Foreclosure Listings Blog

Two news items have raised hopes of homeowners and housing advocates amid increasing foreclosure listings in Florida and Nevada. A law protecting homeowners from unlawful foreclosures has just been approved in Nevada and signs of rising home sales have been sighted in Florida.

The Nevada Assembly has passed the law coded AB132, which would allow homeowners to claim up to 300 percent of the value of their personal belongings lost or residential properties damaged by unlawful inclusion in foreclosure listings.

The legislation was introduced by Nevada lawmaker Marcus Conklin after Las Vegas couple Katrina and Gerald Thitchener lost unreplaceable personal belongings, such as military awards and wedding photos, when their condominium was mistakenly included in foreclosure listings while they were traveling.

The Thitcheners won their lawsuit against their lender Countrywide Home Loans, but they got only about $2.2 million out of the $3.1 million original judgment against Countrywide. The Nevada Supreme Court ruled they can not allow an award equivalent to 300 percent of the value of lost personal property. The AB132 legislation now allows the tripling of awards for lost personal properties and damaged real estate properties due to unlawful inclusion in foreclosure listings.

Meanwhile, in Florida, the decline in foreclosure rate in the Fort Myers and Cape Coral area and in the rising interest of homebuyers in properties in Southwest Florida are raising hopes of housing sector recovery. In the Fort Myers and Cape Coral area, the foreclosure rate of one home in every 65 housing units is the highest in the U.S., but the rate has declined compared to 2008. Across the country, the foreclosure rate is one in every 440 homes while in Florida, the foreclosure rate is one in every 188 homes.

Nicole Welter, marketing director of DSD Homes, said the low down payments, the $8,000 tax credit and other benefits from Obama’s housing program have increased home buying activities in Southwest Florida. In addition, homebuyers are also given 100-percent valuation and fixed rate 30-year terms. DSD has been selling foreclosed houses in Cape Coral and Lehigh Acres, two of the places with the longest foreclosure listings in the country.

Homeowner Astacio Ramos is hoping that many more workers are able to buy homes from foreclosure listings in his neighborhood. He knows that more occupied homes mean less crime and less neighborhood blight.

The decisions of Hertz and Amol in relation to home buying at a time of low home prices and long foreclosure listings illustrate the contrasting ways homebuyers are reacting to the housing market.

Hertz, a 32-year-old resident of the Washington, D.C. area, has been monitoring home prices in the Bethesda area since he came back in 2005 from Massachusetts Institute of Technology to launch his own information technology company in the district area. With an idea of the type of home that he liked, he searched and searched for a place that fit his requirements and his finances.

In a 2007 article he wrote about his search, he wanted his home to be priced around $500,000. As the months turned to years, he then observed that home prices kept going down after the 2007 subprime crisis added more and more residential properties to foreclosure listings.

Hertz knew that as foreclosure listings get longer and longer, home prices would drop further. He monitored the local housing market with special attention, even using spreadsheets to track the properties he is interested in. Meanwhile, he has been staying in the Dupont Circle apartment he had leased on a per month basis since 2005. Back then, he only intended to stay for several months.

Behavioral psychologist Rom Brafman, who co-wrote a book on irrational behavior, said the lure of the idea that perhaps home prices will fall further has prevented many prospective homebuyers from buying a home. It has also contributed to the delayed recovery of the housing sector.

But as Hertz continued his search for a dream home that is affordable, he met his fiancee. This development has changed Hertz’s pursuit of the price factor. Finally, he and his partner found a three-bedroom apartment downtown Bethesda and Metro and made an offer. They bought it at $725,000, which is $14,000 lower than the listed price.

Buyer psychology is a factor in the housing market, according to Brafman and Nicolas Retsinas, head of Harvard University’s Joint Center for Housing Studies. Retsinas said that homebuyers are redefining the real meaning of a home in the midst of hardships and endless foreclosure listings. They question themselves why they are buying a home in times of corporate downsizing, job losses, foreclosures and financial hardship.

Meanwhile, Amol, a 32-year-old government contractor, has decided to wait it out. His job is secure, but news of layoffs, business closures, long foreclosure listings, increased homelessness and jobless claims has unsettled him. Despite the low home prices and the long foreclosure listings to choose from, he is taking his time.

The foreclosure crisis has done more harm beyond driving families out of their homes. It has made the situation even harder for homeowners as banks have become more stringent in dealing with borrowers. Here are a few things you should know to help you cope with the situation:

• Banks will now be discerning about who they are going to work with. They will reconsider the lending practices they used to employ. Some banks may choose to let the deeds pass through the loan mitigation department; others may choose to restructure loans. This means that you would have to prove your worth to the bank.
• Debt consolidation will become predominant as lending gets more stringent. If you want to save your property, there is no other way but to stop foreclosure. It is most advisable to act immediately once you receive a Notice of Default. Pushing it aside will not do you any good. Even if you avoid it at the moment, you will have to face it sooner or later. Consider the welfare of your family and yourself as well. Good news is that there are experts that you can consult and seek help from when it comes to matters such as forbearance, loan modifications, and other workout options. As long as you have a good action plan and the right strategy, your debt will be reduced faster than you expect. After everything has been done, you will find your property spared from foreclosure, your credit record free from bad marks, and yourself relieved and stress-free.
• Banks will be sharper on looking at your qualifications. They will make sure that you have a steady income and good renting history before they work with you. You will have to present written documents to the bank so keep all your important records in a good environment. You might also need digital copies of your records so make digital copies if you have a scanner. Aside from good rental records, determined efforts to prevent foreclosure might also be helpful when you are transacting with a bank.
• The government will implement intervening measures to address the situation. Because the issue has become so big, committees are now working to help save the housing industry. Based on research, distressed homeowners can expect help in saving their properties from foreclosure particularly the homeowners who have lagged in payments for only a few months.
• Among other things, your credit record is of utmost importance. Keep your credit clean by protecting it from foreclosure marks. It is also important to protect your credit from identity theft if you want to keep it free from flaws.

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Details of President Barack Obama’s $75 billion program to reduce foreclosure listings have been released by the Treasury Department. First declared on February 18, Obama’s program aims to prevent up to 9 million homes from being included in foreclosure listings.

The number of repossessed homes in the county of San Diego, California has declined to almost 12 percent as mortgage lenders delayed their foreclosure activity in anticipation of U.S. President Barack Obama’s $75 billion program to help owners of distressed properties.

On February 18, 2009, President Obama revealed his plan for dealing with the sinking US real estate market. The $75 billion plan targets the growing number of foreclosures in the country and will offer relief to homeowners who have been responsible with their sub prime loans but because of personal tragedy or rising interest rates are falling behind with mortgage payments. It is expected that the plan will help 9 million Americans who face foreclosure on their homes.

As the housing market situation continues to get worse and foreclosures continue to mount, mortgage finance company Fannie Mae said last Monday that it will most likely need $16 billion from government aid.

As foreclosures get back to an upward trend after a temporary slowdown in December 2008 due to foreclosure suspension initiatives, the number of homeowners falling prey to scammers and swindlers also soars.

Attorney General Lori Swanson has proposed a plan, the Homeowner Lender Mediation Act, which will require lenders to offer homeowners in Minnesota to renegotiate their mortgage terms to avoid foreclosure.

The continuing accumulation of foreclosure would probably not slowdown without fully showing its effects. Gayle Henderson an alarmed property expert of RE/MAX Excalibur pointed some of the effects of having a foreclosure, with the hope of solving the booming of loan problems.