Foreclosed Houses Haunt Home Builders

Foreclosed Houses Haunt Home Builders
Wall Street Journal

As the normally hot spring selling season begins, two houses in the Inland Empire region of Southern California sum up the big problem facing many of the nation's largest home builders.

One of the houses, a four bedroom built in 2006 that was seized by a lender in a foreclosure action, is listed for sale at $229,900. Meanwhile, in the same housing development, D.R. Horton Inc. is trying to sell a new house that looks nearly identical for $299,000, or 23% more.

In many markets, "we are no longer competing with other builders. We are competing with foreclosures," said Steve Ruffner, president of the Southern California division of KB Home.

Alan Greenspan: The Fed Didn't Cause the Housing Bubble
Wall Street Journal

We are in the midst of a global crisis that will unquestionably rank as the most virulent since the 1930s. It will eventually subside and pass into history. But how the interacting and reinforcing causes and effects of this severe contraction are interpreted will shape the reconfiguration of our currently disabled global financial system.

Foreclosure Reduction Agreement Reached in Connecticut
Hartford Courant

Governor M. Jodi Rell and the co-Chairs of the Legislature's Banks Committee - Senator Bob Duff and Representative Ryan P. Barry - today announced they have reached agreement on legislation that would make mediation a mandatory part of all real estate foreclosures in Connecticut, a move that could sharply reduce the number of borrowers losing their homes.
 
The new legislation builds on changes Governor Rell, Senator Duff and Representative Barry developed last year that expanded mediation services offered through the Judicial Branch.

New Online Assistance At HOPE NOW Website
MSNBC

HOPE NOW, the non-profit alliance of mortgage servicers, not-for-profit counselors, investors, and other mortgage market participants, today unveiled a redesigned and enhanced website (www.HopeNow.com) that provides an important new way for homeowners with mortgage concerns to connect directly with their mortgage servicer and receive help faster.