Posts Tagged ‘nevada’

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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During the second quarter of this year the foreclosure rate in Utah is down in comparison to what it was the previous year. It remains far behind the average national figures where the number of foreclosure units is staggering.

Towards the end of the June 2007 there were only 0.55% properties in Utah suffering the trauma of foreclosures. It meant a drop of 0.74% in comparison to the figures last year during the same quarter. Among the lowest rankers in the foreclosure race Utah ranks 7th and sits comfortably well below the national rate of 1.40%. During the second quarter lenders began to foreclose on 0.65% of USA mortgages – which was an all time record. In Utah the rate was only 0.29%.

Analysts opine that this is primarily due to the relatively strong economic health of the state and also because there has not been much sub-prime activity.

Delinquent loans are those that have dropped behind their payment schedule by 30 days. In this group Utah’s dropped by 3.45 % in the second quarter this year. This was a considerable drop by 3.56% in comparison to the same months in the previous year. Utah’s average was well below the national figure of 5.12%. California, Florida, Nevada and Arizona are the leaders in the slanderous race. There has also been a decline in 34 states. Except for the big four the increase in other states has been minimal. The big four with have been in the doldrums for quite a number of years.

The early years of the new century saw frenetic activity in the housing market. There was a great demand for loans. To satisfy all, risky loans were doled out willy-nilly. But during this time Utah had been relatively flat and staid. It was only from 2004 that some flutter took place in sub-prime lending but it was never much to sing about. The job market was also upbeat. People did not run out of funds and as the economy attracted more job seekers from outside more buyers were available. Another factor behind the sunshine is the relatively high valuation of property. This meant troubled borrowers would get some equity left over even after paying their dues, and start life anew. Of late however property rates have started to fall making it difficult to benefit from a quick sell off.

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If President Bush has his way then the residents of Las Vegas victimized by the foreclosure crisis will heave a sigh of relief. The President does not think it is a bail out operation to help lenders and speculators but is meant to help borrowers who are in the soup worried about the roof above their heads blowing away.

Christine Young based in Henderson is just one among the many boiling in the cauldron. Her property unit consisted of a 2,000 square feet four bed roomed house. About a year ago she had refinanced it under the impression that she was moving into a fixed mortgage scheme. But that was not so in reality. Within a year the ARM shot up beyond her means. It is $700 more with the due date of 1st September looming ahead. Christine squarely puts the blame on predatory lenders. They shrewdly trapped her to sign a mortgage that she had tried desperately to avoid. The smart ways of the mortgage agent made her gullible to his sales talk. At that time she thought him to be a nice honest fellow.

There are thousands of Christines across the length and breadth of the country ready to tell the same tale.
Nevada ranks first in the foreclosure race. The filings have gone up by 93% from what it was the previous year.

Last Friday President Bush detailed steps the federal government would take to help the besieged borrowers. He repeatedly assured that his focus was not to save the lenders and speculators who are also in the red. He emphasized that this operation will give Americans with a good credit past, but cannot bear the burden of recent rises, to refinance into FHA mortgages that are insured.

Pam has yet another story to tell. She had put her house on the market shelves many months previously. She was hoping to sell before the house foreclosed. In this way of direct selling she calculated on cutting down her losses. The initial asking price was $389,000 but now she has climbed down to $299,000. It meant her losing $90,000. Even then she would be lucky to sell it off right now without further loss.

The plans of President Bush will not help the Christines or the Pams because even if sanctioned it will not come fast enough to stop more heads from rolling.

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In the first five months of this year countless house owners felt the sting of foreclosures. But expert McGee, president of foreclosures.com opines that numbers are confusing. It does not necessarily mean that the national economy is floundering.

The Mortgage Bankers Association is echoing these sentiments. Except for few states the overall foreclosure numbers have dropped during the first quarter of 2007. In fact soon figures will be released showing that compared to the last ten years the foreclosure numbers would have been well below the average if it had not been for big increases in few states – California, Florida, Nevada and Arizona. Amongst them Nevada tops the list at all stages of foreclosure.

The first stage is that of pre-foreclosure filing. A notice is issued stating that the property is now in foreclosure for the loan is unpaid. In the second stage the notice of auction is given fixing the date. In some states like Arizona the two stages are taken as one. The third stage is REO or real-estate/bank owned is the final one when after the auction the property is handed over either to the new owner or returned to the original borrower if the latter has been able to meet his dues.

McGee stresses that the real villain of the piece is the first move when people buy houses, which they cannot really afford. The hope was that the prices of real estate would rise but when this did not happen the reality was harsh. Interest rose and there was no other alternative but to go for foreclosure. Statistics can be confusing because the same property can account for multiply filings at each stage of the process. That is why the per capita analysis of McGee is much more precise.

The rising numbers of foreclosures is indeed sad but it should not lead to mass hysteria about national collapse. In the long term this will not happen just as it did not do so during the last crisis in the 1990’s. The numbers must take into account millions of those who meet their mortgage dues regularly. 69% of USA citizens live in their own houses, as per census numbers. The truth is that foreclosures are only small portions of total US mortgage debts and not everyone, even in the sub-prime zone, defaults. Federal Chairman Bernake agrees with this view.

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Do you want to make hay while the sun shines? It is the best time to buy a house at dirt-cheap rates. One the one hand developers of new houses are slashing their prices and on the other one after other properties are coming under the hammer of foreclosures. While some regions are still untouched other states are bearing the brunt of the waves. California, Nevada, Colorado, Florida and Ohio are heading the list. There were 39,659 foreclosures in California in the month of May alone.

RealtTrac, a data based company says that in May the foreclosure market made a 90% jump. It was a 19% increase from what it was in April. This is the highest peak touched since the company started tracking figures from 2005.

In April there had been a hardly noticeable fall but that was just the lull before the storm. The foreclosure tidal wave came back with redoubled ferocity, says Saccacio CEO of RealtTrac. What is more – the worst is not yet over. Spring is the traditional time for buying. So if this is the trend now, what is going to happen in the months to follow? Perhaps there are still some communities that have not yet been infected with the virus but the danger is lurking. Shadows are lengthening. This silent pressure is telling on the market and the general health of America’s economy. There are no signs of improvement but rather the situation is slipping out of control.

For quite sometime Americans have been wallowing in the hysteria of consumerism – flat screen television, exotic holidays, dream houses, flashy cars and luxurious renovations to old homes. Banks and finance companies inculcated the borrowing and spending psyche into the mindsets of the people so that money began to flow like water. Money began to circulate like never before. Sub-prime lenders took advantage of this to rope in borrowers with low credibility into their mortgage nets, knowing fully well that they just did not have the means to repay the loan.

Now the financial mess is coming back to haunt the perpetrators. America is reeling under the indigestion that follows over eating and gluttony of consumerism. The ailment is getting worse. There seems to be no panacea in sight. But Man lives by hope and hope alone. Read ‘Storm-Proof Your Financial House’ if you do not want to sink with the ship.

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Mortgage disclosures keep many clauses carefully confused. This is the opinion of Federal Trade commission’s Bureau of Economics. With changes here and there borrowers could get a much better deal.

A serious study was made of 800 mortgages covering 12 areas across the country. Half were given current mortgage disclosure forms and half given other forms, which were easier to understand. Participants were queried on two hypothetical fixed rate mortgage loans regarding costs, terms and comparison. Approximately a 5^th of those who took the first set of forms could not pinpoint the annual percentage rate of the loan. This being the cornerstone of the issue how was it possible for them to compare? Another 5^th could not calculate the exact amount of cash due at the time of closing or even the monthly instalments. Questions about escrowing for taxes and insurances remained unanswered. About a quarter couldn’t be definite about the settlement amount charges and a third was confused about interest rates. A third of the participants remained ignorant that the loan was inclusive of a huge inflated payment or that the loaned amount also carried with it settlement charges. As many as half failed to spot the loan amount itself in the current forms. In the other set of forms mortgage costs were clearly outlined while less important or confusing trivialities were left out. The language was easy and borrowers were able to distinguish clearly the various segments in costing.
The results were electrifying and hopeful of a fresh start. It was an eye-opener into the endemic confusion reigning in both the prime and sub-prime borrowers. Only 61% could give a correct answer to those questions related to the current form. But 80% were successful in those connected with the prototype forms. In every way the second lot looked pointed to a hopeful future in the world of loans.

This survey apart, 36 interviews were taken of customers who had recently undertaken mortgages. Most of them were not clear about costs and terms. The scenario is not surprising considering the fact that forms in circulation had been introduced as far back as 30 ago! No wonder even simple loans are not understandable! These forms do not take into account the modern complexities of mortgages. Better forms might not totally solve the problem of frauds but it will go a long way to forewarn the borrowers about the pitfalls.

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Looking for homes at a cheaper rate? Then you’re in the right place. America’s present housing market apart from persuading the property owners to sell them at lesser rates is also causing the increase in the number of foreclosed properties to go up in sale.

Records state that a U.S. based real estate has leaped over to 90% in a period of one year. The foreclosures in the month of May are 19% more than that of the previous month. The highest record of foreclosure filing was recorded in the month of May by Realty Trac. It is said that in two years time this was the only month with so many foreclosure filings.

After a fall in April, foreclosure rose back incredibly in May. This is according to James Saccacio the Chief Executive Officer of Realty Trac. And this is not all. It is going to get worse. Strong activity like this in the middle of buying season could indicate higher levels of foreclosure in future. He says that all communities within the nation is not experiencing increase in number of foreclosures but properties that are foreclosed are becoming very common and is becoming the reason for fall in home prices.

Few states are being affected more than the others. States like Nevada, Ohio, Colorado and California are leading the nation with respect to foreclosures. In the month of May alone, there were 39,659 homes that went into foreclosure in the case of California. This huge leap in the number of houses falling into the foreclosure is only indicating that the economic status is going to worse in times to come. Millions of Americans are immerse in the luxury of exotic vacations, sophisticated homes, fashionable cars, flat screen televisions and renovating homes. This attitude of spending was instilled in them by creative housing sectors that were also inexpensive.

Finance establishments and banks designed attractive loan schemes to encourage them in buying expensive properties or at least in using the equity off their existing houses. As a result there was a flow of credit. Irresponsible lenders gave money to people who they knew would not be able to pay them back. This is now leading to fall in prices of homes and America’s Materialistic attitude is going to come to an end.

For some suggestions on stabilizing finances secured financial status, we recommend you to read “Strom-Proof Your Financial House”!

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Statistics on Colorado foreclosures, on Tuesday, were largely at variance with one another. According to one online source the number is up but another one says it is down. The difference between the two figures is quite considerable and therefore confusing.

According to Bargain Network the foreclosure listings was 8,662 – that is about 3% drop from the previous month. The rate works out to one foreclosure for every 211 properties. It placed Colorado fifth in rank. In April Colorado was fourth with the foreclosure number touching 8,907. It was a considerable 22% decrease from March.

But the national picture is that listings jumped to 6% from April with 149,000 properties ready for the anvil. In November 2006 the number was 108,000. This meant an increase of a staggering 38%.

The states of Colorado, Florida, California, Texas and Illinois have the distinction of being responsible for 59% of all the foreclosures in the country. Among these Florida comes first with 29,820 houses waiting to suffer the process of being foreclosed and auctioned. Texas comes third with 11,012 units marked to be doomed. This means that on an average Texas has one foreclosure for every 732 houses.

Most of the activity in the foreclosures– that is about 87%, centred on single-family houses. 75% comprised of the market in condominiums and town-homes. The remainder was about commercial units, land, mobile homes, multi-family and the like.

A second rival company that deals with real estate, Realty Trac Inc. in Irvine, California came out with contradictory reports later on Tuesday. In its report the number of Colorado foreclosures is up by 8.5% in comparison to last month – that is April 2007. Realty Trac went on to add that Colorado listings number 6,321. This means only one out of 290 units is under the cloud of foreclosures. Nevada was rated as having one foreclosure for every 166 properties.

Realty Trac has come under criticism for doing the wrong counting. It now plans to revise its method of reporting of putting together in one basket all the foreclosures. It will now break it up and give a step-by-step statement of how many units are moving through which stage of the foreclosure process. Foreclosure is a lengthy process and does not involve one quick move. By next month the new Realty Trac figures should be available to enable analysts to assess the situation from different angles.

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