NEW YORK (CNNMoney) — Foreclosure filings in April fell for the third straight month to the lowest level since July 2007.

Total foreclosure activity for April, including default notices, scheduled auctions and bank repossessions, was down 5% from March, according to RealtyTrac.

Bank repossessions declined significantly — there were 51,415 repossessions last month, down 26% from a year ago, and about half the 102,000 monthly repossessions at the peak in September 2010.

Much of the improvement, however, can be attributed to declines in only a handful of states, especially those that had been hardest hit by the housing crisis and which did not require judicial review of foreclosures.

In Arizona and Nevada, for example, bank repossessions were down roughly 70%. In California, they were more than 50% lower.

States that do require judicial review, however, are only now catching up to foreclosure filings that were put on hold in the wake of the robo-signing scandal in 2010.

The 26 states that require judicial review — including Florida, New Jersey and Illinois — continue to see increases in foreclosure activity.

Another factor RealtyTrac cited for the decline in foreclosures was a big increase in short sales, deals in which borrowers sell homes for less than what they owe on their mortgages.

“More distressed loans are being diverted into short sales rather than becoming completed foreclosures,” said Brandon Moore, RealtyTrac’s CEO.

Banks take a hit on short sales because they forgive the difference between proceeds from the sale and the mortgage balance. But short sales can cost banks less than foreclosures. In fact, several large mortgage lenders are paying out incentives to borrowers who complete a short sale.

On Wednesday, Bank of America (BAC, Fortune 500) said it would give some struggling homeowners payments of up to $30,000 if they sell their homes in short sales. Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) also have similar programs in place.

NEW YORK (CNNMoney) — Buying a home has reached its most affordable level in more than two decades.

Nearly 78% of homes sold during the first quarter were affordable to those earning the national median income of $65,000, according to a report released Thursday by the National Association of Home Builders and Wells Fargo.

The reason: Home prices nationwide are off about 36% from their peak. Median income has risen by about 10%. And mortgage rates are below 4%.

There is one catch for home buyers, however: Mortgage availability.

“Homes in this year’s first quarter were more affordable than they have been at any time in more than 20 years, yet many potential sales are not happening,” said Barry Rutenberg, NAHB’s chairman and a homebuilder in Gainesville, Fla. He said that’s mainly due to overly tight lending conditions.

“Without this significant hurdle, the housing and economic recovery could be proceeding at a much stronger pace,” he said.

Most and least affordable markets: Among large metro areas, Indianapolis was America’s most affordable housing market with 96% of all homes sold easily afforded by the typical family, according to the report.

Wages in Indianapolis are reasonably high with the median family income at $66,900, nearly $2,000 above the national median. Meanwhile, the median price for homes sold there during the first three months of 2012 was a mere $102,000.

Other major markets that topped the most affordable list included Dayton, Ohio, where 94% of homes sold were considered comfortably affordable; Lakeland, Fla., with a 93% affordability score and Modesto, Calif. at 93%.

Decidedly unaffordable was New York, where only 31% of homes sold were affordable to median income families, who earned $69,200. The median home price in the metro area was $400,000.

Other least affordable large markets included San Francisco (40%), Honolulu (48%), and Los Angeles (50%).

In smaller markets, Cumberland, Md. topped even Indianapolis with 99% of homes sold affordable to median income families in the area. Homes sold for a median of $80,000 there, with local families typically earning about $53,000.

The least affordable small market was Ocean City, N.J., with an index rating of 46% for families earning the median income of $71,100. Other expensive housing markets in this category included Santa Cruz, Calif., San Luis Obispo, Calif., Santa Barbara, Calif. and Laredo, Texas

By Les Christie @CNNMoney May 17, 2012

By Janeen J. Detrick

This article will attempt to de-mystify the land development process, so a novice in real estate development can get started as a Land Developer! Any time, even right now, begin building relationships with other real estate investors, or anybody that might have a 401 K or IRA that they would like to make more money on, or anyone that might have money or financial resources.
Consider using a Joint Venture Agreement, rather than establishing an LLC with that other partner, or have the two separate LLC’s do the joint venture together. Start looking for a financial partner right away!

I. First, let me plant the seed thought that one way to begin, even if you have very little money, is to identify a parcel of vacant land in the pathway of future development, and offer the owner a small option fee in exchange for giving you a long term option to purchase the land. Be sure you legally record a “Notice of Interest!”
To find land in the pathway of future development, you can go to your state’s Department of Transportation website , and see their long term plan. Also consider looking on your county’s planning and development website. It’s a great trick for knowing well in advance where new infrastructure, and therefore development, is headed! There is a saying in real estate, “Where infrastructure goes, property value grows!”

II. Second, it is important to keep in mind that you can approach your project in two different ways:
A. Find some great land, then decide what the highest and best use for that land would be, based on current zoning and potential zoning, then develop an idea of what to put on that parcel.
B. Have an idea of what you would like to develop, then proceed to find a piece of land on which that idea would work. (This is usually a more expensive, time consuming method!)
III. After you’ve found a site, investigate the possibilities!
A. Go to your local planning and development office at your city/county, and find out what the maximum density is for that piece of land.
B. What is it zoned? Can the zoning be changed? What is that process for changing zooming?
C. Site constraints? Keep the wetlands? Septic required? Engineered foundations required? Basements allowed? What are the street improvements required? What are off site requirements, like new streetlights? A new intersection near by? A turn lane? Landscape requirements? Open space requirements? Drainage requirements? In short, go there, and ask questions! NOTE: You will be consulting with this department throughout the process! Be friends with these people! They are in charge of helping you get the regulatory approvals you need!
D. At this point, tie the land up with a contract! You don’t want to spend a lot of time doing investigations, only to find that someone else came along first and made an offer! Leave the contract “open”, meaning that you can still get out of it and get your money back, during your investigatory time period. You will need a minimum of 30 days, but 60 to 90 is better!
IV. After you’ve matched the development idea with the land, do a preliminary market feasibility study, to see if you could sell the product in that location for a profit!
A. What will be compatible with the surrounding neighborhoods? For the density you desire (Highest density possible isn’t always the best option, If market conditions won’t support it!)
B. Consult a real estate professional, and find out what the vacancy rates are in the area, and the absorbsion rate, so you can project how quickly a project like this would sell out.
C. Project how much you think the project will sell for, at retail, and subtract the marketing costs for hiring an excellent real estate agent to market the project!
V. At this point, before you get too far in the project, visit a commercial banker and discuss the feasibility of getting financed!
A. Get a list of project subcontractors that the financial institution recommends!
B. Who are the project subcontractors that you will need? Land Designer/Planner, Urban Planner, Architect, Landscape Architect, Civil Engineering Firm, and that real estate professional! The banker may be able to recommend one company that does it all, called a “Land Development Engineering Firm”.
VI. Begin collecting estimates from each entity regarding projected development costs. This insures that the project will be profitable, before you even put money down! Be aware, however, that these development contractors rarely give free estimates, so you will have to prepare to pay them for their time.
VII. If the project makes financial and market feasibility sense, secure financing!
A. With that commercial banker
B. And then secure the contract, according to the price that you need to buy it at in order for the project to make sense.
VIII. Complete the site analysis, environmental impact, master plan design, engineering plans, and specifications.
IX. Obtain final regulatory approvals! This will involve attendance at local planning and development meetings, and will also have previously involved neighborhood notices, meetings and approvals. Be friendly! Care what the neighbors want, so you don’t get a lot of resistance! There will always be some people who we refer to as “NIMBYS”; Not In My Back Yard!
X. Start Marketing! Your state may require that the subdivision be registered with the local real estate division; Find out! Because if you start marketing before it is registered, and your state does require that it be registered, they will SHUT YOU DOWN! Also, remember; You can sell the project at any point during this process!

Isn’t this FUN?????????

NEW YORK (CNNMoney) — Sales of investment properties and vacation homes soared last year as investors snapped up homes that were selling at beaten down prices.

Homes purchased by investors skyrocketed 64.5% to 1.23 million in 2011, up from 749,000 the year before, according to the National Association of Realtors.

Vacation home buyers also came out in larger numbers, with sales climbing 7% year-over-year to 502,000. Meanwhile, sales to ordinary home buyers, who plan on living in the home full-time, fell 15.5% to 2.78 million, NAR said.

“Investors have been swooping into the market to take advantage of bargain home prices,” said Lawrence Yun, NAR’s chief economist. “Rising rental income easily beat cash sitting in banks.”

Many investors were on a shopping spree, with 41% of buyers picking up more than one property during the year, compared with 34% in 2010, according to NAR. The median number of properties they bought rose to three from two during that time.
Buying much cheaper than renting

And almost half of all investors paid for the properties with cash. Even buyers who secured a mortgage to finance the purchase offered hefty down payments. The median down payment for both investment and vacation-home buyers was 27%.

“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” said Yun.

Foreclosures have helped fuel the second-home sales surge. Half of the investment purchases made last year were distressed sales, either foreclosures or short sales, as were 39% of vacation home purchases.

According to NAR, the median home price for investment properties was $100,000, a bargain compared to 2005 when the median investment property sold for $150,000. Meanwhile, the median vacation home sold for $121,300, down 19% from 2010 and a significant decline from the median price of $200,000 six years earlier.

Most investors said they intend to hang on to the properties instead of flipping them for a quick profit. The typical investor said they plan to hold the home for 5 years, with half of them reporting that they purchased the property mainly to generate rental income.

In nearly every market in the nation right now, buying is more affordable than renting. Continued tight mortgage financing, however, makes it difficult for some buyers with less than stellar credit history to buy homes.

For real estate investors, that means a steady supply of bargain properties — and potential renters. To top of page

By Les Christie @CNNMoney March 29, 2012: 1:49 PM ET

NEW YORK (CNNMoney) — Bank of America has announced a program that will let homeowners facing foreclosures stay in their homes as renters.

The “Mortgage to Lease” program will start as a limited pilot program for up to 1,000 homeowners in Arizona, Nevada and New York selected by the bank.

The bank said if the effort succeeds, it could be expanded to the broader group of at-risk homeowners with BofA mortgages. Homeowners can not apply to be part of the program at this time. (Buying is cheaper than renting)

Those selected for this initial pilot program will be more than 60 days delinquent on their home loans, have high loan balances in relation to their current property value, have no other liens on their property, and have an income level high enough to afford the rent.

The homeowner will transfer title to their properties to the bank and have their outstanding mortgage debt forgiven. In exchange, they may lease their home for up to three years at or below the current market rental rate.

While Bank of America (BAC, Fortune 500) will retain ownership of the properties at first, homes in the pilot program will be transitioned to investor ownership. The bank will work with property management companies to oversee the rental properties.

“Our priority is designing a solution that helps our customer,” said Ron Sturzenegger, an executive with the bank, in a statement. “If this evolves from a pilot into a more broadly based program, we also see potential benefits from helping to stabilize housing prices in the surrounding community and curtail neighborhood blight by keeping a portion of distressed properties off the market.”

Bank of America is one of five major banks to participate in a $26 billion foreclosure deal with federal authorities and state attorneys general to settle charges over improper foreclosure actions.

The deal is supposed to lead to billions of dollars in principal reductions and refinancing for more than a million homeowners who owe more than their homes are worth. But critics of the deal say a growing number of borrowers are realizing that the deal will do little, if anything, to help them.

There are nearly 200,000 homes in Arizona, Nevada and New York for which the homeowner is 60 days or more delinquent on their home loans, according to figures from the Mortgage Bankers Association. That figure includes all lenders, not just Bank of America. It does not include homes in those states that are already in the foreclosure process.

Probate:

In investing in Real Estate we realize that we take on liability. It is smart to use the right legal tools to protect our personal assets from liability issues. More people unfortunately are more sue happy if they feel they can benefit from it. We discussed today the benefits of putting property that is owned in trusts or the more proper term is a land trust. Land trusts allow us to not be as vulnerable to the public seeing what we own. We discussed several reasons for titling property in land trusts.

Privacy:

Anyone with an internet connection can potentially look at public records at the county. By putting properties in different trust names keeps your ownership private.

Protection from liens:

When others want to attach a lien to an individual property it is easy to do unless the property is title in a trust.

Discouraging Litigation:

Some people tend to sue those that appear to have money. Attorneys are likely to take cases of those that are an easy target. By placing property in a land trusts attorneys are more likely to move to an easier target since it is not public knowledge on who owns the property.

Making Loans “Assumable”:

The seller transfers title into a land trust, with himself as beneficiary. After the fact, he transfers his beneficial interest to you. This does not come to the attention of the lender because it is not recorded anywhere in public records.

Summary:

The use of land trusts allow us to have more privacy and to use creativity to keep law suits at bay.