The first region to crumble under the onslaught of the sub-prime fiasco was South Florida. It came to be identified as the earthquake’s epicentre. It left behind a trail of woes – rubble and dust. The housing bust resulted in downward spiralling of property value and joblessness. Continuing foreclosures further mired the situation. But amidst this devastation the vultures are partying.
Vultures have a very vital part to play in the scheme of Nature. That is why Jeff Water of Giving Tree Development in Fort Lauderdale calls himself a ‘White Angel.’ At deeply discounted prices he started purchasing notes and then lowering the monthly mortgage amounts of the borrowers to help them stay in their homes.
But Peter Zalweski running Condo Vultures in Bal Harbor of Florida has no conscience pricks for making gains on the bad luck of others. He is snapping up bargains and making fast bucks. He admits that although the work is not noble there is no doubt that it is profitable.
The opportunities that have surfaced since the biggest meltdown in the housing sector in Florida will continue for about another two years. New foreclosures are continuing to choke the courts of Florida. Jack McCabe is a real estate expert. He said, “Those who never came to grips with the historic bust are improving their golf games or catching a lot of fish. Those who had the foresight to shift gears for the tumultuous marketplace have found opportunities to start and grow businesses. Some are going to make fortunes.”
Zalewski was formerly a business journalist. He founded his real estate firm in 2006 – a couple of months prior to the crash that he had foreseen would come. Over the last three years he has employed 36 operators to keep pace with the rising demand from investors ready with cash who are hunting for bargains. The name of his firm, Condo Vultures, caught the attention of film producer Michael Moore. Zalewski is shown in the documentary film ‘Capitalism: A Love Story’. Zalewski is seen in the film surrounded by houses with foreclosure signs. He sits in a swank office in a well tailored suit.
Waters founded Giving Tree Development in 2008 out of sheer necessity. He was one of the casualties of Bear Stearns. He soon discovered the possibilities in buying troubled properties one at a time. An investor then buys a note and the home owner gets a knock on the door bearing good news about change of servicer and offer of modification.
A casual look around will show that foreclosures are one of the prime reasons for increasing homelessness in USA today. The other reasons are loss of jobs, mental ailment, addiction to drugs or alcohol, divorce, violence at home, medical emergencies and natural calamities.
According to New York Times, 10% of all new entrants to homeless shelters across the country have come hounded out by foreclosures. In the Midwest the number is worse – 15%. Each person has a sad tale to tell that will fill up the pages of a novel.
Sheri West of Cleveland had once been the owner of a shelter but now she is running from shelter to shelter herself when her husband deserted her with a pile of credit card debts. The state then stopped financing her stay in the shelter. Without a roof she started roughing it out in her car. The irony is that the once proud West full of self-respect has to ask for help to keep surviving. It is the American style of independence that is now edging her on. It can give the push but it can also drag one down. Obsessed with the icon that is America, the poor are being blamed for everything negative that is happening. It is West and many like her who have made a mess of their lives.
But somewhere there is a silver lining in the sky. There are an increasing number of people like West requiring social services. The general tendency has been to think of them as being indolent and lazy. But now that attitude is changing to empathy. It is our individual choices that land us up on the bed we are in. It is the same with larger societal issues. Like the ants in the famed fable of Aesop, America has been storing up for harsh winter and not being lazy like the grasshopper. But there are other ways of dying apart from starving.
A staggering number of former house owners are now homeless thanks to foreclosure. It means more people are beginning to know the agony of hitting the rock bottom. With so many prostrate the others too are learning a lesson about why this has happened and what can be done to prevent it. The nation as a whole will have to learn to stand up again instead of placing a handkerchief on the nose at the many down there and blaming them at what has overtaken the whole country with rippling effects across the globe.
An interesting effect of the reduced prices of the foreclosure listings has been noticed recently. The restoration work going on at Springfield, the historic place in Jacksonville has to a great extent benefited from this, according to the report from the Council of Revitalization and Preservation in Springfield.
It has been explained by the officials of the Council that the steady increase in the number of the lowered rate of foreclosed properties has made it affordable for the people to buy the properties. This has increased the sales and the proceeds are being used for the renovation of the historical buildings of this area.
The Springfield has a rather old history. Founded in the year 1869 the place is known for its eighteen hundred old buildings of great historic importance. All of these are being restored to their former glory.
Due to its historical significance this place has been pretty expensive. Buying property here is not easy. The dropped prices of the houses from four million to nearly just two millions have given the people the power to purchase properties here.
The total number of foreclosed properties in Jacksonville in the first half of this year crossed 13500, which means that every forty three houses one property was foreclosed. When compared to the latter half of last year, a rise, in the number of foreclosures by twenty five percent, is noticed. Since the beginning of last year the rise has been by fifty nine percent.
It is estimated that counting the different areas including Paxon, the southern Trout River area and the lower Jacksonville the foreclosed houses were nearly sixty eight percent of the total number of houses sold.
The foreclosure climate has caused a sharp rise in homeless persons but the number of public houses providing shelter has decreased. The state government is being compelled to fall back on housing plans due to acute dearth of funds.
The recession is triggering unemployment while foreclosures continue to run apace. Meanwhile the number of families and individuals in need of [...] Continue Reading…
Gusty foreclosure winds are changing the economic climate of Florida. It is well known that the economy of the state had been centred on tourism, agriculture and also construction. But now it is being driven largely by global competition, science and engineering. There is a stronger identity with the place. This was the general opinion of a meeting of [...] Continue Reading…
A survey shows that most of the pundits feel that the foreclosure fueled recession is over. Over 80% of the economists hold this view. They say that expansion has already started. But all agree that the pace of recovery will e slow as unemployment and huge federal debts continue to drag it down.
This unanimous view was released by a [...] Continue Reading…
Since the time of the crash the industry watchers and experts have been giving out warnings about a second flood of foreclosures. But now they are reviewing their predictions.
Jim Summers of Re/MAX Golden Empire said, “Like everyone else, I’ve been waiting, but we’re not seeing the big influx that was expected. At this point, I wouldn’t bank on anything.” [...] Continue Reading…
With the passage of time since the bursting forth of the foreclosure crisis it seems evident that one of the prime reasons behind it has been lack of education among ordinary Americans. It made it easy for predatory lenders to prey on the gullible.
The story of the economic success of America has always been linked with education. The 19th [...] Continue Reading…
The US real estate sector is in the grip of a crisis. With unemployment reigning high people are faltering on mortgage payments. Hence foreclosures are at an all-time high.
Now the foreclosed homes are being put back on to the market for resale. They are being grabbed by first-time investors and genuine home buyers are finding themselves being edged [...] Continue Reading…
An oversight panel pulled up the government sharply on Friday 9th October for failing foreclosure prevention programme. It was pointed out that this failure would make millions open to foreclosure risk. The Congress Oversight Panel acting as a watchdog made its debut in 2008 to keep a watch on the flow of bailout funds. In a polite but firm [...] Continue Reading…
