Foreclosure News

Some news items below for the latest Foreclosures News update:

Paulson says more needs to be done on foreclosures
NEW YORK (Reuters) -Treasury Secretary Henry Paulson said on Tuesday that the government has already done a lot to address the foreclosure problem that continues to plague the U.S. housing industry and the economy, but more must be done.

“There’s been very significant progress,” Paulson said in answer to a question about Treasury’s approach to the housing foreclosure problem after a speech before the National Committee on U.S.-China Relations in New York.

“There’s much more that needs to be done,” he said.
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U.S. trying to stop millions of foreclosures, Paulson says
WASHINGTON (MarketWatch) – The Treasury and the Federal Deposit Insurance Corp. are working with the Federal Reserve and Fannie Mae to prevent millions of home foreclosures, Treasury Secretary Henry Paulson said Tuesday in an exclusive interview on “Charlie Rose” on PBS airing Tuesday night, according to a transcript of the interview. Paulson said the Treasury is readying plans to buy troubled mortgage assets from banks and other investors. “There is clearly more that can be done, needs to be done,” he said. “We are looking in the millions. And we need to do everything we can to minimize that,” Paulson said. The actions by the FDIC to guarantee bank debts are already working, he said. “The credit freeze is beginning to melt.”

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Paulson Aims to Step Up Relief to U.S. Homeowners (Update2)
Oct. 21 (Bloomberg) – Treasury Secretary Henry Paulson said he aims to intensify efforts to stem foreclosures by using part of the government’s $700 billion financial-rescue fund.

“There still are a disturbing number of foreclosures where people are walking away from their mortgages,” Paulson told PBS television’s Charlie Rose in an interview in New York that will be broadcast tonight. “There is clearly more that can be done – - needs to be done.”

Lawmakers are pushing the Bush administration to offer more direct help to homeowners, after the first stage of the bailout program focused on buying stakes in banks. While some housing figures showed signs of stabilization in the middle of the year, the freeze in credit markets threatens to deepen the industry’s slump, throwing more Americans out of their homes.

Paulson said he spoke yesterday with Federal Deposit Insurance Corp. Chairman Sheila Bair, whom House Financial Services Committee Chairman Barney Frank has proposed to lead a “government-wide effort” to stem foreclosures. He talked today with Federal Reserve Chairman Ben S. Bernanke, who said Oct. 7 even households with “good credit” are finding it tough to get mortgages.

“We need to do everything we can to minimize” the millions of likely additional foreclosures, Paulson said today. The Treasury chief said he will also consult with Herbert Allison, the chief executive officer of Fannie Mae, the largest purchaser of U.S. mortgages, which was seized last month by the government.

“More Leverage’”

Paulson didn’t specify how he plans to help homeowners. The $700 billion rescue package gave the Treasury authority to buy individual mortgage loans. A government official told reporters yesterday that once the Treasury hires an asset manager for the so-called whole-loan purchases, that firm will be able to work with homeowners on easing their payment terms.

In a speech after his interview, Paulson said the Treasury’s plan to buy illiquid assets, including mortgages, from lenders gives the government more negotiating power. “We will have more leverage and we’ll have more things we can do,” he said in response to a question from the audience.

The Treasury chief separately today got an update on the state of the economy in a meeting with CEOs from companies including General Mills Inc., The Walt Disney Co. and Burlington Northern Santa Fe Corp., along with pension-fund executives. Paulson visited the New York Stock Exchange during his New York trip.

GM Question – Asked about potential government help for General Motors Corp., the automaker that has lost 74 percent of its market value this year, Paulson said the best way to help companies is to stabilize credit markets. He declined to “speculate” about the future of GM, while noting that the company has been “impacted” by the breakdown in credit.

The Treasury secretary advocated mergers and acquisitions to strengthen the banking industry, while reiterating that the aim of his $250 billion bank recapitalization plan is to stimulate lending. Paulson said last week the government will put $125 billion in nine of the largest banks, including JPMorgan Chase & Co. and Citigroup Inc., with the second half going to an array of other financial companies.

While the Treasury is “not going to use this money to prop up failing banks,” there will be “some consolidation,” Paulson said. “There will be some situations where it’s best for the economy and for the banking system for there to be a consolidation,” he added.

Paulson cited Wells Fargo & Co.’s planned acquisition of Wachovia Corp. as a combination that’s a “very good thing for the system.”

Paulson reiterated his call for banks to “deploy” the funds they receive, not “hoard” them.
In the interview, Paulson said the U.S. government has already taken “bold steps that will make a difference in bringing confidence back, particularly to the banks.” ” He tempered those comments by adding that “clearly we’re going to have a number of difficult months ahead of us in terms of the real economy.”

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L.A. County foreclosures

L.A. County foreclosures: Up, up and away

What people feel about this:

Julia says: I moved away from Los Angeles in April 2007 but returned for a few days this week. As I was driving around with my sweetie in the Valley, I was stunned by the number of homes for sale and foreclosures. What a difference 18 months makes.

The third-quarter foreclosure report released by PropertyShark.com last week paints another bleak picture. Los Angeles County foreclosures, totaling 15,749 by their methodology, were up nearly 196% from the same quarter in 2007 when there were 5,322. From the second quarter of ‘08, which had 14,505 foreclosures, they were up 9% in the third quarter.

Countrywideblog If that’s not dramatic enough for you, way back in the third quarter of 2006 the county recorded just 1,539 foreclosures. That’s a more than 923% increase to last quarter.

Burnyhill says: Remember the silly days of 2005-2006 when we were breezily informed that all of the toxic mortgage-backed securities had been sold to dupes in China and Arabia? Guess not

The ZIP Codes with the most foreclosures were, in descending order: Palmdale 93550, Lancaster 93535, Sylmar 91342, Pacoima 91331, Palmdale 93552, Norwalk 90650, Palmdale 93551, Long Beach 90805, Lancaster 93534 and Quartz Hill 93536. For Palmdale 93550 that translates into one in every 45 homes, and for Lancaster 93535, one in every 46.

Who was left holding the most bad loans in L.A. County? Countrywide Homes Loans, followed by Washington Mutual.

Sean says: Comes as no surprise that Wamu and Countrywide were the ones with the most bad loans. They were very aggressive with their creative financing and very lax when it came to income verification.

Serves them right.

We need to get back to the simple policy of “who ever makes the loan, owns the risk.” Then, maybe banks wont give out hundreds of thousands of dollars in liar loans and cry for a bailout.

News article reference: LA Times Blog

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