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Minorities Affected Most as New York Foreclosures Rise

Mich. Lawmakers Agree on 90-day Foreclosure Bill

The Associated Press

 

Michigan lawmakers struck a deal Wednesday to give homeowners facing foreclosure a 90-day window to stay in their house and potentially work out something with their lender. The legislation lets homeowners delay foreclosure proceedings for 90 days if, after getting a notice of foreclosure, they meet with a housing counselor and the bank.

 

 

Housing Starts Down on Multifamily Weakness

Wall Street Journal

 

Home construction unexpectedly fell during April, brought down by a large decline in apartment groundbreakings that offset a modest gain in single-family housing starts. Single-family starts climbed 2.8% to 368,000, after rising 0.3% in March and remaining flat in February. Construction of housing with two or more units dropped 46.1% to 90,000; within that category, groundbreakings of homes with five or more units -- or multifamily -- were 42.2% lower.

 

 

My Personal Credit Crisis

New York Times

 

If there was anybody who should have avoided the mortgage catastrophe, it was I. As an economics reporter for The New York Times, I have been the paper’s chief eyes and ears on the Federal Reserve for the past six years. I watched Alan Greenspan and his successor, Ben S. Bernake, at close range. I wrote several early-warning articles in 2004 about the spike in go-go mortgages. Before that, I had a hand in covering the Asian financial crisis of 1997, the Russia meltdown in 1998 and the dot-com collapse in 2000. I know a lot about the curveballs that the economy can throw at us. But in 2004, I joined millions of otherwise-sane Americans in what we now know was a catastrophic binge on overpriced real estate and reckless mortgages. Nobody duped or hypnotized me. Like so many others — borrowers, lenders and the Wall Street dealmakers behind them — I just thought I could beat the odds.

 

 

Anatomy of an Economic Meltdown

The Associated Press

 

How did it get this bad? For two years, economic turmoil in the United States throbbed from a few areas of isolated distress — dark bruises on a national map that was otherwise unscarred. Even the deflating housing bubble was confined mostly to areas like California's inland valleys, Las Vegas and Florida, while manufacturing communities in Michigan and the South struggled to keep workers in their jobs. The Associated Press Economic Stress Map, a new snapshot of our national pain, shows that the economy was hurting, but it didn't demand a nationwide lifestyle adjustment. Then came the autumn of 2008. Banks failed, Congress poured billions into hopeful fixes, the Dow Jones Industrial Average plummeted, and soon the regional misery began expanding nationwide.

 

 

More Signs of High-End Housing Trouble

Wall Street Journal

 

More housing pain may be on the way for high-end housing markets that had until recently avoided the worst of the housing bubble. The Orange County Register carries a report Monday with a look at where foreclosures are and aren’t selling. Many of the California coastal areas are seeing higher rates of unsold foreclosure inventory, a sign that banks are less willing to take the kind of hit that they may need to in order to liquidate foreclosures.

 

 

Posted: Mon, May 18 2009 9:52 AM by Octavion

Comments

Georgi said:

Can't argue with that, Ditto.  The VA loan program is ralley good  decent loan limits, no downpayment required, no mortgage insurance.  The home must be in livable condition, however, and some of the foreclosures are pretty natty.One thing that the VA does not have is a VA rehab loan  one that would work quite well for these foreclosures.  They could do the same as they do for the NSP (Neighborhood Stabilization Programs)   provide a rehab grant for renovation that is a silent second mortgage.  Meaning they don't make payments on that grant, and it's only paid back upon a sale that nets the equity.  However if the equity isn't there, there is no personal judgments for the loss. The NSP program was for specific deteriorating urban areas, and the federal cash was doled out to the state, then to the appropriate counties.  For a VA program, it should not have boundaries.  If it's a Fannie/Freddie home, with a veteran buyer, they can work out the details that are similar.  They actually have a similar program for teachers/fire/police personnel  tho they have to live within a certain time/miles from their workplace.This may move it from Fannie/Freddie, but it just shifts it over to Ginnie  who holds the VA loans.  Thus it will not accomplish what Gary wants to do.  Then again, I don't see any way to accomplish Gary's base goal of shifting the majority of loans from the GSEs to private lending  simply because there is not enough.. if any.. private lenders who want this risk.Reply

# March 10, 2012 9:58 AM

Geethu said:

second point is that “backing off of some requirements” to make loans eseair to get is precisely the way we got into this mess from 1997 on.Some standards must be maintained.  My point was, there are a lot of investors with scores in the 600 s who have NEVER had a collection on their record.  That is what ought to be important when setting lending standards. It was only since the unnatural appreciation that the flipper/get rich quick off real estate boom began to take hold. That was not their fault; that was the fault of the government owning most of the loans (either directly or by guarantee) and then giving loans away to people who would not pay them back. If that’s not a money pit enough, the icing on the cake is landlord/tenant laws making eviction difficult, slow and expensive.This is a good point; and that is what landlords simply determine for themselves.  In Texas, it is eseair to get rid of a bad tenant.  As houses begin to be snapped up by investors in, say, Texas, but not Oregon; they either change their laws or they live with a lot of vacant houses. And I’ll tell you something else… an investor is more likely to let an investment home go south than the primary occupant, using it as their residence.Hence, you sell to investors who have no foreclosures on their record. So what makes you think there are financial enterprises, chomping at the bit to pick up securitized real estate loans these days anyway, when the housing is so unstable?This is the first step, getting the houses sold to investors, and then, selling these mortgages to the secondary mortgage market.  It may have to be done at a discount (which is a loss).  The idea, again, is to get these houses out of the government's hands, as they have shown themselves to be sorry players in these realm. if you want to get a loan using a private lender, or you have 10% down, I can send you on your way immediately… provided you have good credit scores and your income to debt ratios are in line. Income to debt is the key.  Many investors do not show a high income because they are pumping money back into their business (into these houses).  Besides, I am not sure if I have ever seen reasonable financing for an investor at 10% down (if there was, then I missed it).Reply

# March 12, 2012 10:19 PM
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