Posts Tagged ‘georgia’

Michigan ranked 6th in the country with 15,565 foreclosure in some stage of foreclosure or the other. It showed an 11% rise above July figures and a 126% high jump from the month of August in the previous year. The numbers tagged to Michigan are inclusive of 3,534 units that went into delinquency, 6,572 that received notices for trustee sale and 5,459 that had already been taken over by the bank.

In Wayne County the foreclosure versus household ratio is 1:87. It ranks 4th in the country. The highest is in Modesto, California with 1:79 during August. The five top rankers are Nevada, California, Florida, Georgia and Ohio.

What is causing grave anxiety is that these figures are just the tip of the iceberg. In the near future more foreclosure activity is expected when a sizable number of sub-prime mortgage loans will reset the interest rates.

The sub-prime debacle is a clear case of a dream that has turned into the reality of a nightmare. The scheme was launched to help those with weak credit to be able to avail of house loans and live under their own roof. But predatory lending on the part of lenders and greed on that of the borrowers made things go awry. After the honeymoon period of low monthly repayment plans when the rates began to adjust to higher figures the borrowers found it impossible to make ends meet. It most of the cases the rise was more than double. One by one the houses fell into foreclosure.
There are many factors behind the inability to pay increased rates. Firstly many had invested in housing units being sure that property prices could never fall.

Thus they expected a neat profit. But the opposite happened and there was not enough equity left to clear dues leave alone profits. Secondly initially the value of the houses had been inflated to expedite the process of a handsome loan. But with time the balloon burst and the real price showed up. Thirdly the income of the borrowers was not always correct and this led to the inevitable. Added to these was the usual cycle of death, disease and calamity of unemployment that might well overtake any family anytime. All these factors contributed to the landslide that is showing no signs of slowing down despite help from Washington.

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It is hard logical reality that in some way or the other foreclosures are affecting all of us. For instance let us first take the case of the elderly lady Jones who suddenly finds that she has to lose the house she has lived in for many years because of failure to meet enhanced mortgage dues for quite some months. Despite tears on her part and efforts on the part of rescue teams nothing could be done. She was evicted.

But where did she or many other Jones like her go? Nine times out of ten the only alternative is a public house or a federally subsidized rental unit. It is the ordinary citizen who pays for the subsidy and the upkeep of these shelters. It comes from the taxes – from the pockets of Tom, Dick, Mary and Jane.

Jones could leave nothing behind for her heirs despite years of hard work. Her heirs being her kith and kin are also low-income folks who further fall into the quagmire of poverty. This intensifies the polarization of wealth and divides society dangerously.

The sub-prime market with sharp rises in rates is the prime accused for this situation. It is not just the mortgage industry but the entire financial zone has become sore and infected. It is a scene out of a horror movie. There is no ready quick surgical solution for the gangrene that has set in. It does not mean however that one should sit back. Immediately clear and effective legal steps must be taken to stop once and for all such infamous mortgage deals. But it should not victimize the mortgage industry as a whole and throw away the baby with the bathtub in its zeal. Well thought out legal and official action is the call of the hour.

The next step is making the public financially literate so as to prevent them ahead from taking false steps. Here three questions arise. Who will advice? Is it compulsory? Who will pay for it?

Whatever the answer, the ball that has been set rolling regarding internal policing within the mortgage world and interacting with the borrowers must not be allowed to stop but rather it should be kicked to pick up more speed. Other venues of approach and suggestions should be tapped. The welfare of Jones and our interests are identical.

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The prostrate real estate market continues to get beaten. For the lucky few smart ones this is the time to pick up pearls from the messy pigsty. It needs sharp eyes, patience and exceptional foresight to reap profits from countrywide falling prices and foreclosure listings rising to historic numbers.

Gambling in a market that has gone down? The risks are enormous. Vultures are just waiting in the sidelines to tempt and lure the unwary into the trap of a golden tomorrow. ‘Fire sale’ strategy is known ambush tactics to cash in on temporary impulses of investors who are new in the line. James Saccacio, CEO of RealtyTrac strongly opines that at this juncture it is essential for investors in the real estate market to chalk out a long-term plan and carefully do the researching before purchasing.
Some practical hints and tips will be of invaluable help for the brave-hearts determined to wade into the murky waters of fallen markets. The first thing – here as everywhere – is knowledge. Knowledge is power. Glean a detailed knowledge of the region where one plans to invest.

Secondly – chalk out ahead step by step a plan of action that will work in the specific circumstances and then apply these as and when the situation arises.

Thirdly the foreclosure process must be made to work for the interested individual. Find out which technique suits you and your strong and weak points. The same medicine does not apply to all.
Fourthly, each deal must be given a detailed scrutiny. One should not get away with the false notion that foreclosure itself means that the property is a hot deal. This is actually far from reality.
Fifthly carefully pick and choose a team that you can rely on. Give specific duties suitable to their talents and experience. Do not overburden yourself. Be like the king with his cabinet ministers.

Lastly have a close network of connections with financial bodies. In a down market banks and lenders will be eager to sell as many properties as possible since they are overburdened with numbers. The pull of the market will bring down prices. The bottom line is strike at the opportune moment but do not be impulsive and hasty. The market scenario gives the buyer the upper hand but try to make the best deal. Many are investing and winning. Why not you?

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Bankers are watching and waiting with uncertainty the snowballing effect of the sub-prime tsunami crisis.

Even though April provided a breather by a dip of 1% in foreclosure listing, it was still up by 62% compared to last year. Even then it will be far above the average of last year. Statistics pouring in show a worsening of the situation. No one knows the actual number of active sub-prime mortgages, its source of origin or refinancing procedures in Northeast Minnesota and Northwest Wisconsin.

Risky loans had triggered off this crisis. Some of the biggest sub-prime lenders like Ameriquest and New Century Financial are toppling down.

Some regions of the country have remained untouched by this virus – Wyoming, Vermont, North and South Dakota, Mississippi, Delaware and Washington D.C. Topping the list are 10 cities of which six are in California. These six ranks first among the group of notorious 10. Las Vegas comes first. Others claiming this dubious distinction are Nevada, Colorado, Connecticut, Florida, Arizona, Illinois, Michigan, Ohio and Georgia. As a result of this fall out Michigan, Minneapolis and Ohio are reeling under massive layoffs.

Big national financial services are practically non-existent in some important regions. Yet sub-prime activity has been typical with apprehended results. Real estate businesses having taken a U turn, lenders are tightening loan conditions thus putting marginal borrowers in a soup. Their rates of mortgage interest are rising while the value of their property continues to plummet.

The situation is so alarming that Lutheran Social Services have come forward to provide pre-bankruptcy counseling in Minnesota and Douglas County. The sub-prime lending has hit not only the borrowers but also local banks and communities. A ‘teaser’ rate tempts the borrower to fall into the net. Later the net closes in on the catch with disastrous consequences to all but the lender-agent nexus. Sub-prime lending essentially steals business from smaller entities.

Authorities have come forward and tightening the belt of the law – a grim reminder that playing around with lending will attract felony charges coupled with compensation and damages. However it applies only to current frauds and does not extend backwards. Thus primarily the focus is on prevention.

Wisconsin is the only state that has no limits on interest rates. Pay-day lending has been rampant which many regard as an unhealthy drain on the economy. The heat is on to find a solution and save the people.

Via

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A couple fresh out of college had their hearts set on a hip part of Williamsburg, Brooklyn, but ended up on the Upper East Side.

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Homes on the market in Atlanta, Walker, Minn., and Florence, Ore.

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Spacious Home on Corner Lot in Quiet Cul-De-Sac. Enormous, Private, Fenced Backyard-Perfect for Kids and Pets. Fabulous Open Floor Plan w/ Cathedral Ceilings. Newly Renovated Kitchen with Granite Countertops and Stained Cabinets. Excellent Schools.

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Buying or selling a home can be especially difficult when dealing with an incompetent or disloyal real estate agent. Now, don’t get me wrong, I’m not out to knock realtors. I’m the first to admit that many agents are excellent and worth their weight in gold. However, most real estate agents fall into one of three categories: good, average or poor.

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