Central Florida Real Estate

Tagged "Foreclosure"

Central Florida Real Estate

Blog by Dave Lowe

Florida

Technology ~ Fun ~ Sun

Favorite Links

• Personal site on FL. Assoc. of Realtors

RealTown Blogs

Blogs Homepage

Featured Entries

Site Feed

RSS Feed

Central Florida Real Estate

Mortgage Scheme

Mar. 26, 2008

Categorized in: Foreclosure

Tagged with: fed, foreclosure, mortgage

Daily Real Estate News | March 25, 2008Feds Charge 19 With Mortgage Fraud
Federal prosecutors announced 19 indictments Monday in a mortgage scheme that stole nearly $13 million in home equity and victimized more than 100 home owners.

Under the scam, home owners facing foreclosure were promised lower home payments and cash up-front if they agreed to add another name to their home’s title. The victims were led to believe they were paying rent to the investors to give them time to get their affairs in order, according to officials.

Prosecutors say the scam was headed by Charles Head of La Habra, Calif. Prosecutors say additional indictments are likely as they continue investigating.

In all, prosecutors say Head defrauded 115 financially strapped home owners in 22 states of at least $12.6 million. The fraud began in and continued through 2006.

Victims ranged from first-time home buyers to the elderly and cost 90 percent of the victims their homes, said Assistant U.S. Attorney Ellen Endrizzi.

Source: The Associated Press, Aaron C. Davis (03/24/08)

Permanent Link | Send Link

Mortgage Delinquencies and Foreclosures

Feb. 22, 2008

Categorized in: Foreclosure

Tagged with: distress sale, foreclosure, preforeclosure

Buy Through Us... We'll Sell Your Home For FREE!

Purchasing A New Home? Call 407.451.3145 To See How You Can Receive A Rebate At Closing.

In Focus

Mortgage Delinquencies and Foreclosures: Third Quarter Data Show Increases in Both by George Ratiu, Economist, NAR Research

The numbers tell the story – more households are delinquent in their mortgage payments, and foreclosures are on the rise. According to data from the Mortgage Bankers Association’s (MBA) National Delinquency Survey,* the third quarter of 2007 recorded an increase in both mortgage delinquency and foreclosure rates.

First, let’s discuss mortgage loans outstanding. Nationally, the number of mortgages increased by 2.64 percent from that in the second quarter of last year; on a year-over year basis, the increase was 6.61 percent. Not all areas of the country exhibited the same level of activity. The states with the highest increase in year-over-year mortgage volume were Vermont (20.98%), Delaware (21.40%), South Dakota (25.57%) and North Dakota (27.41%). Meanwhile, two states experienced a drop in mortgages serviced compared with the second quarter—Idaho (-5.92%) and Utah (-1.83%).

Composition of the Mortgage Market
The composition of mortgage loans shifted from the second to the third quarter of 2007, with a one-percent drop in subprime loans being offset by a one-percent increase in prime mortgages. As of the third quarter, prime mortgages accounted for 78 percent of the total loans serviced. Subprime loans made up the second largest group of mortgages – 13 percent – followed by FHA loans (7%) and VA loans (2%). Keep in mind that these percentage breakouts pertain to homeowners who have mortgages. There are approximately one-third of homeowners who do not have a mortgage because they have paid it off.

Delinquency Rates
Mortgages with installments past due – i.e., delinquent – increased from 5.06 percent to 5.81 percent in the third quarter compared with the previous quarter. Year-over-year, the number of delinquent mortgages was up 27.89 percent. The one exception was the state of Louisiana which recorded a 7.11 percent drop in the number of Total Past Due mortgages, mostly fueled by a 42.36 percent decrease in mortgages with 90-day Past Due installments. The figure reflects past Katrina rebuilding activity in the New Orleans area.

Mirroring the upward swing in the number of delinquencies, foreclosure starts were also higher in the third quarter of 2007 than in the previous quarter or the third quarter of 2006. The number of foreclosure starts was up 35.70 percent compared with the level in the second quarter, and 76.93 percent higher year-over-year. In terms of numbers, there were 354,254 foreclosure starts in the third quarter of 2007 versus 261,063 in the prior quarter, and 200,223 in the third quarter of 2006. Nationally, there were nine states that posted more than a 100 percent increase in foreclosure starts.

It wasn’t all bad news. Indeed, there were some bright spots in this landscape. Three states experienced decreases in year-over-year foreclosure starts—Vermont (-26.28%), South Dakota (-16.99%), and Utah (-15.75%).

Foreclosure inventories also increased in the third quarter. They rose by 23.90 percent from the level in the second quarter. On a yearly basis, inventories were up 71.59 percent compared with the third quarter in 2006. The increase in foreclosure inventories was most severe in four states that experienced high home price appreciation coupled with speculative real estate investing—Arizona, California, Nevada and Florida.

Subprime Loans
The subprime fallout continues to have an impact. The number of subprime loans serviced nationally during the third quarter was down 3.45 percent from that in the second quarter. Compared with the previous quarter, every state recorded a decrease in the number of subprime mortgages, with Iowa, Kansas and Colorado posting the largest changes: -5.05%, -4.87%, and -4.27%, respectively.

In contrast with the decrease in the number of subprime loans serviced, the delinquency rate for subprime mortgages moved from 14.54 percent in the second quarter of 2007 to 16.68 percent in the third. Subprime mortgages also posted an upward swing in foreclosure starts—25.31 percent higher than in the second quarter, and 74.53 higher than in the third quarter of 2006.

Foreclosure inventories were 85.15 percent higher for subprime mortgages year-over-year. This increase was driven mostly by 13 states that posted increases of 100 percent or more—California, Nevada, Arizona and Florida among them. On the flip side, three states recorded drops in foreclosure starts for subprime mortgages on a year-over-year basis – Utah (-32.26%), Vermont (-51.39%), and South Dakota (-58.81%). Moreover, one other state – Montana – showed a decline in foreclosure inventories of 9.88 percent.

What it Means for the Housing Market
The increase in mortgage delinquencies and foreclosures are taking a toll on housing markets, particularly in states where rapid price appreciation combined with speculative investing led to the proliferation of subprime and adjustable rate mortgages. Looking forward to the months ahead, the states with high delinquency rates will continue to experience downward pressures on home prices. The passage of the national economic stimulus package is likely to mitigate some of the effects of rising delinquencies and foreclosures. Based on an economic impact study conducted by NAR, it is estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and a potential 210,000 reduction in foreclosures.

*MBA's National Delinquency Survey collects data from over 80 percent of about 50 million outstanding loans in the housing market. For more information, visit the Mortgage Banker's Association.

Reprint from online article at National Association of Realtors - Real Estate Insights

Permanent Link | Send Link

Loan Limits / The Impact

Feb. 20, 2008

Categorized in: Foreclosure

Tagged with: fannie mae, federal housing administration, fha, foreclosure, freddie mac, gses, mortgage, mortgage limits, mortgage rates, refinace

How New FHA, GSE Loan Limits Impact You:

Last week, President Bush signed into law a $152 billion economic stimulus bill that includes temporary increases in loan limits for the government sponsored enterprises (GSEs) — Fannie Mae and Freddie Mac — and the Federal Housing Administration until Dec. 31. But what does this mean for you?

"The importance of immediately implementing the new limits cannot be overstated," said NAR President Richard Gaylord last week in a public statement. "Mortgage markets throughout the country need liquidity. Our research indicates that the increased FHA loan limits will help an additional 138,000 Americans achieve the dream of homeownership and will allow nearly 200,000 homeowners to refinance and potentially keep their homes.”

The FHA limit will increase to as much as $729,750 in high cost areas (to 125 percent of local median home prices). The GSE limit will jump to $729,750 for loans; currently Fannie Mae and Freddie Mac loans are capped at $417,000.

Eligible loans from FHA include mortgages that were issued for credit approval on or before Dec. 31, 2008. GSE loans that are eligible include loans that originated after July 1, 2007 to Dec. 31, 2008.

The U.S. Department of Housing and Urban Development is required to publish the new mortgage limits by March 14; the limits will be effective for FHA immediately upon publication.

Permanent Link | Send Link

Foreclosure

Jan. 31, 2007

Categorized in: Foreclosure

Tagged with: foreclosure, national foreclosure, national foreclosure management inc, real estate depot

Financial troubles have hit us all at some time in our life and once you realize there is no way out the only approach is to reach out for help, it's not going away and the longer you wait the harder it is to get lenders to work a plan of action. Call and you'll find we are trustworthy and truly care about your situation. We will do all within our power to help and if points to a sale of your home as a last result it's better for you than destroying your credit. You can always purchase a new home again if your credit is intact. Again call us at 407.330.0060.

Watch out for questionable counseling companies who advertise that, for a minimal fee, they will assist homeowners by hiring a lawyer to defend the foreclosure in court or negotiate lender assistance on the borrowers’ behalf. You should call a HUD-approved counseling organization, a local NeighborWorks® organization, or 888-995-HOPE before you pay or sign anything.
Be wary of advertisements like "Cash for Houses/Any Situation" or "We Buy Houses for Cash." Consumer groups have learned that many of these are scams that bait homeowners with the promise of rescuing them from imminent foreclosure. Unfortunately, the "rescue" often involves the borrower signing over the house and the family being evicted from their home.

Here are some links to help you out:

HomeOwnership Preservation Foundation

Federal Reserve Education website

Hud - Tips for Avoiding Foreclosure

HUD - Find A Housing Counselor

Foreclosure Assistance Programs Web Links by State: