March

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Falling Home Sales Problem Spreads to 45 StatesUnderscoring the breadth of the real estate recession, sales of existing homes fell in 45 states and Washington, D.C., in the last quarter of 2007, and prices dropped in more than half the metro areas it tracks, the National Association of Realtors said Thursday. The slide in sales is projected to persist through the first half of this year, and prices will likely fall throughout 2008, according to a majority of economists surveyed last month by USA TODAY. The figures reflect job losses in the Rust Belt states, sinking affordability in the Sunshine states and stricter lending rules nationwide. March 8, 2008
Bill Would Set Foreclosure MoratoriumThe Bush administration recently announced a plan to delay foreclosures for some troubled homeowners for 30 days. Senator Hillary Rodham Clinton, in the race for the Democratic presidential nomination, has called for a 90-day moratorium on foreclosures. But two state legislators have been quietly pushing for an even longer reprieve for homeowners in New York State: a one-year moratorium. March 3, 2008
Ornery Activists Target Big Lender in Foreclosure FightFolks on Humphrey Hill Drive were still waking up on the icy Saturday morning the shark hunters came to town. They rounded the suburban traffic circle in a pair of rented school buses after a half-hour ride from far more modest neighborhoods, rumbling to a stop at the Garmone family’s driveway. Forty-two caffeinated Clevelanders piled out, their leaders carrying bullhorns. March 3, 2008
Mortgage Insurance Reserves: A Lesson in Managing RiskAn enormous amount of ink has been spilled on the mortgage market crisis, and I have contributed my share. Yet I am now convinced that the most important factor underlying the crisis has been overlooked, even though it has been in plain view all along. It is the way in which the mortgage industry manages default risk. March 3, 2008
Fannie Mae and Freddie Mac Seek to Preserve CapitalAt a time when the housing market needs them as much as ever, Fannie Mae and Freddie Mac are hunkering down to weather the crisis. The two government-sponsored financial institutions have a federal mission to keep mortgage markets stable. But they have other things to think about, too — shareholders, quarterly profits and regulatory constraints meant to keep them out of financial trouble. March 3, 2008
Tapping Into Homes Can Be Pitfall for the ElderlyErika Baker was 67 years old, divorced and worried about her job when a saleswoman showed up at her door in late 2006. A reverse mortgage, the saleswoman explained, would give Ms. Baker instant access to hundreds of thousands of dollars tied up in the value of her home. Such a loan, typically available only to homeowners in their 60s and older, would not have to be repaid until Ms. Baker moved out, the saleswoman said. March 3, 2008
TBA Lending.com Launches Cincinnati-Wide Television Advertising in March Highlights their Credible Mortgage Services Sourcing toLeading mortgage resource website set to launch television ad campaign focused on educating consumers of the options available to them through www.tbalending.com. As commercials air throughout Cincinnati the company continues to provide their services throughout the nation and is considered a top resource for any consumer searching for their next home or business loan. March 3, 2008
Reforming The Mortgage IndustryA year ago, the bills would have been yawners. But mortgage reform is hot in the General Assembly, as it is across the nation, as delinquent subprime home loans and foreclosures continue to mount. The question is not whether to reform the mortgage lending industry in Connecticut, but how — and how far the state should go in adding new regulations. March 3, 2008
Report: Minorities Hit by ForeclosuresSubprime lenders that went out of business with the industry’s collapse targeted minority neighborhoods, leaving them to struggle disproportionately with foreclosures and crumbling home values, according to a new report. These companies’ high-risk loans made up 20% of all loans in predominantly minority communities, compared with 4% of total loans in mostly white areas, according to the report released Thursday by an alliance of policy, research and advocacy organizations. March 6, 2008
Bernanke Wants Banks To Rework MortgagesFederal Reserve Chairman Ben S. Bernanke yesterday called on mortgage lenders to be more willing to renegotiate with borrowers who are at risk of losing their homes and said that the crush of mortgage foreclosures is likely to continue “for a while longer.” Bernanke’s comments positioned him between the Bush administration and congressional Democrats on how far the government should go to try to ease the mortgage crisis. March 6, 2008
Cuomo, Mortgage Giants SettleNew York Attorney General Andrew M. Cuomo said yesterday that prospective homebuyers will be protected from fraudulently inflated home prices under a new agreement with government-sponsored lenders Fannie Mae and Freddie Mac. Cuomo said lenders have pressured appraisers to bump up the listed value of homes, contributing to a national mortgage crisis that is forcing families into foreclosure. March 6, 2008
Mortgages Will Average 5.5%, Freddie Mac SaysFreddie Mac, the world’s second-largest buyer of home loans, said the average U.S. fixed mortgage rate in 2008 probably will tumble more than three-quarters of a percentage point to the lowest in at least 45 years. The average rate for a 30-year fixed mortgage will fall to 5.5 percent from 6.3 percent last year, the company, based in McLean, Va., said in a forecast yesterday. That would be the lowest annual average in records that date to 1963. March 6, 2008
Realtors’ Spring Marketing Reflects Market RealitiesAs housing prices continue to fall, real estate agencies are responding with a marketing onslaught to try to entice reluctant shoppers to get off the fence and buy. As the spring buying and selling season opens with a backlog of unsold homes, national franchisers RE/Max, Coldwell Banker and Century 21 and the industry’s trade association have mounted TV ads, local messages and Web marketing.“The theme now is that’s it’s a great time to buy,” says David Rea, chief creative officer for RE/Max, who directs its advertising. March 6, 2008
Inside the Mind Of a Debtor NationAs the director of a financial ministry at my church, I get an up-close and personal look at the spending habits of a lot of people. And year after year, I am stunned by the decisions people make that get them into financial trouble. I’ve seen monthly car notes the size of mortgage payments. People take vacations or buy big-screen televisions and expensive jewelry while ignoring huge federal tax obligations. March 6, 2008
In One Year, Foreclosure Rate TripledBenigna Alarcon hoped that reducing her mortgage payment by $700 per month would be enough to save her Chelsea home from foreclosure. But she still can’t afford the $1,971 payment. Now two months behind on payments, Alarcon said she must either sell her home or risk foreclosure. “I don’t want to lose my house,” said Alarcon, 50, an immigrant from El Salvador who is the co-owner of a local restaurant. “I spent everything I had [saved] to buy it.” March 6, 2008
Attorneys Volunteer to Help Low-Income Families with Mortgage Foreclosure DefenseMore than 100 attorneys participated in a recent training designed to help them volunteer legal help to low-income families who are dealing with mortgage foreclosures across North Carolina. The training event was sponsored by the NC Academy of Trial Lawyers, which requested that its members reach out to help individual homeowners who are being threatened with foreclosure or are presently in the foreclosure process and cannot afford legal representation. March 6, 2008
Sex Orientation Bill Goes to Full HouseA split House Judiciary Committee gave its nod of approval Wednesday to legislation adding sexual orientation to the state’s Human Rights and Fair Housing acts, but not before making a slight change that would mean the bill must be approved again by the Senate. The legislation (SB600) was unanimously passed by the Senate last week. House Judiciary members turned down an amendment proposed by Delegate Kelli Sobonya, R-Cabell, to exempt those who morally or for religious reasons do not accept those without a heterosexual orientation. She asked colleagues to “be tolerant of people with religious convictions and vote for my amendment.” March 6, 2008
State Bill Would Suspend ForeclosuresBorrowing a page from New Deal-era lawmaking, Minnesota politicians are pursuing their most direct effort yet to stem the state’s growing tide of foreclosures: defer them for a year. The Minnesota Subprime Foreclosure Deferment Act of 2008 would halt foreclosures of subprime or exotic “negative amortization” loans for one year, though still requiring homeowners to make minimal payments during the stay. The deferment would buy struggling homeowners time to work with their lenders and wait for a possible federal solution to the crisis, lawmakers said Wednesday. March 6, 2008
SURVEY FINDS THAT MOST NEW ORLEANS PUBLIC HOUSING RESIDENTS WANT TO RETURN TO CITY, BUT NOT TO PUBLIC HOUSINGA significant majority of public housing residents displaced by Hurricane Katrina do not want to return to public housing in New Orleans, according to an independent survey commissioned by the Housing Authority of New Orleans (HANO). Conducted by the University of Texas at Arlington (UTA), the representative unbiased sampling of more than 2,100 current and former public housing residents found that while 71.6 percent want to return to New Orleans, only 35 percent preferred to return to public housing in New Orleans. When asked what form of housing they prefer, only 20.3 percent of respondents wanted to return to their former public housing units. A closer examination of families who resided in the C.J. Peete, B.W. Cooper, St. Bernard, and Lafitte developments (“the Big 4”) found that even fewer (13.7 percent) preferred to return to their former units. March 7, 2008
Survey: Little Interest in Return to New Orleans Subsidized HomesSeven out of 10 public housing residents displaced by Hurricane Katrina want to return to the city, but only a third want to go back to subsidized homes, according to a study released Thursday. Researchers at the University of Texas in Arlington interviewed 2,109 displaced public housing residents for the report. The study was commissioned and paid for by the Housing Authority of New Orleans (HANO), which has been under the control of the U.S. Department of Housing and Urban Development (HUD) for several years. March 7, 2008
Home Equity Below 50% LevelHome equity for the average American has dropped below 50% for the first time since World War II, reflecting a widespread decline in home values and relatively loose mortgage practices during much of this decade. The average homeowners’ equity — the mortgage balance as a proportion of the home’s market value — fell to 47.9% at the end of 2007, the Federal Reserve reported Thursday. The Fed also issued revisions to earlier reports indicating that, for the first time in record keeping dating back to 1945, home equity was below 50% for the last nine months of 2007. March 7, 2008
Mortgage Delinquencies and Foreclosures by StateMortgage delinquencies and foreclosures by state, fourth quarter 2007. March 7, 2008
Bill Would Protect Houses From Tax SalesFewer homes would be subject to tax sales under a compromise reached by legislators and property investors, officials said yesterday. Responding to cases in which local governments — primarily Baltimore — have foreclosed on homes over small debts, including unpaid water and sewer bills, legislators have coalesced around a bill that would increase the threshold for debts that can trigger a tax sale, cap attorneys fees and provide a safety net for the needy. March 7, 2008
As Foreclosures Rise, Investors Pull BackDefaults on home mortgages touched another historic high late last year as foreclosures on adjustable-rate mortgages surged, an industry group reported on Thursday. The figures are expected to increase pressure on policy makers and the mortgage industry to move faster to contain losses and help homeowners. In recent days, regulators and lawmakers have begun suggesting that the federal government might need to take a bigger role in the mortgage business. March 7, 2008
In California, a Generational Tale of Real Estate Boom and BankruptcyThe story of the Dunmores is the story of the nation’s housing crisis writ small, familial and mean: three generations of home builders who got rich from the go-go years of the California real estate boom, only to fall victim to the housing bust. And it is a tale of greed, hubris and denial of economic reality. Dysfunctional families, of course, can be found in every business, but the bursting of the housing bubble in the Central Valley, where there was once so much money to be made, accentuated any problems this family might have had. March 7, 2008
HUD AND JUSTICE DEPARTMENT RELEASE NEW GUIDANCE ON “REASONABLE MODIFICATIONS” UNDER THE FAIR HOUSING ACTNew guidance released this week by the Departments of Housing and Urban Development (HUD) and Justice (DOJ) reinforced the right of persons with disabilities to make “reasonable modifications” to their dwellings if a structural change to their dwelling or to a common area of the building or complex in which they live is needed so that they can fully enjoy the premises. The guidance is designed to help housing providers and homeowners’ associations better understand their obligations and help persons with disabilities better understand their rights regarding the “reasonable modifications” provision of the federal Fair Housing Act (FHA). March 7, 2008
Mortgage Dangers Skyrocket in StateThe number of Maryland borrowers in danger of losing their homes is increasing at a dizzying pace.Lenders were trying to foreclose on more than 13,000 homeowners at the end of last year, up about 150 percent from a year earlier, the Mortgage Bankers Association said yesterday. That’s the biggest 12-month increase since the trade group began tracking the state numbers in 1979. March 7, 2008
The Profit in Decay: Landlords Who Empty Buildings of Tenants Reap Extra Benefit Under LawLandlords determined to cash in on a lucrative real estate market pushed thousands of tenants out of apartments across the District in recent years and then reaped more than $328 million by converting the buildings into condominiums. Dozens of landlords refused to make repairs, forcing families to live in filth — at times without heat, hot water or electricity. Other landlords delivered urgent letters or mass notices demanding that tenants leave. March 11, 2008
Mortgage Lenders See More Borrowers Give UpOn the front lines in the mortgage foreclosure crisis, lender and loan servicer Dennis Lauria says his deepest losses are from borrowers who owe more than their homes are worth and simply mail in the keys, rather than try to work out a new payment plan. “I can’t get you to pay if you’ve got no skin in the game,” says Lauria, senior vice president of Popular Mortgage Servicing in Cherry Hill, N.J., who says 14% of his customers with subprime loans — high-interest loans given to people with poor credit ratings — are in default. March 10, 2008
Black Farmers Work to Keep Land with Co-opsPeople say the soil in this rural community at the fringe of Columbia, S.C., is so rich you could plant pebbles and grow rocks. Lower Richland County, named for its “rich land,” according local lore, once sustained African-American farmers on small spreads that had been in their families for decades.Many of the nation’s small farms are no longer profitable. Unused farmland here makes up one of the largest undeveloped tracts near a big city in the eastern USA, according to the New York-based Center for Social Inclusion. That’s despite a high level of property ownership — 72% of people in predominantly black lower Richland own their land, according to a five-year (2002-2007) Center for Social Inclusion study. March 10, 2008
In One Heated Dispute, Someone Set a FireThe blaze came amid one of the fiercest battles in the District between tenants who wanted to stay in the building and owners who wanted them out so the property could be redeveloped. As in dozens of cases in a gentrifying city, every family eventually moved, despite a sweeping District law meant to protect tenants and the city’s stock of affordable housing. Responsibility for the fire has never been determined, and the owners vehemently deny involvement. They sold the vacant property last summer for $4 million; the new owners are developing condominiums. March 11, 2008
Foreclosure Auction Draws Deal SeekersEmmanuel Warren was with his wife and eight children seeking a home with lots more room. Franco Abbruzzetti was looking for a house for his son. Carlos Amaya and his pregnant wife, Shardonna, had their eye on a five-bedroom in Bowie, but they lost out to a higher bidder. It was a multi-house auction yesterday at Walter E. Washington Convention Center, fueled by the skyrocketing numbers of local foreclosures, and it fulfilled some hopes and deferred others, as more than 200 homes went on the block. March 10, 2008
Big Visions for Building Don’t Include People Inside March 10, 2008
Katrina and Rita Storm Victims Face Different PoliciesHow much money Louisiana homeowners can collect on their insurance policies depends a lot on which hurricane hit them. Federal judges in New Orleans have ruled that the amount of moneyHurricane Katrina victims can recover from their homeowners insurance policies is limited by the amount they received from the National Flood Insurance Program. But federal judges in Lake Charles have ruled that Hurricane Rita victims can potentially collect the full value of both the flood and thewind policies, meaning that they could end up with payouts totaling more than the value of their homes. March 10, 2008
Banks Springing Up to Serve the UnderservedAt first glance Raleigh, N.C., may not seem like a logical place to open a Latino-oriented bank. After all, Raleigh is not a city like Los Angeles, for instance, where more than 47 percent of the population is Hispanic. But David Flores, a former senior vice president at Chase Manhattan Bank, looked at the skyrocketing Hispanic population in North Carolina — from 1990 to 2006, it rose to 593,385 from a mere 76,726 — and saw a business opportunity. March 10, 2008
Slowed Down, but Planning BigPerhaps nowhere else in the Washington region has the real estate slowdown come to roost more than Prince William County. And yet developer Robert C. Kettler continues to have faith in the slumping eastern corridor of the county. Kettler, head of the development firm that bears his family name, won approval during the recent housing boom for a plan to transform the area into an upscale Potomac River community featuring a luxury town center, 4,000 homes and a 400-slip marina. March 10, 2008
Pressures Grow for Good Appraisals and BadEveryone has the same question about homes now: What is one really worth? Professional real estate appraisers are paid to come up with a reliable answer — one good enough to take to the bank, you might say. But they aren’t finding the task much easier than the rest of us. Appraisers are looking for signs that values are headed lower. Lenders need to know if a home worth $400,000 today might be on its way to a value of only $360,000. They want assurance that borrowers will have enough cash invested in the home to keep them from walking out on the debt. March 10, 2008
Thornburg Says It Can’t Meet $610M in Margin CallsThornburg Mortgage (TMA) said Friday it does not have enough cash to cover current margin calls and it will restate past financial results to account for a decline in the value of its mortgage securities.Thornburg, a jumbo mortgage lender and real estate investment trust, said it has $610 million outstanding in margin calls, which “significantly exceeded its available liquidity.” It has already met $1.17 billion in margin calls since the beginning of the year. March 10, 2008
Suit Leads to New Homes: Program for Dozens of Black Families Removed in Urban Renewal of 1960sAnthony Quarles was 14 when he overheard his grandparents talking about how the family was being forced from their Hamtramck home in the name of urban renewal. “No one wanted to leave. We had a great neighborhood,” said Quarles, who is African American. “It was all about race.” Now, 44 years later, Quarles is among 73 people who have taken advantage of a settlement in a federal lawsuit stemming from the removal of dozens of black residents in the 1960s. It has taken decades to fulfill the court order. But justice has come too late for some who have died or are too old to move. March 10, 2008
A Failure in Enforcement: Agency’s Ineffectiveness Has Helped Landlords Profit From NeglectThe District agency entrusted with protecting tenants has routinely overlooked decrepit and dangerous conditions at rent-controlled apartment buildings in recent years despite claims that landlords were letting buildings rot to force families out. At the same time, the Department of Consumer and Regulatory Affairs helped landlords profit once tenants had left — approving more than 200 requests to begin converting newly emptied rental buildings into condominiums worth hundreds of millions of dollars. The agency regularly failed to conduct even the most cursory investigations, which in dozens of cases would have revealed filthy conditions, questionable evictions and letters urging tenants to leave. March 11, 2008
Foreclosure Crisis Has Ripple EffectThe mortgage foreclosure crisis has caused a drop in cities’ revenues, a spike in crime, more homelessness and an increase in vacant properties, a survey of elected local officials out today shows.About two-thirds of 211 officials surveyed by the National League of Cities reported an increase in foreclosures in their cities in the past year, according to the online and e-mail questionnaire. A third of them reported a drop in revenues and an increase in abandoned and vacant properties and urban blight. March 11, 2008
HUD CHARGES CHICAGO LANDLORD WITH VIOLATING FAIR HOUSING ACTThe U.S. Department of Housing and Urban Development announced today that it has charged Cesar A. Lopez, a Chicago landlord with housing discrimination for posting an on-line ad that discriminates against men and families with children. The Fair Housing Act makes it unlawful for a housing provider to make, print or publish, in print or on-line, any statement or advertisement that states a preference based on race, color, national origin, religion, sex, familial status or disability. March 11, 2008
401(k)s Tapped to Save HomesStruggling to save their homes from foreclosure, more Americans are raiding their 401(k) retirement accounts to pay their bills — and getting slammed with taxes and penalties in the process, according to retirement plan administrators. Rather than borrow money from their 401(k) accounts, which would have to be paid back, a growing number of beleaguered families have been cashing out, plan administrators say. This is happening even as borrowing from 401(k) accounts remains fairly flat. Fewer still are borrowing from 401(k) plans to buy homes. By contrast, new figures from plan administrators show the number of 401(k) “hardship withdrawals” is up in early 2008 compared with the same period last year. March 11, 2008
Housing Prices Still TumblingAverage home prices in the Baltimore metro area dropped for a second straight month as sales continued to free-fall in February. Prices were down just over 4 percent from a year earlier, the largest decline since the housing market turned from boom to slump, Rockville-based Metropolitan Regional Information Systems reported yesterday. The average home sold for $301,816, down from $315,578 a year earlier. In January, the average price fell 2.6 percent. Sales in the metropolitan area dropped 33 percent, the second-largest decline since MRIS began tracking the local market in early 1999. The number of homes sold in the city and five surrounding counties - 1,559 - was the smallest on record for a February. March 11, 2008
Flood Insurance Using New MapsNew maps predicting the risk of flooding from 100-year hurricanes were rolled out Monday by the Army Corps of Engineers, and they show, not surprisingly, that rainwater pumps will dramatically reduce flooding during hurricanes — if they work, that is. The new maps were demanded by local elected officials upset that an August 2007 set of corps flood maps assumed that no pumping stations would work, and thus overestimated the amount of potential flooding, said Ed Link, a University of Maryland research engineer and chairman of the corps-sponsored Interagency Performance Evaluation Task Force, which helped the corps develop the maps. March 11, 2008
Massive Street Repair Program UnveiledThe public got its first peek Monday at where bits and pieces of repairs to minor streets throughout New Orleans will occur during the next 18 months or so. Any one of the 17,000 street and sidewalk repair jobs financed by the Federal Emergency Management Agency might be “that big hole in the middle of the street that you’ve been wondering when someone might get to it,” said Robert Mendoza, the city’s director of public works. March 11, 2008
If You Lend, Be Prepared to LoseThe Mortgage Bankers Association has delivered more bad news about the housing market. Mortgage delinquencies in the fourth quarter of 2007 were the highest in the history of the association’s survey. The rate of foreclosure starts and the percentage of loans in the process of foreclosure were at the highest levels ever. Despite this dismal report, financial institutions are trying to work with homeowners to keep them from losing their homes. To stave off foreclosure, many borrowers have to come up with some money. Where they get it varies. Some have drastically cut expenses. Others are selling belongings. And some are turning to friends and relatives for financial assistance. March 14, 2008
Proposals Aim to Turn Mortgage Crisis AroundTreasury Secretary Henry Paulson on Thursday unveiled the administration’s broadest proposals to date for cleaning up mortgage and securities markets, including tough licensing of mortgage brokers. On Capitol Hill, meanwhile, top Democrats unveiled sweeping legislation to aid consumers in danger of losing their homes to foreclosure. March 14, 2008
White House Offers Plan to Ward Off Credit CrisesAfter months of watching a growing credit crisis made worse by steadily eroding home prices, the Bush administration responded on Thursday with the outlines of a plan that officials emphasized is meant more to prevent future crises than to address the current one. The plan, which relies primarily on state regulators and private industry to tighten their oversight of financial markets, calls on states to issue nationwide licensing standards for mortgage brokers. March 14, 2008
Florida No. 1 in Mortgage Fraud; Foreclosures up 60%Florida led the nation in mortgage fraud in 2007, a dubious distinction it’s had two years running.

The competition to be first in fraud is getting stiffer as the housing downturn persists and agencies nationwide report more suspect mortgages, according to industry data released Thursday. Nevada ranked second in mortgage fraud, up from No. 6 a year earlier in the Mortgage Asset Research Institute’s annual report. It was followed by Michigan, California, Utah and Georgia. Virginia made its debut on the report’s top 10 list, coming in at No. 7. March 14, 2008
Debt Collectors Try to Put on a Friendlier FaceJust in time for a recession, the debt collection industry is working to shed its reputation for remorselessly hounding people. Oh, the collectors still want the money. But now they would like to be seen as helpful and sympathetic, even a force for good. They have started calling the indebted “our customers.” They are pushing consumer tips on the ideal way to respond when a collector comes calling (basically: pay up). They note that debt collecting is an old American tradition. (Abraham Lincoln was a debt collector, some histories say.) They point out how, in a time of rising unemployment, they are hiring. March 14, 2008
Senate OKs Credit Repealhe Senate gave preliminary approval to a bill that would repeal a controversial new law requiring Maryland homeowners to apply for a property tax credit they have been getting automatically until now. But the ultimate prospects for the repeal measure, which comes up for a final vote next week, are murky. The head of the House committee considering a similar bill says she sees no reason to retreat on a Homestead Tax Credit reform intended to weed out scofflaws. The Senate voted 41 to 4 to repeal the application requirement, which sailed through the General Assembly unanimously last year. March 14, 2008
U.S. Foreclosure Activity Increases 75 Percent in 2007 According to RealtyTrac U.S. Foreclosure Market ReportRealtyTrac(R), the leading online marketplace for foreclosure properties, today released year-end data from its 2007 U.S. Foreclosure Market Report, which shows a total of 2,203,295 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 1,285,873 properties nationwide during the year, up 75 percent from 2006. The report also shows that more than 1 percent of all U.S. households were in some stage of foreclosure during the year, up from 0.58 percent in 2006. A total of 215,749 foreclosure filings were reported in December, up 97 percent from December 2006 and bringing the fourth-quarter total to 642,150 filings on 527,740 properties — up 1 percent from the previous quarter and up 86 percent from the fourth quarter of 2006. March 14, 2008
State Creates Tools to Help Avoid ForeclosuresOhioans facing foreclosure got a little extra help yesterday. The state launched a Web site and hot line aimed at providing homeowners with information to help them keep their homes. The Web site, www.savethedream.ohio.gov, is part of a $135,000 marketing campaign by the Ohio Department of Commerce to get the word out about resources available to those in trouble on home loans. The campaign also offers homeowners a new foreclosure hot line, 1-888-404-4674, to call for help. March 14, 2008
Foreclosure Property Tours Catch on Across the CountryBusloads of home buyers are hopping aboard the foreclosure bandwagon in search of bargains, and real estate agents and brokers are supplying the wheels and deals in markets across the country.Ruth and John Ahlbrand, who own and manage RE/MAX Central, a Las Vegas brokerage company, bought a 40-seat luxury coach and wrapped it with advertising that features their TourVegasHomes.com Web site and the company’s phone number. March 14, 2008
Section 8 Project Could be Jeopardized, Apartment Groups Tell SenateTens of thousands of affordable housing residents are at risk of losing their housing unless Congress acts to make changes at the U.S. Department of Housing and Urban Development (HUD), according to the recent testimony provided by National Multi Housing Council (NMHC), National Apartment Association (NAA) and the National Leased Housing Association (NLHA) at the Senate Banking Committee. Testifying on behalf of NMHC/NAA and NLHA, Hector Pinero, senior vice president of New York-based Related Management, praised the Section 8 project-based assistance program as “the most effective housing subsidy ever devised by Congress,” but warned lawmakers that the program is experiencing major disruptions that seriously jeopardize the program’s continued success. March 14, 2008
New Orleans’ Homeless Rate Swells to 1 in 25The homeless population of New Orleans since Hurricane Katrina has reached unprecedented levels for a U.S. city: one in 25 residents. An estimated 12,000 homeless accounts for 4% of New Orleans’ estimated population of 302,000, according to the homeless advocacy group UNITY of Greater New Orleans. The number is nearly double the pre-Katrina homeless count, the group says. March 17, 2008
Homeless Still Feel Katrina’s WrathCedric Allen once wrestled with his crack addiction in an apartment he shared with his fiancée or in a home surrounded by his four grown daughters. Today, Allen, 48, struggles with the same addiction alone in a camping tent under an interstate overpass in downtown New Orleans. His daughters and fiancée are gone, displaced by Hurricane Katrina. His old apartment is unaffordable. March 17, 2008
HUD PROPOSES MORTGAGE REFORM TO HELP CONSUMERS BETTER UNDERSTAND THEIR LOAN, SHOP FOR LOWER COSTS March 17, 2008
Fighting Back Against Corrupt AppraisalsProperty appraisers have been warning about it for a decade, and the real estate market is reaping the whirlwind: The home price declines around the country are partly the result of systemic, intentional overvaluations on home appraisals — much of them at the behest of loan officers illegally influencing or threatening appraisers to get them to “hit the number” needed to close the deal. But if an extraordinary new legal settlement has its intended effect, that system will change radically in the coming months: March 17, 2008
Piggyback Loans vs. InsuranceA piggyback loan is a second mortgage taken out at the same time as a first mortgage as a way of borrowing a larger total amount without having to pay mortgage insurance. The first mortgage is for 80 percent of property value and therefore does not require insurance. Then the piggyback loan is for 5 to 20 percent of the value. Instead of a mortgage insurance premium, the borrower pays a higher rate on the piggyback than on the first mortgage. March 17, 2008
A Legal Maneuver That Could Keep Property in the FamilySCIN. No, it’s not the stuff that covers our bodies. It’s a complex legal and financial transaction, but it may be of interest to elderly homeowners and their families. SCIN stands for self-canceling installment note. Here’s how it works: Say your parents own their house, but their financial situation makes it difficult for them to maintain it. You are prepared to buy the house and rent it back to your parents, but because you have your own house, you are unable to qualify for another mortgage loan. March 17, 2008
HUD Wants Mortgage Costs Made Clear to BorrowersMortgage lenders would be required to give better estimates of closing costs and improve disclosure of payments to mortgage brokers under rules proposed Friday by the President Bush and the Department of Housing and Urban Development. The new rules would require closing costs to be clearly laid out so consumers can shop for the best loan, and put limits on the changes allowed in that estimate, the department said. The better disclosures would help consumers save an average $670 in closing costs, said Kurt Usowski, a top HUD economist. March 17, 2008
Frustration Takes Hold in Neglected NeighborhoodsThe residential enclave that abuts Lake Pontchartrain not far from Lakefront Airport in many respects is one to be envied — by post-Katrina standards, at least. Built on a natural slope along the earthen lake levee, the mostly brick, slab-on-grade houses in this area — known sometimes as South Shore or Villa Site, but more often by no name at all — took on just 2 to 4 feet of floodwater, compared with a depth of more than 10 feet a few miles away. Friendship ties among residents — at least 70 percent of whom have returned — are strong. Before Katrina, neighbors broke bread together and cared for each other’s children. After the flood, they gutted each other’s houses. March 17, 2008
Bidding for A Bargain on The Foreclosure Auction BlockFor the past year, Dennis and Carol Anderson had been eyeing a property in Idyllwild, thinking it would make a great retirement home. On Sunday, the Cypress couple was ready to make an offer. The three-bedroom, 3,000-square-foot mountain house, which was on the market for about $700,000 a year ago, was being sold at a foreclosure auction. The starting bid: $235,000. “I’m a nervous wreck,” said Dennis Anderson, 62, as he waited for the property to be called. As the housing market continues to slump and mortgage defaults mount, public auctions of foreclosed properties are luring buyers with the promise of bargains. On Sunday, about 600 prospective buyers and real estate agents packed a ballroom at the Doubletree Hotel in Ontario to bid on about 120 bank-owned homes across Southern California. March 17, 2008
In Fed We Trust, but Can it Get Us Out of This Mess?The Federal Reserve is taking unprecedented steps as it battles a full-blown financial crisis: invoking rarely used legal authority to lend directly to investment banks, helping finance the bargain-basement sale of Bear Stearns to JPMorgan Chase and making the steepest interest-rate cuts in its modern history. As the Fed meets Tuesday consider another deep cut in the short-term lending rate that influences a broad swath of consumer and business loans, concern is growing that even its most aggressive efforts may not be sufficient to ease an unprecedented global credit crunch and to keep the U.S. economy and world financial system on track. March 18, 2008
Rescue Puts Credibility of the Fed on the LineFar more than at any time before, the Federal Reserve is putting its vast resources and its reputation on the line to rescue Wall Street’s biggest institutions from their far-reaching mistakes. Over the next few months, the central bank will lend hundreds of billions of dollars to banks and investment firms that financed a mountain of mortgages now headed toward default. No one knows how many financial institutions will be looking for money, or how much they will seek. No one knows how much in hard-to-value securities the central bank, in return, will have to hold as collateral. March 18, 2008
End of Cheap Credit Hits Homes, BusinessesMounting turmoil in credit markets could realign the finances of households and businesses, as banks scramble to bolster their balance sheets and jettison risky customers. For consumers, it could mean fewer credit card offers. For home buyers, it will mean tougher mortgage conditions. For many businesses, it will mean a substantial increase in borrowing costs and possible postponement of capital spending plans. “Clearly the market is going to be much tighter in terms of credit standards,” said Tobias Levkovich, chief U.S. equity strategist at Citigroup. March 18, 2008
District Planning Push Against ‘Slumlords’Interim D.C. Attorney General Peter Nickles will petition Superior Court next month to oversee a sweeping crackdown on negligent landlords, promising the push will have a “significant, immediate” impact on tenants in dozens of the District’s most decrepit apartment buildings. Nickles said yesterday he will ask the court to appoint an independent officer with broad authority to seek fines and penalties against problem landlords if they don’t repair their buildings. Nickles met last week with the Department of Consumer and Regulatory Affairs and decided to focus on five property owners, but he said he might expand the list if the court agrees to the proposed “receivership.” March 18, 2008
HUD Provides New Orleans $2.3 Million More Than 2007 to Support Housing and Development ProgramsU.S. Housing and Urban Development Secretary Alphonso Jackson today announced the City of New Orleans will receive more than $27 million to support community development and produce more affordable housing in the Big Easy. HUD’s annual funding will also provide downpayment assistance to first-time homebuyers; assist individuals and families who might otherwise be living on the streets; and offer real housing solutions for individuals with HIV/AIDS. “This funding will help New Orleans to rebuild its neighborhoods and affordable housing stock,” said Jackson. “By helping communities to improve their infrastructure or assisting families to purchase their first home, HUD is helping improve neighborhoods from the ground up.” March 18, 2008
Home Builders’ Confidence Mired Near Record LowA reading of U.S. home builders’ sentiment was stuck near its lowest level in March, as the housing industry’s malaise gave it little reason to improve. The National Association of Home Builders said Monday its housing market index for March was the third lowest reading on record. The index, which gauges builders’ perceptions of current conditions, interest from potential buyers and expectations for home sales over the next six months, came in at 20 in March for the second-consecutive month. March 18, 2008
Can’t Grasp Credit Crisis? Join the ClubRaise your hand if you don’t quite understand this whole financial crisis. It has been going on for seven months now, and many people probably feel as if they should understand it. But they don’t, not really. The part about the housing crash seems simple enough. With banks whispering sweet encouragement, people bought homes they couldn’t afford, and now they are falling behind on their mortgages. But the overwhelming majority of homeowners are doing just fine. So how is it that a mess concentrated in one part of the mortgage business — subprime loans — has frozen the credit markets, sent stock markets gyrating, caused the collapse of Bear Stearns, left the economy on the brink of the worst recession in a generation and forced the Federal Reserve to take its boldest action since the Depression? March 19, 2008
Behind Cheaper Credit, Inflation Fears LoomThe Federal Reserve Board’s rate cut yesterday increased the chances that months of Fed moves could start to trickle down to homeowners in time to ease the pain when adjustable-rate mortgages reset this year. And people who borrow money to pay tuition, buy cars or cover unpaid credit card bills might eventually see some benefit. But the Fed’s action could also revive inflation, many economists fear. By reducing the interest rate financial institutions charge each other for short-term loans, the Fed makes money more readily and cheaply available. If it miscalculates, it can pump too much money into the economy, fueling excessive demand for goods, housing and capital spending — and driving up prices. March 19, 2008
Wilbur Ross buys H&R Block’s mortgage unitBillionaire investor Wilbur Ross will pay $1.1 billion for H&R Block’s troubled Option One mortgage servicing business, which has been rocked by the nationwide mortgage meltdown. Option One currently services about $53 billion of subprime mortgages, ranking it the fourth-largest in the nation. H&R Block (HRB) shut down Option One’s mortgage originations after an earlier agreement to sell the division to Cerberus Capital Management fell through. WL Ross & Co. earlier agreed to acquire $42 billion mortgage servicing rights from American Home Mortgage Investment, and the combined total of $95 billion will create the country’s second-largest subprime servicing portfolio, after Countrywide Financial. March 19, 2008
Democrats Draft Plans for Distressed HomeownersAfter the collapse over the weekend of one of Wall Street’s biggest investment banks, Democrats in Congress said they plan to move quickly on legislation aimed at stabilizing financial markets by helping as many as 2 million homeowners avoid foreclosure. House Financial Services Committee Chairman Barney Frank (D-Mass.) yesterday announced a hearing on the measure scheduled for April 9. In the Senate, aides said Majority Leader Harry M. Reid (D-Nev.) plans to work with Banking Committee Chairman Christopher J. Dodd (D-Conn.) to bring the legislation to a vote as quickly as possible. March 19, 2008
Study: Road Home Waits VaryHomeowners who sold their hurricane-damaged properties to the state through the Road Home program generally waited 100 days longer to receive their money than those who opted to get cash to rebuild, according to preliminary results of an independent study of the beleaguered grant process.Owners of condominiums also faced grant delays, waiting about 50 days longer than owners of single-family homes and duplexes to receive their grants. Meanwhile, shorter — but still significant — lag times were faced by homeowners who carried wind and flood insurance, compared with those without coverage. March 19, 2008
Subprime Mortgage Meltdown Renews Urban BlightThere is no shortage of regret over the failure of regulators and the Bush administration to heed the warning signs about the extent of the subprime housing crisis. A new regret is on the horizon: The failure to take action to prevent the descent into disrepair, economic distress and crime of revitalized urban neighborhoods across the nation. Consider Lawrence, Massachusetts, a majority-Latino city that by 2005 had at last recovered from the 1990s real-estate bubble, ridding itself of the stigma of being known as New England’s “arson capital.” March 19, 2008
State Breaks Up Alleged Sub-prime Fraud RingState and local prosecutors said Tuesday that they had shut down a mortgage fraud ring that allegedly victimized thousands of seniors and others, some of whom lost their homes. The San Bernardino County district attorney’s office arrested five people and were waiting for two more to surrender to face charges of conspiracy, grand theft and elder abuse as part of a crackdown on alleged sub-prime mortgage lending scams with the California Department of Justice. A related lawsuit filed in Los Angeles County Superior Court accuses six companies of using predatory lending practices to trap homeowners in illegal and expensive loans. March 19, 2008
Housing Crisis Cools off GrowthTorrid population growth rates in Sun Belt metropolitan areas from Florida to Arizona, Nevada and California have slowed amid a severe downturn in the nation’s housing market, according to a USA TODAY analysis of Census Bureau data released today. “It’s really a slowdown in places with superheated housing markets that were almost out of control in terms of their growth,” says William Frey, demographer at the Brookings Institution. “It reflects the rapid response to angst of getting financing in those areas. People are becoming much more risk-averse, much more conservative about moving.” The new data, covering July 1, 2006, to July 1, 2007, show that domestic migration in the USA has slowed. Even among the 10 fastest-growing large counties, nine registered slower growth than the previous year. March 20, 2008
Fannie, Freddie Cleared To Buy More MortgagesThe federal government yesterday gave Fannie Mae and Freddie Mac permission to operate with a reduced safety net in order to increase their aid to the troubled mortgage market. The step could allow the two federally chartered finance companies to immediately increase their investment in mortgages by a combined $200 billion, potentially compensating for weak demand from other investors. That could improve the availability and affordability of home loans, leaders of the two companies said. March 20, 2008
The Affluent, Too, Couldn’t Resist Adjustable RatesThey took out adjustable-rate mortgages at the peak of the housing bubble to buy homes they would otherwise not be able to afford. Or they refinanced existing mortgages to take cash out. And now, two or three years later, the day of reckoning is here. These are not lower- and middle-income borrowers, but more affluent consumers with annual incomes of $100,000 or more who are increasingly being ensnared in the home mortgage crisis. People in all income categories “are facing the shock of new payments that can be twice as much as previous ones,” said Susan M. Wachter, professor of business and a real estate specialist at the Wharton School of the University of Pennsylvania. March 20, 2008
City Will Offer Rent Subsidies for Fire VictimsDistrict officials said yesterday that the city will provide $275,000 in rent subsidies for up to two years to help the mostly low-income tenants burned out of a Mount Pleasant apartment building. At a news conference, Mayor Adrian M. Fenty (D) said the city money will subsidize the temporary relocation of about 200 people who were living at 3145 Mount Pleasant St. NW until a massive fire destroyed the structure last Thursday. The cause of the fire, the first five-alarm blaze in the city in 29 years, has not been determined. March 20, 2008
Effort to Buy Causeway Stalled by OfficialsLake Pontchartrain Causeway officials have met at least three times since December with a group of investors interested in buying or leasing the bridge, a plan that could provide Jefferson and St. Tammany parish governments with a cash windfall but eventually would lead to higher tolls for commuters. The proposal was blasted Wednesday by legislators scrutinizing the Causeway’s budget in Baton Rouge, and the bridge’s general manager insisted the bridge isn’t about to change hands. March 20, 2008
Crowds Brave Storm, Lines for Housing HelpDramatic evidence of the post-Katrina shortage of affordable housing was on view Wednesday in Kenner, where thousands of people — far more than usually turn out for this yearly event — queued up for the chance to apply for housing vouchers. “People are so desperate for any type of affordable housing right now,” said Laura Tuggle, managing attorney for the housing law unit for New Orleans Legal Assistance. The Kenner Housing Authority took applications Wednesday for the Section 8 program, in which people can get federal vouchers to help pay rent. March 20, 2008
Housing Discrimination Lawsuit SettledA Realtor and the owners of a Homewood residence agreed Tuesday to pay $25,000 in damages after a black prospective homebuyer accused them of racial discrimination a year ago. “We’re certainly happy to be able to resolve it,” said John Petruszak, executive director of the South Suburban Housing Center.The Homewood-based agency assisted in filing the federal lawsuit that was settled out of court this week. The lawsuit alleged Jerome Hoskins, a black Homewood resident, made a purchase offer with Michele Beckers, a real estate agent from ReMax 10 in Homer Glen. March 20, 2008
Finding Help to Fight ForeclosureAs the mortgage business goes, so does Lisa Jarman. In flush times, she was a self-employed loan consultant for banks. Last fall, she became a “foreclosure prevention counselor,” joining the homeownership meltdown’s latest spinoff industry. “A tsunami has hit us,” said Jarman, 42, the first such counselor at the Fair Housing Council of Riverside County, located in the nation’s fourth-worst area for home loan failures in 2007. She was hired in September and found more than 400 people lining up at one recent workshop seeking guidance on avoiding foreclosure, she said. March 20, 2008
O’Malley Hoping For Quick Vote on Foreclosure BillThe Maryland senate unanimously approved a bill Wednesday to help homeowners avoid foreclosure. Senators voted without debate to approve the bill. The measures include setting up a new crime of mortgage fraud and to give homeowners more time before a foreclosure can be made final. Maryland Governor Martin O’ Malley wants the bill to pass quickly. “We are very near passage of some comprehensive foreclosure reform in our state, that in essence, will eliminate a fast track to foreclosure in Maryland,” O’Malley says. March 20, 2008
Annapolis weighs curfew on youthsAnnapolis Mayor Ellen O. Moyer has asked city leaders to consider imposing a curfew on youths citywide or on all residents of the 10 public housing communities after the shooting death this week of a 17-year-old boy. She is also calling on city lawmakers to consider requiring those entering public housing to show identification or proof of residency, and starting a gun buyback program in the state capital, where four homicides have occurred this year, half the record eight in 2007. March 20, 2008
Foreclosure Fears GrowAnother bailout package may be in the cards for struggling Bay State homeowners as a continuing surge in foreclosures raises alarm on Beacon Hill. Faced with the prospect of thousands of additional foreclosure filings over the next few months, state Rep. Ronald Mariano (D-Quincy), chairman of the House’s financial services committee, wants to take another look at efforts to help homeowners. That could mean everything from expanding the pool of homeowners eligible for help to putting more money into anti-foreclosure efforts. March 20, 2008
Arizona Gets Foreclosure Aid FundingArizona has received $1.45 million in federal funding to help the state’s growing number of homeowners facing foreclosure. The money is part of the National Foreclosure Mitigation Counseling Program, and it’s the first federal money dedicated solely to foreclosure prevention to reach Arizona. Last month, 2,250 families in metro Phoenix lost their homes to foreclosure. That’s the highest monthly rate for defaults in the Valley since 1990, according to the Information Market. March 20, 2008
Rates on 30-year Mortgages Drop Back Below 6%Rates on 30-year mortgages dropped below 6% this week for the first time in more than a month, reflecting aggressive efforts by the Federal Reserve to cut interest rates to protect the economy from a serious recession. Freddie Mac, the mortgage company, reported Thursday that 30-year fixed rate mortgages averaged 5.87% this week. That was down from 6.13% last week and marked the first time that 30-year rates have fallen below 6% since the week of Feb. 14. March 21, 2008
Seven Firms Closed in Calif. Mortgage Fraud ProbeIn August 2007, investigator Eric Bremner found evidence in a shredder at Olympic Escrow that he says confirmed borrowers’ complaints that they had never signed the mortgage documents that pushed them into a financial hell. Bremner found pieces of documents that had been cut to remove signatures and notary seals. Loan applications, escrow agreements and other documents had signatures that had been taped on, he said. “That validated the statements that the victims had been making over and over again: That they did not recall signing these documents and they did not agree to the terms of the loans they were given,” says Bremner, a senior investigator in the real estate fraud unit of the San Bernardino County district attorney’s office. March 21, 2008
Greenspan Stands His GroundMany economists blame Greenspan for lax bank supervision and for keeping interest rates too low, too long from mid-2003 to mid-2004. That, the theory goes, fueled the housing bubble and spawned subprime and adjustable-rate mortgages for low-income people, vast numbers of whom can’t make their payments now. Banks bought those mortgages in bundles that are worth far less than they originally were. That has led to big write-offs, shaking the entire financial system. March 21, 2008
MD: Home Loan Reform is NearWith the foreclosure crisis accelerating, Maryland lawmakers approved last night the final elements of one of the most aggressive reform packages in the nation to guard against future mortgage-related calamities. Maryland is poised to enact tougher sanctions for mortgage fraud; to force banks to establish a borrower’s ability to pay before making a loan; and to require more notification and a longer waiting period before a home can be repossessed or sold. March 21, 2008
Working Toward a Future to Rival the Apollo’s Glittering PastNY list of New York City landmarks — the Statue of Liberty, the Empire State Building, the Brooklyn Bridge, Central Park — would include, near the top, the Apollo Theater. But unlike those icons, the Apollo has escaped ruin by the skin of its teeth, thanks in large part to Jonelle Procope, the chief executive of the foundation that runs the theater. Tens of millions have been spent restoring parts of the theater in the past five years, but there is still much work to do. In January, Ms. Procope and Richard D. Parsons, the chairman of the Apollo Theater Foundation and chairman of Time Warner, announced a $96 million plan to complete the renovation and expand the Apollo. March 21, 2008
Slump in Housing Spills on SuppliersShelter Systems, a Westminster company that makes roof and floor trusses, had 220 employees in 2005. Now? Ninety. That’s the tough reality for homebuilder suppliers, many of which are feeling the housing downturn as keenly as their clients. Permits for new residential units in the metro area were down 45 percent last year compared with 2005, according to the Baltimore Metropolitan Council, which means a lot less demand for trusses - plus windows, doors, carpeting, countertops and everything else builders need. March 21, 2008
Buying Home with Help from ParentsWith today’s turmoil in the housing market, hitting up mom and dad for a down payment might be a young buyer’s best route to homeownership. It’s hard for the younger generation to become first-time homebuyers today as they try to juggle numerous financial responsibilities, experts say. “Stakes are higher,” says Carrie Schwab Pomerantz, chief strategist of consumer education with Charles Schwab & Co. “Today, young people are solely responsible for their retirement. A lot of young people are coming out of college with high levels of debt.” March 21, 2008
Slow Economy Likely to Stall Atlantic YardsThe slowing economy, weighed down by a widening credit crisis, is likely to delay the signature office tower and three residential buildings at the heart of the $4 billion Atlantic Yards project in Brooklyn, the developer said. “It may hold up the office building,” the developer, Bruce C. Ratner, said in a recent interview. “And the bond market may slow the pace of the residential buildings.” Mr. Ratner, chief executive of Forest City Ratner, did not specify the kinds of delays possible, but suggested that construction could be put off for years. His comments are his first public indication that the darkening economy has slowed the ambitious project, spanning 22 acres at the intersection of Flatbush and Atlantic Avenues. March 21, 2008
Causeway Sale Talk Shocks CouncilThree Jefferson Parish Council members on Thursday voiced opposition — sometimes incredulous — to Parish President Aaron Broussard’s preliminary talks to sell or lease the Lake Pontchartrain Causeway to an international consulting firm. “That is the most ridiculous thing I ever heard in my life,” Councilman Elton Lagasse said. “That Causeway is a public bridge. It belongs to the public,” Councilman John Young said. “I’m just flabbergasted that it’s even being considered.” Councilwoman Jennifer Sneed said she’s already told Causeway officials that selling the bridges “is not in the best interest of the Causeway or the residents of Jefferson Parish.” March 21, 2008
Mortgage Relief Proposals Gain MomentumCall it what you will — a bailout or a loan. The Federal Reserve’s actions to save Bear Stearns from collapse have intensified debate over whether the government also needs to do more to prevent millions of homeowners from losing their homes. So far, the White House has opposed the idea of using taxpayer dollars to help homeowners struggling under mortgage debt. March 21, 2008
U.S. Contractor Under Fire for Katrina JobsOf the dozens of building contractors punished by the state of Mississippi for preying on victims of Hurricane Katrina, one stands out from the crowd of mostly small-time, fly-by-night operators: Call Henry, a Florida-based firm with hundreds of employees that each year earns tens of millions of dollars from contracts with the Department of Defense, NASA and the Environmental Protection Agency. March 21, 2008
Boomers Ramping Up for Accessible HomesThe baby boomers are getting older, and experts say come retirement time, the Post-World War II generation will become the largest segment of Americans in U.S. history to age at one time. Eighty-three million boomers are predicted to reach the retirement age of 65 years within the next 11 years. As they age and begin to hit geriatric roadblocks, such as difficulty walking, negotiating stairs, getting into the shower and reaching kitchen cabinets, some of these seniors will need special housing. March 21, 2008
Active Adult Market Hangs on ResalesWhen you’re considering a move to a home that just might be the last one you own, resale value is probably not your top concern. The more pressing issue in the market for “active-adult” homes is whether you will be able to sell your current home to make the move possible. Active-adult communities, which are restricted to residents 55 and older, are struggling with abundant supply and weak demand, just like the rest of the housing market. March 21, 2008
Officials Warn Public of Predatory Lending SchemesA law enforcement clampdown this week on a widespread mortgage fraud underscores the need for homeowners to take care when talking to telemarketers who offer promises of mortgage relief, government authorities said Thursday. The telemarketing company, Lifetime Financial Inc., lured homeowners throughout California, including at least seven San Bernardino residents, into mortgages that turned out to be financially disastrous. The alleged victims were sold inflated real estate loans with high fees, using forged documents and crooked escrow agents and notaries. Many of the clients were elderly or didn’t speak English. March 21, 2008
Family Faced Ouster After Removing Carpet Because of Health IssuesAn Oak Forest family can breathe a sigh of relief now that their condominium association has decided not to pursue possession of the family’s home in a dispute over the kind of flooring the family installed. But the family’s potential legal woes aren’t necessarily over. The association may pursue recovery of $1,400 in attorney fees incurred when the family requested a hearing with the association board over the matter. Terrance Bates and his wife, Angelica, say they had no choice but to remove the carpet in their Oak Forest condominium and replace it with laminate flooring. March 21, 2008
Why We Borrow Until It HurtsIf the subprime mortgage mess has taught us anything, it is that we are leverage addicts. Nearly all of us are — from Northern Virginia, where we bought big houses with no money down, to Wall Street, where traders borrowed cash to make bigger bets on the housing market. Seeing Zero Percent Interest Until Next Year! on envelopes causes us to tear them open, find the Web address, enter some information and send new credit cards hurtling toward our mailboxes. Financing cars for three years is so passe; we finance them for six or seven. And now we buy — or used to buy — houses with pick-your-payment mortgages. We are leveraged from here to China. U.S. consumers spend more than 14 percent of their after-tax income just to stay current on household debt. March 24, 2008
N.Va. Foreclosures Form ‘Ring of Fire’When foreclosure specialist John Thompson looks at a map of Northern Virginia, he sees a flaming archipelago that stretches from Dumfries to Sterling. Parts of Dale City, Woodbridge and Herndon are engulfed; Manassas and Manassas Park are “a volcano.” Thompson calls this the “ring of fire,” Northern Virginia’s foreclosure belt. And although hardly a scientific model, it illustrates the geographic pattern of the region’s housing distress. March 24, 2008
First, Get the Roof Fixed. Then Go to Legal Papers to Figure Out Who Pays.Q: I bought a condominium 10 months ago, and the edges of the skylight have started to leak. Our management company had its maintenance people look at it. They said that I need to replace it and that the cost would be mine. I disagreed, and they asked their lawyer for an interpretation. The lawyer responded that I was responsible. But I know that he did not have all the documents when he offered that opinion because he could not provide me with a copy of the floor plans. What should I do? March 24, 2008
Foreclosure Fairs Offer Support to HomeownersAn overflow crowd piled into the Merced Civic Center, spilling out of the main auditorium, into the halls and down the stairs. Some brought babies, others elderly parents. Everyone brought their paperwork — the sum of their financial lives and wreckage of their American Dream. A foreclosure prevention fair on a brilliant Saturday afternoon was the place of choice for more than 200 people in Merced, a city of 65,000 best known as the gateway to Yosemite National Park. The fair kicked off a series of events planned in March, or what local politicians have dubbed “Foreclosure Prevention Month,” around the northern San Joaquin Valley as well as cities from Florida to Chicago and places west. The world’s most fertile farm region, the San Joaquin Valley includes three metro areas — Stockton, Modesto and Merced — with some of the highest foreclosure rates in the nation. March 24, 2008
Fannie Mae Pilot Program Uses Law Firms to Avert ForeclosuresA Center City law firm that handles mortgage foreclosures for Fannie Mae gets hundreds of calls a day from homeowners facing the loss of their houses. In the past, all Phelan, Hallinan & Schmieg L.L.P. could do for delinquent borrowers who wanted to work out a catch-up plan was refer them to the company that collects their payments. Then last month, under a pilot plan by Fannie Mae, the nation’s largest mortgage finance company, the law firm’s loss-mitigation department worked out 26 repayment plans with borrowers - on their first call. Now the program is expanding. Starting this week, the firm and another, Goldbeck, McCafferty & McKeever P.C. of Philadelphia, will be allowed to take more dramatic immediate steps to help borrowers, such as reducing the principal on the spot and even approving sale of a property for less than is owed. March 24, 2008
Housing Agency Endures OverhaulIt stands out even in the blighted northeast Houston neighborhood surrounding it: A bleak, forbidding shell of a building, surrounded by a chain-link fence topped with barbed wire. About a mile away, another building site buzzes with activity as workers finish a new development that will provide apartments and services to low-income, elderly Houstonians. The failed project, dubbed East Houston Estates, is an apt symbol for the troubled history of Houston’s Housing and Community Development Department, which invested $237,000 in federal funds in the property. The new Commons of Grace Apartments project represents the department’s vision for its future. March 24, 2008
California Regions Battle Over Housing Money March 24, 2008
Home Sales End Their Long Descent; Median Price SlidesHome sales posted their largest increase in a year in February as prices finally fell enough to lure reluctant buyers back into the market. Sales of existing homes rose 2.9% from January, the National Association of Realtors said Monday. The increase, which was largely unexpected by economists, is a welcome sign of some stabilization in a housing slump that has taken a toll on the nation’s economy.The median home price fell to $195,900, down 8.2% from $213,500 in February 2007. The median means half of the homes sold for more, half for less. March 25, 2008
Mortgage System Gets Another $100B-plus Shot in The ArmThe Federal Home Loan Bank system can increase purchases of Fannie Mae and Freddie Mac securities by more than $100 billion over two years in the latest government effort to stabilize the devastated market for mortgage-backed assets. The 12 regional banks in the system can boost their purchases of securities issued by the two government-chartered mortgage companies to 600% of capital from 300%, the Federal Housing Finance Board, which oversees the banks, said Monday. The aim is to inject liquidity into a market that has seized up amid a global credit crunch sparked by rotten U.S. subprime loans. March 25, 2008
Foreclosures Slam Doors on Pets, TooThey’re arriving by the thousands every month, homeless, hapless victims of foreclosure. Family pets, their lives upended by the ravaged finances of their owners, are landing in animal shelters in large numbers in some parts of the country. The precise numbers are unknown, because there is no nationwide standard for recording foreclosure pets and because many owners who surrender animals at shelters tell personnel only that they are “moving” and give no specifics. March 25, 2008
Existing-Home Sales Rise as Prices PlummetSales of existing homes increased unexpectedly in February as bargain hunters took advantage of a bloated supply and the biggest drop in single-family-house prices in at least 40 years. After declining for six consecutive months, home sales in February were up 2.9 percent over January but still down 23.8 percent from a year ago, according to a report released yesterday by the National Association of Realtors. March 25, 2008
Clinton Calls for $30 Billion for Home Mortgage CrisisSenator Hillary Rodham Clinton returned to one of her major campaign themes Monday — the economic impact of the home mortgage crisis — and called on Congress to provide $30 billion to help states and communities lessen the number of foreclosures. In a speech at the University of Pennsylvania, Mrs. Clinton proposed several other moves to deal with foreclosures, like tapping two former chairmen of the Federal Reserve, Alan Greenspan and Paul A. Volcker, and former Treasury Secretary Robert E. Rubin, to lead a “high-level emergency working group” to recommend ways to restructure at-risk mortgages to help avert more foreclosures. March 25, 2008
A Ray of Light for hHousing?U.S. home sales increased unexpectedly last month for the first time since the middle of last year, a sign that homebuyers are taking advantage of big drops in prices. Figures released yesterday by the National Association of Realtors show the median price of an existing home fell more than 8 percent last month from a year earlier, the largest decline since the trade group began tracking the market in 1968. Sales, on the other hand, rose in February over January, breaking a six-month downward streak. March 25, 2008
State Subprime HelpTwo major bills are on the table in Albany to help people caught in the subprime mortgage crisis and to prevent this kind of meltdown from happening again. While there’s disagreement about the remedy, state leaders acknowledge one thing - it’s time to act. President George W. Bush has resisted congressional proposals to intervene on behalf of distressed homeowners. The House Financial Services Committee will take another run at the issue next month. In the absence of federal action, the onus is on the states. March 25, 2008
U.S. Officials Warn of ScamsFederal officials say a wave of opportunistic scams are targeting homeowners trying to avoid foreclosure in the current housing downturn. Monday, prosecutors in California unsealed twin cases against 19 people who, according to agents from the Federal Bureau of Investigation and the Internal Revenue Service, skimmed nearly $13 million in equity from 115 homeowners coast to coast under the guise of a mortgage rescue. March 25, 2008
Ex-Countrywide Exec Heads New Mortgage FirmStanford Kurland spent nearly three decades helping build Countrywide Financial Corp. into the nation’s largest mortgage lender. Now, the former president of the troubled company and several key colleagues hope to cash in as the housing market collapses. Kurland, 55, will serve as chairman and chief executive officer of a new company unveiled Monday that will acquire and restructure distressed mortgages. March 25, 2008
Straining in the Stadium’s Shadow: Soaring Taxes Put Youth Agency, Others in SE at RiskAs the District prepares to celebrate the grand opening of a waterfront baseball stadium, Positive Nature is preparing to close two blocks away. The agency is a daily rest stop, almost a second home, for children, some of whom have been sexually abused, shuffled from one foster home to another or sent to counseling because they fight or act up. The nonprofit group moved into the Southeast Washington neighborhood in 2004 when it was a haven for addicts, prostitutes and nightclubs with nude dancers. March 26, 2008
HUD CHARGES TEXAS SUBDIVISION OWNERS, ZONING COMMITTEE WITH VIOLATING FAIR HOUSING ACT March 26, 2008
Battered Home Prices Keep TopplingHome prices across the USA continued their dizzying free fall, posting record drops in some of the largest metro areas in a sign that no major market is being spared from the national housing crisis.Single-family home prices in 10 major metropolitan areas tumbled 11.4% in January from a year ago —— the steepest decline since such data were first collected in 1987, according to the S&P/Case-Shiller composite index released Tuesday. March 26, 2008
Swift Steps Help Avert Foreclosures in BaltimoreWhen Wilbert and Patricia Savage missed two mortgage payments on their tidy row house here last fall, Mr. Savage, 75, despaired that they could ever catch up. But he remembered Roy Miller, a nonprofit housing counselor with a nearby storefront office who had helped other neighbors in trouble. The Savages visited Mr. Miller, and he called their lender and was able to work out a repayment plan for the missed payments, something Mr. Savage said he could never have managed on his own. “Without Roy, we’d probably be out of the house or close to it,” he said. March 26, 2008
Consumer Attitudes and Home Prices SourAmericans are bracing for rising unemployment and shrinking salaries, a gloomy outlook that could translate into a serious cutback in consumer spending, the primary engine of the economy. A private survey of about 2,500 households found that Americans feel worse now about the economy’s prospects than at any time since 1973, when Americans struggled with soaring oil prices and runaway inflation. Fears often prove overblown, of course, and this particular survey, which was released on Tuesday by the Conference Board, has a spotty track record as an indicator. But expectations can often be self-fulfilling: worried consumers are less likely to make the big purchases that help keep the economy humming. March 26, 2008
D.C. Housing Market WoesThe District of Columbia Housing Monitor for Winter 2008, released today, confirms what one might expect, given the national economic woes, the mortgage crisis and the District’s own issues with affordable housing. The report findings: condo and home sales are down; single-family home prices are down; and new housing construction is down. March 26, 2008
Be It Ever So Illogical: Homeowners Who Won’t Cut the PriceIn 2005, Randolph Harrison and his wife, Pamela, decided to move north from Silicon Valley, over the Golden Gate Bridge into wooded Marin County to be closer to her new job. They found a six-bedroom house that seemed ideal except for the price, $1.875 million. The current owner, they knew, had bought the house a year earlier for $1.475 million. So the couple, who both have finance jobs in the technology industry, told their real estate agent that they wanted to offer $1.575 million. He told them that the owner wouldn’t even listen to such a low bid. The owner’s attitude was “we’ll just stay here until we sell it for 1.875,” the agent said, “even if it takes years.” March 26, 2008
McCain Rejects Broad U.S. Aid on MortgagesDrawing a sharp distinction between himself and the two Democratic presidential candidates, Senator John McCain of Arizona warned Tuesday against vigorous government action to solve the deepening mortgage crisis and the market turmoil it has caused, saying that “it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers.” Mr. McCain’s comments came a day after Senator Hillary Rodham Clinton of New York called for direct federal intervention to help affected homeowners, including a $30 billion fund for states and communities to assist those at risk of foreclosure. Mrs. Clinton’s Democratic opponent, Senator Barack Obama of Illinois, has similarly called for greater federal involvement, including creation of a $10 billion relief package to prevent foreclosures. March 26, 2008
State Can’t Pay Legal Aid Bill for Road Home ApplicatantsThree days before then-Gov. Kathleen Blanco agreed to pay the Road Home contractor an additional $156 million, her administration said it couldn’t come up with less than $500,000 to continue legal services to help low-income Louisiana homeowners get their grants. Now, nearly four months later, the state’s promises to come up with the money haven’t materialized, and the Road Home’s legal aid program has used up all of the $570,000 it had to serve needy applicants who can’t afford to pay attorneys to help them work through obstacles. The program helps needy homeowners whose applications are complicated, such as those who have homes that have been in families for generations even though the resident at the time of Hurricane Katrina often had not established clear title through succession. March 26, 2008
Equity Loans as Next Round in Credit CrisisLittle by little, millions of Americans surrendered equity in their homes in recent years. Lulled by good times, they borrowed — sometimes heavily — against the roofs over their heads. Now the bill is coming due. As the housing market spirals downward, home equity loans, which turn home sweet home into cash sweet cash, are becoming the next flash point in the mortgage crisis. Americans owe a staggering $1.1 trillion on home equity loans — and banks are increasingly worried they may not get some of that money back. March 27, 2008
Cheaper to Keep Her and Pay Off the LoanEven before the recent economic mudslide, the inbox for my regular online chat had filled up with questions from people wondering how to get out of debt or seeking assurances that they weren’t the crazy ones for trying to pay off loans aggressively. The following is a transcript of a recent discussion that included some of these questions. But before I get to the debt questions, I wanted to share this query from a reader in Boston, who asked: “How does a married woman protect herself financially in case she gets ‘Spitzered’?” March 27, 2008
Inquiry Assails Accounting Firm in Lender’s FallA sweeping five-month investigation into the collapse of one of the nation’s largest subprime lenders points a finger at a possible new culprit in the mortgage mess: the accountants. New Century Financial, whose failure just a year ago came at the start of the credit crisis, engaged in “significant improper and imprudent practices” that were condoned and enabled by auditors at the accounting firm KPMG, according to an independent report commissioned by the Justice Department. In its scope and detail, the 580-page report is the most comprehensive document yet made public about the failings of a mortgage business. Some of its accusations echo charges that surfaced about the accounting firm Arthur Andersen after the collapse of Enron in 2001. March 27, 2008
Outgoing Recovery Czar Says Recovery Still Years AwayAs Donald Powell returns to private life, President Bush’s former point man for Gulf Coast recovery said Wednesday he is optimistic about New Orleans’ future, highlighting the city’s progress in reinventing public schools and public housing, along with improvements to health care and criminal justice, as signs the city is headed in the right direction. But Powell also said a federal recovery czar is still needed because it will take years to rebuild homes and drive the recovery plans in place. And he said continued improvements to the region’s flood protection remain a critical responsibility of the federal government. March 27, 2008
California Utility Plans Massive, $875M Solar ProjectSouthern California Edison plans to announce Thursday what it says will be the largest solar installation in the USA, spending $875 million to put 250 megawatts of solar energy on more than 100 buildings in the greater Los Angeles area. The systems will cover 65 million square feet of rooftops and supply enough power to serve about 162,000 homes. March 27, 2008
More Families Affected by ForeclosuresMore than twice as many homes in the Prince William County area fell into foreclosure last month than in February 2007, a sign that local real estate woes are worsening. According to the land records office of the Prince William County Circuit Court, which tracks foreclosure filings for the county as well as Manassas and Manassas Park, 306 properties were repossessed by banks last month, up from 140 a year earlier. Foreclosures in the three jurisdictions rose 89 percent during the first two months of this year compared with the corresponding period last year. March 27, 2008
Man Indicted in Foreclosure Fraud SchemeA Newark man has been indicted on 30 felony counts after being accused of making false promises to 15 homeowners rattled by foreclosure fears. Harry W. Blausey, 66, last known address 1545 Londondale Parkway, was charged with 10 counts of grand theft, a fourth-degree felony; 14 counts of securing writings by deception, a fourth-degree felony; five counts of theft, a fifth-degree felony; and one count of engaging in a pattern of corrupt activity, a second-degree felony. March 27, 2008
Don’t Forsake Environment to Meet Housing GoalsAdraft report prepared for the Department of Community Affairs by its Land Use and Planning Subcommittee says current environmental rules impede construction of affordable housing. With the subcommittee composed primarily of builders, developers and planners, one might wonder about the objectivity of its findings. The builders who are using the need for affordable housing as an excuse for relaxing environmental regulations have been rewarded with large-density bonuses from municipal planning boards in exchange for constructing a token amount of affordable housing. March 27, 2008
South, West Sides Hardest Hit by Home ForeclosuresChicago’s West and South sides were the areas hardest hit by foreclosures last year, according to a report by a community support group. The number of home foreclosures in Chicago increased 46 percent in 2007 from 2006, to 14,250, according to the data from the National Training and Information Center. The report, part of the group’s Save the American Dream campaign, was presented Wednesday during a City Council Housing Committee meeting. The center is calling for solutions to the foreclosure crisis. March 27, 2008
Council Looks at Foreclosure FreezeTwo City Council members are calling for a freeze on sheriff’s sales of foreclosed properties so banks can work harder to help homeowners keep their homes. With the national subprime mortgage crisis predicted to get worse in Philadelphia this year, Council Majority Leader Marian B. Tasco and Councilman Curtis Jones Jr. said they would offer a resolution today calling on Sheriff John D. Green and Common Pleas Court President Judge C. Darnell Jones II to impose a moratorium on foreclosure sales involving high-cost mortgages. “We don’t want to be like Ohio,” said Curtis Jones, citing the way that state’s housing market was gutted by subprime loans. March 27, 2008
Gainesville Responds to Lawsuit: City Didn’t Discriminate Against Group HomesAttorneys for Gainesville are fighting allegations that the city has discriminated against the owners and residents of two substance abuse recovery programs in the city. In papers filed Wednesday in U.S. District Court, Gainesville attorneys say that the city acted appropriately when it denied requests from Ricky Martin and Harold Hinchman for the zoning and special-use permits that would allow them to continue running Martin’s Alpha House for Men and Hinchman’s Agora House for Men. March 27, 2008
2 Arrests in Alameda County Foreclosure ScamTwo women were arrested Wednesday for allegedly running an elaborate foreclosure rescue scam, according to the Alameda County district attorney’s office. Sonia Alburez, 37, and Verena Silva, 42, were charged with bilking more than a dozen desperate homeowners of $1,500 to $2,500 a month in exchange for a plan the two allegedly said would save their houses from foreclosure. Instead, according to a 36-count complaint filed in Alameda County Superior Court, victims still lost their homes - as well as the money they paid Alburez and Silva. March 27, 2008
How Not to Prevent ForeclosuresWith foreclosures surging, the last thing the nation needs is another government-hosted meeting where mortgage lenders pledge once again to do their utmost to help distressed borrowers stay in their homes — and then go back to the business of foreclosure. Yet, a meeting and a round of pledges is exactly what Senator John McCain called for on Tuesday, as if the country had not been down that fruitless road already. The real core of his speech was his argument against government action to help dig distressed homeowners — or the country — out of the mortgage mess. March 27, 2008
Long Island: A Third of State Subprime ForeclosuresSuffolk and Nassau counties accounted for 33 percent of subprime loans that were made in 2006 in New York State and that are now in foreclosure, according to a report to be released Friday by the Empire Justice Center, a nonprofit law firm that advocates for low-income families. The analysis, based on data from the Federal Reserve Bank of New York, shows Long Island at the top of the mortgage crisis in the state, the Albany-based center said. The group will publicize the 80-page report, which will show foreclosure and default rates across the state and talk about solutions and the impact on minority communities. March 27, 2008
Foreclosure Machine Thrives on WoesNOBODY wins when a home enters foreclosure — neither the borrower, who is evicted, nor the lender, who takes a loss when the home is resold. That’s the conventional wisdom, anyway. The reality is very different. Behind the scenes in these dramas, a small army of law firms and default servicing companies, who represent mortgage lenders, have been raking in mounting profits. These little-known firms assess legal fees and a host of other charges, calculate what the borrowers owe and draw up the documents required to remove them from their homes. March 31, 2008
Real Estate Road Trips Scout Troubled MarketA new form of sightseeing is catching on in the Washington suburbs, offering investment advice, free cookies and some eye-opening discoveries among the empty ramblers and forsaken townhouses of the region. They are known as foreclosure tours or home buyer tours. One that originated yesterday at a Northern Virginia Long and Foster office was labeled “The Centreville Gateway Foreclosure Tour of Homes.” More than 30 “tourists” squeezed onto a green passenger bus for a three-hour spin through parts of Fairfax, Loudoun and Prince William counties. Some said they were looking for their first home, others were looking for a good investment, and some were just looking. March 31, 2008
Insurance Chief Up Against Louisiana’s PastAs Louisiana’s insurance commissioner, Donelon needs to persuade insurance companies that they should insure homes in his hurricane-prone state. He needs to persuade consumers that their sky-high premiums may soon descend. And, even though he hasn’t been implicated in any wrongdoing, he needs to convince people that he’s not a crook. Three of the past four commissioners went to prison on federal criminal charges, including money laundering and extortion. That’s a streak Donelon vows to snap. March 31, 2008
BALTIMORE AND NEW JERSEY LANDLORDS SETTLE LEAD-BASED PAINT DISCLOSURE CASESThe U.S. Department of Housing and Urban Development today announced settlements against landlords in East Orange, New Jersey and Baltimore, Maryland for failing to warn their tenants that their homes may contain potentially dangerous lead. Under the terms of the settlements, HUD will require abatement of lead hazards in 108 apartments in three multi-family properties in East Orange, and lead-safe window replacement in 32 units in the Baltimore area (see attached list). In addition to paying more than an estimated $750,000 to perform this lead remediation work, the landlords agreed to pay civil penalties totaling $54,000. March 31, 2008
Jumbo Loans Are Reborn, But Terms Are StifferYour tax rebate check won’t arrive until May, but the economic stimulus plan’s new super-size loans for buyers in high-cost housing areas have hit the market. Depending on the location of the property you want to buy or refinance, you can now get a Federal Housing Administration-insured mortgage for as much as $729,750 with a 3 percent down payment. You can also apply for loans designated for funding by Fannie Mae and Freddie Mac up to that amount (or 125 percent of your area’s median home price) with down payments of at least 10 percent. March 31, 2008
Displaced Residents Won’t Be in 2010 Census Tally for La.For displaced residents planning on moving back to Louisiana, the Census Bureau has a suggestion.Make it back by April 1, 2010, if you want to be counted as a resident in the population numbers that determine congressional seats, federal allocations and other issues for the next decade. Those who arrive on April 2, 2010, or later will be counted as a resident of Atlanta, Houston or wherever they landed after Hurricanes Katrina and Rita forced hundreds of thousands from their homes in Louisiana. March 31, 2008
New Homes Rebuild Hope for Two Families in N.O.Carolyn Horne cried when she walked into her new three-bedroom, two-bath, camelback-style home. In another camelback next door, Jenika Sly took a deep breath and smiled. The two neighbors on Ferry Place, a one-way street in the Leonidas/West Carrollton neighborhood, took another step toward homeownership during a dedication ceremony Sunday. New Orleans Area Habitat for Humanity and Rebuilding Hope in New Orleans, an outreach ministry of St. Charles Avenue Presbyterian Church and its partners, welcomed the families into their new homes. The two camelback homes are part of a larger plan to build 14 houses on Ferry Place. March 31, 2008
Guided Tours Show Foreclosed HomesDrive down any Sarasota street these days, and it seems the path is dotted with for-sale signs. But while that is hardly a surprise after what the region has experienced over the last year, those homes on the market just may have a new owner: the bank. As the foreclosure crisis continues, the Sarasota-Bradenton area is bracing for a wave of even more in the coming year, as upside-down homeowners and speculators lose their properties. Those lenders who take possession through foreclosure may very well become the most frequent sellers of area homes. March 31, 2008
Housing Crisis at Historic LevelThe drastic rise in mortgage foreclosures, which began more than a year ago, coupled with the decades-long attacks on affordable housing for renters, has resulted in a housing crisis in the U.S. today that is of historic proportions. In some areas particularly hard hit by foreclosures and the lack of affordable rental properties, tent cities reminiscent of the 1930s’ Hoovervilles are beginning to swell in size. A man from California recently interviewed by the British Broadcasting Company explained that after struggling to keep up with rising mortgage payments he was eventually faced with a choice no worker should ever be forced to make. March 31, 2008
Dallas Housing Authority’s Auditors CriticizedThe auditing firm that gave the Dallas Housing Authority a clean bill of financial health — after others found serious deficiencies — has been disciplined by regulators and criticized by the federal government for its auditing work. The Alabama State Board of Public Accountancy investigated Yeager & Boyd LLP, and in August reached a settlement with firm partner Robert Boyd. In it, he agreed to make “improvements in his policies and procedures for auditing housing authority clients.” March 31, 2008
Faith-based Effort to Avert ForeclosuresAbout 500 congregants and clergy from Bay Area churches packed into Holy Rosary Parish hall in Antioch on Monday night for a spirited town hall meeting to demand a broad-based approach to helping people avoid foreclosure. “Our purpose is to stand up for real change,” said Raul DeAnda, a church member addressing the packed room of men, women and children, many waving colorful flags with slogans in English and Spanish, such as “families first” and “good business sense.” A strong desire for action was palpable in the prayers and testimony from foreclosed homeowners. There was also some anger stemming from a backlash against the massive bailout bill enacted by Congress this month. While the $700 billion legislation assists financial institutions, it does not include specific provisions for struggling homeowners.

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