Posts Tagged ‘alabama’

Marengo based Linden Lumber business concern has been able to avoid the crisis of foreclosure by arranging for and repaying a debt of $5 million. This was stated by Federal Land Bank last Friday. The representative of the bank said that a new settlement has been arrived at regarding repayment of the $5 million dues. Linden Lumber, founded in 1955 is one of the largest companies in Marengo employing a large number of people. It operates one of the key industries. Of late the company has been financially stumbling. 150 employees were laid off and two prime sections closed down about three years ago.

Upon this negotiation depended the fate of 425 jobholders in an economically backward region. As per previous schedule foreclosure sale was to be held on Friday. The bank was reluctant to divulge the details of the confidential agreement. The company’s agents and spokespersons could not be contacted for their remarks and comments.

The agreement follows an approval issued by the Marengo County Commission on 24th August 2007 that allowed public funds to the tune of $5 million to $7 million to be used to save a sinking concern from drowning. The welfare and livelihood of many were tied to its fate and hence the concern and remedy. It is the first time that Marengo County has put into force its wide lending discretionary powers which Alabama Counties enjoy. This is as per an amendment made to the constitution of the state in 2006.

Woody Dining, the acting attorney of Marengo County said that it would take many weeks for the fund to be actually released; it might even be months. There were stipulations and strings attached regarding the meeting of certain requirements by the company. However the very fact that funds have been sanctioned meant that Linden Lumber had sufficient negotiating power to enforce a satisfactory agreement.

Although there had been unanimous voting in the meeting on 24th August in favour of bailing out Linden Lumber nevertheless the whole episode was not without criticism. There were many who disliked the idea of using public funds to help a private company. Most spoke in favour taking into account the broader perspectives but a vociferous minority opposed the move saying that the policy was bad and would set up a questionable precedent that would not bode well for the future.

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House Predictor.com has conducted a survey after analyzing the country’s largest metropolitan real estate markets. It forecasts that within two and a half years 2 million homes will be foreclosed. 50 US states comes under this dubitable distinction. So far the site has been 85% correct in its conclusions.

Housing Predictor gives details about the foreclosure tsunami in America and how the virus of the sub-prime loan calamity is gnawing into the conventional mortgage market. Topping the list are Michigan, Ohio, Minnesota, Nevada and Colorado. Next in line and about to catch up are California, Alabama, Indiana and Mississippi.

The apprehensions of House Predictor are echoes of what The Center for Responsible Lending has already estimated. The latter gives a very grim picture. About 2.2 million houses will come under the hammer of foreclosure during the same period of two and a half years, as a result of the sub-prime hiccups.

Some researchers are of the opinion that the infection has not spread into all the real estate markets on a big scale. In eighteen states the local housing markets are appreciating. Signs of stabilization are apparent in 10 other property markets. A phenomenal increase in adjustable mortgage rates have spiked off this disaster. At the root of it all is unethical lending by agents and accepting of the same by borrowers without thinking of the risk involved.

Researchers have found a link between high number of foreclosures and mortgages made to sub-prime borrowers. The latter fell into the trap because their credit history was questionable. As such they agreed to any terms to somehow realize their dreams – have a house of their own. Little did they realize that they were mere stooges in the game of big money. The housing market of the country had hitherto appreciated, egged on by falling interest rates and liberal lending rules. This had gone on for five years only to slow down in some regions.

Another discovery was that mortgages made to first-time investors were being foreclosed. The U.S. Commerce department said that prices of vacant private houses had reached an all time high level. Many investors had bought properties with the hope of making a fast buck by selling it to a new buyer before the market reached its peak. However now the situation is that they can neither rent out or sell their properties without suffering heavy losses.

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Alabama Foreclosures - foreclosure listings include HUD foreclosures VA foreclosures government foreclosures bank foreclosures.

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