Citi stops foreclosures for the holiday

AP News reports, in a heart-warming announcement today, Citibank declared a moritorium on foreclosures during the holiday, starting Friday December 18th and ending on January 17th, 2010. Hopefully other banks will follow suit and show thanks for the TARP money they borrowed.

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Mortgage delinquency rate at 9.64 percent

The Mortgage Bankers Association reports today in their quarterly survey that the delinquency rate for mortgage loans on one-to-four unit residential properties rose to 9.64% at the end of the third quarter of 2009.

The delinquency rate breaks the record set last quarter. The records are based on figures back to 1972. The delinquency rate includes loans that are at least one payment past due but does not include loans in the foreclosure process. The percentage of loans in the foreclosure process at the end of the third quarter was 4.47%. The combined percentage of loans in trouble was 14.41 percent -- the highest ever recorded in the MBA delinquency survey.

Portland foreclosure rate doubles

Ryan Frank at the Oregonian reports that the foreclosure rate in Portland has doubled in a year.

He continues, "The Portland area and Oregon are still doing better than the national average in mortgage delinquencies and foreclosures. But the troubles here are growing worse at a faster than the nation in the September report from First American CoreLogic. Portland's delinquency rate was 5.99 percent in September, Oregon's 4.97 percent and U.S. 7.27 percent. But since September 2008, the delinquency rate in Portland and Oregon has grown more than twice as fast as the nation's. The foreclosure rate growth shows a similar is slightly less dramatic spread."

Although this makes for a great headline, it's important to know that the numbers the report references are inaccurate; foreclosures are counted when a property goes into default, then again when it goes up for auction. If the homeowner brings it current and then months later goes into default again, they are counted as an additional foreclosure. So although, the numbers are striking, there should be some sort of allowance for multiple listings of the same property. In the instance above, the home would be counted as three or four foreclosures, when in reality it was just one home.

249 properties added to Portland foreclosure list

249 Portland Properties Join Foreclosure List

PortlandForeclosure.com announces 249 properties located in Multnomah, Washington, Clackamas, Yamhill and Clark County joined the foreclosure list last week. "This week we see 9 less properties on the list, but huge drops in Clackamas, Clark and Yamhill Counties. Multnomah has about a 25 percent increase, while Washington County almost doubled its numbers," states Josh Leake, local real estate expert and mortgage loan officer.

The county break-down of foreclosures for the week of October 7th, 2009 include:

Multnomah County
109 properties, including vacant land and commercial property vs. 87 properties last week
25.3 percent increase from last week

Clackamas County
62 properties, including vacant land and commercial property vs. 86 properties last week
28 percent decrease from last week

Washington County
52 properties, including vacant land and commercial property vs. 27 properties last week
92.6 percent increase from last week

Clark County and the surrounding Vancouver Washington
13 properties, including vacant land and commercial property vs. 38 properties last week
66 percent decrease from last week

Yamhill County
11 properties, including vacant land and commercial property vs. 18 properties last week
39 percent decrease from last week

For more information on foreclosures in the Portland area go to PortlandForeclosure.com

One Million Homes in Foreclosure Process

The latest OCC and OTS Mortgage Metrics Report showed that difficult economic conditions resulted in higher rates of mortgage delinquencies and foreclosures in process, which increased to 8.5 percent and 2.9 percent of all serviced mortgages. So it looks like Portland and the Portland metro area bucked the overall trend by decreasing its troubled mortgages last month! Good news for us. To read the full report go to the OCC's website at the Department of Treasury.

Portland Declines in Troubled Property

PortlandForeclosure.com announced today that 258 properties located in Multnomah, Washington, Clackamas, Yamhill and Clark County joined the foreclosure list last week. "Week-to-week comparison shows a decline in troubled properties in all of the counties except for Clackamas," states Josh Leake, local real estate expert and mortgage loan officer.

The county break-down of foreclosures for the week of September 30th, 2009 include:

Multnomah County
87 properties, including vacant land and commercial property vs. 102 properties last week
14.7 percent decrease from last week

Clackamas County
86 properties, including vacant land and commercial property vs. 70 properties last week
22.85 percent increase from last week

Washington County
27 properties, including vacant land and commercial property vs. 40 properties last week
32.5 percent decrease from last week

Clark County and the surrounding Vancouver Washington
38 properties, including vacant land and commercial property vs. 49 properties last week
23 percent decrease from last week

Yamhill County
18 properties, including vacant land and commercial property vs. 15 properties last week
16.7 percent decrease from last week

For more information on foreclosures in Portland and the surrounding area go to PortlandForeclosure.com

Depression or recession?

A few bloggers are hashing out the semantics of depression and recession. Recently, I read a bumber sticker. For me, it sums up the debate nicely. "Recession is when you lose your job. Depression, is when I lose my job."

Millions of foreclosures coming...

Reuters reports that many more foreclosures are coming. Only 12% elgible homeowners have taken advantage of the loan modification program.

Hopefully they are wrong.

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Fannie and Freddie, one year after take over

It was hard to imagine the fall from grace of the two power house corporations. Their government backing was always assumed, but the day they were raided by the government gave many investors and homeowners pause.

Here we are one year after the take-over. Are things any better? It's hard to imagine the giants ever reaching their prowess again.

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Does China have a better lending system?

Huffington Post comments on the bailout and questions if China's 8 percent increase in productivity may stem from their requirement of banks lending to the people. Whereas in the US, the banks have received money with no requirement of lending out to the people.

Hmm....

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Our great recession

A record number of people collecting food stamps, a record number of people collecting unemployment records...

The list goes on and on. Is this the tip of the iceberg?

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Two banks increase loan modifications

In a great PR piece for Wells and BOA, the LA Times reports on their efforts to help struggling borrowers. One can only wonder if the two banks profited the most from putting borrowers into loans they couldn't afford?

The two banks claim they are helping more borrowers with the new Making Home Affordable Program than other lenders. BOA purchased Countrywide, which is one of the most prolific lenders that offered questionable loans. Shouldn't this be a walk of shame for the two lenders?

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Calm before the storm?

CNN reports that foreclosed properties decreased by 14% over July, but one must ask, is this the calm before the storm?

According to the article, "Sharga expects a spate of payment problems to start this fall as interest rates reset on some of the exotic mortgage products that proliferated during the boom. Option ARMs (adjustable rate mortgages) in particular will be a big problem.

A Fitch Ratings report released last week forecast that of the $200 billion in option ARMs outstanding, $29 billion will reset to fully amortizing loans by year's end, and another $67 billion will recast in 2010. The average payment increase will be 63%, or $1,053 a month -- an impossible hurdle for many borrowers.

These loans are named for the options they give borrowers. They can pay at a minimum rate, which does not even cover interest; at an interest-only rate; at a fully amortizing 15-year rate; or at a fully amortizing 30- or 40-year rate.

More than 60% of all option ARM borrowers, and more than 80% of all option ARMs issued in 2006 and 2007, often pay just the minimum amount, according to First American LoanPerformance."

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Poor turn-out for government help

Statistics are showing a poor turn out for the goverments, "Making Home Affordable Program." Less than 25% of potential homeowners are actually taking advantage of the program. According to a Wall Street Journal article, "Just 12% of eligible borrowers have started trial loan modifications under the Obama administration's $75 billion mortgage foreclosure prevention plan, according to a Treasury report released Wednesday."

Maybe the winter will bring more borrowers to the table. The program offers home owners two options; either modification or refinancing. For more information go to: http://www.portlandforeclosure.com/makinghomeaffordable.htm

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One couples frustration with a loan modification

We are getting many reports that the loan modifications are taking a long time to be processed. I know of a few people that have applied for a loan modification. Only one of the applications has been completed.

Unfortunately, people wait until the last minute to submit their applications. In many cases, it's impossible for the lender to react as quickly as needed. This isn't putting up an excuse for lenders. In reality, they have the technology to complete these rather quickly, but as we all know, banks and lenders in general profit from our mistakes. It's hard to teach an old dog a new trick.

The couple made a decent amount of money in this story. Like many, they were hit with unemployment.

What caused the credit meltdown?

A new book details what one scholar believes caused the credit crunch. John Taylor, a senior fellow at the Hoover Institution and a professor of economics at Stanford, tackles this question in a slender book called Getting Off Track.

According to the author, "The classic explanation of financial crises, Taylor observes, is that they are caused by excesses that lead to a boom and an inevitable bust. In this case, 'we had a housing boom and bust, which in turn led to financial turmoil in the United States and other countries.'"

FDIC pushes for mortgage help for the unemployed

CNN reports that the FDIC is requesting buyers of failed banks to give temporary relief to the unemployed. "The Federal Deposit Insurance Corp. said on Friday it is encouraging certain banks to reduce mortgage payments for the unemployed or underemployed for at least six months."

"With more Americans suffering through unemployment or cuts in their paychecks, we believe it is crucial to offer a helping hand to avoid unnecessary and costly foreclosures," said Sheila Bair, FDIC chairman, who has led the efforts to have loan modifications be based on income.

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Foreclosures top 18% increase over same period in 2008

RealtyTrac, an online tracker of Foreclosures reports that foreclosure filings are up 18% over the same period in 2008. Compared with July's numbers, August dropped by 1%.

The foreclosure filings include default notices, scheduled auctions and bank repossessions - 358,471 U.S. properties were total reported.

Ouch, that's a lot of homes!

Profiting from foreclosures...

Roger Nusbaum's article on Seeking Alpha discusses the industries to likely profit from the increasing foreclosure rate. One industry could be the storage business. Some homeowners who have a lot of personal items may downsize to a smaller apartment or go to live with relatives.





What are all these people going to do with their belongings? Well, Nusbaum suggests they will need storgae facilities. So one of the affected markets may be the storage industry.





What other types of industries will profit from increased foreclosures? In general I would suggest that all types of companies that can help new homeowners bring the foreclosures back into habitation. Not to say that all foreclosures are run-down, but here is a list of some common industries that should see an uptick of business:

• contractors including remodeling companies
• plumbers
• electricians
• disaster recovery contractors
• landscape architects
• painters

Hard times for commercial real estate

In the NY Times Article, Terry Pristin, comments that, "The mechanism set up to manage problems with the underlying mortgages is being put to the test for the first time. Some longtime real estate investors who profited from the ready access to mortgages made possible by securitization now complain that the system is impersonal and rigid. Instead of negotiating directly with a lender sitting across a table, Norman Sturner, a partner at Murray Hill Properties, a New York real estate company, said he had been forced to deal by telephone with “a third party sitting out in the Midwest” who seemed indifferent to his problems."

Walking into any bank and getting approved for a loan is no longer reality To get financing in today's market, you will need to work with experienced consultants that have existing relationships. Here's to a speedily recovery.

Pending home sales hit another increase

According to CNN, more Americans signed sales contracts to buy homes in July than in June, marking the longest streak of monthly increases on record. CNN continues, "The pending home sales index from the National Association of Realtors rose 3.2% in July after rising by 3.6% in June. That's 12% higher than July 2008, and it marks the sixth straight increase since record-keeping began in 2001."

Good news!

8.3% foreclosure/delinquency rate in Oregon

Ryan Frank at the Oregonian blogs, "1 in 12 Oregon mortgages delinquent: Oregon's rate of troubled mortgages hit their highest point since record keeping began in 1979, according to the Mortgage Bankers Association's second quarter report. (The report came out while I was away but this is the first time I've had a chance to dig through it.) About 8.5 percent of Oregon's 633,000 mortgage holders were at least 30 days late in the second quarter. The state's previous high was 7.7 percent in 1985. As bad as Oregon is, it still beat the national averages. Oregon had the 43rd highest rate in total delinquent mortgages."

Good information! Remember that the total 8.3 adds 5.87% delinquencies plus 2.59% foreclosures.

Home rentals/home shares increase

In a down economy, it's no suprise that homeowners are doing everything they can to stay afloat. A recent study by Allstate Insurance shows an increase of rental use by more than 27%.

The Wall Street Journal discusses renting out your home. Among a few revelations, the idea of renting your home until real estate values rebound may not be as sound as you think.

Do we need another bailout?

The rate of real estate delinquency has increased and caused one writer, James Rickman, to question whether we need another bailout.

The "ripple effect," means that more than 150 publicly traded lenders own nonperforming loans that equaly 5% or more of their value and holdings. At this level, former regulators say can wipe out a bank's equity and threaten its survival.

More banks may be up on the chopping block!

July sales up in Portland!

What a great way to start the weekend! DQNEWS reports a jump in home sales for the month of July in Portland!

Portland Region July Home Sales
Portland region home sales jumped in July, marking the first year-over-year increase in sales for any month since early 2006. The surge in activity was strongest for homes selling below $300,000, and the shift toward more sales of lower-cost homes helped push the median sale price down nearly 2 percent from June and down 13 percent from a year ago, a real estate information service reported.

A total of 3,375 new and resale houses and condos closed escrow last month in the Portland-Vancouver-Beaverton metro area (see included MSA counties below). That was up 9.3 percent from June and up 5.8 percent from a year earlier, according to MDA DataQuick of San Diego, Calif. The firm tracks real estate trends nationally via public property records.

The number of homes sold in July was the highest for any month since August 2007, when 4,242 sold. July's year-over-year sales gain followed 14 consecutive months where sales were at a record-low level for that month since at least 1994, when DataQuick's complete (all home types) Portland region sales statistics begin. In addition, up until July sales had fallen on a year-over-year basis for 40 consecutive months.

Mirroring a trend seen across the West, foreclosed properties continued to play a meaningful but lesser role in the Portland resale market last month. Foreclosure resales - homes resold in July that had been foreclosed on at some point in the prior 12 months - accounted for 14.2 percent of all resales, down from 16.4 percent in June and down from a peak of 18.9 percent in March. The July figure was the lowest since it was 10.1 percent last October, and it remained well below levels seen in many other major Western markets, where foreclosures accounted for 40 percent or more of all resale activity.

The regional median price paid for all new and resale houses and condos combined in July was $240,478, down 1.8 percent from $245,000 the month before and down 12.6 percent from $275,000 a year earlier. July's median was 16.7 percent below the peak $288,858 median in August 2007.

Portland continues to post some of the nation's lowest price declines - from a year ago and from the cycle's peak.

The median price paid last month for resale single-family detached houses rose on a month-to-month basis for the third consecutive month, to $249,925. It was down 10.7 percent from a year earlier and was 15.6 percent below its August 2007 peak.

Another price gauge, the median price paid per square foot for resale detached houses, rose for the third consecutive month: Buyers paid a median $148 per square foot in July, up slightly from $147 in June, but still down 14.7 percent from a year ago and down 20.8 percent from the $187 peak in June 2007.

Last month about 37.5 percent of all Portland-area buyers used government-insured FHA loans, a popular choice among first-time buyers, according to an analysis of public records. Absentee buyers, including many investors, made up 13.7 percent of all purchases - a relatively low percentage in the West and a reflection of the relatively small number of deeply discounted foreclosures on the market in Portland. In addition to investors, absentee buyers include second-home buyers and any others who indicated at the time of sale that the property tax bill will be sent to a different address.

DataQuick's Portland area statistics reflect sales in Clackamas, Multnomah, Washington and Yamhill counties in Oregon and Clark County in Washington.


Portland-Vancouver-Beaverton, OR-WA MSA*

Number of sales Jul-08 Jul-09 %Chng
Resale houses 2,450 2,697 10.10%
Resale condos 235 240 2.10%
New homes 505 438 -13.30%
All homes 3,190 3,375 5.80%

Median sale price Jul-08 Jul-09 %Chng
Resale houses $280,000 $249,925 -10.70%
Resale condos $179,700 $169,500 -5.70%
New homes $282,500 $237,000 -16.10%
All homes $275,000 $240,478 -12.60%

*Data reflect sales in Clackamas, Multnomah, Washington and Yamhill counties in Oregon and Clark County in Washington.

Media calls: Andrew LePage (916)456-7157

Copyright 2009 MDA DataQuick Information Systems. All rights reserved.

Even the Brits are shouldering the bill for the banking industry

London's Guardian reports, "Banks are significantly overvaluing assets to be included in the government's insurance scheme, which could leave the taxpayer footing the bill for any shortfall, experts have warned."

Well, at least we are not the country with financial difficulty. LOL.

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Personal guarantees can sink the ship

Imagine having a large ship with different sections; one section gets pierced and water floods in. If you've planned correctly, your ship won't sink, because the water has only flooded one bulkhead. Now if you forgot to close your hatch door, or didn't have the foresight in planning for such an occassion, you're floating to the bottom now. It's been nice knowing you!

Personal guarantees to borrow a metaphor from John Malone, can blow-up and sink the ship. On larger commercial loans, some lenders require personal guarantees. Smart investors during easier credit markets always seek to limit their personal guarantees. Dima Berdiev at Inc. Magazine sums up personal guarantees well:

"What is a personal guarantee?
First, a personal guarantee is an unsecured promise from an individual to make loan payments when a small business is not able to do so. Did you notice the word “unsecured”? This is a promise that is not backed up by a specific asset, such as your personal residence, in which case, the asset would be considered collateral.

Why do lenders need it?
This is the question every small business owner wants to hear an answer to, but many lenders are not comfortable spelling out why. The answer is that a personal guarantee is an added assurance that you are serious about your business--and most importantly--serious about repaying the loan. "

Nadav Manham had a great take on personal guarantees, business and financial planners, "[what] leads someone to expose their own money to that kind of risk must make you suspicious about what they are exposing your money to."

What brings about suburbia?

Bryan Caplan, in his piece, "Is Suburban America the Product of Regulation?" discusses some early thoughts on the developing suburbia. The question he ponders, is Suburbia a product of regulation and zoning? Or is it the ideal living situation sought by all?

Well, my two-cents suggest that it's both; a product of the environment and and the people.

Even famous celebrities get into foreclosure problems

Famed photographer to presidents, celebrities and the rich finds herself in a problem today. She needs to repay a $24 million dollar debt or she will no longer own her several properties or rights for future photography billings.

Wow, hard to believe, someone would give that type of collateral. Huffington Post sketched a good piece about Annie Leibovitz. It's sad to read of any one having financial difficulty, but suprising with such gifted individuals such as Mrs. Leibovitz having problems.

Commercial construction loans = trouble

Tom Lindmark comments on a NY Times article about commercial construction loans held by FDIC banks. The report indicates that at the end of June about one-sixth of all construction loans were in trouble. There is more than half a trillion dollars of these loans. This is a major eye sore for the lenders.

Layoffs hurt young workers the most

A new study shows that the young are often most hurt by layoffs. Mike Schneider at the Huffington Post goes into details about the new trend. One thing is for sure; even some older employees are taking pay decreases and responsiblity decreases to keep working. With mortgages and a family, many workers are taking jobs below their experience and skill level.

In a recesssion, bringing home some money is more important that bringing in a lot of money.

Is the recession over?

Many parts of the country are improving, according to a new survey released by government. The findings indicate that the worst recession since the 1930s may be over. A CNN article goes on to report, "all but one of the Fed's 12 regions indicated that economic activity was "stable," showed "signs of stabilization" or had "firmed." The one exception was the St. Louis region, which continued to report that the pace of decline in economic activity appeared to be "moderating."

Looking ahead, businesses in most Fed regions said they were "cautiously positive" about the economic outlook."

So, cautiously positive? With so many people thinking about their finances these days, can we really say the recession is over?

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Relationships more important than ever

Getting to know your lender has never been so important as today. The Tampa Bay Business Journal discusses the change in finance and how lenders are scrutinizing loans more closely. With values decreasing, it's hard for banks to lend money, unless they have some relationship established. In many cases an existing relationship could mean the difference.

Many mortgage professionals have strong relationships with their investors. Working with a professional is paramount in these troubled times.

Is the US Banking system toxic?

We are all questioning finances these days. How can any one not look at their bills, job, savings and think, "Is this enough? Am I prepared for what is to come?"

Mansoor H Khan brings an interesting thought to the FDIC. Shut it down and transfer all loan risk to the private sector and move the handling of money over to a government run institution. In a sense, he is suggesting to remove all risk from money storage and allow private enterprise run the loans.

Unfortunatley, this would lead to high interest rates and new home ownership would sink to the lowest levels, but a new prospective is always welcomed. What do you think?

Is FHA the new Countrywide? the new subprime?

Nick Timiraos and Deborah Solomon at the Wall Street Journal just published an article detailing FHA default rates and market share statistics. It seems that FHA is taking over where Countrywise left off. Countrywide at one point was the largest mortgage lender in the nation. FHA increased it's market share from 2.7% to over 27% this last quarter.

The WSJ reported' "Rising defaults have eaten through the FHA's cushion. Some 7.8% of FHA loans at the end of the second quarter were 90 days late or more, or in foreclosure, according to the Mortgage Bankers Association, a figure roughly equal to the national average for all loans. That is up from 5.4% a year ago."

FHA is now the subprime of the mortgage industry. It will be interesting to see FHA develops.

Small investors grabbing deals

Investors all of the nation are snapping up investments as quickly as they become available. The Atlanta Business Chronicle reports that more deals below $5 Million are getting financed than larger transactions.

This could be due to either most of the sub $5 Million dollar loans are getting government backed loans. Or maybe banks are able to go off personal networth, inidividual profit and loss as well as tax return income.

Whatever the case, most larger transactions go off of leaverage and rairly have income covering them. This is why there are so many problems with large finance deals. Smaller deals represent less risk for lenders; in some casess the individuals borrowing are worth more than they are requesting.

The love-hate relationship with bankers and developers

Personally I've helped finance a few commercial transactions; from a hospital building to a rug store. It's interested to see how each lender has their own set of criteria. Although one might think that they all should use the same system of underwriting -- you would assume wrong.

During the economic difficulty we experience today, it's become no where so profound as the developers ability to borrower money. Tampa Bay Business Journal discusses this relationship. They coin a great saying, "Oh, what a difference a recession makes..."

Lenders growing more aggressive with struggling borrowers

Ryan Frank at the Oregonian did another piece on foreclosures in Portland. He said, "The uptick comes as lenders, which months ago had put a moratorium on foreclosures, have grown more aggressive with struggling borrowers."

For some reason, I don't remember the moratorium on foreclosures -- they might have not foreclosed on election day or some holiday, but an outright moratorium? All in all, this is sad news for homeowners. Getting a hold of your bank and negotiating a modification for those that can't refinance is a sure bet towards some relief.

Golf course gets hit with foreclosure

Even America's past time can't skip the new waive of financial trouble. Stone Eagle Golf Course in California's Palm Desert had a default filed against the course. This leads the way to a foreclosure.

Members are being asked for potentially up to $100k a piece to save the club. Ouch!

Judge brings Wells Fargo to the table

As most banks strutted before the Senate Banking Committee, parading their good deeds and modification programs, a few judges in the country are taking note.

Judge Randolph J. Haines of the United States Bankruptcy Court summoned executives at Wells Fargo to explain their inability to complete a modification for a homeowner. Their response?

This is another great example of a large company not following up on their commitment to loan modifications.

Is the recession over?

Bankers still see climb in foreclosures

According to the San Francisco Business Journal, "Treasury officials say less than 10 percent of delinquent borrowers eligible for government help have received assistance. The government envisions helping 4 million U.S. home owners avoid foreclosure over the next three years at a cost to taxpayers of $75 billion to successfully modify mortgages through its Home Affordable Modification Program. So far, 235,000 have been helped."

According to the statistics provided in the article, very few home homeowners have been helped. Does that mean that the banks were given money to help out and they are not using it? Or does it mean that the bank receives funds after helping homeowners?

SF Biz Journal reports the banks as saying, "now say they’re making strenuous efforts to modify loans. But they’ve also lifted their self-imposed moratoriums on foreclosures."

Housing far worse than advertised?

Blogger Barry Ritzholtz discusses housing in today's economy. He's not impressed by the National Association of Realtors numbers and blames them for spinning the truth. He reasons that the increase in sales price was limited to a small group of budget condos in eastern United States. He continues by saying the condos do not represent the economy and housing market in general.

Hmm..he sounds convincing. Thoughts?

Dreams of foreclosure haunt many

Not all people can escape their economic problems with sleep. A new study shows that many take their fears and economic woes into the bedroom. People actually have nightmares. One lady, in the midst of making a purchase offer for a new home, dreamed of negotiating with the seller.

Out of a dime-novel, it's a no brainer for this blogger. Of course we are going to extend our current wants, needs and desires into our dreams. Right? Well The NY Times did an interesting article on the subject. I just remember an old girlfriend that used to get mad at me for speaking of dreams. I always remember her reasoning. "Dreams remembered are never the dreams experienced."

I always understood her saying to mean that people usually have an alterior motive when they describe their dreams. Do you agree?

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Grant money for foreclosures

Wouldn't it be nice to live in a state with sunshine and beautiful weather every day of the year? Well, now Floridans can also take advantage of some Countrywide payout money. Florida was one of seven (7) states that sued Countrywide for their unethical practices. Funny thing, Countrywide, now Bank of America paid them off. Hmm... Only if Oregon had followed suit!

Too soon to call housing at a bottom?

Huffington Post's Alan Schram brings a great thought to the bottom theory, "
If you look at historical prices, the housing bubble started in 1997, when housing diverged from a historical range of average price of 12 to 14 times prevailing rents, dating back to 1953. It was 15.2 times by the end of the tech bubble in March 2000. After the Fed's reaction to the events of Sept. 11, 2001, the price to rent multiple of U.S. homes climbed to an unprecedented peak of 25.6 times at the end of 2005.

To revert back to the mean and work off the housing glut, prices will need to fall back to the historical range. We are not there yet."

Sounds good to me! Comments?

Subsidies going to subprime lenders

That's right, according to a Washington Post article, the Making Home Affordable program is giving incentives to the very lenders that created the credit crunch. Many of the subprime lenders that lent money during the hay day, are now getting paid to help modify and postpone foreclosures.

It's ironic. Banks and lenders in general make money no matter the situation. The article continues, "For example, J.P. Morgan Chase, Wells Fargo and Countrywide, which has been bought by Bank of America, are eligible to receive billions of dollars under the program, according to the report."

So how do we feel about that?

Empty spaces where buildings once stood

Portland has a few empty lots, just waiting to be developed. In most cases, the lots are already owned by developers waiting for the economy to rebound. Plans, ideas abound, but the funds seem to be lacking.

Architectual bloggers at A Daily Dose commented on the state of empty lots and developments in New York. It seems that empty lots in busy downtown neighborhoods is a national trend.

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I really appreciated the diligence of the Plum Tree team in making sure that everything went through without a hitch on my refinance. Josh was able to get me a much lower rate than I had expected. He obviously understands "customer service", something that can be rare to find these days. This is truly a professional group that I would not hesitate to recommend to others.

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More information on Plum Tree visit their website at www.plumtreemortgage.com

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Index shows first increase in real estate value in last 3 years

The Case-Shiller Index shows the first national price increase. According to the Huffington Post, "Home prices across most of the country have started to rise from the depths of the housing slump, a critical trend that will help stabilize the broader U.S. economy, according to new figures released Tuesday.

Nationally, prices in the second quarter posted their first quarterly increase in three years, according to the widely watched Standard & Poor's/Case-Shiller's U.S. National Home Price Index"

Foreclosures still climbing

Bankers see foreclosures still climbing close
The Bay Area’s surging loan delinquencies and receding home values are threatening to overwhelm a federal loan modification program that aims to stave off foreclosure for at least 500,000 homes nationwide by Nov. 1.

To read this full article go to, click here.

Foreclosure crisis is a health crisis states Philidelphia professor

Business Week reports on a PR release by a Philidelphia university that says, “The foreclosure crisis is also a health crisis,” says lead author Craig E. Pollack, MD, MHS, who conducted the research while working as an internist and Robert Wood Johnson Foundation Clinical Scholar at Penn. “We need to do more to ensure that if people lose their homes, they don’t also lose their health.”

Of course the two go hand in hand. If someone can't pay the most basic of needs, shelter, do you think they are taking care of themselves? Going to the gym religiously? or maybe buying low-fat, organic or healthy alternatives? No, of course not. We need to address people's basic needs. People who go through foreclosure most likely don't have health care. I wonder if any study was completed on linking the two.

Duh, right? Read on...

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Portland Foreclosure .com offers information for home owners, investors and first-time buyers on foreclosures in Portland and the surrounding four counties including, Multnomah, Clackamas, Washington and Clark County in Washington State.

Find fast, free and fun facts about foreclosure in Portland.

Go to www.portlandforeclosure.com for more information.

Tsunami of foreclosures?

Making Home Affordable, is it working?

President Obama's Making Home Affordable plan is well on its way towards maturity. The growing pains have been tough, but it sounds like a few home owners are being helped.

According to CNN, the Making Home Affordable Program is supposed to work this way: In return for billions of dollars in taxpayer bailout money, banks would offer loans that would reduce troubled borrowers' monthly mortgage payments to 31 percent of their income. To qualify, a homeowner must have an income and must live in the house, and that house can't be worth more than $730,000.

The Treasury Secretary even called most lenders this week to discuss how they need to divote more man power to getting this program into the hands of the people. Is it working? Time will tell.

For more information on the Making Home Affordable program, go to Portland Foreclosure's webpage dedicated to discussing the program at http://www.portlandforeclosure.com/makinghomeaffordable.htm

Read more from CNN's article, by clicking here.

Bernake back for another term

President O goes for a second term of Bernake behind the fed. This is no suprise given the current economic difficulties. Who would want to throw turmoil into the ecnomy with everything going on?

The real foreclosure picture

Ray from Seeking Alpha made great comments on the state of foreclosures in the nation. His comments dig down to some of the problems created by the credit crunch. One being, how interesting it is to see lenders limit their lending output now that they are forced to only lend out their own money. Whereas a few years ago, banks were allowed to lend other peoples money.

Being an orignator I feel that pointing to ownership is a strong and compelling argument, but it misses the mark. I originate loans and don't keep them. If we limited originating only to institutions that have funds to lend, we would drastically halt the lending community.

Another point he makes is that banks are so busy, they are having problems getting the foreclosured properties on the auction block.

Check out the full article online, by clicking here.
For more information on foreclosure, go to www.portlandforeclosure.com

Judge tells lenders to take a hike

The NY Times reports on a judge in Brooklyn that rejects foreclosures. If the lender comes in with faulty paperwork, he gives them the boot.

One commentator, by the name of oldtymelemonade on about a day ago made the comment, "That's not the way the law works as to paperwork. I'm all for keeping people in their homes, and these banks can go to hell. But the reason more judges don't do this is because this isn't how the law works... it doesn't matter if you have the paperwork. It should but it doesn't, not anymore, because of MERS. MERS legally operates in all 50 states. Also see their own website.

What the article is alluding to, but doesn't mention, is the use of nominees or servicers that act as agents on behalf of the holders of the notes.

MERS acts as the mortgagee of record on all mortgages that are registered with MERSCorp, Inc. The MERS System provides easy access to the correct loan servicer for loan payoffs and minimizes errors in the public records because of missing assignments. (Paperwork, etc.)

Here's why homeowners in 99.9% of the country where this judge doesn't operate are still fucked:

Fannie Mae, Freddie Mac, FHA and VA have approved MERS to be the Original Mortgagee of Record (MOM) by being named in the mortgage or deed of trust as the beneficiary. To accommodate this, such agencies published authorized changes to their Uniform Security Instrument for each state.

For example, the following or similar language may appear in the mortgage or deed of trust: "Mortgage Electronic Registration Systems, Inc. ("MERS"), solely as nominee for Lender, as hereinafter defined, and Lender's successors and assigns. MERS is organized and existing under the laws of the state of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. _ _ _ _ _ _ _ _ ("Lender") is organized and existing under the laws of _ _ _ _ _ _ _ _ , and has an address of _ _ _ _ _ _ _ _."

Once the mortgage, deed of trust, or assignment names MERS, any future transfer of the loan or servicing from one MERS Member to another MERS Member will be tracked electronically on the MERS System, and will not be shown in the local real property records.

MERS does not obtain title to or possession of the promissory note unless necessary under state law at the time of foreclosure.

Foreclosures

When MERS is the mortgagee of record, a foreclosure can be brought in the name of MERS in all states under the current state foreclosure procedures. This is a requirement regardless of whether MERS is the mortgagee or the loan servicer is the mortgagee.

Where necessary under state law to foreclose, MERS will secure possession or endorsement of the note.

Judicial Foreclosures

A judicial foreclosure can be initiated in the name of MERS, if MERS is the mortgagee of record. In most cases, by assigning the foreclosure judgment or foreclosure sale bid, title can pass directly to the true beneficial owner, which is typically a secondary mortgage market investor. In a handful of states, MERS can take title at the conclusion of the foreclosure sale and then execute a subsequent deed to the true beneficial owner.

Non-judicial Foreclosures

If the deed of trust or mortgage is assigned to MERS, you should be satisfied that state law allows an agent, such as MERS, to proceed with foreclosure (including the naming of a substitute trustee, where applicable). Since MERS is not the beneficial owner, it derives its authority to act from an agency agreement with the beneficial owner. That agreement with the beneficial owner allows MERS to conduct foreclosures on behalf of the beneficial owner. In some cases, MERS will purchase at foreclosure on behalf of the beneficial owner and then convey to that beneficial owner."

To read the full article on the NY Times, click here.
The read more commentary on the article, click here.

Fore more information on foreclosures in Portland, including the counties of Multnomah, Washington, Clackamas and Clark County in Washington State go to PortlandForeclosure.com

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Housing may be back, but one commentator thinks otherwise.

With subprime foreclosures hiting around 39.25% of originations, there are a lot of things to be worried about comments one author. With that said, bankruptcies have increased to over 35% higher than last year.

More info on the gloomy picture for the future, click here.

Fore info on Portland foreclosures go to http://www.portlandforeclosure.com

Housing back in action?

Prices stablize. US home sales are up. Inventories down.

Does this mean the recession is over, or is just a brief positive bump? I suppose no one really knows, but the scholars that will look back on this time and see what really happened.

The Individual Global Investor talks further about the housing recovery in their article, click here to read more.

Fore more information on foreclosures in Portland, go to http://www.portlandforeclosure.com

Big suprise! Foreclosure causes depression.

A study was recently completed in Philidelphia and the doctors concluded that foreclosure can cause depression. Was there any doubt?

Go to the article, by clicking here.

Fore more informaiton on foreclosures in Portland and the surrounding area go to http://www.portlandforeclosure.com

Welcome to the Portland Foreclosure Blog!

My name is Josh Leake and I'm the blogger behind the Portland Foreclosure Blog. I am starting this forum for a few reasons. I work in the mortgage industry and a few months back I was awe struck by a phone call I received. It was a single mother of two. She called everyone in the phonebook. She purchased her home years prior with her now deceased husband. I didn't ask much about her husband -- it just didn't feel right. I asked her how I could help. She replied and inspired me to start this blog.

She was three days away from the sale of her property on the county courthouse steps. She had lived through the foreclosure process. She cleaned her home of ten years, washed all the windows, made sure all the lights had fresh light bulbs. And she was trying to figure out, whom she should give her home's keys to. No, she didn't dismantle any of the property or sell the copper pipes to metal buyers. She cleaned it to the best of her ability and now wanted to give her keys to the next owner.

Foreclosure is not always about fraud or lies. In many cases, it's about someone down on their luck. It's your neighbor who lost a job or a spouse. I later learned that she hired a loan modification specialist. Did you know the State of Oregon calls them Loan Mobsters? According to the State of Oregon loan modification specialists modified a total of "0" zero loans in Oregon this year or last. I hope they are wrong.

After her long story, I asked her a few thought provoking questions. Did you contact your existing lender. Her response was that it was HSBC and she was unable to reach anyone who spoke English. With three days to her sale, I wasn't sure if I could have helped her stop the process. Maybe I should have tried to do more, what I suggested was that she contact the lender to work out a modification. But in reality, she had already given up.

So, it brings me to why I'm starting PortlandForeclosure.com and the Portland Foreclosure Blog. Information is powerful. If i can inform one or two people with my knowledge and experience, maybe it will help them stop their forclosure process. But also, if a mother of two can walk-away with no anger or spite, maybe it's ok for the next owner to pick up where she left off. I have to imagine that there is good karma in the home she left. Here's to the family of three in their new adventure. May they be happy and properous.

Thanks for your comments and suggestions. Remember, it's just a house. Your health and happiness is so much more important. And to all my friends in the industry, please contact me, I'd love to get you involved!

Citi mitigatations up 29%

Citi's Mortgage Mitigation Rises 29%
Citigroup reported a 29% increase in the number of mortgages it mitigated to prevent foreclosure in the second quarter from the first period.

To read the full article, click here.

PortlandForeclosure has lots of information on foreclosures in the Portland metropolitan area.

Guilt and foreclosure

I watched a show recently on debt collectors in Europe. It seems that if you don't pay your outstanding bills, the banks or people that lend you money actually dress up in wierd clothing and follow you around. In a sense, they guilt people into paying off their debt.

USA Today discusses this and more, click here for the full story.

More information on Portland Foreclosure available at http://www.portlandforeclosure.com

Keep your home, even though you've lost your job

MarketWatch disusses prospects of being jobless with a home. And few words sting like the ones that inform you that you're being laid off -- especially today, with jobs so hard to come by. If you're a homeowner, the blow of a job loss can be even worse.

The article goes on to reveal that the amount foreclosures because of subprime lenders is rapidly decreasing. The foreclosures we see today are individuals with prime loans that have lost their job.


For more information on Portland Foreclosures or about the foreclosure process, go to www.portlandforeclosure.com


To read this full article, click here.

Four Types of Foreclosure in Oregon

PortlandForeclosure.com adds article about the four types of secured debt on real property in Oregon. The four common types of liens are:

• a trust deed
• a mortgage
• a land sale contract
• an involuntary lien

Foreclosure procedures differ depending on the type of lien involved. To read more, click here.