Posts Tagged ‘new york’

The ordinary American – the taxpayer – is furious about bailing out foreclosure victims. The government however did not consult them when committing their money to bail out those who had failed to keep their mortgage commitments and were facing foreclosure. Taxpayer’s dollars – billions of dollars are being used to guarantee loans through FHASecure and Hope for Homeowners and refinancing. The taxpayer’s views were not taken into account when Fannie Mae and Freddie Mac launched on a new ‘streamlined modification programme.’ Reports are coming in that money allotted for TARP will be similarly used.

Those taxpayers, who did not buy during the housing boom, were not tempted by dubitable deals and those who remained steadfast in paying their mortgage dues are furious for being sidelined. They never spent beyond their means and yet it is their money that is being used to bail out those who did.
Jay Black is a tenant in Queens, New York. He angrily comments, “All these idiots who bought homes they couldn’t really afford are going to be rewarded with loan modifications, but what about those of us who didn’t make stupid decisions? I could have purchased two years ago using an option AM, and now the government would be paying to reduce my balance. But I didn’t. What the hell do I get?”

Alice English lives in Highland Falls, New York. She too is furious. Alice used to annually earn $45,000 but did not purchase a house. She bought a mobile unit because of her budgetary constraints. She never opted for anything she could not afford. But suddenly her financial condition has worsened because of job problems. Now she may lose her home for lenders have no time to talk with borrowers who have no income. English is angry beyond words as her credit ratings are going out. She bemoans that the government is going to bailout big companies and the “idiots who took an ARM who knew they couldn’t make those payments.” But she is left forgotten without a job, or help while “billions are going to help those who created this problem.” The foreclosure victims are being bailed out because of the far-reaching consequences of foreclosures Delinquencies have shot up to astronomical figures causing house prices to tumble. It may be unfair to help some house owners while ignoring others but there is no other alternative before the policymakers and administrators. This is the only way the economy can be prevented from falling further.

Search Foreclosure Listings

• New York Foreclosure Listings
• Albany Foreclosure Listings
• Buffalo Foreclosure Listings
• Fulton Foreclosure Listings
• New York City Foreclosure Listings
• More Foreclosures For Sale

Search Images

It is the same story right across America – foreclosure sales are becoming more and more popular. Of all the properties in the market, a third come from the foreclosure zone. Most of them are bargain deals with banks offering heavy discounts. This is pushing down the real estate market prices to unprecedented levels.
A popular way of attracting potential buyers is conducting foreclosure tours. Brokers in buses take round the interested to view for themselves the innumerable foreclosed bank repossessed houses. One such tour operating company is The Long Island Foreclosure Tours. It made its entry early this year. David Farrell is a partner. He said, “Every day you see an increase in the share of the market that is foreclosure business and that is why we started this and got involved.” He points to the many vacant houses and comments that the banks are in urgent need to sell them quickly. The market for foreclosed houses is growing. The banks now own a third of the houses on the shop shelves in USA! For those with funds the market is for buyers.
Andrew Hutchinson is one of the buyers on the bus tour. He takes this as a chance to move up in society. Foreclosures are giving him a chance to shift to a better locality and climb more ladders. The taxes might be steeper but that is a small price to pay for moving into a house one could not previously afford.
One of the houses on view is a spacious property having an outhouse. It is sitting on one of the posh localities of the area. In 2007 the value of the house was more than $1.2 million, but the bank bought it for a little over $ 1 million. Today the asking price is $699,000 – calculating to a discount of about 50%. The irony is that had the prices been lowered earlier there was a chance that the original owners would have been able to retain the house that was their home.
The administration at all levels – local, state and federal, as well as the communities are working to stem the tide of foreclosures rushing in so that the people can stay on. But critics are saying that the measures are all too late to have a sizeable impact on the crisis.
The credit crunch has hit the advertising world and consequently the message is not going around of various workshops and seminars being held to help the foreclosure victims.

Search Foreclosure Listings

• New York Foreclosure Listings
• Albany Foreclosure Listings
• Buffalo Foreclosure Listings
• Fulton Foreclosure Listings
• New York City Foreclosure Listings

Search Images

A casual glance into what is going on behind the scene of the much hyped rescue measures to bailout the nation from the financial crisis will show that the same foreclosure story is about to rerun, if steps are not immediately taken.

In Melville New York is located Lend America. It makes itself known through infomercials and toll free numbers. Borrowers in foreclosure trouble are encouraged to refinance and take fixed-rate mortgages that are guaranteed by FHA. Lend America had anticipated this foreclosure crash and had changed business tactics from 2005 by shifting over from peddling sub-prime mortgages to those backed by FHA. At the helm of this brilliant move is Michael Ashley. This year the firm will be advancing 7,500 loans amounting to a total worth of $1.5 billion. Ashley confidently said, “FHA is a big part of the future. It’s the major vehicle for the government to bail out the housing industry.”
It is strange and perplexing that the federal government should work in tandem with Lend America. Ashley has an uncomfortable past of legal wrongs. In 1996 he pleaded guilty in court in Uniondale New York on two counts of fraud related to mortgage scam of another company run by his family under the name of Liberty Mortgage. He was fined ($30,000) and sentenced to probation (five years). Kenneth Ashley, his father has the dubious distinction of having served a jail sentence of four years. Younger Ashley, now aged 43, defended himself and said, “ I was just a pawn in a chess game between my father and the government”. The current default rate of Lend America’s FHA insured loans is 5.7% or 53% - much higher than the national average.
Lemar Wooley of FHA was asked about overlooking the transgressions of firms that had formerly dealt with sub-prime loans. He replied, “FHA has taken appropriate actions, where necessary, with these lenders with respect to their participation in FHA programs.” According to him First Magnus, Lend America and Nationstar have all met the conditions laid down by federal rules. He however admitted that since 2000 on two instances, Lend America lost its right to issue FHA backed loans because of increased default numbers. Wooley also said that he did not know about the previous convictions of Ashley. Lend America had not projected Ashley as a major representative of the firm. As per rules the lenders working under FHA are expected to disclose past sanctions and not to employ personnel with criminal history.

Search Foreclosure Listings

• New York Foreclosure Listings
• Albany Foreclosure Listings
• Buffalo Foreclosure Listings
• Fulton Foreclosure Listings
• New York City Foreclosure Listings

Search Images

For almost a year, foreclosures in New York had been increasing. This trend was reversed this third quarter ending in September when filings for foreclosure in New York fell by 10 percent. By a new law, people in New York can work extra 90 days to keep their homes. However, similar laws implemented in other states showed an initial drop in foreclosures but subsequently there were sharp increases. So, this could just mean delaying foreclosures and nothing more than that. This was opined by Rick Sharga. Sharga is vice president of marketing at RealtyTrac Inc., a foreclosure listing service. RealtyTrac. Inc. compiled foreclosure figures released by the state Banking Department. Under the new law, which was enacted in New York on 1st September, lenders wanting to start foreclosure proceedings have to wait for 90 days, which gives the indebted homeowners time to think of possible solutions to their debt problems.

In the second quarter there were 16.025 foreclosures in New York. This figure has gone down to 14,477 in the third quarter that was closed on 30th September. This decline has been attributed to the new law.

However, State Banking Superintendent, Richard Neiman, is cautious about passing judgment too soon. According to Neiman, the figures for the third quarter do not tell the true story. The foreclosures figures for the next quarter are expected to be a better indicator of the true picture. The figures for the fourth quarter ending in December will include foreclosures, which have been filed after the new waiting period of 90 days. Many homeowners are just using this grace period to delay filing for foreclosure. In other states there have been sharp increases in foreclosures immediately after the waiting period. In Massuchusetts, for example, after an initial decline in foreclosure rates after implementation of the new law, there was an increase to 465 percent after the expiry of the initial period.

In California, lenders have to contact borrowers a minimum of 30 days before filing for default. In North Carolina borrowers get an extra 45 days. Whether such laws will effectively stem the tide of foreclosures remains to be seen. In most states, New York included, there are no regulations under which lenders have to restructure the loans.

These new steps are only directed at dealing with the symptoms, and not addressed at the cause of the problem, opine experts such as Sharga and others.

Search Foreclosure Listings

• New York Foreclosure Listings
• Albany Foreclosure Listings
• Buffalo Foreclosure Listings
• Fulton Foreclosure Listings
• New York City Foreclosure Listings

Search Images

Queens is the epicenter of the foreclosure crisis in New York. Councilman Joseph Addabbo (Democrat) is trying to focus on a stalled bill that will address the problem of vacant foreclosed houses.

Anjad Brijlall’s garden stands as a watered oasis in sharp contrast to the eerie vacant foreclosed houses in and around the street. Refuse and weeds strangle each other. Brijlall explains that no one has been living in these units for the last six months. He eagerly looks forward to having neighbours.

Addabo is vying with senior Republican Senator Serphin Maltese. The latter came in for heavy criticism for failing to push ahead with a bill that would permit the city to go ahead with cleaning up of foreclosed houses and then send the bill to the banks who are now the current owners. Addabbo bemoaned, “As the foreclosure crisis spreads, we’re seeing a ripple effect as property values plummet and surrounding neighbourhoods experience an increase in quality-of-life issue like graffiti and crime.” He was speaking in front of a vacant foreclosed house in Ozone Park.

Scoot Reif speaking on behalf of the Senate leader of the majority, Dean Skelos observed that after talks with Governor Paterson, a compromise bill had been passed in June. As per its terms the banks were to give 90 days notice to the borrowers before proceeding with foreclosure.

Addabbo however showed a report that showed Queens to be saddled with 9,297 foreclosed houses – amounting to a third of similar filings. The figures were given by reliable data provided by Center for Responsible Lending. Foreclosures had brought down the value of 411,929 houses in Queens – the amount in monetary terms totaling to $12 billion.

In one Senate District (15th) that extends from Maspeth south to Howard Beach are concentrated 14% of all bank-repossessed houses of the borough. The spokesperson of Maltese, Kristin Lord, argued in favour of the steps taken by the Senate in addressing the problem of the foreclosure related crisis. She cryptically remarked, “The Senate has been dealing with the sub-prime mortgage crisis long before Joe Addabbo got involved. We are trying t keep people in their homes.”

There is a strong opinion that the minorities and especially the Afro-Americans have been targets of the predatory sub-prime lending. Loans were forced on them by slick talking mortgage agents and now today they are the unfortunate victims of the foreclosure crisis that is throwing them out of the houses that are their homes.

Search Foreclosure Listings

• New York Foreclosure Listings
• Albany Foreclosure Listings
• Buffalo Foreclosure Listings
• Fulton Foreclosure Listings
• New York City Foreclosure Listings

Search Images

Not having satiated its appetite with the houses of the middle and low-income group, foreclosures are now stalking elite neighbourhoods. On Greenwich Road in Bedford a ranch house with peeling paint and the looks of disrepair is very much out of place considering the locality. But foreclosures respect nothing. Broker Mark Boyland comments that there is nothing typical about foreclosures today as no community is safe from its tentacles.

The average household income in Scarsdale is $217,000 – it being one of the steepest in the country. Here too 57 houses are in foreclosure. The foreclosure rate is 1:254 according to RealtyTrac.

There are 201 units in trouble in White Plains with a foreclosure rate of 1:133. Looking at the exterior of a well looked after colonial style single-family house valued at $1 million it is difficult to gauge that the owner has been defaulting for the last six months. This has not stopped him from collecting $8,000 as monthly rent said Boyland.

Rick Sharga quipped that except perhaps for the White House, there is no corner of America that is not directly or indirectly affected by the foreclosure crisis. Foreclosure menace is nothing new in American history but what is unique this time is that high priced houses are also under its shadow. There are not too many of them because the highest concentration of foreclosure is in the low-income neighbourhoods.

In Westchester the maximum number of foreclosures are in Yonkers with 655 houses in foreclosure and a rate of 1:107. The second place is occupied by Mount Vernon with 519 units facing foreclosure and a rate of 1:53. Port Chester has 128 houses on the foreclosure listing and a rate of 1:128.

In Westchester till 1st September there have been 2,984 foreclosures. The foreclosure rate is 1:119. It can be compared to Queens where there were 10,654 foreclosures and to Suffolk that had 9,091 listings. In Westchester there has been an 11% increase from August 2007.

The fear is that the situation is going to worsen in the near future predicted George Groves of Re/Max Prime Properties, Scarsdale. However the sun is shining for some who are busy making hay. The investors are making full use of the drop in the real estate values but it involves tons of hard work. Nothing comes easy. Not every broker is successful – it needs specialized skill and experience to deal with foreclosed houses.

Search Foreclosure Listings

• New York Foreclosure Listings
• Albany Foreclosure Listings
• Buffalo Foreclosure Listings
• Fulton Foreclosure Listings
• New York City Foreclosure Listings

Search Images

Taking into account the picture in Queens, foreclosure-housing woes seem to be related to greed rather than the race factor. Greed seems to have blinded many and nowhere more intensely than in Queens. This borough of New York has been worst hit by the raging foreclosure crisis.

In August 2008 foreclosures here increased by more than 45% from July 2008. But in Brooklyn, Staten Island and Brooklyn foreclosures went reverse gear and dropped by a generous 29%. Queens seems to be the first in the race to the bottom.

According to the findings of Neighborhood Economic Development Advocacy Project the houses at risk from foreclosures are concentrated in South Jamaica, Woodhaven, Springfield Gardens and Cambria Heights of Queens borough. Parts of Corona are also badly affected. This has led to much talk among the politicians that the minorities have been special targets of the foreclosure crisis.

James Sanders (Democrat) who is a City Councilman commented, “This could be the single greatest loss of black wealth since the Great Depression; the greatest loss of Asian wealth since the Japanese internment.” Last year Rep. Gregory Meeks (Democrat) had spoken in the same tone commenting that many have been misguided and exploited. Thus according to the politicians it seems that those minorities whose incomes were low were hoodwinked into these loans beyond their capabilities. But it is not supported by harsh facts.

The Census Bureau survey reports that Queens had the least number of residents with income below the poverty line. Only Staten Island had a high percentage of low-income families. Then why are there more foreclosures in Queens? Only 15% were below the line and hence the argument about poverty does not stand the test. However, further investigations regarding the race factor should be made. The main aim is to stop the foreclosures from increasing.

While it is true there have been instances of predatory lending but the greed factor cannot be ignored. Everybody could not have been totally naïve and gullible. How can anyone be hoodwinked into buying a house without making a down payment when each strip of chewing gum in Queens as elsewhere has to be paid for? If the Brooklyn Bridge were offered for sale would there be takers? It is doubtful!

Twenty years ago the sub-prime mortgage did not exist. It was not a good idea. Who allowed it to enter the mainstream holds the key to the problem and its solution.

Search Foreclosure Listings

• New York Foreclosure Listings
• Albany Foreclosure Listings
• Buffalo Foreclosure Listings
• Fulton Foreclosure Listings
• New York City Foreclosure Listings

Search Images

New statistics pouring in show that foreclosures are on the warpath scorning all relief measures. The housing market is getting worse without showing any signs of peaking.
Across USA foreclosure postings increased by 8% in July from June of this year. Banks repossessed 77,295 houses – a rise of 183% from the previous year of 2007.
Foreclosure is a judicial process by which the lender takes the permission of the court to seize a mortgaged house when the borrower fails to make payments. The house is foreclosed upon after the borrower is duly warned. It is then sold at a court auction by which the lender realizes his unpaid dues. Today there are so many foreclosures that the banks are suffering form indigestion – having swallowed more than they can manage. Vacant foreclosed houses are creating another set of problems. For every one house the banks manage to sell, two more roll into the foreclosure net.
Ken Cleypool is a realtor working with Value Point Financial. He says that his office is overwhelmed with foreclosure related work. They have 65 listed units and 90 more are coming in. Three years ago it was half that number. According to another analysis there are 40,000 foreclosures entering the market each month in USA. The forecast is that before this year draws to a close in December the number will reach a peak at 70,000. Nearly 20% of the houses waiting to be sold coming from the foreclosure category are damaged. This is the natural outcome of frustrated house owners who vent their rage on the property they could not enjoy. Cabinets, sinks and faucets are ripped out together with fittings and fixtures. The damage is sometimes so extreme that it becomes difficult to sell the units. There are huge discounts but even then maintenance and repair bills fill up the gap. Discounts from 25% to 20% are offered.
This is a grand opportunity for investors and also for first time nest builders. Lisa Walt of Grand Rapids helped her son to buy his first house. It might need repairs but nevertheless it was a bargain. The problem is that although houses are going for peanuts one needs a good credit to be able to make the offer. The foreclosure crisis has shaken the mortgage industry and the group has tightened their lending practices making it difficult to get loans.

Search Foreclosure Listings

• Georgia Foreclosure Listings
• North Carolina Foreclosure Listings
• New York Foreclosure Listings
• South Dakota Foreclosure Listings
• Texas Foreclosure Listings

Search Images