Tag Archives: foreclosure

STILL UNDERWATER Following the housing crisis, SWFL still has an abundance of homes in foreclosure

STILL UNDERWATER
Following the housing crisis, SWFL still has an abundance of homes in foreclosure

BY NANCI THEORET

HOME FORECLOSURE CASES IN SOUTHWEST Florida have taken a roller coaster ride since the crisis hit the area full steam in 2009. In Charlotte and Collier counties, the track resembles the more gentle ups and downs toward the end of the ride. Lee County’s ride started with a rapid climb up the largest hill and teetered on the precipice for few years before taking a big plunge.

Experts predict the bumpy ride is mostly over throughout Southwest Florida.

Once the poster child for the country’s foreclosure crisis, Lee County has emerged from 2009’s record high of 57,136 foreclosure actions — and the national spotlight — to last year’s 8,622, according to Daren Blomquist, vice president of RealtyTrac, an online marketplace of foreclosure properties.

“Lee County behaved differently than many other Florida counties,” he says. “It just seemed there wasn’t much of a delay in filing foreclosures. In other counties we saw a rollercoaster pattern. Foreclosure started to go down then bounced back higher in 2012 and 2013.”

Such was the case in Charlotte and Collier counties. Charlotte County foreclosures in 2012 were up nearly 150 percent from 2011 — 2,100 vs. 1,407, according to clerk of court records. Collier, which peaked at 8,203 foreclosure filings in 2009, increased 127 percent between 2011 and 2012.

Foreclosures dropped in all three counties in 2013 with Lee County showing the greatest decline — a 30 percent decrease from 2012. Charlotte County’s foreclosure rate dropped nearly 15 percent; Collier’s nearly 9 percent. The reduction, according to a RealtyTrac report, was “much greater than for Florida as a whole. Charlotte County ranked 22nd in the state, Lee County 30th and Collier 52nd.

Since 2008 foreclosure cases have been filed against 120,525 underwater homeowners in the three-county region and Florida in 2013 continued to lead the country in foreclosure proceedings.

“Florida is still three times higher than the national average and that’s because Florida was harder hit to begin with,” says Mr. Blomquist. “Secondly there were delays in processing foreclosures.”

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Americans Are Starting to Miss More Mortgage Payments

Americans Are Starting to Miss More Mortgage Payments

By Christine DiGangi

For several quarters, lenders have been reporting low and falling delinquency rates for credit card, mortgage and auto loan borrowers, and that positive trend has opened up credit products to consumers with lower credit scores.

That may be starting to shift.

A greater share of mortgages were 30 to 59 days past due in the fourth quarter of 2013 than at the same time in 2012, and bank risk professionals expect credit card and auto loan delinquencies to follow suit.

Growing Concern

At the end of 2012, 2.05% of outstanding mortgages were at least 30 days delinquent, which was down from 2.39% in 2011. But at the close of 2013, the delinquency rate rose slightly, to 2.13%, according to data from the Experian-Oliver Wyman Market Intelligence Reports. Using Experian’s IntelliView tool to sort the data, the bump in delinquencies appears to be recent, as the 60- and 90-day delinquency rates remain below those of last year.

Problem Likely to Worsen

In a survey by FICO of bank-risk professionals, nearly half said they expect delinquency rates on all consumer loans to rise to their highest levels since late 2011. For credit cards, 44% of respondents expected delinquencies to increase, and 35% predicted auto loan delinquencies would jump.

We’ve seen concerns about delinquencies creeping up for a few quarters,” said Andrew Jennings , FICO’s chief analytics officer, in a news release about the survey. “These numbers mean more people are gaining access to credit, but we need to keep a close eye on the risk levels of these new loans. If delinquencies reach an uncomfortable level, we may see lenders pull back again.”

For complete article, click Here!

Park View renters shocked by foreclosure notices via Herald Tribune

Park View renters shocked by foreclosure notices via Herald Tribune

By Michael Braga, Herald-Tribune / Thursday, June 28, 2012

Park view Condo – sarasota, fl

Two renters in Sarasota’s Park View condo complex have gotten a rude surprise over the past few weeks.

They discovered their landlord — Michael Kell of Canton, Ohio — does not have firm title to the units he has been renting them since September.

Kell bought the units from the Park View Condo Association, which had foreclosed on the former owners because they had not paid their association dues. And Kell made the purchases knowing that the bank that provided loans for the former owners would some day foreclose and take possession of the units.

But Kell did not say anything about a pending foreclosure to the tenants. So when they received foreclosure papers in the mail, both Theresa Royal and Lucia Reid freaked out.

“This guy came came to my door in April and said my unit was in foreclosure and I was the unknown tenant and he needed to serve me,” Royal said. “I tried to call Michael and say: ‘Hey what’s up.’ He always returned my previous calls, but it took weeks to get a hold of him this time.”

Royal responded by withholding her May rent check and demanded that Kell prove he was the owner. Kell wasted no time in filing an eviction notes. In June, a Sheriff’s deputy showed up at Royal’s door and told her she needed to move within 24 hours.

“I have no family here,” Royal said. “I was hysterical. I asked that he just give me my money back, but he wouldn’t do that.”

Kell did not return two calls from the Herald-Tribune.

FOR FULL ARTICLE, CLICK HERE <–

Court records show that Kell has owned a condo in Park View since the height of the real estate boom. He paid $179,900 for a unit in September 2005 and bought another unit at 1350 Main for $481,800 in April 2007.

Thanks to the downturn, those units are now worth less than what Kell paid. But instead of selling at a loss, Kell has doubled down.

He bought a second unit at 1350 Main for $200,000 in January 2009 and a second unit at Park View for $52,900 in July 2010. He then resold the Park View unit at a $3,600 profit four months later.

In March 2011, he bought a third Park View unit for $38,000 and a fourth in May of that year for $47,000.

In between those two deals, he took title of a unit that had been foreclosed on by the Park View Condominium Association by paying that association $3,400.

He picked up another unit in the same way in August and has been renting one of those apartments to Royal for $850 per month and the other to Reid for $750 per month.

Both tenants also paid him security deposits and last month rent when they moved in.

“He’s been raking it in ever since,” Reid said.

5 Things Your Landlord Won’t Tell You

5 Things Your Landlord Won’t Tell You

By Kelli B. Grant , SmartMoney.com

Dec 8, 2010 Provided by: Shareretweet

1). “This building is in foreclosure.”
In late 2009, Melody Thompson called her landlords to ask about the well-dressed picture-takers outside her four-bedroom Portland rental home. “Oh, we’re refinancing,” she remembers them telling her. Then in late April, a formal bank notification arrived in the mail, stating that the home was in foreclosure and would be put up for sale in late August. “I was immediately angry,” says Thompson, the executive director of Financial Beginnings, a financial literacy nonprofit. “They lied.” The sale has been postponed twice as the landlords apply for a mortgage adjustment, but Thompson is still hunting for a new place.

Renters accounted for 40% of families facing eviction from foreclosure in 2009, according to the National Low Income Housing Coalition. And unfortunately, they often hear about it as Thompson did — from the bank, just weeks before the sale, says Janet Portman, an attorney and the managing editor of legal book publisher Nolo. “The landlord wants the tenant in there, paying rent,” she says. The lack of notice was so pervasive that last year Congress passed the Protecting Tenants at Foreclosure Act, which gives tenants at least 90 days from the foreclosure sale to move out. (Previously, they had as few as 30 days, Portman says.) Provided the new owner doesn’t want to live there, the law also lets legitimate tenants — those who signed a lease before the sale and pay a market value rent, among other qualifications — stay through the end of their lease.

2) “You should complain more.”
When a steady drip, drip, drip of water from the ceiling led a third-floor tenant to complain, Adam Jernow, a principal at property management firm OGI Management in New York City, assumed they were dealing with a leaky pipe. It wasn’t until a week later, when the tenants on the top floor two flights above that apartment finally called, that he realized they were dealing with a big roof leak from heavy summer rains. Had upper-floor tenants complained sooner, Jernow says, they could have limited the damage, and that third-floor tenant might not have had a problem at all. So while renters often assume quirks like hot-then-not showers or moisture on the walls is just part of big-city living – or that complaining to the landlord will just open up a can of worms – keeping a property owner informed can actually help a problem get fixed faster. Besides, most states require landlords to keep the property in good repair, with home systems and appliances in working order.

3) “There’s more to negotiate than the rent.”
Rental markets in many cities around the country have improved this year, which means landlords have less incentive to cut you a break. Just 31% of landlords lowered rent in 2010, versus 69% in 2009, according to property marketplace Rent.com. All the major real estate investment groups are asking for higher rent on new leases, and about half are doing so on renewals, says Peggy Abkemeier, the president of Rent.com.

But the market hasn’t improved so much that landlords don’t have incentive to keep good tenants, she says. The survey found that 44% of landlords are willing to lower security deposits, and 22% will offer an upgrade to a fancier unit (think better views, quieter neighbors, newer kitchen) without raising rent. And there’s still that 31% of landlords who will offer a price break. “It never hurts to ask,” Abkemeier says. In markets where vacancy rates are still high, such as Atlanta, Las Vegas, Orlando and Phoenix, tenants have a better chance.

For the last 2 items… Click Here to go to original story.

More than one in five homeowners underwater: Zillow

Ok, first things first. I am not a fan of Zillow. Zillow is consistently criticized for taking a biased approach for valuations. It is reticent to sticking your toe into the Atlantic Ocean off Daytona Beach, FL to get the temperature in the Atlantic Ocean off New England… Sometimes the market moves to fast to take its correct temperature.

Ok, now with that preface out of the way, the article reads like this.

Home values in the United States extended their fall in the first quarter, with more than one in five homeowners now owing more on their mortgages than their homes are worth, real estate website Zillow.com said on Wednesday.

Wildfires

U.S. home values posted a year-over-year decline of 14.2 percent to a Zillow Home Value Index of $182,378, resulting in a total 21.8 percent drop since the market peaked in 2006, according to Zillow’s first-quarter Real Estate Market Reports, which encompass 161 metropolitan areas and cover the value changes in all homes, not just homes that have recently sold.

U.S. homes lost $704 billion in value during the first quarter and have depreciated $3.8 trillion in the past 12 months, according to analysis of the reports.

Declining home values left 21.9 percent of all American homeowners with negative equity by the end of the first quarter, Zillow said.

By comparison, 17.6 percent of all homeowners owed more on their mortgage than their property was worth in the fourth quarter of 2008, and 14.3 percent were underwater in the third quarter of last year, the reports showed.

unclesamshow

Nine consecutive quarters of declines have left eight regions — including the Modesto, California, Stockton, California, and Fort Myers, Florida regions — with median value declines of more than 50 percent since those markets peaked.

In 85 of the 161 markets covered in the report, the annualized change over the past five years is negative or flat, the reports showed.

For the full article and continued depressing carnage... Click Here <—-

An Effort to Save a City by Shrinking It

What a terrific idea! I would think that this approach could be successful in different scales in many areas where populations have dried up along with jobs and hope.

Certain parts of cleveland would look better
, be safer and more enjoyable if the houses were gone and parks and open space existed instead.

fort jefferson

Below find the beginning of the article and the full story is provided in the link found here and below the story.

FLINT, Mich. — Dozens of proposals have been floated over the years to slow this city’s endless decline. Now another idea is gaining support: speed it up.

Instead of waiting for houses to become abandoned and then pulling them down, local leaders are talking about demolishing entire blocks and even whole neighborhoods.

The population would be condensed into a few viable areas. So would stores and services. A city built to manufacture cars would be returned in large measure to the forest primeval.

“Decline in Flint is like gravity, a fact of life,” said Dan Kildee, the Genesee County treasurer and chief spokesman for the movement to shrink Flint. “We need to control it instead of letting it control us.”

The recession in Flint, as in many old-line manufacturing cities, is quickly making a bad situation worse. Firefighters and police officers are being laid off as the city struggles with a $15 million budget deficit. Many public schools are likely to be closed.

“A lot of people remember the past, when we were a successful city that others looked to as a model, and they hope. But you can’t base government policy on hope,” said Jim Ananich, president of the Flint City Council. “We have to do something drastic.”

In searching for a way out, Flint is becoming a model for a different era.

Planned shrinkage became a workable concept in Michigan a few years ago, when the state changed its laws regarding properties foreclosed for delinquent taxes. Before, these buildings and land tended to become mired in legal limbo, contributing to blight. Now they quickly become the domain of county land banks, giving communities a powerful tool for change.

LINK TO FULL STORY <——

The Making of a Landlord

I saw the story’s title and was instantly drawn to it. A wonderful, realistic read. I hope you enjoy as much as I do.

Image004 “The Landlord of the Shadows”

written By Christopher Palmeri s a senior correspondent in BusinessWeek’s Los Angeles bureau.

I was chased by a wild dog.

I saw a home so stripped someone had even taken the front door. I attended a foreclosed-home auction that featured cheerleaders yelling in my ear. Finally, in March, I closed on a home I’m now renting out as an investment property.

I paid $125,000; it had sold for $345,000 four years ago.
In my one-year search, I came to expect surprises and to realize that even a good credit score doesn’t get you far.

One thing I learned: Avoid foreclosure auctions. The homes need lots of work, and most buyers don’t have time to do proper inspections. Ditto for “short sales,” where an owner tries to sell a home for less than what he owes the bank. There are too many decision-makers involved. I made an offer on a short sale. Nine months later it’s still on the market.

boston-foreclosure

I began my search in my Los Angeles neighborhood, but even with a big down payment, prices hadn’t fallen enough to produce positive cash flow for a rental property. So I searched Realtor.com for homes in suburbs a train ride away that seemed likely to have job growth. I found a two-bedroom, one-bath Spanish-style bungalow listed for $129,000 in Ontario, Calif. I offered $123,000; we settled on $125,000.

I figured getting a loan would be easy. I have good credit, no debt, cash in the bank, and a job. I was pre-approved for hundreds of thousands of dollars. Bank of the West wanted to charge me five points — a $5,000 fee to borrow $100,000. Says a bank spokesman: “Higher points for an investment property reflect the higher risk on that mortgage.” A rep at a major national bank said it wasn’t “competitive at loans under $100,000.” LendingTree.com promised to find me five offers in 48 hours. Two days later it said it couldn’t help.

Ultimately, an independent broker, Los Angeles’ Legend Mortgage, found me a loan with an institution I had never heard of, Burlingame (Calif.)-based Provident Funding Associates. I had to put down more than planned: 25%. And I’m paying 6.2% and one point in fees, more than the 5%, without points, I would have paid if the house were to be owner-occupied.

Provident put me through the wringer. Bank statements, tax returns, notarized interspousal escrow instructions. At one point, I was scraping and painting a house I didn’t own because the lender wanted damage repaired. I was out about $1,000 for inspections and other work before I was even sure I was going to get the loan.

The bank that owned the property wasn’t much fun, either. With such properties, banks offer a tight window for you to cancel your purchase based on inspections — seven days, in my case. And the bank wanted me to pay $100 a day if I didn’t close on the agreed day. This led to stress — and requests for waivers — on my end. On the bright side, bank-owned properties commonly sell “as is,” but with mine the bank paid more than $5,000 for a new sewer line, termite abatement, and other repairs.

Then it was time to rent it. I checked similar properties on Craigslist, then underpriced the rent at $1,100 a month to get a tenant fast. I had 16 interested parties in a few days. Some of the stories were heartbreaking — families living in cramped apartments and on food stamps just wanting a house for their kids. I showed it to two people and took an application from one, verifying employment and paying $30 to MySmartMove.com to check his credit.

In the end, my total cash investment was $47,000. Payments — taxes, insurance, everything — will be $750 a month (plus any repairs). If my tenant pays me for a year, I’ll get a 9% return, not including tax advantages or price appreciation.

If being a landlord is a hassle, the hope of a 9% return will ease the pain.

We wish you the best of luck Mr. Palmieri, the best of luck!

Boston’s John Hancock Tower, New England’s tallest building, was sold Tuesday in a foreclosure auction held by an investor group for $660.6 million, half the price paid by real-estate private-equity firm Broadway Partners three years ago

Boston’s John Hancock Tower, New England’s tallest building, was sold Tuesday in a foreclosure auction held by an investor group for $660.6 million, half the price paid by real-estate private-equity firm Broadway Partners three years ago.

Commercial_building_photo

Original post & story By — Email LINGLING WEI

The winning bidder was a partnership between Normandy Real Estate Partners and Five Mile Capital Partners, which holds the senior portion of $700 million in so-called mezzanine debt, or the part that fills the gap between the first mortgage and a borrower’s equity. The partnership agreed to pay $20.1 million for the mezzanine debt and assume the first mortgage of $640.5 million. The Normandy-Five Mile team has bought pieces of the mezzanine debt at discounted prices since June 2008. The debt was originally made by Greenwich Capital, which is part of Royal Bank of Scotland Group PLC, and Lehman Brothers Holdings Inc.

The auction, which some participants described as a “non-event” and lasted only a few minutes, reflects a steep decline in commercial-property values as the economic distress sweeps through office buildings, shopping malls, hotels and the like. The investor group moved to conduct the foreclosure auction after Broadway defaulted on the mezzanine loan, which came due in early January.

Unless other creditors or Broadway Partners go to court to try to block the foreclosure, the Normandy-Five Mile partnership will take over the building immediately. People familiar with the matter said a court fight is “highly unlikely.”

The Normandy-Five Mile partnership also won the bidding for one other office tower controlled by Broadway Partners in Southern California, called 10 Universal City Plaza near Los Angeles. Their winning offer was about $304.9 million.

For full article and other commercial news, visit WSJ, here <—-

How to stall a Foreclosure “Produce the Note” video

Facing foreclosure? Info at http://www.consumerwarningnetwork.com may help. Your goal is to make certain the institution suing you is, in fact, the owner of the note. There is only one original note for your mortgage that has your signature on it. One such case is profiled on CNN’s Your Money.
The 3 videos below are all different stories, but offer similar advice…

Barack Obama announces Homeowner Stability and Affordability Plan

On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan, designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages.

cougarace_225x152

This plan aims to assist homeowners who have maintained payments and are making earnest attempts to continue along the path. Rather then try to help a boater after they have fallen into the raging waters, this aims to give them a lifejacket and stabilize the boat beforehand.

The 3 main components of the plan, via http://realtor.org are as follows:

1. Government Sponsored Enterprises (GSEs) Refinancing for Up to 4 to 5 Million Responsible Homeowners with GSE loans to Make Their Mortgages More Affordable

2. A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners

3. Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac

For a chart breakdown, visit this link.