This was advertised in the Kingman paper, but the homes are in Casa Grande and Maricopa. New homes with starting bids more than 50% off of the previous asking prices.
http://www.publicredcauction.com/auction_details.php?auctionID=D-004
Community details and pictures.
http://www.publicredcauction.com/community.php
Monday, September 24, 2007
Reality Check for Home Sellers
Here is a good column from the nytimes called "A Reality Check for Home Sellers"
http://www.nytimes.com/2007/09/23/business/yourmoney/23view.html?em&ex=1190692800&en=4dcf15445b9b3067&ei=5087%0A
I'm seeing exactly this in home prices in Mohave county. The sellers appear to be using a dart board to pick prices and you can have two houses next door to each other with the same floor plan, the same builder and built in the same year and a 30% difference in price.
If you are planning on buying now, you better have an honest realtor who will make sure you have all the facts about the listings in the area you are looking at.
http://www.nytimes.com/2007/09/23/business/yourmoney/23view.html?em&ex=1190692800&en=4dcf15445b9b3067&ei=5087%0A
I'm seeing exactly this in home prices in Mohave county. The sellers appear to be using a dart board to pick prices and you can have two houses next door to each other with the same floor plan, the same builder and built in the same year and a 30% difference in price.
If you are planning on buying now, you better have an honest realtor who will make sure you have all the facts about the listings in the area you are looking at.
Friday, September 21, 2007
Realtor Descriptions
I've always been interested in realtor's "code" words. Like "cozy" usually means it's so small you can't turn around. "Bright and sunny" usually means it's painted yellow or orange. "Needs TLC" might mean bring a contracter or possibly just a shovel and a few trash cans.
I've noticed now that so many foreclosures are hitting the sales listings, realtors have different ways of listing. Probably most just ignore the foreclosure part and don't acknowledge it. Some might say bank owned or foreclosure in the description.
I saw two new ones this week that were very creative. One said "bank acquired". The other was my favorite. It said "under new ownership".
I've noticed now that so many foreclosures are hitting the sales listings, realtors have different ways of listing. Probably most just ignore the foreclosure part and don't acknowledge it. Some might say bank owned or foreclosure in the description.
I saw two new ones this week that were very creative. One said "bank acquired". The other was my favorite. It said "under new ownership".
Some Pretty Scary Stuff on the Dollar and the US
I've been reading a lot of UK articles lately. Here is a sample of a couple of fairly recent ones. Scary stuff.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/bcnsaudi119.xml
Fears of dollar collapse as Saudis take fright
By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 10:35am BST 21/09/2007
Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.
"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.
"Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said.
The Saudi central bank said today that it would take "appropriate measures" to halt huge capital inflows into the country, but analysts say this policy is unsustainable and will inevitably lead to the collapse of the dollar peg.
As a close ally of the US, Riyadh has so far tried to stick to the peg, but the link is now destabilising its own economy.
http://www.telegraph.co.uk/money/main.jhtml;jsessionid=4T0ZHDXYFPAYDQFIQMGSFF4AVCBQWIV0?xml=/money/2007/08/07/bcnchina107a.xml
China threatens 'nuclear option' of dollar sales
By Ambrose Evans-Pritchard
Last Updated: 8:39pm BST 10/08/2007
The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/bcnsaudi119.xml
Fears of dollar collapse as Saudis take fright
By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 10:35am BST 21/09/2007
Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.
"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.
"Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said.
The Saudi central bank said today that it would take "appropriate measures" to halt huge capital inflows into the country, but analysts say this policy is unsustainable and will inevitably lead to the collapse of the dollar peg.
As a close ally of the US, Riyadh has so far tried to stick to the peg, but the link is now destabilising its own economy.
http://www.telegraph.co.uk/money/main.jhtml;jsessionid=4T0ZHDXYFPAYDQFIQMGSFF4AVCBQWIV0?xml=/money/2007/08/07/bcnchina107a.xml
China threatens 'nuclear option' of dollar sales
By Ambrose Evans-Pritchard
Last Updated: 8:39pm BST 10/08/2007
The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.
Thursday, September 20, 2007
Sheriff Arpaio's Illegal Immigrant Hotline Billboards
http://www.mcso.org/include/pr_pdf/s%20Mobile%20Illegal%20Immigration%20Billboards.pdf
Date: September 15, 2007
ARPAIO AUTHORIZES 24 MOVING BILLBOARDS TO BOLSTER CALLS TO SHERIFF’S ILLEGAL IMMIGRATION HOTLINE
‘DO NOT ILLEGALLY ENTER’ BILLBOARDS
WILL BE SEEN ALL OVER COUNTY, CITY STREETS
(Phoenix, AZ) In a move that is certain to inflame illegal immigration activists, Maricopa County Sheriff Joe Arpaio plans to unveil a unique method of advertising his illegal immigration hotline on Sunday afternoon.
Date: September 15, 2007
ARPAIO AUTHORIZES 24 MOVING BILLBOARDS TO BOLSTER CALLS TO SHERIFF’S ILLEGAL IMMIGRATION HOTLINE
‘DO NOT ILLEGALLY ENTER’ BILLBOARDS
WILL BE SEEN ALL OVER COUNTY, CITY STREETS
(Phoenix, AZ) In a move that is certain to inflame illegal immigration activists, Maricopa County Sheriff Joe Arpaio plans to unveil a unique method of advertising his illegal immigration hotline on Sunday afternoon.
Legends of America Site
I found this really cool site called legends of america. I love this site, tons of interesting things.
This page is on Chloride.
http://www.legendsofamerica.com/AZ-Chloride.html
This one mentions Cerbat, Mineral Park and even Kingman.
http://www.legendsofamerica.com/AZ-Cerbat.html
Arizona fun facts.
http://www.legendsofamerica.com/AZ-ArizonaFacts.html
This page is on Chloride.
http://www.legendsofamerica.com/AZ-Chloride.html
This one mentions Cerbat, Mineral Park and even Kingman.
http://www.legendsofamerica.com/AZ-Cerbat.html
Arizona fun facts.
http://www.legendsofamerica.com/AZ-ArizonaFacts.html
Laughlin Ranch Bankrupcy
The latest news on the Lords bankruptcy. Multiple homes and land parcels by one of the builders in the subdivision have been auctioned in recent months also.
Lords looks to ‘move forward'
By NEIL YOUNG/The Daily News
Monday, September 17, 2007 9:08 PM PDT
BULLHEAD CITY - “Everything seems to be tracking as planned,” said Laughlin Ranch President David Lords regarding his bankruptcy proceedings.
It was announced on July 13 that Laughlin Ranch had filed for bankruptcy under Chapter 11 and a California-based company was interested in buying the master-planned upscale community on the Bullhead Parkway.
The bankruptcy was filed “in order to implement a planned acquisition of Laughlin Ranch by The Lewis Group of Companies,” a press release stated.
“Between now and October is their due diligence time,” Lords said of Lewis. “And then at that point, we move forward,” in late October, he said. During due diligence, a potential investor analyzes and appraises a business.
With an infusion of $10 million from Lewis to keep Laughlin Ranch going, it's business as usual, according to Lords. “All operations are open.”
http://www.mohavedailynews.com/articles/2007/09/18/news/top_story/top1.txt
Lords looks to ‘move forward'
By NEIL YOUNG/The Daily News
Monday, September 17, 2007 9:08 PM PDT
BULLHEAD CITY - “Everything seems to be tracking as planned,” said Laughlin Ranch President David Lords regarding his bankruptcy proceedings.
It was announced on July 13 that Laughlin Ranch had filed for bankruptcy under Chapter 11 and a California-based company was interested in buying the master-planned upscale community on the Bullhead Parkway.
The bankruptcy was filed “in order to implement a planned acquisition of Laughlin Ranch by The Lewis Group of Companies,” a press release stated.
“Between now and October is their due diligence time,” Lords said of Lewis. “And then at that point, we move forward,” in late October, he said. During due diligence, a potential investor analyzes and appraises a business.
With an infusion of $10 million from Lewis to keep Laughlin Ranch going, it's business as usual, according to Lords. “All operations are open.”
http://www.mohavedailynews.com/articles/2007/09/18/news/top_story/top1.txt
U.S. Fed's impact on home prices in doubt
By David Leonhardt
Published: September 19, 2007
NEW YORK: The U.S. Federal Reserve has sent the stock market soaring. So can it stop the decline in home prices, too?
Don't count on it. And that is bad news for the global economy, which heavily depends on the U.S. consumer.
From the late 1960s until 2000, the price of the typical American home and the income of the typical family moved almost in lockstep. House prices rose a bit more quickly than incomes during the occasional real estate boom, but would always settle down again. In 2000, the median home cost about $130,000, roughly three times the typical household income - almost precisely the ratio that had held since the '60s.
Then came a real estate boom unlike any before it. By last year, this ratio of prices to incomes had suddenly shot up to four and a half. For it to return to its old level, home prices would have to fall by an almost unthinkable one-third, and probably more in California, Florida and the Northeast.
http://www.iht.com/articles/2007/09/19/business/leonhardt.php
Published: September 19, 2007
NEW YORK: The U.S. Federal Reserve has sent the stock market soaring. So can it stop the decline in home prices, too?
Don't count on it. And that is bad news for the global economy, which heavily depends on the U.S. consumer.
From the late 1960s until 2000, the price of the typical American home and the income of the typical family moved almost in lockstep. House prices rose a bit more quickly than incomes during the occasional real estate boom, but would always settle down again. In 2000, the median home cost about $130,000, roughly three times the typical household income - almost precisely the ratio that had held since the '60s.
Then came a real estate boom unlike any before it. By last year, this ratio of prices to incomes had suddenly shot up to four and a half. For it to return to its old level, home prices would have to fall by an almost unthinkable one-third, and probably more in California, Florida and the Northeast.
http://www.iht.com/articles/2007/09/19/business/leonhardt.php
Countrywide 'out of the subprime business'
I have been saying that the no-doc loans aren't coming back for a while if ever and have been made fun of and called stupid. Looks like even Countrywide agrees with me.
By Noelle Knox, USA TODAY
Angelo Mozilo, the CEO of Countrywide Financial (CFC), outlined a new strategy Tuesday that would transform the nation's largest mortgage lender from an aggressive funding source for borrowers with tarnished credit into a more conservative thrift, dependent on savings deposits instead of Wall Street investors.
"We are out of the subprime business," Mozilo told investors at a conference in San Francisco. Nearly 25% of Countrywide's subprime borrowers were behind on their loan payments at the end of June.
Countrywide has also stopped making loans to people with good, or prime, credit who lack documented proof of their income or assets. Starting next year, Mozilo said, 80% of its mortgages will meet the standards of Freddie Mac and Fannie Mae, the government-backed institutions that buy loans to provide liquidity to the market. That's up from 60% at the end of last year.
"It's a reflection of the current market. The loans that are in demand are the ones with all the i's dotted and t's crossed," said Greg McBride, senior financial analyst at Bankrate.com. "This further signifies the easy credit of days gone by will be a relic of the past."
As the shakeout in the mortgage industry continues, Mozilo said he expects Countrywide's business to decline 25% next year compared with this year. The company has announced it will fire up to 12,000 of its employees. The plan unveiled Tuesday includes hiring more people in India who would take calls from delinquent borrowers hoping to renegotiate the terms of their loans and avoid foreclosure.
Record default rates and turmoil in the credit market, Mozilo said, have "repainted the entire mortgage landscape."
And the paint hasn't dried.
http://www.usatoday.com/money/economy/housing/2007-09-17-mortgage-outlook_N.htm
By Noelle Knox, USA TODAY
Angelo Mozilo, the CEO of Countrywide Financial (CFC), outlined a new strategy Tuesday that would transform the nation's largest mortgage lender from an aggressive funding source for borrowers with tarnished credit into a more conservative thrift, dependent on savings deposits instead of Wall Street investors.
"We are out of the subprime business," Mozilo told investors at a conference in San Francisco. Nearly 25% of Countrywide's subprime borrowers were behind on their loan payments at the end of June.
Countrywide has also stopped making loans to people with good, or prime, credit who lack documented proof of their income or assets. Starting next year, Mozilo said, 80% of its mortgages will meet the standards of Freddie Mac and Fannie Mae, the government-backed institutions that buy loans to provide liquidity to the market. That's up from 60% at the end of last year.
"It's a reflection of the current market. The loans that are in demand are the ones with all the i's dotted and t's crossed," said Greg McBride, senior financial analyst at Bankrate.com. "This further signifies the easy credit of days gone by will be a relic of the past."
As the shakeout in the mortgage industry continues, Mozilo said he expects Countrywide's business to decline 25% next year compared with this year. The company has announced it will fire up to 12,000 of its employees. The plan unveiled Tuesday includes hiring more people in India who would take calls from delinquent borrowers hoping to renegotiate the terms of their loans and avoid foreclosure.
Record default rates and turmoil in the credit market, Mozilo said, have "repainted the entire mortgage landscape."
And the paint hasn't dried.
http://www.usatoday.com/money/economy/housing/2007-09-17-mortgage-outlook_N.htm
Tuesday, September 18, 2007
FOMC cuts fed funds and discount rates by half point each
By Greg Robb
Last Update: 2:15 PM ET Sep 18, 2007
In a statement, the FOMC said the action "was necessary to forestall some of the adverse effects on the broad economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time." The Fed said that some inflation risks remain. It said the credit crunch could hurt the economy.
http://www.marketwatch.com/news/story/federal...
Last Update: 2:15 PM ET Sep 18, 2007
In a statement, the FOMC said the action "was necessary to forestall some of the adverse effects on the broad economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time." The Fed said that some inflation risks remain. It said the credit crunch could hurt the economy.
http://www.marketwatch.com/news/story/federal...
Sunday, September 16, 2007
Japanese Housewives Sweat in Secret as Markets Reel
I found this a really interesting article:
By MARTIN FACKLER
Published: September 16, 2007
TOKYO, Sept. 15 — Since the credit crisis started shaking the world financial markets this summer, many professional traders have taken big losses. Another, less likely group of investors has, too: middle-class Japanese homemakers who moonlight as amateur currency speculators.
Ms. Itoh is one of them. Ms. Itoh, a homemaker in the central city of Nagoya, did not want her full name used because her husband still does not know. After cleaning the dinner dishes, she would spend her evenings buying and selling British pounds and Australian dollars.
When the turmoil struck the currency markets last month, Ms. Itoh spent a sleepless week as market losses wiped out her holdings. She lost nearly all her family’s $100,000 in savings.
http://www.nytimes.com/2007/09/16/business/worldbusiness/16housewives.html?_r=1&th&emc=th&oref=slogin
By MARTIN FACKLER
Published: September 16, 2007
TOKYO, Sept. 15 — Since the credit crisis started shaking the world financial markets this summer, many professional traders have taken big losses. Another, less likely group of investors has, too: middle-class Japanese homemakers who moonlight as amateur currency speculators.
Ms. Itoh is one of them. Ms. Itoh, a homemaker in the central city of Nagoya, did not want her full name used because her husband still does not know. After cleaning the dinner dishes, she would spend her evenings buying and selling British pounds and Australian dollars.
When the turmoil struck the currency markets last month, Ms. Itoh spent a sleepless week as market losses wiped out her holdings. She lost nearly all her family’s $100,000 in savings.
http://www.nytimes.com/2007/09/16/business/worldbusiness/16housewives.html?_r=1&th&emc=th&oref=slogin
Saturday, September 15, 2007
Bank of England Tries to Stop Bank Run
Bank of England tries to stop a run on mortgage bank
By Tariq Panja, Associated Press Writer
LONDON — The Bank of England provided emergency funding to mortgage lender Northern Rock on Friday after the bank, citing the global credit squeeze triggered by the U.S. subprime mortgage crisis, said it was unable to line up short-term loans from other financial institutions.
Even after the central bank issued a statement saying Northern Rock was solvent, slow-moving lines of customers snaked through the doors at the bank's branches to make withdrawals.
http://www.usatoday.com/money/world/2007-09-14-british-bank_N.htm
Northern Rock Gets Emergency Bank of England Funding (Update8)
By Ben Livesey and Jon Menon
Sept. 14 (Bloomberg) -- Northern Rock Plc got emergency funding from the Bank of England, the biggest bailout of a British lender in 30 years, after rising credit costs left the mortgage provider unable to make new loans.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a7WvTBECy164&refer=home
Northern Rock Crumbles
Vidya Ram, 09.14.07, 9:40 AM ET
LONDON -
The moment that the British banking sector has been dreading came on Friday. Northern Rock, the country's fifth-largest mortgage lender, confirmed late on Thursday that it had requested and received a line of emergency funding from the Bank of England.
http://www.forbes.com/markets/2007/09/14/northern-rock-britain-markets-equity-cx_vr_0914markets03.html
By Tariq Panja, Associated Press Writer
LONDON — The Bank of England provided emergency funding to mortgage lender Northern Rock on Friday after the bank, citing the global credit squeeze triggered by the U.S. subprime mortgage crisis, said it was unable to line up short-term loans from other financial institutions.
Even after the central bank issued a statement saying Northern Rock was solvent, slow-moving lines of customers snaked through the doors at the bank's branches to make withdrawals.
http://www.usatoday.com/money/world/2007-09-14-british-bank_N.htm
Northern Rock Gets Emergency Bank of England Funding (Update8)
By Ben Livesey and Jon Menon
Sept. 14 (Bloomberg) -- Northern Rock Plc got emergency funding from the Bank of England, the biggest bailout of a British lender in 30 years, after rising credit costs left the mortgage provider unable to make new loans.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a7WvTBECy164&refer=home
Northern Rock Crumbles
Vidya Ram, 09.14.07, 9:40 AM ET
LONDON -
The moment that the British banking sector has been dreading came on Friday. Northern Rock, the country's fifth-largest mortgage lender, confirmed late on Thursday that it had requested and received a line of emergency funding from the Bank of England.
http://www.forbes.com/markets/2007/09/14/northern-rock-britain-markets-equity-cx_vr_0914markets03.html
'The Dumb Money Has Left the Market'
Home sales and median prices dipped again in San Diego County.
By KELLY BENNETT Voice Staff Writer
Thursday, Sept. 13, 2007 Fewer homes sold last month in San Diego County than in any August in 15 years, DataQuick Information Systems reported Wednesday.
The 3,104 homes sold marked a 19.4 percent drop in sales volume from August 2006, and a 48 percent drop from the nearly 6,000 homes sold in August 2005.
Many of the deals that closed in August -- and that show up in data now -- began in July or early August, before the squeeze. Still, the same trouble that has plagued the region's home sellers and overleveraged homeowners for more than a year continued last month, with acute trouble in the south and east parts of the county.
http://www.voiceofsandiego.org/articles/2007/09/13/housing/915dqaug091307.txt
By KELLY BENNETT Voice Staff Writer
Thursday, Sept. 13, 2007 Fewer homes sold last month in San Diego County than in any August in 15 years, DataQuick Information Systems reported Wednesday.
The 3,104 homes sold marked a 19.4 percent drop in sales volume from August 2006, and a 48 percent drop from the nearly 6,000 homes sold in August 2005.
Many of the deals that closed in August -- and that show up in data now -- began in July or early August, before the squeeze. Still, the same trouble that has plagued the region's home sellers and overleveraged homeowners for more than a year continued last month, with acute trouble in the south and east parts of the county.
http://www.voiceofsandiego.org/articles/2007/09/13/housing/915dqaug091307.txt
California Home sales plunge in August
Prices drop in most Southland ZIP Codes, and the number of sales is the lowest in 15 years for that month.
By Annette Haddad, Los Angeles Times Staff Writer
September 13, 2007
Home prices fell in most Southern California neighborhoods and the number of sales tumbled to a 15-year low for August -- driven down by tougher lending standards, mounting foreclosures and skittish buyers.
Sales for the month plunged 36% from a year earlier. What's more, 71% of the Southland's ZIP Codes showed price declines, according to figures released Wednesday by DataQuick Information Systems. The survey excluded areas with 14 or fewer sales.....
"People just don't have the income to support these prices except with crazy mortgages -- and now the mortgage money is going away, and people are walking away from their homes," Thornberg said.Nearly 9% of the homes sold last month were foreclosure properties, DataQuick reported, up from 2.2% a year earlier.
http://www.latimes.com/business/la-fi-homes13sep13,0,611742,full.story?coll=la-home-center
By Annette Haddad, Los Angeles Times Staff Writer
September 13, 2007
Home prices fell in most Southern California neighborhoods and the number of sales tumbled to a 15-year low for August -- driven down by tougher lending standards, mounting foreclosures and skittish buyers.
Sales for the month plunged 36% from a year earlier. What's more, 71% of the Southland's ZIP Codes showed price declines, according to figures released Wednesday by DataQuick Information Systems. The survey excluded areas with 14 or fewer sales.....
"People just don't have the income to support these prices except with crazy mortgages -- and now the mortgage money is going away, and people are walking away from their homes," Thornberg said.Nearly 9% of the homes sold last month were foreclosure properties, DataQuick reported, up from 2.2% a year earlier.
http://www.latimes.com/business/la-fi-homes13sep13,0,611742,full.story?coll=la-home-center
Thursday, September 13, 2007
Milwaukee Boat loans hit choppy seas
Worsening credit crunch has area repossessions on the rise, experts say
By RICK BARRETTrbarrett@journalsentinel.com
Posted: Sept. 11, 2007
More consumers are getting swamped in their boat loans as credit woes worsen.
In the Milwaukee area, companies that repossess recreational watercraft say their business is up between 20% and 50% from a year ago. They're hauling away boats that cost tens of thousands of dollars, or more, after the owners fall several months behind on their payments.
http://www.jsonline.com/story/index.aspx?id=660784
By RICK BARRETTrbarrett@journalsentinel.com
Posted: Sept. 11, 2007
More consumers are getting swamped in their boat loans as credit woes worsen.
In the Milwaukee area, companies that repossess recreational watercraft say their business is up between 20% and 50% from a year ago. They're hauling away boats that cost tens of thousands of dollars, or more, after the owners fall several months behind on their payments.
http://www.jsonline.com/story/index.aspx?id=660784
Wednesday, September 12, 2007
Mortgage Lender's Bankruptcy May Threaten Thousands of Homeowners
As more lenders file bankruptcy, this could become a bigger problem.
http://online.wsj.com/article/SB118955540976824460.html?mod=yahoo_hs&ru=yahoo
By PEG BRICKLEYSeptember 12, 2007; Page A15
Thousands of homeowners face an "imminent risk" of losing their homes because of clashes between American Home Mortgage Investment Corp. and its former financial backers, according to Freddie Mac, a government-chartered housing financier.
In documents filed with the U.S. Bankruptcy Court in Wilmington, Del., Freddie Mac said it seized $7 million that homeowners sent to American Home to cover principal and interest payments, property taxes and insurance just before the company's Aug. 6 collapse. American Home quit making payments to tax authorities and insurance companies Aug. 24.
Freddie Mac said 4,547 loans valued at nearly $797 million are at stake. It said it doesn't have the loan files necessary to pay insurance premiums and property taxes on them, however. "Therefore, there is the imminent risk that borrowers' insurance policies may lapse for nonpayment, subjecting the borrowers to a risk of loss of their mortgaged properties," Freddie Mac said.
http://online.wsj.com/article/SB118955540976824460.html?mod=yahoo_hs&ru=yahoo
By PEG BRICKLEYSeptember 12, 2007; Page A15
Thousands of homeowners face an "imminent risk" of losing their homes because of clashes between American Home Mortgage Investment Corp. and its former financial backers, according to Freddie Mac, a government-chartered housing financier.
In documents filed with the U.S. Bankruptcy Court in Wilmington, Del., Freddie Mac said it seized $7 million that homeowners sent to American Home to cover principal and interest payments, property taxes and insurance just before the company's Aug. 6 collapse. American Home quit making payments to tax authorities and insurance companies Aug. 24.
Freddie Mac said 4,547 loans valued at nearly $797 million are at stake. It said it doesn't have the loan files necessary to pay insurance premiums and property taxes on them, however. "Therefore, there is the imminent risk that borrowers' insurance policies may lapse for nonpayment, subjecting the borrowers to a risk of loss of their mortgaged properties," Freddie Mac said.
California Foreclosure Statistics
This article has some interesting California stats:
http://www.centralvalleybusinesstimes.com/stories/001/?ID=6291
Double-digit increase in foreclosure sales statewide
September 12, 2007 4:59am
• Realty speculators walk away from $1.71 billion in mortgage loans
• ‘Rampant speculation … played a leading role’
A total of 9,477 properties – with a total loan value of $3.86 billion – were sold at auction in California last month, a 10.4 percent increase over July, according to figures compiled by ForeclosureRadar, a Discovery Bay-based foreclosure information service.
Speculator-owned properties (non-owner occupied properties) accounted for $1.71 billion of that total and represented 44.3 percent, or 4,199 of the properties sold at foreclosure auction.
“Many blame subprime lending for our current real estate crisis, but rampant speculation, even by those with great credit, played a leading role,” says Sean O’Toole, founder and CEO of ForeclosureRadar.com......
• Almost all (90.3%) of all foreclosure sales in California in August were for homes purchased or refinanced in 2005 and 2006.
• Of properties sold at auction, 95% went back to the bank – for a total of 9,015 properties with a loan value of $3.7 billion.
http://www.centralvalleybusinesstimes.com/stories/001/?ID=6291
Double-digit increase in foreclosure sales statewide
September 12, 2007 4:59am
• Realty speculators walk away from $1.71 billion in mortgage loans
• ‘Rampant speculation … played a leading role’
A total of 9,477 properties – with a total loan value of $3.86 billion – were sold at auction in California last month, a 10.4 percent increase over July, according to figures compiled by ForeclosureRadar, a Discovery Bay-based foreclosure information service.
Speculator-owned properties (non-owner occupied properties) accounted for $1.71 billion of that total and represented 44.3 percent, or 4,199 of the properties sold at foreclosure auction.
“Many blame subprime lending for our current real estate crisis, but rampant speculation, even by those with great credit, played a leading role,” says Sean O’Toole, founder and CEO of ForeclosureRadar.com......
• Almost all (90.3%) of all foreclosure sales in California in August were for homes purchased or refinanced in 2005 and 2006.
• Of properties sold at auction, 95% went back to the bank – for a total of 9,015 properties with a loan value of $3.7 billion.
International Representatives Demand to Oversee U.S. Markets
September 3, 2007
From theTrumpet.com
The unfolding “made in America” worldwide subprime mortgage crisis has foreign bankers demanding international regulation of American markets, banks and rating agencies. By Robert Morley
In his foreign-policy speech on August 27, French President Nicolas Sarkozy called for an enhanced global rule book to avoid financial crises. Sarkozy, who has vowed to “moralize financial capitalism,” said such crises could reoccur if “the leaders of major countries” did not take “concerted
action to foster transparency and regulation of international markets.”
International bankers and investors from China to France and Germany have lost billions of dollars because U.S. investments, sold as safe, turned out to be far riskier and worth much less than what American investment-rating agencies and banks led them to believe. They don’t want to be deceived again.
http://www.thetrumpet.com/index.php?q=4208.2381.0.0
From theTrumpet.com
The unfolding “made in America” worldwide subprime mortgage crisis has foreign bankers demanding international regulation of American markets, banks and rating agencies. By Robert Morley
In his foreign-policy speech on August 27, French President Nicolas Sarkozy called for an enhanced global rule book to avoid financial crises. Sarkozy, who has vowed to “moralize financial capitalism,” said such crises could reoccur if “the leaders of major countries” did not take “concerted
action to foster transparency and regulation of international markets.”
International bankers and investors from China to France and Germany have lost billions of dollars because U.S. investments, sold as safe, turned out to be far riskier and worth much less than what American investment-rating agencies and banks led them to believe. They don’t want to be deceived again.
http://www.thetrumpet.com/index.php?q=4208.2381.0.0
Want to Refinance? Think Again, Brokers Say
By Reuters 11 Sep 2007 01:54 PM ET
Some 57 percent of mortgage broker customers were unable to refinance their adjustable-rate loans to avoid higher monthly payments in August, suggesting the U.S. housing slump may worsen, according to a national survey on Tuesday. .....
The Campbell survey also found that a third of home purchase closings were canceled in August. Loan closings were canceled for 56 percent of subprime borrowers in the month amid failed approvals, while closings for 21 percent of home buyers with good credit were foiled.
http://www.cnbc.com/id/20723118
Some 57 percent of mortgage broker customers were unable to refinance their adjustable-rate loans to avoid higher monthly payments in August, suggesting the U.S. housing slump may worsen, according to a national survey on Tuesday. .....
The Campbell survey also found that a third of home purchase closings were canceled in August. Loan closings were canceled for 56 percent of subprime borrowers in the month amid failed approvals, while closings for 21 percent of home buyers with good credit were foiled.
http://www.cnbc.com/id/20723118
Retirement Funds Vanish as Bankruptcies Hit Tax-Deferred Scheme
By Erik Larson
Sept. 11 (Bloomberg) -- Marsha Slotten's bad news came in April by e-mail, from a tipster warning that the company holding her retirement nest egg had collapsed.
After racing in a panic to the office of Southwest Exchange Inc. outside Las Vegas, she found a locked door and a sign saying the staff was ``in training.'' It never reopened.
``I was devastated,'' said Slotten, 58, who said she was forced to cancel early retirement after the disappearance of $2.74 million she made selling a strip mall. ``I thought I knew what I was doing, but now my nest egg, my retirement plan, is gone.''
http://www.bloomberg.com/apps/news?pid=20601109&sid=ary1hm_rkIgU&refer=home
Sept. 11 (Bloomberg) -- Marsha Slotten's bad news came in April by e-mail, from a tipster warning that the company holding her retirement nest egg had collapsed.
After racing in a panic to the office of Southwest Exchange Inc. outside Las Vegas, she found a locked door and a sign saying the staff was ``in training.'' It never reopened.
``I was devastated,'' said Slotten, 58, who said she was forced to cancel early retirement after the disappearance of $2.74 million she made selling a strip mall. ``I thought I knew what I was doing, but now my nest egg, my retirement plan, is gone.''
http://www.bloomberg.com/apps/news?pid=20601109&sid=ary1hm_rkIgU&refer=home
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