After four years of the foreclosure crisis, though, some are criticizing the practice and claiming it promises much but delivers on little in the way of keeping home foreclosures off of the auction block. In theory, the practice sounds terrific; if the homeowner and the lender can reach a deal, such as a principal write-down, loan extension, balance forgiveness, or interest rate reduction, then it sounds likely that a foreclosure can be prevented.

Indeed, this has actually happened quite a bit. In Connecticut, for example, approximately 79% of participants who engaged in its foreclosure mediation program either avoided foreclosure or received a loan modification. Nevada has reported an 89% success rate; the city of Philadelphia claims an 84% rate.

Of course, there are problems with the theory and the practice. One of the main issues is the voluntary nature of many programs. In several states, the practice is optional; in these states, the success rate is far lower than in the states listed above. Homeowners may want their lenders to participate, but unless the lender chooses to join in, there is little the homeowner can do to change its mind.

Furthermore, there have been many complaints from homeowners that lenders, even if they participate, do so reluctantly and only do what is expected of them legally in order to complete the process. This results in fewer successful modifications.

Still, support is there for foreclosure mediation, and statistics lend credence to the notion that foreclosure mediation is recommended to avoid foreclosure houses entering the market as frequently as they have been over the past three years. The federal government still believes foreclosure mediation is a key component of any housing recovery, and for the time being at least remains committed to its plans to support mediation programs across the nation.

Ultimately, the result of any mediation may not be seen until the summer or fall of 2012. Until statistics reveal anything significant one way or the other, foreclosure properties will continue – even if some of them will be saved at the mediator’s table.

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1. Think long term – Mortgage is a long term commitment. Usually most of the fixed rate mortgage loans require you to amortize the value over 30 years. The maximum you can come down to is 15 years which is also quite long. Also, if you pay off your mortgage before a certain period of time, you have to pay a certain extra amount as pre payment penalty. Thus you don’t need to pay off your mortgage loan as fast as possible, like credit cards. You need to maintain a regular payments history for a long time. this requires you to have a correct attitude for a long term.

2. Pay back other loans fast – Your mortgage is a secured loan. This means it has collateral, which is your house. Your house acts as a guarantee for your mortgage and if you are unable to make your mortgage payments then your house will go into foreclosure and be sold off the collect the value back. Hence your property will be gone along with all the payments you have made till then. Thus it is very important to keep up with your mortgage payments. It is better that you pay back your unsecured debts as fast as possible. This is because if you incur any problems over the term of your mortgage, you can still make the payments if your other loans are not there.

Apart from the above two, you should also get mortgage payment protection insurance. Mortgage payment protection insurance provides you cover in case you are unable to work for sometime due to illness or face a job loss. This is especially applicable if you are self employed or your employer doesn’t compensate you in case you take prolonged leave due to redundancy.

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Want to start a business in New York or Washington, D.C.? Now is the time according to foreign investors, who are leading the way and pouring billions into the commercial market.

Anyone looking to invest in foreclosure properties should look into the commercial real estate industry, which is actually flourishing despite the rocky economy. As the Dow Jones continues its recent roller-coaster ride, investors are snatching up commercial real estate properties left and right – especially in gateway cities.

All eyes are on the development of businesses in New York City and Washington, D.C., which have experienced an increase in commercial real estate investments. Although U.S. consumers have wavering confidence in the nation’s economy, leaving many investors wary of purchasing commercial real estate properties, foreign investors are stepping forward with a plethora of confidence – and the cash to back it up.

Although there are some U.S. commercial real estate investors that are contributing to the stability, the majority of commercial real estate transactions are actually from foreign investors. China, one of the heavy hitters in New York commercial real estate investments, invested over $ 1 billion in commercial loans in the last year.

But why is China investing? Obviously they have a stake in the United States’ financial security since they are the backers for many U.S. loans. Furthermore, the Chinese government drastically wishes to increase its foreign affairs and opening more businesses in the U.S. is one way the country is seeking to fulfill this mission. Either way, China is definitely expanding onto U.S. soil and is snapping up commercial properties across the country, primarily in New York.

In the end, stabilization is occurring in the commercial real estate market despite the high unemployment rate and lower consumer confidence. Foreign investors are snatching up the inexpensive properties to increase their international presence – and lock in phenomenal profits – with China taking the lead.

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Celebrities have been making bank in this real estate market. We’ve lost track of the number of high-end, super-luxury homes that have been bought and sold by well-heeled celebs, debutantes, and superstars in the world’s most posh localesTwo celebrities may be bucking that trend, though.

Sources indicate that Hank Azaria – the golden-voiced, Emmy-winning actor who has been a mainstay of The Simpsons since 1989 and has appeared in The Birdcage, Mystery Men, Night at the Museum: Battle of the Smithsonian, and most recently The Smurfs – downgraded his Hollywood homestead. Azaria bought an extremely nice 8,400 sq. ft., seven bedroom, ten-bath mansion in Bel-Air for the purported price of $ 10,000,000.

He must have thought that all that upscale, well-to-do living space was a bit unnecessary for him, his partner, and their two-year-old son, because he just bought a much smaller home in Pacific Palisades for $ 5,500,000.

The new home is nice in its own right – it features 4,400 sq. ft, four bedrooms, 3.5 baths, a swank poker room, and the professional stylings of Trip Haenisch – but it’s no Bel-Air estate. Why the downgrade? We’re not sure, but living in a ten million-dollar home has to get expensive – and while Azaria probably isn’t hurting for money, he probably isn’t super-rich either.

Azaria isn’t only one in celebrity world experiencing some possible real estate blues. Former Dallas Cowboy standout cornerback/sports icon Deion Sanders – recently inducted into the Pro Football Hall of Fame – just took his massive north Texas mansion off the market, where it’s been since 2009.

When we say massive, we mean it. The “home” (i.e. palace) is a whopping 29,000 sq. ft. and has its own county, basically, with 109 acres of land. “Neon Deion” decked it out with tennis and basketball courts, two pools, a bowling alley (which is a virtual requirement with these super-homes, we’ve found), a football field (naturally) and his very own star-studded trophy and memorabilia gallery.

He was originally asking $ 21,000,000 for the home, but apparently there haven’t been any buyers. Not that we can blame anyone; a home that expensive needs a more upscale zip code than the 75078 number that belongs to small-town Prosper, Texas. Is there trouble in paradise for these two celebs? Maybe, maybe not. We’re not super-rich and famous, so our perspective might be a bit incomplete. But, in this age of buy-buy-buy, not being able to sell a home or downsizing to a smaller, less-posh estate is certainly unusual enough to ask.

[Photos of actor Hank Azaria's new home; images courtesy of RealEstalker]

[Listed home of NFL player Deion Sanders; image courtesy of Curbed]

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The title of the downgrade statement issued by S&P is very revealing: “United States of America Long-Term Rating Lowered To ‘AA+’ On Political Risks and Rising…
National Commercial Real Estate News From CoStar Group

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When most celebrities, especially ones that are very well known in the pop culture, place their homes on the market buyers immediately flock to the property. Why? Ties to fame go a long way, especially when it comes to real estate!

It is a given if you have been keeping up with real estate transactions over the last year that a tie to fame can definitely help a property sale quicker. Imagine living in the former home of your favorite pop star or actress—creating memories in the exact same place they once lived!

However, even with Britney Spears’ tie to Penthouse 1109 the current owner is having issues finding a buyer, but the new (and lower!) asking price may do the trick!

Ms. Spears herself put her home on the market in 2004 and had to significantly drop the price multiple times before it finally sold in 2006. It seems the property’s curse lingers regardless of the seller as the current owner placed the property on the market for over $ 6.5 million in 2008 without any signs of hope. When the property last went off the market the asking price had dropped substantially to just under $ 5 million.

Now, the current homeowner is singing "I Wanna Go" as it places the penthouse back on the market for $ 4.895. This could be a great investment opportunity for a Spears fan or for investors seeking to utilize the buyers’ market to their advantage!

There is a high likelihood that a serious buyer could get this property for around $ 4.5 million with the property’s recent moves on and off the market with decreasing listing price. Investor? Spears fan? Here is your opportunity to strike while the market is hot!

(Image source: StreetEasy)

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Credit rating agency S&P made international news Friday when it downgraded its assessment of the United States’ sovereign debt rating, lowering it one notch from AAA – the best rating – to AA+.

Today, it struck again, downgrading the debt rating held by government-sponsored entities Fannie Mae and Freddie Mac.

The agencies previously held a top rating of AAA, like the United States. Now, their rating stands at AA+ – still very high, but significantly lower than the rating it has carried for decades. As a result, questions have arisen regarding the cost of the move and the impact it will have on the market as a whole.

One big fear with real estate investors is that the price of mortgage loans will increase, because they are tied into the federal interest rate. Since it theoretically costs more to borrow money with a lower credit rating – theoretically because this scenario has never been put into practice until now – mortgage loans and the debt secured by them could also become more expensive.

The costs would more than likely be passed down to investors – if the above situation actually happens.

The market fell drastically when it opened trading today, going well below 300 points in the red and being on track for even larger gains as of 11am ET. But, Treasury yield rates – which would theoretically rise – actually fell, showing signs that the downgrade will not be as serious as some might think.

It is very likely that this move will not have a significant impact on the real estate market as it stands today. Everyday real estate investors and homebuyers probably will not see a noticeable rise in the cost of buying a home – and certainly not enough to make someone ready to buy a home change their mind.

Moves in the high-level credit realm usually take weeks to months to play out and trickle down to investors. Someone applying for a home loan today more than likely would not pay more than someone who applied for a home loan Thursday, before the credit downgrade occurred.

The takeaway is that investors who were going to buy last week should still buy and take advantage of terrific opportunities in the real estate market. Interest rates will likely remain low for quite some time, and the abundance of properties sitting vacant on streets all across America means time is still ripe for real estate investment.

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