The number of properties under foreclosure listings in Staten Island and the number of homes that received foreclosure-related filings in 2010 dropped by 22% compared with the previous year. A total of 1,846 filings were posted in the area, down from the 2009 total of 2,361. Defense lawyers and industry observers, however, cautioned that in 2011, foreclosure numbers will start rising again as lenders and their attorneys continue where they left off.

They added that the number of homeowners who are not paying their loans has not gone down and is practically the same number as the one recorded half a year ago. Analysts explained that the drop is partly due to banks being more cautious in issuing filings for New York foreclosure listings following the documentation controversy that grabbed the headlines in the last quarter of 2010.

As a result of the controversy, judges in the region have become more vigorous in requiring lenders' lawyers to present documentation proving that their clients are the owners of the mortgage and that there is enough legal reason to issue a foreclosure home listings filing. The stricter rules that were put in place following allegations that lenders are using faulty affidavits in their foreclosure filings resulted in a huge decrease in December 2010 filings for the borough.

In December of last year, Staten Island posted a 65% decline in total number of filings compared with December 2009. The drop in the number of foreclosure filings and repossessed homes was also felt in New York areas that traditionally have high foreclosure volumes like Suffolk County, Brooklyn and Queens. Analysts stated that the decline in the last part of 2010 is only a temporary lull.

Most housing experts expect the number of properties entering foreclosure home listings to surge back up in 2011 as lenders and their lawyers become more used to the tighter rules. Those foreclosures that were put on hold due to the controversy are also likely to come into play in 2011, analysts added.

Foreclosure Home Listings in Staten Island Dropped in 2010 is a post from: Listings Foreclosures

The agency has been receiving federal grants to be used for foreclosure counseling. However, the increasing unemployment rate and mortgage defaults in the state are taking its toll on the agency’s funding.

Recently, the agency received $775,000 emergency funds, about 50 percent of what it usually receives. According to the agency, it needs to apply for more federal money and to find other fund sources in order to continue offering free mortgage counseling services to distressed homeowners who want to save their properties from listings of foreclosed houses.

Debbie Kidd of the Family Services said that the current situation is nerve-wracking and there is a great possibility that the agency will experience a shortage of funds by early next year. But she still encourages distressed homeowners who are in default and want to save their homes from foreclosures to contact the agency for free counseling help.

The agency uses the federal grant it receives to pay for the 22 foreclosure counselors on its staff. These counselors negotiate for reduced mortgage payments for struggling borrowers. Since 2007, the agency has already helped about 6,130 troubled borrowers across South Carolina.

Mayor Joe Riley said that many homeowners may save their houses from foreclosures and remain in their homes by working out their loan problems through counseling. He added that Family Services is providing good credible honest counseling for free.

Federal lawmakers have issued three rounds of grants for a total of $410 million to help homeowners hurdle the economic downturn and save their homes from foreclosures. The latest round of nearly $48 million funds could be the last federal grant that would be received by foreclosure counseling services for a while.

Homeownership advocacy groups are expecting emergency funding for mortgage counseling programs across the state and the rest of the country to simmer down as the overall economy improves. However, the groups are expecting foreclosures to continue to be serious problem in Charleston for the next two years.

On its part, Family Services plans to advocate for additional funding to continue providing assistance to homeowners who want to save their properties from listings of repossessed houses.

Listings of Foreclosed Houses to Rise as Counseling Funds End is a post from: Listings Foreclosures

In August, notices of defaults in San Diego County dropped to 2,658 notices, a nearly 20 percent drop from 3,318 notices in July and a 6.7 percent decrease from notices in August last year. It also marked the lowest number since November 2008.

Mortgage analysts however said there has not been a slowdown in the intensity of distress suffered by borrowers. The delinquency rate is still rising and the number of defaulting borrowers unable to pay their arrears continues to rise.

Typically, the analysts said, the banks file notices of delinquencies after 2 or 3 months of missed payments and then proceed with foreclosure within 6 months from the first missed payment.

According to the analysts, the decline in default and foreclosure notices may have been driven by the increased pressure from government agencies and housing advocates for more loan modifications and the increased efforts to complete short sales to avoid house foreclosed listing.

But based on initial data, about 50 percent of borrowers who have obtained loan modifications have not been able to sustain payments because of reduced income, job loss, existence of other personal debts and family problems.

There are also reports that many modified loans have not reduced monthly payments, but instead increased them because lenders have added unpaid balances and other fees to the principal.

Many other monthly payments have also increased substantially after modification because these loans are originally option adjustable rate mortgages which featured very low monthly payments. Adjusting from very low monthly payments to higher levels but typical for conventional loans is certainly difficult for many borrowers.

Norm Miller, a professor of real estate at the University of San Diego, said that the improving default and foreclosure numbers may be reflecting the slight improvement in the unemployment situation. He explained that the jobless rate in San Diego in August remained unchanged while the nationwide and statewide rates increased.

In addition, the shift in foreclosure and default trends also occurred in the type of communities affected. While foreclosures slowed in moderate-income areas targeted by subprime lending, the pace of house foreclosed listing is now rising in higher-income communities where most houses were purchased with prime loans.

House Foreclosed Listing Slowing in San Diego amid Defaults is a post from: Listings Foreclosures

TALF was designed to boost lending in the commercial property sector. According to analysts, TALF has been able to lower the costs of consumer borrowing and to rejuvenate trading in asset-backed securities markets.

With support from the Treasury Department, the Fed extended TALF for new commercial mortgage-backed securities to June 30 next year and TALF for new asset-backed securities and legacy securities backed by commercial properties to March 31 next year.

The Fed said it decided to extend TALF because of the continued weakness in the markets for CMBS and ABS backed by business and consumer loans. In recent weeks, lawmakers and the commercial property industry have been calling the federal government to help the commercial property sector, which has been struggling from vacancies, foreclosures, tight lending and declining values.

Scott Buchta of Guggenheim Capital Markets said the extension indicates that TALF has been effective in improving the securities markets and that federal officials recognize that the asset-backed markets are still struggling.

Real estate analysts said the commercial property sector is being clobbered by declines in revenues from office, apartment and retail buildings. In recent weeks, the commercial real estate sector has been pointed out in many news items as the next sector to collapse because of the lack of lending for property investors and developers whose loans are due this year.

Lenders have been hesitant in refinancing commercial property loans taken out during the boom with rosy revenue expectations. Since the meltdown, revenues from commercial real estate have been falling and prices now are 35 percent below their level in October 2007. Developers with maturing commercial loans had to renegotiate with their lenders or succumb to bankruptcy or foreclosure.

Mall-owner General Growth Properties blamed its failure on the investment of its loans in CMBS.

Additionally, the Fed said federal officials had considered the call to extend the TALF to residential mortgage securities and other types of collateralized securities, but did not pursue it because these types have been receiving help from the Treasury Department’s public-private investment program. However, the Fed said it will reconsider its decision if conditions warrant an extension to other types of securities.

Fed Extends TALF to Help Save Commercial Properties is a post from: Listings Foreclosures

The number of commercial and multifamily loans increased by 50 percent from the first quarter, but decreased by 54 percent from the second quarter of 2008 and dropped by 83 percent from the peak second quarter level in 2007.

Jamie Woodwell, vice president for commercial property research at MBA, explained that traditionally second quarters show increases in commercial loan originations. He added that the substantial rate of increase means that multifamily and commercial lending slowed down in the first quarter.

Compared to the second quarter of last year, the 54-percent decrease was an overall representation of decreases in loans for various commercial property types. Loans for office buildings decreased by 81 percent, loans for hotels dropped by 77 percent, loans for medical buildings fell by 70 percent, loans for industrial buildings dropped by 65 percent, loans for retail properties decreased by 51 percent and loans for multifamily properties fell by 21 percent.

Significant decreases were also experienced in loans classified by investor types compared to the second quarter of 2008. Commercial bank portfolios dropped by 83 percent, loans for commercial mortgage-backed securities conduits fell by 57 percent and loans for life insurance firms fell by 54 percent. Only loans for government sponsored enterprises increased, with an uptick of 2 percent.

Compared to this year’s first quarter, increases were experienced among loans classified by investor types. Loans for life insurance firms rose by 46 percent, loans for GSEs climbed up by 39 percent and commercial bank loan portfolios increased by 6 percent. Loans for CMBS conduits rose by a staggering 471 percent.

Compared to the same quarter, loan originations for retail properties increased by 93 percent, loans for multifamily properties rose by 73 percent, loans for office buildings increased by 28 percent and loans for industrial buildings climbed up by 46 percent. Loans for hotels and medical buildings increased by significant percentages, with medical property loans rising by 173 percent and hotel development loans increasing by 129 percent.

In a related report, commercial property sales involving institutional investors fell by 18.1 percent in the second quarter from the first quarter and down by 32 percent from the second quarter of 2008, according to the Massachusetts Institute of Technology Center for Real Estate.

Commercial Property Loans Down from 2008, Up from 1st Q is a post from: Listings Foreclosures

The senators called on Secretary Geithner to step up pressure on lenders to help distressed homeowners in order to stop the continued growth of foreclosed home inventories in many areas.

The open letter, posted on the web site of the U.S. Senate Banking Committee, said that large numbers of troubled homeowners are not getting responses from their lenders despite following instructions and submitting needed documents. There are a lot of cases of documents getting lost and loan modification processes discontinued because of lack of authorized personnel to work out with borrowers.

Christopher Dodd, chairperson of the Banking Committee, and 18 other senators called on Secretary Geithner to ensure that mortgage lenders and servicers are providing real relief to distressed homeowners. They reiterated that the recovery and stability of the U.S. housing market cannot be achieved if repo home inventories continue to get filled.

Senator Jack Reed reminded officials that mortgage servicers and lenders need to recognize their obligation to help contain the foreclosure problem because they were rescued with taxpayer money. Besides, as many other housing analysts have argued, the mortgage industry contributed to the foreclosed home problem because they did not implement responsible lending regulations.

The country’s biggest mortgage lenders and servicers, including Wells Fargo, Bank of America and JPMorgan Chase, have received rescue money from the U.S. Treasury to prop up their capital levels.

It has been four months since the Obama administration launched its Making Home Affordable program, but it has not monitored well the progress of its program. It does not have accurate figures on the number of units it has saved from foreclosed home inventories.

Nevertheless, the U.S. Treasury Department recently a report showing that almost 200,000 homeowners were offered with affordable repayment schemes since the launching of the program.

In the open letter, the senators pointed out the finding by the National Foreclosure Mitigation Counseling Program that loan modification and refinancing applicants wait for about 45 days to 60 days before they get a response from lenders.

According to researchers at the Center for Responsible Lending, about 2.4 million borrowers are in danger of foreclosure this year. Lenders therefore need to step up their loan modification activities to contain foreclosed home inventories.

Senators Urge Geithner to Solve Foreclosed Home Problem is a post from: Listings Foreclosures

MBA lowered its home mortgage lending forecast for the year 2009 by 27 percent because of expected slowdown in home loan refinancing.

The bankers said they now expect only $2.034 trillion worth of home loans approved throughout 2009 for single- to four-family houses, a big drop from their $2.780 trillion forecast announced in March. In March, when mortgage rates kept falling, expectations were high among bankers and real estate professionals that large numbers of homebuyers will obtain loans and that homeowners will refinance under the federal repo property prevention program.

In 2008, loan originations reached $1.617 trillion, a significant drop from the total of $3.812 reached in 2003, the year a steep drop in mortgage rates led to record loan refinancing numbers.

In April and May, many homeowners were enticed to refinance their loans under the federal repo property prevention program because of record low mortgage rates – less than 5 percent – during these months.

Recently however, mortgage rates increased to around 5.25 to 5.5 percent for fixed-rate 30-year traditional mortgage loans for borrowers with excellent credit records. An increase in mortgage rates lowers the number of homeowners who could gain from loan refinancing.

In the meantime, the bankers observed that the volume of loan refinancing under President Obama’s repo property prevention program has slowed down due to the uptick in mortgage rates. The loan refinancing portion of the federal program was meant to help homeowners whose home loans were guaranteed by either Fannie Mae or Freddie Mac.

The bankers contend that while more loan refinancing applicants under the federal repo property prevention program could increase in the coming months as more helpful initiatives are launched by administration officials to step up the program, they could not find other factors that would increase home loan refinancing to the level they originally envisioned.

They added that the rise in mortgage rates is expected to discourage hesitant homebuyers to pursue home purchase plans while the drop in home prices would reduce the book value of home loans.

Last week, rates for fixed-rate 30-year conventional home loans increased to an average of 5.42 percent, an increase from the average 5.38 percent the previous week. Housing analysts are concerned that the rise in rates would discourage troubled homeowners to refinance under the federal government’s repo property prevention program.

Bankers Cut Forecast despite Repo Property Prevention Plan is a post from: Listings Foreclosures

The analysts said that the Obama administration’s Making Home Affordable program was crafted to address the issue of subprime lending, which was considered the main cause of the first flood of foreclosure auctions.

But most borrowers applying to get help under the government foreclosures program are being rejected because their reduced monthly income do not qualify them for loan modification schemes.

Michael van Zalingen, head of homeownership services at the nonprofit group Neighborhood Housing Services of Chicago, said that the government foreclosures program was designed around the subprime lending model and not the unemployment model.

Van Zalingen said that while the government foreclosures program gives cash incentives to lenders to lower monthly payments to 31 percent of borrowers’ monthly income, around 45 percent of over 900 borrowers his organization had counseled in two recent events do not have adequate income to make their monthly loan payments. Even if the borrowers’ mortgage rates were reduced to 2 percent and their loans were extended to longer terms, the reduced monthly payments would still get unpaid because the borrowers do not have the income to make the payments.

Van Zalingen also said that around 27 percent of homeowners who called the Hope Now hotline from April to June were unemployed, an increase from the 9.7 percent of callers in last year’s second quarter.

Federal officials running the government foreclosures program said they are currently evaluating the program and are considering ways to address the unemployment problem.

One of the schemes being considered is a forbearance scheme that would enable homeowners to defer monthly loan payments while they find jobs.

Federal officials also said they are considering giving additional incentives to lenders to work out forbearance schemes for unemployed borrowers who have good chances of re-employment.

Other suggestions being considered are provision of short-term loans for homeowners who have been laid off, provision of funds for missed monthly payments for a limited period of time and provision of some leeway to borrowers who are getting re-employed soon.

However, despite the unemployment problem, according to Obama administration officials, the government foreclosures program has been getting positive results. They said over 200,000 mortgage loans have been modified and that 20 mortgage servicers have been increasing their efforts in working out affordable payment schemes for borrowers.

Plan to Craft Government Foreclosures Scheme for Unemployed is a post from: Listings Foreclosures

The LNHS has experienced a rise in visits and telephone calls from distressed homeowners who are at risk of losing their houses to foreclosures.

The housing assistance agency aims to reach a great number of distressed borrowers to help educate them about how to avoid and deal with foreclosures. According to LNHS’ Marie Morse, most troubled homeowners wait for about a week before they make contact with the housing assistance agency to ask for advice on how to save their homes from foreclosure.

Morse said that most homeowners are embarrassed about their financial situation and do not want other people to know about their predicament. She explained that the free workshop that LNHS will sponsor is not just for troubled homeowners who are on the brink of losing their distressed properties to foreclosures but also for those who want to be prepared in case they lose their jobs.

She added that the agency wants to give people advanced knowledge and to teach how to deal and cope with life changing situations such as foreclosures and unemployment.

The workshop, entitled “Buying time if your money is running out,” will be presided by Home Ownership Matters LLC Founder and President Mildred Wilkins. According to Wilkins, almost everyone is currently feeling the impact of the economic crisis. However, she pointed out that there are some strategies that people can use to cope with the crisis.

She said that those who will participate in the workshop will learn why bankruptcy is not a way to avoid foreclosures. She plans to provide tips to participants on how to extend the family’s income, such as reducing household expenses and grocery shopping costs.

Meanwhile, Morse said that the LNHS has hired a full-time and a part-time counselor to handle requests for help over the telephone. The housing assistance agency serves nine counties in Indiana and is providing counseling to nearly 200 individuals a year.

On the other hand, Morse noted that there is so much pressure on individuals who lost their jobs, especially to homeowners who had been paying their mortgage payments for a long time. She said that five years ago, most people who came to the NHS were seeking counseling on mortgage rate adjustment. Now, most of them are seeking help to avoid repossession houses.

Workshop on How to Avoid Repossession Houses is a post from: Listings Foreclosures

The foreclosure lawsuit filed against Monroe is the third pending case against companies affiliated to him in South Florida. According to Monroe, he is willing and prepared to file a Chapter 11 bankruptcy to protect MPG Parkland and force a workout.

Monroe said that he hopes Bank of America will offer the property to another investor. He pointed out that banks are not willing to work out an agreement that will stop foreclosures.

Since 2008, the almost 90,000 square feet Parkland Commons has leased out only 65 percent of the shopping area to tenants, including Publix, Renaissance Wellness Day Spa and Mercantil Commercebank.

The shopping center is situated at Trails End and North University Drive in a 22.8-acre area that is partly undeveloped.

The foreclosure lawsuit filed by the Bank of America stemmed from MPG Parkland’s mortgage loan which was modified in 2007 at about $31 million. The lawsuit also named as defendant Trisail Funding Corp., a company that provided MPG Parkland a mortgage amounting to $4.3 million in April 2008.

Monroe explained that he stopped paying the interest of his Bank of America loan because he had difficulty leasing the shopping center’s space and the rental payments were not enough to cover the monthly mortgage.

He said that a potential tenant was interested in renting a space at Parkland Commons for a restaurant but the Bank of America refused to fund the improvements needed to prepare the space for occupancy. Thus, Monroe added, he could not start collecting rental fees because no development is taking place at the space that is to be rented.

Aside from Parkland Commons, Monroe is also a defendant in pending lawsuits of foreclosures filed by Wachovia Bank against Coral Landing III and by BankAtlantic against Quantum Village.

Last month, TW Plaza Holdings acquired the delinquent loan on Coral Landings II located in Coral Springs with a deed in lieu of foreclosure.
Prestige Group is also the owner of shopping centers located in North Miami Beach and Jupiter. Monroe said that the North Miami Beach facility is having a problem with its lender but is not yet in danger of being added to REO property listings.

REO Property Listings Poised to Add a Victim in South Florida is a post from: Listings Foreclosures