Missed a Payment?
by Osman Parvez Maybe we should stick with the foreclosure topic, given how many people worried about foreclosure. Here's some good advice. In Forbes magazine, "Nightmare on Elm Street," Carrie Coolidge writes, While the statistics are frightening, there are alternatives worth exploring if you find yourself in the unwanted position of facing a foreclosure on your home. Indeed, if you have missed a mortgage payment, don’t wait for your lender to contact you. Rather, call your lender to let them know about your situation and ask for advice. Many lenders, including Washington Mutual (nyse: WM - news - people ), [...]
Facing Foreclosure
by Osman Parvez I gave a talk at my Rotary Club the other day on the housing bubble and its impacts on Boulder Real Estate. One key concern: the increasing flood of foreclosures. If you've been reading this blog, you already know that Boulder County has been fairing well compared to our neighbors. We have less than 500 single family homes in foreclosure and the trend has been flat. Yet the state of Colorado is the worst in the country for foreclosures and since the 4th quarter of 2004, we've seen foreclosures and delinquencies rise 75%. With the volume of [...]
Can You Put Off the Pain?
by Osman Parvez I've never been a fan of Adjustable Rate, Interest Only, or Negative Amortization loans. In recent years, these loans have appealed to buyers driven by monthly payments. Oh, I know they can work well for those who plan to hold the property for a short period, among other reasons, but many didn't understand how their loan would behave over time or the risks involved. Now, the first big wave of mortgage resets (the date when the interest rate "adjusts" to market) is starting to impact the market, no doubt contributing to Colorado's foreclosure epidemic. Well, it looks [...]
What Silver Lining?
by Osman Parvez For the last few months, I've noticed an uptick in the number and size of commercial property deals in our region. Interlocken is again hot. Longmont is attracting a number of new companies. Denver is frequently announcing new projects underway and large commercial property deals. A quick glance in downtown Boulder now yields a surprising number of cranes (and more are on the way). As I've mentioned before, rising interest rates and tougher lending standards (including a move against piggyback mortgages) are all signs of credit tightening, which should push potential buyers into renting. Sure enough, residential [...]
Recent Links
by Osman Parvez It's been awhile since I posted links. Here are a few recent real estate and development related stories that are worth checking out (some articles may require registration). Bad luck be damned, 29th Street's Grand Opening is Friday, October 13th. The Wild Oats store won't be ready but 88% of the mall is leased, according to developers. Louisville is moving closer to creating an urban renewal area along CO42, with the planning commission voting 5-1 to move the proposal forward. The future Fasttracks stop located in the same area is helping provide momentum. Noodles and Company have [...]
Piggybacks and Foreclosures in Longmont
by Osman Parvez Boulder County is fairing very well amid a gusher of foreclosures in Colorado, but as credit is further tightened by rising interest rates and more stringent lending practices, there will be continuing impact to the local real estate market. As I've reported previously, Longmont has the largest number of foreclosures in Boulder County. As of today, 372 properties in Longmont are in some state of foreclosure. The majority of these are at the low end of the market, most for homes valued below $250,000 and many below $200,000. This section of the market was also the most [...]
Economic Growth AND Rising Foreclosures?
by Osman Parvez Scratching your head about the foreclosure situation in Colorado? How is it that a state with such low unemployment, strong growth, and reasonable cost of living also has one of the highest foreclosure rates in the nation? Rob Reuteman, business editor of the Rocky Mountain News gets it right with an editorial from this weekend. The situation is driven by a proliferation of dodgy mortgages and unreputable lenders. Although pending legislation may soon create much needed changes, Colorado is currently one of only two states that doesn't regulate mortgage brokers (Alaska is the other). It's also on [...]
Denver and Boulder Foreclosures
by Osman Parvez Denver and Boulder Foreclosures. There's a new piece from the Rocky Mountain News proclaiming an increase in foreclosures in 2005. The headlines scream, "Foreclosure Fatigue, '05 worst in 15 years!" It sounds like the housing market is collapsing, doesn't it? Well the sky isn't exactly falling here in the Denver/Boulder region. Read behind the attention getting headlines. What do you find? The number of foreclosures isn't adjusted for the base of homes. In other words, it doesn't take into account the greater number of homes (and homeowners) that exist today than in previous years. Buried in the [...]
Home Ownership in Denver Increases
by Osman Parvez Home Ownership in Denver Increases. According to a study cited by this article, as of 2004, 71 percent of metro Denver households owned their own homes, compared with 66 percent in 1995 while the annual average metro Denver mortgage dollar volume rose to $10.6 billion from $4.2 billion, a whopping 155 percent, between 1992-94, the first period studied, and 1999-2002, the last period studied. Interestingly, this mostly "good news" article ignores the white elephant of risky mortgage products coupled with risky borrowers. Given the large percentage increase in subprime lending in Colorado, it comes as no surprise [...]
Foreclosures Drop by 29% in Colorado
by Osman Parvez The state reported 2,568 properties entering some stage of foreclosure, one for every 713 households. This represents 2x the national average, however the state's foreclosure rate dropped from first place to fifth place among all of the states in October. Meanwhile, nationwide foreclosures in October were up 19%. Here's the press release. --- Like this analysis? Subscribe to my research. Ready to buy or sell? Click HERE to schedule an appointment or call 303.746.6896. As always, your referrals are deeply appreciated. The ideas and strategies described in this blog are the [...]
Up in ARMS
by Osman Parvez This article is another warning for those that are thinking about using I/O or ARM mortgage products to purchase a home that may lay just beyond their financial reach, using conventional fixed rate mortgages. I don't want to see anybody lose their home, but investors should read between the lines. The number of opportunities for investment will increase as interest rates rise. We've already come across several new/repriced listings in recent weeks that appear to be significantly under priced to their comps as seller's attempt to exit quickly to avoid a pending bankruptcy/foreclosure scenario. --- Like this [...]
