September 28th, 2008
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In California the soaring foreclosures have pulled down prices of properties since last August. The information was revealed by the MDA DataQuick, which also said that the sale of houses had gone up while prices tumbled drastically due to the foreclosure crisis that was riddling the country for the past two years. Numerically, the state registered sale of 37,988 new and pre-owned houses in August 2008, a rise by 13.6 percent over August 2007, although compared to July figures it had fallen by 3.8 percent.
The startling fact was, 46.9 percent of the overall sale of properties was foreclosed houses. This news sent prices crashing from 35.3 percent to $301,000 during the year ended August 2008, throughout the state.
The worst hit areas during the housing crisis were the inland regions where most of the foreclosed houses were situated. According to DataQuick report the counties have the largest holdings of distressed properties where prices have dropped to rock bottom level and helped to push up year-to year sales of these foreclosed houses. Andrew LePage, spokesman of the company confirmed that the drop in prices in the inland housing market and the rise in the sales of property is a direct contribution of foreclosures of mortgage houses.
Rich Cosner, president of a Prudential California Realty office in inland Southern California disclosed that his foreclosure ridden region, attracted huge number of buyers attributed mainly to the spiraling foreclosure scenario. He was certain that expensive homes were also to experience further decline in the value of their properties while the prices of even the most modest of houses were likely to hit the bottom lines. It had been observed that there were multiple offers on properties with a price tag below $200,000, and Cosner was of opinion that when there were numerous offers on the same property it could probably be the “end of the price-drops.”
California felt that it was not getting its fair share of assistance from the Federal Government in its effort to bail out borrowers likely to face the axe of foreclosure or were in some stage of the foreclosure proceeding. Sen.Barbara Boxer, D-Calif., had said that even though the state during the months January-July 2008 registered more than 25 percent of the nation’s total foreclosure filings it had received only 11% of the more than $130 million released by the Government for mediation between distressed borrowers and the lenders and California had every right to be wistful.
California Bank Foreclosures by Top Counties
September 25th, 2008
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In South Florida it is dangerous to live in a neighbourhood that is dotted with foreclosed units. These abandoned houses are not just eyesores but they attract crime and disease. The unkempt gardens become a haven for snakes as they chase rodent packs and leaping frogs. The stagnant slimy pools apart from posing danger to inquisitive children become breeding grounds for mosquitoes. This is the harsh surrounding in which the neighbours of these abandoned foreclosed units live. The eyesores are fast becoming urgent problems.
Angelo Castillo of Broward County Planning Council bemoans that “It’s changing our quality of life, and it’s alarming.” It is expected that federal help will start trickling in before the year draws to a close but the locals are not willing to wait. They are taking their own initiatives and without sanction are quietly mowing lawns while the city fathers struggle with legalities.
Becky Blackwood in Plantation Park East is one such resident affected by the empty foreclosed houses. She found seven mice in one of her pools. She is most unhappy to live near such units but feels helpless in the face of the problem.
The city officials are warning that the numbers of deserted foreclosed houses are rapidly increasing. But the city does not have either the manpower or the funds to tackle such exigencies. Once the foreclosure procedure starts off the municipal dues are the last ones to get attention.
In Palm Beach County the foreclosure figures spiked by 282%. In 2006 there were 665 foreclosure postings but on 4th September the number was 2,541. In Broward County from January to September this year there were 6,401 foreclosure proceedings as against 761 in the 12 months of 2006.
Gus Zambrano the director of Miramar’s economic development and revitalization says that nothing of significance can be done as their hands are tied by property tax reform. Florida has remained for a considerable period among the top offending states in the country. However in October the municipalities will get to know how much of federal help will be available. $3.92 billion has been set aside for the purchase of foreclosed houses. These will be refurbished and resold or rented out.
Meanwhile locally steps are being taken to contain the crisis. Deerfield Beach and Coral Springs have passed laws that will make it mandatory for banks to register with the cities in which their foreclosed houses are located.
Florida Bank Foreclosures by Top Counties
September 24th, 2008
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In California the foreclosure crisis has caused price of houses to drop but sales have picked up and risen phenomenally. There was a 13.6% increase in sales in August 2008 from what it was in August 2007. However there has been a drop of 3.8% from July 2008. DataQuick has released the figures. Of the houses that were sold 46.9% came from the foreclosure category.
The average price of a house in California dropped by 35.3% calculating to $301,000 during the year that ended in August 2008. The majority of the foreclosed houses were in the inland area – the region that has taken the worst beating during the current foreclosure crisis. The counties that have large concentrations of foreclosed houses have recorded sharp fall in prices. If the prices had not tumbled to abysmal depths perhaps the sales would not have picked up the way it has. Rich Cosner of Prudential California Realty Office in Southern California commented that the phenomenal fall in prices in the foreclosure ridden regions have lured in a flood of buyers.
From the trend it seems that the prices of modest houses have reached the bottom and would not fall further. This cannot be said of the expensive properties. There are many offers coming for houses priced at $200,000 and below. Multiple offers indicate that the bottom has been reached.
There are grumblings that California is not getting the proportionate share of federal support considering the top position it holds as regards the one of the worst offending states. For consecutive running months it has held its position. Thousands of foreclosure victims about to lose their houses and homes are badly in need of support. With each passing day the number of defaults are increasing.
The Democrat senator from California, Barbara Boxer complains that the state has got only 11% of the $130 million that has been sanctioned for negotiating workouts between lenders and borrowers. Yet California is responsible for over a quarter of the foreclosure postings of USA from January to July this year. The housing bill that became law in July allowed the funds. By it the government could back cheaper mortgages to the limit of a total of $300 million.
Boxer wrote to the administrator in charge of disbursing the funds that “The communities hardest bit by the foreclosure crisis deserve our priority attention.” The agency has yet to distribute $50 million.
Bank Foreclosures by Top States
September 23rd, 2008
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The foreclosure crisis is no longer confined to lenders and the borrowers who are the house owners. Foreclosures are also ensnaring tenants. The nation’s jumbo landlords club together as a trade association known as The National Multi-Housing Council. This group has always been aggressively advocating the spread of the motto that each American should own [...]
Continue reading: Foreclosures Ensnaring Tenants Too
September 23rd, 2008
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Democrat Senator Robert Menendez spoke of his simultaneous plans for containing foreclosures and helping modest business concerns on Friday 19th September. Menendez is also member of the Banking Committee of the Senate. He was speaking at the Newark Club on the day the federal government declared plans to revive the staggering economy and the tumbling [...]
Continue reading: Democrat Senator’s Simultaneously Plans for Containing Foreclosures and Helping Modest Business Concerns
September 22nd, 2008
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A list of foreclosed homes will determine the eligibility of voters in the ensuing elections and accordingly the Michigan GOP in the Michigan Messenger had announced plans. The news had been reported by Eartha Jane Melzer which said that a list of housing foreclosures would be used as the basis for a macro voter-caging operation. [...]
Continue reading: List of Foreclosed Houses to Determine Eligibility of Voters
September 22nd, 2008
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The rate of foreclosures spiked across the Treasure Coast of Florida according to RealtyTrac.
According to the report 1,611 properties in St. Lucie, Indian River and Martin counties were foreclosed upon in July 2008. This is four times higher than the numbers of the previous year. St. Lucie County led the three counties in the foreclosure [...]
Continue reading: Foreclosures Spike in Treasure Coast, Florida
September 21st, 2008
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A new word has been coined – foreclosure pets. These foreclosure pets are abandoned to fend for themselves as their human owners struggle to survive.
Endless individual stories are filtering through that speak of human callousness and cruelty. Few months ago a big Rottweiler was one of the foreclosure victims in Vallejo. The dog was recently [...]
Continue reading: Foreclosure Pets Abandoned To Fend For Themselves
September 19th, 2008
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The month of August saw a rise of 12% in foreclosures. This is an increase of about 27% from that of August last year. The report on foreclosure this month says that out of every 416 houses in America, at least one house has faced foreclosure. A total of 303879 properties have been in a [...]
Continue reading: August Sees A Rise Of 12 % In Foreclosures
September 17th, 2008
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The recent craze for buying houses in the US is because of the flexible rates of mortgages. The owners didn’t realize that the rates would be adjusted upwards. This trap lured the owners towards buying houses, leaving their rented abodes. It is estimated that about 1%of the total number of house owners were facing the [...]
Continue reading: Foreclosures Caused By Felxible Rates Of Mortgages