Till July tax budgets in Clermont County have not been affected by foreclosures. However things might change in the near future said the auditor of Clermont County, Linda Fraley. She reiterated that no township administration, school district, village or library can complain that foreclosures have affected their funds.

During the first part of 2008 the staff in the office of the auditor started facing many questions about how foreclosures would be affecting public budgets.

The chief deputy auditor Chuck Tilbury said that the staff was not fully informed of the situation due to lack of sufficient information. He took up the matter and set into motion certain steps to find out matters in this context.

Data was collected from the office of the recorder and arranged in two groups – properties in foreclosure and properties up for sheriff’s auction.

Those in foreclosure had the opportunity to negotiate with the banks or lenders so as to be able to stay in their houses or they could talk about sale. The second group did not have the chance to retain their houses. The sheriff’s sale sometimes took a year to happen after the start of the foreclosure process. Some of the units have against them more than one foreclosure suit.

In Clermont County there were 812 foreclosures in 2005. In 2008 it went up to 1,288. In 2005 there were 371 foreclosed houses sent up for auction. In 2008 it shot up to 566. There was 58.62% increase in foreclosures from 2005 to 2008. During the same time the increase in sheriff’s sale went up by 52.56%.

The statistics was later separated as per townships, villages, cities and school districts. The most number of foreclosures were noted in townships. Out of 566 sent up for auction, 482 came from the townships. The most populated townships like Union and Miami had the maximum number of foreclosure concentration. Amelia had a good number of foreclosures but mainly in the recent sub-divisions.

Tilbury said, “For us to have 566 foreclosures go to sheriff’s sale is a big number.” It calculates to 1% of the single family homes numbering 56,000 that there are in the county.

Previously foreclosures did not determine the value of real estate. But with the staggering increase in numbers that is no longer the case. The numbers are depressing the market. At the sheriff’s sale generally the price asked for is below the appraised value.

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Everyone likes to have a good credit and avoid foreclosures. But the prevailing economic condition does not seem to be good enough. There is unemployment everywhere and people are losing out their jobs and are not able to meet their mortgage payments and hence are on the brink of losing their home.

The rate of foreclosures is growing immensely and one needs to be very careful to prevent foreclosures and avoid a bad credit.

Foreclosure seems to badly affect one’s credit rating. A bad credit rating simply means that “You are not responsible and you don’t care to make your payments or bills on time”. It shows that you will give up anytime when you don’t do well and lenders will never be interested in lending such a person.

So, it is important to avoid a foreclosure and not to ruin your credit.

Here are some tips to help to avoid a foreclosure and thereby a bad credit:

- Contact your banker or lender in the first hand to avoid any foreclosures. Your lender will never like to take your home. Instead, he expects only complete payments from you.

- Seek for refinancing options to help you with your current situation or make your current loan affordable by reworking the mortgage payment.

- Seek for a legal assistance. They could tip you on some valuable legal points or even help you through their legal funding services.

- Sit for counseling with any of the non-profit organizations to help you overcome your problems.

- Cut your other expenses as much as you can and try saving that amount for the loan repayment.

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• The Restoration of the Jacksonville is Aided by the Prices of the Foreclosure Listings
• Foreclosure Climate has Caused Sharp Rise in Homeless Persons

The real estate market in the US is in doldrums. Foreclosures have become a common feature. Take Hawaii, for instance, where 990 properties were foreclosed last month. This registered a 332 per cent increase from last year, according to a report by RealtyTrac.

In 2008, there was a 169 per cent increase in foreclosure filings from 2007 – a rate that pushed up Hawaii foreclosure level to 40 in the US. In May this year, the state occupied no. 15 position in the foreclosure level. This has been the highest since 2005.

The marketing communications manager for RealtyTrac, Daren Blomquist said that the state has one of the highest foreclosure percentage increases when compared to other states. Honolulu, which has the densest population amongst all counties, has a very high foreclosure rate of 542. Maui has the highest figure of foreclosures per housing unit. In Valley Isle one in each 361 homes has been foreclosed, with the total number being pegged at 180. In Hawaii, one in each 394 homes has been foreclosed, in Kauai, the number stands at one in 411, while in Honolulu, one in each 618 homes has been foreclosed.

Where the entire state is concerned, one in each 512 homes is in foreclosure. In comparison, the foreclosure rate is the highest in Nevada, where every one in 56 properties is foreclosed. Blomquist said that RealtyTrac is not merely considering single-family houses but all kinds of housing. There are many multi-family units that have been hit by foreclosure filings.

The foreclosure record is gloomy no doubt but there is a ray of hope in recent reports of the economy. The National Association of Realtors said that sales of homes have gone up in many states. Moreover, decline of home prices have made houses affordable in many cities. The association’s chief economist, Lawrence Yun, said the real estate market has witnessed double-digit gains.

People feel that house prices have hit the rock bottom and they are grabbing the homes on the way. There may be a new wave of foreclosures hitting the market and people are not considering this while making the decision to buy. In Hawaii, there are a large number of foreclosures which were taken over by banks. These homes will be placed back into the market. That will give buyers a greater option to choose from. In the future, there will be many homes flooding the market.

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Foreclosures are telling on school budgets causing them to be snipped. This is creating havoc in the school districts and in young lives. One of the worst affected school districts is Hickman Mills. Deidre Anderson of At Risk Programs and Grants said, “Sometimes school is the only thing stable in the child’s life.”

The district makes no distinction between children who have a home and those who do not. The same kind of basic transport is provided. Anderson elaborated, “If you don’t help homeless families they are at greater risk of substance abuse, child abuse, and of committing crimes.”

This has led to Hickman Mills District and many others in the entire metro region to do their best to address the problem. The districts have been holding meetings many times during a year. The most significant question that will loom large over the next meeting is the price they will have to pay. Anderson added, “Just being frank, just making sure school districts are not being gouged. Taxi cabs are aware they kind of have a monopoly on things.”

Anderson is happy that these taxi cabs are adjustable and on top of that safe but the price is rather steep.

The district has received $8,000 from stimulus funds to sort out the matter of transportation for the homeless. The money was based after calculating the homeless from 2007 to 2008. That period had not witnessed an increase in the homeless lot. There a good number of tenants in the Hickman Mills area but relatively few agencies dealing with social services. The nearest youth shelter is about 45 minutes distant.

Anderson finds no logic in this. She said, “There is no reason a kid should have to be 45 minutes from school when there is so much abandoned property.” The problem is mind boggling and the district is desperately trying to answer it. It is hunting for grants and is hoping to join hands with some shelters to bring the facilities to the regions that are most in need of it. Anderson explained, “We as a district are just asking what is it that we can do to create shelter, living, or transitional living? Whatever it may be even if it’s for a few families it would alleviate a lot.”

Taxi cabs are doing fine currently but there are occasional lapses. Sometimes they fail and one mother was left desperate looking for her missing child. The story had a happy ending but it may not always be so.

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Eleventh hour negotiations are helping to solve some foreclosures in Louisville Kentucky. Peter and Gina Fochtman looked grim as they sat in court facing a man who seemed to be holding the keys to the future of their family. The person was an attorney representing the bank ready to foreclose upon their house.

Some months ago the couple lagged behind in mortgage payments. Since then they had tried many times to contact the lender so as to sort through piles of never ending paper work. But just as the house was about to slip through their fingers the couple got help from a programme initiated by the city that had made it mandatory for the lender to meet the borrower as a final step to be taken before taking the decision to foreclose.Peter Fochtman referred to the situation as a nightmare from the start. A salesman by profession Peter blames his financial trouble to increasing medical expenses in treating the heart condition of his child. His wife works as a part time clerk.

The mandatory clause by Louisville about lenders meeting borrowers has helped to stave off many foreclosures, allowing families to stay in the houses that were their homes. Similar steps have been taken in Connecticut, Philadelphia and Nevada. It is part of big steps taken by the administration to stem the tide of foreclosures.

Over 1.5 million American families had faced the risk of losing their homes to foreclosure during the first half of the current year according to RealtyTrac. From the start of 2007 over 1.6 million borrowers have surrendered their houses to the lenders. Currently a staggering 12% of the American residential house owners having a mortgage are either lagging behind in payments or are already in foreclosure. Within the next twelve months this number is expected to go up because of the increasing unemployment scenario.

In the regions where this stipulation is in force the attorneys of the lenders have to attend the meeting sessions if the homeowners want it. But that does not mean that the banks are bound to modify loans.

The measure however turned out to be a breather for the Fochtmans who were hard expressed by their four children repeatedly asking them how long they would continue to stay in their home.

The programme has been operating since 1st July and so far 30 conciliation sessions have been held. It is hoped the number will increase. The Fochtmans got free help from Legal Aid Society.

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Foreclosures are increasing despite measures taken by the government and threatening the middle class in USA. Filings in June shot up by 32% from what it was one year previously according to RealtyTrac. This is telling on the middle class who are unable to be current with their mortgages because of the gloomy economy. This is now the fate of many who have been responsibly paying their mortgage dues for years.

One of the victims is Ronald Crochetiere owner of diner and coffee eatery in Springfield, Massachusetts. He has built up his joint since the last 17 years but now bemoans that business is low – thanks to the recession. Since last fall business has been sliding down; profits are there – but hardly enough to pull him through. Per month what he takes home is $1,000 less than before. To add to his woes his wife has had to cut down her working hours because of a back injury. They have been married for 21 years and this is the first time they are having problems meeting their bills. Suddenly the mortgage appears unaffordable.

Many other responsible borrowers are in the same boat as Crochetiere. Michelle Jones of Consumer Credit Service commented, “We are talking with more clients who have never had serious financial difficulty before in their life.” The agency is a big one and interacts with homeowners across USA. More and more responsible citizens who would never have dreamt of falling behind are now facing trouble.

Previously there were many personal reasons behind foreclosures like divorces and expensive medical treatments. Many of course had got snared in the sub-prime trap and taken loans that they could never have afforded right from the beginning. Another reason was spending beyond one’s means and not knowing how to budget income. But today it is another type of problem – falling or loss of income.

72% of those who knocked on the doors of the agency seeking help were those who had either lost their jobs or suffered cuts in their income. Jones commented, “That’s huge, and it’s a big change for us.”

In Springfield the Crochetiere family is proud off their house – it is not a mansion but a ranch style raised home that is valued at $200,000. The debt on the house is $250,000. Since they have gone underwater with the value of the house being less than the loan amount many are advising them to walk away. But staying over here for more than 12 years has made them develop roots. Moreover they do not want to avoid paying their debts.

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Foreclosures are impacting on urban life and changing the face of cities in USA. Large numbers of workers without any papers are putting up ramshackle settlements that have come to be known as tent cities. These are not dubbed slums as the administration continues to hope that the problem will soon go away and the eye sores vanish.

The low wages these people earn does not permit them the luxury of becoming renters – leave alone owners. Meanwhile the cost of housing continues to rise. In Fresno the general market rent shot up by 52% from 2000 to 2008 as per the findings of National Low Income Housing Coalition. Today the usual apartment comprising of two bed rooms are rented out for $805 per month – far out of the affordability of workers like young Juan Garcia who has come from Mexico in search of greener pastures in the legendary land of plenty known as USA.

In the Central Valley drought has added to the misery with the most fertile tracts of the land turning into deserts. This year there will even deeper cuts in water distribution ranging from 85% to 100%. Loss of jobs could touch 95,000 in the state that would lead to a net loss of $2.8 million in income said Richard Howitt an economist focusing on agriculture from University of California. The workers are suspended between Mexico and USA – with neither country giving any guarantee for jobs. At least in his native state Colima, Garcia has the luxury of enjoying family life. This has made him decide to return home.

Fresno city struggles to meet development targets by trying to increase tax collection. It is the same picture in other cities. The authorities look down on the tent cities as crime dens that thwart all their efforts. This view is common wherever informal urbanism has become a fact of city life. Without any sympathetic attitude the squatters are left to rot on the fringes of ruin. There is a constant fear that even this little shelter will be bulldozed. The feeling of insecurity is agonizing as well as dangerous. Fear became a reality when a couple of years ago the encampments were attacked and the makeshift structures pulled down. It was conducted by Fresno City and California Department of Transportation for the sake of restoration of public health. They cited instances of many complaints coming from citizens about people defecating in the open.

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Legal steps are being taken by a group to stop foreclosures in Minnesota. They are suing the federal government. The allegation is that the programme supposed to help the embattled borrowers renegotiate their mortgages has failed to timely notify them or given them the right to appeal before rejecting their applications.

Earlier in February the Obama administration initiated the Home Affordable Modification Program. For this $75 billion has been allotted aiming to help 3 million to about 4 million foreclosure suits.

But attorney Mark Ireland of Foreclosure Relief Project contends that the government has failed to set out a clear cut procedure. He said, “The government does not require its loan servicers to tell a homeowner the specific reason why they have been denied a loan modification. ”Decisions are made under a cloak of secrecy and there is no formal way to challenge these decisions.”

The legal suit is seeking class-action status. It was filed in Minneapolis Federal Court seeking an injunction against all the foreclosures being processed until the governments puts in place the safeguards. Ireland is hopeful that housing advocates in the other states will toe the same line and file lawsuits on the same ground.

The suit has named the Treasury Department, FHFA as well as Fannie Mae and Freddie Mac. The duo has been under federal supervision since last September and the two are key players in government efforts to renegotiate toxic mortgages .Meg Reilly speaking on behalf of the Treasury Department said that she would first find out if the department was willing to make any comments on this matter.

There are two plaintiffs in the suit – a woman from Brooklyn Park and a man from Woodbury. Both exhausted their savings after losing their jobs. Today they are re-employed and have regular incomes but despite this their applications for modification through the HAMP programme have been turned down without any explanation being given.

Meanwhile the federal administration together with some of the important lenders has already started taking action to remedy the defects mentioned in the legal suit. It is of great urgency considering that the issue is common right across the nation. Government officials sent for the top brass from 25 firms to attend meetings held in Washington very recently with the top officials of HUD and the Treasury. Last Monday the Mortgage Insurance Companies of America declared that they would review and take a “second look” at the measure to help the borrowers whose applications for renegotiation have been refused.

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A senate panel is hearing a flood of complaints targeting the relief efforts against the background of a continued surge in foreclosures. There is a renewed effort for greater empowerment of bankruptcy judges to alter terms of loans. Witnesses reporting to the sub committee of the Senate Judiciary made complaints and suggested introduction of mortgage cram-downs as the only way out of the impasse.

The Federal Reserve meanwhile has taken measures to making lending terms more realistic but recession continues together with unemployment. Another tidal wave of foreclosures predicted by pundits is causing consternation and worry. Sen. Sheldon Whitehouse a supporter of the bankruptcy bill said, “It is clear to me that Congress must do more to help struggling American homeowners. If we fail to act, I fear that we put ourselves at risk — that a vicious cycle of foreclosures, falling home values and declining tax revenues will keep us in recession for years to come.” Whitehouse who is chairing the Senate Judiciary sub-committee asked the Senate to take “another serious look” at the bankruptcy matter.

The financial lobby and a good number of Republicans of the Congress have been strongly against the measure. This led to it being blocked in the Senate last spring although the House had given the green signal. If permitted the bankruptcy judges would have had the power to bring down the loan amount in such a way that the borrowers would have been able to continue with the mortgage. It has been a key remedial measure suggested to tackle the housing crisis.
Meanwhile the Federal Government has come up with new rules for disclosure. It would focus on risky clauses of some mortgages and home equity loans as well as pre-payment fines. The new regulations would ban brokers and offices engaged in mortgage operation to be rewarded for navigating people to take dubitable high costing risky loans. Senator Ben Bernanke said, “Consumers need the proper tools to determine whether a particular mortgage loan is appropriate for their circumstances.”

The new regulations however would not be enforced until early 2010. The Fed has allowed a period of 120days for public debate on the suggestions. It is expected that a flood of responses will pour in and the Federal Government would have to sift through the same. This will take time – enough time for the lenders to sharpen their nails and find out ways to parry it.

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• Foreclosure Climate has Caused Sharp Rise in Homeless Persons

The US economy is going through one of its challenging times. With unemployment at its zenith, people are faltering on loan payments. As a result, foreclosures have become very common. As homeowners are desperate to save their homes from foreclosures, they fall prey to all kinds of conmen who promise to negotiate with banks in return for an upfront payment. No sooner than homeowners make the payment do these conmen vanish into the blue.
Take for instance, the case of Rene Ruelas. The couple’s home at Buena Park was heading towards a foreclosure and Rene who was a mechanic just did not know how to stop the inevitable. He had not received his pay cheque for the month.  It was at that moment that he got a call from an agency who promised to negotiate with the Ruelas’ bank in return for an upfront payment. The agency promised to do the footwork. After Ruelas made a payment of $4,000, he never heard from the agency again. So his hopes of modifying the home loan just crashed.

Now the case of Ruelas forms part of a campaign initiated by Federal Trade Commission asking people to be cautious of conmen who are taking advantage of the depressed economy to make a steal. In fact, the photo of the Ruelas features on the cover of the DVD being made by the Commission.

This DVD was unveiled along with a few lawsuits to drive home how the people are being duped. This forms part of the Operation Loan Lies campaign initiated by state, federal and local bodies.

California Attorney General Jerry Brown says at present the number of scammers is definitely more than the government officials. The FTC chairman Jon Leibowitz says the weeding out operation has begun for weeks. Till now, 189 lawsuits have been recorded in twenty states.

Prosecutors in California have already brought to book 14 companies who were into the business of modifying loans. These firms charged fees of around $500 to $5,500 for modifying loans and they never turned up after the house owners coughed up the amount.

A victim confessed that she was assured of a 40 per cent decrease in mortgage principal in return for a payment of $3,500. She soon learnt that he modification request was turned down and the agency copied her signature and gave false information to the bank.

The focus of the federal authority is to stomp out such irregularities.

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• The Foreclosure Crisis Means a Bonanza for Some Enterprising Entrepreneurs
• The Restoration of the Jacksonville is Aided by the Prices of the Foreclosure Listings
• Foreclosure Climate has Caused Sharp Rise in Homeless Persons