Foreclosure Listings Articles

The much hyped plan of the Obama government offering incentives to all parties concerned in the instance of troubled mortgages is not working out with reports of re-default coming in following modifications. Two of the victims are Samantha and Steve Jensen. Six years ago they had bought a house in Scottsdale in Arizona for $550,000. This seemed to them the perfect nest to rear their three children. But when their ARM loans began to reset to higher niches they found they could not afford the monthly jump from $1,000 to $3,300. Thus when the bank agreed to modify their loan by reducing interest rate, they were understandably relieved.

As per the new agreement they were to pay per month $2,600. Later they found out that property taxes were due. Adding all this up led to their monthly payment jumping to $3,500. They got the loan modified in June this year and are now already lagging behind two months in payment. Foreclosure seems imminent. Samantha complained, “The bank could have done more and reduced our principal. You have the anticipation of relief and then you realize it’s not going to make it better. It’s like being punched in the stomach twice.” Modification of the mortgage can be done in many ways. Lenders can permit the borrower to jump few payments and add these to the loan amount.

They might bring down the interest rate, stretch the loan period or bring down the total loan amount by waiving part of the principal. Many of the lenders contend that bringing down the principal is generally not done – except as the very last resort for modification when there are no other options. More than 80% of the modifications done by Wells Fargo during the last three months have permitted lower payments for the borrowers but most of these have reduced rate of interest.

Over 240,000 modifications have been effected by the bank and over 30,000 executed following the guidelines of the Obama programme. CitiMortgage claims to have effected 92% modifications by bringing down interest rates and or stretching loan period. 8% were able to have their principal reduced. It is complicated and difficult to provide relief to the borrowers because the lender does not comprise of one entity. Innumerable mortgages were parceled, sliced and sold to various investors right across the globe. The servicers contend they do not have the right to modify loans.

Stimulus plans to prevent foreclosures are speckled with injustice towards Hispanics and Blacks. It is they who were main targets of exotic mortgages, main sufferers of the housing crisis and now mainly neglected in the rescue plans.
Jesse Jackson claims that they have recently come to know that from the stimulus plans of President Obama the minorities are getting a significantly fewer share than others. Adriene Hill of WBEZ radio said that of the 119 contracts issued by Illinois Department of Transportation the black contractors have got only 2% as reported by Secretary of Transportation Ray LaHood. This sidelines a whole generation of youth who could otherwise have been the pillars of a recovering nation.

While President Obama was in Copenhagen advocating the cause of Chicago to host the next Olympics a 16 years old high school student Derrion Albert was murdered in Chicago. Only those were shocked we were not unaware of the pattern being woven depriving the Blacks and Hispanics in a systematic manner. It should not be permitted to continue.

Following this particular tragedy the President sent his attorney general and education secretary to the Chicago. But this was more in reaction to the embarrassment the murder caused at a time when he was trying to place Chicago on the Olympics map. Adolfo Carrion, the urban “czar” of the president should also accompany them not only to investigate a particular murder but to analyze the slow death of justice that is happening in cities right across USA.

The answer to this challenge requires much more than discussions. In Chicago Jackson wants the citizens to take a stand. A safe passage to school has to be guaranteed. A challenge has to be thrown to the city authorities and to the federal as well state governments forcing them to do something and not just talk.
Next in priority, feels Jackson, is the creation of jobs in Chicago. Washington seems to be recovering but in many places, especially the urban pockets, recession has now become depression. The Black unemployment rate is double that of the Whites and the youth are getting angry. A whole generation may go awry and everybody will have to pay for it.

The law has to give equal protection to all. The predatory lenders preying on minorities have to be collared. All must be given an opportunity to avail of the new green jobs. Communities previously excluded from the energy sector should now be included. All this needs a blue print, time schedules, overseeing and above all legal enforcement.

It is ironical that modifications have increased the amount of monthly payments and thus causing borrowers to be pushed into the arms of foreclosure again. With great hope the homeowners (their numbers running into tens of thousands) across the country have been asking their lenders to modify their loans. But instead of getting relief they [...]

Continue reading: Modifications are Making it More Difficult and Pushing Borrowers into Foreclosures Again

The situation is getting only worse what with people losing jobs faster than ever. This has triggered off a wave of foreclosures in various regions of the country. Now, another bad news is that in Bay Area people had taken a loan that is popularly known as Adjustable Rate Mortgage (ARM). In 2010, many of [...]

Continue reading: Besides Foreclosures – Bay Area Residents have Another Thorn in the Eye

The Board of Alderman of Melrose is mulling over plans to pass an ordinance that would financially penalize lenders by imposing an annual fine to the extent of $3,000 for neglecting foreclosed properties. The ordinance suggestion is being given a review by Appropriations Committee of the board. Its target is to clear the neighbourhood of [...]

Continue reading: Melrose Planning to Punish Lenders Neglecting Foreclosed Houses

Las Vegas commercial foreclosure front is showing signs of pessimism laced with optimism for the long term Its commercial real estate market has been hit by the recent economic travails but increasing foreclosures and sharp fall in prices will provide opportunity to many to quickly recover than in other regions. Panelists were speaking about this [...]

Continue reading: Glimmers of Hope on the Commercial Foreclosure Front in Las Vegas

Legal firms under the lead of United Law Group joined hands in firm handshakes with 30 other prominent legal companies to from Crisis Commission on Homeowner Representation.

United Law Group is one of the leading law firms with branches across the country – Arizona, California, Florida, Nevada, New York and Ohio. It has licensed [...]

Continue reading: Legal Firms Join Hands in Firm Handshakes to Hackle the Foreclosure Crisis

This is an interesting tidbit of information from the New York Daily News. It seems that in the investigation of people who have gotten help in restructuring their loan terms, end up missing another payment. It seems that over half of the loans that were checked that had gotten some form [...]

Continue reading: Foreclosure Recap – Week #40