Posts Tagged ‘foreclosed’

Foreclosures are challenging Congress and as yet seem to be enjoying the last laugh. Democrat Rep. Tim Walz speaks about his own personal experience. The house next to his has been in foreclosure for more than a year and pulled down the value of his own unit by 20%. The story of Walz is being repeated all over Minnesota with the bursting of the housing bubble. Both Democrats and Republicans are harangued with complaints from community leaders about the rot spreading from foreclosed vacant houses. Leaders of both parties are huddled together sitting at the same table desperate to find solutions to tackle the common enemy.

The House and Senate have passed bills and more are in the offing. There are doubts if the Democratic led Congress will be able to come to terms with Bush administration and the President’s veto threat.

The House bill consists of three parts aimed at avoiding foreclosures with the hope of bringing back the mortgage market to its rails. It allotted greater powers to the Federal Housing Agency to be able to insure refinanced mortgages. On their part the lenders would have to reduce the amount of loan in tune with the prevailing market prices. Secondly the bill allows $11 billion as tax credits to buyers and mortgage holders who refrain form itemizing their respective tax deductions. This also includes the granting of $7,500 to new buyers. It allots to the state $10 billion for floating mortgage revenue bonds to help in the refinancing of sub-prime mortgages. Thirdly the bill made changes in the Freddie Mac and Fannie Mae mortgage companies that are federally sponsored.

Democrats together with a large Republican approval supported the bill but the numbers were not strong enough to override the veto threat. The critics said that it was a bail out for buyers by putting the market at jeopardy. Republican Rep. John Kline criticized the bill for doing ‘little to address the current foreclosure problems’. The market should be allowed to find its level. However he did not oppose other forms of assistance. Walz stressed on voluntary moves between lenders and borrowers. He did not want the blame game to sling mud at each other. His contention was that since the forest is already on fire something should be immediately done before arguing about who started it. The problem should be tackled keeping in view the interests of the borrowers, the mortgage industry as well as the market.

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By getting temporary freeze, Philadelphia has bared its fangs and is one up in the battle against foreclosures. The City Council allowed for enforcement of moratorium on house mortgages. The sales scheduled for April auctions were put off, said Curtis Jones, a city council person. He was one of the sponsors for the resolution and says that now his aim is to suspend the court auctions indefinitely. Economic justice is imperative so that people do not get thrown out of houses that are their homes.

The council legislation however is non-binding. It aims to give the residents time to work out alternatives with lenders. The Sheriff John Green as well as the Common Pleas Court President, Judge Darnell Jones gave their support for it to be implemented.

The legislation is not without precedent. In 2004 the City Council had called for the Sheriff’s intervention when 1,120 units were up for foreclosure sale. A stay was granted on the sales in Philadelphia. At the same time the Pennsylvania Department of Banking conducted a survey across the state. It was this study that has led to the passing of the legislation putting a hold on foreclosures.

In 1983 in another instance, the then Sheriff – Joseph Sullivan had successfully got a one year stay on approximately 300 units that were ready to be auctioned in the court.

A report released by ACORN says that 3,206 risky loans contracted in 2006 are likely to face foreclosure. Ian Phillips of ACORN commented that there is a difference between the suggested moratoriums this time and the previous ones. The former is the result of predatory lending and not a product of recession-like conditions. Considering the nature of the crisis strong intervention is necessary.

However Robert Levy of Mortgage Bankers Association of Pennsylvania holds a different view. He contended that it would drive the city lenders out and hike interest rates because of the risk involved regarding intervention from the authorities. In the long run this ‘onerous methodology’ will cause serious harm to the system. It is inevitable that this will take place when lenders are prevented from realizing their dues. Levy hastened to add that the association is keen to be involved in community programmes for financial education and counseling. He would also try to prevent the banks from leaving the Commonwealth of Pennsylvania as a reaction to these consumer protection efforts.

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The raging foreclosure crisis has put pet owners in a tight corner. The shelter and rescue organizations for animals are facing increased pressure, as more pets are being abandoned or surrendered by the foreclosed owners. The suffering animals have come to be termed ‘foreclosure pets’. Some are left behind either outside or trapped inside the doomed house. Few have been thoughtfully brought over to the local animal shelters. Under the changed circumstances the evicted persons neither have the will nor the power to continue to care for their pets.

Sarah Swanty of Fort Collins Cat Rescue comments that ‘those people really have no choice’ as they have lost the houses that were their homes. The number of cases are sharply increasing and keeping pace with the increase in foreclosures.

The Larimer Humane Society has not been particular about keeping specific records of pets abandoned because of foreclosures. Usually the reasons cited are ‘moving’. The people do not want to elaborate further most probably out of a sense of shame. It is the economy that is behind this deluge and the dumb creatures are paying for it. The responsibility for caring for these animals has shifted to the non-profit animal caring societies. But the latter have neither the infrastructure nor the funds to manage the increasing pressure of work.

It is difficult to find homes for the pets, as the economic condition makes few willing to come forward and adopt a pet. The older the age of the pet the more acute is the problem considering medical expenses. The animals that are over the age of two take a longer time to be adopted. Generally the potential pet owners prefer the sweet cuddly young ones rather than mature cats and dogs that have a mind of their own and cannot forget the past. An agonized Swanty said ‘it’s devastating when people with 13 year old pets call and want to get rid of them.’ Nobody wants to take on the responsibility of an old cat. Yet Swanty’s organization does not undertake mercy killing.

It is the same story across the country. Everywhere the animal shelters and like-minded organizations are facing the same problem. March and April found the least number of potential adopters. It has never been quite so low. Funds too were not forthcoming. Swanty is worried whether For Collins Cat Rescue will live through its second birthday.

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The hunting instinct has not gone out of vogue – is very much there with outward cosmetic changes. Today busloads of hunters are on a foreclosure safari – trying to target sitting ducks. It is a common scene now – also in Prince William County.

Real estate companies chartered a bus carrying 25 prospective buyers to view the thousands of houses afflicted by foreclosures. This was the first tour of its kind in the region. Mortgage attorney Art Grace told the hunters that they have a great chance to snap up a deal. The public here are not even aware of the gold mine they are sitting on. The bus touched on nine foreclosed units in Gainesville and Haymarket within three hours. There were town-houses and stand-alone houses with price tags ranging from $200,000 to $600,000. One house was practically brand new.

The idea of bus tours is catching on across the country with similar buses rolling in California, Nevada, Michigan and Illinois. These states have been worst hit by the foreclosure crisis.
The spokesperson of the tour operator (Long & Foster Realtors) in Prince William, Eileen Durkan said that hearing about similar hunting parties in California she decided to set the wheels rolling here also. California ideas always run eastwards. She decided to pick it up fast. Compared to other areas in the D.C region Prince William has been severely mauled by foreclosures. In Washington, Arlington and Alexandria metro zone there were 28,455 foreclosure postings in 2007 making it rank 41 amongst the top 100 metros of US. The leading cities were Riverside, San Bernardino, California with 102,506 listings. Los Angeles, Long Beach recorded 93,696 foreclosures.

Amongst the hunter tourists were novices, investors and people who were just curious and interested. While on the bus the passengers were given information about foreclosure hunting by a house inspector, house warranty agent and a loan officer. Information brochures were distributed together with water bottles labeled ‘Foreclosure Tour’. One participant commented that the idea was great and would have been greater if it had started earlier.
Experts feel that if somehow the market is made to turn around things will improve. Right now there are too many units and too few buyers. With more foreclosures in the offing more houses are expected to roll in. Buyers are in a fix sans loan facilities. So it is a no go situation.

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To turn a foreclosure auction into gain one requires patience and nerves of steel. Recently a seminar was held at Hotel Huntington Beach on foreclosures. The speaker, Hannigan, was a lawyer from San Diego who claimed to have traded in 50 foreclosed properties in 25 years. It is these investments that have made him wealthy. But Hannigan stressed that anybody listening to him would be mistaken to think that the route to wealth via gambling in distressed sales is as easy as it sounds. The prerequisites to end up with a success story are determination and grit. An orator of sorts Hannigan kept his audience engrossed. He stressed that dabbling in foreclosure auction is not child’s play but is a full time serious job.

The investor must first plan what to do with property after having made a thorough search about liens and deeds. A cashier’s check must be ready in case the bidder turns out to be the winner. Then one must be prepared for a shock because properties are often yanked off the shelves at the eleventh hour for many reasons – the main one being an agreement between the lender and borrower. This is all part of the foreclosure game.

Having crossed this zone if finally the buyer does land up with the property then other problems might pop up – the occupants might have to be evicted and extensive repairs might derail the budget.
Hannigan attracted both seasoned investors as well as novices beginning to toy with the idea. Jerry Tagliaferri is new in the field having just recently got a real estate license. The falling real estate market edged him on to try his luck at foreclosed auctions. He has been regularly attending auctions but comments that most of the foreclosed houses hardly get any bidders. It then becomes REO or property of the lender. The few units that do have some equity left over and above the loaned amount are fiercely fought over. Tagliaferri was lucky to win a four-hour free discussion with Hannigan. The latter usually charges $250 by the hour while training.

Another listener was Jim Pollina who drove down from San Luis Obispo County to listen to Hannigan for the third time. He was amazed to note that many people slipped into foreclosure even when there was equity on the house. The point is to spot these goldmines.

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The case of Kwaku Atta Poku has stirred up a hornet’s nest. Maryland Court of Appeals has heard the case of Poku. The process of foreclosure took his house away because he trusted his licensed agent, paid his refinancing dues but the agent never paid it. Maryland is famous for fast track courts – but here it worked fast for the plaintiff without giving the defendant time to prove his point.

Many judges connected with Poku’s appeal are worried that negation of the foreclosure sale of his house would have a negative impact on future buyers of foreclosed houses at auctions. Buyers need to be assured that after purchasing in a court sale, their title to the deed will be clear and not involve any lengthy legal combat with the previous owner.

At the root of the trouble is Maryland’s foreclosure rules that does not allow any time to the defendant and hurries on to a foreclosure sale.. Poku’s case was quickly disposed off within a month of filing. It can happen within 15 days also. Governor Marin has suggested that the time should be extended from 15 days to 45 days. The laws of Maryland do not even require the owner receives the notice. This is despite the fact that the US Supreme Court had ruled that such a notification is a must.

Against this background how will Poku and others like him get the time to prove that the lender is in the wrong? The next big question is – having proved his point what redress can he expect
By reversing and clarifying the previous rulings the Court of Appeals can now admit certain rights of Poku and other house owners like him. The court can make it clear that if the lender is in the wrong by foreclosing the subsequent sale of the unit shall not stop the borrowers from suing the lender or its representatives for damages. Such a ruling would not go against the banking system as a whole. It would ensure that such fraud does not recur. Lenders and their agents will now think twice before rushing on with the foreclosure process.

Such a balanced judgment would do justice both to Poku and the foreclosure system. Poku may not be able to get back his house but he can now fight for damages to compensate for his losses. This compromise will see to the interest of both sides.

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The real estate market of the Florida State has been the worst affected by the recent debacle that has clouded the markets around the nation. One of the worst affected real estate markets of the state has been Ormond Beach. Ormond Beach real estate properties have been dented with the downpour of Ormond Beach foreclosures in its real estate market. The beginning of the year saw more than 50 percent growth in the figures of Ormond Beach foreclosures from the previous year. The foreclosure market in the first half of this year followed the trend of the whole nation.

Many investors are having a belief that the real estate properties in Ormond Beach market are unsafe for the investments. During the first two quarters, it was noticed in the market that there was little investment in the market of Ormond Beach. With the coming of enormous number of Ormond Beach foreclosures and drop in the figure of investors, the value in the real estate properties of Ormond Beach automatically came down. The sellers of the general real estate properties faced a tough challenge from their foreclosed counterparts, who were putting the rates of Ormond Beach foreclosures on the mercy of investors.

However, experts at ForeclosureListings.com suggested that the situation in Ormond Beach is not for panicking rather it is a one were a little bit of smartness can earn excellent returns for them. According to them, the best place to start for a new investor or an experienced one in the current situation of Ormond Beach is Ormond Beach foreclosures. Currently, the best maintained property and located in the desired sites are Ormond Beach foreclosures. Again due to the desperation of the title holders of the properties, Ormond Beach foreclosures are available at the rates which are unimaginable and if calculated they are only a fraction of the rate in the current market.

Ormond Beach foreclosures have recently gained more popularity with more investors showing interest in them for using the property as a holiday home. These investors utilize this property as a rental home during the period they are not utilizing it. Again, there are other customers who are utilizing Ormond Beach foreclosures with their conventional strategy of reselling and earning instant profit from them. With all these profitable strategies, experts at Ormond Beach foreclosures feel that these properties can be utilized even better if the investor, who prefers selling them rather putting them on rent, should wait for a little while when the market stages its much awaited recovery for getting extra benefit.

As per the data collected by ForeclosureListings.com on September 3, 2007, there are 152 Ormond Beach foreclosures listed in the market at a median price of $176,250. The highest price of the available Ormond Beach foreclosures is $1,678,597 and the lowest rate is $5,266. This difference in the floor and cap price indicates that there are a variety of options still available for you. Do not miss this opportunity to earn extra cash in this falling market of Ormond Beach through Ormond Beach foreclosures.

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Once upon a time it was taken for granted that real estate prices would go up. But reality proved to be contrary. Sellers are being forced to drop prices even at a heavy loss if the unit was bought in 2005 or 2006. The housing bubble, which had been getting bloated since 2002, has suddenly busted. It was a fall out from the foreclosure fiasco. Credit began to slow down and so who would or could buy houses? The confidence of many was shaken. Who knows whether prices would further fall or not? So there is no point in investing now. Rather before things get worse it is better to sell off.

Research shows that some of the worst hit areas are east Contra Costa and Alameda Counties together with Solana County and even San Francisco. The infection seems to be spreading all round the Bay area. San Joaquin County tops the list of affected areas with 1 in every 27 foreclosing during the first half of 2007. This is the highest ratio in the entire country. According to another online survey the Central Valley recorded a drop of 7.7%. It is the high-end houses that are causing the median to rise. The regular homes will not be sold until completing all those in the foreclosure listing. It is the foreclosed units that set the rate. A buyer will look at the foreclosed one down the street and give that offer with a take-it or leave-it attitude. Some are just testing the market and thereby adding to the list.

A lot of difference can be made if owners are willing to cut prices but some are stubbornly not doing so. Neither do they want to initiate any changes in the house. One house on Brighton Drive, which had been bought in 2004 for $430,000, was being offered for $419,000; most probably that would have to cut down to $399,000. This is the general trend and not an exception. The main factor that is affecting the market is escalating interest rate. The entire Bay area is affected. Most probably this is because here the house owners lack long-term experience or cash reserves to tide over the crisis. In other places like Silicon Valley the picture is not so grim because the people have the income and store to tackle the problem.

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