Housing Market Tracker - Even Mortgage Brokers Want to Stop Foreclosures

Foreclosure Data

This Is Good for Housing. “Johnny Isakson, U.S. Senator (R-Ga.): “I take exception to the (Op-Ed) assertion that the $7,000 tax credit in the Senate housing measure will encourage home foreclosures. I was in the real estate business for 33 years… No one wants a foreclosure. The banks know that it is an expensive, lengthy process… The $7,000 tax credit for anyone who purchases a foreclosed home within a year of the proposal's enactment will inspire qualified buyers to get off the sidelines and into the market. It will allow us to replace loan defaults with good mortgages, which will stabilize housing prices for all homeowners.” (Washington Post, Apr. 10th)

Foreclosure Tours Offered In Pittsburgh. “With 400 property foreclosures in the Pittsburgh area reported in February alone -- the highest level for the month in 22 years… local real estate agents are trying out [a] bus tour idea in the region. Last month, Tal Crandell, assistant manager of Coldwell Banker Real Estate's North Hills office, along with real estate agents Ben Hess and Jim Miller, went on the motor coach tour to show nearly 25 potential buyers and investors about a dozen foreclosure buying opportunities… Believed to be the first of its type in the region, the tour was patterned after trips offered in other cities [like] California.” (Pittsburgh Tribune Review, Apr. 10th)

Interview with FDIC Chairwoman Sheila Bair. “Bair: “I am increasingly concerned about… the potential for a downward spiral, where we have too much inventory, additional foreclosures adding to inventory, which forces home prices down, meaning fewer people can refinance—leading to more foreclosures and more downward pressure on home prices. If this downward spiral takes hold, there could be much broader ramifications for the economy as a whole… We need to come to grips with the need for government intervention. It's not politically popular. We just need to be honest with people… that additional measures are going to have to be taken. And yes, it may cost money.” (Calculated Risk, Apr. 9th)

HUD Stops Ohio Communities From Buying, Selling Foreclosed Homes. “Federal authorities have stopped Ohio and Michigan communities from buying and renovating hundreds of foreclosed houses, leaving local officials stuck with - and frustrated by - neighborhood eyesores. The U.S. Department of Housing and Urban Development said in a memo dated Tuesday that it has delayed the sales because it wants to review the program, and it might clear it within a month. The government's problem: There are more of these sales pending in Ohio and Michigan right now than there have been nationwide in the program's five-year history. The sheer volume in Michigan and Ohio raised alarms.” (Cleveland.com, Apr. 9th)

Illinois Foreclosure Assistance Pool Growing. “RealtyTrac: More than 2.2 million homes fell into some kind of foreclosure action in 2007, a 75% increase from 2006… Illinois foreclosure filings in February jumped 32% compared with February 2007. In February, state officials launched the Illinois Statewide Foreclosure Prevention Network, which gives free counseling to homeowners who are behind on payments… The Illinois Homeowner Assistance Pool… started with four Chicago area mortgage lenders pledging $200 million so homeowners with low credit scores… in subprime, adjustable rate or even some fixed-rate mortgages could refinance into stable, lower-rate mortgages… Today four more lenders [joined] the pool, adding another $110M in lending power.” (Rockford Register Star, Apr. 9th)

Freddie Mac Expands Disclosures on PC Securities. “Freddie Mac (FRE), a government-sponsored enterprise that supports affordable housing through the acquisition of government-backed mortgage loans, said Wednesday that the company is now offering nine new loan-level disclosures and increasing two existing disclosures related to single-family fixed rate and adjustable-rate mortgage Participation Certificate [PC] securities. In June, the GSE will be offering nine new disclosures on all PC securities and for all PC securities dating back to December 1, 2005.” (Default Servicing News, Apr. 9th)

Alabama Mortgage Brokers Association Pushes for Reform. “The Alabama Mortgage Brokers Association [AMBA] ascended on the state's capitol Wednesday to push for mortgage reforms that will include a licensing system for loan officers, as well as additional professional credentials to help borrowers identify qualified lenders…AMBA President Craig McMurtrey: “We have been trying to bring about statutory mortgage reform for years. With the national crisis grabbing daily headlines, it may be our year to solidify real mortgage reform and Restore Public Trust.” (Default Servicing News, Apr. 9th)

AG Obtains Judgment In Fraudulent 'Foreclosure Rescue' Firm Case. “Texas: An order by the Bexar County District Court requires Foreclosure Assistance Solutions Inc. of Florida, and its principal operators, Herb Zerden and Adolfo Quintero, to return $370,000 to 338 Texas homeowners. Additional defendants J.W.W. Services Inc. of California and owner John Woodruff are also included in the judgment. Another $105,000 will be held in escrow to assist remaining homeowners who can demonstrate they were victimized by this scheme.” (KLTV, Apr. 9th)

Foreclosure 'Auctions' A Popular Choice For Valley Homebuyers. “Foreclosure auctions have become a popular choice for buying and selling real estate in the Valley… On a recent day in Chandler, Countrywide (CFC) unloaded 175 properties from its foreclosure portfolio… "There were a couple of properties in Scottsdale, they ended up going for half what their most recent value was," said Dominic Palazzo of Ahwatukee.” (ABC 15, Apr. 9th)

Plan Aims To Rescue Distressed Mortgages. “Sen. Chris Dodd, D-Conn., announced Wednesday the Senate Committee on Banking, Housing and Urban Affairs will hold a hearing today on a proposal that would allow the federal government to buy mortgages of distressed borrowers and then refinance them to keep those borrowers in their homes. Called the Hope for Homeowners, Dodd envisions a division within the Federal Housing Administration that can buy mortgages at reduced prices and then issue a new loan at an affordable rate… Some estimates say as many as 50 million homes could be in danger of falling into foreclosure in the next two years. (Connecticut Post, Apr. 9th)

Arapahoe County Foreclosure Prevention. Denver, Colorado: “Arapahoe County will team with Brothers Redevelopment to host a Foreclosure Prevention Workshop… In fall 2007, ArapahoeCounty allocated a $10,000 Community Development Block Grant to Brothers Redevelopment in an effort to provide foreclosure prevention counseling... Additionally, the County has allocated another $15,000 in CDBG funds for 2008-2009. The clients can be from ArapahoeCounty, excluding the City of Aurora, as Aurora has their own foreclosure prevention counseling program.” (Your Hub, Apr. 9th)

St. Paul Looks Hard At Fallout Of Foreclosure. Minnesota: St. Paul plans to use legal action, foreclosure prevention counseling, code enforcement and other tools to fight [foreclosure] blight. The city has issued letters to six firms [including] U.S. Bancorp and Wells Fargo (WFC)… that it says own or control more than 440 vacant properties in St. Paul… Steve Magner, head of the vacant building monitoring department [whose] department budget jumped from $338,000 in 2005 to more than $600,000 this year: There were 1,706 vacant buildings in the city as of April 8. About one-third of the 1,819 foreclosed buildings in 2007 were registered as vacant. City Council researchers predict… foreclosures this year could exceed 2,300.” (Star Tribune, Apr. 9th)

Foreclosures Come To Mcmansion Country. Virginia: “Loudoun is one of the nation's most affluent counties, with a median household income of $98,000, more than double the national figure. The county has also ranked as one of the nation's fastest growing in recent years as developers built thousands of [McMansion’s.] High-interest loans accounted for 16% of the total… in 2005… One out of every 69 households in the county was in foreclosure in Q4’07, well above the national average of one filing for every 555 households, [RealtyTrac]. Local realtor Tony Arko: At the end of 2007, 20 of the 25 houses for sale for more than $850,000 in Loudoun County appeared to be foreclosures.” (Reuters, Apr. 7th)

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Comments

[Pent up demand:]

I guess I need to get off my a$$ and buy a foreclosed McMansion since these bailouts (along with every other form of government largesse) will leave my kids so heavily taxed that they'll never afford to live on their own. I need more space.

2008 Apr 10 10:49 AM

[nukldrager:]

No links, or quotes, just a nagging question. Where where will the income come from to support a return to a reasonable lifestyle for Americans that have lost jobs, or purchasing power indirectly through inflation. In other words a DTI that can support life on earth?

2008 Apr 10 11:07 AM

[gordon:]

Congress has no right to put more mortgages on we, RESPONSIBLE TAXPAYERS, using Fannie, Freddie, and FHA, which, according to the NYT yesterday, is near insolvent NOW! ALL PROPOSALS SHOULD GO TO A NATIONAL VOTE! Pay-go should be mandatory. If not an election year, half of these proposals wouldn't be happening. GIVE A VOICE TO THOSE OF US PLAYING BY THE RULES! Circulate petitions giving those of us in the US with 20% down and fixed rates TO DEMAND OUR LENDER LOWER OUR RATES TOO!

2008 Apr 10 11:21 AM

[WeezieBenobi:]

I agree with you gordon. I'd love to live in a $500K home too (in Austin, TX, you can get one heck of a home for that), but no, my husband and I got a home that has a payment that is only 13.8% of our income (that's mortgage, taxes and insurance all together, by the way) so that we can have a bit of breathing room and actually have a retirement savings, savings for our kid's college and 6 months savings in case of an emergency. I'm really p***ed that my taxes will go up and inflation through the roof, destroying all that I've worked for. I'm tired of being screwed for doing the right thing.

2008 Apr 10 11:56 AM

[Pent up demand:]

gordon, your faith in the electorate is commendable if misplaced. 85% of registered voters polled about the housing crisis said they preferred nacho cheese Doritos over cool ranch flavor.

2008 Apr 10 12:00 PM

[tanstaafl71:]

I'm with you, gordon. Any burden taken on by the gov't is shared across all our shoulders. By "our", I mean those of us that AREN'T in foreclosure, certainly not those that are. They're going to get help to recover from thier own mistakes. However, I disagree that a petition should be circulated. Petitions make us feel better, but they are notoriously ineffective. A better option may be to contact your congressman (person?) directly and voice your opinion there. Something we can all agree on... don't punish those of us who are doing it right!

2008 Apr 10 12:05 PM

[glenny G:]

The pols, as usual, are just trolling for votes--they don't give a ____ about "rescuing" defaulting homebuyers. The real reason for these bail out plans is to shore up house prices. Right now the Fed and most of the banking industry are getting desperate for any plan or scheme that will provide price stability; otherwise all of the mortgage-backed securities they have on their books will drag them down into bankruptcy as house prices fall.

2008 Apr 10 02:49 PM