USA Foreclosures 101

Foreclosures Being Put to Use in Cleveland

As most of the United States continues to grapple with a glut of foreclosed homes and shadow properties, some communities are banding together to do what they can to fight off as much of the resulting urban blight as possible. A handful of programs all over the country are finding creative ways to acquire foreclosed properties and convert them into useful homes for a variety of needy people. One example exists in Cleveland, where the … Continue reading →

Foreclosure Rates Down, Analysts Surprised

CNBC’s The Street reported here that foreclosure rates in the United States dropped 30% for the first quarter of 2012 as compared to the same time last year; this despite the fact that there was an overall 8.1% increase this past March. While this is good news for the average homeowner, it has the analysts completely flummoxed. According to the CNBC report “analysts had expected this number to skyrocket immediately following the $25 billion settlement between … Continue reading →

Foreclosure Affecting More Than Just Homes

In light of the continually troubled housing market it’s understandable that the vast majority of attention being paid to foreclosures is squarely on distressed homeowners and their properties. But truth be known, foreclosures go far beyond just residential properties. All over the country commercial enterprises are finding themselves in serious financial trouble as well. Among some of the hardest hit are America’s churches. Such is the case with Faith Christian Church of Lakewood Ranch, Florida. … Continue reading →

Foreclosed Home Neglect: Racial Bias or Just Business?

Phoenix area radio station KTAR picked up a story out of Washington alleging racial bias in the upkeep and sale of foreclosed homes around the country. According to the story, a public advocacy group fighting against fair housing discrimination claims banks are not putting the same effort into maintaining and selling foreclosed homes in minority neighborhoods as they are in white neighborhoods. The National Fair Housing Alliance (NFHA) looked at foreclosed homes in nine different … Continue reading →

“Ability to Repay” Rule Could Prompt More Foreclosures

On April 26, 2012 the Kansas City Star published a column from the Philadelphia Inquirer’s Al Heavens analyzing the federal government’s new “ability to repay” rule. This rule was part of the Frank-Dodd financial reform act of 2010 aimed at getting rid of high-risk mortgages and cleaning up the home lending industry. Among other things the Frank-Dodd legislation essentially put an end to risky mortgage products like interest only and negative amortization loans. While parts … Continue reading →

Congress Considering Tax Issue With Foreclosure Settlement

The Question of Tax Fairness on Foreclosure

If you’ve been following the news regarding the foreclosure crisis you’re probably familiar with the settlement between five of the nation’s largest mortgage lenders and 49 state attorneys general. The $25 billion settlement was reached as a means of preventing further litigation against the banks for alleged “illegal” foreclosures. Interestingly enough, the thousands of homeowners expected to receive cash from the settlement will also be subject to income tax on that money. That is, unless … Continue reading →

Foreclosures Hurting Sales Of New Homes

There have been several reports over the last couple of weeks suggesting the number of foreclosed homes being put back on the market will increase significantly heading into the summer months. Some of those reports indicate real estate values will fall as the number of properties available to buyers grows. If so, what does it mean for new home sales heading in the future? The Wall Street Journal’s Smart Money says the rise in foreclosures being … Continue reading →

Bank Of America Introduces New Foreclosure Options

There’s been a lot in the news recently regarding the relationship between foreclosed homes and the rental market. Attention has been focused on the rights of renters living in foreclosed homes as well as real estate investors purchasing foreclosed homes for use as rental properties. But Bank of America has entered the discussion with the announcement of a new program that could ostensibly turn current homeowners into renters if conditions are right. According to an … Continue reading →

Renters Protected During Foreclosure

With the foreclosure settlement out of the way and the pace of foreclosure proceedings picking up, there is a lingering question about the fate of renters currently living in homes going through foreclosure. The question is getting even more scrutiny now that private investors are beginning to view foreclosed properties as an opportunity to make good money in the real estate market. Fortunately, there are protections in place that prevent renters from being thrown out … Continue reading →

Former Insurance Investigator Gets $18 Million From Foreclosure Settlement

Back in February, 2012 the attorneys general of 49 states reached a settlement with five of the nation’s largest mortgage lenders to put an end to possible litigation surrounding allegations of fraud. The case was borne out of a thorough investigation and subsequent whistle-blower report by 63-year-old Lynn Szymoniak, an attorney and former insurance industry investigator. For her efforts Szymoniak earned some $18 million out of a total $25 billion settlement. In reporting the story … Continue reading →