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The Inventory Of Foreclosed Properties Has Begun To Shrink…

This is a great explanation and graphic concerning the states that are most impacted by seriously delinquent mortgages.1

Tie this to the concept that the “normal level” of distressed housing inventory is under 5% (REALTOR® Magazine January/February 2012 “Clean Slate”)  one can see that there are specific areas of the country with ongoing issues, but that there is improvement.

Map of Seriously Delinquent by %

“The inventory of foreclosed properties has begun to shrink, and the pace at which properties are entering foreclosure is slowing. While foreclosure filings are being curtailed by a variety of judicial and regulatory constraints, mortgage servicers are completing REO sales faster than they are completing foreclosures,” said Mark Fleming, chief economist with CoreLogic. “This is the first time in a year that REO sales have outpaced completed foreclosures, and part of the reason for the decrease in the foreclosure inventory.”

According to our analysis, for 2011 completed foreclosures totaled 830,000 compared with 1.1 million in 2010. In December 2011 there was a month-over-month decrease in completed foreclosures to 55,000 from 57,000 in November 2011. The December 2011 completed foreclosures figure was also down from one year ago when it stood at 67,000. From the start of the financial crisis in September 2008, there have been approximately 3.2 million completed foreclosures.

Nationally 1.4 million homes, or 3.4 percent of all homes with a mortgage, were in the foreclosure inventory as of December 2011. The foreclosure inventory is the stock of homes in the foreclosure process.

*A property moves into the foreclosure inventory when the mortgage servicer places the property into the foreclosure process after serious delinquency is reached and remains there until the foreclosure is completed. The foreclosure inventory is measured only against homes with an outstanding mortgage, rather than against all homes. Nationwide, roughly one-third of homeowners own their homes outright.

 

 1Reprinted with permission from TICOR Title, Corvallis, Cheryl Summers

Homeowner Relief | 25 Billion in Fraud Settlement

Homeowner Relief and the $25-billion Foreclosure Deal

Is this another case of “I’m from the government and I’m here to help” or will it really help? Is this another pit of money that tax payers and the American public will fund? Only time will tell…

Some points I’ve gleaned from the reporting:

  • This is in part “restitution” from large mortgage servicers for improper practices during the foreclosure process. (In my opinion, this will create an expense to the lenders that will be paid for by increasing costs to other consumers–odds are not on the side of the lenders taking less profit.) 
  • The settlement creates new “standards” for mortgage servicing to be overseen by and independent monitor (aside: is this just another bureaucratic layer?)
  • One aspect that appears to be quite helpful is that consumers will have one point of contact when working with their lenders toward loan modifications.  The Washington Post reported that the lenders will not continue to process foreclosures and modifications at the same time on the same loan.
  • The lenders have agreed to devote billions of dollars to partially compensate people that lost their homes and help current homeowners avoid foreclosure.
  • There is $17 Billion earmarked as principal reductions (paying down the loans) for about 1 million homeowners.
  • $5 billion in cash is designated as restitution for foreclosure paperwork problems and other issues with the servicers.  1.5 Billion of the state money will be distributed directly to people whose home were foreclosed between 2008-2011 and there was a problem with the way the process was handled (lost documents, robo-signing).  The average check would be between $1,500-2,000.
  • 9 additional servicers have been asked to sign-on to the agreement; if they did the dollar figure could go as high as $45 billion.
  • Loans that are owned/serviced by Fannie Mae and Freddie Mac are not eligible (Fannie Mae and Freddie Mac are by far the largest servicers of mortage loans in the country, this will narrow the field of those able to take advantage of the settlement significantly)
  • The settlement is said to address civil claims it does not prevent pursuit of criminal actions at a federal or state level.

All of this is well and good, provided the funding goes to those that were really harmed or are in need.  But, history often repeats itself.  What I’d like to not see is a process fraught with fraud (those not harmed benefiting), a process that is not bogged down in bureaucracy, and huge piles of money ear-marked to help people that end up absorbed into the overhead of the process.

Further, early in the melt-down, there were reports of abuses in the loan origination process that involved borrowers submitting fraudulent loan applications.  A couple of examples might be: 

  • Flippers that took loans intended for primary residences when they really did not intend to do so or borrowers that used “stated income” and inflated their income just to qualify.
  • Those that filed fraudulent loan applications and then lost their properties to foreclosure, should not benefit from this settlement.
  • People that refinanced took the cash and then defaulted
  • People that took “strategic” default as a way “out” by buying a replacement property then walking.

Related Links:

LA Times Story

Washington Post Story

The Settlement An overview

Identity Theft: Part III Keep Your Computer Safe

Keys on ComputerMany people are afraid thieves will somehow get their information off of the computer. This is possible for them to do, but there are ways to protect yourself. Some people find that installing anti-virus, anti-spy ware, firewall protection and hardware firewalls is over-kill. In reality, when protecting your personal information you should always err on the side of caution.

  • When setting up wireless Internet access, educate yourself on wireless security.
  • Store your backed-up data away from your computer.
  • Never open an e-mail from someone you don’t know.
  • Never open attachments unless you know where it is coming from. Make sure you set up Windows to show all file extensions.
  • Make sure you set up your browser to block pop-ups.
  • Never use your credit card on a website that does not direct you to a secure page with a URL starting with https://.
  • Use different passwords for every single site you use that asks for one. Always mix letters and numbers to make up that password.
  • Never keep financial information on your hard drive.

For more information on Computer Safety go to Internet Safety Solutions.

Identity Theft Part II: Ways To Make Sure It Never Happens To You

Money and Credit CardStatistics show that around 5% of reported identity theft case victims are children. The reason your child is a target is because the crime will very likely go undetected for years. Most do not realize it until they are in college and apply for their first credit card, and find then that they have been victimized. Take heart, there are many ways to avoid becoming a victim of identity theft. Here are some of them:

  • Create a list of every credit card number and bank card that you keep in your wallet.
  • Never keep your social security card or any information with your social security number on it in your wallet.
  • Never give out any private information on your e-mail.
  • Cease all bank and credit card mailings.
  • Always reconcile your bank statements and go over your credit card statements. Some thieves start small, to find out who pays attention.
  • Keep your car registration and car insurance together in a closed envelope, hidden away in your car. Be sure to always lock your car.
  • Try never to use a public computer for business use or to make a purchase.
  • Memorize your ATM pin, and make sure no one is standing nearby when you use your ATM card.
  • Never save financial information on your cell phone.
  • Never apply for a job on-line, unless the employer has a verifiable address.

For more information about safer online banking go to going paperless.

Identity Theft Part I: Learn All Of The Ways That Thieves Can Steal Your Personal Information

PadlockIdentity theft has become a very serious problem in the United States. Thieves are not only stealing your personal information for themselves, but many simply sell it on the black market to another thief. They are using this personal information not only to obtain cash and credit cards, but high-cost medical procedures as well. There are a myriad of ways that thieves can steal your private information. Be aware of the following threats, take action to avoid them and do not provide confidential information unless you initiate the contact.  Your bank, the IRS and other “official” entities will never ask for personal data over the phone or internet.

  • Phishing: This is an e-mail in your Inbox that claims to be from either your bank, Paypal or Ebay, or other online service. They then ask you to click on a link and enter your personal information.
  • Spoofing and Pharming: Thieves can actually redirect legitimate website traffic to an imposter site, where they will ask you to enter your personal information.
  • Spyware: It is very common for people to mistakenly download illicit software and find themselves accidentally clicking on a pop-up. This opens the door for thieves to steal your credit card numbers and passwords by accessing information on your hard drive.
  • Vishing: This is “voice phishing”, which is when a thief sends you a phone message asking you to key in your personal information.
  • Bank card skimming: Thieves actually add a fake ATM slot and camera to a legitimate cash machine so they can copy your account information. Servers at restaurants can also be armed with a portable card reader.
  • Thieves try to steal your wallet and can also go through your garbage for personal information.

If you are concerned that you are an Identity theft victim go to the Federal Trade Comission website for more information.

Lebanon, Oregon | Absorption Rates through March 2009

Includes all single-family residential properties on less than two acres
as reported by WVMLS.
Data taken from WVMLS 4/7/2009

Price Range Active Listings as of 4/7/2009 Sold Listings Last 6 Months Average Sold Per Month Months of Inventory
$0 – $99,999 12 10 1.67 7.20
$100,000 – $149,999 66 22 3.67 18.00
$150,000 – $199,999  53 20 3.33 15.90
$200,000 – $249,999 34 5 0.83 40.80
$250,000 – $299,999 17 7 1.17 14.57
$300,000 – $349,999 1 1 0.17 6.00
$350,000 – $399,999 3 * 0.00 *
$400,000 – $449,999 * * 0.00 *
$450,000 – $499,999 1 * 0.00 *
$500,000 – $599,999 * * 0.00 *
$600,000 – $699,999 * * 0.00 *
$700,000 + * * 0.00 *
  187 65 0.90 17.08

Corvallis, Oregon | Absorption Rates through February 2009

Includes all single-family residential properties on less than two acres
as reported by WVMLS.
Data taken from WVMLS 3/16/2009

Price Range Active Listings as of 3/16/2009 Sold Listings Last 6 Months Average Sold Per Month Months of Inventory
$0 – $99,999 2 0 0.00 *
$100,000 – $149,999 20 6 1.00 20.00
$150,000 – $199,999 36 30 5.00 7.20
$200,000 – $249,999 57 37 6.17 9.24
$250,000 – $299,999 56 36 6.00 9.33
$300,000 – $349,999 35 11 1.83 19.09
$350,000 – $399,999 27 9 1.50 18.00
$400,000 – $449,999 21 7 1.17 18.00
$450,000 – $499,999 12 3 0.50 24.00
$500,000 – $599,999 20 7 1.17 17.14
$600,000 – $699,999 10 1 0.17 60.00
$700,000 + 7 1 0.17 42.00
  303 148 2.06 22.18

Albany, Oregon | Absorption Rates through February 2009

Includes all single-family residential properties on less than two acres
as reported by WVMLS.
Data taken from WVMLS 3/16/2009

Price Range Active Listings as of 3/16/2009 Sold Listings Last 6 Months Average Sold Per Month Months of Inventory
$0 – $99,999 16 10 1.67 9.60
$100,000 – $149,999 61 43 7.17 8.51
$150,000 – $199,999 108 77 12.83 8.42
$200,000 – $249,999 84 39 6.50 12.92
$250,000 – $299,999 56 29 4.83 11.59
$300,000 – $349,999 32 13 2.17 14.77
$350,000 – $399,999 27 11 1.83 14.73
$400,000 – $449,999 6 3 0.50 12.00
$450,000 – $499,999 10 2 0.33 30.00
$500,000 – $599,999 1 2 0.33 3.00
$600,000 – $699,999 3 0 0.00 *
$700,000 + 2 0 0.00 *
  406 229 3.18 12.55

Includes all single-family residential properties on less than two acres
as reported by WVMLS.
Data taken from WVMLS 2/9/2009

Price Range Active Listings as of 2/9/2009 Sold Listings Last 6 Months Average Sold Per Month Months of Inventory
$0 – $99,999 1 0 0.00 *
$100,000 – $149,999 5 3 0.50 10.00
$150,000 – $199,999 14 4 0.67 21.00
$200,000 – $249,999 8 4 0.67 12.00
$250,000 – $299,999 9 3 0.50 18.00
$300,000 – $349,999 8 2 0.33 24.00
$350,000 – $399,999 4 1 0.17 24.00
$400,000 – $449,999 2 1 0.17 12.00
$450,000 – $499,999 1 1 0.17 6.00
$500,000 – $599,999 5 0 0.00 *
$600,000 – $699,999 1 0 0.00 *
$700,000 + 0 0 0.00 *
58 19 0.26 15.88

Corvallis, Oregon | Absorption Rates through January 2009

Includes all single-family residential properties on less than two acres
as reported by WVMLS.
Data taken from WVMLS 2/9/2009

Price Range Active Listings as of 2/9/2009 Sold Listings Last 6 Months Average Sold Per Month Months of Inventory
$0 – $99,999 1 0 0.00 *
$100,000 – $149,999 8 5 0.83 9.60
$150,000 – $199,999 27 31 5.17 5.23
$200,000 – $249,999 37 49 8.17 4.53
$250,000 – $299,999 44 46 7.67 5.74
$300,000 – $349,999 27 13 2.17 12.46
$350,000 – $399,999 22 13 2.17 10.15
$400,000 – $449,999 15 9 1.50 10.00
$450,000 – $499,999 13 4 0.67 19.50
$500,000 – $599,999 17 7 1.17 14.57
$600,000 – $699,999 10 0 0.00 *
$700,000 + 5 2 0.33 15.00
  226 179 2.49 10.68