Housing bubble : getforeclosures.blogspot


Richard Moore


Tuesday, November 01, 2005

Massachusetts Foreclosures Surge In 2005

The foreclosures in Massachusetts are piling up. "The
leading provider of Massachusetts foreclosure
data..released its October 2005 report today, with data
that shows Massachusetts foreclosure filings to be 33%
percent above 2004 levels."

"'Foreclosure filings continue to be recorded at levels
significantly higher than 2004,' said Jeremy Shapiro.
'Based on our analysis, we expect this trend to continue
through year's end, especially with continued interest
rate increases prompted by actions such as today's
expected rate hike by the Federal Reserve.'"

"The 3rd Quarter of 2005 (July through September) marked
the highest quarterly total of new foreclosure filings in
Massachusetts (2,945) since ForeclosuresMass began
collecting data in 2003; additionally, Q3 2005 was 13.93%
higher than Q2 2005."

"Counties with the largest YTD increases are Essex (49%
increase, 1000 in 2005 v. 669 in 2004); Suffolk (43%, 835
in 2005 v. 582 in 2004); and Bristol (43%, 718 in 2005 v.
503 in 2004). Counties with the greatest change from
September 2004 to September 2005 were Essex (98.55%
increase) and Bristol (112.5% increase). Berkshire was up
250% but due to small sample set its numbers are subject
to greater fluctuation."

"Towns of note are Lawrence with a 101.54% increase so far
in 2005; Lynn experienced a 70.43% increase; and New
Bedford, up 54.64% for the year. Some towns are
experiencing decreases from 2004 levels, including Whitman
with a 42.5% decrease; Agawam is down 24.39%; and Dedham
with 13.33% fewer filings in 2005 v. same period in 2004."

"Since January 2003 over 24,000 foreclosures have been
filed in Massachusetts."

posted by Ben Jones @ 11:20 AM 0 comments


UK Counting Repossesions By The Minutes

This report from the UK can be expected in the US soon.
"Latest figures from the Department of Constitutional
Affairs show a huge rise in the numbers of mortgage
possession procedures issued in the county courts.
Nationally the number of possession actions entered into
in the three months to September 2005 rose to 29,991, up
from 19,359 from the same period in 2004, a rise of 55%."

"The number of orders made in the three months to
September 2005 rose to 19,687 from 11,682, a 66% jump.
Analysis of the data by the Liberal Democrats shows that
these figures mean that in England and Wales a
repossession order is made every seven minutes and an
action is entered into every four minutes."

"Commenting on the figures Vince Cable MP, Liberal
Democrat Shadow Chancellor said: 'These figures are deeply
worrying. While they are at low levels compared to the
early 1990's there are clearly big problems ahead. Banks
and building societies need to ensure that when
individuals take out mortgages they are fully aware of the
risks that are involved."

"'At long last the Chancellor has now accepted there is a
bubble in the housing market. Now he needs to recognise
that for many homeowners it is sadly bursting and that he
needs to take action. These figures demonstrate the
complete absence of an adequate safety net in the mortgage
market. The government needs to urgently look at the
payment protection insurance markets as products are often
over-priced and contain too many exemptions.'"

"Regionally a repossession order is made every:" 
    London: 37 minutes 
    South East: 45 minutes 
    West Midlands: 61 minutes 
    North West: 66 minutes 
    Eastern Region: 68 minutes 
    Yorks and Humber: 80 minutes 
    East Midlands: 88 minutes 
    South West: 90 minutes 
    Wales: 122 minutes 
    North East: 140 minutes 
    Merseyside: 207 minutes 

posted by Ben Jones @ 10:22 AM 0 comments


Monday, October 31, 2005

Philly Foreclosure Facts

This Philadelphia Daily News story on sheriff sales had a
few local pointers. "Four times a month, the Philadelphia
sheriff's office conducts sheriff's sales, which are a way
for mortgage companies and other financial institutions
and the government to recover debts owed to them."

"Often, the properties in question are sold to new owners.
There are mortgage-foreclosure sales for mortgage
companies, which are looking to recoup money from
homeowners who have defaulted on their home loans."

"Delinquent tax sales are how the city collects unpaid
real-estate taxes, water and sewer bills. There are also
twice-a-month tax-lien sales that cover a variety of liens
on properties."

"Roughly 1,400 to 1,600 properties are exposed to sheriff
sale each month, and about a third of the mortgage
foreclosures and one half of tax lien cases result in
properties being sold."

posted by Ben Jones @ 4:24 PM 0 comments


Ten Percent Of Subprime Borrowers Are Late

Delaware Online has this report on delinquencies. "The
initial advice all credit counselors give to homeowners
facing foreclosure is: When you find yourself in a hole,
stop digging. A culprit, said Mike Shannon, a Realtor and
foreclosure specialist in Dearborn Heights, Mich., is the
prevalence of subprime lending programs, those that help
borrowers with poor credit obtain mortgages at higher
interest rates, and no-money-down, interest-only

"'The leniency in lending leaves people in jeopardy,
especially when they're doing 100 percent financing, using
80 percent as the primary mortgage and a 20 percent equity
line,' he said. 'It really becomes a problem if that
financing is based on a two-person-income household and
something happens.'"

"Nationally, 10 percent of subprime borrowers are late
with their mortgage payments, while 3 percent of all
sub-prime borrowers are in foreclosure, according to the
mortgage bankers group. In Michigan, nearly 16 percent of
sub-prime borrowers are delinquent, and 9 percent are
seriously delinquent or in foreclosure."

posted by Ben Jones @ 8:20 AM 2 comments


Saturday, October 29, 2005

Foreclosures Near Record In Mesa County, CO

The Grand Junction Sentinel reports on foreclosures on the
western slope of the Colorado Rockies. "The number of
foreclosures in Mesa County during the first 10 months of
2005 is down slightly from the same time last year.
According to the Mesa County Public Trustee's Office, 333
foreclosure actions will be opened by Oct. 31. At the same
time last year, 337 foreclosures were reported."

"Public Trustee Barbara Brewer said the reasons people
fall behind on their mortgage payments and drop into
foreclosure remain the same. 'We've got people who are
just overextended, or it's illness, a death in the family,
divorce, loss of job. All of those issues can impact
people's ability to pay their loans,' Brewer said."

"The number of foreclosures this year appears to be on
track to almost match last year's total of 392. That's the
most foreclosures in a year in Mesa County since 1988,
when 438 foreclosures were reported."

posted by Ben Jones @ 1:20 PM 1 comments


Friday, October 28, 2005

Up To 10% Of Mortgage Apps Include Fraud

Inman News has a report on the FBI and mortgage fraud.
"'Mortgage fraud is a crisis in the making,' said James
Burrus, deputy assistant director of criminal
investigations for the FBI. He likened the wave of real
estate loan fraud sweeping the country to the savings and
loan crisis of the 1970s and 1980s that left failed
companies and bankruptcies in its wake."

"'It's important that we get together for a solution,'
Burrus said. 'After the savings and loan crisis, the
government imposed a solution on the banking industry, and
I don't think we want that to happen here.'"

"Mortgage fraud is on the upswing, with the number of
suspicious activity reports to the Federal Bureau of
Investigation in 2004 almost triple those in 2003,
according to a report the FBI released in May. Burrus said
around 15,000 SARs were filed in 2004, and more than
20,000 in 2005."

"According to the Federal Financial Institutions Council,
up to 10 percent of all mortgage loan applications in the
$3 trillion annual U.S. residential real estate market
involve some form of material misrepresentation."

"Some new wrinkles include the rising trend of asset
rentals, Burrus said. 'These people will rent you a beach
house, a certificate of deposit, things you can say you
own for the purpose of getting a loan,' he said. 'Once the
loan is obtained, the asset is returned.'"

posted by Ben Jones @ 2:40 PM 3 comments


High Foreclosures Means Big Discounts

A report looks at foreclosures and the effect on home
prices. "The study by Christopher Cagan, Ph.D., quantifies
the correlation between foreclosures as a percentage of
total sales and the size of the discount buyers typically
receive when purchasing foreclosure properties."

"For example, in Maricopa County, Ariz., where foreclosure
sales accounted for 1.6 percent of total sales during the
first half of 2005, the median discount was 6.3 percent.
Whereas in St. Louis, Mo., foreclosures made up 7.9
percent of sales for the same time period, with a median
discount of 29.5 percent."

"'The prevalence of foreclosures and the depth of
discounts are sensitive indicators of the present and
future state of a real estate market, regardless of
geographic location or market type,' said Cagan."

"Among the areas with few foreclosure sales and little or
no foreclosure discounts during the first half of 2005
were California, the District of Columbia, Hawaii, New
Mexico, Virginia, Nevada, Florida and Arizona. States
where foreclosures were most prevalent and discounts were
deepest included Michigan, Missouri, New York, Ohio, South
Carolina and Tennessee."

posted by Ben Jones @ 11:25 AM 0 comments 



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