Archive for the ‘Foreclosure Auction’ Category

The word foreclosure has ominous connotations for the borrower. It means the latter loses the opportunity to clear the mortgaged estate and secure the bolts and nuts on the roof above his head. Crudely put a foreclosure means the roof is about to blow away. To foreclose means to shut out and stop the borrower from his rights as a borrower. The property now becomes the exclusive domain of the lender.

The trickle of foreclosures has now become a flood with numbers growing astronomically. There are about 120 million houses in America. Of them 4.8 million, which work out to approximately, 4% are on foreclosure listings. Few have been able to scrape through but the majority remains in the soup of falling far behind in their dues with little hope of catching up.

The foreclosure process is a legal step. It starts when the borrower fails to pay their dues during a specified time. Usually there are many reasons for this. The cause may either be divorce, unemployment, unforeseen medical expense, rising terms of loan, failure to manage property or the greatest cause of all – death. But none of these reasons will hold water with the lender. Money has to be paid – the unequivocal pound of flesh.

Through the process of foreclosure the lender tries to realize his dues. It is done by taking over the property and selling it. Borrowers and lenders are both facing each other over the net. One wants to keep the fires of the home hearth burning while for the others it is plain business – the basic bread and butter on which the lender survives.

The foreclosure proceedings kick off with a notice sent by the lender to the borrower demanding payment. This letter is known as the Notice of Default or NOD. The usual grace period is three months after which the notice is issued. The notice should not be taken lightly. There is no point in burying one’s head below the sand like the proverbial ostrich. The notice implies that the borrower is threatened that together with forfeiture of all rights on the property the house will be sold. This ultimately means dispossession and eviction.

The problem has become so extensive that a sideline business has opened up with groups vying with each other to give detailed information about foreclosed listings to investors and buyers or organize counseling about how to stall foreclosure.

via

Search Images

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.

Source

Search Images

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.

Via

Search Images

The city of Chula Vista in San Diego County is one of the fastest growing cities. Over the years the city has witnessed an increase in its single-family homes. However, the increase in number of homes came along with an increase in adjustable-interest loans. This led to an increase in homeowner’s payment, and many homeowners were unable to keep up with the payment. As a result of which several properties in the city of Chula Vista are facing foreclosures.

The rising rate of foreclosures has led to an increase in number of vacant homes. According to officials in South Bay city, the area has witnessed more than 700 vacant homes. Doug Leeper, the city’s code enforcement manager says that city has nearly 3000 distressed properties, due to which nearly 700 to 800 properties are lying vacant.

In fact in several areas of the city, one will witness abandoned homes, which one can easily identify due to the condition of the property. Several properties are seen in pathetic condition with dried up front lawn, broken windows, dirty swimming pool etc. In this regards Art Deford a local resident who lives near such vacant foreclosure property says that the look of the beautiful looking home has changed ever since the lender has taken it over.
While the rising foreclosure rate in Chula Vista has not only led to an increase in empty homes, but due to conditions of these empty homes, rates of near by areas is getting affected. According to former City Councilman Leonard Moore, people walk away from areas having such properties.

To handle this situation, and to prevent property values from falling further, the Chula Vista administration has adopted a program. Based on similar programs formulated in Chicago and Detroit, under this program lenders will be compelled to maintain homes, which they seize and register vacant properties with the city and a $70 fee will be charged to titleholders on registering the property. Besides as the property is security for loan, the lender will be held accountable for a home even before the foreclosure procedure is over.

Via

Search Images

For the third consecutive year Rick Enszer, treasurer of Midland County will officiate as auctioneer on Tuesday evening. Nine foreclosed properties will be up for bidding at Midland County Service Building on 220W Ellsworth Street. Five of these units with minimum price tags ranging from $1,500 to $5,800 are drawing the attention of future buyers. Four others would be of benefit only to its adjacent neighbours. Enszer said that the offer would go to the highest bidder.

Cash, cheque or credit card would be accepted as payment on the very evening of the sale. Those who have to obtain loan will be given consideration to obtain a letter of credit approval from a financial institution. The understanding would be that the treasurer’s office of Midland County would receive the money within three days of the sale.

Among the properties is a modest unit in Jerome Township lying to the east of West River Road that has access to Black Creek. The special attraction of this property is that the owner will be able to build a dock on the creek for a private boat. The bottom price line is $5,800.

On South Nine Mile Road in Porter Township is another parcel of 10 acre, which also has tremendous possibilities. However there is no information in the file about well and septic provision related to the Environmental Health Department. The minimum bid is $4,000.
In Mills Township on Family Lane is a 1.5-acre dream. Also in Mills Township is a 40-acre landlocked parcel of land.

The office of the County Treasury added that it does not guarantee accessibility, easement or condition of the building with its amenities that have been foreclosed because the previous owner failed to meet mortgage payment dues and/or tax dues from 2005. They repeatedly cautioned those who were interested to do thorough searching and researching about what they intend to buy because more often than not properties are foreclosed because there is no possibility of any vertical or horizontal extensions.

A roll of the properties up for auction with photographs and other relevant details have been posted on the entrance of the County Service Building. As an alternative these may be viewed on the website of the county at www.co.midland.mi.us/ as well as on the website of the treasurer. For more information the interested party may contact the office of the County Treasurer over phone – (989) 832-6850.

Source

Search Images

The auction firm of Williams & Williams has cause to celebrate – it ranks first in the world for having topped sale of auctioned properties. As foreclosure rates rise more and more house owners have sought escape from troubles via the auction route.

According to Mortgage Bankers Association, the last quarter of 2007 saw foreclosure listings hit an all time high. There are no signs of the tide subsiding says their economist Dough Duncan. RealtyTrac, a name in foreclosure data collection opines that out of 24 major markets in the entire country, 20 showed increases this year compared to 2007.

The numbers are self-explanatory says President of Williams & Williams. He analyzes that a two-tiered real estate system has emerged from the present scenario. On the one side is the traditional approach, which is a luxury confined to a limited few. On the other side of the fence are those who want to clearly know the current rate of their property fast and quick. Their outlook is similar to that of the stock exchange trader or even of a Rockefeller selling a painting. They all go to the auctioneer.
Going to the auction has its advantages. It brings a fair value to the property and does not involve playing the waiting and guessing game of the traditional listing method. In a swift single session buyers determine the real worth of the unit thus saving both on precious time, energy and money. The auction method prevents loss of equity and credit worthiness. Lenders do not have to sit indefinitely on foreclosed properties and lose money.

The auction move is sending shivers down the real estate spine. While speculators and agent hum and haw genuine buyers snap up deals at local auctions in a matter of seconds. Novices who have never experienced auction sales are coming out of it satisfied. Joe Wallman is one such new entrant. He says that now he can clear his debts and live in another affordable house. He is all praise for the professional expediency of William & William and highly recommends them for others in a similar soup.

Williams & Williams is gearing up to meet a double take on their demand since the previous year. This will be their success story for the fourth consecutive year showing a 100% growth since the company was given a facelift in 2003.

via

Search Images

There are just too many homes for lenders – much more than they can swallow. Where is the cash? The figure runs into tens of thousands of dollars. Tom Ruff researching in data says that the rates have plummeted. There is not much equity left even if the lenders cough up the cash and buy the units up for auction. The bait of discount sale of the properties is just not profitable any longer.

All over the valley third parties bought 18% of the foreclosed 876 properties last month. They were the traditional investors. According to Information Market figures the lenders took back 82%. It’s a quick U turn from the figures of June last year (2005) when investors grabbed 75% of 105 properties that had been foreclosed. Ruff opined that was time when the market was hot and boiling. It was the right time for investors to take risks underlined with hopes. But property prices have suddenly become to stagnate causing many would-be investors from staying clear of buying foreclosure properties. This leaves the lenders weighed down with monetary burdens.

Taking back a home is not just about paying the price of the property but also includes attorney fees, repairs, upkeep and maintenance of the units and then the botheration of marketing it all over again.

Eric Bowley of AmeriFirst Financial in Mesa says that quite a few lenders are being compelled to buy back loans that had gone bad. These units they had sold to national mortgage servicing companies and or to investors from Wall Street. The snowballing effect is that a good number of firms are pulling down shutters. He goes on to add that it is sad to see that many have to sleep on the same beds that they have made for themselves.

Patti Crawford of Intero Real Estate Services is vociferous about the problem being endemic right across the country cutting through all income levels. As examples she cited two instances. A 2-roomed unit off Thunder Bird in West Valley and another 4 roomed house were placed in the market by the lender for $45,000 and $1.6 million respectively. She said that properties are being driven back home in herds!

Crawford warned borrowers to read and to be careful where they put their signatures. Many were pressurized by unlicensed greedy lenders trying to make hay when the sun was shining.

Via

Search Images

In an atmosphere of carnival fun the auction proceeds in a packed room. In a fast and furious pace a three bedroom condo in South San Francisco is snapped up for $425,000. Over 2,300 people had crowded in. ‘Ringmen’ in tuxedos were managing the show. One even did a jig whenever there was a bid. Black and white clad women ‘runners’ clapped and cheered while rushing around with paper and board. Some sold out in two minutes with only four bidders. All the while snack dealers made hay while the accompanying children played around in the sun outside.

That was only one of the 88 properties up for foreclosure mostly in the Counties of Alameda, Contra Costa and Solana. In a decade there had not been the likes of such a large-scale show in the foreclosure field. There was no doubt that the rising tidal waves were lashing the Bay Area also.

The company conducting the auction, had been hibernating for the last ten years. The market was too hot. But now they were hot on the trails of a cooling market and making up for lost time. In the matter of a month they had auctioned off 290 foreclosed properties in Southern California. They were now on a hurricane tour of the county, knee-deep in the foreclosure crisis. Financial institutions are selling off their properties via the auction route on the reasoning that a quick sale is better than a slow one. Losses can be repaired as against time that never comes back.

The game plan was that each property had declared a minimum bid but there was a y secret reserve price. The latter was the minimum acceptable to the banks. Bids below the actual reserve price were given the denial notice within a week. The rates were fine for those who want to live in it but not tempting enough for investors.

Bidders had to bring $5,000 cashier’s cheque. The top bidder was expected to put down 5% of the bid price and sign over the cashier’s cheque together with the personal cheque for the balance. A 5% buyers fee has to be paid to defray costs. The realtors get a seller’s fee. The difference between foreclosure and county auctions is that the latter is out of reach of the common man because it requires all payments in cash. Moreover the title deeds may or may not be clear.

via

Search Images