Archive for the ‘Foreclosure Property’ Category

One out of every 47 houses is popping into the foreclosure oven making it one of the hottest cities in the grips of the reigning real estate crisis. It ranks 8th among the leading 100 cities buzzing with foreclosure activity during the first half of this year. The figures have been released by one of the premier tracking groups online, based in Irvine.

The apprehension is that things are going to get worse. 82 of this group of 100 consisting of the prime metro cities in USA are reporting a year-over-year escalation in the number of foreclosures. The numbers are taking everyone by surprise. Things were bad but nobody thought it was that bad. Kern County stood 8th in the first quarter of this year.

According to reliable figures the foreclosure pot continues to boil in California. Stockton, Sacramento and the combined Riverside and San Bernardino region having the dubious distinction of being including among the top 10 rankers. The tracking group makes use of records given out by the counties. The figures are inclusive of default notices, pending lists, sales by trustees and real estate owners. Stockton ranked first. Here one out of every 27 units came under the foreclosure cloud. Among the prime ten defaulters were Las Vegas, Detroit, Denver, Miami, Memphis, Tenn. and Cleveland. The least foreclosure activity was noticeable in Richmond and Va.

The foreclosure fall out is the result of many factors – mismanagement of sub-prime mortgages combined with general economic ill health of the country leading to unemployment. If the reasons are multifarious the results too are many pronged. With too many houses up for sale the real estate prices are plummeting. This is touching those units that are not directly under the foreclosure hammer. The mortgage industry has tightened its belt with the result that there are not enough buyers for houses. The banks are sitting with idle properties and empty coffers. This is sending alarm signals to brokers in Wall Street. The Wall Street sneeze is making international stock markets catch a cold. Closer home vacant houses are happy hunting grounds for vagrants and addicts leading to law and order problems. A new group of advisers have cropped up trying to help foreclosure victims. Politicians take this as an opportune moment to fish in troubled waters and make loud noises about cooling the heat and switching off the oven.

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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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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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Jacksonville is being sucked into the whirlwind of foreclosures ranking among the top defaulters in the country. Lake Forest area with a high concentration of houses is the worst hit. The virus has infected all levels of income and localities. Jacksonville has one foreclosure per 123 households – with the highest focus on Lake Forest area. Catchy signboards offering help are sprouting like mushrooms. The phone line however does not connect directly with the owner but with mortgage brokers fishing in troubled waters, trying to rope in more clients.

Some residents are living in an island unaware of the surrounding roaring waves. Leaflets jamming their letterboxes are taken to be normal junk which all have to bear with.

Realtor Peggie Wattron acting for Lighthouse Realty informs that she has her arms full with about 90 foreclosures to deal with. Her experience is varied. There are ex-house owners who refuse to budge until the police come with assistants and literally kick them out bag and baggage. Then there are city campers who calmly break in and squat on foreclosed properties.

Wattron has often tried to contact the victims to show them the dignified escape route but they usually prefer to remain like ostriches and protest that they are unaware of the coming eviction. Even when she goes and pastes a notice on the door the evictees tend to look the other way and pretend that nothing is there to read or see. Nobody contacts Wattron by burying their heads in the sand.
The Lake Forest region is a scene of devastation with piles of trashcans and personal knick-knacks strewn in front of crumbling houses with broken doors and windows. Sometimes the frustrated ex-owners do their utmost to damage the structure before leaving by pulling out as many fixtures as possible.

In the middle of the mess lenders, investors and advocates of borrowers throw mud at each other. The large number of defaults has had a snowballing effect on Wall Street and forced some lenders to down the shutters.

The story started with people with dreams and low income being refused loans. Cashing in on this scenario mortgage brokers came forward with teaser loans – tempting in the beginning but turning bitter with each passing day. Details of the agreement were purposefully kept in small print.

The grave situation has caused USA Senate to regulate sub-prime lending by legislation.

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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.

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Composite Solutions Inc is all set to form a subsidiary to reap the best out of the increasing foreclosure mess. The Sun shines on one side of the globe while the other is under darkness. As foreclosure numbers rise property rates tumble. Wall Street giants think this is the right time to snap up real estates. According to Federal Deposit Insurance Corporation, USA commercial banks held $1.5 billion worth of property in 1991. But by the first quarter of 2007 it rose to $2.3 billion – a 53% jump.

Composite Solutions is looking around for bank-owned properties. It is a great chance for investment when USA lenders are tensed and uneasy. Lenders want return for money and not the weight of bricks and mortar. This gives a great chance to CSI to their project of non-performing notes amounting to $6.06 million.

The sun continues to shine for opportunists. About 926,000 units have joined the foreclosure ranks – 56% rise above last year. Since RealtyTrac, foreclosure data collector, has started tracking numbers this is the highest figure. In June 2007 the foreclosure numbers rose to 164,644 – a rise by 87%

Composite Solutions Inc (www. Csicput.com) is just following the law of nature – pick the apples when they are ripe. Why let these rot? It deals in investments by acquiring properties that will give returns in the commercial, industrial and residential fields. Another avenue it pursues is concerned with designing, developing and construction of properties for selling directly to the public.

The Company believes in openness as is evident of their periodical news releases termed ‘forward-looking statements’. Statements and material information are given about future happenings and financial results that are positive in nature but subject to risks and reservations. By making these predictions the Company keeps itself protected by the Private Securities Litigation Reform Act of 1995 and its amendments.

The meaning is contained within Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Thus these being only anticipatory in nature and not guaranteed statements or promises, the company cannot be held responsible if suddenly a cloud covers the sun. Composite Solutions Inc frankly places in newsletters the possibilities and opportunities open in the present situation. Now it is up to the discretion of the individual to go for it or not keeping eyes and ears open.

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Now well fare institutions like hospitals are coming under the cloud of foreclosures. St. Joseph Hospital on Fort Worth, near the south side, has been shut down. The New Jersey based owner says that more than $9000,000 as tax backlog, fines and interest will be paid before the property goes up for auction in the following month.

The Vice President of Diversified Capital, in Lakewood, New Jersey dealing with business development, said that although they are not happy and are grumbling, they would pay all the dues. But one thing for sure was that they were not going to surrender the property to foreclosure.

In May 2007, the ruling of the District Court judge was that SJG Partners, limited partners of Diversified Capital, is liable for the payment of taxes that have accrued since 2000. SJG Partners had purchased the property on South Main Street and Allen Avenue. It was a property under the hammer of the foreclosure. At that point of time, August 2005, the previous owners had failed to pay taxes to the tune of $695,000. As per the Sales Order issued by the office of the District Court the tax bill had shot up to $917,319. The date fixed for the auction is 7th August.

Diversified was sued by both Fort Worth, Tarrant County and Fort Worth School District in January last year (2006). Diversified answered that they did not owe taxes because they were not owners of the said property during the years the taxes had been accounted.

The property in dispute was the first hospital in Tarrant County. It was founded in 1885. It is a 12 storey structure made from red brick was added to the original structure and came to be called St. Joseph. It came to be owned by HCA/Columbia Healthcare Corporation when in 1995 it had to be closed.

Heritage Geriatric Housing Development of California bought the unit and redid the lower floors into Alzheimer’ Centre, St. Joseph’s Garden. It had to be closed in 2000.

Stern gave the information that Diversified has further ambitious plans. It is moving ahead to develop further the property with shops, offices and residential quarters that would be worth more than $50 million. He also added that recently there plans had been afoot to sell the property to a local oil and gas concern but the deal fell through.

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Although California is still bleeding in raw numbers Florida is rapidly healing her wounds. California, the fairyland of dreams, the heartbeat of the million-dollar Silicon Valley seems to lead in everything – including the unhappy state of foreclosures. But according to statistics compiled by Bargain.com, Florida is leading in the reverse race – the drop in numbers in foreclosure listings. In California the numbers are still grim and alarming. The population of Florida is less than half that of California. In Florida during the second quarter of this year, 78,408 properties had been marked for foreclosures as against 83,210 houses in California. Trends however indicate that while California has reached her peak, Florida seems to be ready for more days of suffering ahead.

During the first quarter of 2007, there was a 7% drop in California numbers. But the opposite happened in Florida. Here the Sunshine State statistics showed 23% rise in the second as compared to the first quarter.

From the national viewpoint, about one in every six homes entering foreclosure is in Florida. A fall in sales teaming up with a surfeit of properties resulted in a speculation bonanza during 2004 and 2005. The net result has been that properties became susceptible to repossession. To add insult to injury the situation became worse with taxes and insurance rates skyrocketing. It became impossible for the ordinary man to stay under his own home warmed by the fires of his hearth.

Bargain.com is a California based group that sells lists of distressed properties. It suggests that the foreclosure crisis may have reached its peak all over the country in the first quarter of this year. Among 50 state, 34 reported less number of foreclosure victims during the second quarter.

Apart from California other Sun Belt states tapering off from the boom bonanza continue to be scorched. Among the top rankers, Florida was joined by Arizona, Nevada and Texas.

The head of Pinellas Realtor Organization, Ann Guiberson, sees rays of hope peeping from under gray clouds for California. The state still retains its role of nation leader in this foreclosure affair, followed closely by Florida. But Florida has a different conductor wielding the baton for the foreclosure orchestra. When other markets are down they remain up. Now when others are vigorously coming back Florida, in comparison to some is going back further down the road.

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