Archive for the ‘Foreclosed Properties’ Category

During the past years the few house owners have been losing familiar neighbours. The neighbourhood is beginning to lose its value together with its beauty and safety. A deserted look is taking over entire blocks.

It is a problem with neighbourhood associations. Nearly 10% houses have gone into foreclosure that results in overgrown gardens and creaking water pipes. Mission Viejo is just one of these areas. The situation is aggravated by the fact that it takes as long as nine months for the foreclosure process to go underway. There are about 50 to 100 complaints per week about overgrowths and garbage. In 2006 the city had to clean up 1,338 abandoned houses. Aurora had to suffer the same with 844 properties. This year the figures will be higher.

Aurora plans to place a lien against the unit and realize the expenses. The properties that have undergone a mopping up operation are only a fraction of the numbers caught in the foreclosure net. In the first half of this year 3,190 in Adams County was caught in the grip – 1,040 more than the previous year. In Arapahoe County last year’s June numbers were 2,354 while this year it is 3,031 according to official figures. In the Laredo Highline region property ratings have dropped on an average by $20,000 in the past three years.

The Council is worried about the vacant properties and the dismal appearance of northeast Aurora and wants state intervention to regulate lending practices. Another citizen is of the opinion that the cities should sit together and find out a viable solution. The problem does not relate to the issue of foreclosures only. It affects the neighbourhood, the tax collection base of the city together with the eerie silence inroads and schools.
Most of the banks are not interested in cosmetic repairs to the units to make it attractive. Vacant houses attract vandalism. Aggrieved evicted previous owners are often the avenging culprits as also the copper thief and vagrant. One agent recalls that she has seen houses with broken mirrors made slippery with maple syrup sans light and plumbing fixtures.

The police are not all that negative in their comments. Others say that banks are starting to brush up property appearances. Associations are being formed to help first time owners by pooling federal funds. A counselling hotline has been activated and the picture is beginning to brighten up.

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The rising tide of foreclosures means gloom for property sellers. The balance between demand and supply determines the rate and there are just too many properties on the shop shelves. Foreclosed houses can be snapped up for a bargain but it is bad for sellers trying to compete with bank prices. The banks can’t afford to indefinitely wait on unsold property to realize their dues. It is more judicious for them to let the unit go and be content with getting back only the loaned amount.

In Northwest Las Vegas the brand new five-bedroom showpiece seemed an impossible dream coming true to Kathy and Michael Lowry. A neat profit on a resale would have seen their children through college. But a year and a half later the dream became the reality of continuing to pay interest on the loan without any buyer knocking on their doors. It began to tell on day-to-day life when small movie treats had to be curtailed to keep their heads above water. Eight similar foreclosures in the same neighborhood as the Lowry’s have forced them to climb down on their price. Even then they are finding tough competition from the bank rates, which are about $100,000 less on their asking price. Desperate the Lowry’s are now searching for tenants to be able to pay their dues on the interest-only loans. Michael Lowry is now looking to his retirement to help him but already he has been ‘bled down’. He sees now way out for solving the problem of his children’s college education. It was beyond their wildest imaginations that such a good property investment would turn into a white elephant – impossible to maintain and keep. To avoid instant loss the only way seems to be to hang on anyhow.

Cameron Yates-DeAngelo a real estate broker is full of sympathy for people trying to sell their homes the legitimate way. Foreclosed homes sound cheap but the snag is that you buy them on an as-is basis. This means there might be ugly surprises lurking behind the locked doors in the way of upkeep and repairs.
The best option for those who want a good home on a slim budget is to log on to foreclosurelistings.com. The experts on foreclosures regularly scan through the lists and spot the best individual specific option. The services and suggestions given are tailor made and customized.

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In Fairfax County foreclosure figures rose by five times more during the first six months of 2007 in comparison to the same time last year. In the first half of 2006 the number of foreclosure listings was 190 but it zoomed to 987 during the same period this year. The County has released these figures.

The problem is growing as more and more house owners are neither able to meet their mortgage dues nor sell their property in a falling real estate market. Ira Rheingold, executive director of the National Association of Consumer Advocates wonders how Fairfax can remain unaffected and immune from the virus that has gripped the entire country. The blame is being laid at the door of lenders who did a conjurer’s trick in qualifying borrowers to avail of adjustable-rate mortgages. It was inevitable that within a short period hiccups would start.

The borrowers began to stumble in their payment schedule. The situation became impossible when a falling market caused property equity to fall. Under the circumstances the property would not be able to fetch a price that would meet debts and yet leave something over and above for a honourable future route of existence. Rheingold is unhappy with the banks for allowing lending practices to spin out of control and cause this sort of a crisis.

Deputy Fair fax Executive, Ed Long predicts that there is no hope of the waves subsiding before 2008. The mortgage industry has just started to clean up their backyard. However it is well to note that of the 233,000 residential units in Fairfax County, the foreclosed units comprise of only a fraction. Rheingold went on to explain that the problem has at its root the problem of the great American dream of owning a house and the dichotomy of not being able to qualify for a loan in the traditional conservative manner. This led to the creation of the sub-prime market that readily advanced loans without much digging into loan creditworthiness of the borrower.

Unfortunately sub-prime lenders became overzealous and predatory. The gullible were talked into loans that were doomed to failure from the start. The price of property was falsely inflated. Together with this, decline on the economic front coupled with personal woes led to the inevitable. The seed was sown. Now there is no other way but to reap the harvest.

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Ghosts have the run of 1600 houses shuttered down by foreclosures in a sprawling neighbourhood in Dallas County. That is the number for the forthcoming postings next month. Banks seem to be swallowing up not just houses but entire localities as well. It is having a grim effect on solitary survivors like Edward Hoffman in Desoto, where 125 units are waiting for the anvil in August.

If the prices of property around you continue to tumble then your equity too is affected by a downward fall of 50%. Donald McMillion is sandwiched by two foreclosed units whose dues continue to rise. The honour and integrity of the entire area is at stake. Good days three years ago became a distant memory for residents of Dallas County, Desoto, Duncanville, Garland, Irving, Lancaster and Mesquite with 560 foreclosures in August 2004. But that was nothing compared to what is happening recently. The numbers have gone up by leaps and bounds. In the same cities in August there are 862 foreclosure listings. This means an upswing by 65%.

Jim Baugh, the City Manager of Desoto is optimistic that this mix up will in the long run greatly benefit development. It is the time for investments to reap rich harvests later on. But foreclosures means lower tax revenues as house equity falls. Ultimately the government will be the loser. As yet the total grim picture has not yet sifted through. It is shocking to say the least with Desoto, Cedar Hill, Lancaster and other prime southwest regions being worst hit. In ground reality foreclosed houses mean shuttered doors and windows, with overgrown lawns, reeking with discarded piled up rubbish. The gloomy isolation infects the neighbors.

Many pool together (Home Owners Association) to see to the running of essentials like mowing the undergrowth and collecting neglected mails. But for how long? A contribution is made to the HOA’s for looking after the locality, its recreation and entry points and the like.

In Lancaster foreclosures are up by as much as 116%. Cordell Ballanshaw is planting the garden of his new house with hope in his heart although he is surrounded by the eerie silence of three houses behind him. For him it is a gamble and an act of faith. He hopes and has faith that the financial virus raging all around will improve his betting chances and spell prosperity for him.

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Cambridge based Real estate consultant Paul Martinez recounts the experience of his client – a novice investor. He built castles in the air around a two-family house in Somerville. The 30-year-old debutante in this field was greatly influenced by shows and advertisements about buying, renovating and converting units into condominiums that could be sold at a higher equity within a month. But 18 months later he had run out of breath after having bought when the tide was high. But now with funds running out the retreating tide in the housing market left him high and dry. The unit remained unsold and overpriced by $60,000. It did not take long for foreclosure clouds to loom large and darken his horizon.

Martinez is skeptical about these house-flip shows on HGTV (Flipping Out, Flip the House, Property Ladder) that highly influence viewers. Novices lack the experience and knowledgeable friends to realize that the numbers are wrong. It is all show talk. Reality and actual income from real estate is quite another thing. Here there is no surety. It is the first timers who are the worst hit. They lose money and peace of mind to foreclosures.

According to figures released by ForeclosuresMass.com, during the first quarter of 2007 foreclosure listings rose in Massachusetts by 75% compared to that of 2006 during the same time. Suffolk County alone stood out with 83%. Simultaneously the number of non-traditional mortgage numbers also rose.

Many green horns had forayed in the real estate field for the first time about a year and a half ago to come out with their fingers burnt. Their units remained unsold either because they could not cope with the spiraling mortgage rates or because they had invested in the wrong locality opines broker Paul Turcotte, owner of Re/Max Destiny, Newbury Street, Cambridge.

Realtors tell the newcomers to follow a ‘golden rule’ – never to buy unless the pocket permits it and do not invest without a ready exit route. The buyer must be there even before the investor buys. Jeremy Shapiro of ForeclosuresMass.com echoes this view and adds that cautious steps should be taken backed by licensed contractors. One should know the law before anything else and also keep in mind that laws are continually changing. There is no doubt that increasing foreclosures have complicated matters making it impossible for individuals without ready resources to own a house.

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At the eleventh hour a Norwich Superior Court Judge cancelled the foreclosure auction proceedings against Waterford Speedbowl property that was scheduled to be held on Saturday. This means hope for short track racing enthusiasts. The weekly event will continue to be held in Southern Connecticut.

A spokesperson of Waterford Speedbowl, Terry Eames, confirmed that his group had managed a financial solution to the foreclosure. This has enabled them to continue with its racetrack operations. Rocco Arbitell of Southbury and Peter Borelli of Derby refinanced and bailed out Speedbowl from the ignominy of Foreclosure.
In the first half of 2006 Washington Mutual Bank had initiated foreclosure proceedings against the property owners and had got a date on Saturday noon for holding auctions. But on Thursday Eames and his group completed refinancing formalities. A new mortgage was availed of through two private individuals – Rocco Arbitell and Peter Borelli. This allowed Norwich Superior Judge to cancel the auction on Friday morning. Eames and his organization have now nothing to do with Washington Mutual Bank. It was a narrow victory. The victims had till 5 pm on Friday to scrape out of the auction.

For Eames it was a moment of great relief after the close shave. Although for the last few days the redress plan was taking shape he could not sit back on his oars until the thing was finally done. It was only on Thursday evening that he could put up his heels and sit back.
1080 Hartford Road, LLC purchased Speedbowl in September 2000. Eames has been running Speedbowl since its inception but had surrendered operational control of the track since the last season. The track has now been leased to Jerry Robinson, a local businessman and to the general manager of the Track Bill Roth.

Harvey Industries will be purchasing 8 of the 39 acres of Speedbowl land and plans to set up on the site a distribution centre.

Eames waxes eloquent as he ruminates on the recent happenings. The Roccos and Borellis as family units refinanced the deal as a personal favour to him. Also as racing enthusiasts they were keen to see the track running and alive. Eames also expressed his deep gratitude to Attorney Tom Londregan who was a pillar of steady support and a perfect gentleman striking at the opportune moment to clinch the issue on the correct legal point.

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Yuba County has the dubious distinction of leading in foreclosure trippings. During the second quarter of this year the fall out was four times more than during the same period last year, according to La Jolla based real estate services, DataQuick Information Systems.

The first step is issuing of default notices. This increased by 280% in this county. The number this year was 171 as against 45 in 2006. There had been an increase in 2006 in relation to 2005 but that had been negligible and not spectacular like this time. It was the highest number of notices in ten years. The causes were pinned down on rapid fall in prices and slow sales. The balloon of frenetic buying during 2004-2005 seems to have burst. Till now property owners had been able to survive because of real estate boom. They sold their homes and refinanced.

But of late the noose of foreclosure is tightening with few being able to slip out of it. Nearly more than half of property owners are in the red. 54.6% scramble out somehow by refinancing and getting some equity on their houses. A year ago this route had saved 88%.

DatQuick puts the blame on the slow market and homes bought with multiple loans financing method. In Yuba County the average prices of property fell by 10.4% in June 2007. A year ago it was 8.5%. Sacramento is the weakest spot in the region. Till last Tuesday there were rumours that the foreclosure crisis would make a u- turn but nothing happened. This is just the reverse of the coin when the atmosphere had been such that lenders came forward to give loans even to those who were not technically credit worthy.

Many questionable loans were made during summers of 2005 and 2006. The price of property was hopping and jumping up by double digits allowing lenders to tease borrowers on to stretch beyond their maximum financial capacity. It is the latter that is kicking off the storm.

The prediction is that there is little hope in sight. Foreclosures will keep on rising as a fall out from loans of 2006 that had 2 year fixed rate periods. The interest would be reset in 2008 at a higher notch – thus putting more pressure on monthly installments.
Coupled with this are unemployment problems making it impossible for owners to remain masters of the house.

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The foreclosure crisis in the country is getting worst day by day and several homeowners are getting affected due to this. A lot is being said and written on the ways and means of handling the foreclosure situation in the country. In this context author Ralph R. Roberts has some up with his book Foreclosure Investing For Dummies, which was presented at the RISMedia’s CEO Exchange in Sedalia, Colorado.

Speaking about his book, the author said that primary aim of his book is to provide solutions to homeowners who are the victims of foreclosure. The author is of the opinion that homeowners who are facing foreclosure are unaware of the variety of options available to them, as a result of which they eventually end up loosing their property as well as their equity. However, through his book, Robert has attempted to provide several options for distressed homeowners.

The author is of the opinion that homeowners facing foreclosures must proactively contact their lender. By doing so they may either be able to save their property or can sell their property and repay their debt, rather than letting the property go in for an auction, where the owner does not gain anything.

The books also provides insights regarding the foreclosure process, and is useful to real estate professionals who want to grow their business by purchasing such foreclosure properties and earn a fair amount of profit. The book provides information on investing in pre-foreclosure and foreclosure properties where by investors will not only be able to make good amount of money, but at the same time can provide a helping hand to distressed homeowners. By investing in foreclosure property, Robert believes that the foreclosure crisis in the country can be handled at least to a certain extent.

On being asked the reason for presenting the book on this occasion, the author said that the purpose was to send message to real estate professionals such as brokers, agents, loan officers etc to help foreclosure victims by educating and encouraging them to contact their lender and take the first step to save their home and equity.

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