Learning Center » arizona

Legal Firms Join Hands in Firm Handshakes to Hackle the Foreclosure Crisis

Julie Parker — Mon, 12 Oct 2009 17:22:57 +0000

Legal firms under the lead of United Law Group joined hands in firm handshakes with 30 other prominent legal companies to from Crisis Commission on Homeowner Representation.

United Law Group is one of the leading law firms with branches across the country – Arizona, California, Florida, Nevada, New York and Ohio. It has licensed attorneys to operate in any state. The group has won a name for itself in its dedication to use the legal tool to prevent foreclosures.

The primary objective of the group is to modify the language used in SB94. If it is not done then it will prevent troubled borrowers at risk of losing their homes from taking legal help. It would prevent lawyers from offering their services to bring about modification of loans and prevent foreclosures. As the bill now stands it will stop lawyers from taking a retainer upfront fees for services. This will be detrimental to borrowers.
Martin Andelman explained, “Essentially, it is a bill that will block a homeowner from obtaining legal representation when they are at risk of losing their home to foreclosure.” Robert Scurrah of CDA Law Center said, “SB94 is fundamentally defective. The concept of protecting a consumer will be totally eroded by the elimination of representation by licensed attorneys.”

The stand of the commission is that the fees that are being now charged by lawyers are negligible considering the time as well as effort put in. It requires expert knowledge to support the cause for modification of loan. For any other project the consumers in Orange County would have to dish out minimum $300 per hour to lawyers. Lawyers are engaged by real estate firms are paid anything from $1,500 to $3,000.

Zshonette Reed of Lorden & Reed said, “In a contingency case it’s worth the risk, because there’s a fee waiting for you at the other side. But attorneys cannot afford the overhead commitment for a $2,000-$3,000 fee.”

Summing up the impact that this bill will have on troubled house owners Robert Buscho of United Law Group said, “The consequence of this bill is that homeowners are not able to get representation because the attorneys cannot afford to become unsecured creditors to people who are already struggling financially.”
The supporters of the bill contend that it will prevent increasing number of foreclosure prevention scams that are mushrooming across the country. But Buscho claims that SB94 would harm the homeowners and not the scammers. He said, “Enforcing current laws will take care of the scammers. Enforcing current laws will take care of the scammers.”

Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Legal Firms Join Hands in Firm Handshakes to Hackle the Foreclosure Crisis

Foreclosures Increase in the First Quarter

Julie Parker — Mon, 29 Jun 2009 15:02:02 +0000

Foreclosures are at an all time high in the US. Along with default notices, bank takeovers were noted on 803,489 homes in the first half of this year. This is a 9% jump from the earlier quarter and a 24% increase from the first half of 2008. This means one in 159 houses has been foreclosed in this quarter.

In March, there were foreclosure filings in 341,180 homes – a 17% jump from the February figure and a 46% from that of March last year. In fact, March saw a record number of foreclosures. Foreclosure filings had become very common in new properties and that means lenders were not making filings in existing ones due to legislative delays. James J. Saccacio, CEO, RealtyTrac, said that bank repossessions have decreased on properties because of a moratorium. However, this freeze will be lifted soon.

There is a brighter side to the picture also. The first time buyers are showing interest in foreclosed homes because their prices have hit the rock bottom now. However, this increased demand for homes will not be enough to offset the rising tide of foreclosures that increase as unemployment peaks.

The highest number of foreclosures was recorded in Nevada, where one in 27 homes has been foreclosed. This is at least five times more than the national average. In this city, 41,296 homes have been foreclosed, registering a jump of 19% from the earlier quarter and a phenomenal jump of 111% from the first half of 2008. Bank repossessions have come down by 3 per cent as compared to the previous half. However, defaults have increased (27%) and so have auctions (35%).

The second highest foreclosure rate was registered in Arizona, where one in 54 homes has been foreclosed. California stood a close third, where one in 58 homes was foreclosed. Florida, Illinois, Idaho, Utah, Michigan, Georgia and Oregon were the other states where foreclosure rates were very high. Illinois registered the fifth position where

38,966 homes have been foreclosed. In fact, 60% of the nation’s foreclosures were in California, Arizona, Florida, Nevada and Illinois. In these states, 479,516 homes were foreclosed. Of the 50 states, the lowest rate of foreclosure filing was noted in Vermont. Here only one in 147,191 homes was foreclosed.

It seems foreclosures have become an important feature in the US housing market.

Obama Moves Towards West to Continue His War Against Foreclosures

Julie Parker — Wed, 18 Feb 2009 13:44:15 +0000

In the third week of February, President Barack Obama is moving towards the west to continue his war against foreclosures. This follows close on the heels of his big success in persuading the Congress to agree to the $787 billion plan to stimulate the economy. Before flying to Phoenix, Arizona he will sign the bill into law at a ceremony to be held in Denver, Colorado.

Obama said, “This is a major milestone on our road to recovery.” He was giving his weekly address over the radio on Saturday. The President was confident that his plan “will save or crate more than 3.5 million jobs over the next two years, ignite spending by business and consumers alike.” Talking about the bill he opined it “will lay a new foundation for our lasting economic growth and prosperity.”

Late on Friday 13th February the Congress gave the green signal to the package including tax cuts and new spending to rescue the shattered economy of America. There were 60 for and 38 against the bill. In the House of Representatives there had been 246 in agreement and 183 in opposition to it. After a round of many negotiations Obama has been able to press through his point and get the work done.

It was also announced on Friday that two banks in America and jumbo financial firms had clamped down moratoriums on foreclosures even before the unveiling of the comprehensive plan aiming to heal the sick economy. He will disclose the details at Phoenix.

The two banks are JPMorgan Chase and Citigroup. The mortgage giants are Fannie Mae and Freddie Mac. They clamped down on all foreclosure proceedings. This being the core of the financial problem it is expected that now positive results will be visible.

The CEO of JPMorgan Chase, Jamie Dimon said in a correspondence to an important Democrat legislator that the bank would put on hold all foreclosures for a period of three weeks right up to 6th March.

The USA Treasury committed itself to $50 billion as a primary step towards preventing foreclosures. The bill will grant $120 billion to spending on the infrastructure inclusive of constructing highways. For renewable energy $20 billion has been set aside and $11 billion for modernizing the electrical grid. Al Gore had hotly endorsed these two some weeks previously. This would go a long way in tackling the climate change.

Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Obama Moves Towards West to Continue His War Against Foreclosures

Builders with Perfect Credit Records Are Being Foreclosed upon by Banks

Julie Parker — Wed, 28 Jan 2009 11:46:07 +0000

Banks are foreclosing upon builders with perfect credit records. One of the victims is Dave Brown, a renowned builder in Tempe. All through the housing crisis he has been walking straight and has not missed a single mortgage payment. It was little wonder then that he was completely taken aback when the bank suddenly demanded millions as extra collateral. He could not comply and last October Morgan Chase foreclosed on five of his developmental projects. Soon after the business he had been running for more than three decades as Brown Family Communities downed its shutters.

Brown complained, “They treated me like a deadbeat who missed car payments. They wanted their money now.”

After having lorded over one of the greatest housing booms in American history today they are facing a catastrophic reversal of fortune. The housing crisis is more than two years old but as yet the banks have not descended harshly on the small house builders. But now they have started to flex their muscles and it seems a wide group will be pushed out of business within the forthcoming years. The concentration of the problem is in the Sun Belt – it having seen a spike in over-construction.

The sale of new houses has come to a halt and the builders are being challenged by waves of foreclosed units pushing into the market. The prices have gone down below the amount that had been spent on building these units. To sell them they have to shoulder losses. The amalgam of all these factors are bringing together the medium and small builders who comprise of 70% of the total number of builders down to their knees.

Steve Fritts of FDIC said, “The reality is, we’re seeing conditions in home construction and home finance that are the worst since the Depression.”

The financial crisis has hit the big public traded house building companies as well. So far they have been meeting their obligations because they are “better capitalized and they have cash on hand” said housing analyst Ivy Zelman. He explained that their position is much better than the private building companies.

As yet accurate details are not available of how many builders have gone out of operations since the beginning of the foreclosure related financial crisis. According to the National Association of Home Builders approximately 20,000 builders, calculating to a fifth of the group across the nation, have downed shutters during the previous two years.

Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Builders with Perfect Credit Records Are Being Foreclosed upon by Banks

Despite Desperate Measures the Forecast for Foreclosures Is Gloomy For Phoenix

Julie Parker — Tue, 04 Nov 2008 11:49:32 +0000

Despite desperate measures the forecast for foreclosures is gloomy. There seems to be little chances of a speedy recovery.

The house owners and business circles of Phoenix should not pin hopes on an economic rejuvenation at least for another year. After the resetting of sub-prime mortgages, the Valley is struggling through 67,000 new foreclosures. These houses stand eerie and empty begging to be sold. The downward trend of the economy of Arizona and its main driving force the real estate market will touch its peak in and about the third or the fourth quarter of the following year of 2009. The national reversal will not even start before the first quarter of 2010.

This is the opinion of Dean Martin, the treasurer of Arizona State. Don Reynolds, an economist of renown, echoes his sentiments. They were speaking to about 1,200 listeners and bluntly told them to accept the fact that either nationally or locally the foreclosure related money troubles are unlikely to come to an end in the immediate future.

Gloom is dominating the headlines as the financial system of America totters in the wake of the foreclosure crisis. The economic indicators are all pointing to bad days ahead. This is turn is affecting the developing countries. It has become almost like a psychological point, said Reynolds.

The event was being staged in a ballroom of Arizona Biltmore Resort & Spa. The participants were trying to find words of hope during the two and a half hour session but came away disappointed. All they heard were rumblings of storms and saw gathering in the horizon dark clouds for the coming year.

Reynolds stole the show in a typical Texan style wearing blue striped suit and flaunting a golden pocket chain. The maroon and white spotted tie brought little reassurance to the audience traumatized by the foreclosure crisis that has led to a credit crunch. There is no money available for lending, essential development work and important business expansion that would create jobs. Reynolds is the founder of a consultant company of Texas – 21st Century Forecasting.

He has in depth knowledge of the last 400 years of economic history. He noted that of the 42 developed countries he has focused on, 34 are beginning to economically stumble. The happenings in America have global ramifications. The credit crunch has reached such proportions that it is unparalleled in history.

Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Despite Desperate Measures the Forecast for Foreclosures Is Gloomy For Phoenix

Jewish Agencies Crafting Communal Response To Foreclosures

Julie Parker — Tue, 17 Jun 2008 14:59:28 +0000

Foreclosures respect no frontiers – neither class nor creed, rich or poor. It is a great leveler – cold and indifferent like Death. Foreclosures have been galloping around in Maricopa County. Jewish agencies are rising to the challenge as a community and setting up centres to help the troubled foreclosed victims. Michael Zent of Jewish Family & Children’s Service comments that the problem is continuing to grow and affect all and sundry. But they are specifically trying to help those in the Jewish community who are beginning to lose their houses and homes.

The representatives of Jewish Federation of Greater Phoenix, Jewish Free Loan and JFCS as well as some other related groups met on 21st May 2008 at the headquarters of JFCCS on Northern Avenue, Phoenix. The invitees included Rabbi H. Rafael Goldstein, Bruce Tunnel of the Arizona Department of Financial Institutions and Patricia Garcia Duarte of Neighborhood Housing Services of Phoenix. Information about the enormity of the problems was exchanged as well as the availability of help and services from the secular community. Also were present members of the Jewish Community Foundation, the Deutsch Family Shalom Center, the Kivel Campus of Care, the Barness Family East Valley Jewish Community Center as well as the Jewish Tuition Organization.

Zeidman elaborated that about 500 to 600 Jewish families were in some stage of foreclosure. The spiraling numbers were part of the escalating problem raging all around. Specifically the Jewish agencies have recorded the increasing number of request for help coming from their own community.

The conference made the participants aware of the secular and Jewish resources available to help the foreclosure victims. Also ways and meanings of reaching out to the distressed were discussed so that the problem was nipped in the bud – that is before the foreclosure process even started. Help was to be in such a way that it would not compromise with the dignity of the help seeker. Keeping all these points in view the agencies were advised to proceed. It is expected that a blue print for action would be ready by this summer.

For those who cannot wait and are in a critical position, they can knock on JFCS’s Helping Hands. This programme stands behind financially cornered individuals and families by helping them to chalk out plans to become self-self reliant. Helping Hands is supported by donations from within the Jewish community.

Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Jewish Agencies Crafting Communal Response To Foreclosures

Foreclosures And Animal Life

Kevin Simpson — Wed, 26 Dec 2007 12:59:20 +0000

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.

Phoenix AZ Foreclosure Listings Can Offer Sizeable Savings

Kevin Simpson — Wed, 26 Dec 2007 12:50:08 +0000

Home shoppers for locating a residence to live in Phoenix AZ or investors wishing to have a place for renting or resale, can have sizeable savings if they search Phoenix foreclosure listings. The reasons are many and the foremost being Phoenix, AZ has been adjudged by its employment potential as the leading city by increase of population. Phoenix, AZ has a diversified economy, both agricultural and industrial, where the high-tech companies have their factories situated and the employment by Government is also substantial in Phoenix, AZ. Hence owning a housing property in Phoenix, AZ is a lucrative proposition in the longer run for steady income by renting or capital gain by resale as Phoenix, AZ has ever increasing demand for housing. In that context, buying a property from Phoenix, AZ foreclosure listings should be the primary option of any home buyer. For this they can very well gather the details easily by visiting foreclosurelistings.com which provides all the relevant links and complete particulars of Phoenix, AZ.

By virtue of the foreclosure laws in the State, Phoenix, AZ has multiple option for foreclosure open to the lenders of Phoenix, AZ. The judicial and non-judicial foreclosures of Phoenix, AZ properties whose owners have defaulted in repayment of the loan are available and for quick and easy completion of the process, most of the mortgage lenders in Phoenix, AZ prefer the non-judicial foreclosure. Thus Phoenix, AZ foreclosures can be completed out-of court from the date of the first notice of default being sent to the home owners. In case of Phoenix, AZ properties pledged under mortgage deed, the lenders in Phoenix, AZ file law suit and the recorded notice at County court of Phoenix, AZ is sent to the borrowers as “Lis Pendens” – pending law suit. If a power-of-sale is included in the deed of trust between the Phoenix, AZ lender and the borrower, then the trustee records a notice of sale by foreclosure and conducts the sale by public auction in the Phoenix, AZ court steps or the office of the trustee. Phoenix, AZ properties pending foreclosure sale are to be publicized in the local news papers at least three times. The borrowers of defaulted Phoenix, AZ properties have the chance of redemption within 3 months after the judicial foreclosure sale in the Court, whereas in the out-of Court trustee sales, no such redemption is possible.

The flexible legal procedures of Phoenix, AZ provide for opportunities to prospective home buyers in three ways. Phoenix, AZ properties which are under pre-foreclosure stage can be negotiated for, directly with the home owners. But this option of buying Phoenix, AZ properties is very limited since there are no good numbers of properties falling in this category (only 30 Nos. as on date). There are Phoenix, AZ properties fixed for public auction by trustee sales – the highest as on date 4440 properties – where they can be bid for and acquired. Phoenix, AZ properties which are already foreclosed and lying as Repossessed properties by Banks numbering 2621 offer an excellent opportunity for acquisition with clear-titles and in good condition with a bargain of up to 20% savings, which itself can run into thousands of dollars in real terms.

Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Phoenix AZ Foreclosure Listings Can Offer Sizeable Savings

Foreclosures Touch Record Peaks In Third Quarter

Julie Parker — Mon, 10 Dec 2007 14:26:51 +0000

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.

Foreclosure: Problem or Boon

Julie Parker — Wed, 05 Dec 2007 12:12:32 +0000

For any real estate related problem like foreclosure the FHA can be contacted for genuine help. It is a semi-private agency controlled by the government. The aims are to help those with slim purses to become owners of houses. FHA does not itself advance loans but it negotiates with lenders to make the loan taking process smooth and easy.

The FHA has launched many programmes that have become popular. As per the 203(b) plan a 3% down payment can be made on a mortgage and not the usual 20% for purchasing or refinancing a house in which the owner wishes to reside or is residing respectively. There is however the condition that a mortgage insurance premium of 1.5% of the principal loan has to be added to the loan amount. That apart a monthly insurance premium on the mortgage calculated to be 0.5% of the main loan has to be paid. This will continue until the loan-to value ratio is 78% or equity of 22% has been built up.

Another programme is FHASecure. It is for people who have good credit ratings and have so far timely paid mortgage dues. This plan will help the borrowers to refinance their mortgage. This programme will save about 240,000 families. Here again there is a condition that those who are eligible for this plan will have to pay mortgage insurance premium. This will take care of the risk FHA is taking without burdening the taxpayer as regards insurance funds. The rate will be calculated according to the risk status of the borrowers. Those standing on shaky ground will have to pay more. The pricing schedule will come into effect from 1st January 2008.

To be eligible the borrower must show that there has never been any previous failure in timely repayments until the time of resetting as well as an unbroken history of employment; the present income must make repayment affordable. Thirdly only those will qualify whose mortgage interest rates fall under the anvil of resetting between June 2005 and December 2009. Fourthly the borrower must have at least 3% cash or equity on the property.
FHA schemes are for good borrowers but who were tricked off the course into high cost loans by initial teaser rates and other blatant temptations. Most of the victims are minorities who need a safe anchor to hold on to which will secure their mortgage and prosperity.

Do you have a Real Estate blog? Join ForeclosureListings.com Affiliate Program.
ForeclosureListings.com has a comprehensive, searchable database of foreclosures in areas like Columbus, Bronx, Derry, Missoula and in the whole country. Try to search foreclosures by state today! Foreclosure: Problem or Boon