Homes in foreclosure up 79% in '07

Two studies cast doubt on potential for foreclosure relief

Tuesday, January 29, 2008

Inman News

The number of households in foreclosure increased 79 percent in 2007, with about one of every 100 U.S. households at some stage of the foreclosure process, according to the latest numbers from data aggregator RealtyTrac.

The numbers come on the heels of two reports -- one by a consumer advocacy group, the other by an industry association -- that suggest the Bush administration's foreclosure prevention efforts will fall short of expectations.

Nationwide, RealtyTrac tallied 2.2 million foreclosure-related filings during the year on about 1.3 million homes, a 75 percent increase in filings from 2006.

Foreclosure-related filings include default notices, auction sales notices and bank repossessions. Because one home may be subject to several filings, the number of foreclosure-related filings is larger than the number of foreclosures.

Although not every foreclosure is captured by RealtyTrac, the numbers can serve as a benchmark for tracking foreclosure trends. The year-end statistics 2007 reveal state-by-state trends for the fourth quarter and December.

The foreclosure picture improved at the end of the year for some states in the Midwest and Northeast including Ohio, Indiana, New York and New Jersey. But foreclosure filings were up sharply in December in some of the states already hardest hit by foreclosure, such as California, Nevada and New Mexico.

According to RealtyTrac, foreclosure filings fell dramatically during December in Ohio (-26 percent), Indiana (-34 percent), New Jersey (-23 percent) and New York (-20 percent).

But the number of foreclosure filings during the final month of the year rose sharply in California (up 33 percent), Nevada (up 64 percent) and New Mexico (up 58 percent).

California and Florida, with foreclosure filings on 414,804 properties, accounted for about one in three of the 1.3 million homes RealtyTrac determined were at some state of the foreclosure process during 2007. Michigan, Ohio, Illinois and Indiana accounted for another 269,479 homes. All told, slightly more than half of all homes RealtyTrac said were hit by foreclosure filings last year were located in those six states.

The states with the highest household foreclosure rate were Nevada (3.38 percent), Florida (2 percent), Michigan (1.95 percent), California (1.92 percent), Colorado (1.92 percent), Ohio (1.8 percent), Georgia (1.57 percent), Arizona (1.52 percent) Illinois (1.25 percent) and Indiana (1.03 percent). The U.S. average was 1.03 percent.

The latest numbers show growth in foreclosure filings leveling out during December and the fourth quarter in crucial foreclosure states like Florida, Michigan and Colorado.

In Florida, foreclosure filings were up 6.8 percent in December compared to November, and grew 4.8 percent between the third and fourth quarters in 2007.

Growth in foreclosure filings in Michigan was essentially flat during December at 1.6 percent, and the number of filings decreased 16.6 percent in the fourth quarter.

Colorado showed a 2.5 percent decline in foreclosure filings during December, and a 3.9 percent fourth-quarter drop.

Some properties may have just entered the initial stage of foreclosure in 2007 and could be going through the rest of the foreclosure process in 2008, unless lender and government intervention efforts begin to gain more traction, said RealtyTrac Chief Executive Officer James Saccacio in a statement accompanying the release of the report.

The Center for Responsible Lending released a pessimistic report Monday that estimated the Treasury Department's HOPE NOW initiative involving voluntary loan modifications by loan servicers will prevent only 118,200 foreclosures, or about 3 percent of outstanding subprime mortgages with adjustable interest rates. The report estimated that 3.5 million families with adjustable-rate mortgage (ARM) loans face interest-rate resets in the next two years.

Another study reportedly being circulated by members of the American Securitization forum estimated that the Bush administration's new FHASecure program, aimed at helping ARM borrowers who have defaulted refinance into fixed-rate loans, will help only about 44,000 borrowers.

According to a Reuters report on the study, it recommends expanding the FHASecure program to include borrowers with fixed-rate loans and seriously delinquent borrowers who have demonstrated the ability to make steady payments.

The study did not analyze the impact of a proposal to increase the maximum-size mortgage eligible for FHA loan guarantee programs from $367,000 to nearly $730,000 (see Inman News story).

A spokeswoman American Securitization Forum, Katrina Cavalli, said in a statement that the group "supports responsible expansion of FHA and other sustainable refinancing opportunities. While we are discussing a number of ideas with our members, we have not endorsed any specific proposals as yet."

Foreclosure trends in top 10 states

State	Household foreclosure rate (percent)	Total properties	Filings % change Nov.-Dec.	Filings % change year
Nevada	3.38	34,417	+64%	+215%
Florida	2.0	165,291	+6.8%	+124%
Michigan	1.95	87,210	+1.57%	+68%
California	1.92	249,513	+33.3%	+238%
Colorado	1.92	39,403	-2.5%	+30.0%
Ohio	1.8	89,979	-26%	+87.9%
Georgia	1.57	59,057	-14.2%	+31.1%
Arizona	1.52	38,568	+31.8%	+151%
Illinois	1.25	64,310	+19.7%	+25.3%
Indiana	1.03	27,980	-34.1%	+11.3%
U.S.	1.03	1.3 million	+6.83%	+75%

5604 Stone Cliff Ct - Dallas, Tx 75287

Real Estate by Robert J Russell

The Wooden Bowl

A frail old man went to live with his son, daughter-in-law, and four-year- old grandson.

The old man's hands trembled, his eyesight was blurred, and his step faltered.

The family ate together at the table. But the elderly grandfather's shaky hands and
failing sight made eating difficult. Peas rolled off his spoon onto the floor.

When he grasped the glass, milk spilled on the tablecloth.

The son and daughter-in-law became irritated with the mess. "We must do something about father," said the son.

"I've had enough of his spilled milk, noisy eating,and food on the floor."

So the husband and wife set a small table in the corner.

There, Grandfather ate alone while the rest of the family enjoyed dinner.

Since Grandfather had broken a dish or two, his food was served in a wooden bowl.

When the family glanced in Grandfather's direction,sometimes he had a tear in his eye as he sat alone.

Still, the only words the couple had for him were sharp admonitions when he dropped a fork or spilled food.

The four-year-old watched it all in silence.

One evening before supper, the father noticed his son playing with wood scraps on the floor.

He asked the child sweetly, "What are you making?" Just as sweetly, the boy responded,

"Oh, I am making a little bowl for you and Mama to eat your food in when I grow up." The four-year-old smiled and went back to work.

The words so struck the parents so that they were speechless. Then tears started to stream down their cheeks.

Though no word was spoken, both knew what must be done.

That evening the husband took Grandfather's hand and gently led him back to the family table.

For the remainder of his days he ate every meal with the family. And for some reason,
neither husband nor wife seemed to care any longer when a fork was dropped, milk spilled, or the tablecloth soiled.

On a positive note, I've learned that, no matter what happens, how bad it seems today, life does go on, and it will be better tomorrow.

I've learned that you can tell a lot about a person by the way he/she handles four things:

a rainy day, the elderly, lost luggage,and tangled Christmas tree lights.

I've learned that, regardless of your relationship with your parents, you'll miss them when they're gone from your life.

I've learned that making a "living" is not the same thing as making a "life.."

I've learned that life sometimes gives you a second chance.

I've learned that you shouldn't go through life with a catcher's mitton both hands. You need to be able to throw something back

I've learned that if you pursue happiness, it will elude you but, if you focus on your family, your friends, the needs of others, your work and doing the very best you can, happiness
will find you

I've learned that whenever I decide something with an open heart, I usually make the right decision.

I've learned that even when I have pains, I don't have to be one.

I've learned that every day, you should reach out and touch someone.

People love that human touch -- holding hands, a warm hug, or just afriendly pat on the back.

I've learned that I still have a lot to learn.

I've learned that you should pass this on to everyone you care about I just did.

Keep the Fork !

There was a young woman who had been diagnosed with a terminal illness and had been given three months to live. So, as she was getting her things 'in order,' she contacted her Pastor and had him come to her house to discuss certain aspects of her final wishes.

She told him which songs she wanted sung at the service, what scriptures she would like read, and what outfit she wanted to be buried in.

Everything was in order and the Pastor was preparing to leave when the young woman suddenly remembered something very important to her.

'There's one more thing,' she said excitedly.

'What's that?' came the Pastor's reply.

'This is very important,' the young woman continued. 'I want to be buried with a fork in my right hand.'

The Pastor stood looking at the young woman, not knowing quite what to say.

That surprises you, doesn't it?' the young woman asked.

'Well, to be honest, I'm puzzled by the request,' said the Pastor.

The young woman explained. 'My grandmother once told me this story, and from that time on I have always tried to pass along its message to those I love and those who are in need of encouragement. In all my years of attending socials and dinners, I always remember that when the dishes of the main course were being cleared, someone would inevitably lean over and say, 'Keep your fork.' It was my favorite part because I knew that something better was coming...like velvety chocolate cake or deep-dish apple pie. Something wonderful , and with substance!'

So, I just want people to see me there in that casket with a fork in my hand and I want them to wonder 'What's with the fork?' Then I want you to tell them: 'Keep your fork the best is yet to come.'

The Pastor's eyes welled up with tears of joy as he hugged the young woman good-bye. He knew this would be one of the last times he would see her before her death. But he also knew that the young woman had a better grasp of heaven than he did. She had a better grasp of what heaven would be like than many people twice her age, with twice as much experience and knowledge. She KNEW that something better was coming.

At the funeral people were walking by the young woman's casket and they saw the cloak she was wearing and the fork placed in her right hand. Over and over, the Pastor heard the question, 'What's with the fork?' And over and over he smiled.

During his message, the Pastor told the people of the conversation he had with the young woman shortly before she died. He also told them about the fork and about what it symbolized to her. He told the people how he could not stop thinking about the fork and told the m that they probably would not be able to stop thinking about it either.

He was right. So the next time you reach down for your fork, let it remind you, ever so gently, that the best is yet to come. Friends are a very rare jewel, indeed. They make you smile and encourage you to succeed . They lend an ear, they share a word of praise, and they always want to open their hearts to you.

Show your friends how much you care. Remember to always be there for them, even when you need them more. For you never know when it may be their time to 'Keep your fork.'

Cherish the time you have, and the memories you share .
Being friends with someone is not an opportunity but a sweet responsibility. 

And keep your fork.

 

Today's Topic: Respect Their Time

It's true confession time. Do you typically expect employees to stop whatever they're doing whenever you come to them with a need, a want, or some other item on your agenda? Do you ever conduct meetings that are less-than-productive due to a lack of planning or organization on your part? If you answered yes to either (or both) of those questions, I've got three words for you: STOP DOING IT! You're wasting one of the most precious resources your people have: their time.

I know, I know. Of course there will be occasions when you have a truly pressing ("legitimate") need that must be addressed immediately. But far too often, leaders interrupt employees with issues that aren't all that significant or important – merely because they want to deal with them NOW and get them off their plates. That's just plain inconsiderate. And when it comes to unnecessary or poorly organized meetings in which little is accomplished – well, there's simply no excuse for those, period.

Your people have important work to do. If they didn't, they wouldn't be there. So, make sure your meetings are necessary and well-managed. And, the next time you feel the need to interrupt someone's activities, focus, and concentration, ask yourself: Is my issue really more important than what he or she is doing right now? If it is, proceed – if it isn't, wait…and schedule a more appropriate and convenient opportunity to chat.

Bottom line: if you don't respect your people's time, eventually they won't either. Then, everyone loses.

Humor for today

During one of her daily classes a teacher trying to teach good manners,asked her students the following question: "Michael, if you were on a date having dinner with a nice young lady, how would you tell her that you have to go to the bathroom?" Michael said, "Just a minute I have to go pee." The teacher responded by saying, "That would be rude and impolite." What about you Peter, how would you say it?" Peter said, "I am sorry, but I really need to go to the bathroom. I'll be right back." "That's better, but it's still not very nice to say the word bathroom at the dinner table. And you, little Johnny, can you use your brain for once and show us your good manners?" "I would say: Darling, may I please be excused for a moment? I have to shake hands with a very dear friend of mine, whom I hope you'll get to meet after dinner." (The teacher fainted......)

Daily Real Estate News  |  January 3, 2008

 

Christmas Holiday Slows Mortgage Business
The mortgage business was slow over the Christmas holiday week, even compared with the previous year, according to the Mortgage Bankers Association weekly mortgage applications survey.

The mortgage volume index decreased 11.6 percent to 533.9 on a seasonally adjusted basis compared to the previous week. It was down 20 percent compared with the same week a year ago.

The refinance share of mortgage activity decreased to 50.9 percent of total applications from 53.0 percent the previous week.

Also, mortgage rates were down:

30-year fixed-rate mortgages decreased to 6.05 percent from 6.10 percent.
15-year fixed-rate mortgages decreased to 5.61 percent from 5.66 percent.
1-year ARMs decreased to 6.00 percent from 6.03 percent.

Source: Mortgage Bankers Association (01/03/2007)