Foreclosure rates for Waco area up 12 percent from 2007

New foreclosure figures show that more people in McLennan County are needing the help that a massive new housing bill will provide. A total of 99 properties have been posted for foreclosure in McLennan County in August. They’re scheduled to be auctioned off Tuesday on the steps of the McLennan County Courthouse. That’s eight more than were posted in August 2007, meaning the upward trend in foreclosures this year is continuing. Through August, 724 properties have been posted for foreclosure in the county that includes Waco, according to Foreclosure Listing Service. That’s 12 percent more than the 644 posted through August of last year.

Brown, with Foreclose Listing Service, said the 724 postings for McLennan County are the most through August for any year since the company began tracking foreclosures in late 2003. Jim Gaines, a research economist at the Real Estate Center at Texas A&M University, said he believes foreclosure rates statewide could continue to rise for at least another year. In the Austin metropolitan area, foreclosures through August were up by nearly 1,000; and for the San Antonio metropolitan area, they were up by nearly 1,500, according to Foreclose Listing Service. Gaines said Texas remains in better shape than states such as Florida and California, which have been hit hard by foreclosures due to subprime lending. But Texas hasn’t escaped entirely unscathed.

Homeowners who financed their homes with adjustable-rate mortgages two to five years ago are finding themselves with monthly payments they can’t afford as these mortgages “re-set” at higher interest rates, he said. They’re adding to the foreclosure numbers. “These borrowers in trouble may have defaulted three to five months ago but are just now coming up for foreclosure,” said Gaines, who added that foreclosure figures statewide “are coming in waves.” “Some months they are up; some months they are down,” he said. Struggling homeowners locally and around the country may get help from a massive housing bill signed Wednesday by President Bush that provides mortgage relief for 400,000 struggling homeowners. It also offers temporary assistance to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses. Bill Nesbitt, chairman of Central National Bank, said he likes what the government is doing to help homeowners.

“Fannie Mae and Freddie Mac are oddball entities that are part governmental and part privately owned. So we have the shoring up of agencies that also have private shareholders. To that extent, (the housing package) runs against the grain of free enterprise,” said Nesbitt. “All that being said, I do believe the good outweighs the bad,” Nesbitt added. “For these entities to collapse would have waves of consequences for our economy, and some people who did not make bad decisions would get punished in the backlash.” Monte Hulse, chairman of First National Bank of Central Texas, had a different take on the housing legislation. “Generally speaking, both parties are at fault, the borrowers and the lenders. The responsibility should be shared,” Hulse said. “I’m a little concerned that a lot of hard-working people buy houses, pay for them and sacrifice to get it done. But some of these borrowers are getting off with a free ride and not having to pay their debts. “I also know that some lenders took advantage of borrowers, and I don’t want the government bailing them out,” Hulse added.

news source : http://www.wacotrib.com/

Help for Clayton homeowners facing foreclosure

Monday, July 28, 2008, 10:22 AM : The Housing Authority of Clayton County is formulating a plan to bail out homeowners in arrears. According to the Clayton News-Daily, we lead the metro Atlanta area in delinquent mortgages and foreclosures. “Many people found themselves duped by predatory loans after the fact, and was then told they couldn’t do anything about it but pay up or lose their home,” says James Searcy, Chairperson of HACC’s Foreclosure Prevention Committee. “What the [HACC] plan would do is help restore home ownership for those working with our program.”

Clayton residents are already inquiring, and being advised to call back in about 30 days.
HACC’s self-funded plan is not to be confused with the recently approved American Housing Rescue and Foreclosure Prevention Act. H.R. 3221 will provide $4 billion in grants and loans to state and local governments to purchase, rehabilitate and resell, or rent out foreclosed homes, and offer tax credits to first time homebuyers. Another $180 million is earmarked for housing counseling and additional licensing for mortgage originators. Although we resisted the temptation to buy above our means and take on a risky loan, under different circumstances we could need this help, and would welcome it. Plus there are other legitimate reasons people are getting foreclosed on, such as illness and jobs lost in this unstable economy.

“As we progress, the goal is to help rebuild pride in adversely affected neighborhoods which in turn would benefit the economy and reputation of our county,” added Searcy, who suggests contacting your lender and attempt to work out a payment plan, or consult a Realtor or credit counseling service for guidance until their plan is in place. Were you or someone you know a victim of predatory lending? If your home was up for foreclosure, wouldn’t you take advantage of these opportunities? Should Clayton get involved with those who for whatever reason are unable to pay their mortgage?

news source : http://www.ajc.com/

Foreclosure sale of 'Pacman' home postponed

FRANKLIN, Tenn. (AP) — The foreclosure sale of Dallas Cowboys cornerback Adam "Pacman" Jones' Tennessee home has been postponed for a second time. Jones had defaulted on a mortgage with U.S. Bank, according to a notice of foreclosure sale published in June. The foreclosure sale scheduled on the steps of the old Williamson County Courthouse originally had been set for June 27 before being reset for Monday.

Now the sale is set for noon on Aug. 22, according to a recording at the office of attorney J. Phillip Jones, the trustee appointed to the case. The home and 30 acres, located in a Nashville suburb, was purchased for $1.5 million in July 2006, according to tax records. The Tennessee Titans traded the suspended cornerback to Dallas last spring. He missed all the 2007 season while serving an NFL suspension that has not been completely lifted.

news source : http://www.usatoday.com/

Home Foreclosures Double In 2nd Quarter

Home foreclosure filings more than doubled in the second quarter of 2008 from a year ago, according to real estate data released Friday by RealtyTrac Inc. Nationwide, 739,714 households — one in every 171 — received at least one foreclosure-related notice from April to June, as soft housing sales, declining home values, tighter lending standards and a sluggish U.S. economy left many homeowners with few options. Nevada, California, Arizona and Florida continued to have the highest foreclosure rates. One in every 43 Nevada households received a filing during the quarter.

Cities in California and Florida accounted for 16 of the 20 worst metro foreclosure rates. Stockton, Calif., had the worst rate, with one in every 25 homes in the town receiving a foreclosure filing. Economists estimated 2.5 million homes nationwide will enter the foreclosure process this year, up from about 1.5 million in 2007. The latest numbers come as Congress is considering a housing rescue bill that would aid struggling homeowners and provide liquidity for mortgage giants Freddie Mac and Fannie Mae. Also on Friday, the government released data showing sales of new homes fell in June for the seventh time in the past eight months. The Commerce Department reported that sales of new single-family homes dropped by 0.6 percent to a seasonally adjusted annual rate of 530,000 units, following a 1.7 percent fall in May.

news source : http://www.npr.org/templates/

Seminar discusses buying foreclosed properties in area

If there is a huge interest in investing in foreclosure properties—as many experts say there is—little evidence was visible on it Saturday at a foreclosure seminar. Only seven people were present at the opening of the free seminar in the auditorium at Woodbridge Senior High School. Five panelists were present to educate those in attendance on the pros and cons of purchasing a foreclosure property now at a low price and turning it into a profit in the future.

Attorney Paul Nichols opened the seminar and told the gathering that he and the other speakers would outline the necessary steps in obtaining a foreclosure. "It may sound simple but it is a very complex process. Unlike obtaining a bank loan to buy a house where you normally only deal with one person, in the foreclosure process you deal with many … and some may be as far away as California. Fortunately, up until the last two years or so, banks never had to deal with very many foreclosure and now they are being swamped and many don't know how to deal with it," said Nichols.

Realtor Ryan Lynch with Coldwell Bankers, sponsors of the seminar, said he has heard estimates that as many as 100,000 homes may come under foreclosure in the next two years in Northern Virginia "and many of them will continue to be in Prince William County which has one of the highest foreclosure rates in the country." "Many of those potential foreclosure investors don't have a clue as how complex it can become. We are here today to educate them. We want to give back to the community so we won't have to go through such a crisis again in the future," said Jason Andrzejewski, mortgage consultant with WestStar Mortgage Inc.

Also on the panel were Nate Siegel, personal insurance agent with Liberty Mutual Group, and Paul Nichols Jr., settlement agent. Interviews with some of those in attendance revealed that they were there to get information on what was involved in securing a foreclosure property now that prices are down and interests rates fairly low. Helliosise Buzoianu of Lake Ridge said she is thinking about purchasing a foreclosure but has had difficulty in finding information about how to go about it. "I'm here to get as much information as I can. You certainly can't have too much information. Too little will certainly hurt you. I'm looking to invest in a property anywhere in the county." Patrick Mulcahy of Montclair said he was hopeful of purchasing two homes at reduced prices for his two sons but was not optimistic on finding any. "Just in case a good deal comes up, I'm here at the seminar to get as much information as I can," he said.

Janet Woessner of Woodbridge said "You can read many books on how to go about investing in a foreclosure property, but only through seeking answers as such seminars can you really learn a lot—and that's why I'm here today." Linh Vo of Dale City said back in April she purchased a town house for investment that was in foreclosure and is now renting it. "I'm looking to add more properties and I came today to learn more about how to go about it," she said. The five panelists said other seminars are in the planning stage and hopefully more interested people will come out. "I think we can really be of help to them in solving problems," Lynch concluded, particularly with the changes coming up in measures dealing with foreclosures.

news source : http://www.insidenova.com/