Hedge funds leaving
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Thank god that trend is going away . It’s been impossible to find deals when those big boys are in there buying without regard to comps. They don’t have to worry about appraisals  since they are paying cash. We as investors have to be concerned about what the house will appraise for when we sell it. So, it’s been a problem.

Current homeowners are playing a bigger role as housing market participants amid a sharp slowdown in investor activity, according to data from theCampbell/Inside Mortgage Finance HousingPulse Trackingsurvey.

Among three buyer types-current homeowner, first-time homebuyer, and investor-the survey showed current homeowners were the only group to see activity rise in June.

Last month, current homeowners represented 44.6 percent of the purchase market, up from 43.8  p eent in May based on a three-month moving average.

At the same time, the share for first-time homebuyers fell to 35.7 percent from 36 percent month-over-month.

Even more notable was the decrease in investor purchases. As rising home prices discourage investors,  home purchases from investors slipped to 19.7 percent, down significantly from 23.1 percent from February. The percentage also represents the lowest level since September 2012.

Falling in line with the decrease in investor activity was a drop in the supply of distressed properties.

According to HousingPulse, the share of foreclosure or short sales transactions plummeted year-over-year, falling to 28.2 percent from 40.3 percent in June 2012. The percentage represents the lowest level in at least three and half years.

The HousingPulse survey also revealed investor traffic decreased for the fourth straight month in June.

Agents across the United States also offered insight into investor activity, with one Arizona agent stating, “Investors have left our market with rising house prices,”

In California, one agent reported, “Values have increased by 20% since January and investors are backing away.”

The survey includes about 2,000 real estate agents nationwide.

Current homeowners are playing a bigger role as housing market participants amid a sharp slowdown in investor activity, according to data from theCampbell/Inside Mortgage Finance HousingPulse Trackingsurvey.

The survey includes about 2,000 real estate agents nationwide.


Banks say they are fulfilling terms -yeah-right
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Under terms of a settlement with Banks and NY attorney general, Banks are supposed to do more to help homeowners.

They are are actually doing not too much in principal reduction which was supposed to be the main benefit. They are leaning heavily towards short sales and write downs of 2nds. Big deal- 2nds will go away in foreclosure anyhow.

Wells ( the worst in my opinion)uses almost short sales exclusively. Chase discounts 2nds, Citi does more 2nd mortgage discounts and short sales than write downs of first mortgages.

The banks are not abiding by the other rules of the game and the NY attorney general plans to go to court to force them.

We have heard stories of banks still going to sale while loan modifications were taking place- a no-no under the new laws.

Is anyone surprised?

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Many homeowners are less underwater
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House in water
The federal reserve states that home equity has jumped nearly 500 billion during the last 3 months of 2012.

That means that less folks are underwater so now they can sell if they choose. This will help to cure the severe housing inventory situation. Zillow Real Estate Research says that nearly 2 million home owners no longer are upside down.

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Another foreclosure abuse settlement in the works
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This one is different than the last one because the money all goes to homeowners who got the shaft from the banks. Some of the states had used the money earmarked for homeowners to for their treasuries. Not nice!!

Read more on Another foreclosure abuse settlement in the works…

FHA is broke
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Because they insured the banks against loss if the loans went bad, they had to pay off a lot of money. Like any insurance company, if you have to pay out more than you collected in insurance premiums, you are in trouble.

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