Posts Tagged ‘Foreclosed House’

The potential buyers of houses roll inside the buses and see for themselves the realty of the real estate market today. The bus rumbled down Peyton Drive in North Dallas and the passengers peer out the windows looking at the innumerable ‘For Sale’ signs. Ms Langevin has organized the trip and has her image loud and clear on three sides of the bus. This is a regular routine for the 22 seat bus as it frequently halts for clients to off load and see for themselves the realty of the times – countless foreclosed houses begging to be sold. The half day trip halts at eight or nine points near houses that have been taken over by the banks. The units are victims of the wave of North Texas foreclosures that still seems to be rolling and raging.

All kinds of houses are ready to be sold – from the brand new to the vintage beauties. The price of one elegant two storey unit came down from $1.1 million to $795,000. It seemed impossible that such a house should have been in foreclosure. Langevin says she got the idea of these bus tours from similar ones being conducted in California. She advertised over the Internet and by late February set the tours rolling. Most of the passengers are first time buyers who had come from outside. Many renters were keen to buy a house while there were others we wanted to climb up the comfort zone of life and living. Langevin gives a running commentary as the bus moves on informing the interested about the houses being viewed. One couple had no definite plans – they had just come to see for themselves the foreclosure scene. The passengers talked amongst themselves and exchanged pros and cons about foreclosed deals. Each had something new to learn.

Banks are desperately trying to lighten their load of repossessed units and this has opened up opportunities for many who can avail of it. But one thing to bear in mind is that buying a foreclosed house is buying the problems as well. The door closes for one but open out for another. If the houses are sold the market might come back to its tracks and bolster the economy. There are many who are now dreaming of converting a fantasy house into a real home – something that ordinarily would have been well beyond their means.

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In the lonely neighbourhood two large turtles were rescued from an abandoned foreclosed house in Discovery Bay. The turtles were lucky to be adopted by some school children. But one pit bull puppy was unlucky – it died tied to a fence in a backyard of Pittsburg. If people cannot survive the foreclosure attack what of the fate of the animals who are their pets?

Cecily Tippery specializes in foreclosed units is now busy rescuing abandoned pets from deserted houses. Right now they have their hands full taking care of a generous number of pets – all hit by the foreclosure wave. In a house in Antioch the group found a dachshund, beagle and Chihuahua huddled together with a dead turtle. In an Oakley house the only occupant was a Calico cat. Another house was crawling with a litter of kittens.

Abandoned pets are another grim aspect of the foreclosure crisis. More stories pet and foreclosure related stories are coming up from across the country.

In Ohio the animal welfare groups are in a huddle trying to find space for an increasing number of abandoned pets. In Arizona concerned pet lovers have set up an e-mail network to find homes for the foreclosed-pets. Stockton is at the centre of the foreclosure and Michael Parker an officer in animal services is a worried man. Thousands of evicted families have temporarily forgotten their pets.

So far there has been no detailing of the abandoned pets – unfortunate victims of the foreclosure fiasco. Stray news are pouring in but the problem is beginning to get attention says Paul Bruce of Humane Society of US. The problem can be understood. New landlords taking in tenants are often averse to pets. Many of the pets left behind by the foreclosure wave are too old or sick. They do not have veterinary records. Tippery falls within a ‘no-kill’ zone that makes the problem difficult to solve.

Contra Costa and Antioch do not have no-kill pet shelters. Agents are not happy about sending them there. The local rescue bodies do not have the funds to finance vet care for the abandoned pets. But work is underway by animal lovers. Individuals have paid for health checks of these foreclosure victims and they are hunting for adopters in an organized manner. It is heart wrenching to see not just toys left behind but living animals in houses that were once homes.

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Mortgage Bankers Association announced that during the third quarter of this year foreclosures have reached an all time record peak since 1986. Economist Campbell speaking with staff writer of Newsday, Wagner, said that this will have a wide impact on the general economy. It will affect all house owners and not just those branded as foreclosures. He is however optimistic that by the following year the real estate market will get back on its rails. Housing market is tossed around by several factors.

The foreclosed house usually ends up in the court auction. The lenders, who are usually the banks, do not want to sit on these units. That is why the banks are not motivated by high price. They are willing to settle for low prices and this tends to push down the general real estate market. There are more houses in the market than ever before – thanks to foreclosures.
The general story in the housing market is that for every buyer there is a seller. When a buyer sells a unit he or she usually does so to buy another house. But in the case of foreclosure an owner in distress is selling the house. A loan is being paid off. This does not leave anything left over for buying another house. Thus too many foreclosures lead to imbalances with the supply being more than the demand. This causes prices to go down and has far reaching implications for the economy starting with the immediate locality.’ For Sale’ signs dotting the region make the neighbourhood looks eerie and abandoned. Criminal activity sets in. Nature hates vacuum. With development pausing, labourers and builders find themselves without work. Suppliers and others connected with house décor suffer. It sets of a chain reaction that touches adversely each corner of the regional society and economy.

However the housing sector will recover opines the esteemed economist. There is a silver lining in the cloud. The sub-prime sector in the mortgage industry might be in the red but the prime category is still alive and kicking. It means that those with reasonable levels of income and can invest in a small down payment can still avail of housing loans. By next year things may stabilize although it is unlikely that there will be a housing boom again. Unless there is a general economic recession the market will become healthy once more.

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In five years no foreclosed house has fetched such a handsome price. In Hunting Hills a sprawling mansion has brought in $870,000 for the lender who took possession of it from one William Crick, in a foreclosure sale – a record for Roanoke region in five years. The average value of this type of property in this locality is anything between $60,000 and $100,000.

Crick is one among many why are losing palatial dwellings. Crick had taken a housing loan from Wachovia Bank on the understanding the initial payments would include only the interest. Later the rate would be adjusted. The newly built unit on 6,000 square feet had a movie room, spacious master bedroom and garages above and below ground level. Crick’s monthly payment for $909,950 property was $4,597.14. He could afford the high amount being general manager of one of the renowned companies in the automobile industry, Berglund Chevrolet. His income was $20,000 per month. But suddenly his dealership came to be terminated in early 2006 for unknown reasons. Immediately he put up the house for sale. At that time it was a seller’s market. In December 2006 he filed for bankruptcy listing debts amounting to $1.3 million more than whatever assets he had. In the end of August the bank put up the house for sale in the market. The estate was in a sorry estate with tall overgrown grass. The inside of the house was however in shipshape condition. All that was required was mowing down the grass to make it ready for the showpiece sale. Each house has a story to tell.

Foreclosures are surging through the nation with the highest waves hitting Virginia. Here it was up by 300% in July and 900% in August as compared to the same months in the previous year. Across the country the gain was 115% against 2006.

The foreclosure process consists of four steps. First the borrower goes into delinquency by being unable to pay monthly dues. The lender then sends foreclosure notice. This is followed by auction sale and repossession. There are many reasons why the borrower stumbles – unforeseen medical expenses, job loss, divorce etc.

But these cannot account for the tsunami that is surging through the country. Under the foreclosure lash houses are falling like ninepins. The accusing finger points straight at the sub-prime lending sector for this fiasco.

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Stockton has the dubious distinction of ranking first in the foreclosure race with 8000 foreclosures this year. Stockton has a population of about 300,000. One in every 27 houses has slipped into foreclosure. The highest concentration is in Weston Ranch region of Stockton. The figures have been released ACORN, a non-profit organization. The inhabitants belong to the middle-income category for whom it was a bolt from the blue.
People dreaming about house ownership had been lured into the sub-prime mortgage by predatory lenders. The costs of the houses were inflated to expedite loan procedures. Many walked into the trap with the sure hope that real estate prices could never fall but would only rise.

The Weston Ranch streets are dotted with sale signboards standing on overgrown gardens. The victims have just disappeared leaving food on their tables. The remaining neighbours are infected with this gloom of auctions taking place all around. People are getting a double beating. Moving out of his own foreclosed house one person became tenant in another house. But soon the second place of shelter too was gobbled up by foreclosure.

Agents dealing in short sales and rentals are doing brisk business. This is a positive way out for harassed owners to save some credit and avoid the stigma of foreclosure. By an arrangement between the lender and the borrower the house is sold off at a price, which will bring in less the amount than what is owed. Rental business has gone up with people shying away from buying properties. Right now there are very few buyers. Properties are sleeping three times longer than it did last year. The average price has plummeted by 10%. Right now there are 350 houses waiting in the line to be sold. At the present pace it will take another five years for this to happen. The general prediction is that the weather will not clear till 2010.

A spokesperson of a Stockton non-profit organization opines that at the root of the matter is ignorance of the buyer about mortgage and other matters related to property. The borrowers must be educated about the law and the terms of the agreement to avoid pitfalls. Being forearmed is to be forewarned! The goal is to try to help the weaker section to have a roof of their own. But the thrust is on the point of affordability.

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