Friday, October 30, 2009
LOSS MITIGATION PART 1 BANKS OVERWHELMED
Before the spring of 2009, there was no standard set of rules for loan modifications in the United States or in Phoenix, Arizona. Each lender in Phoenix, AZ had its own rules as to how they wanted to handle loan modifications. In most situations, the loss mitigation through loan modification process heavily favored the banks. Their main concern was to find a way to recover the money that a home owner was behind in payments. Generally, the banks would either increase the monthly payment or extend the term of the payments so that those late payments would just be paid off at the end of a loan. Usually, when the loss mitigation through loan modification process called for increased payments, the foreclosure of a property was only delayed by a few months, because there was no way that they could make a higher payment. A new program, announced in the spring of 2009 by the Obama administration has changed the loss mitigation through loan modification process. The guidelines for loss mitigation through loan modification have changed. This program mandated that mortgage payments be reduced to just thirty one percent of the home owner's income. For many Americans, this meant that they could once again afford to pay their mortgage payments. The loss mitigation through loan modification process, appeared to be a great helping hand. However, the program only covers mortgages through Fannie Mae, Freddie Mac and the FHA, but it is widely thought that most other lenders will choose to follow the guidelines for loss mitigation through loan modification as laid out by the Obama Administration. The Making Home Affordable Modification Program has placed the focus right on loss mitigation through loan modification. Many in danger of losing their homes to foreclosure didn't even know what loan modification was. Since the program's inception, there have been scores of people flooding into banks to request loss mitigation through loan modification. With all of these people facing the time crunch to avoid foreclosure, this has placed the burden of a national housing crisis squarely on the backs of the Loss Mitigation Department at your bank and every bank. Before the housing crisis and the crash of the dallas real estate market, foreclosures were not very common. Most lenders and mortgage providers kept a staff of just a few people to handle loss mitigation. Foreclosures were not very common and loan modifications were even less common. However, the times have certainly changed. Banks and lenders have increased the size of their loss mitigation departments exponentially. This has meant thousands of people needed to be trained to work with loan modifications and all of the other tasks that fall to the loss mitigation department at a lending institution. There are horror stories abound regarding customers having to hound and hassle Loss Mitigation Departments to get their paperwork pushed through to avoid foreclosure. Loss Mitigation Departments are currently still understaffed, under experienced, and overworked. Read Part 2 of our Loss Mitigation Report to Find a Better Solution to avoiding foreclosure. dallas real estate
Real estate market review in tel-aviv
The first quarter of 2008 was opened with a storm. The dollar is losing its value more and more, the stock markets of the world are unstable, our inside politics is stile waiting for the final vinograd report and all of the above makes the real estate market grow strong and the real estate prices both the private and the commercial rise up. There is no doubt the market is growing strong and the financial crisis that happens all over the world's stock markets due to the mortgages crisis in the United States hasn't shook and turned over everything that has been going on in the market. From that we conclude that the economic and real estate strength and firmness relies on the "way of leadership" and not only on the leader. The real estate prices are still low and both the institutional bodies and the investors exploit the markets situation "before the rise" and equip themselves with " quality merchandise" which is chip that has obviously a chance of future high capital gain. The real estate that produces is traded today with returns of 8%.in the absence of solid channels for investments, and since the changing of the provident funds deposits law we predict the continuation of money withdrawal and the stopping of deposits and in favor of purchasing yielding real estate, on the base of provident funds.
General economy outlines
Macro conditions in Israel encourage wealth since deflation problems of mid 90's and early 2000 were fixed. Bank of Israel estimates a 4.2% growth in the GDP (Gross Domestic Product) accompanied by a decrease unemployment rate to 6.4%. GDP's estimations for 2009 are 3.1%, unemployment rate 6.6%. IMF (International Monetary Fund) estimates GDP at 3.8% at 2008. Bank of Israel holds the opinion that realization of the declaration in the activity in USA, along with expectations of world declaration in the future, the acute realistic revaluation of the NIS (more than 20% the last year), worsening in commerce conditions, as well as poor industry and companies' survey financial results indicated further declaration in the near future. this declaration will not affect rent prices in Tel Aviv at all. As for purchasing prices for the next year- we hold the opinion that realistically the prices will stay stable.
General Trends:
Rent prices- continue to increase. In many areas population levels has stabled close to 100%. This stability indicates lack in properties for rent and not on a change in demands. Return rates- has not significantly changed** The Sub prime has not yet influenced demand for investments in properties. Currency- fluctuations of the USD have not effected, realistically, on real estate prices in Tel Aviv.
Predictions:
Moderate increase of 10%-15% in rent prices In Tel Aviv. Demand will expend to new, less populated areas such as Florentine, Montifyori and Yemenite Quarter as well as to Jaffa and Shapira neighborhood.
Trends of Investors:
Purchasing group- a raising number of investors prefer joining a group in order to save VAT and construction costs. Moderate increase in foreigner's investments in Tel Aviv. Preferred areas are located on the sea line between The Opera tower to Arlozorov (near Hilton), East toward Dezingoff Street, the area between Bograshof and Dizingof, as well as Neve Tzedek, Yemenite Quarter and Rothschild. New city project along with increased demand for properties in Montifyori neighborhood implies expectations for growing in demand for residential properties. Constructions and development works accompanied with launching new commerce stores all over Florentine, Shapira neighborhood and central station area are been made as a replay to the increasing demand in these areas. Demands of small apartments (1-2.5 rooms) are not being met by new projects. Rent prices are named in NIS and no longer linked to USD. We recommend linking to consumer's price index. For more information on return rates, please contact our office. This report does not replace professional individual consultation and should not be the only reference for taking business decisions. Thou the facts and data were carefully examined, we will not be held responsible for any damages and/ or losses caused by mistakes in this review.
Residential areas overview:
Neve Tzedek (Oasis of Justice)
The Neve Tzedek neighborhood of Tel Aviv was the first Jewish neighborhood to be built outside of Jaffa at the beginning of 1887, 22 years before the establishment of the city of Tel Aviv. With the passing of the years, Neve Tzedek has become a center of taste, culture and lifestyle and a desirable area to live in. Many intellectuals and artists chose to dwell and to create here. A tour of the narrow lanes and winding streets of the neighborhood is a fabulous experience. The area has been renovated and each corner is a gem. Amongst others, you can find here the house of the Hebrew Nobel Literature prizewinning author, Shai Agnon, who lived here from 1909 to 1912. Also in the neighborhood - the Gutman Museum the home of the artists Nachum Gutman, displaying his works, photographs and video films, and that of the Rokach family, pioneers of the area, which has become a museum and memorial, showing a variety of objects, as well as an exhibition of the artist Lea Majero- Mintz, who renovated the house. The Suzanne Dellal Center for Dance and Theatre, located in the heart of Neve Tzedek and one of the most beautiful cultural centers in the city. Surrounded by lovely gardens and splendid piazza, this complex is a home to two of the best Israeli dance companies, and a host for the most unique performances in town. Above the neighborhood is the Shalom Tower, one of the high buildings in Tel Aviv, and its observation balcony, from which there is a fine view of Neve Tzedek, the hill of Jaffa and the Mediterranean Sea.
Sheinkin Street
Opposite to Nachalat Binyamin and Carmel Market is the trendiest street in the city, and the best place to experience the lives of typical Tel-Avivians. Shinkin street is especially known by the colorful quaint people strolling around, and by its unique shops, cafe' life and youthful ambiance. It is a favorite among hippies, as well as Israeli celebrities, and on Friday noon, when the street fills up with lively music and dancing, it is almost impossible to find a vacant seat at one of the stylish bars and restaurants. The street teem with fruit juice stands (where you pick up your favorite fruits and get a fresh cold mix made right in front of your eyes), fashionable clothing and footwear stores, handmade jewelry and craft, kiosks, hot corncobs stalls, music shops, tattoos and even a small piece of garden. Sheinkin has become a real concept in Tel-Aviv, so much that people are sometimes referred as "Sheinkinians" because of their trendy artistic lives.
Rothschild Boulevard
A long boulevard in central Tel Aviv, which was built in 1910. It carries traffic in both directions and runs from Neve Tzedek at its south-western end to Habima Theatre at its northern end.The boulevard is named after the baron Edmond James de Rothschild, and is the first boulevard built in the city. It is one of the most popular, busy and famous streets in Tel Aviv and in Israel because of its large number of cafés, restaurants, office buildings and different styles of architecture. Israel's Declaration of Independence was signed at the Independence Hall, which is situated on the boulevard. The boulevard plays a major part in the development of the White City of Tel Aviv, a UNESCO-designated World Heritage Site. In recent years, a number of skyscrapers have been constructed among the Bauhaus-style buildings on Rothschild Boulevard. The First International Bank Tower and Bank Discount Tower are two examples of these which are completed, whilst the 1 Rothschild Tower is currently under construction.
Dizengoff Street
Dizengoff Street has always been the embodiment of Tel Aviv street culture. Dizengoff is home to fashion- both high street international brands- numerous coffee shops and local bars as well as restaurants of all kind. The northern part of Dizengoff is full of exclusive bespoke bridal wear boutiques and brides to be come from all over Israel to buy their dresses from this area of Tel Aviv. You can often see brides a few moments before their wedding being picked up by their grooms as they are prepared in the many bridal salons along the same part of Dizengoff.
Old Jaffa
Is one of the most attractive places to tour in Tel Aviv - Jaffa. The city which has always been the entry to the ancient land of Israel is succeeding, even today, its traditional aromas and fragrances which have always characterized it: beautiful stone, buildings, narrow, winding alleys fishermen's port artists' quarter, cafés, restaurants and shops. In Jaffa there are ancient churches, which are among the most beautiful in Israel, serving the city's Christian community, with open doors for visitors and the faithful. It is recommended walk to Jaffa along the Tel Aviv Promenade, which begins in North Tel Aviv and ends at the Jaffa Port. On the way, you pass the skyscrapers of the business center of south Tel Aviv and then you reach Old Jaffa. Like using a magic wand, moving from modern Israel to the magical Israel of bygone times, with city walls and stone buildings with arches. Instead of bustling, crowded streets there are narrow alleys and stone steps. In the center of activity is the Clock Square, where can be found the Clock Tower built by the Turkish Sultan Abed el Hamid II in 1906. This is the traditional starting point for tours of Jaffa. Not far east of the Clock Square is the Flea Market, another beauty spot of Tel Aviv - Jaffa. It is worthwhile to wander through the alleyways of the area, where there are historic buildings of archeological significance, many of which are today being renovated and rejuvenated. Now the time has come to continue westward and reach Old Jaffa itself. The area is situated on a high hill, overlooking the sea and Tel Aviv from the south, a beautiful, heartwarming sight. Kikar Kedumim is situated in the center of the area and the film on the history of Jaffa, at the visitor's center is worth seeing. The alleys of old Jaffa are named after the signs of the Zodiac and it is possible to find there artists galleries and Judaica shops, jewelry and art from to ranking artists.
Real estate market in jaffa
The real estate market in jaffa has never been better: various municipal plans, many projects in progress and wealthy population moving to town provide a invigorating gust of wind to the historical port town. The real estate investors, witch are frustrated with the lack of properties in tel-aviv, can look around the corner and discover that the southern sleepy neighbor has awakened two years ago. "in the last two years selling prices has risen in the new projects witch have been built in town in over 30%. A 2 bedroom apartment, that two years ago was sold in 600,000 sekels is now being sold in 1,000,000 sekels" delivers arik zevlodobiz manager of " neighborhood project" in town. According to arik, " out of 157 apartments that have been sold in the project, about 40% were sold on paper. The explanation is simple: the alternatives in tel-aviv are running low and the next preference is jaffa.in addition it seems that many project witch are done by the municipality are makig the city more beautiful, like the lite train project and the port building". At the moment in jaffa there are 10 projects in progress, each one consisting between 20 and 100 appartments. One of the oldest real estate investors in the market, Israel Lands Administration, has realized what was the new direction and found a way to incise there income." Over 3 years ago, entrepreneurs wouldn't dare taking the tenders of the Israel Lands Administration" says arik, "but recently the tenders where closed much higher than the price offered".
Option to execute an exit on the property
In spite of the rise of the prices in recent times, the prices of the ordinary apartments that are not included in the new projects stayed in reasonable prices range. The ordinary apartments prices are about 1300-1500 dollars per meter. The average prices in projects like the " neighborhood project" Andromeda and the courts of jaffa are 3000 dollars per meter."jaffa is very diverse and the prices chang from part to part. The more we look toward north-west the prices are higher as opposed to the east witch the prices there are lower.
High return on the investment
The rental prices in jaffa are about 550-600 dollars for a 2-3 bedroom apartment. Big demand arises as a result of the expansion of the "tel-aviv jaffa academy". Every person who wants to get high return in jaffa can purchase properties in northern jaffa, in yehuda hayamit street and the noga defined area, in these areas the average return is between 6%-8% a year. 9 years ago the mayor of tel-aviv jaffa has founded the "municipal authority for the development of jaffa". This authority handles many projects, among them there are housing and infrastructure projects. The head of this authority, gilad peled, says that " at the moment we are working on the "nes lagoiim" defined area and the maccabi jaffa stadium area, there we plan to build 2000 apartments. In jaffa there are many un exploited empty lots and structures as far as construction rights are concerned. this is a hugh advantage that hasn't be realized yet".
General economy outlines
Macro conditions in Israel encourage wealth since deflation problems of mid 90's and early 2000 were fixed. Bank of Israel estimates a 4.2% growth in the GDP (Gross Domestic Product) accompanied by a decrease unemployment rate to 6.4%. GDP's estimations for 2009 are 3.1%, unemployment rate 6.6%. IMF (International Monetary Fund) estimates GDP at 3.8% at 2008. Bank of Israel holds the opinion that realization of the declaration in the activity in USA, along with expectations of world declaration in the future, the acute realistic revaluation of the NIS (more than 20% the last year), worsening in commerce conditions, as well as poor industry and companies' survey financial results indicated further declaration in the near future. this declaration will not affect rent prices in Tel Aviv at all. As for purchasing prices for the next year- we hold the opinion that realistically the prices will stay stable.
General Trends:
Rent prices- continue to increase. In many areas population levels has stabled close to 100%. This stability indicates lack in properties for rent and not on a change in demands. Return rates- has not significantly changed** The Sub prime has not yet influenced demand for investments in properties. Currency- fluctuations of the USD have not effected, realistically, on real estate prices in Tel Aviv.
Predictions:
Moderate increase of 10%-15% in rent prices In Tel Aviv. Demand will expend to new, less populated areas such as Florentine, Montifyori and Yemenite Quarter as well as to Jaffa and Shapira neighborhood.
Trends of Investors:
Purchasing group- a raising number of investors prefer joining a group in order to save VAT and construction costs. Moderate increase in foreigner's investments in Tel Aviv. Preferred areas are located on the sea line between The Opera tower to Arlozorov (near Hilton), East toward Dezingoff Street, the area between Bograshof and Dizingof, as well as Neve Tzedek, Yemenite Quarter and Rothschild. New city project along with increased demand for properties in Montifyori neighborhood implies expectations for growing in demand for residential properties. Constructions and development works accompanied with launching new commerce stores all over Florentine, Shapira neighborhood and central station area are been made as a replay to the increasing demand in these areas. Demands of small apartments (1-2.5 rooms) are not being met by new projects. Rent prices are named in NIS and no longer linked to USD. We recommend linking to consumer's price index. For more information on return rates, please contact our office. This report does not replace professional individual consultation and should not be the only reference for taking business decisions. Thou the facts and data were carefully examined, we will not be held responsible for any damages and/ or losses caused by mistakes in this review.
Residential areas overview:
Neve Tzedek (Oasis of Justice)
The Neve Tzedek neighborhood of Tel Aviv was the first Jewish neighborhood to be built outside of Jaffa at the beginning of 1887, 22 years before the establishment of the city of Tel Aviv. With the passing of the years, Neve Tzedek has become a center of taste, culture and lifestyle and a desirable area to live in. Many intellectuals and artists chose to dwell and to create here. A tour of the narrow lanes and winding streets of the neighborhood is a fabulous experience. The area has been renovated and each corner is a gem. Amongst others, you can find here the house of the Hebrew Nobel Literature prizewinning author, Shai Agnon, who lived here from 1909 to 1912. Also in the neighborhood - the Gutman Museum the home of the artists Nachum Gutman, displaying his works, photographs and video films, and that of the Rokach family, pioneers of the area, which has become a museum and memorial, showing a variety of objects, as well as an exhibition of the artist Lea Majero- Mintz, who renovated the house. The Suzanne Dellal Center for Dance and Theatre, located in the heart of Neve Tzedek and one of the most beautiful cultural centers in the city. Surrounded by lovely gardens and splendid piazza, this complex is a home to two of the best Israeli dance companies, and a host for the most unique performances in town. Above the neighborhood is the Shalom Tower, one of the high buildings in Tel Aviv, and its observation balcony, from which there is a fine view of Neve Tzedek, the hill of Jaffa and the Mediterranean Sea.
Sheinkin Street
Opposite to Nachalat Binyamin and Carmel Market is the trendiest street in the city, and the best place to experience the lives of typical Tel-Avivians. Shinkin street is especially known by the colorful quaint people strolling around, and by its unique shops, cafe' life and youthful ambiance. It is a favorite among hippies, as well as Israeli celebrities, and on Friday noon, when the street fills up with lively music and dancing, it is almost impossible to find a vacant seat at one of the stylish bars and restaurants. The street teem with fruit juice stands (where you pick up your favorite fruits and get a fresh cold mix made right in front of your eyes), fashionable clothing and footwear stores, handmade jewelry and craft, kiosks, hot corncobs stalls, music shops, tattoos and even a small piece of garden. Sheinkin has become a real concept in Tel-Aviv, so much that people are sometimes referred as "Sheinkinians" because of their trendy artistic lives.
Rothschild Boulevard
A long boulevard in central Tel Aviv, which was built in 1910. It carries traffic in both directions and runs from Neve Tzedek at its south-western end to Habima Theatre at its northern end.The boulevard is named after the baron Edmond James de Rothschild, and is the first boulevard built in the city. It is one of the most popular, busy and famous streets in Tel Aviv and in Israel because of its large number of cafés, restaurants, office buildings and different styles of architecture. Israel's Declaration of Independence was signed at the Independence Hall, which is situated on the boulevard. The boulevard plays a major part in the development of the White City of Tel Aviv, a UNESCO-designated World Heritage Site. In recent years, a number of skyscrapers have been constructed among the Bauhaus-style buildings on Rothschild Boulevard. The First International Bank Tower and Bank Discount Tower are two examples of these which are completed, whilst the 1 Rothschild Tower is currently under construction.
Dizengoff Street
Dizengoff Street has always been the embodiment of Tel Aviv street culture. Dizengoff is home to fashion- both high street international brands- numerous coffee shops and local bars as well as restaurants of all kind. The northern part of Dizengoff is full of exclusive bespoke bridal wear boutiques and brides to be come from all over Israel to buy their dresses from this area of Tel Aviv. You can often see brides a few moments before their wedding being picked up by their grooms as they are prepared in the many bridal salons along the same part of Dizengoff.
Old Jaffa
Is one of the most attractive places to tour in Tel Aviv - Jaffa. The city which has always been the entry to the ancient land of Israel is succeeding, even today, its traditional aromas and fragrances which have always characterized it: beautiful stone, buildings, narrow, winding alleys fishermen's port artists' quarter, cafés, restaurants and shops. In Jaffa there are ancient churches, which are among the most beautiful in Israel, serving the city's Christian community, with open doors for visitors and the faithful. It is recommended walk to Jaffa along the Tel Aviv Promenade, which begins in North Tel Aviv and ends at the Jaffa Port. On the way, you pass the skyscrapers of the business center of south Tel Aviv and then you reach Old Jaffa. Like using a magic wand, moving from modern Israel to the magical Israel of bygone times, with city walls and stone buildings with arches. Instead of bustling, crowded streets there are narrow alleys and stone steps. In the center of activity is the Clock Square, where can be found the Clock Tower built by the Turkish Sultan Abed el Hamid II in 1906. This is the traditional starting point for tours of Jaffa. Not far east of the Clock Square is the Flea Market, another beauty spot of Tel Aviv - Jaffa. It is worthwhile to wander through the alleyways of the area, where there are historic buildings of archeological significance, many of which are today being renovated and rejuvenated. Now the time has come to continue westward and reach Old Jaffa itself. The area is situated on a high hill, overlooking the sea and Tel Aviv from the south, a beautiful, heartwarming sight. Kikar Kedumim is situated in the center of the area and the film on the history of Jaffa, at the visitor's center is worth seeing. The alleys of old Jaffa are named after the signs of the Zodiac and it is possible to find there artists galleries and Judaica shops, jewelry and art from to ranking artists.
Real estate market in jaffa
The real estate market in jaffa has never been better: various municipal plans, many projects in progress and wealthy population moving to town provide a invigorating gust of wind to the historical port town. The real estate investors, witch are frustrated with the lack of properties in tel-aviv, can look around the corner and discover that the southern sleepy neighbor has awakened two years ago. "in the last two years selling prices has risen in the new projects witch have been built in town in over 30%. A 2 bedroom apartment, that two years ago was sold in 600,000 sekels is now being sold in 1,000,000 sekels" delivers arik zevlodobiz manager of " neighborhood project" in town. According to arik, " out of 157 apartments that have been sold in the project, about 40% were sold on paper. The explanation is simple: the alternatives in tel-aviv are running low and the next preference is jaffa.in addition it seems that many project witch are done by the municipality are makig the city more beautiful, like the lite train project and the port building". At the moment in jaffa there are 10 projects in progress, each one consisting between 20 and 100 appartments. One of the oldest real estate investors in the market, Israel Lands Administration, has realized what was the new direction and found a way to incise there income." Over 3 years ago, entrepreneurs wouldn't dare taking the tenders of the Israel Lands Administration" says arik, "but recently the tenders where closed much higher than the price offered".
Option to execute an exit on the property
In spite of the rise of the prices in recent times, the prices of the ordinary apartments that are not included in the new projects stayed in reasonable prices range. The ordinary apartments prices are about 1300-1500 dollars per meter. The average prices in projects like the " neighborhood project" Andromeda and the courts of jaffa are 3000 dollars per meter."jaffa is very diverse and the prices chang from part to part. The more we look toward north-west the prices are higher as opposed to the east witch the prices there are lower.
High return on the investment
The rental prices in jaffa are about 550-600 dollars for a 2-3 bedroom apartment. Big demand arises as a result of the expansion of the "tel-aviv jaffa academy". Every person who wants to get high return in jaffa can purchase properties in northern jaffa, in yehuda hayamit street and the noga defined area, in these areas the average return is between 6%-8% a year. 9 years ago the mayor of tel-aviv jaffa has founded the "municipal authority for the development of jaffa". This authority handles many projects, among them there are housing and infrastructure projects. The head of this authority, gilad peled, says that " at the moment we are working on the "nes lagoiim" defined area and the maccabi jaffa stadium area, there we plan to build 2000 apartments. In jaffa there are many un exploited empty lots and structures as far as construction rights are concerned. this is a hugh advantage that hasn't be realized yet".
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