Senate Reaches Compromise on Funding for Anti-Foreclosure Bill

By Kevin Fox | May 16, 2008


The heated debate in the Senate over the proposed anti-foreclosure bill saw a breakthrough yesterday, as Senators agreed to a measure that would have Fannie Mae and Freddie Mac, the two biggest government affiliated mortgage lenders, pay for part of the proposed federal program to insure new loans for homeowners in distress. While the agreement was only preliminary, the Senate was hopeful that it would be enough to schedule a vote on the bill for May 20.

U.S. Senate

The bill would allow for homeowners at risk of foreclosure to refinance their loans at better, lower rates so that they could keep their homes. The government was at first hesitant about insuring risky loans, but Fannie Mae and Freddie Mac help out alleviated part of those worries. Many feel this compromise will lead to President Bush supporting the measure, instead of vetoing it as he had previously stated was his intention.

The bill, which will allow $300 billion in federally insured loans to homeowners all over the country, is expected to cost taxpayers over $1.7 billion in the next five years.

Many feel the biggest advantage of the loan will be that homeowners in risky adjustable rate mortgages will be able to switch to more stable fixed rate plans, in hopes that this would slow the rising national foreclosure rate.

Topics: Foreclosure Crisis, Foreclosure | No Comments »

North Texas Foreclosure Rate Slows Slightly

By Jason Callen | May 16, 2008


After a big first quarter, the foreclosure rate in the North Texas area slowed a bit, but it is still rising, and officials are predicting that this trend will not last as the year progresses. In terms of scheduled foreclosure sales for June, the foreclosure rate only increased by 3%, much lower than the statistics for the first three months of 2008. At this point, foreclosure are up over 20% higher than they were at the same time during 2007, showing the progressive upward trend in the area.

More than 3,800 homes are currently scheduled for auction in June in the area. The biggest metropolitan area in North Texas, the Dallas and Fort Worth area, is accounting for a huge portion of those sales, but other areas, including the city of Denton, are also seeing higher rates of foreclosure than usual in recent months. The biggest increase in scheduled sale came in Collin County, where the amount of sales was up by roughly 17%.

These days, between 50 and 60% of mortgage defaults in the region end up being sold off at foreclosure sales. As the economy gets worse, fuel and food prices get higher and people find it harder to keep up, this number is actually expected to increase, which could mean an even more flooded foreclosure market than already exists.

Topics: Foreclosure Rates, Foreclosures by State | No Comments »

Colorado Foreclosure Rate Rises in First Quarter

By Jason Callen | May 16, 2008


The first quarter of 2008 saw another surge in foreclosure homes in Colorado, as the state’s overall foreclosure rate rose more than 23% over the statistic totals for the first quarter of 2007. The 11,630 foreclosure filings that occurred during the first three months of the year was also 6% higher than the totals for the fourth quarter of 2007.

The counties with the highest rates of foreclosure were Adams and Weld counties, which saw significant development during the real estate boom, and a sub sequent loss in property value when it ended. Homebuyers and investors whop took out expensive mortgages lost lots of money on these properties when property values came down, and as a result many simply let their properties go into foreclosure, unable to sell or refinance for an amount even close to their original mortgage amount. The foreclosure rate for the state currently hovers around 1 in every 160 homes, well above the national average.

The amount of homes being sold off at foreclosure sale also increased by roughly 5%, a sign that more homes going into default are ending up being sold off at auction. This means not only more chances to buy at auction, but also many more chances for pre foreclosure purchase as people look to avoid a foreclosure sale by selling early.

Topics: Foreclosure | No Comments »

California Seeing Near record Foreclosures

By Jason Callen | May 15, 2008

The foreclosure crisis in California is spiraling out of control, many experts say in regards to a new report released showing that foreclosure filings in California are now in excess of 500 per day.

Foreclosure filings in the first quarter of 2008 totaled over 47,000 statewide, marking a 49% rise over the total of 31,000 recorded during the final quarter of 2007. While this is alarming for the future of 2008, comparing last year’s first quarter foreclosure rate with the current one shows that things have already increased staggeringly, with a 328% rise in the number of foreclosures year over year.

Experts attribute the reason for the incredible rises in foreclosure homes to the decline in property value due to the sluggish market, but this was aided in the beginning also by the huge surge in lending that occurred in recent years and has since restricted. With federal interest rates low, lenders handed out loans extremely liberally, and many of those homeowners are now finding it impossible to keep up with their mortgage payments and impossible to find buyers for their properties to avoid foreclosure.

Statistics also show that nowadays, roughly 1 in every 2 homes that goes into prolonged default ends up on the foreclosure sale block, up from every 1 in 3 homes one year ago.

Topics: Foreclosures by State, Foreclosure Crisis | No Comments »

Mortgage Delinquency Risk Up

By Jason Callen | May 15, 2008

A new study released by a real estate data analysis firm known as CoreLogic has found that the risk of mortgage delinquency is up in 2008, which projects more defaults and subsequent foreclosures for the nest year. The report is based on the Core Mortgage Risk Monitor, a system which projects foreclosure risk based on current and past statistics and figures.

The Core Mortgage Risk Monitor indicates that foreclosure risk has increased by 16% from May of 2007 to May of 2008, meaning more homes are at risk of going into foreclosure this year, echoing the worries of many housing market analysts and economists. The index has increased consistently over the past year.

Currently, the foreclosure risk index is 42% higher than it was in 2002, right around the time when the housing market was peaking.

Statistics from the report also showed that the Phoenix area had one of the lowest risks of mortgage delinquencies in 2007, but is now considered to be a much more unstable and risky market. Of the top 10 regions where delinquency risk is highest, 8 are in California and the remaining two in Florida. Foreclosure investing enthusiasts and potential foreclosure home buyers should note that there will certainly be more homes on the market in the coming months.

Topics: Mortgage, Foreclosure | No Comments »

Boise Sees Growing Rates of Foreclosure Homes

By Jason Callen | May 15, 2008

Boise, Idaho has been no stranger to the effects of the national foreclosure surge, and it seems that things may be getting worse for the city. Ada County, of which Boise is the seat, saw 200 foreclosures in April of 2008, while in April of 2007 there were only 42. This represents over a 400% rise in one year, and it has many residents alarmed, and many potential foreclosure investors looking for deals.

Idaho’s foreclosure rate is 20th in the nation, with one in every 775 properties in some stage of foreclosure, but Boise’s situation is much worse. The problem is that while foreclosures are high due to people buying newly developed homes at the peak of the market a few years ago and then becoming unable to keep up with payments or sell once the market fell, they don’t show any signs of decreasing. The rate of homes in default is way up as well, and as time goes on and property values fall further, more and more of those homes in default will end up in foreclosure than they did in the past.

While several big businesses have recently set up headquarters in Boise, the expected population growth that investors banked on as a result hasn’t been enough to sustain the huge fall off in the market.

Still, buying foreclosures could be good long term investments, as once the market rebounds, Boise is a city with a lot of potential for growth, and therefore good investment value if you can get in fro a good price.

Topics: Foreclosure Rates | No Comments »

Foreclosure Rate Rises 4% from March to April, Sets Record

By Kevin Fox | May 14, 2008

April saw the continued rise of foreclosures across the country, as the national foreclosure rate has risen by almost 65% over April of 2007, indicating the climbing number of defaults and subsequent foreclosures being experienced nationwide. The climbing foreclosure rate has risen a lot of worry about homeowner safety and the economy, but now it’s also raising questions about municipal revenues. As more foreclosures are sinking the median property value ever lower, lower governments are collecting less and less off property tax revenue.

Nearly 1 in every 519 homes nationwide received a notice of foreclosure filing during April, which includes default notices, the opening of foreclosure proceedings, and the close of foreclosure sales. That figure is up 4% from March, and is the highest monthly total since January 2005.

Officials in parts of California, Nevada, Florida and Arizona are beginning to become especially concerned about the property tax issue associated with falling home values. In the recession economy, having less money to provide public works could lead to poor roads, less police and fire protection and an inability to provide as well for citizens. Key to raising property values is the buy up of foreclosures, and many states are encouraging this act, especially since they are attractive to buyers looking for low prices on foreclosure homes.

Topics: Foreclosure Rates | 1 Comment »

Stop Foreclosure Today!

By Kevin Fox | May 14, 2008

It has been observed that homeowners facing foreclosure are hardly ever prepared for losing their home. In fact, very few homeowners are smart enough to plan in advance about the prospect of foreclosure.

Stop Foreclosures

Foreclosures can happen for many different reasons. Besides people who knowingly become a part of a mortgage fraud and have the intention of not making a single mortgage payment ever, there are those who experience sudden difficult financial situations that prevent them from making timely payments. Some of these extenuating circumstances could be:

  • Loss of job or sudden unemployment
  • Medical emergency
  • Untimely death of earning member
  • Piling unpaid bills
  • Divorce
  • Loss of alternate or second income
  • Inability to meet the rising interest rate demand for ARM
  • Any other unexpected expense such as home maintenance, car repair etc.

So if are caught in one or more of these situations then it’s time for you to know how to prevent foreclosure. Experts believe that the best way to stop foreclosures is by not filing the Notice of Default. Typically, those lenders who are not interested in foreclosure, file Notice of Default as an act to protect themselves, if need be. It is a good idea to call up your lender if you realize that you won’t be able to manage your mortgage payments for sometime.

Don’t procrastinate or feel embarrassed about this. Ignoring your lender’s calls will only worsen the situation. Talk to your lender and work out an amicable solution that is beneficial to the interests of both parties. Avoid foreclosure keep your head covered.

Topics: Avoid Foreclosures | No Comments »

Foreclosure and Crime

By Kevin Fox | May 14, 2008

Distressed homeowners have more than one reason to worry now. Slavic Village, an economically backward neighborhood in Cleveland, has gained the dubious reputation of being the worst neighborhood in the country for foreclosures. According to a report released recently, it was found that Slavic Village recorded the highest number of foreclosure filings in a single quarter than anywhere else in the nation!

Foreclosure and Crime

As soon as the homeowners moved out of their foreclosure homes, miscreants and squatters move in. What’s even sadder is that it takes just about 72 hours for these repossessed homes to be looted once they have been vacated. Looters take away everything right from gutters to downspouts to stripping the moldings, unscrewing the doors, and the appliances. However, if this wasn’t enough, the mobs use a sledge hammer to pull the piping out as well!

Putting these foreclosure homes for sale back together requires a lot of money. Restoration work doesn’t come cheaply and an as-is condition of the property won’t fetch any buyers. Razing such dilapidated homes isn’t a feasible option as most counties don’t have enough funds for demolition work. Derelict properties in foreclosure are increasing becoming dumping grounds for garbage, especially for those residents who can’t afford the haulage. In cold and damp climates, such houses disintegrate quickly and easily.

But homeowners aren’t giving up just yet. They are now installing stronger entrance doors with thick locks. Windows are fixed with ¾ inch thick plywood. Homeowners have also become smart enough to not leave any valuable inside. Organized neighborhood watches, fighting the mob on their own, and seeking the help of police that is often missing in action are some other measures taken to thwart looters.

Topics: Distressed Homeowners, Foreclosure | No Comments »

NY State Senator Seeks to Hold Lenders Accountable

By Jason Callen | May 13, 2008

In New York, one state lawmaker is pushing for new legislation that would be aimed at not allowing foreclosures to destroy a neighborhood or community by sitting on the market unowned and uncared for. This tends to drag down home values in nearby communities, and can lead to even more foreclosures as a result.

New York Senator Jeff Klein

State senator Jeff Klein is proposing legislation that would seek to hold lenders accountable for caring for the condition of homes on which they foreclose. Klein cited a recent report that indicated that more than 3.5 million homes in New York state experienced a drop in their value due to the presence of foreclosure homes nearby. The report showed that on average, a foreclosure devalues a nearby property by nearly $5,000, and in some cases, by much more.

His Neighborhood Preservation Bill will move through the legislature soon. Klein bases his argument for the bill on the fact that the lenders are responsible for foreclosing on homes, and should therefore be responsible for the repercussions foreclosures have on nearby homes and homeowners.

Topics: Foreclosure Homes, Foreclosure | No Comments »

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