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National Mortgage Delinquency Rate Swells to 9.2 Percent in May

National Mortgage Delinquency Rate Swells to 9.2 Percent in May: LPS
Housing Wire, July 6, 2010

The national mortgage delinquency rate grew to 9.2 percent in May, up 2.3 percent from a month earlier and 7.9 percent from a year earlier, according to the latest report from mortgage performance data and analytics provider Lender Processing Services. As a result, Habitat, a Christian group founded 34 years ago in Americus, Ga., around a philosophy of constructing and rehabilitating homes for low-income families, was recently ranked as one of the nation's top 10 builders for the first time in a closely watched industry list compiled by Builder Magazine.


Charity Joins Top Home Builders' Ranks
Wall Street Journal, July 2, 2010

A dozen female volunteers gathered recently in this blue-collar Long Island town, enduring the heat to help form the entryway of an 1,100-square foot home for Cheri Sabolenko and her two young children. The Sabolenko house will soon join more than 5,000 other homes expected to be built, repaired and rehabilitated in the U.S. this year by a well-known addition to the upper echelon of America's largest home builders: the nonprofit group Habitat for Humanity International.


Condo Prices Plunge
Las Vegas Business Press, July 6, 2010

Prices at the Trump International Hotel & Tower have quietly tumbled this year in an effort to revive sales and reflect market reality. According to records kept by the Clark County recorder, Trump closed on 23 condominium hotel units during the first half of this year, with 14 priced between $155,000 and $185,000. This marks a 65 percent to 70 percent decline from the lowest price before October -- $520,000.


Finding Gold in Them Thar Foreclosures
Associated Press, July 4, 2010

If we're going to search for gold in the wreckage of the mortgage crisis, then 6:57 a.m. in front of 1009 W. Juanita Ave. is as good a time and place as any to start. The Cooper Ranch subdivision, 25 minutes from downtown Phoenix, is just beginning to stir. But when Casey Doran pulls up to his first foreclosure of the day, the tan stucco house has already seen a steady trickle of visitors.


The Morning After
The Economist, June 24, 2010

The idea that debt is a shameful state to be avoided has been steadily eroding since the 1960s, when a generation whose first memories were of the Depression was superseded by one brought up during the 1950s consumer boom. People were already used to buying houses and motor cars on credit, but suddenly a whole range of durable goods—TVs, fridges, washing machines—could be had on easy terms. Credit cards and charge cards came into widespread use. Buyers no longer had to scrimp and save to get what they wanted; they could have it now. As the range of desirable products grew, from Nintendo Wiis to iPhones, the urge to buy first and find the money later increased. In the current recession some borrowers have given priority to their credit-card and car loans rather than their mortgages. After all, they can usually find a new home to rent. But without a car many of them cannot get to work and without a credit card they find it hard to shop.

Posted: Tue, July 06 2010 8:49 AM by Octavion

Comments

Jeff said:

Listen idiot! A default on a loan is  NOT  a cmriinal offense. Due to the economy, lots of people lost their jobs and couldnt pay their mortgages. Your are right about  legal contracts , but the banks and lending institutions must honor their side of the contract as well which is governed by the UCC, federal, state and county laws. They have the bigger burden of making sure that when these loan contracts are bought/sold, that they make official recordings of these transactions. By law, they must pay the counties a recording fee, so that it is recognized by the law. The problems started when the mortgage/banking industry created a centralized-computerized system that bypasses these lawful proceedures. Once this system was up and running, the banks and lenders were buying and selling mortgages soo fast, that they disregarded the legal requirements when it comes to the contracts. Some, actually quite a few, banks even went as far as to change the numbers on contracts after the borrowers signed the promissory notes in an effort to  maximize profits. This didnt even faze them because they knew they were going to sell the loans fast and take profit. Its sort of like running a  pyramid scheme , the loan goes from one spot (lender) to another and the lenders are being paid each time as they transfer the loan from one to another. Eventually, the last lender  will  get caught holding a worthless peice of paper and cant collect. Why worthless, because the law wasnt followed at the beginning of the loan. Why do you think these lenders get rid of loans so quickly? They dont want to be the ones to not get paid thats why. So how do you stop this pyramid scheme from continuing? THE BORROWER MUST FILE SUIT! That's when the scheme will fall apart and the court will rule if favor of the borrowers as a punishment to the banking industry for violation of mortgage/land contracts. Again defaulting on a loan is not a cmriinal offense, but frauding the counties out of recording fees, forging documents, stealing equity and property are crinimal offenses.  Show the note  destroys the pyramid scheme so it must take place Period!

# March 11, 2012 5:54 AM

Samer said:

I need an answer QUICK!!!We are a 30something poucle raising two preschool-aged children in  Small Town U.S.A.  Our lender is a small, locally owned bank that over the years has had a pretty good reputation for helping out the  little man . But, we have been misled by them on a few different occasions thus, the reason for my desperate attempt  at a QUICK answer!First of all, our mortgage is comparable to the price of some new automobiles, rather SMALL if compared to the national average. We bought this place with big ideas and plans and now seems to be nothing more than a big HEADACHE! Nevertheless, it is HOME and we are not ready to give up on those  big ideas  yet Our first mortgage was financed for ten years at an adjustable rate of 6.75%. Roughly half way through, we took out a second mortgage for a roof and other major improvements. This 2nd mortgage was financed for a term of 15 years at a rate of 13.5% due to the fact that our lender encouraged us to file Bankruptcy only 3 years earlier! We had reconsidered fixing this  money pit  up and were in high hopes of dozing it down and replacing it with a new modular or double wide mobile home. Our then lender, who has since  retired , ASSURED us that if we could only file BK on several MEDICAL BILLS,  (NOT EVEN CREDIT CARD DEPT!!!_NONE,AS A MATTER OF FACT!) that that would enable us to qualify for this new IDEA we were pondering. He even went so far as to send us on a search for this new home and to keep it in a certain purchase amount. 75K-92K!!! We looked high and low and all the while kept in touch with him about the matter. Finally found our dream house that fell well within his range the DAY before we were scheduled to be in Bankruptcy court, I called him, once again JUST TO BE SURE it was the right path. Again,  he assured me that,  things looked great!  Two weeks after our court appearance, the manufactured home dealer is ring our phone off the hook wondering why they had not yet been contacted by our bank to  proceed  in the process of  buying our dream home. I attempted to reach my lender every day for a solid week. Each time I called, he was either with another  client  or off that day and they promised time and again to have him return my call A.S.A.P. Another week passed and I was sweating bullets. When I finally nailed him down all he could say to me was, quote;  We're just not going to be able to help you Julee. The BANKRUPTCY just threw a wrench into things.  I was so overcome by emotions that I couldn't even respond. THE BANKRUPTCY THAT HE SO ADAMANTLY ADVISED!!! Pure BETRAYAL was all we felt. A whole year of our lives wrapped up in the search for the right price range and all the $$$$ spent on our unnecessary BK that has since  been completely detrimental to our credit rating. We totally trusted this man and his advice and he, for lack of better words, SCREWED US OVER! Which  FINALLY brings me to my question My husband lost his job last year and drew unemployment for 9 months. During this time we were unable to afford our high 1st and 2nd mortgage payments and could only make partial payments. Late fees piled up and we got further and further behind. At one point the bank sent out the first notice by certified mail that we needed to bring that passed due amount current or they would proceed with beginning foreclosure. Panic set in and we ended up having to borrow from my in-laws to save our home. The bank agreed to accept half of the amount that was passed due and even after paying that we were drowning. My husband got called for a job out of the country and it looked as if our luck was turning around.I paid the bank HALF of every paycheck I received attempting to eventually get caught up. It was looking better. Then, my husband got sick and was flown back to the states unexpectedly. Didn't take long to end up right back in the same situation. He was off work for almost 3 months with NO income this time. Again, we received the letter. Which brings us current. Unable to borrow from dear ol' dad this time, we hung our heads in shame and FEARFULLY went to the bank in hopes of combining our 1st and 2nd mortgages, extending the years of our loans to at least 20, if not 30, in an attempt to lower our payments and be brought  current .In the past month of this ordeal, I was first told that our bank does not finance ANYTHING beyond 20 years (news to me) and that they would NOT extend ours beyond 15 no matter what. Our only hope was to DOUBLE our payments for a period of 6 months at which time the board would review our case and if we had been on time (not a day late) for those 6 months, they would CONSIDER bringing the balance current.This was their only offer. When we told them that it was almost impossible to double the payments, they asked what we were willing to agree to. When we told them our amount and even made a payment, they informed us that they were not even sure that the board would approve it! That they had a meeting scheduled for the next day and they would call us back and  let us know if we could come up with a work-out plan. A whole week went by with no response. Then, upon returning home one afternoon, there's a message on our answering machine from an appraiser requesting that we call her back to schedule an appointment that the BANK had ordered.Being as leery as I am with them, I looked at my husband and said, Are they doing this to benefit US or are they doing this to see if this place is worth REPOSSESSING???!!!This lady is coming Tuesday morning to do a full appraisal. I am so worried that the bank has bad intentions.My question is, DO BANKS EVER ORDER APPRAISALS FOR THEIR BENEFIT IN FORECLOSURE????? Your response will be greatly appreciated! Please forgive me for such a long sob-story!   Thank you for your time,  Julee

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