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.”

Do reply me on this latest update with your comments

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

For more news and updates: US Real Estate

More Foreclosures

San Jose tries to protect neighborhoods from foreclosure wave, prevent blight. The lenders pushed to keep homes in good condition and prevent blight in the city.

As the housing bend grind on, San Jose is getting out to residents in front of foreclosure and insists on the cleanup of abandoned homes that could blight city neighborhoods. The over grown lawns and vegetation can pose fire hazard, open door and window can attract wreckage, and excess garbage creates eyesore, said Michael Hannon, deputy director for code enforcement.

“When you look at the number of families impacted, it’s a large number, and we need to be responsive as much as we can,” said Leslye Krutko, director of the city’s Department of Housing, referring to those families who are losing their homes.

Properties are considered to be in foreclosure if owners received either a notice of default or a notice that the property was scheduled to be sold at auction, or if the property was repossessed by mortgage lenders during the period studied.

“If you’re a lender, the city expects you’re going to maintain that property so it doesn’t blight the community,” he said. “Nowadays, a vacant building is an ‘attractive nuisance,’”‰” that could lure vandals to the property, something the city and neighbors want to avoid.

Many of the vacant properties that San Jose residents call to complain about are owned by lending companies that have foreclosed, Hannon said. As a result, he said his inspectors have created a database of contact names and numbers for the many different lenders responsible for foreclosure properties in the city.

“It’s not fair to the citizens of the city of San Jose to have to pay for, essentially, property management,” From November 2007 to July 2008, the report said, 305 vacant houses were found to be in violation of the city’s neglected vacant house ordinance. But as of the end of the July, only 92 still needed “abatement” of some kind.

Jaime Alvarado, executive director of Somos Mayfair, a community organization in San Jose’s Mayfair neighborhood — and in one of the report’s hardest-hit ZIP codes — said the city’s efforts to prevent blight from vacant homes seems in his area to be working.

“In Mayfair, so far, so good, but it’s still early. Everyday, there are more and more houses vacant.”

Source: Mercury News

More news which have come in regards to the foreclosures was:

The rains may have stopped on Monday, but the flood of foreclosures has not.
Deputy Register of Deeds Nyci Centers reported last week 190 recorded in the year-to-date, as against 161 last year at this time.

There were 227 recorded by that office for 2007, a record.

“It’s not over,” said Sandy Jackson, assistant vice-president and collections manager for Monarch Community Bank.

Whether because of overbuilding, overvaluation or risky financing, the current foreclosure dilemma suggests one thing: No one is truly “comfortable” right now when it comes to finances.

Well there are more views and updates coming up on Real Estate, keep looking!!!

Real Estate Agent Arrested for Stealing Food

I found this article on a Foreclosures Site, here is the link of the original Article: Real Estate Agent arrested

MONROE, Conn. – Monroe police have arrested a real estate agent accused of stealing change from a home she’s trying to sell.

Police say there are complaints that she stole food and change from other homes.

Police have charged 29-year-old Holli Tapley of Derby with one count of sixth-degree larceny. Police say a 14-year-old girl allegedly spotted Tapley stealing money from a coin jar in a closet and then going through drawers in a bathroom.

Police contacted Tapley’s supervisor and were told there had been other complaints about her. Other homeowners had reported finding drawers open in their homes after Tapley had been there, as well as food having been taken from kitchen cabinets.

Tapley denies taking any change, saying she makes “six figures” from her job and does not need to take someone else’s change.

It can’t be worst than this, a situation like this make us feel sad and irritated… is the situation ever going to be better than what it is….

Yes, the situation will be better, as they say that “Nothing is forever, everything have to change because only change is permanent”.

Foreclosures Hitting the Highest Mark

State foreclosures hit 5-year high. According to a recent report in States the foreclosures on Alaska single-family houses have hit their highest level in the least five years.

The Anchorage foreclosure rate began its steep ascent a few years ago, increasing 166 percent between 2005 and 2007, according to the report by the Alaska Department of Labor and Workforce Development.

Nearly 102,000 homeowners lost their properties to foreclosure in August, up nearly 6 percent from July and more than 80 percent higher than in August 2007, according to data released today by Foreclosures.com, a national leader in foreclosure information.

The state’s foreclosure rate will probably remain high this year, according to the report. The 435 foreclosures between January and June was the highest amount for the first half of any year since 2003.

Foreclosures increased at their fastest rate in nearly 30 years during the second quarter, according to a report by the Mortgage Bankers Association. Rising interest rates and falling home values prompted many to walk away from their loans. “People chose the lowest payment option to get into some of the very expensive housing markets, and now that prices are coming way down, they can’t sell and they can’t afford the higher payments,”

Year-to-date 1.45 million homeowners (19.6 of every 1,000 households) faced pre-foreclosure actions by lenders, almost double the number a year ago. A comprehensive analysis of pre-foreclosure and foreclosure proceedings nationwide is based on the number of formal notices filed against a property during the foreclosure process. That can include notice of default, notice of foreclosure auction, and/or notice of REO (lender-owned real estate that occurs after a foreclosed property fails to sell at auction and reverts back to the lender). All pre-foreclosure filings do not end up in foreclosure.

One of the user have just mentioned his thoughts on this circumstances, it’s really touching, if we all start taking care of small things today, we might won’t be among those who are suffering now…

I think the problem isn’t so much with the economy as much as it is with our spending habits. God forbid you would have to go without cable TV and God forbid you would have to not buy the new TV, new clothes, name brand items, etc…. I think the biggest thing we could do for our economy is trying and get Americans away from this “keep up with the joneses’, bigger is better” mentality. All it creates is debt debt-debt. And I think an unrealistic debt load, not so much a horrible economy is what’s to blame.

What happens in Foreclosure?

While the individual steps involved in each of the steps in the foreclosure process are different in each state of US, the general process itself is only the same.

We are going to covers the foreclosure part of the foreclosure process that is after the bank has accelerated your mortgage and demand that the credit should be fully paid and while this is the point of no return with your present lender, all may not be lost – contact a foreclosure attorney or professional as speedily as possible.

Steps of Foreclosures in bank Foreclosure Process:

1. The bank sends a notice of objective to foreclose to you by qualified mail
2. The bank files the required papers in court to start the foreclosure process
3. Required notice is published in local correspondents. This is not meant to be retaliatory, this is mandatory by the law
4. At this point, there are still things, which you can do to avoid going to the court, such as selling the house to somebody else, but assuming these things don’t happen and the waiting periods for all the legal papers and notices expire, the process will enter a courtroom.
5. The court holds an investigation regarding the claim.
6. The court issues an order to foreclose.
7. Required notices of a foreclosure auction and any advertisement are available in local newspapers.
8. Now if again nothing is reached, the house is sold to the highest bidder at open public sale.

After all this process is said I want to add on as this process can take as little as 30 days (Alabama) to as long as a year (New York) and that length is one of the reasons why banks don’t desire to go throughout this process.

You may also notice that at no point are you ejected from your home, that’s because the foreclosure process doesn’t wrap that at all. So in any case, you cannot be thrown out of your house.

After the foreclosure, you are considered as a tenant in the house and could possibly arrange to rent it from the new owner who will purchase the house, etc. If not, then the new owners have to chase the eviction process of your state which can also take some time as well.

Now my other question can be: How will I know that a mortgage foreclosure case filed is filed against my landlord?

You will get court papers.

There are 3 different types of court papers you can get:

• Complaint for Mortgage Foreclosure
• Supplementary Petition for Possession
• Summons and Complaint for Forcible Entry and Detainer

The judgment that the bank is typically granted against the homeowners is simply the judge’s decision that recognizes that the lender is owed a certain amount of money and that the owners have not paid it.

Even this does not create a second debt that must be paid back; it is simply a local judge agreeing with the bank and ordering that the house will be auctioned at a sheriff sale to pay off the defaulted loan.

The judgment amount is always based on the total payoff amount that the homeowners would need to come up with in order to own their home free and clear.

One thing that is very likely to happen is that there will be a court hearing that you need to attend. If for whatever reason you do not turn up at this hearing then it is very unlikely that the judge will rule in your favor and give you a chance of still being able to save your home.

But overall you need to understand this very clearly that you can only be put out of your apartment by the sheriff after a judge signs an order of possession.

Also you have to understand that you need to monitor your credit report and score regularly, to ensure there are no inaccuracies or unauthorized activity.

Your credit report and score are the two major methods that creditors and lenders use to make a credit decision about you.

Higher scores usually mean lower interest rates, which will save you money.

Foreclosure on Default Payment of Property Loans

Hello All,

I have received this comment by Alex, well it was too long to fit into the comment box, so I decided to publish it as a post with the required links by Alex.

Definition of Foreclosure on Default Payment of Property Loans

Foreclosure is a legal term often on the minds of many American homeowners. The average American family works hard to afford a home in which their family can live comfortably. Most families do not have the cash up front to pay for their dream house in full. They will seek a loan from a financial lending institution such as a bank or a mortgage company to buy this home.

To secure the loan, these financial lending institutions must be certain that they will get back their money back. Since a good paying job does not guarantee that a loan of this magnitude will be paid back, they require what is known as collateral, an asset they can seize in lieu of payments if the loan is in default (no longer being paid back).

Normally the home that is being purchased with the loan is put up as collateral and if the mortgagor (person seeking the loan) does not pay back the loan to the mortgagee (money lender, borrower), the house goes into foreclosure. The money lending institution may obtain a court order to proceed with the foreclosure and repossess or seize the house in lieu of repayment of the loan.

In some instances the financial lending institution may attempt foreclosure on a home or other property, but if the borrower repays the loan, a court of equity may rule in favor of the borrower who at that point will be able to keep the home or property in question.

The contract between the financial lending company and the borrower is called a mortgage or deed of trust. When a contract has been entered, effectively the lending company has agreed to give the borrower a certain sum of money in which to purchase the said property. The borrower agrees to pay this money back (signs a promissory note). The contract will also stipulate that a lien will be placed on the property meaning that the financial lending company has a right to seize the property (repossess it) if the loan is not repaid in the time frame that is stipulated and according to the conditions set out in the contract.

The process of foreclosure is used in any contract whereby real estate, homes, farms, land, and other immovable property has been obtained through a mortgage, and the mortgage holder has defaulted on the payments.

Judicial Foreclosure is available in all the American states. When the borrower defaults on the loan, the property is sold. The proceeds from the sale of the property first goes to repay the balance on the existing loan, then to any other lien holders, and finally to the borrower if any proceeds are left over. All transactions are done legally through the court system.

Foreclosure by power of sale is sometimes added as a clause in the mortgage contract that defines the foreclosure procedure without court intervention. This procedure follows the same order as the Judicial Foreclosure however faster since the courts are not involved.

To read more and get Free copy on how to stop Foreclosure

Please follow this link.
http://mortgagedoubleplus.com

Thanks for the information Alex, I hope your site and downloads will be useful for those who are in need of it .

Historic Buildings – Foreclosures

Not only the new houses, but even the old vintage houses are going to be effected by the foreclosures…

Community activists and preservation experts are fighting Bridgeport’s plans to foreclose on two historic homes that once stood in the heart of the city’s “Little Liberia” settlement.

The small houses, which are listed on the National Register of Historic Places, became the foundation for a thriving community of free black people known as “Little Liberia.”

The Freeman houses, said to be among the earliest homes built by black families in Connecticut, were named for two sisters who built them in the mid-1800s.

Bridgeport plans to foreclose on the vacant homes because it says the owner, Action for Bridgeport Community Development (ABCD), owes $116,000 in delinquent taxes dating to 1990. The agency refuses to pay the taxes, saying its nonprofit status means its properties are tax-exempt.

The dispute has angered some people in Bridgeport’s black community and prompted some groupsand they have also asked Mayor Bill Finch to reconsider the situation again.

Even though Craig Kelly, president of the Greater Bridgeport chapter of the NAACP is repeatedly saying that this should be inappropriate to anyone regardless of whether they are black or white.. the crowd is still not listening.

However, city officials say Bridgeport is legally entitled to levy taxes on the homes even if they are owned by a nonprofit agency.

“There is no question they are taxable. When a nonprofit owns a piece of real estate and does not use it, the real estate becomes taxable. You can’t bank properties,” said Russell Liskov, an associate city attorney who handles foreclosures for the city.

“This is about black history and how we continue that, and use it for our families and children so they can learn from history and from us,” Tisdale said.

Many of those early residents were Ethiopian seamen who worked on whalers and West Indies schooners. Others worked as shopkeepers, waiters and barbers. The Underground Railroad is said to have had a depot there as it ferried southern slaves to northern communities.

All that remains are the Freeman houses, which are surrounded by a storage warehouse, a five-story brick apartment building and a parking lot.

The homes are vacant, surrounded by a security fence. The structures are sound, although in disrepair.

If and when the city takes control of the property, it will pursue long-delayed plans to preserve and showcase the historic homes, he said.

“These two historic buildings are rare and irreplaceable evidence of African-American life prior to emancipation and should be considered a site of national significance worthy of protection,” said Brent Leggs of the National Trust for Historic Preservation.

It’s going to be a big time for everyone their in Bridgeport community to accept these orders and it can create some disturbance in the communities there.

Deutsche Bank Stop Putting Around

Bankers, brokers and other elites came together on Saturday, August 30th for a posh and pompous romp at TPC Boston in Norton, Massachusetts. The Deutsche Bank Championship featured world class golfers, thousands of spectators, and is sponsored by multinational Deutsche Bank.

As it happens, Deutsche Bank is also the leader in home foreclosures in Massachusetts. Protesters from across Massachusetts and Rhode Island picketed outside the tournament, greeting each shuttle bus with their message to stop the evictions and stop the predatory lending that leads to foreclosure.

About one hundred people attended, representing organizations such as CLVU, Lawrence Community Works, SEIU Local 615, Students for a Democratic Society, the National Lawyers Guild and others. Among the protestors were several tenants and former owners of foreclosed homes across the region.

One woman from Lawrence, MA, an immigrant from the Dominican Republic, expressed her frustration by saying “the bank tells us to leave, but all the houses are abandoned. We need to talk together, to negotiate in order to keep people in their homes. We came here looking for the American Dream, not the American Nightmare.”

It’s no coincidence that so many immigrants, people of color and low-income families are bearing the brunt of this crisis. Mortgage companies have targeted these people for predatory lending scams such as sub-prime loans.

Between February 2007 and February 2008, 31,516 foreclosures were initiated in Massachusetts alone. The number continues to grow exponentially.

Two weeks beforehand, City Life/Vida Urbana, a Boston based tenants rights organization, sent a letter to Deutsche Bank demanding they support MA legislation that would put a moratorium on evictions in foreclosure cases. CLVU also demanded the bank call in their top ten servicers to the negotiating table. They declined as expected and the protest was on!

Many tenants and former owners shared their stories at the protest. Those most directly affected, such as Miriam, an East Boston tenant currently living in a foreclosed building, are pushing the organizing forward despite the fear that banks and real estate agencies try to instill in them. Speaking at the rally, she said “Many people are suffering, but together we can move forward and we will win!” Protesters were enlivened and inspired by people’s stories of struggle.

The demonstration was only a small component of the multi-faceted campaign to resist evictions after foreclosure. When it comes down to it, participants are prepared to physically block evictions. We’re proud of our 7 for 7 track record. Saturday’s protesters will return to their respective neighborhoods invigorated and ready to continue the door-to-door organizing that is the heart of the struggle.

It’s so ironical that those who are now the tenants were the landlords earlier and those who are the landlords were the tenants… foreclosures have changed a lot in everyones life in the US.

“If prices are rising one has only to wait. They would reverse themselves and begin to fall.” Discussions on inflation these days hinge on this nineteenth century model of the competitive economics, where a rhythmic sequence of expansion and contraction in economic activity was assumed. And economists preferred to suggest unhindered play of market forces rather than pro-active government intervention. The situation changed by mid-twentieth century with Keynes.

Foreclosures in Virginia – Triple of July-07

Here’s a milestone: There are now more foreclosures on prime mortgages than on subprime ones.

Foreclosures in Virginia nearly tripled last month compared with July 2007, with Northern Virginia accounting for more than half of the foreclosures.

Virginia had 5,745 foreclosure filings last month and the 10th-highest rate in the country last month, RealtyTrac reported. The number of homes in the United States facing foreclosure in July jumped 55 percent from the year before.

There is a silver lining in some areas of Northern Virginia. Home sales in Prince William have increased sharply, as sizable price decreases have attracted first-time buyers and investors who want to take advantage of the deals, according to the Virginia Association of Realtors.

Experts said the housing market will not fully recover until foreclosures are absorbed.

The report from the Virginia Association of Realtors pointed to “dramatic” differences between Northern Virginia and other parts of the state, which have not experienced such steep drops in home prices. The association said it expects regional sales activity “to widen in the next quarter before the overall housing market edges back toward equilibrium.”

Virginia is almost like two different states, said Rick Sharga, senior vice president of RealtyTrac. “Northern Virginia tends to behave a little differently because of its proximity to the Beltway,” he said.

Having the 10th highest foreclosure rate in the country isn’t so terrible, Sharga said, because the rates in the top six states, including California and Florida, are much worse. “After the election in November, there will be an influx of new jobs, regardless of who takes office,” he said.

That’s the slogan for Keller Williams real estate agent Tamara Ludlam’s just formed bus tour of foreclosed homes.

Hauling interested homebuyers around in a mini-bus to get a look at recently foreclosed homes on a Saturday morning has become a national trend with tours now in such cities as Pismo Beach, Calif.; Fort Myers, Fla.; Tucson, Ariz. and many others.