Foreclosure Listings Articles

The US is in the grip of a deep recession. As unemployment reaches its zenith, people are faltering on mortgage payments. Hence, foreclosures are common. Now there is a demand for low-end foreclosed properties in St. Paul. In August, there were a total of 1,811 vacant spaces in the area. This means a decline of 12 per cent vacant homes from the corresponding period of last year. It may be noted that in August 2008 there were 2,047 vacant spaces.

The empty properties are both residential and commercial spaces. The decrease in their numbers is a reflection of the real estate scenario. This was revealed by director of the Department of Safety and Inspections, Bob Kessler. The demand for homes has received a boost because of several factors. First, the price of foreclosed homes has seen a decline making it attractive for ordinary buyers. Second, the government has announced a federal tax credit for those who buy homes for the first time.

The number of foreclosures has decreased because the lenders are delaying legal proceedings. As Kessler observes the buildings are being struck off the list in greater numbers than they are being added. Also home owners are willing to palm off the properties at very low rates – as low as $15,000 to $20,000. Hence, buyers are grabbing the properties, revamping them and again selling them off, thereby making a small margin.

One such renovated property has been put on display by an investor. This house at Lawson Avenue will be viewed by buyers. The St. Paul Area Association of Realtors and Wells Fargo have organized the tour for the home buyers of the region. The tours are important because there are many vacant properties in the region. Even three years ago, there were 900 vacant buildings in the area. A building is usually labeled as vacant if it is unoccupied and meets any of the seven criteria like being not safe.

It’s not possible for anyone to know how many vacant buildings are there in the city. Registration is not compulsory and done only under certain circumstances. However, real estate developers want to believe that their numbers are fewer than before. Whatever be the case, experts say, that the real estate scenario will not improve until and unless, more jobs are created. Unless people have the purchasing power and are able to make the mortgage payments, foreclosures will continue to plague the American market.

Last Thursday, 16th October, Goldman announced that it would pay out $200 million to its charitable unit. The amount calculates to 6% of its profits during the third quarter or equivalent to its earnings for 6 days. Goldman now has the unusual task of explaining to the rest of the country sucked dry by the blowing sands of foreclosures, its success story.

Wall Street is agog with rumours that Goldman might dole out even more dollars to its charitable funds – perhaps nearly $1 billion while trying to appease the critical public. The chairman and chief executive of Goldman, Lloyd Blankfein has gone to the length of urging bankers to keep a low profile and not become conspicuous by ostentatious spending.

Goldman is also mulling over bringing changes to few of its compensation related operations. The executives get a large amount of their compensation in the form of stocks. But similar to the thinking being adopted by other banks it is now weighing the options of increasing the share of all the employees, allowing for deferred payments and including clauses that would allow the bank to snatch back some bonus if business goes awry. Blankfein sketched these plans while delivering a talk in Germany in September. Wall Street sat up to this speech.

The chief financial officer of Goldman, David A. Viniar however was on the defensive against such criticism. He said it was unfair considering that in another period this same country and its media would have hailed the firm with laurels for its outstanding success story. He argued, “We are very focused on what is going on in the world. We are focused on the economic climate. We are focused on what is going on with other people.” He reiterated that the company had fulfilled its duties towards the staff and to retain them the employees have to be kept happy. He felt Goldman was unfairly targeted on the bonus issued. He explained, “Yes, I think that is too big a focus.I would prefer people to be focused on the success of our business, how well we’re doing, and how well our people are performing.”

Doubts are being raised as whether the tarnished image of Goldman will clear up after this incident. Goldman however is toeing the usual Wall Street line of rewarding bankers and traders who have been able to mint money – there is nothing new in what it has done by giving out these huge bonuses.

Professor Michael Useem of University of Pennsylvania said, “They do it because they can. But strategic thinking requires that you think not only about trading but also about reputation and where the bank stands in the court of public opinion.”

Most of the borrowers are at a loss how to tackle the impending problem but the housing counselors are there with unsheathed swords waging a war against foreclosures. They have first hand knowledge of the various federal government plans involving $75 billion. The plans are there but the borrowers need to be navigated and for [...]

Continue reading: Housing Counselors Waging War Against Foreclosures

Those who once proudly lived in their own homes with self-respect are now turning to seek refuge in cars, with friends, relations and in public shelters.
One of the victims is Sheri West. The first night she spent inside her sedan. It was parked in the driveway of her previous house piled with her goods. On [...]

Continue reading: Foreclosures are Compelling Evictees to Seek Shelter

Mortgage servicers have always worked as collection agents – this being their business and as such they are ill equipped to handle en masse modification of mortgages. This was the view of Patrick Madigan the assistant attorney general of Iowa. Speaking at an interview he said, “The mortgage industry has responded to this crisis with [...]

Continue reading: Servicers are ill Equipped to Handle en Masse Modification of Mortgages

The National Association of Home Builders recently approached the Congress to see to it that the housing sector once more took a leading role in bringing back drive to the economy. It wanted speedy action to stretch and increase the limits of $8,000 being offered as tax credit to first time nest builders. The association [...]

Continue reading: NAHB Approaches Congress to Take More Proactive Steps in Mitigating Foreclosure Crisis

Legislators are scrutinizing lending activities of the Federal Housing Agency. It made its debut during the time of the Great Depression to help the damaged real estate market get back on its feet with the assistance of the government coming forward to insure mortgages. But currently – the worst economic crisis since then is causing [...]

Continue reading: Legislators Scrutinizing Lending Activities of FHA

Out of the mouths of babes. In the first story this week is a fourth grader who asked president elect Obama “Why do people hate you?” President Obama was making his first Presidential visit to New Orleans this week and while there he attended a town hall meeting. During Thursday’s meeting, [...]

Continue reading: Foreclosure Recap – Week #42