A new nationwide National Multi Housing Council study says owners of the biggest apartments are seeing very few applicants applying to rent after a foreclosure.
NMHC says apartment industry data show only 2% to 6% of all apartment applicants were seeking to rent after running into trouble with their mortgage.
In fact, only 23.5% of apartment applicants have ever even had a mortgage, according to First Advantage SafeRent, which does apartment applicant screening. Only 5.4% of those with previous mortgages had ever been 90 days behind or defaulted.
Experts have several theories about why there hasn’t been a flood of foreclosure refugees into apartments:
- Foreclosures may involve investment properties
- Some are renting houses rather than apartments
- Those with credit problems are applying for units that don’t screen applicants
- They could be moving in with family.
That doesn’t mean the coast is clear, notes the study, “Renter Credit Quality in a Volatile Housing Market.”
“Given that foreclosures take time and that additional pressure will be put on financially burdened homeowners as adjustable-rate mortgages continue to reset in 2008 and 2009, it is reasonable to expect the number of applicants with foreclosures to continue to increase, perhaps dramatically, from current levels,” said the report.
Other apartment news…
yeah and the national institute of
trivial data did a study on the
national multi housing council
and found that theres only one
employee there whos name is
johnny lasner- no relation to
jon lansner- but uses just for men
Wachovia predicts another 20% drop for OC housing, in the news today.
“Those with credit problems are applying for units that don’t screen applicants ‘
This is true. I’ve also noticed people moving into poorer neighborhoods. This might be good to mix up the demographics.
We know a couple of families that moved to apartments prior to being late. Their houses are now sitting empty long before the default notice arrives.
Anyone with half an understanding of credit would be into an apartment or rental way before it hits there credit. Of course most of those people that don’t get out before then will try and find a house with a private party rental. Back during the boom it was easier to get a house than it was to rent an apartment. I know because people told me that they couldn’t rent a place becuase of thier credit but they some how qualified for a 185k loan??????????
Alfalfa,
I suppose all is well then?
Maybe it’s those lower commisions spurring sales?
Pendings.
Don’t.
Matter.
Closes.
Do.
Coffee.
Is.
For.
Closers.
Rising pendings may be the result of Obama slipping in the polls, lower prices and bulk purchases by investors.
Straight of the NAR press release.
“”short sales and foreclosures [account] for approximately one-third of transactions”. ”
One can assume that pending transactions will continue to increase with the next wave of Alt A defaults around the corner. Good news for realtors, bad news for anyone who bought after 2002.
Cute No Vas, try this one.
Moses supposes
His toeses are roses,
But Moses supposes
eroniously.
Yo Alfalfa,
Did realtor.org have any press releases about unemployment claims reaching a 6 year high?
“The realty industry is quickly becoming a shadow of what it was,” says Mark Zandi, chief economist of Moody’s Economy.com. “For those who remain employed, their compensation has plunged. Realtors were also among the most aggressive housing investors. Many made the error of working and investing with leverage in the same industry, something financial planners counsel strongly against.”
………… is sunny yunny talking about this?……….
You know if this Bulk Purchase thing starts showing promise, I wouldn’t be suprised to see the Banks start holding on to some of the more choice properties. I know the Banks have been working on the Fed to allow them into the Real Estate Brokerage business for about 10 years now. It could happen sooner rather than later.
Snarky you a day late and a dollar short on that one.
You know something Alfafa mav is on to something. in a perfect world maybe there is a way we can all benifit.
The forclosures keep rising……….. (which they will regardless)
Sales rise keeping slightly lower pace……………..
Price goes down to affordability…………..
RE agents make less commish but make up for it in volume……….
Hey I would be a happy clown!
Oh yeah but what about the people who bought while price was still going down???
Oh well scratch that………….
Back to your argueing……………….
Sorry it was no_vas that made the comment.
No harm, no foul
Agents have never wished for sky high prices…they cannot control prices. The wish is for realistic sellers regarding value and a return to normalcy of the credit markets…that is if the banks wish to make money again.
Stash,
The rent multiple in my central OC neighborhood is currently 210.
When I moved here two years ago, it was over 400.
If you were to teleport back to 2001 it was 166.
My next door neighbor has $300K in neg equity on a $665K purchase.
My post tax cash flow is still a negative $1500 a month owning as opposed to renting.
The loose lending that allowed my neighbor to move in is over, for while anyway.
I’m not reading tea leaves. I just see what is happening right in front of me. It is what it is. I’d like to buy now but the simple math is I can rent two homes for the same money as I can own one in the neighborhoods I’m interested in living.
Yeah, it was the availability of cheap money from the banks that drove the market up and their tightening of credit that stopped it in it’s tracks, not anything a Realtor did.
I defy you to find where I blamed a Realtor or realtors for this problem.
I double dog dare defy you to find it.
I only post using one handle. Have fun looking for the needle that doesn’t exist.
Mulligan, I have a hard time understanding your consistent misuse of language. What kind of “agents” do you refer to? Licensed real estate agents or time share agents ?
No Vas,
Kinda touchy aren’t ya?
Truthiness, in your case I hope it’s a Travel Agent
I will let you ponder that one truthi…
Rants, why would I buy into anything from her? Her degree is in Soviet Studies (probably not the best career path at this time) and she minored in journalisim and was Dan Rathers protoge a CBS. She’s married to a Hegde Fund manger. While chastising middle class Americans for using the equity in their homes to remodel their kitchens with staniless steel and granite, Ms. GotRocks writes an article about how she and her husband remodeled their “Farmhouse” in Connecticut updating it and making sure all materiels used were Green. Shes’ a mouth piece for the looney left. Just another out of touch limouzine liberal.
Rants, you like them purddy pigs don’t ya?
lol @ 2-6%. and there were those that said rents wouldn’t remain flat…
SA:
Not at all. I get frosted when people blame realtors for the bubble. It’s like blaming the clerk at the 7-11 for alcoholism. That doesn’t solve the problem Realtors face now - prohabition on loose lending has stolen the clerk’s business out from underneath them, so to speak.
I have sold and purchased about 10 properties (2 residential, 8 commercial or agricultrual) and have had excelent representation by realtors in all of them. Title companies……not so much.
If you’re interested, I have seven or eight loads of hay for sale today. I have an offer for $265 a ton, FOB Visalia, but I think he’s only going to take five. You want the other load?
No Vas, you’re a load
Hey no_vas I think you read into my comment wrong. I was just poking fun at the continuing arguement on this blog (that I am not above throwing my 2 cents into). I am in the same boat as you. I rent in Capo Beach for $2400 300-400 yards to the beach in a straight line. 3 bd + den 2.5 bath about 1800 sq ft. If I baught the condo I was in it would cost me today 700-800k. (I think, I will proabably get hammered for that # by the RE agents since I pulled it out my butt). Anyway my mgt payment with insurance and taxes would be atleast double that here. Hence my hanndle, stashingmycash…………….
Waiting just like all the rest of us poor middle class Joes…………
What is the gross house hold monthy income range for middle class?
Sorry yearly income range?
Middle class or middle income?
Is there a differnece?
Stash, there’s a big difference. Our next door neighbors have a lot more money than we do (inheritance), hence middle to upper income. But when it comes to class, they are lacking :)
You got me there………..
Yeah but inheritence doesn’t count as income………..
Unless your mother in-law has been living with you……….
Then you have actually really earned it! :)
Good one…
I don’t hold Realtors responsible, unless they insist on misleading, either intentionally or unintentionally. Let’s be clear, Realtors are SALES PEOPLE. They are supposed to get us to BUY. When was the last time you heard anything out of a SALES Reps mouth that was anything but how great this widget is and how happy we’d be owning it?
If we want financial advice, we don’t ask the sales rep at Sears for crying out loud (well, maybe some of you do, but I don’t).
At least Mullie tries to get educated. I have to give Mullie that.
The agents I’ve had represent me were professional well-intentioned, conscientious agents who all went above and beyond.
I will get bent though if an agent tries to tell me I’m wrong about the market, especially when it is so obvious that the emperor has no clothes.
Here is the main reason
.. We have only seen the first wave of foreclosures.These consisted of mainly investment properties..Just now we are seeing the so called real Owner occupied homeowners losing their homes… With all the great advice these people are getting from attorneys and the web. They will stay in their homes until the bitter end.. they will wait till the sheriffs office evicts them before they leave..Then and only then you will see the numbers on previously foreclosed folks start to rent homes and apartments.
Realtors are really great and we need to keep them around about as long as we need Travel Agents, Vacuum Tube Maker, Horse Buggy Repairmen, Wale Oil Salesman, Swordcutter, Fletcher.
Many home buyers only need the internet, and a minimum wage person to unlock the doors of a house to view it.
Realtors are obsolete and I predict will become extinct!
Enlghtenment, you don’t know what youre talking about. Do have any idea what is involved in listing, marketing, selling a home. And then running your client through the gauntlet of purchase agreements disclosures, title , escrow, working with the lender, inspectors, on and on and on?
You obviously know nothing about the business. If anything is going to make realtors obsolete it will be the utter destruction of the real estate market vis a vis destruction of credit.–thank the stupid and greedy banks up the food chain for that.
They are probably still living in their foreclosed homes. The banks don’t have time to evict all these people. And there will be more. Try it if you don’t believe me.
To qualify to rent an apartment requires a viable credit score, enough cash for a deposit and first month’s rent, and proof of sufficient income/cash flow to pay the rent without stretching excessively. Until recently, qualifying for a mortgage required none of these things. No wonder the weaker hands chose to buy instead of rent, and no wonder that they don’t even bother trying to apply for an apartment now that they are being foreclosed.