy. To find out more about your neighborhood, click here.

Is Your Tax Appraisal a Fair Assessment?

Values may have dropped 10% or more in some MLS areas, even though recent data from the Austin Board of Realtors saw and overall home price increase of 1.6%.

Market value is different from taxed-assessed value. The county values your home according to the area, not the house. Hence, the value may be too high or too low, depending on size, location& amenities.

How can you determine your market value? Contact a realtor or contact a company that specializes in valuation protests.

You should already have your valuation in the mail, most receive on or before May 1st. You have till May 31st ( or 30 days from the date of valuation) to appeal.

How do you appeal? File a protest and a hearing will be scheduled.

At the hearing be prepared to present your evidence: comparables, document home condition, document home location, recently purchased homes.

Something to keep in mind at protest; the appraisal district does not set the tax rates, be polite & courteous, bring extra copies of your documentation.

Mortgage Foreclosures: Documentation Problems

Based on a report from the GAO, more regulatory action is coming. The report highlights a lack of consistency among mortgage servicing companies and how they handle their documentation in the foreclosure process. The Federal government has little statutory impact, most foreclosure laws are on a state level. To read more, click here. To search for foreclosures in your area click here.

Reoccuring Question from First Time Home Buyers

Many first time home buyers contact me and seem to ask the same question, "should I buy or keep renting", and this, in part, what I tell them.

Finances is just one part of the equation. But the first question you should ask yourself is why did you begin to consider purchasing a home? According to a Fannie Mae National Housing Survey, the 4 biggest reasons people purchase a home has nothing to do with money, which are (1) place to raise/educate their children, (2) a place to feel safe, (3) plenty of living space, (4) control over the space. In my opinion the cost of a home will probably remain relatively unchanged even if prices continue to depreciate. Money is a factor in the home purchase, but not the only one.

If you would like to view homes in your area, click here.

Austin Statistics: A Year in Review

In reviewing the prior year, it tells me the Austin market is strong.

In the past few months, we've seen a consistent increase in list price & sales price. In addition, we are seeing an increase in opportunity at the 300K and above. Indicating that homeowners who have the ability to move up and right now, have the opportunity to move in to a great new home and current lows. To find out more about your neighborhood, click here.

Changes to Texas Property Tax Code

As a Texas property owner, you are aware that in October you receive a bill for your yearly property taxes. What you may not know, is we are in the 1st stage of a seasonal process that runs in four basic phases. From the first of the year to May 31st, appraisal districts appraise the properties in their districts, give notice to property owners and receive protests, primarily from the owners who think their properties are overvalued.

The 81st Legislator added language to the property tax code, foreclosures are now included in the appraisal valuation.

See page excerpt of Property Tax Code: 123, Section 23.011

Text of subsec. (c), as added by Acts 2009, 81st Leg., ch. 619, § 1
(c) Notwithstanding Section 1.04(7)(C), in determining the market value of a residence homestead, the chief appraiser may not exclude from consideration the value of other residential property that is in the same neighborhood as the residence homestead being appraised and would otherwise be considered in appraising the residence homestead because the other residential property:

(1) was sold at a foreclosure sale conducted in any of the three years preceding the tax year in which the residence homestead is being appraised and was comparable at the time of sale based on relevant characteristics with other residence homesteads in the same neighborhood; or

(2) has a market value that has declined because of a declining economy.

This may or may not have an impact on your property valuation. If your neighborhood has been affected by a number of foreclosures, this may impact the appraised value of your home. If you want to find out more about homes in your neighborhood, you can search here.