5 Foreclosure Myths about 2012

5 Foreclosure Myths about 2012

Beginning in 2007, foreclosures rocked the real estate world. Like an out-of-control freight train, they began decimating the market, peaking in 2009. Myths and rumors began propagating like mushrooms as consumers struggled to understand the new reality. Although many misconceptions have come and gone, we still encounter five myths on a regular basis. 1. There is going to be a flood of new foreclosures to the market. This rumor has appeared every year since 2008 and has been routinely debunked. However, recent announcements that the Feds reached a settlement over the robo-signing scandal have reignited speculation. The idea is simple: Since the cork is now out of the foreclosure bottle, we’ll soon see another flood of REOs inundating the marketplace. My personal opinion: don’t hold your breath. Banks have learned that if they control inventory, they can affect local prices. By releasing homes in measured amounts, they realize higher prices than if they released a glut of homes. In addition, they’ve learned that if they can mitigate their losses by agreeing to a short sale, everyone wins. 2. You can go directly to a bank to buy a foreclosure. Every few weeks I’m asked how to buy foreclosures direct from a bank. Someone knows a friend being foreclosed on and they want to step in and grab the house before it hits the market. Don’t we all? In reality, banks have a simple system – they first offer properties on the courthouse steps. The rest they assign to asset mangers who then hire local real estate agents to put them on the market along with all the other homes....

The Slow Lane

No need to worry about bad drivers on these four bike-friendly routes! For a family ride, a pub crawl, or just some world-class people watching, you can’t miss with these laid-back bike paths. Santa Monica Bike Path The northernmost section of the 27-mile concrete lane that stretches from Palos Verdes and knocks on the door of Malibu is known as the Santa Monica Bike Path. Drive to the beachside lot just south of Ocean Park Boulervard-bikes can be rented at Perry’s Cafe (perryscafe.com)-and point your wheels north, avoiding the chaos of the Venice boardwalk. After the Santa Monica Pier you’ll enjoy an uninterrupted ride until you run out of real estate at Temescal Canyon Road. Ballona Creek Bike Path If the beach is the heart of the low-key cruise, then the Ballona Creek Bike Path is the femoral artery. Stretching inland to Culver City, it makes the sand accessible even from Westlake via the bike lane on Venice Boulevard. Once you hit the water and turn south toward Manhattan Beach, you’ll pass the massive Hyperion Water Treatment Plant and the outcropping used as a launchpad for hang gliders. Chandler Bikeway More of a thoroughfare than a destination ride, this utilitarian path stalks the Chandler Boulevard Busway for 14 miles, taking you from Woodland Hills to Burbank and within striking distance of Griffith Park. The two-mile stretch on the east end is verdant and festooned with murals and bronze sculptures. Heading west, it’s a bit less scenic, with views of the Van Nuys CostCo loading docks, but it’s just a few pedal strokes to the serenity of Lake Balboa. Griffith...