More than 14 percent — one in seven — borrowers with mortgages greater than $1 million have stopped paying them. Slightly more than 8 percent of mortgages of less than $1 million are delinquent, according to real estate analytics firm CoreLogic.

“The rich are different: They are more ruthless,” says Sam Khater, CoreLogic’s senior economist.

CoreLogic points out that the wealthy don’t seem to be particularly worried about the concerns of lesser earners like being sued by their lender or prevented from getting a mortgage in the future.

Source: The New York Times, David Streitfeld (07/08/2010)

Almost daily the news is talking about foreclosures and their impact on the economy. Foreclosed homes are those that the bank has taken back from the buyer because they are unable to pay their mortgage. The media talks in generalizations because they have to appeal the masses but how big of an issue are foreclosures [...]

listed by R.D. Rankin Today’s foreclosure is in Marina Bay Park which is located in South Shore Harbour. The property is built in 2005, has a jetted tub with separate shower in the master bath, two stories ceilings in the living room and granite counter tops in the Kitchen.  The appraisal district shows the home [...]

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Today’s foreclosure is at Endeavour high rise a waterfront condo development on Clear Lake.  The developer reportedly went into bankruptcy but this is a unit that was previously purchased from the developer. The property has two bedrooms, two baths and over 1,200 square feet.  The condo is on the tax rolls for $362,000 and was listed today for $245,019.  Waterfront condo’s rarely come on the market at this price and this is the lowest priced condo listed at Endeavour since it was built. Call me today if you would like to view this property (281.450.8689).

Click here to view the MLS listing.

Listed by Prudential Gary Greene Realtors

2238 Marina Way proves that the recession is affecting every price range including luxury homes. This property is stunning, waterfront and has amazing views of Clear Lake. The 3 bedrooms 4 bath home has three levels with two massive balconies overlooking the pool and spa. Every room has amazing custom details and finishes. This property sold for well over $1,000,000 in 2006 is now on the market for $873,000.  Our market is providing outstanding opportunities for buyers to purchase waterfront homes at deeply discounted prices. To schedule a showing or to sign up to be e-mailed immediately once new foreclosures come on the market, click here.

View the Har MLS Listing Click Here

Broker:Gulf Coast Realtors

203 Blue Water is this weeks foreclosure. Blue Water is a new street located within Marina Del Sol on a man made deep water canal in League City. The gated street has been very popular new development and attracted popular Bay Area custom builders.  This property built by Dan Wallrath has been drastically reduced, listed as high as $925,000 the home is currently offered at $724,900.  The Mediterranean style home has four bedrooms, four bathrooms and a half bath. Located on the canal with a slight view of Clear Lake.  Built in 2007 this home looks to be never lived in since it was built and could be yours for a 20% discount. To view this property or other waterfront homes contact Jeff Bulman at 281.450.8689.

MLS Listing

Listed by Prudential Gary Greene

This is short video about the many new so called real estate agent “Foreclosure Specialist” out there. I don’t normally post humorous items but this speaks directly to a real problem we have. The listing agent gate keepers for bank owned foreclosures are not your typical extrovert agent who is eager to help. Some are great but the vast majority of them are demanding, rude and their rules change as the wind blows. They don’t need buyers agents or buyers for that matter because banks typically price their homes so far below market they know no matter how bad or rude they are it will sell. And if you don’t play by the rules (most unwritten) your offer will not get submitted. Just another reason why it so important to have an experienced buyers agent when your looking for a foreclosure.

2107 Laughing Gull is a foreclosure located in Brittany Lakes a subdivision in League City.  Brittany Lakes is located off League City Parkway close to I-45.  This four bedroom two and a half bath home has laminate wood flooring and a fireplace. Homes is Brittany Lakes range from $150’s to over $300. This property is priced well below the average price per square foot for Brittany Lakes at $179,000. If you would like to view this home contact me.

Its Foreclosure Monday… This 5 Bedroom 4 and a 1/2 bath two story home is offered at $429,300. The home is located in Friendswood Oaks a subdivision off of Bay Area Blvd in Friendswood.  Homes in Friendswood Oaks are priced  from the $300’s to $500’s. The subdivision is unique because the developer kept many of the trees when developing the subdivision and it offers large lots.

Tax Records show the home was built by Newmark one of three builders in Friendswood Oaks. The home is over 5,000 square feet and has a three car garage.  I highlighted this home to show that not all “foreclosures” are deals. This property was reduced down by the owner to [...]

This 4,911 square foot 5 bedroom 4 bath Dan Wallrath Custom home is a bank foreclosure located in  the gated section of Tuscan Lakes in League City. The property listed at high as $925,000 is now being offered for $615,000. Never lived the home has been on the market since August of 2007.  The Galveston County Appraisal District gave the home a market value of $708,800.  If you would like to find out more about the property

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Every Monday I will be posting a foreclosure that peaked my interest as a possible good value or that is unique.  Here is our first property for Foreclosure Monday.

714 Hidden Woods is located in The Forest of Friendswood a very popular subdivision located off of 2351 in Friendswood.  The property is priced well below the tax value ($379,760)  at $330,900.

Bedrooms – 5 Bedroom  | Bathrooms – 3 & 1/2 | 4,396 Sq. Ft. | Lot Size 12,866.

To view all of the details click here.

To schedule an appointment to view this property or any other click here.

In my opinion one of the biggest problems with our credit crunch and high foreclosure rate is bank reliance on FICO scores.  FICO scores do a good job of reporting an individuals past history of repayment of debt. The biggest problem is the scores do not forecast in my opinion the current position of the borrower. To read from Fair Isaac what goes into your FICO score click here. FICO scores miss two important things when considering giving someone a loan, assets and income.  Most people credit reports have misinformation that can help or hurt them. You could have two borrowers one with $200,000 in assets making $100,000 a year with a 560 fico score and one borrower with a 800 fico score that has  -0- assets and making $30,000 a year.

A year ago the buyer with a the 800 fico score was able to get a loan for $500,000 with no asset or income verification and in most cases with nothing down.  This happened frequently which is why we are so many foreclosures in the high price ranges. The rate of commercial foreclosures is at an all time low. Why? Because commercial banks looks the entire position of their customer. They look at each loan & property individually and not just a credit score. Commercial lenders always look at the market area of the property, not just when the economy is in a down turn. Looking at the individual property and borrower more carefully will help banks avoid foreclosure in the future.

For the most part the League City area has been spared from the flurry of foreclosures that we read about daily. We do have foreclosures but they amount to less than 1% of the properties on the market. Its even more rare for two waterfront homes in popular communities to be in foreclosure. 4 Mariners in Waterford Harbor and 115 Blue Water in Marina Del Sol are two recently built waterfront homes that were foreclosed on and put on the market. Both properties are priced well below market.

4 Mariners – Waterford Harbor  -  3884 sq.ft.  – 4 Bedrooms - 3/1 Baths
Custom home built by Masterpiece in the gated subdivision of Waterford  Harbor. Viking appliances, exterior pool with flagstone. Property needs exterior paint but the interior looks to be in good cosmetic condition. Waterfront with walking access to pier 19. Listed By:USA Asset Group

List price – $669,900   Galveston County Assessed Value – $772,000  Last Purchased for $866,000

More Information Here

115 Blue Water – Marina Del Sol – 4489 sq.ft. – 4 Bedrooms – 3/1 Baths

Custom Home built in 2006 by Dan Wallrath  in Marina Del Sol.  Waterfront on canal with direct access to Clear Lake. The home looks to be in move in condition. Recent sales in the area have went well over $175 a foot. Listed by: J.D. Rankin

List Price – $734,900 Galveston County Assessed Value – $603,222   Last Purchased for $796,000.

More Information

We still have a record number of foreclosures and a record number of sales. Aggressive tactics by mortgage brokers and lenders have lead to our record breaking foreclosure rate. Many people who purchased a house 10 years ago are shocked to hear that anyone with decent credit can purchase a home with Zero down and not have to pay any closing cost. Daily we are seeing buyers close on a house only spending money on inspections and a appraisal. Many times those expenses are actually refunded to them at closing. There are many renters that have more invested in a rent house then some new homeowners.

Many people feel that this is an indication of a bad market. Traditionally that has been the case but in today’s market we are seeing a different cycle. Typically once a foreclosure is taken by the bank and put on the market it is purchased within the first 30 days of being on the market by investors or first time home buyers. It is an odd cycle but luckily it is not affecting the home market significantly. I hear many people say “don’t foreclosures hurt my home value?” and they answer is no. Even with the high number of foreclosures many subdivisions rarely have more than one foreclosure home on the market at anytime. Appraisers and Real Estate Professional know that those lower sales price are not an indication of the market but rather an indication of the condition of that property. Foreclosures are typically not used when completing marketing analysis or appraisals.

Foreclosures present a great opportunity for investors that are seasoned and have cash available to act quickly. Foreclosures that are discounted sell within days and many time over list price. Mortgage companies are moving to tighten up requirements to cut the number of foreclosures and to try to stop mortgage fraud.