September

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  • KATRINA: TWO YEARS OF RECOVERY, RACISM, RECESSION, REBUKE & REFLECTION

     September 2, 2007
  • Economists Divided on RecessionTwo years ago, top economists here at the Federal Reserve’s annual conference praised Alan Greenspan as possibly the greatest central banker ever. This year, several suggested his Fed helped spur the current meltdown in credit and mortgage markets by cutting interest rates too much and regulating too little. Analysts were divided, however, on whether the turmoil, and downward spiral in the housing market, would push the United States into recession. Fed Chairman Ben Bernanke said in a speech Friday that it is not the central bank’s job to bail out individual investors, but that it would do what is needed to limit broader economic harm from the recent seize-up of credit markets and the potential for a deeper housing fall. September 4, 2007
  • Historic Home Grants Increasen the past seven months, 289 Louisianians have received grants, ranging from $5,000 to $45,000, to restore their historic homes — and now 257 more property owners in the state, mostly in New Orleans, will receive the recovery grants. Lt. Gov. Mitch Landrieu announced this week that he has secured, with lobbying assistance from the National Trust for Historic Preservation, an additional $10 million in recovery grant money for owners of historic Louisiana properties damaged by Hurricanes Katrina and Rita. The congressional appropriation is a one-time supplement to last year’s $12.5 million allocation. September 4, 2007
  • Credit Card Companies Woo Struggling Mortgage-HoldersAs subprime borrowers began to default on their mortgages in rapidly growing numbers this year, credit card issuers increased their efforts to sign up such customers with tarnished financial histories, according to a market research firm. Direct mail credit card offers to subprime customers in the United States jumped 41 percent in the first half of this year, compared with the first half in 2006, according to Mintel International Group. Direct mail offers targeted at customers with the best credit fell more than 13 percent. September 4, 2007
  • Mortgage BreakdownThis is not your parents’ mortgage market. A generation ago, banks took on deposits and lent that money to homebuyers who took out 30-year, fixed-rate mortgages. That changed when Wall Street got involved in recent decades. Investment banks provided capital to mortgage companies so they could make the loans, and then bought the loans and bundled them into securities that are sold to investors.Through the magic of “securitization,” the broker, lender and investment bank essentially become fee-collecting middlemen between the borrower and investor. Critics say that the process encouraged riskier loans because each party passes off the mortgage to the next. September 4, 2007
  • A Challenge to New York City’s Homeless PolicyA score of families gather daily in the courtyard of a city office in the Mott Haven section of the Bronx. The parents spend time chatting at the picnic tables while children play tag on a few patches of grass. The scene is gentle. But it poses a growing challenge to Mayor Michael R. Bloomberg’s strategy for reducing homelessness. Each of the families first came here to apply for a place in the city’s homeless shelters, a first step toward getting housing subsidies. They have all been evaluated and told they do not qualify because they have homes they can return to — most often the crowded apartments of relatives. September 4, 2007
  • Going, Going, Gone: Foreclosures, Slow Sales Boost House AuctionsAbout 60 people huddled on the front lawn of the white bungalow with green shutters in Ocean Township, N.J. Parents with children in tow meandered on the porch, while others wove in and out of the freshly painted rooms, inspecting appliances and the wood floor planks. Many of them clutched bright yellow paper signs showing a bidder number. They hoped to walk away with a house, winning a good deal at an auction while sidestepping the typical six-month house hunt with a real estate agent. As the housing market slows and foreclosures spike, people who have to sell quickly or lenders that need to unload properties they took back at sheriff’s auctions are turning to the fast-talking spectacle for quick sales. Even some home builders and condo developers are using auctions to reduce excess inventory. September 4, 2007
  • Metro Housing Slide Keeps Repo Man BusySwing by Richard Grosvenor’s business for a closeup of how quickly the nation’s housing market is unraveling. In the last six months, Grosvenor and his repo drivers have hauled in hundreds of vehicles in the course of normal business. Among their more recent hauls: a trailer packed with windows destined for a new home; two backhoes, two Bobcats, two dump trucks, as well as pickup trucks belonging to electricians, landscapers, plumbers and home builders. He’s even repoed Realtors’ luxury cars. “The housing market is just taking a toll. It’s an instant snowball effect,” Grosvenor said strolling through the three-acre gravel lot at Speedy Recovery, a Lithonia business he started 14 years ago. He points to a plumber’s black 2007 Corvette. Behind it is a Bobcat. A few yards away under a tree is a white Dodge Ram 3500 pickup voluntarily turned in by the owner of a construction company. September 4, 2007
  • McMansions Turn ‘McApartments,’ Stirring IreThe new house on Allison Street in North Brentwood is two stories higher than the older homes that surround it. It doesn’t have a porch, shutters or any of the other distinguishing features found on the century-old bungalows on the block. “It’s out of character for the town,” said Mayor Petrella A. Robinson, who lives across the street, with a dog on her front porch. September 4, 2007
  • Yearlong Rezoning Begins in Balto. Co.Karen Gulczynski wants to build a second house on her 2 acres in Essex for her daughter and future son-in-law. There’s one hitch: Baltimore County zoning rules won’t let her. “I could put a golf course back there. I could put a rec center back there, a small church,” said Gulczynski, a bus attendant for Baltimore County public schools. “I could put anything back there but a home.” Beginning Tuesday, Gulczynski and anyone else in Baltimore County will be able to ask their elected officials to change the rules covering what can be built on a particular piece of property. Some will want more potential uses for their land, while others will try to restrict future development in their neighborhoods. September 4, 2007
  • A Third Home by Wright Joins His Famous DuoWestern Pennsylvania has long been home to two of renowned architect Frank Lloyd Wright’s best-known works, Kentuck Knob and Fallingwater. Now, a third Wright creation, the Duncan House, has been moved here from Lisle, Ill., offering visitors a broad architectural experience - tours of two impressive homes and an overnight stay in a 1950s-era house. Each of the homes is a different style, providing an overview of the artist’s work in a 30-mile radius, making it one of just about a dozen places nationwide where several Wright buildings are on display in a concise area. Duncan House is one of only six nationwide open to overnight guests. September 4, 2007
  • Homeownership Reached Apotheosis in 21st Century: Caroline BaumHomeownership has long been considered a desirable goal. Put a person in a home of his own, the thinking goes, and he starts to care about the quality of local education, maintaining a drug- and crime-free neighborhood, and the appearance of his property and the block on which he lives. Once the government decided homeownership was in the public interest, it went about making it more affordable. Mortgage interest and real estate taxes are deductible. The first $250,000 of profit ($500,000 for a married couple) from the sale of a home you’ve lived in for at least two years is exempt from capital gains taxes. September 4, 2007
  • Fighting ForeclosureTall grass. Homes in disrepair. For-sale signs clustered in a single neighborhood. Suburban leaders say they are concerned when they see these things — red flags that foreclosure is looming, or that it has already happened. While elected officials say they can’t provide money to solve residents’ woes, some are getting ready to have their village halls offer other kinds of help. Entire communities can get a black eye from too many foreclosed properties, they said. Suggestions on how municipalities can prevent foreclosures came at a recent meeting of the Metropolitan Mayors Caucus, which has 272 members from the Chicago area. September 4, 2007
  • Abandoned Homes Let Health Risks Move InCash-strapped homeowners facing foreclosure are abandoning their homes in higher numbers and leaving behind potential public safety and health risks. City code enforcers and county health officials are saying many of the vacated houses are showing up in newer high-end subdivisions historically immune to such trends. And it appears the problem will get worse before it gets better as financial experts predict the number of foreclosures will continue to increase well into next year. September 4, 2007
  • Australia: Industry Groups Target Predatory LendingFinance industry associations and legal groups have banded together to fight the proliferation of predatory lending, which they say is causing an increase in home repossessions. Also known as “equity skimming”, predatory lending occurs at the bottom end of the home loans market. It involves the deliberate targeting of borrowers who do not have the ability to pay but have equity in their homes.“These are lenders who are really sub-sub-prime,” Public Interest Law Clearing House NSW (PILCH) chief executive Robin Banks said. The Predatory Lending Coalition, which is being coordinated by PILCH and several legal aid groups, includes the Australian Bankers’ Association and the Mortgage and Finance Association of Australia. September 4, 2007
  • A Look From N.C. at The Debt CrisisMartin Eakes has long been a champion of the little guy. Eakes, co-founder and chief executive of Self-Help, the nonprofit community lender in Durham, has pushed to provide financing for people with low income so that they might get a slice of the American dream. And he has worked to protect them. He was one of the most vocal advocates in the 1990s of efforts to thwart predatory lenders in this state. He foresaw problems brewing in the mortgage market. Late last year, the Center for Responsible Lending, a research group affiliated with Self-Help, published a report that said 20 percent of people with subprime loans would lose their homes in the coming years. September 4, 2007
  • Foreclosure Fallout: Block by blockNever has the phrase “all real estate is local” echoed as truly as in the past year. While report after report paints a picture of rising foreclosures and flat home values in the metro area, the experience is startlingly different from community to community and, in some cases, from block to block. In some neighborhoods, values are soaring and foreclosures are barely a blip on the radar. In other areas, evidence of the mounting foreclosure rate presents itself through boarded-up homes and free-falling prices. Here’s how residents in three metro-area neighborhoods are experiencing the vastly different results of the downturn. September 4, 2007
  • Is America Really Pro-Bailout? September 4, 2007
  • NAACP Fights Housing Firms : Group Files Suit Over Mortgage Practices September 4, 2007
  • Democracy Now!: Battle Over Right to Return: Housing Advocates Occupy New Orleans Public Housing OfficePrior to Hurricane Katrina, over 5,000 families in New Orleans lived in public housing. Today, less than one quarter of them have been able to return home. Last Friday, over two dozen public housing residents and activists took over the HANO offices in New Orleans. They demanded that the government reopen the buildings. September 5, 2007
  • Democracy Now!: Fight to Reopen New Orleans Public Housing “Horrible Slow and Tragic”We speak with Tracie Washington, a lifelong New Orleans resident and civil rights attorney who has sued the city over its housing policies. “Somehow we’ve got to get to a critical mass of people where they are all telling the government that it’s wrong, so that the government will stop on its own,” Washington said. “We just can’t keep suing every single day. They’ll wear us out.” September 5, 2007
  • FEMA to Let Katrina Victims Move From Trailers Into HotelsThe Federal Emergency Management Agency announced yesterday that it will allow 60,000 families displaced by Hurricane Katrina and now living in FEMA-provided trailers on the Gulf Coast to move into hotel or motel rooms if they are concerned about formaldehyde gas in their trailers. The policy shift, made two weeks ago but not widely publicized until now, follows a House committee finding in July that FEMA leaders had suppressed warnings about the presence of high levels of potentially cancer-causing formaldehyde, apparently to avoid legal liability. September 5, 2007
  • A Mortgage Is for Paying OffAfrican Americans are often the target of financial pitchmen trying to convince them they should never pay off their mortgages. Instead, the line goes, people should dig deeper into mortgage debt to purchase cars, fund their chosen lifestyles or invest. The suggestion is that paying off your mortgage is akin to being a chump. This is dangerous advice. September 5, 2007
  • Lenders Urged to Try to Help Struggling HomeownersFederal and state banking regulators Tuesday called on mortgage companies to reach out to financially strapped homeowners to help them hang onto their houses as the fallout from the subprime mortgage shakeout is expected to escalate. Government officials suggested lenders contact borrowers who might be at risk of delinquency or default, such as those who soon will be faced with higher interest rates on their adjustable-rate mortgages. September 5, 2007
  • Can the Mortgage Crisis Swallow a Town? September 5, 2007
  • Study Says More Minorities Ended Up With High-Cost MortgagesMinorities were far more likely than whites to be given high-cost subprime mortgages last year, according to a study to be released today by the Association of Community Organizations for Reform Now, an advocacy group. In the Bay Area, the disparity between high-cost home loans made to minorities and whites was particularly pronounced, even among borrowers with similar incomes, the study found. September 5, 2007
  • Researcher Says Levee Failures Caused FloodingSt. Rita’s nursing home would have been high and dry during Hurricane Katrina if not for the Army Corps of Engineers’ “gross negligence” in designing and constructing levees that failed to protect St. Bernard Parish, a defense witness testified Tuesday in the negligent homicide trial of the owners of the home, where 35 elderly residents drowned. Ivor van Heerden, deputy director of the LSU Hurricane Center, blamed Katrina’s catastrophic flooding on decades of errors by the corps, saying some of the mistakes were so basic that “a first-year engineering student” shouldn’t have made them. September 5, 2007
  • Audit Says Md. Losing RevenueThousands of property owners might be getting improper tax breaks on second homes and rental properties, and more than 1,100 out-of-state companies might be doing business in Maryland without registering or paying required fees, according to a legislative audit released yesterday. The state is instituting a new application procedure to ensure that Maryland residential property owners get homestead credits - which limit annual property tax increases - only on their principal residences, as the law requires. September 5, 2007
  • Nonresidents Enjoy Tax Break That May Cost State MillionsFlorida may be losing about $60 million in property-tax revenue a year to people who claim a homestead exemption even though they may not live in the state, according to an analysis by the Orlando Sentinel.The review of property-tax records found that owners of more than 30,000 homes and condos across the state received the lucrative tax break for residents despite having out-of-state mailing addresses. September 5, 2007
  • Brokers Go BustJim Dell’Anno recently got laid off for the first time in his 25 years in the mortgage business, and he’s not optimistic about finding a new job any time soon. “It’s really ugly (in the lending industry) right now,” said Dell’Anno, a former Gateway Funding vice president who got a pink slip last week when his firm shuttered its Woburn office. “The mortgage business is in complete turmoil.” The U.S. home-loan industry’s sudden implosion is costing the Bay State thousands of jobs. September 5, 2007
  • Construction Spending Fell Again in JulyConstruction activity plunged in July by the biggest amount in six months as spending on homes fell for a record 17th straight month. The Commerce Department reported Tuesday that construction spending dropped 0.4 percent in July, compared with June, the weakest showing since a 0.6 percent fall in January. It was a bigger drop than economists had been expecting and underscored the continued drag the severe slump in housing is having on building activity. September 5, 2007
  • Coakley Bans Foreclosure Rescue ScamsMassachusetts Attorney General Martha Coakley has permanently banned rescue scams that target victims of the state’s growing foreclosure crisis. Her office issued a regulation that prohibits a specific type of rescue plan in which a business or individual claims to offer assistance to distressed homeowners facing foreclosure if the homeowner gives over ownership of the property. Coakley’s office contends such offers often exploit homeowners who are under extreme duress - with the lure that they would be able to get their homes back at a later date. September 5, 2007
  • Minorities At Higher Risk of ForeclosureThe Wilmington metropolitan area ranks high in terms of racial disparities related to subprime lending, and risk of foreclosure is disproportionately high for minority families and neighborhoods, a report by a non-profit advocacy group for low-income families has found. In a report scheduled for release today, the Association of Community Organizations for Reform Now (ACORN) ranks Wilmington among the top 50 metropolitan areas with the greatest racial disparity in terms of home refinancing. September 5, 2007
  • Best Markets For LandlordsWhether they’re waiting out the housing storm, or smack in the middle of it, an increasing number of Americans are choosing to rent, not own. And that’s good news for landlords and investors. Foreclosures and risky lending have dogged the housing market. As lenders have tightened their standards, attractive mortgages have grown harder to come by. Yet rental fundamentals have remained strong, especially in the 10 areas that made our list of Best Markets for Landlords. September 5, 2007
  • Coalition Formed To Fight Loan SharksMORTGAGE providers and consumer groups have formed a new coalition to push for a crackdown on predatory lending practices, as loan sharks target the equity of cash-strapped homeowners. The new coalition is pushing for uniform legislation and the closing of legal loopholes to stop fringe lenders exploiting those desperate for finance at a time of rising interest rates and high household indebtedness. Phil Naylor of the Mortgage & Finance Association of Australia said a small number of lenders were signing up homeowners to mortgages they knew they had no hope of servicing, in the expectation that when they defaulted on the loan they could repossess the property and grab the owner’s equity. The number of otherwise financially constrained households that have substantial equity in their home has risen during the recent surge in house prices. September 5, 2007
  • 200,000 MORE FAMILIES COULD AVOID FORECLOSURE WITH CONGRESS’ HELPMore than 200,000 families could avoid foreclosure under pending legislation to reform HUD’s Federal Housing Administration (FHA). That was the message U.S. Housing and Urban Development Secretary Alphonso Jackson is delivering to Congress as they return from their August recess and consider legislation to reform FHA’s vital mortgage insurance programs. On Friday, President George W. Bush and Secretary Jackson announced a new initiative called FHASecure, which will aid families who are finding themselves in default when their mortgage interest rates reset. Over the next two years, FHASecure and other FHA-backed loans will help an estimated quarter of a million Americans keep their homes. That’s about half the families expected to go into foreclosure during that time. September 6, 2007
  • Home-Equity Loans Dry UpWhen James Chou’s credit card debt began to spin out of control a few years ago, he turned to a home-equity loan to pay it off. It proved to be a wise choice. Interest rates on home-equity loans are generally lower than on credit cards. What’s more, the interest is tax-deductible, unlike credit card interest. That was a few years ago, and Chou, a purchasing manager in Lawrenceville, Ga., looks back with relief. “I was very lucky,” he says. Today, many people don’t have that option. With the turmoil in the mortgage market spreading, homeownership is no longer an easy refuge from credit card debt. That’s because some lenders have stopped offering home-equity loans. Others have tightened lending standards so that those with less-than-perfect credit scores can’t always qualify. And home prices in many areas have dropped, reducing the equity that homeowners can borrow against. September 6, 2007
  • July Pending Home Sales Lowest Since September 2001Pending sales of existing homes, a leading indicator for the housing sector, fell in July to the lowest level in nearly six years as borrowers struggled to finalize home purchases, particularly in expensive areas. The National Association of Realtors said its seasonally adjusted index of pending home sales for July fell 16.1% from a year ago and 12.2% from the prior month. September 6, 2007
  • New Houses Out of Most Families’ ReachIn real estate some say it’s all about location, but in Michigan’s rocky economy it’s more about price.A study by the Michigan Association of Home Builders found that 1.35 million Michigan households, or 35%, can afford only homes priced under $100,000, yet the average price was $139,155 in June. “There is no question that affordable housing is becoming an endangered species in Michigan,” said Lee Schwartz, executive vice president for government relations for the home builders. Jill Rauser, 35, a single mother of two, knows the problem firsthand. Rauser, who handles human resources for a Troy company, had been looking for more than a year for a newer home priced at less than $160,000. September 6, 2007
  • Foreclosure Crisis Is Not Easing In North MinneapolisThere’ll be 1500 foreclosures this year in Hawthorne and Jordan compared to about 700 last year, predicts Elizabeth Ryan, who chairs the group created by Minneapolis officials to try prevent foreclosures. Prevention is the smartest strategy, she says. People falling behind on mortgage payments should call their lender. Sometimes the lenders show forbearance and cut homeowners some slack. “The best dollar spent is to try prevent these foreclosures wherever possible, to not refinance where additional fees are required of the homeowner but to restructure to restate the terms of the mortgage,” Ryan says. September 6, 2007
  • Suit Alleges Predatory Lending By CompaniesA Trumbull mortgage broker and Shelton real estate agent are accused of taking part in a conspiracy that dangled the promise of homeownership to people who lived on food stamps and barely spoke English, only to leave those same people locked into mortgages they could not afford.Attorney General Richard Blumenthal filed suit in Superior Court on Wednesday, charging Royal Financial Services in Trumbull and Elizabeth Athan Real Estate in Shelton with being involved in a statewide predatory lending scheme. Predatory lending, which is illegal in Connecticut, has the goal of defrauding someone out of money. In this case, it was a house. September 6, 2007
  • A.C.O.R.N. Says Minorities Targeted for Predatory LendingCommunity activists A.C.O.R.N. are releasing a local study that shows alarming data on predatory lending. The study shows that minorities are far more likely to be given a high cost loan by a lender, and they’re more likely to lose their home through foreclosure. When Patricia Smith got 2 months behind in her mortgage payments, her lender threatened to take her home. Smith says, “My rate right now is 11.75. My house payment is $608; that’s too much.” September 6, 2007
  • Mortgage TightropeWith Congress back from recess, Washington is resuming discussion of the sub-prime mortgage mess and how government might help the millions of American homeowners facing foreclosure. So far, policymakers have advocated restraint. In a speech last week, President Bush called on lenders to help qualified borrowers restructure their mortgages. He also suggested letting the Federal Housing Administration insure refinanced loans for borrowers with good credit and waiving taxes on forgiven debt when loans are restructured. The Federal Reserve Bank and other banking agencies have advocated guidelines to combat predatory lending and this week backed the president’s call to lenders. September 6, 2007
  • Fed Governor Edward M. GramlichEdward M. Gramlich, 68, a former Federal Reserve governor who unsuccessfully pushed Fed Chairman Alan Greenspan to crack down on irrational lending before the mortgage boom, died of leukemia Sept. 5 at the Washington Home and Community Hospices. He was a Washington resident. In June, Dr. Gramlich published “Subprime Mortgages: America’s Latest Boom and Bust” on a topic that he had warned about for years. Much earlier, as chairman of the Neighborhood Reinvestment Corp., he had urged lawmakers to better protect consumers against predatory lending practices and toughen the regulation of mortgage lenders and banks, calling the mortgage process “confusing, costly and far less than optimal.” September 6, 2007
  • Foreclosure Epidemic Likely Means Additional Tax LiabilityThe recent national surge in home foreclosures coming on the heels of the collapse of the sub-prime lending industry and decline in home values likely means additional bad news for those former homeowners who feel like they just lost everything: additional income tax liability. Income tax liability? From losing your home? Such is the nature of the United States Internal Revenue Code. Given the foreclosure epidemic and the huge losses to which lenders of all sizes are now exposed, many lenders are willing to enter into a variety of work-out programs with their borrowers to avoid foreclosure. Avoiding foreclosure does not necessarily mean keeping the home, however. September 6, 2007
  • Marylanders Better Off Than Nation Overall As Variable Mortgages ResetAs homeowners struggled to make higher payments on adjustable mortgages, the rate of new foreclosures this spring soared to its highest level in the nearly three decades that records have been kept. Maryland, however, had a smaller rate of new foreclosures than many states. The handful of large states feeling the brunt of the credit crisis helped to push new foreclosures in the second quarter to 0.65 percent, or 65 for every 10,000 loans, the Mortgage Bankers Association said yesterday. The rate of residential loans considered delinquent (at least three months past due) jumped to more than 5 percent of the nation’s 44 million loans, up from 4.37 percent of loans in spring 2006. September 7, 2007
  • Foreclosure Listings Flood D-FW Home MarketWith a rooftop deck and sweeping views of downtown, the three-story townhome is barely 2 years old. This luxury residence east of downtown is in move-in condition and priced to sell. “It’s now priced $279,000,” said real estate agent Alicia Duffy, showing off her 2-month-old listing. “We started out at $295,000.” The 1,947-square-foot townhouse was previously owned by an out-of-state investor who hoped to make a killing in the Dallas housing market. That didn’t happen. September 7, 2007
  • New Mortgage Foreclosures Set RecordHomeowners, struggling to deal with sharp increases in their adjustable mortgage payments, got hit with a record number of foreclosure notices in the spring as the crisis in subprime lending intensified.The problem was the most severe in the industrial Midwest and former housing boom areas such as California and Florida, but economists warned the situation will get worse in coming months as an estimated 2 million adjustable rate mortgages taken out with low introductory interest rates reset to much higher rates. The crisis is most severe in subprime mortgages, loans provided to borrowers with weak credit, but it is now spreading to other types of mortgages, according to a quarterly report released Thursday by the Mortgage Bankers Association. September 7, 2007
  • As Housing Market Cools, Far Fewer Become AgentsEven when Leon Maldonado was getting his real estate license three years ago, he saw that the red-hot housing market in San Diego was beginning to cool. But he decided to forge ahead. For a while, optimism kept him going, but after few sales and fewer prospects, Mr. Maldonado finally gave up this year. “When I tell people I got out, everyone understands,” said Mr. Maldonado, 24, who now collects a steady paycheck, from a health care staffing company. “It’s the best decision I ever made.” Many people rushed into residential real estate sales when the booming housing market made a license to sell homes seem like the closest thing to a sure bet at the casino. But now, as the housing market slows to a crawl, those new agents and a good number of more established ones are looking for other employment. September 7, 2007
  • Foreclosures Hit Those With Good, Bad CreditThe number of U.S. homes entering foreclosure broke a record during the second quarter, as more homeowners with good and bad credit struggled to make mortgage payments, according to the Mortgage Bankers Association. Nationally, 5.12 percent of mortgage loans are past due because homeowners have been unable to make their monthly payments or are unwilling to pay as home values have dropped below the amount owed on them. About 0.65 percent are so far behind with payments that lenders have started foreclosure proceedings — the process of taking away a home. Distress in the housing market has led to three consecutive record-breaking quarters of foreclosure starts, and Mortgage Bankers Association economist Douglas Duncan said the current quarter may be even worse. September 7, 2007
  • Largest S&L Sees More Home Price DeclinesWashington Mutual (WM), the largest U.S. savings and loan, may set aside $500 million more than it had previously forecast for loan losses in 2007, amid what Chief Executive Kerry Killinger on Monday called a “near perfect storm” in housing. “Most housing markets appear to be weakening,” Killinger said at a Lehman Bros. financial services conference. “We would not be surprised to see declines in housing prices in many regions of the country … for the next few quarters.” September 11, 2007
  • Bigger Role Proposed for 2 Mortgage GiantsSen. Charles E. Schumer proposed yesterday that two government-sponsored mortgage giants be allowed to increase their role in the home loan market as a stabilizing force for the troubled mortgage industry. The New York Democrat wants Congress to allow Fannie Mae and Freddie Mac to increase their holdings of securities backed by mortgages by $145 billion, or 10 percent of total holdings. Schumer’s legislation is aimed at easing a credit crunch that is worsening the woes of the housing market. He wants half the money to refinance existing loans and half to fund new mortgages. September 11, 2007
  • Countrywide Seeking A New Investment: ReportCountrywide Financial Corp is working to structure another strategic investment similar to the deal Bank of America Corp struck last month, the New York Post reported in its online edition on Tuesday. Countrywide received a $2 billion injection from Bank of America, helping the largest U.S. mortgage lender shore up its finances as it struggles with a liquidity crunch. September 11, 2007
  • More Seniors Are Turning To Reverse MortgagesUsing a home equity line of credit, David Casey and his wife Joyce made some much-needed improvements around their house. New carpet. Updated plumbing. But the credit line’s interest kept jumping, pushing their monthly payment to nearly $1,000 from $600. A $239,000 reverse mortgage from Generation Mortgage Co. rescued the retired couple from the adjustable-rate credit line and provided enough money to pay off the original mortgage with some left over. September 11, 2007
  • As Mortgage Industry Adjusts to Credit Crunch, So Do BorrowersMortgages are complicated, and lending markets are in flux right now, but savvy, well-positioned consumers can still get the loans they need to buy, build or refinance a home. They just need to pay attention to what’s going on, says David Reed, a lending veteran based in Texas and co-author of “Mortgage Confidential.” To find out more about what’s going on in the mortgage industry, The Post’s Mary Ellen Slayter recently spoke with Reed. This is an edited transcript of the conversation. September 11, 2007
  • Plan Aims To Reveal Tax Jump On HomesMontgomery County Council member Phil Andrews plans to introduce a proposal today that would compel home sellers to disclose to potential buyers how much their annual property taxes would increase — an often-hidden cost that could add thousands of dollars in annual expenses. Most sellers create fliers that list current taxes. But they usually fail to mention that once a sale is completed, a county-imposed lid on property tax increases comes off, and the county begins to charge much more in property taxes, Andrews said. The seller usually doesn’t reveal the likelihood of an increase until the deal is nearly done. Andrews’s measure would require that information much sooner in the process. September 11, 2007
  • Two Days Apart, Two Reports Tell Two Stories About PricesHow worried should homeowners or sellers be? Looking at two nationally quoted measures of house values, you might be perplexed. At the end of August, Standard & Poor’s Case-Shiller national home price index reported that prices fell by 3.2 percent from the second quarter of 2006 to the corresponding period this year. Declines in property values in some metropolitan areas were much more severe — 11 percent in Detroit, 7.7 percent in Tampa, 7.3 percent in San Diego, 7 percent in Washington, 4 percent in San Francisco and 3.7 percent in Boston. September 11, 2007
  • Got Land? Now, a Way to DonateAt town meetings and forums of all kinds, one hears officials and politicians utter two popular refrains: We need to preserve more open space. And almost in the same breath: We need more affordable housing. When a citizen stands up to ask if these two propositions are not mutually exclusive, the standard reply is: “The two goals do not have to be incompatible.” But they are. When a community preserves large amounts of acreage from housing development, the remaining land becomes more dear. Families of modest means find it increasingly difficult to acquire land and build on it. September 11, 2007
  • PBS Series ‘This Old House’ Heads to New OrleansProduction will begin Tuesday on a post-Katrina New Orleans project for the national PBS home-improvement series “This Old House.” The 10 episodes shot here will begin airing in early 2008.Show host Kevin O’Connor and master carpenter Norm Abram are expected to attend a Tuesday news conference at the home, located in the Holy Cross neighborhood, at which a local architect and contractor will be announced. September 11, 2007
  • S.F: Bistro Owner Set To Meet Loan DeadlinePear Street Bistro owner Gary Wong is on track to meet today’s deadline to bring four apartments into compliance with a housing covenant tied to redevelopment loans for his building, interim Pinole City Manager Charles Long said. But as of Monday afternoon, Wong had not made his $3,692.96 loan payment for the 23rd straight month, bringing his arrears to almost $85,000. That is the amount he would have to pay to stop a foreclosure the city initiated Aug. 22. The balance of Wong’s loans plus unpaid interest stands at more than $460,000. Long also said that Wong told the city he has signed a purchase agreement with a buyer, but Long had not seen the agreement. September 11, 2007
  • CA: Evans Bill Protecting Affordable Mobile Home Housing Dies in SenateThe Senate killed a bill by Assemblymember Noreen Evans (D-Santa Rosa), Chair of the Assembly Democratic Caucus, to protect seniors and working families now living in mobile home parks by regulating the conversion of mobile home parks from rentals to resident ownership. AB 1542 received a Senate floor vote of 19-14. Seven senators declined to register a vote on the bill at all. Evans noticed reconsideration on the bill to try and round up the remaining 2 votes needed to secure the bill’s passage before the Legislature concludes its business for the year this week. The bill passed the Assembly 41-32 earlier in June.”Without this bill many seniors and working families may lose their homes,” said Evans. “This was gut check time and many Senators fought for seniors, working families, and affordable housing. We will continue to work on this.” September 11, 2007
  • Evans Bill Protecting Affordable Mobile Home Housing Dies in SenateThe Senate killed a bill by Assemblymember Noreen Evans (D-Santa Rosa), Chair of the Assembly Democratic Caucus, to protect seniors and working families now living in mobile home parks by regulating the conversion of mobile home parks from rentals to resident ownership. AB 1542 received a Senate floor vote of 19-14. Seven senators declined to register a vote on the bill at all. Evans noticed reconsideration on the bill to try and round up the remaining 2 votes needed to secure the bill’s passage before the Legislature concludes its business for the year this week. The bill passed the Assembly 41-32 earlier in June.”Without this bill many seniors and working families may lose their homes,” said Evans. “This was gut check time and many Senators fought for seniors, working families, and affordable housing. We will continue to work on this.” September 11, 2007
  • Foreclosure Crisis Plagues Local CommunitiesJust three days ago, Mortgage Bankers Association announced that Ohio has twice the national average of homeowners who are 90 days past due on their mortgages or are in foreclosure. Maple Heights is just one local neighborhood among many where every homeowner is suffering, no matter how up-to-date they are on their payments. Charles Eggleston pays his mortgage every month, maintains his home and even made improvements. He’s already dropped his price from $109,000 to $99,000 and still can’t find a buyer. Times have changed for the neighborhood where he’s spent the last two decades. Eggleston said, “I’m a child of the 80s and back in the day, Maple Heights was something to look up to.” But Maple Heights now finds itself in the eye of the foreclosure storm. More than 100 homes have gone into foreclosure in just three months, and it’s just the beginning. September 11, 2007
  • FTC Warns Companies On ‘Deceptive’ Mortgage AdsThe Federal Trade Commission has warned more than 200 companies about “potentially deceptive” mortgage advertisements that could give borrowers a false impression of the cost of home loans. The FTC said ads that ran in newspapers and magazines, online and in the mail “may violate federal law” by giving a deceptive picture of mortgage terms. It sent the warning letters to mortgage brokers, lenders and media outlets. “Many mortgage advertisers are making potentially deceptive claims about incredibly low rates and payments, without telling consumers the whole story,” said Lydia Parnes, director of the FTC’s Bureau of Consumer Protection. September 12, 2007
  • Mortgage Applications Rise As Rates TumbleMortgage applications rose for a second week as interest rates on home loans tumbled to their lowest since May, an industry group said Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, rose 5.5% the week ended Sept. 7. Applications were 12.5% above their year-ago level. But the four-week moving average of mortgage applications, which smooths the volatile weekly figures, was down 0.8% to 634.2. September 12, 2007
  • Subprime Contagion Less In Emerging Markets: BIS ChiefFinancial contagion from a credit crunch rooted in the U.S. subprime lending market seems not to be affecting emerging economies as much as crises in the past, the head of the Bank for International Settlements said on Wednesday. Financial markets around the world have been pummeled in recent weeks as the subprime crisis, stemming from U.S. mortgage defaults, hit investor confidence and prompted central banks to pump funds into their banking systems to tide banks over the credit squeeze. September 12, 2007
  • Housing To Push Economy To Edge Of RecessionOngoing weakness in the housing market will push the national economy to the brink of recession, but growth in other areas should put the country back on a slow road to recovery by 2009, according to an economic forecast released Wednesday. The quarterly Anderson Forecast by the University of California at Los Angeles predicts growth in the gross domestic product of just over 1 percent for the fourth quarter of 2007 and first quarter of 2008. September 12, 2007
  • Housing Costs Punish Family BudgetsSydney Lasry, a systems engineer, took a second job three years ago so he could afford to buy a $400,000 home in Severn, Md. His mortgage payment hasn’t risen, but his property taxes have jumped by $1,000 since then, to $3,200 a year, and his home insurance has soared by $500, to $1,100. Now, housing costs are devouring 70% of his gross income. And Lasry, 45, who’s working as much overtime as he can, fears he won’t be able to keep up. “People see me living in this nice house” but when Lasry eats out, “I eat at McDonald’s,” he says. September 12, 2007
  • H&R Block Cuts 575 Jobs In Subprime UnitH&R Block Inc, the largest U.S. tax preparer, on Tuesday said it will eliminate 575 jobs at its Option One Mortgage Corp subprime lending unit, on top of 615 job losses announced on May 15. The largest U.S. tax preparer expects to incur a $19 million pretax restructuring charge in its current fiscal year in connection with the additional cuts. It said Option One expects to complete the expanded restructuring by December 31. September 12, 2007
  • Real Estate Regrets In MexicoThe ripples of the U.S. real estate boom began washing up on the shores of this beach town a few years ago. Californians, feeling flush from the steep run-up in housing values stateside, pulled equity from their primary homes and snapped up vacation properties in northern Baja California as if they were buying $10 lobster dinners. Ground zero was this mid-size community about 20 miles south of Tijuana, where developers sold hundreds of condominiums on spec. Most jacked up their prices as their projects filled, fueling a sense of urgency among U.S. buyers to get in while the getting was good. September 12, 2007
  • Higher Subprime Rates For Blacks, Hispanics Baffling September 13, 2007
  • HUD Report Offers First Assessment Of “Housing First” StrategyA new report commissioned by the U.S. Department of Housing and Urban Development documents and qualifies the effectiveness of Housing First strategies in terms of keeping chronically homeless persons from returning to the streets or addressing the root causes of their homelessness. “Housing First” was developed as a response to help house and serve chronically homeless persons living on the streets and in shelters of local communities across America. It is built on the idea that moving people directly from the streets and shelters into their own permanent housing would save lives and help those living with mental illness, addictions, or other disabilities through the assurance of ongoing housing. September 13, 2007
  • Connecticut Landlords Settle Lead-Based Paint Disclosure CaseThe U.S. Environmental Protection Agency and the U.S. Department of Housing and Urban Development today announced that a Connecticut property management company and several affiliated New Haven owners have agreed to pay a $32,000 fine for failing to inform tenants their apartments may contain lead-based paint. In addition, the landlords agreed to render those units lead safe at a cost of more than $400,000. According to EPA and HUD, Renaissance Management Company, Inc., BHP Associates Limited Partners, GAB Hill Limited Partners, Renaissance Hill LP, and Beechwood Gardens, LP violated the federal Residential Lead-Based Paint Hazard Reduction Act (Residential Lead Paint Act) by failing to inform tenants that their homes may contain potentially dangerous levels of lead. September 13, 2007
  • Paulson Urges Mortgage HelpTreasury Secretary Henry M. Paulson Jr. said yesterday that the turbulence that has hit financial markets will take some time to be resolved, especially in the area of subprime mortgages. Paulson, speaking to officials of some of the country’s biggest financial firms, said the Bush administration was looking for their help in making sure subprime homeowners get assistance in dealing with sharply rising mortgage payments as their initially low adjustable-rate mortgages reset to higher levels. September 13, 2007
  • New Census Data Point To Root Of Slumping Housing MarketSince 1990, homeowners have faced a growing gap between their incomes and the price of their homes, a development that helped create today’s housing slump, an Associated Press analysis of new census data shows. The widening gap in all but a handful of the nation’s 500 largest cities helped make the recent boom in housing prices unsustainable, according to analysts. The rising prices were fueled largely by low interest rates and risky borrowing, rather than increasing incomes. “We had an artificial economy,” said Brad Geisen, founder of fore- closure.com, a Web site that lists foreclosure properties. “There was all this wealth created in real estate, and it wasn’t really created.” September 13, 2007
  • A Home Loan TrapHomeowners whose loan rates are soaring may want to head for the exits. Many of them, though, will find no way out. If they sell their home or refinance, they will face a penalty of thousands of dollars for paying off their loans early. Timm Larson is in just such a predicament. Two years ago, he refinanced his home outside Minneapolis with a loan at a low interest rate that has since risen sharply. The monthly payment is eating up nearly half of their family income of about $45,000 a year. Mr. Larson wants to move into a traditional loan, but can’t see how. He would have to pay the lender a $9,000 exit fee. “We don’t have any money,” Mr. Larson said in a phone interview from his three-bedroom house in St. Francis, Minn. “We are barely making our house payments.” September 13, 2007
  • Housing Takes Bigger Bite of New Yorkers’ Incomes, Census Data ShowsThe burden of housing costs continues to stretch the pocketbooks of New Yorkers, as large percentages of residents see more of their income go to their mortgages and rents, according to an analysis of new census data. Across the city, homeowners in Brooklyn and renters in the Bronx are carrying the heaviest burdens, with many spending half or more of their monthly paychecks on housing. In Brooklyn, 31 percent of homeowners with a mortgage are spending 50 percent or more of their income on housing costs, the highest percentage in any large county in the state. In the Bronx, 32.9 percent of renter households are paying a similar share of their income for their apartments, the highest percentage in the city, according to an analysis of the Census Bureau’s 2006 American Community Survey, which was released to the public yesterday. September 13, 2007
  • City Sets Priorities, But Details Are ScarceMayor Ray Nagin’s recovery office has identified more than 160 neighborhood-level rebuilding projects that officials say should be New Orleans’ top priorities as money begins flowing for capital improvements in a city still wrestling with a largely blighted landscape. The plan, which has not been released publicly and carries a price tag estimated at $1 billion, was obtained by The Times-Picayune in the same draft form in which it was delivered last week to the City Council and on Wednesday to the City Planning Commission. Both Nagin and his hand-picked recovery chief, Ed Blakely, have declined to comment on it. September 13, 2007
  • Lenders Denied Mortgages At Higher rate In ‘06Applicants for home mortgages were turned down for loans at a slightly higher rate in 2006 than the previous year and significant disparities continued to exist between white applicants and minority applicants, the government reported Wednesday. In its annual look at mortgage practices among the nation’s lending institutions, government regulators found the denial rate for all home loans was 29 percent last year, up from 27 percent in 2005. September 13, 2007
  • Former Payday Lender Offers Apology as Vote to Cap Interest Rate NearsStacey Brown said he went to Check ‘n Go on Eighth Street SE in 2001 and borrowed $500 in a payday advance to help him pay some bills. Last week, he finally paid off the loan and all the fees and interest that came with rolling it over. His total in fees and interest: $14,997. Yesterday, Brown received an apology from Cameron Blakely, a former Check ‘n Go manager, on the steps of the John A. Wilson Building during a news conference touting D.C. Council legislation that payday lenders say could put them out of business in the city. September 13, 2007
  • Vacant Houses, Scourge of a Beaten-Down BuffaloIn this city beaten down by decades of factory closings and residential exodus, the razing of thousands of vacant houses is being touted as a sign of progress. Gangs, squatters and teenagers have been burning down hundreds of houses a year, straining the meager resources of the Police and Fire Departments. Some of the properties have been turned into crack dens and places to stash guns and drugs. A few have been booby-trapped or had their floors ripped out by scavengers looking for pipes they can sell to metal dealers. The burned-out and boarded-up buildings, which are visible on nearly every street in east Buffalo, have deterred even the most pioneering investors from moving in. September 13, 2007
  • Hunting For A House In A Hurricane ZoneHurricanes are a terrifying and often devastating act of nature. Nevertheless, hurricane hot zones such as West Palm Beach, Key West, and the North Carolina coastline remain some of the most desirable real estate in the country while other storm-prone areas, including southwest and central Florida, are now glutted with more affordable homes because of falling real estate prices there. But potential homebuyers, though lured by the beauty and warm weather of these coastal areas, may still wonder: Is it really safe to live here? Moreover, is it safe to own property? September 13, 2007
  • Freddie Mac Seeks to Get Mortgages’ PaperworkFreddie Mac has gone to court to protect its interests in a $796.8 million portfolio of home mortgages issued by a financially troubled lender, according to papers filed in U.S. Bankruptcy Court. The McLean mortgage finance company is asking a bankruptcy court in Wilmington, Del., to order the swift transfer of paperwork for 4,547 mortgages to Freddie Mac from American Home Mortgage Investment, a New York company that has filed for bankruptcy protection. September 14, 2007
  • 30-Year Mortgage Rate at 6.21%, Lowest Since MayRates on 30-year mortgages dropped this week to the lowest point in four months, providing some relief for people hoping to refinance their existing mortgages. Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.31% this week, the lowest level since May 17. The rate had been 6.46% last week. All mortgage products surveyed by Freddie Mac showed declines this week. Frank Nothaft, the company’s chief economist, said this should help homeowners hoping to refinance existing adjustable rate loans that are resetting from low introductory “teaser” rates. September 14, 2007
  • Countrywide Stock Surges After Lining Up CreditCountrywide Financial (CFC), the biggest U.S. mortgage company, rose as much as 10% on the New York Stock Exchange Thursday after the company said it has $12 billion in borrowing capacity through new and existing credit lines. The stock, which has lost more than half its value this year, was up $1.38 to $18.00 in afternoon trading after reaching $18.31 earlier Thursday. Countrywide said it had recently lined up the financing through new or existing credit facilities.

    The move came after Countrywide had borrowed $11.5 billion and sold a $2 billion stake to Bank of America in recent weeks so it could keep operating its retail banking and mortgage businesses.     September 14, 2007
  • Mortgage Brokers Group Adopts A Code of EthicsIn the wake of the subprime lending crisis, a state mortgage-broker trade group is taking steps to shore up the profession’s image and separate itself from unethical brokers who contribute to borrowers’ mortgage woes. The Maryland Association of Mortgage Brokers, which represents about 800 of the state’s 10,000 licensed brokers and loan originators, said yesterday that it has adopted a code of ethics and professional standards that members must follow to retain their membership. September 14, 2007
  • Mortgage Brokers Group Ddopts A Code of EthicsIn the wake of the subprime lending crisis, a state mortgage-broker trade group is taking steps to shore up the profession’s image and separate itself from unethical brokers who contribute to borrowers’ mortgage woes. The Maryland Association of Mortgage Brokers, which represents about 800 of the state’s 10,000 licensed brokers and loan originators, said yesterday that it has adopted a code of ethics and professional standards that members must follow to retain their membership. September 14, 2007
  • British Mortgage Lender Offered Emergency LoanBritish financial authorities said today that they had extended an emergency loan to rescue a big mortgage bank, as the effects of a global credit crunch stemming from the crisis in the American subprime lending business spread to one of the world’s most buoyant housing markets. The British government said it had authorized the Bank of England to provide a “liquidity support facility” of unspecified size to Northern Rock, a mortgage lender based in Newcastle, England, that has expanded aggressively in recent years. September 14, 2007
  • City Taking Over Home Demolitions From CorpsTwo years after wind and flood left more than 100,000 homes and commercial buildings in New Orleans in varying states of ruin, about 9,000 properties have met the wrecking ball — and at least 6,000 more may still have to go. The remaining demolitions, most of which will be managed by Mayor Ray Nagin’s administration, are expected to take at least six months, but based on the pace of demolitions to date, the timeline could stretch far longer. With city officials poised to implement a huge rebuilding agenda, a protracted schedule could mean that short-term recovery projects will rise against a backdrop of blight. September 14, 2007
  • Contractors Face Felony Charges of EmbezzlementTwo contractors from Reading were indicted yesterday for allegedly embezzling about $100,000 from clients, abandoning a series of projects, failing to pay subcontractors, and operating without a certificate of registration. A Middlesex County grand jury returned 17 indictments against Peter DeGennaro and 17 against his partner, Charlene Connors. The grand jury also returned two indictments against contractor Donna Wayman of Wilmington for abandoning a project and failing to pay subcontractors. Wayman worked with DeGennaro and Connors on one project. September 14, 2007
  • Permit Numbers PlungeThe number of building permits for new homes in Massachusetts has plummeted by more than 30 percent since July 2005, putting yet more long-term stress on a state economy that experts say desperately needs more housing. A review of U.S. Census statistics by the Herald shows that building permits issued to state contractors for new single-family homes fell by a whopping 36 percent through the first seven months of 2007, compared with the same period in 2005, the peak year for home construction this decade. September 14, 2007
  • Housing Bubble A Taxing ProblemPresident Bush is trying to help beleaguered homeowners, and the Fed has been easing credit to accommodate the financial markets. But this mortgage mess is a growing problem that will be exacerbated by more than two million adjustable-rate mortgages about to reset to higher monthly payments in the year ahead. Unless Congress acts quickly to change tax policy, more surprises will appear next April. If you’re forced to sell your home at a loss — or are foreclosed — the tax consequences could be costly. September 14, 2007
  • Landlord to Pay $110,000 to Settle Bias ClaimsThe owner of West Allis apartment buildings will pay $110,000 to settle claims that property managers discriminated against African-American apartment hunters, telling them units were not available when they actually were and keeping a coded notebook with the race of prospective applicants. The settlement resolves a 2005 federal lawsuit brought by the Metropolitan Milwaukee Fair Housing Council and three African-American testers against the owner and managers of two apartment buildings in West Allis - one at 11208 W. National Ave. and one just down the street at 11322 W. National Ave. September 14, 2007
  • Group Home for Addicts Draws IreMartin County’s efforts to answer residents’ questions about a group home for recovering drug and alcohol addicts in North River Shores on Thursday turned into a three-hour shouting match and a call for a neighborhood war. “We should try to stop this. It’s a real travesty and invasion of our peaceful community,” said Rod Graves, one of more than 100 North River Shores residents at a public meeting who opposed The Next Step Center, a home for recovering addicts on Fork Road. September 14, 2007
  • Fed is Poised to Cut Key RateFor the first time in more than four years, the Federal Reserve appears ready to lower interest rates to prevent a housing meltdown and a painful credit crunch from driving the economy into a recession. A rate cut would affect millions of borrowers, with the intention of getting them to spend and invest more, which would revitalize the economy. September 17, 2007
  • Help! How Can I Head Off A Foreclosure?With millions of Americans facing foreclosures, a number of readers are looking for help to avoid losing their homes. What many may not realize is that lenders are often willing to try to work out an alternative — since it costs them money too. So if you think you’re at risk of losing your home — or already in foreclosure — here are some things you can do to try to save it. September 17, 2007
  • Mortgage Ads Under FTC ScrutinyThe Federal Trade Commission has issued a warning about “potentially deceptive” advertisements for low-cost mortgages, saying consumers could be duped and mortgage companies might be breaking the law. “Many mortgage advertisers are making potentially deceptive claims about incredibly low rates and payments, without telling consumers the whole story,” said Lydia Parnes, director of the FTC’s Bureau of Consumer Protection. The agency sent warning letters to more than 200 mortgage brokers, lenders and media outlets expressing its concerns. September 17, 2007
  • FHASecure: How Much Help?When President Bush announced plans late last month to help borrowers who were struggling to keep up with their adjustable-rate mortgages, local housing advocates and lenders waited eagerly for details of exactly how the initiative would work. Now that the Federal Housing Administration has disclosed those details, the jury is still out. “I think there’s a subset of borrowers this will help,” said Brian J. Chapelle, a partner in Potomac Partners in Washington, a consulting firm to the mortgage industry. “Whether it’s the 240,000 people the Bush administration said it would help, we’ll have to see.” September 17, 2007
  • IRS Has Bad News on Road HomeNow that the Road Home has paid out more than 50,000 grants, many of those recovering homeowners are encountering a new cruel reality: They may have to send up to 35 percent of the federal grant right back to Washington in the form of income taxes. If they claimed a casualty loss for their damaged property as a deduction on their 2005 tax return, they must add the grant to their taxable income in the year it’s received. Or, worse, they may find that their decision to claim a casualty loss — made long ago, in some cases before the federal government sent billions to Louisiana for the Road Home program — will suddenly thrust them into a higher tax bracket, forcing them to pay higher taxes on all of their income for this year. September 17, 2007
  • Selling a Home Without an Agent Comes with Risks, RewardsOn a lark last spring, Ronald Grant decided to “list” his South Pasadena house for sale on the popular real estate valuation website Zillow.com. Zillow estimated his home’s worth at $1.4 million. But Grant, who was planning to sell his home when he retired in two years, decided to have some fun. So he posted a notice on the site saying he would gladly hand over the keys to anyone willing to pay him $1.6 million for his 4,500-square-foot abode. September 17, 2007
  • Real Estate 2.0: NEW SITES ALLOW USERS TO EXCHANGE INFORMATION ABOUT HOUSES, STREETS September 17, 2007
  • Web 2.0 Ventures Attract CapitalInvestment in Web 2.0 ventures is quickly spreading from the Bay Area to elsewhere in the United States and other parts of the globe, a study being released today shows. In the United States, New England and Southern California appear to be picking up steam - New England surpassed Silicon Valley in financial volume for the first time, with $102 million invested in 10 Web 2.0 deals. September 17, 2007
  • Sunbelt City in Grasp of Housing Undertowo understand how the housing bust may ripple through the broader American economy, look beyond the countless for-sale signs that dot this middle-class city. Instead, stop by Boater’s Landing, where salespeople sit idle, hoping someone will once again want to buy a boat. Or visit the women answering phones at the local United Way, which is dealing with a flood of aid requests from the unemployed, whose numbers have nearly doubled in a year. Or talk to the Shevlins, a real-estate agent and a carpenter, whose combined incomes dropped from $350,000 to less than $60,000 in two years. September 17, 2007
  • Nebraska Sues Mortgage Broker for Predatory LendingThe state of Nebraska has sued Advantage Mortgage Service, intending to revoke its license for what the state says were predatory lending practices. On its website, the mortgage broker says it serves customers in Nebraska, Iowa, Colorado, South Dakota, Minnesota and Florida and has offices in Omaha and Lincoln in Nebraska and in Council Bluffs, Iowa. A news release from the state Attorney General’s Office and Department of Banking and Finance said the actions were being taken against Advantage Mortgage Service and its owners. Advantage Mortgage says it offers loans “for home purchases, refinancing, home equity allocation, debt consolidation and much more.” State investigators say Advantage Mortgage falsified closing documents, forged borrowers’ signatures and charged borrowers hidden and excessive fees. September 17, 2007
  • Foreclosure Act: A Measure of ProtectionHomeowners facing foreclosure have enough trouble, but often the mailman brings more, in the form of ads for rescue schemes and scams. “The worst case I heard about was an elderly couple in northwest Denver,” says real estate agent Dave O’Brien, who does business in that part of town. The couple received a flier offering to “buy homes for cash.” They met with an investor who persuaded them to sell their home for $60,000, which was approximately the balance due on the mortgage. The new owner did repairs worth $40,000 and then resold the property for more than $300,000. Ending such “equity-stripping” abuses was one aim of Senate Bill 71, also known as the Colorado Foreclosure Protection Act as it made its way through the General Assembly in 2006. It became law in January. The practice of equity stripping is now illegal, under the act. September 17, 2007
  • Graystone Forum Set for TuesdayHow Chicago is working with residents to save and restore historic graystone homes will be explored during a forum at 5 p.m. Tuesday at the American Planning Association’s conference center, 122 S. Michigan. The event is free and open to the public. Charles Leeks, Neighborhood Director for the Neighborhood Housing Services of Chicago’s North Lawndale office, will discuss how the Historic Graystone Initiative assists homeowners with financial and technical resources to preserve, restore and modernize historic graystone residences. September 17, 2007
  • Pay Mortgage in Full or Monthly?Q Washington: My mom retired, sold her house and bought a condo. She’s debating whether to pay for it in full or pay the mortgage monthly to get the tax benefits. Her income will be interest from investments, Social Security and a pension, for about $60,000 a year. The average return on her investments is about 5 percent, and the interest on her mortgage is 6 percent. Wouldn’t it be better to not have any interest payment rather than getting a bit of it back April 15? September 17, 2007
  • Rise in Housing Prices Far Outpaced IncomeSince 1990, homeowners have faced a growing gap between their incomes and the price of their homes, according to an Associated Press analysis of recently released census data. The widening gap in all but a handful of the nation’s 500 largest cities helped make the recent boom in housing prices unsustainable, according to analysts. The rising prices were fueled largely by low interest rates and risky borrowing, rather than by increasing incomes. September 17, 2007
  • Hispanic Real Estate Professionals Take Action to Curb Predatory Lending Practices Against Latinos, Approve Code of TrustThe National Association of Hispanic Real Estate Professionals (NAHREP) today announced its new Code of Trust — a set of ethical principles by which all members are required to conduct business. En Confianza: The NAHREP Code of Trust is part of NAHREP’s broader strategy to ensure that all borrowers, including Latinos, are served to the highest industry standards. September 17, 2007
  • Another Big Test for Delta Financial of WoodburyEight years ago, Delta Financial Corp. suffered through what many thought would be its biggest test. Accused by state and federal officials of predatory lending in 1999, the Woodbury mortgage banker came to a $12-million settlement, promised to institute best practices and never admitted wrongdoing. On the larger stage, Delta faced a downturn in the subprime mortgage marketplace and concerns on Wall Street. September 17, 2007
  • Australia: Mortgage Broker Regulation a MustA federal parliamentary committee is poised to deliver its findings on how financial institutions are dealing with mortgage stress and customers in financial difficulty, but an independent review examining the 26 public submissions is urging the committee not to begin a ‘blame game’ against the mortgage industry. Advisory firm Deloitte believes the problem is not poor lending practices, but better regulation and improved clarity about some of the sophisticated mortgage products available to customers. September 17, 2007
  • Stop Adding Tax Penalty to Mortgage ForeclosureIf there’s one thing government does well, it is tax its residents. No stone is left unturned and no situation is off limits, even when it comes to the loss of a home. Going through foreclosure is stressful enough on its own. But the federal government has figured out a way to make it worse. How so? If your home is sold or refinanced by the bank or mortgage company for less than the amount a homeowner owed at the time of foreclosure, the difference is considered income and subject to taxation. September 17, 2007
  • U.S. Home Foreclosures Soar in AugustThe number of foreclosure filings reported in the U.S. last month more than doubled versus August 2006 and jumped 36 percent from July, a trend that signals many homeowners are increasingly unable to make timely payments on their mortgages or sell their homes amid a national housing slump. A total of 243,947 foreclosure filings were reported in August, up 115 percent from 113,300 in the same month a year ago, Irvine, Calif.-based RealtyTrac Inc. said Tuesday. There were 179,599 foreclosure filings reported in July. September 18, 2007
  • Debt Market Looks to Fed to Restore ConfidenceLou Gervolino, a business executive from the San Francisco area, watched mortgage rates climb last month when he looked to refinance a jumbo home loan. In London, Cheyne Capital’s portfolio managers were forced to unwind a big investment fund. And consumers in the United States faced the prospect of higher prices as corporate borrowing costs for everything from cars to computers continued to rise. The common thread in all three was asset-backed commercial paper — the market for short-term loans backed by mortgages, credit card debt and business loans that had all but come to a standstill, helping to create a credit squeeze on Wall Street. September 18, 2007
  • New Residents Are Having Second Thoughts About the NeighborhoodLooking for a quiet neighborhood in which to retire, Marilyn Caldwell said she thought Anchorage Lane here was perfect. She recalls that as she walked down the tree-lined waterfront street with her real estate agent last year, she asked, “Is there any reason that you think this would not be a good place to move?” “Absolutely not,” the agent replied. But since they spoke, the state decided to open a group home for troubled male teenagers here this fall, and Ms. Caldwell said she and her husband, John, were beginning to think they did the wrong thing by moving here from Clinton, 10 miles away. September 18, 2007
  • Assessment Appeals Go SmoothlyNew Orleans property owners disputing their new tax assessments began showing up at the Superdome Monday for meetings with a private firm tapped to handle reams of appeals for the City Council. The process went much more smoothly than taxpayers’ previous chance for appeal. During two weeks in August, hundreds waited in lines for hours at City Hall, where many were turned away without a resolution or face-to-face meeting with their assessors. September 18, 2007
  • The Shock Doctrine: Naomi Klein on the Rise of Disaster CapitalismThe Asian tsunami and Hurricane Katrina. Award-winning investigative journalist Naomi Klein brings together all of these world-changing events in her new book, “The Shock Doctrine: The Rise of Disaster Capitalism.” In her first national broadcast interview since the publication of “The Shock Doctrine.” She argues that “Some of the most infamous human rights violations of the past thirty-five years, which have tended to be viewed as sadistic acts carried out by anti-democratic regimes, were in fact either committed with the deliberate intent of terrorizing the public or actively harnessed to prepare the ground for the introduction of radical free-market reforms.” September 18, 2007
  • Lloyd Davis, 79, King Center’s First Leader & HUD’s 1st Voluntary Fair Housing ProgramLloyd Davis died of cancer Monday in Chevy Chase, Md. He was 79. Mr. Davis’ professional career was spent working for the Department of Housing and Urban Development and the King Center. At HUD he was credited with establishing the department’s first voluntary fair housing program and the first minority business enterprise programs. He rose to senior adviser to the assistant secretary for Fair Housing and Equal Opportunity, his family said. But in 1979, he came to Atlanta to serve as the King Center’s first executive vice president and chief operating officer. September 18, 2007
  • In Credit Crunch, Location MattersYou’ve heard about how the credit crunch has made it harder for many types of buyers to afford a home or qualify for a mortgage. First-time buyers. Those moving up to larger homes. Buyers with marred credit or little cash for down payments. Those in pricey areas who need “jumbo” loans exceeding $417,000. “If you’re going to get a loan today, in comparison to six months ago, you’ll have to bring more money down, better documentation and better credit characteristics to get the same terms,” says Doug Duncan, chief economist of the Mortgage Bankers Association. September 18, 2007
  • Net Worth: Interest-rate cut won’t help all caught in credit crunchThey say the best cure for a hangover is a little hair of the dog that bit you, meaning a nip of whatever you were drinking the night before. But the same treatment is not likely to alleviate the housing market’s pounding headache. The Federal Reserve has been accused of creating or at least abetting a mortgage and housing bubble by keeping interest rates too low for too long. Giddy from cheap financing, many people bought homes they couldn’t possibly afford. Others loaned money to such people with no money down and no proof of income. September 18, 2007
  • Latinos Ask Regulators to Curb Predatory LendingMaybe Watsonville private investigator Emilio Martinez has a crystal ball. Seven months ago, he predicted a foreclosure epidemic would sweep Santa Cruz County. Since then, foreclosure sales in the tri-county area — Santa Cruz, Monterey and San Benito counties — have spiked to 786, a tenfold increase compared to a year ago. According to the Santa Cruz Record, the tally in Santa Cruz County is 147. In Monterey, it’s 514. San Benito, 125. Martinez said a steady stream of people have come to his spartan office in a shopping center on East Lake Avenue unable to make their mortgage payments and asking, in Spanish, for his help. September 18, 2007
  • More Help Advocated to Combat ForeclosuresWhen Sue Simpkins tells the story of how she almost lost the family home, her anger isn’t directed at the catastrophic stroke that afflicted her father. Instead, her ire is aimed squarely at “the predatory lender profiting off our misfortune.” Ms. Simpkins and others who have escaped the threat of foreclosure told their stories yesterday to U.S. Sen. Sherrod Brown (D., Ohio) in support of efforts to better fund nonprofit agencies that combat predatory lending practices. “It’s important that we begin to fix this,” Senator Brown said of the tidal wave of foreclosures currently sweeping the nation. September 18, 2007
  • IRS Opens Foreclosure Web SiteThe Internal Revenue Service said Monday it has added a new section to its Web site to answer tax questions for those losing their homes due to foreclosures. The new section on IRS.gov includes a worksheet to help homeowners determine whether they are eligible for any foreclosure-related tax relief. For those who find they owe additional tax, it includes a form for requesting a payment agreement with the IRS. The tax agency noted that if the debt wiped out through foreclosure exceeds the value of the property, the difference is normally taxable income. But a special rule also allows insolvent borrowers to offset that income to the extent their liabilities exceed their assets. September 18, 2007
  • Fed Cuts Key Rate More Than ExpectedThe Federal Reserve cut a key interest rate yesterday in an aggressive attempt to keep turmoil in financial markets from damaging the overall U.S. economy. The central bank’s policymaking committee cut the federal funds rate, which determines what banks pay to borrow money from each other overnight, by half a percentage point, to 4.75 percent. The rate cut, the first in four years, will eventually lead to lower borrowing costs for consumers and businesses, making it cheaper to take out a car loan or home mortgage or to invest in a business. September 19, 2007
  • House Votes Mortgage HelpThe House approved a plan yesterday to expand federal backing of mortgages in hopes of helping tens of thousands of struggling homeowners avoid foreclosure. Despite some White House objections, the Bush administration and House Democrats took conciliatory stances that may allow them to resolve their differences. The bill passed the House 348-72. Republicans mostly were swept along in the vote for the bill, whose overall thrust they endorsed in the face of the mortgage crisis. September 19, 2007
  • Bold Cut Means Savings for ConsumersThe Federal Reserve’s unanimous decision to slash a key interest rate Tuesday is a dramatic statement that the central bank will do whatever it takes to prevent turmoil in the financial markets and a steep downturn in the housing sector from pulling the country into recession. By cutting rates so sharply, the Fed indicated it hopes to put a floor under the plunging housing market, steady business hiring and investment, and keep the economy growing as it has for the last six years. A less tangible, but equally important, goal is to restore confidence in the financial markets. Investors got at least a short-term boost after the Fed’s announcement, as the stock market posted its biggest one-day point rally since 2002. September 19, 2007
  • Will the Fed Reverse the Housing Slump?The Federal Reserve sent the stock market soaring yesterday. So can it stop the decline in home prices, too? Don’t count on it. From the late 1960s until 2000, the price of the typical American home and the income of the typical family moved almost in lock step. House prices rose a bit more quickly than incomes during the occasional real estate boom, but would always settle down again. In 2000, the median home cost about $130,000, roughly three times the typical household income — almost precisely the ratio that had held since the ’60s. September 19, 2007
  • HUD Announces 2006 Affordable Housing Goals Performance Results for Fannie Mae and Freddie MacThe Department of Housing and Urban Development today announced its official 2006 housing goal and subgoal performance figures for Fannie Mae and Freddie Mac, two housing government-sponsored enterprises or GSEs. Both GSEs met or exceeded the housing goals, the special affordable multifamily subgoal, and home purchase subgoals for 2006. September 19, 2007
  • Road Home Claims Major Strides MadeIn a new set of public reports, the Road Home contractor says the program has resolved the vast majority of 19,000 applicant disputes that once clogged the state’s homeowner aid effort, including almost all of the older issues that had dragged on for several months. Three weeks ago, contractor ICF International began reporting details from the Road Home “resolution” program, just as it appeared to be on the verge of eliminating the mountains of lingering applicant disputes. September 19, 2007
  • Countrywide ‘Out of The Subprime Business’Angelo Mozilo, the CEO of Countrywide Financial (CFC), outlined a new strategy Tuesday that would transform the nation’s largest mortgage lender from an aggressive funding source for borrowers with tarnished credit into a more conservative thrift, dependent on savings deposits instead of Wall Street investors. Countrywide was the third-biggest lender to subprime borrowers last year, after HSBC and New Century Financial, according to Home Equity News. And because so many lenders, including New Century, have bailed out of the market, Countrywide jumped to No. 1 for the first half of the year. But Countrywide’s own troubles have taken their toll. “We are out of the subprime business,” Mozilo told investors at a conference in San Francisco. Nearly 25% of Countrywide’s subprime borrowers were behind on their loan payments at the end of June. September 19, 2007
  • With Economy Volatile, Financial Firms Start to Stress StabilityIn recent years, LendingTree, the mortgage Web site operator, prospered with upbeat advertising that confidently told potential homeowners, “When banks compete, you win.” But last week, that campaign vanished, replaced with sober, straightforward ads that seek to educate consumers about “smart borrowing.” LendingTree is not the only financial marketer abruptly shifting gears. Weeks after problems with subprime mortgages began roiling the industry, advertisers are offering reassurances about their stability and ability to ride out the storm, whether a short-term dislocation or a serious threat. September 19, 2007
  • Bay Area Foreclosure Activity SkyrocketsA surge in foreclosure filings in August might signal a new wave of people losing their homes as more mortgages reset to unaffordable rates, according to a report released Tuesday. In the Bay Area, the number of houses scheduled to be sold on the courthouse steps quadrupled compared with a year ago, according to RealtyTrac, an Irvine company that sells foreclosure listings. In the nine-county region, 1,280 households were notified they were going on the block compared with 301 last August. By far the highest incidence of auction notices was in Contra Costa County, with 699 notices. September 19, 2007
  • City Planning a Top Priority, Nutter SaysDemocratic mayoral nominee Michael Nutter offered a comprehensive critique of the city’s approach to development yesterday and said that, if elected, he would make zoning and planning a priority of his administration. Nutter told an audience of developers and builders that Philadelphia, once a national leader in urban planning, had become a city where projects were approved or rejected haphazardly and where knowing “the right people” was paramount. “It’s all about the deal. It’s all about being connected in a way that allows you to get done what you need to get done,” said Nutter, who is heavily favored over GOP challenger Al Taubenberger. September 19, 2007
  • Short sale or foreclosure?Dear Bankruptcy Adviser,To avoid foreclosure, my house is up for a short sale. I am currently unable to make the payments on my house and I want to apply for Chapter 13. What kind of time do I have? September 19, 2007
  • Homeowners Continue to StumbleThe number of foreclosure filings reported in the U.S. last month more than doubled from last August and jumped 36 percent from July. The trend means that homeowners are increasingly unable to make payments on their mortgages or sell their homes amid a national housing slump, an online data company reported Tuesday. A total of 243,947 foreclosure filings were reported in August, up 115 percent from 113,300 in the same month a year ago, Irvine-based RealtyTrac Inc. said Tuesday. There were 179,599 foreclosure filings reported in July. September 19, 2007
  • The Loan That Keeps On TakingThe Torralba family’s taste of the American dream began to sour in May 2006, two months after they bought a modest home at the southern end of Silicon Valley, when they received notice from a man who claimed that they owed him money. Without realizing it, the Torralbas had taken a $74,000 “down payment assistance” loan from the man, Pablo Curiel, who now wanted them to pay $679 a month. The Torralbas are one of nine families suing Mr. Curiel and the brokers and real estate agents who arranged mortgages for them. The suit, filed in federal district court here, claims that Mr. Curiel and his associates did not properly disclose and translate the terms of the loans for the families, most of whom spoke limited English, in violation of federal and state laws. They also claim that the defendants sought out Hispanics, violating a federal housing law. September 25, 2007
  • Two Years After Rita, Town Still Lives In TrailersThis Louisiana town may have dried out and cleaned up since getting flattened by Hurricane Rita, but its recovery is moving in slow motion: Nearly everyone still lives in temporary housing. The post office operates out of a trailer. The town’s only bank works out of a trailer. Darlene Dyson sells shrimp from a trailer, then picks up her 7-year-old son and takes him to their home — a trailer. September 26, 2007
  • Homes Post Steepest Price Drop In 16 YearsSales of existing homes, depressed by turmoil in credit markets, fell for a sixth straight month in August, pushing activity to the lowest point in five years. A separate report showed that t he decline in U.S. home prices accelerated nationwide in July, posting the steepest drop in 16 years. Home prices have fallen by more every month since the beginning of the year, according to the S&P/Case-Shiller home price index released Tuesday. September 25, 2007
  • Top 10 Mortgage Blunders“Kickback: Confessions of a Mortgage Salesman, How to Save $1,000s on Your Mortgage” (Insight Publishing, $19.95), says Janusz, is his penance for taking a cut of what the Center for Responsible Lending estimates is at least $9.1 billion in predatory mortgage lending costs Americans pay each year. Predatory lending practices are largely an outgrowth of the subprime residential mortgage sector, but the practices are not limited to the subprime market. September 25, 2007
  • Housing Likely to Continue to FlailThe end of the real estate recession seems nowhere in sight, in light of a slew of bleak news Tuesday of falling sales and prices, a severe decline in construction and deep losses and layoffs at one of the nation’s largest builders. Sales of existing homes fell last month to their lowest point in five years, the National Association of Realtors says. The NAR says it expects more dismal figures for September as the housing market reels from the crisis in the mortgage industry. September 26, 2007
  • American Home Mortgage Faces InquiryAmerican Home Mortgage Investment Corp. bounced property tax checks for some Maryland homeowners, local and state officials said Monday, and they have demanded an explanation from the bankrupt mortgage lender and servicer. The Maryland Commissioner of Financial Regulation filed an inquiry with American Home Mortgage on Friday. Melville, N.Y.-based American Home Mortgage has five days to respond to the letter, said Joseph Rooney, the deputy commissioner for Maryland’s financial regulator. September 26, 2007
  • Tenants Struggle in ‘Emergency’For more than 48 hours, Helen Lawrence, who is a frail 83 and a longtime diabetic, had no running water in her Northwest Baltimore apartment. The worst problem, she said yesterday, was the toilet, which she had not been able to flush. “That commode is unhealthy,” Lawrence said, a trace of her native North Carolina clear in her voice. “I haven’t even been able to wash my hands. I just can’t go through this. To me, these people don’t care whether we have water or not.” Lawrence was referring to the owners and manager of the Oxford House apartment building at 6810 Park Heights Ave., where plumbers had shut off the water early Sunday while they tried to repair leaks in pipes under the five-story building’s ground floor. September 26, 2007
  • Towns Rethink Laws Against Illegal ImmigrantsA little more than a year ago, the Township Committee in this faded factory town became the first municipality in New Jersey to enact legislation penalizing anyone who employed or rented to an illegal immigrant. Within months, hundreds, if not thousands, of recent immigrants from Brazil and other Latin American countries had fled. The noise, crowding and traffic that had accompanied their arrival over the past decade abated. The law had worked. Perhaps, some said, too well. September 26, 2007
  • Road Home Has Money to Pay Grants Expected to Be Issued This YearThe Road Home program has enough money to pay the 90,000 grants it’s obligated to complete by the end of the year, state officials testified before a recovery housing committee Tuesday. The Louisiana Recovery Authority’s Housing Task Force, with its newest citizen advocate members leading the way, grilled officials about the shortfall, a series of legislative audit reports on the distribution of grant money and the thousands of unclear and unresolved disputes between homeowners and Road Home administrators. September 26, 2007
  • Residents React to City Park PlanAn attentive crowd of more than 200 people applauded warmly Tuesday night after each of three presentations on proposals to develop a children’s museum, a television studio and a state-of-the-art golf complex on the grounds of New Orleans’ City Park. But when it came time for those in attendance to comment on the proposals, words of support were few and far between. “There’s no shortage of empty real estate out there,” said David Muth, referring to the vast swaths of property in the city left vacant by Hurricane Katrina’s floodwaters. “We don’t need to turn this park into a highly developed, money-making operation.” September 26, 2007
  • A Volatile Market for Shore PropertyThe word that best describes the real estate market at the Jersey Shore over the last 20 months is volatile. Sales dropped by more than a third in 2006 from 2005 in Atlantic, Cape May and Ocean Counties, and that decline continues overall. But median prices have yet to follow suit. (The median is the middle value: Half the houses sold for more, half for less). In some municipalities sales volume and median prices rose, as towns farther from the water grow because of the opening of active-adult (over 55) housing developments. September 26, 2007
  • Affordable Housing As A Second HomeOnce, if you owned a free-market home in Telluride, Mountain Village or Ophir, you were out of luck if you wanted to buy a cheaper, government-subsidized home. To qualify for Telluride’s affordable housing, you had to first sell the market-rate property. No more. Under new affordable-housing rules, homeowners with their own private house or condo can now qualify for deed-restricted housing in Telluride. The change was one of many tweaks to Telluride’s affordable-housing guidelines passed last week by a unanimous town council. But some say opening the door to free-market owners corrupts the program’s whole raison d’etre, and one town council member says he regrets voting for the changes. September 26, 2007
  • Foreclosure Assistance Announced in BuffaloMayor Byron Brown and Assessment and Taxation Commissioner Martin Kennedy Tuesday announce assistance for any city residents who are facing foreclosure at the city auction scheduled on October 22, 23, and 24, 2007. The City of Buffalo encourages anyone facing foreclosure to have an attorney assist them in this process. September 26, 2007
  • Foreclosure Talks Hit South CityIn 2004, South San Francisco resident Esthela Baldovinos paid just $2,300 a month for her house. Today, the payments ballooned to $7,500 and will reach $8,200 in November. Baldovinos entered into an adjustable rate mortgage not realizing how high the costs could get. Now she and many like her are asking local entities to pass foreclosure moratoriums. The South San Francisco City Council is considering such a voluntary measure, but the resolution is non-binding. “I am delinquent on my mortgage because I was given an adjustable rate mortgage. I started out paying 6.5 percent. Now my interest rate is over 12 percent and I can’t afford the payments,” Baldovinos said. September 26, 2007
  • Group Says Richmond Area Lacking in Affordable HousingThink of walking into a grocery store where your only choices are steak and champagne. There’s no hamburger or beer. “It’s all high-end with little for the rest of us,” said Frances Stanley, research analyst for the Virginia Local Initiatives Support Corp., a housing advocacy group. Stanley, who spoke yesterday at a symposium on housing and growth, wasn’t really talking about food. She was referring to the lack of good, decent affordable housing in the Richmond area. Hundreds of government and business leaders attended the meeting at the Virginia Historical Society. The focus was a 48-page in-depth report, “Connections and Choices: Affordable Housing and Smarter Growth in the Greater Richmond Area,” co-authored by Stanley. September 26, 2007
  • Affordable Housing at YMCA Site On Agenda in Oak ParkIf the West Cook YMCA building in Oak Park becomes affordable housing when the group moves in a few years, the current single-room occupancy units in which men have no kitchen and share a bathroom would disappear, replaced by efficiency apartments with small kitchens and a bathroom.That’s according to a new housing feasibility study by West Cook Supportive Housing, which includes the village, Catholic Charities and the YMCA. The study also concludes that such a model would be possible if the building were five stories tall and had about 127 units, but current zoning allows only four stories. Also, the YMCA’s other nearby property would have to be developed with high-end market-rate condominiums to make it financially viable for a developer, according to the study, the topic of a community meeting set for 7 p.m. Wednesday. September 26, 2007
  • Foreclosure Epidemic Hits Summit County With A FuryForeclosures in Summit County have risen more than 600 percent since 1995. More than half of all homes sold in Akron this year have been sold by banks at a fraction of their valuation. The news comes from a report from a committee charged by Akron City Council to study predatory lending. In the end, the committee blames the bleak numbers on the foreclosure scandal striking the housing market nationwide. Foreclosures, the committee warns, affect all homeowners, wealthy and poor, who as a result of the filings will see vacant homes and decreased property values in their neighborhood. The findings didn’t surprise committee chairwoman Lolita Adair, an Akron real estate agent and housing advocate for 43 years. She had been warning others of the looming mortgage dangers since the late 1990s. September 26, 2007
  • Countrywide Sees Modifying 25,000 Mortgages in ‘07Countrywide Financial Corp (CFC.N: Quote, Profile, Research), the largest U.S. mortgage lender, said on Monday it expects to modify terms on nearly 25,000 home loans this year to help people avoid foreclosures. The company said it has already modified more than 17,000 home loans this year, and provided assistance on about 35,000 mortgages, including through repayment plans, postponements of payments and refinancings. Modifying loans can help Countrywide limit foreclosure actions, which can be costly. September 26, 2007
  • Opposing Sides in Antioch Housing Debate March on City Hall September 26, 2007