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Foreclosures Are Now Knocking on Church Doors

Julie Parker — Fri, 20 Mar 2009 13:22:40 +0000

Foreclosures respect nothing – they are now knocking on church doors. During the time of the housing boom the church authorities dreamt in a big way – dreams that are turning into nightmares of debt and foreclosures.

Recently a survey is being undertaken about churches and foreclosures. It is not clear as yet how many churches are at present on the brink of foreclosures. The records are scattered across the country. Completion of the foreclosure process sometimes runs into months and this leads to inaccuracies in the records of the company. The clergy of the financially stressed churches are reluctant to discuss their predicament. It is understandable they do not want the congregations to be alarmed. They are also apprehensive that any complaints against the banks might backfire.

Bishop Eugene Reeves (New Life Anointed Ministries International of Woolbridge) aptly said, “Right now, when you’re at the mercy of the lenders, you don’t want to look like you’re coming out against them.” This Pentecostal church close to Washington requires some millions in dollars to complete a project, estimated at $19 million. Last spring, work on it came to a halt when the lender refused to sanction any further loans to the church. Reeves bemoaned, “We now have children who don’t have classrooms to get into, adults who have to go to an overflow room. We have parking issues. We don’t have enough spaces for cars.”

Across America, congregations both large and modest are battling with debts. A company in Atlanta, Reliance Trust, is trustee for about 3/4th of the all the church bonds in the country. It has noticed “some increases in delinquencies” said Tony Greene its spokesperson. He declined to give further details.

Temple Beth Haverim located in Agoura Hills, California is one of its clients that has sought protection by filing Chapter 11 bankruptcy. In July 2008 the religious body owed its lender over $7 million. This was stated by Reliance in its court filings. The value of the property is less than what the synagogue owes to its lender.

Strongtower Financial said that 10% of its $119 million outstanding loans (arm of California Baptist Foundation) were running in default as on 31st March 2008. In its most recent data, Chet Reid, the president of Strongtower said that the specific details were private and could not be disclosed. However he disclosed that the company had to deal with only one foreclosure during the last decade – that was in 2006.

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Looking for Atlanta foreclosed homes?

Kevin Simpson — Tue, 11 Nov 2008 18:38:03 +0000

Foreclosures have become the latent rage in the Atlantic regions of Georgia and Fulton. As the term suggests, Atlanta foreclosed homes, require a legal proceeding brought upon by the court, wherein the lender receives a termination of his property possession following his inability to fulfil the mortgaged property rules and regulations.

In the real estate markets, foreclosures carry a significant role in dealing with the landed property of the masses. With a saddening increase in foreclosures, a crisis in the economics has led to many people in the Atlantic regions of Georgia and Fulton to take to legal aids in dealing with their foreclosed property. The purpose of foreclosure being to clear the bank out of debt, many people are filing the line to bankruptcy and declaring their bankruptcy as a means to avoid foreclosure of their property.

Foreclosures thus become a means of acquiring landed property at an affordable price. On one hand, as it becomes a growing menace for the people, on the other hand, it provides a means to getting hold of a landed property at the least rates possible by the banking organisation.

In the Atlanta regions of Georgia and Fulton, getting hold of foreclosed homes is quite on the high. According to a survey carried on real estate statistics, such an incredible way of possessing property is gaining momentum among the masses in Georgia and Fulton. People are finding it a better and easier route as compared to the former land acquiring procedures, the best part being the reduced rates assigned to the property.

The topography of Georgia and Fulton also adds to the attraction behind those foreclosed homes. In fact, an overall thronging by the masses for possessing a foreclosed home is evident in the entire Atlanta. Atlanta foreclosed homes have indeed become a boon for the people who find it an easier and totally hassle free means of obtaining landed property.

Real estate investors therefore, seeing to the larger profit scenario attaches to Atlanta foreclosed homes, have therefore turned on to foreclosed homes and converting them into areas of immense real estate business. The result being, Atlanta foreclosed homes in Georgia and Fulton that have become attractive sites for buyers and real estate investors in the recent years.

The government of Atlanta, seeing the immense benefits and demand of foreclosure homes, have therefore, brought legal proceedings to ensure a safer and simpler way to own Atlanta foreclosed homes. Atlanta foreclosed homes have today caught the imagination of buyers and investors alike, in that it stands a tremendous route to attaining property and reaping a huge profit through quite convenient proceedings.

Atlanta foreclosed homes have the recent years, been transformed into huge farmhouses and tourist lodges by the investors, thereby churning immense benefits from the originally bankrupted piece of property. Atlanta foreclosed homes in fact stand an example of turning a barren and useless piece of thing into a money-minting device. Check out the latest Atlanta foreclosed homes and make your dream come true with affordable real estate investment.

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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! Looking for Atlanta foreclosed homes?

The Double Whammy of Foreclosures And Assessments

Julie Parker — Tue, 14 Oct 2008 12:22:18 +0000

The tax assessments on properties are unusually high in the localities that have been badly hit by foreclosures. For residents it is a double whammy coming from foreclosures and assessments according to the findings of an advocacy group from Atlanta.

The survey included in its study the metro regions of five counties and concluded that those with the highest rates of foreclosures were also paying the highest property taxes. Atlanta Neighborhood Development Partnership working for affordable housing noted that the taxes were based on falsely hiked valuation. This is putting a heavy load on communities struggling with foreclosures. Rehabilitation is becoming impossible under the circumstances.

John O’Callaghan CEO of this group said, “This is about fairness in who pays those taxes. There’s a disconnect between the tax-assessed value and what we know these homes re selling for. That creates a disconnect.” Living in a poor neighbourhood has come to mean payment of more property taxes. This is unfair.

In 15 zip codes that recorded the most number of foreclosures the average value of a house was $26,000 more than the average sale price of the unit. The survey complained that if tax assessors did not adjust the figures then the zip code residents would have to pay $71 million as ‘excess property taxes’ in the forthcoming year.

Most of these foreclosure-hit zones are criminal dens dotted with derelict houses. It is impossible to count in dollars what it is costing the community. A higher task bill will only worsen matters.

The survey group hauled up the authorities for overtaxing the poor and being slow in revising property values to realistic levels. The counties are being called upon to review the situation. Clayton County officials responded positively but complained that the study is not fully accurate in its details about the foreclosure situation. Rodney McDaniel, Chief Appraiser of Clayton County said that already a positive and proactive approach has been taken to reassess the valuation of the houses of those areas that are badly hit by foreclosures. He said, “Just this year, we took it upon ourselves to look at those foreclosures. We reduced our property assessment notices for 27,000 parcels. So we are actively looking at the housing market, the economic situation, very closely. We are continuing to look at it very closely. If there are adjustments that need to be made in 2009, we will continue to work on that.”

Coweta Foreclosures Tower above USA Average

Julie Parker — Thu, 21 Aug 2008 13:37:21 +0000

While foreclosures across the nation are skyrocketing, foreclosures in Coweta are towering above the USA average. Going by advertisements inserted in Times-Herald the tendency of staggering increases is noticeable. From 70 in July 2007 it jumped to 136 in July 2008 marking a hike of 94%. During this period the national increase was by 55%. It calculated to a national foreclosure rate of 1:464 in July.

Coweta figures show that since May 2008 the foreclosure rate is 1:332 – far above the national rate. The insertions in the Times-Herald about foreclosed houses have been steadily but surely increasing. From July to August 2007 the numbers shot up from 70 to 112 respectively. It touched a high peak of 156 in January 2008. For August 2008 there have been 137 advertisements as against 112 in August 2007.

Dr. William Joey Smith of West Georgia University said that hitherto the predictions that the housing market would ‘bottom out’ months ago were wrong. None will deny that the banks are in good shape. This has led to rethinking that it might take a much longer time for the foreclosure crisis to stabilize. Contrary to anticipations the situation has worsened in many places than before.

Coweta County is not alone in its suffering. In Troup County the foreclosure rate is 1:915. In Merewether and Fayette it is 1:205 and 1:532 respectively. It is worse in Carroll County where the foreclosure rate is 1:270. In Fulton County it is higher still with the foreclosure rate being 1:156.

Mark Manis of Wheeler’s Building Supply remarks that the housing market is very tough. Recently Wheeler’s Building slipped into bankruptcy earlier in 2008 but since then it has undergone a change and resurfaced keeping the same name. Foreclosures so far have concentrated in certain pockets of metro Atlanta. There are indications that it is spreading to other parts of North Georgia and that is not good news at all. The road ahead is “fraught with peril.”

Realtor Frank Barron of Lindsey’s Inc in Newnan admits that he made a mistake by saying at one stage that the market had “hit the bottom”. He does not think that the bottom has been reached as yet but perhaps the tendency is that the market is slowly edging towards it. The sales figure of July makes him optimistic. It is much better than what it was previously. By late 2009 and 2010 it seems the situation will take a positive turn.

Foreclosures And Mortgage Frauds

Kevin Simpson — Tue, 25 Dec 2007 18:15:50 +0000

Organized mortgage frauds located in Atlanta seem to be a plausible explanation for the rising numbers of Atlanta foreclosures. The Wall Street Journal has reported how a fraud caucus managed to pocket $6.8 million in mortgages from Bear Stearns. A certain New York couple approached the bank with the story that they earned more than $50,000 per month as top ranking personnel of a marketing firm. They submitted statements showing assets worth $3million. In actual life the man was had an income of $105,000 per year with assets worth not more than $35,000! His wife did not have any outside income. Such a couple purchased a mansion and sold it in a foreclosure auction. Neighbours smelt a rat that led to the exposure of this foreclosure fraud ring.

According to the FBI, 28% of the mortgage agents and analysts are engaged in fraudulent activities. In 2003 the number was 7%. Lenders should know their rights and file Suspicious Activity Reports as soon as they suspect anything. Between 2000 and 2006 the reports have increased by 700%. There were 436 mortgage fraud cases in 2003. That has gone up to 1,210 this year – that is 2007.

The Prieston Group provides mortgage fraud insurance. According to their chairperson Arthur Prieston, losses from mortgage fraud in 2006 could be about $4.5 billion. It is a 100% rise from the 2005. The statistics for 2007 have not been released as yet. This organized racket is adding fuel to the fire of foreclosures. Prieston is of the opinion that in some regions more than half the foreclosures might stem from these frauds. He blames the sub-prime system of loans as ‘liar’s loans’ because no documentation was required about income statements. People merrily lied and got loans that were used in an organized manner for speculation leading to the foreclosure fiasco of today.

The Mortgage Asset Research Institute is another firm dealing with fraud protection. It said that 60% of the stated income amounts were exaggerated by more than 50%.

The net result is that with these exposures people who are self-employed and rely on stated-income loans will find it difficult in the near future to get loans to buy houses. The antics of few criminals make life hard for the many honest hardworking folks.

The main things that this fraud affair has exposed that where were the watchdogs when all this was going on?

Foreclosure Hotline Never Stops Ringing

Julie Parker — Mon, 10 Dec 2007 14:29:27 +0000

The foreclosure crisis has been slipping from bad to worse. It started off with the laudable aims of helping those who wanted to own a house but could not qualify for the prime loans. The sub-prime mortgage was tailor made for them. Unfortunately the scheme went awry with predatory lending and reckless borrowing. The borrowers were unaware of what they were walking into.

Only when interest rates began to rise that they woke up with a shudder to succumb to foreclosures. The sheer number of foreclosures raging across the country has made sociologists, economists, legal fraternities and even the politicians sit up. All were affected. Bush made an announcement on Thursday regarding help for foreclosure victims.

On an average day the number of calls was 1,500. But since the foreclosure crisis the number has shot up to 5,800 said Tracy Morgan, vice president of communications and business development for the Homeownership Preservation Foundation. This is the story ever since Bush announced plans to soften the foreclosure crisis. Borrowers were asked to call 888-995-HOPE. The calls on Thursday were three to five times higher than those received on Monday. There was a sense of high alert following the President’s declaration.

The Homeownership Preservation Foundation works in tandem wit six other credit counseling bodies across the country. One in Greater Atlanta, Consumer Credit Counseling Service took 920 calls within four hours. The average is 75 to 80. The pressure is compelling them to engage extra personnel to attend to the calls. Many are working overtime. Whatever the odds they have been able to manage the workload. Calls are kept on hold to talk to counselors.

In New Jersey Novadebt handles hotlines. They received 1,600 calls on Thursday. Through the year the number of calls have been steadily rising corresponding to the rise in foreclosures. It is also due to the publicity these hotlines are being given. The calls have increased by 100% from the first to the second quarter and 94% from the second to the third quarter.

Homeownership Preservation Foundation has increased its strength of counselors receiving the hotline calls. By the end of the year 70 more will be added to their team bringing the total to 250. It is a non-profit organization funded by the US Department of Housing and Urban Development in partnership with mortgage lenders and servicers as well as charitable bodies.