"Job growth offsetting foreclosures' impact on Columbus "economy" is the headline of an article in Business First Columbus written by Matt Burns.

Good news Columbus! It says the picture is grim for many cities but Columbus Ohio is not bearing the brunt of the foreclosure crisis Tsunami as it was painted in the announcements of the Foreclosure Forum that Columbus Mayor Coleman attended earlier this week. The communities with the darkest outlook are experiencing job losses.

The Business First Columbus article after the Foreclosure Forum says: Copyright 2007 Discover Columbus and Maureen McCabe

"A report issued for a national mayor's conference this week painted a grim picture for many cities across the U.S. resulting from the nation's foreclosure crisis, but Columbus wasn't one of them.

Greg Davies, deputy director of the city's development department, said the lack of a potential GDP loss is less an indication of Columbus' relationship to the foreclosure crisis and more a gauge of how job growth has offset it.

"I think it speaks to the strength of the city," Davies said. "Columbus, even though Ohio continues to lose jobs, continues to gain jobs ... and the cities hit the hardest in (the report's) predictions have been losing jobs."

More good employment news from Business First Columbus "Columbus October unemployment lowest in state"

Columbus Housing Market is Stable.

The Business First Columbus Article said that despite the good news on jobs foreclosures are still a problem in Columbus and Davies said:

"We're trying to make people realize this is not just happening in decaying neighborhoods but in middle-class neighborhoods," he said. "People need to wake up and realize this is not just the result of somebody making a bad decision... It's a huge problem that needs to be tackled."

A Friday, November 17, 2006 Inman News article gave the "Top Ten Foreclosure markets" in the US according to RealtyTrac.com.  Sorta.

They are states, not markets....

1. Colorado

Foreclousure are a growing problem in Central Ohio according to appraiser David Turner of  Dublin's Forsythe Appraisers in a Business First Columbus article  last week.  Forsythe Appraisers appraises Central Ohio foreclosed properties for the U.S. Department of Housing and Urban Development (HUD.) 

 "Things were holding steady on a significant pace over the past year," Turner said of the number of foreclosed residences he has been appraising. "But over the last couple of months the pace has really picked up."

The Columbus Metropolitan area was recently named the 7th strongest economy nationally.   Will the foreclosures that David Turner sees coming down the pike change that...?

Good news, Bad news, Good News- It's a great time to buy foreclosed properties in Columbus Ohio!  Interested in purchasing foreclosed property?  HUD homes book for consumers

Columbus is not on Ralph Roberts list...Mid-West Tops the List of Real Estate and Mortgage Fraud ‘Hot Spots’ on Robert's FlippingFrenzy.com blog...

Don't get foreclosed properties confused with mortgage fraud... there is a relationship but not all foreclosed properties are due to mortgage fraud.

Robert's says:

With fewer houses selling, increases in foreclosures and real estate prices dropping, the housing market is experiencing the “soft landing” that has been long predicted, and the mid-western United States is once again the most vulnerable part of the country when it to real estate fruad. Earlier this week, CoreLogic released the latest edition of the Core Mortgage Risk Monitor, a report that forecasts the geographic regions most likely to experience the economic consequences of increased levels of fraudulent activity over the next 12 to 18 months.

The Top 5 Markets..."at risk" do not include Columbus!

The top five major metropolitan statistical areas most at risk are:

1. Detroit-Livonia-Dearborn, Michigan
2. Memphis, Tennessee
3. Dayton, Ohio
4. Akron, Ohio
5. Gary, Indiana

Roberts says on his blog:

As I pointed out in a recent article for Realty Times, flipping, when done properly, is a perfectly legitimate strategy for making money in real estate. Someone buys a property below market value, fixes it up (or not), and sells it–based on legitimate appraisals, not inflated ones–for more than they invested in it. Do it well, and you can earn a handsome profit. Make a serious blunder, and you suffer a loss. The fix-it-and-flip-it approach has a positive effect on the real estate market. It increases property values, improves neighborhoods, and provides quality housing for those who need it. It’s the American way–capitalism at work.

The impression TV often gives of great profits for legitimate flipping is not even always true.  Real estate is local, Columbus Ohio is not Las Vegas.  Flipping is a gamble, in any market.

Flip That House   "This weekend an episode of 'Flip That House' caught my attention. The subject property was in Las Vegas. The 2200 sq ft home was purchased for $327,750. After new kitchen cabinets and appliances, a stamped concrete floor, new windows, adding a walk-in to the master and new landscaping, a real estate agent took a quick look at the house. "You shouldn't have any problem selling this for $599,000" she said, which meant a $207,000 profit for the flipper. "

the rest of the story.....

"The property was never listed! Tax records show the flipper purchased it in November, 2005, and still owns it today."

It's not real... it's just entertainment!  It's just TV....  If not for real estate blogger John Novak in Las Vegas...  "What Happens in Vegas, Stays in Vegas" might have been true of this episode of "Flip That House."
 

Governor Bob Taft stopped by Larry and Martha Clay's Columbus home today to sign Ohio's predatory lending law.  Called 'The Home Buyers Protetction Act' , it is designed to protect consumer from predatory lending in the subprime market. 

The Clay's were victims of predatory lending previously.  Less predatory lending in the state should mean less forclosed homes.

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Copyright 2006 Columbus Best Blog and Maureen McCabe