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Closing in on the Fight Against Foreclosures

CitizenSugar — Wed, 07 May 2008 03:00:21 -0700

The Federal Government, after reducing the interest rate at a historic rate, is now trying another method to bolster the sagging economy. Earlier this week, Federal Reserve Chairman Ben Bernanke endorsed a need for the government to intervene directly to reduce the amount of foreclosures continuing to sweep the nation’s housing market.

His plan is to call upon lenders to allow deep cuts on loan repayments or for the government to slow the pace of the foreclosures. The government’s actions then would be based on the fears of more widespread financial trouble. To see what he had to say, and whether the government should be bailing out homeowners, read more.

According to Bernanke:

High rates of delinquency and foreclosures can have substantial spillover effects on the housing market, the financial markets and the broader economy, therefore, doing what we can to avoid preventable foreclosures is not just in the interest of lenders and borrowers. It’s in everybody’s interest.

This will prompt many to question whether the government is in fact rewarding risky financial behavior by bailing out as well as overriding the legality of the contracts involved in the loans. So far the central bank has reversed an age-old policy to remain uninvolved in such matters by proposing rules to protect consumers from “unfair and deceptive mortgage lending and advertising practices”.

The new numbers indicate that trouble is wiping its feet on the welcome mat. Nearly two percent of America’s 50 million-plus mortgage borrowers were three months or more behind on their payments in 2007, up 50 percent since 2004. There have been 1.5 million foreclosure proceedings last year, up 50 percent from the previous year and that number is expected to climb this year.

Next week the House is considering a broad housing package that includes a $7,500 credit for first-time homebuyers, and bills to overhaul the FHA and more tightly regulate Fannie Mae and Freddie Mac. Are the economic ramifications of the mortgage mess big enough to require a bailout? Are we rewarding irresponsible borrowing by doing so? Are you more concerned with the impact on collapsing communities and the corresponding health risks from rampant vacant dwellings? Whose side are you on?

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NJ Woman Bakes Her Way Out of Foreclosure

SavvySugar — Thu, 23 Jul 2009 04:30:40 -0700

Mortgage apple cakes are the tastiest thing on the menu for one New Jersey homeowner. Angela Logan must make a $2,559.54 payment on July 26 if she wants to keep her home of 20 years out of foreclosure, and because of a successful bake sale it looks like she'll meet the deadline.

Logan cooked up the idea to sell apple cakes for $40 each in order to pay her mortgage, and as of Tuesday, she had more than 500 orders, including one from Hong Kong. A health official warned her that it's illegal to use her house as a commercial kitchen, but Hilton Hasbrouck Heights is allowing Logan to use its kitchen, where she's able to bake 10 cakes at a time.

The actress/stand-up comedian blames her financial troubles on a home improvement project that went wrong, and the fact that several of her paychecks were frozen when one of her talent agencies shut down. Logan is now studying to become a nurse to have a more secure career, and says she "won't stop baking until people stop ordering."

How Money Are You: Famous Home Foreclosures

SavvySugar — Tue, 17 Feb 2009 09:30:11 -0800

Millions of home foreclosures have resulted from Americans biting off bigger mortgages than they could chew, and even celebrities made money mistakes that led them to the brink of losing their homes to the bank. Some of them weren't able to turn things around and did in fact lose their homes. Do you know which celebrities have found themselves in the middle of a foreclosure mess? Take the quiz!

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Should This Extreme Home Makeover Family Be Forgiven?

SavvySugar — Wed, 30 Jul 2008 11:04:03 -0700

This is one Extreme Makeover: Home Edition story that may leave you with a bout of frustration rather than a waterfall of tears. Some of the 1,800 volunteers that worked night and day to build the Harper family's new four-bedroom home in 2005 are reeling with aggravation after learning the family's home will be auctioned due to foreclosure.

The donated materials used to build the home are valued at about $450,000, and the construction company donated an additional $250,000 for a home-maintenance fund and scholarships for the family's three kids. Rather than be satisfied with this generosity, the Harpers decided to test their luck and used the home as collateral for a $450,000 loan to start a construction business that ultimately failed.

The mayor of Lake City, GA, helped construct the home for his city's residents and had this to say about the unhappy ending: "It's aggravating. It just makes you mad. You do that much work, and they just squander it." Do you think they should be blamed for making a careless decision, or should they be forgiven for trying to continue bettering their lives?

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News Flash: California Foreclosures Jump 261 Percent

SavvySugar — Wed, 23 Jul 2008 08:02:17 -0700

Last quarter's real estate reports are in and the results aren't pretty. They revealed the number of foreclosures in California compared to the same time period last year rose 261 percent (no, that's not a typo). Such a dramatic situation comes with a scarily simple story: Buyers got into the housing market during the boom, usually financing their purchases with more than one loan, and have rather swiftly been crushed by the bust.

During the second quarter 63,061 homes were foreclosed, up 33 percent from the first quarter of this year. Home prices have continually fallen, making it difficult for homeowners to sell their homes and have enough to completely repay debt. Most of the defaulted loans were made between September 2005 and November 2006.

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Do You Know Anyone Whose Home Has Been Foreclosed?

SavvySugar — Thu, 24 Jul 2008 06:28:08 -0700

The number of foreclosures in California may have jumped 261 percent in the second quarter of this year, but it's certainly not the only state whose residents are suffering from the loss of their homes. RosaDilia had this to say about her brush with the issue:

I really feel for the people who are losing their homes. A good friend of mine just lost his home in FL despite his efforts in avoiding foreclosure. The home went down in value by 45 percent and he was so devastated when he had to move I almost cried.

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Gone Are the Days of the McMansion?

SavvySugar — Fri, 14 Aug 2009 04:30:24 -0700

US home foreclosures are still occurring at record rates. July's foreclosures were up seven percent from June and 32 percent from a year earlier - one in every 355 households with a loan got a foreclosure filing. The jump can be partly attributed to the rising unemployment rate as people lack wages to pay their mortgages.

The good news is that new homes being built are seven percent smaller (about the size of one average-sized room) than homes built in the last 15 years. Hopefully, the downsizing means some people are smartening up and not biting off more than they can chew.

Sarah Susanka, author of the book The Not So Big House, commented, "As more and more people build or remodel homes that satisfy in quality rather than quantity, there will be a huge shift in what we perceive as desirable." What do you think - will there be a permanent shift to more modest homes?

Front Page: Foreclosures Grow by 70%, US Hands Province to Iraqis, Pirate Attacks Up 75%

CitizenSugar — Thu, 23 Oct 2008 06:58:31 -0700

Foreclosures Grow by 70%:
The number of homes in a state of foreclosure grew 70 percent in the third quarter of this year, compared with the same time last year. Almost 766,000 homes received at least one foreclosure related notice between July and September. By the end of the year it's thought there will be a million bank-owned properties for sale, or a third of all houses on the market.

US Hands Province to Iraqis:
Iraqis have been given control of security of the province of Babil by the US military. This marks the 12th of 18 provinces to be given back to Iraqi control. Babil has seen much sectarian violence including a clash two days ago between militants and tribesmen which killed 15 people.

Pirate Attacks Up 75%:
On the Ukranian arms ship hijacked by Somali pirates, food and water are running low. So far only $1 million has been collected toward the pirates' initial $20 million ransom demand. Pirate attacks are up 75 percent this year off the coast of Somalia. A NATO flotilla is sailing to the waters now to begin anti-piracy operations in the next few days.

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Drinks on the House For Those in Foreclosure

SavvySugar — Fri, 18 Jul 2008 11:03:45 -0700

Bars usually don't have much to worry about during a tough economy, but some are reaching out to their communities with the friendly gesture of a free drink. Padre's Modern Mexican in Phoenix, AZ, isn't fresh in offering recession happy hours, but it's the first to give out a complimentary beverage to anyone who brings in a foreclosure notice.

Nobody has claimed their foreclosure drink yet but Padre's has other plans in the works to attract Phoenix's penny pinchers. The next promotion will extend free round-trip rides on Saturday nights so patrons don't have to use up expensive gas. Sounds like the making of a party bus a la my college town, but this promotion doesn't make me as uncomfortable as the foreclosure free drink special.

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Should Celebrities Rescue Homeowners Facing Foreclosure?

SavvySugar — Wed, 18 Jun 2008 06:33:40 -0700

Shaquille O'Neal's in-box has a couple thousand emails from homeowners across the country facing foreclosure in the near future. Word that a plan is in the works leaked out last week when Shaq visited Orlando City Hall to discuss a way for the basketball giant to help people stay in their homes.

The rough idea is that Shaq would buy the mortgages of people whose homes are in foreclosure, and then give the homeowner a new mortgage with more manageable terms. Curtis Cooper, an Orlando Realtor and mortgage broker working with O'Neal, relayed Shaq's sentiments: "He said 'Let's just go out and help as many people as we can.' He's sincere about it."

Should other celebrities follow this example to try and help the millions of homeowners facing foreclosure?

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