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States Step Up Foreclosure Relief by Broderick Perkins
"Defaulting on the Dream: States Respond to America's Foreclosure Crisis" is a must read for home owners struggling with their mortgage.
Produced by the Pew Charitable Trusts as the first detailed dissertation to chronicle the impact of the foreclosure crisis at the state level, the report is chock full of "where-to-go-for-help" advice.
"The stakes are incredibly high. Home ownership is the primary vehicle through which American families build financial security. It also is an essential building block of state and local economies," according to Pew managing directors Susan Urahn and Shelley Hearne.
Their timing is impeccable. One in 33 current U.S. homeowners may be headed toward foreclosure in the coming years because of subprime loans, and in some states the crisis is more acute. In Arizona, one in every 18 homeowners could lose their home. In Nevada, the ratio is one in 11, according to the report.
The report charts some assertive, even experimental state efforts to mitigate financial harm to homeowners, lenders, local communities and state budgets.
- To help borrowers avoid foreclosure and keep their homes, 20 states (including California, Colorado, New York and Nevada) have launched formal foreclosure intervention or prevention initiatives.
- Sixteen states (along with those above, including, Indiana, Maryland, Massachusetts, Michigan, New Jersey, Ohio and Pennsylvania) have enacted both high-cost lending and foreclosure intervention laws.
- Thirteen states (among them Arizona, Illinois, Indiana, Iowa and Minnesota) have created counseling hotlines to help the foreclosure-at-risk, and several states are encouraging (too often reluctant) lenders to work with borrowers to find alternatives to foreclosure.
- Nine states (including Delaware, Maryland, Michigan and Ohio) have established loan funds that can be used to refinance borrowers who have loans they cannot afford or to provide short-term loans to help borrowers overcome financial difficulties.
- To protect vulnerable borrowers from unscrupulous real estate investors, nine states have created laws regulating firms that claim to "rescue" borrowers from default. Since the downturn, rescue operations have preyed upon vulnerable home owners.
- And in an effort to prevent problematic loans from being made in the first place, 31 states (among them, Arkansas, Georgia, Kentucky, Oklahoma, Texas and Utah ) have implemented laws that address predatory lending.
The report also explains the foreclosure process and lists home owners options when they default (become more than 30 days late on a payment) on their mortgage.
- Bring the account current by paying the past due balance on their loan, including late charges and other fees assessed by the lender.
- Renegotiate the terms of their loan with the lender.
- Pay off their loan by refinancing the loan with another lender.
- Sell the property to pay off the current loan, if the home is worth more than the mortgage. Or if the property is not worth the mortgage balance, engage a "short sale" where the lender forgives a portion of the debt provided a seller is available to buy the home.
- Voluntarily convey the property back to the lender through a deed–in-lieu of foreclosure.
The report also lists a host of relief efforts, some on the state level, some not, some well known, some not so well known, including:
- Homeownership Preservation Foundation creates partnerships to help families overcome obstacles that could cause foreclosure.
- National Consumer Law Center uses consumer law to promote marketplace justice for vulnerable home owners and families.
- Minnesota's Foreclosure Prevention Assistance Program provides eligible state home owners with counseling and financial assistance.
Check with your state housing, consumer, social or community agencies to determine what home owner and mortgage programs and assistance is available to help see you through hard times.
Published: October 30, 2008
Foreclosures and Short Sales in the Twin Cities Housing Market
The Price War and Beauty Pageant
In a competitive market, it’s a price war and a beauty pageant. Banks and foreclosures have the luxury of competing on price. Traditional resale homes must compete on condition and amenities. The Minneapolis Area Association of Realtors has conducted a comprehensive study using our local MLS statistics. They separated the foreclosure type property from traditional resale homes. The findings tell the tale of two markets. Where foreclosure properties average sales prices are considerably down, traditional resale properties in most areas are down single digits. As you are blasted with information from the internet, television and newspaper, remember that all real estate is local, from metro area to city/community down to your neighborhood.
September/October Market Observations:
1. As our local market continues to heal, one of the first indicators is a slow down in new listings hitting the market. Historically, the gap between supply and demand narrows in the last quarter. Less competition and continued buyer activity translates into a good window for serious sellers.
2. September experienced a huge spike in sales compared to last year. This is most likely due to down payment assistance programs expiring at the end of the month. Regardless, we anticipate a ripple affect from increased first-time buyer activity.
3. The bottom quartile price ranges continue to sell as banks are slashing prices on foreclosure property. In the peak of the market, the top quartile, new construction activity was driving the numbers upward. Still, nearly 30,000 homes have been sold in 2008. Just off last year’s numbers.
4. If you’ve filled up your gas tank recently you can relate to prices being a moving target. For many inexperienced agents, understanding the current market conditions are puzzling and difficult to extract from statistics. Where some properties are receiving multiple offers and others sit on the market for months with our experience and volume of being in the trenches everyday allows us to keep our finger on the pulse of a dynamic market.
5. Government intervention and stimulus measures will hopefully force lenders to loosen up their purse strings and lend to qualified borrowers. Large banks are still gun shy with the Wall Street roller coaster. Still, we are anticipating interest rates for your run of the mill, 30 year mortgages will remain at or near 6 percent into early 2009.
6. The Supply Demand Ratio and Housing Affordability Index clearly point to a buyers market. In the last decade, there hasn’t been a more affordable selection of homes combined with lower interest rates and incentives for first-time buyers.
Is Minnesota average? Census data may be deceiving!
Is
That lands us right in the middle of all the states, plus the
We rank high on things like income, education and home ownership. We rank low on other measures. But some of our low numbers — for instance, being 44th in the percentage of people living below the poverty level — are actually positive. Our "worst" ranking is having the lowest percentage of any state of people 65 and older with a disability.
Averaging the highs, the lows and a bunch of measures where we truly are "just average" results in our middle-of-the-pack status.
Take a look at the numbers and decide for yourself: Average? Or a cut above?
Housing
Best in the nation: More people own their own home — 75 percent compared to national average of 67 percent.
Average monthly costs for renters at $711, but slightly higher-than-average costs for mortgage-holders, $1,500.
Below-average percent of housing units that are mobile homes, 4 percent.
Income and employment
Tied for best in the nation: 81 percent of people age 16 to 64 in the work force. The national average is 74 percent.
Fourth in the nation: 63 percent of married couples both work. The national average is 53 percent.
Above-average median household income, $55,802.
Below-average percentage of people working in service industries, 16 percent; above-average in professional industries, 22 percent.
Below-average percentage of people in poverty, 10 percent.
Lowest in the nation: 35 percent of people 65 and older have a disability. The national average is 41 percent.
Education
Tied for best in the nation: 91 percent of adults have a high school diploma. The national average is 85 percent.
Above-average percentage of adults with a bachelor's degree, 31 percent.
Average percentage of adults with an advanced degree, 10 percent.
Family life
Seventh in the nation: 52 percent of households are married-couple families. The national average is 50 percent.
Slightly better-than-average ratio of single men to single women, 115 to 100.
Average percentage of grandparents who take care of their grandchildren, 44 percent.
Below-average number of people per household, 2.45 people.
Transportation
Sixth in the nation: 36 percent of workers live in one county and work in another. The national average is 28 percent.
Average percentage of people who take public transportation, 3 percent.
Below-average commute times to work, 22.3 minutes.
Diversity
Eighty-eight percent of the population is white. The national average is 74 percent. That means we rank 39th in diversity.
Average percentage of people who are foreign born, 7 percent.
Average percentage of people who speak a language other than English at home, 10 percent.
Information from:
Article by By Mary Jo Webster
New Oakdale Listing! Rambler Style Twinhome!
5026 Grenadier Avenue N.
Offered at $309,900
Mint Condition three bedroom, three bath walkout rambler style twinhome. Spacious open floor plan, private master suite with walk-in closet and master bath. Quality upgrades throughout including Maple flooring, French doors, ceramic tile, gas fireplace and vaulted ceilings. Finished walkout lower level with workshop, full bath with whirlpool tub, two additional bedrooms, and family room with walkout to private patio.
Call for more information or to schedule an appointment to see this beautiful home!
1-800-882-7891 ext. 2174
New Maplewood Listing!
Welcome to 2185 Stanich Street North
Maplewood
Outstanding custom built home! Main floor master suite with deluxe bath and walk-in closet. Main floor formal and informal living spaces are accented by vaulted ceilings. Spacious eat-in kitchen with 8 foot center island. Two large bedrooms upstairs with walk-in closets. Finished lower level features a spacious family room, additional bedroom, and storage. Relax in the four season porch overlooking the private, wooded yard. You’ll love the architectural details and soft neutral colors throughout this beautiful home.
New Listing! North St. Paul Rambler!
Offered at $259,900
Hard to find - four bedroom walkout rambler on a private wooded lot. Spacious eat-in kitchen with upgraded appliances, vaulted ceilings and walkout to the deck. Three spacious bedrooms on the main level including king-size master bedroom with “His and Her” closets. Deluxe lower level “L Shaped” family room with sunny windows, gas fireplace and walkout to backyard.
Call to schedule your private showing!
1-800-882-7891 ext.2104
Pre MLS Listing!! End unit Oakdale Townhome!
4867 Helena Lane North #5
Oakdale, MN 55128
Offered at $164,900
Immaculate two level prime end unit with two car garage and private patio. Two spacious bedrooms upstairs including king-size master bedroom with walkthrough huge walk-in closet. Upper level loft is great for office, sitting room, or use as a 3rd bedroom. Lovely open floor plan with DirectVent fireplace and vaults. Convenient upper level laundry with full-size washer and dryer. Maple flooring throughout upper level and plenty of closest and storage space.
March Real Estate Market Trends
Displaying blog entries 11-20 of 39










