e.g. Miami or Miami-Dade or Florida or 33132
It is debatable whether foreclosure business is good or bad. There was a time when foreclosure business was good and it raked in profits for the lenders foreclosing on the delinquent borrowers. But by a strange twist of fate the irony is that since the last two years or so foreclosure business is not good – it is bad for the banks that are incurring huge losses running this foreclosure business.
When the sub-prime mortgages were peddled the lenders sat back smug – the terms and tricks were such that invariably the gullible borrowers would default and the property would come into possession of the lenders. With property prices rising pell-mell during the booming years there was no doubt that the foreclosed units would be sold for huge profits.
But suddenly the markets fell. Property prices began to crash. A prime reason for this was too many borrowers at the same time began to default. When the initial teaser rates of the sub-prime mortgages began to increase it was impossible for borrowers to survive with the basics of life and yet pay mortgages with their income levels. Thousands –in fact millions came to be foreclosed upon.
Suddenly foreclosure business became bad. The process of foreclosure is extremely costly and time consuming. Even after completing its run the foreclosed houses fails to get sold at the auctions. The banks began to repossess thousands of houses that were nothing more than white elephants. Unsold, these units began to run to seed attracting vandals, criminals, disease and the ire of communities, governments and politicians.
In a hurry to solve the problem, politicians have started giving out largesse to the banks from the taxpayer’s kitty. Once again foreclosure business has become good.
The value of homes in Miami that was high in the last 21 years has started to decline significantly due to foreclosures. The previously owned single-family homes of the area, over the last year, have declined by 28.3 percent. Miami stands second to Las Vegas in this matter whose real estate home prices fell by [...]
The recent rise in foreclosures are not only making homeowners lose their homes, but is causing losses to neighbor’s as well. For example, let us take the case of Valerie Guerra’s home in Liverpool. The value of her home as depreciated by more than $100,000 due to falling real estate prices, even though her husband [...]
In all the confusion and chaos foreclosures have brought with them, they are also creating the right time for people to invest in their new home.
Many Realtors and agents opine that buyers would like to look at such homes when they are intending to make a good purchase. Donale Bernarding, a broker with CyBer Realty, [...]
Hillary Rodham Clinton, urged for a moratorium on foreclosures for 90 days on homes with subprime mortgages and a five-year long period of freeze on the interest rates that those borrowers would have to pay.
She addressed a letter to Treasury Secretary, Henry Paulson, who is now ready to announce the Bush administration’s responsibility to today’s [...]
Foreclosure prices have risen by 35% in 2007. The Default Research survey released in South Florida has reported that foreclosures have risen up to 35% in 2007. In Broward and Miami-Dade about 1.75% and 1.45% have respectively entered the processes of entering into foreclosures. In 2007 Broward have had foreclosures increasing by 66% and [...]
Triggering forward the explosion in home foreclosures, there is a clear dearth of positive prospects in the current real estate segment. A real estate research survey indicated a tightening in mortgage lending. This is a factor which further brought down the real estate prices in several places. The decline in home prices around the nation [...]
There was further criticism of the plan proposed by President Bush to help stem the flow of foreclosures in the country. As is commonly known, one of the main causes of foreclosures in the country are defaults on predatory or sub-prime loans by home owners who are unable to meet their monthly mortgage payments.
President Bush [...]
In recent times, the trends relating to real estate and foreclosures have been dipping and rising like a see saw. The trends are now so unpredictable. Sometimes it appears as though the trend of foreclosures has grown with such powerful momentum, yet at other times, it doesn’t seem so bad as to actually affect [...]
David Sloan, an economist with 4cast Ltd. says, “It is clearly well below expectations and it is also interesting that prices have declined sharply on a month-to-month and year-on-year basis.”
It was really important to find out whether there would be acceleration or moderation in the pace of this decline. We could only know that when [...]
RealtyTrac, a real estate tracking company has found that foreclosures have risen to alarming levels in Connecticut’s cities along with mortgage defaults, which have shot up dramatically in the last year, as house owners feel the burden of increasing sub-prime and predatory lending related costs.
The California-based real estate data provider said there was an increase [...]
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