Foreclosure News – Foreclosure Warehouse.com

Last Tuesday, Justice Richard F. Braun, who is the judge of the State Supreme Court in Manhattan, has ordered the foreclosure sale of the famous Riverton Houses, a middle-class Harlem enclave in the middle of 135th and 138th Streets, from Fifth Avenue to the Harlem River, owing to its $240 million debt.

In 2005, under the leadership of Laurence Gluck, a company bought it at the time of the real estate boom with a plan in mind to make it a profitable rent property.

Harold Shultz, a senior member at the Citizens Housing and Planning Council states, “We’re about to see a wave of foreclosure sales throughout New York City, This is the first. For tenants, there is good news and bad news. Excessive debt will be eliminated, but they will be at the mercy of the auction process as to who the new owner will be.”

There are many such stories appearing on the foreclosure front. For Riverton houses, which are residents for many notable people, it is sad news of foreclosure. However, the concerned lawyers have a view on the auction that it is going to happen in March.

The area is huge with a seven hundred foot long glass mall that circles many of the 1228 apartments in the seven buildings. It will definitely be a valuable piece of property. Many doubt the result of the auction though there are quite a lot of applicants. It will be a challenge to meet the expectation of the lender, who is represented by Wells Fargo Bank.

Built in 1940 by Metropolitan Life Insurance Company, Riverton Houses were old heritage properties like Peter Cooper and Stuyvesant Town. In 1976, Riverton was sold to Adam Holland’s grandfather, Jack Holland, and then for just $12.5 million, it was sold to Charles A. Vincent.

Later on, Mr. Gluck of Stellar Management bought the property in 2005 for $135 million. After a year, he got a $225 million mortgage after refinancing it. From the property, he made a profit of millions of dollars that were adjusted with his initial investment of $44 million.
To increase the net income to $24million and to change the apartments in to market-rate rentals by 2011, he remodeled and decorated the buildings by outing new entry doors and elevators.

The net worth of Riverton Houses had dipped below $150 million. Due to become a defaulter in paying these debts, he opted to hand over the deeds to the bank to make it a foreclosure property.

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Foreclosures are affecting not only those residing in single-family houses but also the owners of commercial units. There are many such commercial foreclosures priced at record low levels available to buyers and investors. To do so one has to browse through the commercial property listings quickly. These are in great demand.

Commercial foreclosure listings:

The best way to find out commercial listings is on the Internet. Our site on the web will provide all the relevant data coming in from various sources. Searching for the same is not difficult. One can locate the property of choice within a specified area.

Some of the commercial properties can be bought during the pre-foreclosure stage. Here there is a bouquet of opportunities. Considering the gloom in the sellers’ market the lenders are more than eager to sell off the white elephants they are saddled with. Properties in the pre-foreclosure stage are in a better condition than those in the foreclosure zone.

Purchasing commercial foreclosures:

Commercial foreclosures can be purchased at auctions with the help of realtors if the properties are owned by the banks. They can be bought directly from the owner at the pre-foreclosure stage. The first requisite is to find out the location of these commercial foreclosures and then getting to know well ahead when they can be bought.

For all this our database comes into vital use. It will give the potential buyer the best chances to pick up bargains and walk off with the best deals.

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Recently the US government has announced new set of rules in this foreclosure situation for the tenants in the real estate market. It will be tougher for the homeowners to pass the procedure in this government foreclosure plan. Since launch, the administration has faced a loss of $75 billion due to some mismanagement in the paperwork.

New rules that will commence on June 1, will improve the process. Herb Allison, the Treasury Assistant Secretary commented regarding the new rules in this situation of foreclosure, “They aim to make it easier and quicker to provide permanent modifications. These changes also will enable servicers to process more efficiently and handle more volume effectively so we can help more people more rapidly.”

The forms that the borrowers need to fill up are available on the site of Making Home Affordable program. IRS 4506-T form is the one that will help to get their tax returns. The applicants need to be verified their details that they will provide like income, mode of services, details of property. The whole process will take not more that 10 working days. In case of delay, servicer has to clarify the reasons to the borrower.

Earlier the plans regarding foreclosure and other related issues, the borrowers need to enter in to a three-month trial process for which they have to submit documents. The huge documentation and checking make a long queue of borrowers that frustrate them in the end. This procedure, according to many member of foreclosure program, is not realistic.

Government has put pressure on the servicers to make the process faster and also has increased the period to five months and has reduced the paperwork. The result is reflected on the figures as 66,500 applications have been approved for permanent adjustments and 787,200 homeowners have entered in trial modifications.

The people, who have applied for the trial modification, will be checked for their all documents submission. Failing to submit all the necessary papers or the people who are defaulters in paying their rents should look for other plans for prevention of the foreclosure. There is always options for the applicants to appeal against the decision.

To clear the long queue of the borrowers who are in trial period Edward Pinto, former chief credit officer for Fannie Mae said that the government rules would be helpful.

The New York banking superintendent, Richard Neiman, member of the State Foreclosure Prevention Working Group opines that due to earlier paperwork problems 450,000 borrowers may get the rejection. However, a conditional approval is provided to those who are still unable to produce Form 4506-T tax forms.

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Although many people investing and buying foreclosed properties, automatically associate it with the residential market, they are not aware that a surfeit of bargains is available in commercial foreclosures. Commercial foreclosed properties are those that have been purchased by taking a commercial mortgage and are now in delinquency. These types of units range from warehouses [...]

Continue reading: Commercial Foreclosed Properties

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For those investing in real estate, commercial foreclosures are opening up big opportunities. Generally the majority of the investors think of buying residential bank repossessed units when hunting in the foreclosure market. But commercial foreclosures are now coming with many attractive facets. Similar to home foreclosures, commercial foreclosed properties are being sold at heavy discounts. [...]

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A sudden decline in the number of completed foreclosures has prompted the companies to slow down the foreclosure auction in Michigan.
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After Harris Bank declared Buffalo Creek Condominiums, a condo complex having 154 residential unit ( purchased for$13.25 million by investor Marcin Malarz in February, 2009) , foreclosed, the number of foreclosures are increasing rapidly in this area.
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