February

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Buyers of Pricey Homes to Get A Bit of A BreakJimmy Garza has been waiting for weeks for President Bush to sign the economic-stimulus package, which should allow him to refinance the $560,000 mortgage on his home in Thousand Oaks, Calif., and get a new, lower-rate loan. Garza and other homeowners and buyers in such high-cost states as California, New York and Florida will get an extra — but only temporary — break from the federal stimulus package: lower interest rates for so-called jumbo mortgages. February 19, 2008
Some Homeless Turn to Foreclosed HomesThe nation’s foreclosure crisis has led to a painful irony for homeless people: On any given night they are outnumbered in some cities by vacant houses. Some street people are taking advantage of the opportunity by becoming squatters. Foreclosed homes often have an advantage over boarded-up and dilapidated houses that have been abandoned because of rundown conditions: Sometimes the heat, lights and water are still working. “That’s what you call convenient,” said James Bertan, 41, an ex-convict and self-described “bando,” or someone who lives in abandoned houses. February 19, 2008
Delinquencies Rise at CountrywideCountrywide Financial (CFC), the nation’s largest mortgage lender, said Friday that delinquencies and foreclosures rose in January to the highest on record, reflecting the nation’s deepening housing and credit crunch. Delinquencies in Countrywide’s servicing portfolio increased to 7.47% in January, from 7.2% the previous month and 4.32% in January 2007. Loan servicers collect mortgage payments and distribute them to the owners of the mortgages. February 19, 2008
Regulators’ Subprime Mortgage CasesState regulators and cities that have filed cases or disclosed investigations targeting Wall Street firms’ roles in the subprime mortgage market… February 19, 2008
From Foreclosure Signs to Auto Repo LotsA growing number of Americans are buckling under the weight of debt as the troubles that started among homeowners with subprime mortgages last year spread to other consumers who rely on credit. Auto loan borrowers are having an especially hard time. The number of people more than 60 days late on their car payments has spiked to a 10-year high, according to Fitch Ratings. February 19, 2008
For Perhaps $490 a Month, a Home on the Hudson RiverSince 1937, when Franklin Delano Roosevelt was president, the 79th Street Boat Basin has been an object of fascination off the island of Manhattan, part fishing village, part Monte Carlo and all floating opera all of the time. The boat basin floats on five main docks on the banks of the Hudson River. For decades, there have been as many as 100 pleasure craft, some pristine, others slovenly — schooners, houseboats, yachts and trawlers — tethered just off the Riverside Park promenade, three blocks from Broadway and Zabar’s. Critics have called the residents squatters on public property, in a high-end trailer park; even the city government, which owns the docks, has not always been comfortable with the arrangement. February 19, 2008
Harlem Pas de DeuxFor the past decade, Harlem has been gentrifying rapidly. But while affluent white professionals are the visible symbol of that change here and everywhere else, the fact is that often the well-off arrivals, like the patrons at BBraxton, are black. Gentrification in any color makes similar impacts — rising rents, high-end merchants, displacement, home renovations — but black gentrification has an emotional texture far different from the archetypal kind, both for residents and for newcomers. This is particularly true in Harlem, the historic capital of black America. February 19, 2008
‘Free and Clear’ Ownership: An Overvalued ConceptQ: Our condominium is worth about $350,000, and we owe only $25,000 on our mortgage. We are from the old school and want to own this property free and clear. We have the money and are considering paying off the loan. Is this a good idea? If so, how do we go about making sure it is done correctly? February 19, 2008
Housing Slowdown Puts Day Laborers in LimboThe most desperate men park themselves on corners well before dawn, hoping for first dibs on jobs. Most days, no one gets dibs — no one gets jobs. Foreclosures are at record highs, home sales are slumping and skittish consumers are cutting back on spending, all of which means contractors, construction crews and carpenters are no longer hiring. Neither are landscapers, cleaning services or homeowners. Work, never a given for day laborers in the best of times, is almost non-existent these days. “These are the worst of times,” would-be worker Ramon de la Cruz said recently in Spanish, noting that he had worked only one day in the previous six. February 19, 2008
Banks Unloading Abandoned Houses at Cut-Rate PricesA growing share of home sales in the United States are from foreclosures, especially in states hardest hit by the housing bust. In some parts of California lately, nearly 50 per cent of home sales come from foreclosed houses. The trend, which is putting additional downward pressure on home prices, is most notable there and in Nevada, Colorado, Tennessee and Michigan, but is also evident in Ohio, Georgia, Florida and Arizona, according to an Associated Press comparison of 2007 sales and foreclosure data. February 19, 2008
Bush Administration Was Predatory Lenders’ Partner in CrimeEven though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers. Predatory lending was widely understood to present a looming national crisis. This threat was so clear that as New York attorney general, I joined with colleagues in the other 49 states in attempting to fill the void left by the federal government. Individually, and together, state attorneys general of both parties brought litigation or entered into settlements with many subprime lenders that were engaged in predatory lending practices. February 19, 2008
In Home Foreclosure, If It’s Not Nailed Down …Mike Burgur returned from work last month to interrupt a break-in at his rented Clearwater Beach condominium. The intruders were stripping fans off the ceiling and the knobs off the doors. They had carted out the refrigerator and yanked up a toilet. They’d even pulled the plates off electrical outlets and unscrewed the faucet handles. As he stepped around the broken eggs and jelly jars on the kitchen floor, Burgur had no trouble recognizing the culprit: It was his own landlady. February 19, 2008
Foreclosure Study Says Vacant Properties Cost Cleveland $35+ MillionVacant properties - abandoned in part by a mountain of foreclosures - so far have cost Cleveland more than $35 million, says a study of eight Ohio cities to be released Tuesday. The tally includes property tax dollars lost, as well as wages paid for workers to fight fires, mow weedy lawns and board broken windows, according to the report commissioned by a partnership of local government and civic organizations called ReBuild Ohio. The study is one of two released this week dealing with issues tied to the region’s foreclosure crisis. Cleveland’s Housing Research & Advocacy Center reported Monday that a disproportionate number of black Ohioans end up with high-interest subprime mortgages. February 19, 2008
Judges Hear Arguments in Craigslist LawsuitA three-judge panel for the Seventh Circuit U.S. Court of Appeals is considering whether craigslist is protected from liability for online postings by site users that violate the Fair Housing Act. The Chicago Lawyers’ Committee for Civil Rights Under Law Inc., a nonprofit group that advocates for affordable housing and compliance with fair housing law, among other issues, filed its appeal in January 2007 following a November ruling by a U.S. District Court judge who found that craigslist is an “interactive computer service” under federal law and is not considered a publisher. February 19, 2008
Oakland Mayor Proposes Affordable Housing PlanMayor Ron Dellums is proposing that developers who build projects with 20 or more units in Oakland either include affordable units in their projects or pay into a fund for affordable housing. Dellums’ inclusionary zoning proposal, which the City Council will discuss today at a special workshop, has earned praise from affordable housing advocates concerned about Oakland residents being priced out of the market but drawn fire from developers and City Council President Ignacio De La Fuente, who say it will kill development in Oakland and hurt city coffers. February 19, 2008
‘Raisin’ Has A New Day In The Sun as ABC Television MovieA black man from Chicago puts everything on the line to reach for the American dream. Today, that could mean running for the White House; 50 years ago, it meant moving to a white neighborhood. It’s a case in point of how far we’ve come, but that same basic human aspiration drives A Raisin in the Sun, the groundbreaking 1959 play written by Lorraine Hansberry, the first black woman to have a play produced on Broadway. The suburban America that Hansberry complained about so poignantly was as segregated in the mid-20th century as the South was a century earlier. February 20, 2008
New Md. Rules Aim To Aid Those Facing A Risk of ForeclosureCiting an “alarming” rate of mortgage foreclosures in Maryland, Gov. Martin O’Malley announced emergency regulations yesterday requiring loan service companies to tell the state when residents are in danger of losing their homes so the government can offer preemptive help. O’Malley (D) said the mortgage industry has failed to help troubled homeowners, pointing to poor customer service at major loan service companies, which collect mortgage payments and are authorized to negotiate and modify loan terms. The governor has summoned industry officials to meet with him in Annapolis next week. February 20, 2008
Editorial: Lawyers Should Volunteer to Give Homeowners in Foreclosure HelpMore than 83,000 foreclosure cases were filed last year in Ohio. The cost of devastation from abandoned property - an outgrowth of the foreclosure crisis - totals more than $63 million across the state. The bill includes foregone property taxes as well as the costs of fighting fires, boarding up homes and keeping lots clear of debris. In the Cleveland area alone, the price tag tops $35 million, according to ReBuild Ohio, a collection of local government, nonprofit and civic groups concerned with the debilitating effects of vacant and abandoned property. February 20, 2008
Housing Authority Leaves Neediest in ColdAlmost three years after the Clearwater Housing Authority announced it was closing Homer Villas, a 61-unit rental apartment complex for people who could not afford market rents, we know what will happen to the land. Habitat for Humanity plans to buy the property, situated at Betty Lane and Sunset Point Road in North Clearwater, tear down the long-vacant apartments, and build a neighborhood of at least 50 single-family homes called Stevens Creek. February 20, 2008
Maine’s Aging Boomers: AARP Grows as Boomers Seek Discounts, Political VoiceLast April, 300 AARP members wearing red t-shirts flooded the Statehouse halls to lobby for bills.That day, predatory lending, financial exploitation of the elderly, and the practice of cutting the unemployment benefits of those on Social Security led the agenda. Even without busloads of citizens, the AARP has a strong presence at the Statehouse any time the Legislature is in session. Because of the state’s aging population, and the surge of boomers that will continue the trend, Maine has been the fastest growing AARP affiliate in the country in the last few years, said Jud Dolphin, state director of AARP Maine. February 20, 2008
Ruling on Arundel Fee Backs Homeowner RefundsAs he prepared to close on a newly built home, Dan Puckett scrutinized the long list of costs on his settlement sheet, unaware that Anne Arundel County had already assessed an “impact fee” to pay for improvements to schools and roads in his Odenton neighborhood. Now, 14 years later, Puckett stands to get a portion of the roughly $2,000 fee back, as do more than 20,000 other people whose homes were built in the county from 1988 to 1997. The payments amount to a rare refund of a fee, paid by developers, that most homeowners know nothing about. February 20, 2008
Detroit: Highest Home Foreclosure Rate in USOver the last four decades, Detroit has gone from boasting the highest rate of home ownership in the nation to the highest rate of home foreclosures in the US. Last week, the mortgage research company RealtyTrac Inc. announced that the economically depressed automotive center had the highest foreclosure rate in 2007 of the largest 100 metropolitan areas nationally. February 20, 2008
Canada: Homeless Crisis LoomsRick lives on a limited income, and called the Bell Hotel “home” for about five years. Although the Bell was aging and in serious need of repairs, there was a sense of community there. The 52 tenants — the elderly, physically handicapped, mentally ill and those struggling with addiction issues — relied on each other and watched out for each other. Grocery deliveries. Prescription pick-ups. Whatever was needed. People believed the most frail were the most looked after. February 20, 2008
Fed Reins in Growth ForecastThe Federal Reserve yesterday slashed its forecast for the country’s economic growth as fresh evidence showed that prices for a wide range of goods are soaring. The twin announcements crystallize the challenge facing the central bank as it tries to prevent a recession without letting inflation get out of hand. The Fed has been focused this year on the first concern, as the bank has rapidly cut interest rates to keep the economic downturn from becoming severe. February 21, 2008
Home Loan Demand Plunges as Interest Rates RiseMortgage applications plunged last week, and demand hit its lowest level since the start of the year as interest rates surged, an industry group said Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Feb. 15 fell 22.6% to 822.from a week earlier. That was the lowest level since the week ended Jan. 4. February 21, 2008
New Lull Shows Housing May Not Have Reached BottomHousing starts in January remained near their lowest level since 1991, a sign that the deepest real estate recession in a quarter-century will continue to weigh on the economy this year. Work began on homes at an annual rate of 1.012 million, up 0.8% from December, the Commerce Department said. Building permits, an indication of future construction, fell 3%. February 21, 2008
Home in Box Had Its Problems; Alternative Does, TooThe box is as long and low as a frontier coffin, and answers soundly a knock of the knuckles. It has four small wheels and a heavy chain that snakes through a hole on the side and wraps around a “No Standing” sign. Hundreds of neighbors and Little Italy tourists pass it every day, just off a strip of busy lighting stores on the Bowery at Broome Street. They pass the box with barely a glance. One man does not pass: John Cornelius Foley, a 6-foot-2, lumbering slab of damaged Irish-American age 57 years this May. He limps slowly, his right leg below the knee as knotty and bulbed as an old root. He stops at the box, digs a key out of his jeans and stoops over, working the padlock on the chain. He pulls an end of the box open on its hinges and peers into the place he calls home. February 21, 2008
City’s Sweeping Rezoning Plan for 125th Street Has Many in Harlem Concerned February 21, 2008
Subprime Loan Problem Not Going Away Soon, Researcher Tells Alabama GrantmakersThirty percent of the mortgage loans made in Alabama in 2005-06 were subprime loans, and one in six of them has ended or will end in foreclosure, a researcher for a North Carolina-based nonprofit opposed to predatory lending practices said Wednesday. With rates poised to adjust this year on more subprime loans and over the next two years for high-grade mortgages, foreclosures will continue to be an issue over the next several years, Ellen Schloemer of the Center for Responsible Lending said during a workshop at Alabama Giving’s annual Grantmaker Summit. February 21, 2008
Democrats Differ on Foreclosure RemedyAs they race back and forth between Ohio and Texas in advance of their March 4 primary showdown, Barack Obama and Hillary Rodham Clinton are squaring off over who has the answer to the nation’s spiraling foreclosure crisis. Neither presidential rival offers a comprehensive solution, economists say, but that has not inhibited them from touting their populist credentials and tugging at voters’ heartstrings. Hours before he won the Wisconsin primary Tuesday, Obama met with a San Antonio couple trying to save their home, then emphasized his proposal to provide tax credits to struggling homeowners and toughen prosecution of predatory lenders. February 21, 2008
Arson Fears Follow Foreclosure SpikeAcross the country, fire investigators are looking at some homeowners in foreclosure as potential arsonists. In Modesto, Battalion Chief Hugo Patino looked over a charred and nearly destroyed home — a home that was empty and is now set for auction. “A fire in an empty house is always cause for suspicion,” Patino said. February 21, 2008
Foreclosures in State Increased 40% in ‘07Forty percent more homes entered foreclosure in Colorado last year than in 2006, despite numerous efforts by state and local officials to stem the tide. Public trustees reported 39,915 new foreclosures last year, compared with 28,509 in 2006. Of that total, 25,320 homes were lost at foreclosure sales last year, compared with 17,451 in 2006, according to a tally compiled by the Colorado Division of Housing. Statewide, there was one foreclosure filing for every 45 households last year, versus one per 58 households the year before. Adams County was the hardest-hit area, with one foreclosure for every 23 households. Denver had the highest number of new foreclosures of any county at 7,909. February 21, 2008
Affordable Housing Projects in L.A. County Given GrantsFive projects in Los Angeles County will receive $24 million in state funds from bonds designed to build affordable housing and reduce homelessness, Gov. Arnold Schwarzenegger announced Wednesday. Statewide, Schwarzenegger said 40 projects will receive $73 million to create 1,611 housing units. The five Los Angeles County projects will provide at least 295 units. The funding comes primarily from the Propositions 1C and 46 bond measures approved by voters. February 21, 2008
Bid to Sell City Land Stirs OutcryIn his quest to balance the city’s books, Los Angeles Mayor Antonio Villaraigosa is gearing up to sell city-owned properties in some of the Westside’s most sought-after neighborhoods. But Villaraigosa’s budget-saving strategy is running up against one of his biggest campaign pledges: to expand affordable housing. The plan to sell “surplus” properties, which could be used for low-income apartments, has also put Villaraigosa at odds with one of his closest City Council allies, Bill Rosendahl, and with Westside neighborhood leaders who seem baffled by his determination to give up sites that could house the poor and elderly. February 21, 2008
Decline in Condo Conversion Means Little to Some ChicagoansEven though the most recent condominium conversion craze has slowed, many Chicago renters are still at risk for losing their leases. When the real estate market boomed a few years ago, many developers started buying apartment buildings and converting them to condominiums. The high demand for real estate meant that selling units was more profitable than renting them. The surge of 2004-06 was the latest in a pattern of condo conversions dating back to the 1970s. February 21, 2008
Welcome Mat A No-ShowSo when residents of Little Tokyo Lofts noticed a few months ago that a tenant would be moving into the long-vacant, ground-floor retail space of their building, they got excited and started wondering who it would be. A new restaurant or coffee shop? A dry cleaner? Then they learned that the space was to be filled by a mental health service provider. The new neighbor has met with protests from some loft dwellers, who argue that their neighborhood has more than enough social services centers aimed at the homeless population and that what they need is more stores and eateries. February 21, 2008
Fighting Foreclosure Part IIOwning a home should be a pleasant experience overall, but if you’ve been following the news, you know that more and more people are getting into financial trouble, in trying to keep up with rising mortgage payments. In a special report Wednesday, our Bill Churchwell has some helpful tips on how to avoid foreclosure. February 21, 2008
Residents Can Now Pay Rent Via Mobile PhonesRentPayment, a division of YapStone Inc., a payment processor to the multifamily property market, is launching Cardinal MAX, the mobile platform from CardinalCommerce Corp., which will allow residents to make payments via their mobile phones. Through the Cardinal MAX technology from CardinalCommerce, a Cleveland, Ohio-based company that enables payment brands for mobile and eCommerce, RentPayment’s clients can now receive a monthly alert when their rent is due and make a payment via a mobile phone text message. The only fee attached to this service is the convenience fee—if at all—that a property management might be already charging. February 21, 2008
LANDLORD JAILED FOR INHUMAN CONDITIONS IN BRONX BUILDINGHousing Preservation and Development (HPD) Commissioner Shaun Donovan today announced that Landlord Hamid Khan has been sentenced to nine days in jail for criminal contempt for failing to repair hundreds of violations of the Housing Maintenance Code, including immediately hazardous conditions, in his tenants’ apartments. The case involved 1055 Dr. Martin Luther King Jr. Boulevard, a 94-unit building in the Bronx. There are currently 2,268 outstanding Housing Maintenance Code violations on the six story building. February 21, 2008
O’Malley Chastises Mortgage IndustryGov. Martin O’Malley accused the mortgage industry yesterday of failing to follow through on promised assistance for homeowners facing foreclosure and called on more than two dozen loan servicers to meet with him in Annapolis next week. At a news conference yesterday, he joined administration officials and nonprofit housing counselors in relaying consumer complaints about busy signals at loan servicers, long waits on hold and a lack of assistance once homeowners do get in touch with customer service representatives. February 21, 2008
Baltimore Among Cities, Regulators Pursuing Mortgage MisdeedsRegulators are trying to punish Wall Street for mortgage finance practices that expanded homeownership and spread risk among a host of new players - but also may have duped borrowers and investors who supplied cash to fuel a housing boom that’s turned bust. A handful of state securities regulators and a couple foreclosure-blighted cities - including Baltimore - have fired the opening shots with lawsuits trying to prove that investment banks and big lenders are guilty of more than just bad business decisions and failing to foresee looming mortgage troubles. February 21, 2008
Find Ways to Buy Foreclosed Homes Beyond AuctionsYou might think that it’s an especially good time to get a deal on a foreclosed home at an auction. It isn’t. Despite the growing number of foreclosures across the country, there are few bargains to be found at auctions. For one thing, you’ll be competing against savvy local investors who know how to gauge a property’s real value. What’s more, many properties are mortgaged so steeply that banks often ask for bids that are higher than the properties are worth. February 21, 2008
Lenders Fighting Mortgage RewriteThe nation’s largest lending institutions are lobbying hard to block a proposal in Congress that would give bankruptcy judges greater latitude to rewrite mortgages held by financially strapped homeowners.The proposal, which could come to a vote in the Senate as early as next week, is being pushed by Democratic congressional leaders and a large coalition of groups that includes labor unions, consumer advocates, civil rights organizations and AARP, the powerful senior citizens’ lobby. February 22, 2008
Foreclosure Auctioneer’s Lonely TaskWith an unhurried stride and a fresh stack of mortgage loans gone bad, Rick Crossley arrived at the small plaza outside the Prince William County courthouse on a bright, windy morning recently and found it deserted. He cleared his throat, opened a thick folder and, with little ceremony, began to read aloud. “This is a trustee’s foreclosure auction,” he announced. “Any parties with interest, please step forward at this time.” February 22, 2008
Rescues for Homeowners in Debt WeighedProdded in part by some of the nation’s biggest banks, the Bush administration and Congress are considering costly new proposals for the government to rescue hundreds of thousands of homeowners whose mortgages are higher than the value of their houses. Not since the Depression has a larger share of Americans owed more on their homes than they are worth. With the collapse of the housing boom, nearly 8.8 million homeowners, or 10.3 percent of the total, are underwater. That is more than double the percentage just a year ago, according to a new estimate of the damage by Moody’s Economy.com. February 22, 2008
Waterfront Homeowners Living on the EdgeOn ritzy waterfront lots around Maryland, many homeowners are ignoring a rule against building anything too close to the shore — and, in many cases, they’re getting away with it. In 116 cases since 2005, decks, pools, carports and even houses have been illegally built within a protected buffer zone near water, state records show. In two-thirds of the 81 cases for which full records are available, city or county officials have allowed the rule-breakers to keep what they built. February 22, 2008
30-Year Mortgage Rates Break Back Above 6 PercentRates on 30-year mortgages rose to their highest level in seven weeks, breaking above the 6 percent level. Freddie Mac, the mortgage company, reported yesterday that 30-year fixed-rate mortgages averaged 6.04 percent this week, up from 5.72 percent last week. That is the highest level since the first week of the year, when the 30-year mortgage stood at 6.07 percent. For the next six weeks, the rate fell below 6 percent as financial markets reacted to the sharp slowdown in economic growth and growing risks of a recession by pushing interest rates lower. February 22, 2008
Lender Accord Gives Stressed-out Homeowners A BreatherRetail sales were up more than expected in January. Is it a sign that the great residential real estate slowdown is almost over? Hardly. The housing industry continues to move along at a glacial pace, with a rising number of homes for sale and home loans in default. The news is somewhat grim, with most of the private mortgage insurers announcing their first-ever (and massive) losses, as they are required under their PMI policies to pay out millions of dollars. February 22, 2008
How to Get That Extra Bill Off Your Mortgagef you bought a house in recent years without a big down payment or without a second mortgage, you’re probably paying for private mortgage insurance every month. But you don’t have to forever.You can qualify to cancel it if you’ve made enough payments, raised the value of your property with home improvements or (rarer and rarer nowadays) live in an area that is seeing strong gains in sales prices. One or more of those options can get your loan balance down to 80 percent of the value of the home when you got the loan, the magic number. February 22, 2008
2 La. Insurance Lawsuits May Rock Legal WorldFor thousands of Louisiana hurricane victims still battling their insurers over policy interpretations, Tuesday is the biggest of judgment days, with millions of dollars and, possibly, the future of the state’s insurance landscape at stake. The state’s high court will hear its first Hurricane Katrina insurance payment case Tuesday, and later in the day, will hear its first Hurricane Rita insurance case. And if the Supreme Court rules in favor of policyholders in either case, it would trump federal court rulings in similar cases that have gone in favor of insurance companies. February 25, 2008
2 La. Insurance Lawsuits May Rock Legal WorldFor thousands of Louisiana hurricane victims still battling their insurers over policy interpretations, Tuesday is the biggest of judgment days, with millions of dollars and, possibly, the future of the state’s insurance landscape at stake. The state’s high court will hear its first Hurricane Katrina insurance payment case Tuesday, and later in the day, will hear its first Hurricane Rita insurance case. And if the Supreme Court rules in favor of policyholders in either case, it would trump federal court rulings in similar cases that have gone in favor of insurance companies. February 26, 2008
British Mortgage Lender Northern Rock is NationalizedBritain’s troubled mortgage lender Northern Rock was officially transferred to state ownership on Friday, paving the way for a new management team to begin a strategic review of the business and for a government-appointed committee to consider compensation for shareholders. The Treasury confirmed it had acquired all the shares in Northern Rock after Parliament approved emergency legislation that will give the government power to take over ailing institutions. Ron Sandler, the former Lloyds of London boss appointed by the government to run the bank, will now appoint his board and conduct a strategic review. February 25, 2008
Jazzed Up About Reviving D.C. LandmarkA vibrant jazz and swing culture bloomed in D.C. in the last century and then faded after the racial upheaval of the 1960s. Last week, an eclectic group of Washingtonians gathered to revive an architectural landmark at the epicenter of that history. Alfred C. Liggins III, chief executive of Radio One, opened his D.C. home Thursday night to kick off a fundraising campaign for the restoration of historic Howard Theater. Among the guests were the well-heeled and well-connected of Washington’s business community, mostly African Americans, who needed little education on the significance of the venue. February 25, 2008
A Tale of Race and Family and a $10,000 QuestionMs. Hansberry’s play, the subject of many revivals over the years, never belonged to the literary category James Baldwin once derided as “protest fiction.” It is a race play that exists as a quiet treatise on the economies of loss, asking us to think less about the broad offenses of prejudice and more about the value of familial identity and obligation. The best plays of the 1950s turned the concept of family into a tragic affair. Individuality and rebellion were expressions of courage. “A Raisin in the Sun” instead made a novel case for a certain kind of conformity that transcends its racial theme. Our bloodlines make us stronger, it says; they don’t tear us apart. February 25, 2008
For Katrina Evacuees, A Chance to Be HeardIn a cramped guard booth on the edge of a community of luxury townhouses, the sense of helplessness that has become so familiar to Gregory Sam since Hurricane Katrina uprooted him from his home town of New Orleans can become all-consuming. For the nearly quarter-million people such as Sam who were evacuated to Texas after the hurricane and its floodwaters left New Orleans devastated in 2005, powerlessness has been a constant theme, exacerbated by their reliance on goodwill and the government for help in starting over again. Angry at the Bush administration for failing them both before and after Katrina, many view the March 4 Democratic presidential primary as a chance to exert some control over their futures. February 25, 2008
FEMA Trailers to Be Tested by RequestOccupants of FEMA trailers placed in disaster areas may now get their units tested for formaldehyde contamination if they file a request. The Federal Emergency Management Agency says that for the first time it will open up the testing program to hurricane evacuees living in thousands of federally supplied trailers and mobile homes along the Gulf Coast, and to anyone using similar FEMA-supplied trailers in other states that have been affected by floods, tornadoes and other disasters. February 25, 2008
Bargain hunters may toss a lifeline to U.S housingThe distressed U.S. housing market should get a lift this spring as bargain prices lure prospective buyers out of hibernation, but tighter lending means no one should expect the boom days to return any time soon. Spring is a pivotal season in the housing market. Potential buyers typically emerge from a winter hiatus and shop in earnest for a new home or an investment. The strength of the market in March, April and May usually sets the tone for the entire year. February 25, 2008
Regional Market For Office Space Slumped in 2007The Washington region’s market for commercial real estate slowed notably in 2007, as the federal government cut back on leasing activity and an uncertain economy diminished the private sector’s appetite for office space, brokers and analysts said. About 23.4 million square feet of office space was leased in the Washington region during 2007, down 28.4 percent from 2006. “Tenants are trying to figure out what is going on with the economy,” said Robert Hartley, director of research for the firm CB Richard Ellis. “They are getting trigger shy.” February 25, 2008
Parque de las Flores Condominium Association allegedly refused to offer accessible parkingThe U.S. Department of Housing and Urban Development announced today that it has charged Parque de las Flores Condominium Association with violating the Fair Housing Act. HUD claims the association refused to provide an accessible parking space to Windy Calderon and her five-year old son who requires a wheelchair. The Fair Housing Act makes it illegal to deny such a request when it is necessary to accommodate a tenant’s disability. February 25, 2008
Officials Rethink Home Tax LawLast year, convinced that landlords and owners of second homes were claiming tax breaks they didn’t deserve, legislators unanimously passed a law requiring all Maryland homeowners to apply for a valuable tax credit that they’ve gotten more or less automatically until now. Since December, though, state lawmakers have been peppered with questions and complaints from homeowners about the new application requirement. Now, they’re considering calling the whole thing off. February 25, 2008
Energy Justice Concerns MinoritiesBlack energy industry professionals concerned about the vulnerability of low-income minorities to supply and price volatility want to have a greater say in the distribution of fuel, electricity and other energy sources. “Energy is probably one of the most important topics at this time,” said Wilton Cedeno, chairman of the board of directors for the American Association of Blacks in Energy. “It is not true to say these issues are not relevant to African Americans and they are not involved.” The organization and N.C. A&T co-sponsored a conference in Greensboro on Thursday to discuss initiatives and a possible partnership that would offer mentoring and provide scholarships and internships to engineering students. February 25, 2008
Candidates’ Plans to Deal with Foreclosure Crisis On Minds of Ohio VotersWashington- After nearly losing her four-bedroom Slavic Village home to foreclosure several years ago, Barbara Anderson is reading all the fine print before she signs on with a presidential candidate. “I am looking for people who are talking about putting a freeze on foreclosures,” said Anderson, who works as a consumer-protection specialist for the city of Cleveland. “I am looking for people who are going to regulate mortgage servicers. I am looking for people that will keep people in their homes. I am not looking to be kind to Wall Street. I love Main Street.” February 25, 2008
Mortgage Crisis Calls for DefenseAn economic stimulus is designed to do two things: Pump money into a flagging economy and help hard-working people to weather tough economic times. The economic stimulus bill the president signed marks a major bipartisan investment in achieving both of those goals. But, unfortunately, it fails to address what is perhaps the greatest economic concern of families in Massachusetts and across the country - the fear of losing one’s home. That’s why this week, when Congress returns to Washington and as some tough economic realities continue to hit home, we need to continue the fight to help hard-working families keep the roofs over their heads. February 25, 2008
Banks Change Their TuneThe next President of the United States will have to sort out the fiscal and financial fiasco. The proposal for a mortgage buyout fund amounts to a HOLC II, along the lines of FDR’s Home Owners’ Loan Corporation (HOLC, 1933-1951). It has been supported by Connecticut Senator Christopher Dodd and Professor Alan Blinder. An ingredient in the solution might be a domestic version of the Brady bonds. But there are two caveats: February 25, 2008
Existing Home Sales Down, but Midwest Shows HopeSales of existing homes slipped in January to their slowest pace in nearly a decade, and prices fell for the fifth consecutive month, the National Association of Realtors said Monday. Yet there were glimmers of hope in the figures. Resales of single-family homes actually rose 0.5% from December — the first monthly increase in nearly a year, led by a surprising upturn in the Midwest. The median price of a single-family house, meantime, slid 5% from January last year to $198,700, the lowest price since February 2005. That was a sign that more sellers are yielding in the face of a 10-plus-month supply of homes on the market and agreeing to cut prices. February 26, 2008
NY Attorney General Near Fannie, Freddie DealMortgage firms Fannie Mae (FNM.N) and Freddie Mac (FRE.N) would require their mortgage lending partners to have independent appraisals of home values under a deal being thrashed out with New York’s attorney general, sources familiar with a draft deal said on late Monday. Andrew Cuomo, New York’s top lawyer, began a wide-ranging investigation last spring into how Wall Street bundled and sold billions of dollars of home loans to investors and a deal with Fannie Mae and Freddie Mac would close an important line of his inquiry. February 26, 2008
Foreclosure Aid Rising Locally, as Is DissentAs the Bush administration and Congress consider proposals to ease the home foreclosure crisis, local governments across the country have been lending money to imperiled homeowners and confronting some opposition. Some of these municipal and state efforts have met resistance from people who consider the assistance undeserved and adamantly oppose anything that resembles a taxpayer bailout. Seattle, which has nowhere near the kind of foreclosure problem other cities have, began a modest program last month offering loans of up to $5,000 to help a few dozen homeowners avoid losing their homes. February 26, 2008
Home Resales and Prices DeclineThe backlog of unsold homes continued to pile up in January, a sign that home prices will continue to drop as would-be buyers hold out for better deals. Sales of previously owned homes fell for the sixth consecutive month, dropping 0.4 percent, to an annual rate of 4.89 million, the National Association of Realtors said on Monday. While the decline was less than forecast, the sales pace is the slowest since the survey began nearly a decade ago. The median home price dipped to $201,100, down 4.6 percent from a year ago. February 26, 2008
Counting the Homeless to Help End Their PlightLooming over a shuttered nightclub by Interstate 91 is a billboard featuring fistfuls of cash and a brassy promise that Connecticut Lottery players could win $100,000 a year in perpetuity and be “Set for Life.” Steps away, in the brush behind a fence, lives a man named Joe whose life is far from set. A former roofer who suffers from anxiety, Joe said he has lived for the past two years in his makeshift hideaway under the stars, surviving mainly by scrounging metal that he turns into jewelry or sells to recyclers for about $50 a week. He said he does not take drugs, but the volunteers who encountered him one recent night as they trekked through the city’s vacant lots and alleyways for the state’s annual count of the homeless said he sometimes steals bicycles to support a crack cocaine habit. February 26, 2008
Used-Home Backlog Continues to Growhe backlog of unsold homes continued to pile up in January, a sign that home prices will continue to drop as would-be buyers hold out for better deals. Sales of previously owned homes fell for the sixth consecutive month, dropping 0.4 percent, to an annual rate of 4.89 million, the National Association of Realtors said yesterday. While the decline was less than forecast, the sales pace is the slowest since the survey began nearly a decade ago. The median home price dipped to $201,100, down 4.6 percent from a year ago. At that sales rate, it would take 10.3 months to sell off the current inventory of unsold homes. February 26, 2008
Our Position: A National System is Needed to Rein in Errant Mortgage BrokersIt will take a wide array of public and private initiatives, together with time and the corrective forces of the market, for the U.S. economy to recover from the extensive damage triggered by the subprime-mortgage collapse. But even as lawmakers and regulators consider the best ways of digging out from this disaster, they also need to focus on preventing another one like it in the future. U.S. Sen. Mel Martinez of Florida, a former federal housing secretary, has sensibly responded to this need by proposing a uniform nationwide system to license and monitor mortgage brokers and lenders. The system would help stop unqualified or unscrupulous brokers and lenders from trapping borrowers in mortgages they can’t afford. February 26, 2008
U.S. Home Foreclosures Jump 90% as Mortgages Reset (Update1)Bank seizures of U.S. homes almost doubled in January as property owners failed to make higher payments on adjustable-rate mortgages. Repossessions rose 90 percent to 45,327 last month from the same period a year ago, RealtyTrac Inc. said today in a statement. Total foreclosure filings, which include default and auction notices as well as bank seizures, increased 57 percent. “The most troubling thing is that we are seeing more and more of these properties actually going all the way through the process and going back to the banks,” Rick Sharga, executive vice president of Irvine, California-based RealtyTrac, said in an interview. February 26, 2008
Octavia Blvd. Housing DebateAffordable housing advocates turned out for a San Francisco Board of Supervisors committee meeting Monday and urged local lawmakers to require that more of the homes to be built near the new Octavia Boulevard be priced within the reach of moderate and lower income residents. But others, including representatives from Mayor Gavin Newsom’s office, are concerned that demands for higher fees on developers to pay for affordable housing will drive them away. February 26, 2008
Low-Income Housing Provokes ControversyA $60 million plan to renovate the massive Fay Apartments complex - home to more than 2,000 people - is generating a lot of buzz, with residents welcoming the improvements but some neighbors pushing for demolition instead. The proposal would reduce the 893 units to 703 bigger ones, add air conditioning and make other improvements for which owners hope to attain green building certification. The complex, now owned by Stern-Hendy Properties Inc., would be sold to a joint venture of the nonprofit National Housing Trust and funder Enterprise Community Partners, which have worked together on projects to preserve affordable housing that’s deteriorating or at risk of being converted to market-rate. February 26, 2008
Foreclosure Rate Up 57% in JanuaryThe number of homes facing foreclosure jumped 57 percent in January compared with a year ago, with lenders increasingly forced to take possession of homes they couldn’t unload at auctions, a mortgage-research firm said Monday. Nationwide, about 233,001 homes received at least one notice from lenders last month related to overdue payments, compared with 148,425 a year earlier, according to Irvine, Calif.-based RealtyTrac Inc. Nearly half of the total involved first-time default notices. The worsening situation came despite ongoing efforts by lenders to help borrowers manage their payments by modifying loan terms, working out long-term repayment plans and other actions. February 26, 2008
HUD SECRETARY: FHASECURE HELPS 100,000 AMERICANS STAY IN THEIR HOMESU.S. Housing and Urban Development Secretary Alphonso Jackson today announced that HUD’s FHASecure product has helped 100,000 homeowners refinance their mortgages and avoid foreclosure. Since September 2007, FHASecure has enabled tens of thousands of families - who are current on their home loans or past due because their teaser rates reset - to close on loans refinanced through HUD’s Federal Housing Administration (FHA), which is backed by the full faith and credit of the government. February 27, 2008
HUD SECRETARY APPLAUDS NEIGHBORWORKS AMERICAFOR AWARDING $130 MILLION FOR FORECLOSURE PREVENTION COUNSELINGU.S. Housing and Urban Development Secretary Alphonso Jackson today issued the following statement applauded NeighborWorks America for expeditiously awarding $130 million to HUD-approved national counseling intermediaries and state housing finance agencies that will provide thousands of families with foreclosure prevention counseling. February 27, 2008
New Worries on Inflation and HomesHouses are getting cheaper by the month. Everything else is becoming more expensive. Several economic reports released on Tuesday provided fresh evidence that the economic pain of a prolonged slump in housing is being compounded by the rising cost of oil, food, clothes and other goods. Not surprisingly, a measure of consumer confidence fell to its lowest level in nearly five years. n addition to squeezing American homeowners, the confluence of falling home prices and accelerating inflation is putting policy makers in an increasingly tough position. February 27, 2008
Kaine Seeks Help for Borrowers Facing ForeclosureGov. Timothy M. Kaine (D) is planning to announce Wednesday a proposal aimed at regulating high-risk mortgage lenders and stemming the surge of foreclosures that could cause tens of thousands of Virginians to lose their homes over the next two years. The plan, which was introduced in the General Assembly on Monday at Kaine’s request, would require certain lenders to warn borrowers when they are at risk of foreclosure and give them a grace period and some resources to get back on track with their payments. February 27, 2008
O’Malley Meets with Loan ServicersGov. Martin O’Malley and mortgage industry representatives met yesterday to create a process for loan “triage” in Maryland by which homeowners at risk of foreclosure could be connected with lenders willing to refinance. The mortgage summit came a week after O’Malley railed against loan servicers for shoddy customer service as a rising number of homeowners are defaulting on loans. February 27, 2008
28% Higher Property Tax Rate Eyed in Pr. WilliamPrince William County Executive Craig S. Gerhart proposed yesterday a budget for the coming fiscal year that calls for a 28 percent increase in the property tax rate to cover a shortfall and to pay for public safety programs, including a crackdown on illegal immigration. Like its Northern Virginia neighbors, Prince William faces a major drop in revenue because of the nose dive in the housing market. The county’s problems are magnified by the large number of foreclosures, which has contributed to a 16 percent decrease in residential property values. February 27, 2008
Housing firm agrees not to evict, discriminate against targets of domestic violence, sexual abuse and stalkingTwo years ago, Tanica Lewis’ former boyfriend kicked in the door of her home and smashed windows because he was upset about their breakup. Lewis, who had a personal protection order against her attacker, and her two daughters were evicted in March 2006. The management at The North End Village housing complex in Detroit cited Lewis’ need to better supervise her guests. Lewis and the American Civil Liberties Union sued the private housing company in federal court in Detroit last year. Tuesday, the court approved an agreement between them, the complex and its management company, Management Systems Inc. February 27, 2008
Lender Ordered to Halt ForeclosuresMassachusetts court, in an unprecedented decision yesterday, ordered the California subprime lender Fremont Investment & Loan to halt all foreclosures to give state officials time to review each mortgage.more stories like thisThe order, issued yesterday by the Suffolk Superior Court, is the latest action in an October lawsuit filed by Massachusetts Attorney General Martha Coakley that alleged Fremont engaged in predatory and unfair lending when it made home loans to individuals who often could not afford them. February 27, 2008
STATEMENT BY THE U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ON THE REDEVELOPMENT OF PUBLIC HOUSING IN NEW ORLEANSThe United Nations Special Rapporteur on Housing and Independent Expert on Minorities are misinformed about the state of public housing in New Orleans.The charges that the federal government has not consulted with the local community during the development process is untrue. The U.S.government’s aim is to improve the living standards of minority and low income Americans in New Orleans. We do not want to relegate thousands of minority and low-income families back into the sub-standard conditions of New Orleans’ public housing - conditions only made worse by Hurricane Katrina. February 29, 2008
More Americans Using Credit Cards to Stay AfloatSeven years in the credit-counseling business didn’t prepare Ann Estes for the alarming trend she began noticing last fall: As her clients’ mortgage bills became unaffordable, a growing number of them began paying their credit card bills before — and sometimes instead of — their mortgages. “We’ve never seen anything like this,” says Estes, who counsels clients by phone from her office in Richmond, Va. “Their homes are at risk, and they know it. But people say, ‘I don’t want to let my credit cards go because that’s my cash flow.’ “ February 29, 2008
Freddie Mac Posts $2.5 Billion Loss in Q4Freddie Mac (FRE), the second-biggest provider of U.S. residential mortgage money, on Thursday said its loss widened more than expected to $2.5 billion in the fourth quarter as the housing crisis worsened. The company said its net loss increased from $401 million in the year-earlier period. It is coming off a $2 billion loss for the third quarter. The company lost $3.97 a share in the fourth quarter. Analysts expected the company would post a fourth-quarter loss of $3.05 per share including special items, according to Reuters Estimates. February 29, 2008
Facing Default, Some Walk Out on New HomesWhen Raymond Zulueta went into default on his mortgage last year, he did what a lot of people do. He worried. In a declining housing market, he owed more than the house was worth, and his mortgage payments, even on an interest-only loan, had shot up to $2,600, more than he could afford. “I was terrified,” said Mr. Zulueta, who services automated teller machines for an armored car company in the San Francisco area. Then in January he learned about a new company in San Diego called You Walk Away that does just what its name says. For $995, it helps people walk away from their homes, ceding them to the banks in foreclosure. February 29, 2008
Land Value ‘Correction’ Surprises HomeownersIt was no surprise to Cathlin Bowman that the 2008 real estate assessment she received from Fairfax County this week showed a modest dip in the value of her three-bedroom McLean home, to $564,930 from $567,590 in 2007. A barren housing market and a deteriorating economy have pushed residential property values down about 3 percent countywide. What stunned her was the gaping disparity between the value of the 1951 brick-and-shingle house on Barbee Street and the land under it. The 11,500-square-foot lot, assessed at $301,000 last year, is now worth $501,000 — an increase of 66 percent. February 29, 2008
House Panel Rejects Proposal to Revise Home Builder FeesThe Virginia General Assembly rejected a proposal Thursday to overhaul the way home builders contribute money to local governments for roads, schools and other services. A House of Delegates committee rejected legislation opposed by Northern Virginia governments that would have thrown out the 30-year-old system of cash proffers, in which local officials coax millions of dollars from housing developers in exchange for approving their projects. February 29, 2008
Foreclosures sour Napa ValleyFor many residents of this, one of the most storied valleys in the world, life is still a bowl of grapes. But beyond the picturesque vineyards and stonewalled estates, times are shaky, the future unclear. Tourists sipping their way up the 30-mile valley from the city of Napa to Calistoga may never see this other Napa Valley. But this celebrated wine country is proof that there are few places in the nation left untouched by the housing crisis. Beautiful Napa is experiencing foreclosures, plunging housing prices, unheard-of drops in home sales and the nervous sense of foreboding that has spread across the country like a flu. February 29, 2008
Luxury Homebuilder Posts Its Biggest Loss in 22 YearsToll Brothers Inc., the largest U.S. luxury homebuilder, reported yesterday its biggest quarterly loss in 22 years as the worst housing recession in more than two decades forced the company to write down the value of developments. Chief executive Robert I. Toll said in a conference call with analysts that the selling season that started in mid-January has been “weak for the third year in a row,” but there were a few “glimmers of hope” in areas such as Naples, Fla., and suburban Washington, D.C. February 29, 2008
Lawmakers Ponder Halting Foreclosures Over Water BillsState lawmakers are considering a moratorium on foreclosures stemming from unpaid water bills, a move that faces stiff opposition from Baltimore City officials who say that many property owners would not pay without the threat of losing their homes. Sen. James Brochin called Baltimore’s tax-sale system under which homeowners face foreclosure over unpaid water and sewer bills “absolutely obscene.” He said the city should rely on other means of leaning on residents who don’t pay their bills, such as shutting off service or assessing late charges and liens that must be paid when a property is sold or refinanced. February 29, 2008
U.N. Finding of Discrimination in Katrina Recovery Mostly IgnoredNew Orleans advocates who’ve clamored for recognition of alleged human rights violations in the Hurricane Katrina recovery claimed victory Thursday, after United Nations’ experts said thousands of black families would continue to suffer displacement and homelessness if the demolition of 4,500 public housing units is not halted. “I think this is vindication of what public housing advocates have been saying from day one,” said Monique Harden, co-director of the public interest law firm Advocates for Environmental Human Rights, who testified before Geneva-based U.N. experts. February 29, 2008
New Program to Assist Those Facing ForeclosureIowa is ramping up its battle against mortgage foreclosures with a plan to provide money management advice for people with financial problems and to add Spanish language services. Under plans announced Thursday by the Iowa attorney general and the Iowa Finance Authority, $500,000 in federal funds will be allocated to a West Des Moines mediation company that has fielded 8,000 calls so far from homeowners concerned about their loans. Iowa Mediation Service is expected to use the money to add staff, including Spanish speakers, in the face of what Attorney General Tom Miller called a “foreclosure avalanche.” February 29, 2008
Foreclosure Prevention Programs Don’t Help EveryoneWhen 51-year-old Connie Norman bought her house in North Minneapolis five years ago, she had a plan. Buy it, fix it up, sell it and walk away with a little nest egg. But her five-year plan has gone terribly awry. “I’m feeling almost like I’m trapped in the house. I feel like I’m squatting on my own property,” she said. Instead of developing a nest egg, Norman is five months behind on her mortgage and facing foreclosure. She recently received notice that her house would be put up on the auction block in April. And the way Norman sees it, there are few options to help her save her home even though several new assistance programs have recently been unveiled. February 29, 2008
Waging the Fight for HomeownersThe attorneys in the modest office on Fayette Street are continually busy, never mind that clients find them only by word-of-mouth. They’ve got a service that few offer but many want: legal help for homeowners in foreclosure. Baltimore-based Civil Justice, a nonprofit with three attorneys and a handful of law clerks, is one of the rare places - charity or private practice - where Maryland residents can turn if they’re facing the loss of their homes and think that all the rules weren’t followed. In a world where you can find a lawyer for anything, and teeming masses of them for personal injury suits, foreclosure law is largely a specialty for firms hired by lenders. February 29, 2008
Judge OKs Accord in Housing Bias SuitA federal judge on Thursday approved a settlement ending a fair-housing group’s lawsuit against St. Bernard Parish over a 2006 ordinance restricting rental homes. The parish agreed to pay $32,500 in damages but admitted no wrongdoing in the settlement approved by U.S. District Judge Ginger Berrigan. The lawsuit by the Greater New Orleans Fair Housing Action Center targeted a September 2006 ordinance prohibiting homes to be rented to anyone who was not a blood relative of the owner without Parish Council approval. February 29, 2008
Foreclosures Cut Wide Swath Across Dallas, Fort WorthOn weekends, Coppell real estate agent Tess Langevin loads up a bus full of potential homebuyers and heads out to look at foreclosed properties. Ms. Langevin has plenty of homes to show. There were more than 19,000 residential foreclosures in the Dallas-Fort Worth area last year. And thousands more houses are falling into default every month. A study by The Dallas Morning News finds that the home foreclosure crisis cuts across all neighborhoods and economic classes in North Texas. February 29, 2008
Bush Sees No Bailout for Lenders and SpeculatorsAs banks lobby for what has been described as an “epic rescue plan” for the mortgage industry, President Bush today hardened his oppostion to bailout plans he said would help “lenders and speculators.” Bush said such plans would be unfair to millions of homeowners who pay their mortgages on time February 29, 2008
The Face of ForeclosureThe foreclosure crisis. Just the words alone evoke images of predatory lenders or poor families with high medical bills at risk of losing their homes. The reality is very different according to some experts. There is no one face of foreclosure, they said. “My client base is pretty spread out in terms of races, ages and incomes,” said Liz Caton, housing counselor at the Northwest Side Housing Center in Chicago. Police officers, factory workers, architects, day care workers and city employees: all count themselves among Caton’s clients. Caton is even counseling real estate agents who may lose their homes in the housing market shift. February 28, 2008

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