For the third quarter of 2011 RealtyTrac reports that 20 percent of all existing home sales were bank owned or being foreclosed. This is down from 30 percent of all sales in the third quarter of 2010.

The latest RealtyTrac figures might be seen as good news were it not for the glum reality which makes such numbers correct: There are fewer foreclosures in large measure because lender paperwork is not accepted at face value in many courts as a result of robo-signing. Yes, courts will accept lender foreclosure claims, but in many cases only with additional assurances and reviews that delay the process — and protect homeowners from flawed foreclosure claims.

“While foreclosures continue to represent an excellent bargain-buying opportunity for many buyers and investors, foreclosure sales accounted for a smaller share of the total market in the third quarter. That trend is not too surprising given the continued ambiguity surrounding proper foreclosure procedures — and the ripple effect that has on sales of foreclosed properties that might have been improperly foreclosed,” said Brandon Moore, chief executive officer of RealtyTrac. “The sooner the market gets more clarity about accepted foreclosure procedures, primarily through the long-promised settlement between multiple states attorneys general and major lenders, the sooner the market can more efficiently dispose of these distressed properties.

“Even with the hurdles to selling foreclosures, foreclosure sales continue to represent a historically high percentage of all sales,” Moore continued. “In 2005 and 2006, foreclosure sales consistently accounted for less than 5 percent of all sales nationwide.”

Pricing

Buyers, says RealtyTrac, purchased 221,536 residential properties during the third quarter that were in some stage of foreclosure (NOD, LIS, NTS, NFS) or bank-ownship (REO) during the third quarter.

The average sales price of homes in foreclosure or bank owned was $165,322 in the third quarter, according to the company.

The average sales price of these foreclosure-related sales was 34 percent below the average sales price of homes not in foreclosure, matching the 34 percent foreclosure discount in the second quarter but below the 37 percent discount in the third quarter of 2010.

RealtyTrac also provides the following information:

Pre-foreclosure sales flat from year ago, REO sales down

A total of 92,824 pre-foreclosure homes — in default or scheduled for auction — sold to third parties in the third quarter, a decrease of 9 percent from the previous quarter and nearly identical to the 92,967 pre-foreclosure sales in the third quarter of 2010. Pre-foreclosure sales accounted for nearly 9 percent of all sales, the same as in the second quarter, but down from 12 percent of all sales in the third quarter of 2010.

Pre-foreclosure sales increased more than 30 percent on an annual basis in Michigan (up 68 percent), North Carolina (up 44 percent), Ohio (up 43 percent) and Georgia (up 35 percent). Pre-foreclosure sales outnumbered REO sales in several states in the third quarter, including Colorado, Florida, New Jersey and New York.

Pre-foreclosures, which are often sold via short sale, had an average sales price nationwide of $191,119, a discount of 24 percent below the average sales price of homes not in foreclosure. That was up from the 23 percent discount in the previous quarter and matched the 24 percent discount in the third quarter of 2010. Pre-foreclosures that sold in the third quarter took an average of 318 days to sell after receiving an initial foreclosure notice, up from an average of 245 days in the second quarter and average of 236 days in the third quarter of 2010.

A total of 128,712 bank-owned (REO) homes sold to third parties in the third quarter, down 13 percent from the second quarter and down nearly 8 percent from the third quarter of 2010. REO sales accounted for nearly 12 percent of all sales in the third quarter, down from 13 percent of all sales in the previous quarter and down from nearly 18 percent of all sales in the third quarter of 2010.

Nationally, REOs had an average sales price of $146,437 in the third quarter, a discount of nearly 42 percent below the average sales price of homes not in foreclosure. That matched a 42 percent discount on REOs in the second quarter, but was down from a 45 percent discount in the third quarter of 2010. REOs that sold in the third quarter took an average of 193 days to sell after being foreclosed on, up from 178 days in the second quarter and 161 days in the third quarter of 2010.

Nevada, California and Arizona post highest percentage of foreclosure sales

Foreclosure-related sales accounted for nearly 57 percent of all residential sales in Nevada during the third quarter, the highest percentage of any state. Third parties purchased a total of 13,992 homes in foreclosure or bank owned in Nevada during the third quarter, nearly identical to the 13,858 foreclosure-related sales in the previous quarter, but up 24 percent from the third quarter of 2010.

Third parties purchased a total of 62,583 homes in foreclosure or bank owned in California, representing nearly 44 percent of the state’s total residential property sales in the third quarter — the second highest percentage of any state. Foreclosure-related sales in California decreased nearly 7 percent from the previous quarter but were up 7 percent from the third quarter of 2010.

Arizona foreclosure-related sales accounted for 43 percent of all sales in the state, the third highest percentage of any state. Third parties purchased a total of 21,619 homes in foreclosure or bank owned in Arizona during the quarter, down nearly 14 percent from the previous quarter, but up 19 percent from the third quarter of 2010.

Other states where foreclosure-related sales accounted for at least 20 percent of all sales included Georgia (34 percent), Colorado (26 percent) and Michigan (23 percent).

Due to a nearly 30 percent decrease from the previous year, Florida foreclosure-related sales in the third quarter accounted for 19 percent of all sales in the state — down from 39 percent of all sales in the third quarter of 2010.

Metros with biggest foreclosure discounts

Among metropolitan statistical areas with at least 100 foreclosure-related sales during the third quarter, the Trenton-Ewing, N.J., metro area posted the biggest foreclosure discount. The average price of a foreclosure-related sale in the metro area was $108,302, nearly 68 percent below the average sales price of homes not in foreclosure. Foreclosure-related sales accounted for 8 percent of all sales in the Trenton-Ewing metro area during the third quarter.

Foreclosure-related sales accounted for nearly 13 percent of all sales in the St. Louis metro area during the third quarter and sold at an average price of $80,545, nearly 55 percent below the average price of non-foreclosure sales in the metro area — the second highest foreclosure discount among metro areas with at least 100 foreclosure-related sales.

The Milwaukee metro area documented the third highest foreclosure discount, with an average foreclosure-related sales price of $93,250 — nearly 53 percent below the average sales price of non-foreclosure properties. Foreclosure-related sales accounted for 17 percent of all sales in the Milwaukee metro area in the third quarter.

Other metro areas with a foreclosure discount of at least 50 percent were Springfield, Mass. (52 percent),Saginaw, Mich. (52 percent), New Haven-Milford, Conn. (51 percent), Memphis (51 percent), San Francisco (51 percent), Toledo, Ohio (50 percent), Bridgeport-Stamford-Norwalk, Conn. (50 percent), and Atlanta (50 percent).

Glossary of Terms

Foreclosure (FC) sale: a sale of a property that occurs while the property is actively in some stage of foreclosure (NOD, LIS, NTS, NFS or REO). This includes only sales to third-party buyers or investors not involved in the foreclosure process. It does not include property transfers from the owner in default to the foreclosing bank or lender.

REO sale: a sale of a property that occurs while the property is actively bank owned (REO).

Pre-foreclosure sale: a sale of a property that occurs while the property is actively in default (NOD, LIS) or scheduled for foreclosure auction (NTS, NFS).

Pct. of all sales: total number of Foreclosure Sales (or Pre-Foreclosure Sales or REO Sales) as a percentage of all residential sales during the quarter or year.

Avg. FC sales price: the average sales price of Foreclosure Sales (or Pre-Foreclosure Sales or REO Sales) during the quarter or year, excluding sales with no sales price.

Avg. FC discount: the percentage difference between the average sales price of foreclosure sales and the average sales price of non-foreclosure sales during the quarter or year.

Avg. REO discount: the percentage difference between the average sales price of REO sales and the average sales price of non-foreclosure sales during the quarter or year.

Avg. pre-foreclosure discount: the percentage difference between the average sales price of pre-foreclosure sales and the average sales price of non-foreclosure sales during the quarter or year.

1 in 5 Home Sales Distressed, Foreclosed or Bank Owned, Says RealtyTrac is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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This, as the expression goes, should be interesting.

Teutul is likely to be a strong competitor because — whether a fan or not — he’s an actual, real-life entrepreneur, someone who started with nothing and went on to create several working businesses as well as a TV franchise. His American Chopper series on Discovery has been a major cable TV hit and ended the season strongly with a three-way bike build-off between Jesse James, son Paul Jr. and himself. In the end, Paul Sr. and his Orange County Choppers finished a distant third in the motorcycle design contest with the winner being his son and PJD Designs

Teutul has also known his share of adversity, including an impoverished and difficult childhood, as a mortgage borrower who faced the foreclosure of his headquarters building by the lender, and as a father who has been publicly estranged from his sons Dan, Paul, Jr., and Mikey.

As much as his successes, it’s probably his faults and failures which make Teutul interesting — and human.

Each of the contestants vies not only for Trump’s adoration but also for a charity. Teutul will use his winnings to support the Make-A-Wish Foundation, an organization which provides grants to support the wishes of children with life-threatening medical conditions.

Questions

Having Paul Sr. on Celebrity Apprentice raises several questions.

First, did the Celebrity Apprentice get the right Teutul? There’s an argument to be made that Paul Jr. would have been the better contestant because of his popularity and success.

Second, does the appearance on the Trump program signal that Paul Sr. will have a different role on the next edition of American Chopper; that is, will the program be more focused on his son? Will there be an expanded role for Jesse James or no role?

Third, which program benefits more — American Chopper or Celebrity Apprentice — from the appearance of Paul Sr?

Fourth, can anyone see a Trump cycle in the future? Even better, can anyone imagine Trump riding down Fifth Avenue on such a creation, hair blowing in the wind….

Fifth, what happens if Trump gets involved in a contentious political debate? How will that impact Celebrity Apprentice? Will there be higher instant ratings but less long-term appeal?

Contestants

For the 2012 edition of the show, NBC Entertainment says the new cast will be the largest ever with 18 contestants waiting to hear who will be fired by Trump on each segment.

The men are: late-night legend Arsenio Hall, pop star Clay Aiken, radio host Adam Carolla, the “Incredible Hulk” Lou Ferrigno, magician/comedian Penn Jillette, rock star Dee Snider, actor George Takei, IndyCar legend Michael Andretti, and star of “American Chopper,” Paul Teutul, Sr.

The women are: supermodel Cheryl Tiegs, pop star Debbie Gibson, actress and multi-Grammy winner Tia Carrere, author and reality star Victoria Gotti, comedienne Lisa Lampanelli, former Miss Universe Dayana Mendoza, singer and actress Aubrey O’Day, actress and model Patricia Velasquez, and star of “Real Housewives of New Jersey,” Teresa Giudice.

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Think of it as a back-door tax increase. While the public was watching the payroll debate in Washington Congress was actually increasing the cost to finance or refinance a home.

The Temporary Payroll Tax Cut Continuation Act of 2011 was widely applauded because it prevented the Social Security withholding from increasing to 6.2 percent from 4.2 percent of wages. However, the extension is only for two months and is set to end as of February 29, 2012. In other words, the payroll tax debate will be renewed once Congress returns from the mid-winter recess.

New Borrower Costs

Buried in the payroll compromise are new costs for borrowers. Specifically, these new costs come in two forms.

First, Congress has directed Fannie Mae and Freddie Mac to increase the fees lenders pay by ten basis points or .10 percent. This new cost — called the g-fee — will begin April 1, 2012.

This increase is substantial. According to Market Watch, lender fees now amount to .26 percent of the loan amount. The congressional increase will cost borrowers with a $200,000 mortgage an additional $5,400 over a 30-year loan term.

Second, Congress has directed the FHA to increase its annual mortgage insurance premium or MIP by .10 percent.

The FHA, which is an insurance program, has two borrower charges.

• There is an up-front mortgage insurance premium which is now equal to 1 percent of the mortgage amount.
• There’s also an annual mortgage insurance premium which in 2011 was increased to 1.15 percent for most borrowers. It will now rise to 1.25 percent.

The annual MIP increase will be costly to borrowers. The expense of a $200,000 mortgage will grow by about $4,200 over the life of the loan.

Taken together, the two increases created in the payroll tax bill will raise the cost of a $200,000 mortgage by roughly $9,600 over the life of the loan.

Impact

The result of the congressionally-mandated increases is that FHA loans will be artificially less attractive.

So is the MIP increase necessary?

The purpose of the MIP is to collect money from FHA borrowers which is placed in a reserve called the Mutual Mortgage Insurance Fund. This fund is supposed to equal 2 percent of the FHA loans outstanding but is now below the required level.

However, HUD has reported to Congress that under the current MIP structure the reserve fund will grow to the required 2 percent by 2014.

Moreover, the policies and programs which created problems for the FHA loan system — policies and programs and put in place by the Bush Administration prior to 2009 — have been changed. For instance, the required down payment has been raised, the mortgage insurance premium schedule has been changed, “seller-funded downpayment assistance loans” have been eliminated and lender standards have been tightened. The results are plainly visible when looking at the FHA’s book of business

Lenders will pass through the new charges, raising home financing costs nationwide at a time when the housing market remains stalled. Higher mortgage costs mean borrowers will qualify for less financing so they will have less ability to pay higher prices. Home sellers will thus feel part of the fee increase in the form of less buyer demand and reduced pressure to raise prices.

The net result of the congressional action is that borrowers will needlessly pay more for FHA financing and home sales will suffer. Various politicians will no doubt explain how the legislation made the FHA reserve fund “more secure” when, in fact, it was becoming more secure without a further increase in borrower costs.

FHA Mortgage Insurance Premium To Rise In 2012 is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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And more hard news: on average folks who work in financial services make 52 percent more than you do.

“Corporate profits with inventory valuation and capital consumption adjustments) increased $32.5 billion in the third quarter,” said the BEA. So if company profits are on the rise should that not mean the government will collect more tax revenue and reduce the deficit? Er, no, said the BEA:

“Taxes on corporate income decreased $9.1 billion in the third quarter, compared with a decrease of $1.8 billion in the second.”

Well wait a minute. There must be some accounting in there which shows that for some reason corporate profits are down and therefore taxes should be lower.

Nope. That’s not it.

The domestic profits of financial corporations — banks, financial holding companies, etc. — increased $9.2 billion in the third quarter. Non-financial corporations saw profits grow by $17.9 billion.

You’ll Earn More In Banking

Notice that profits rose by $27.1 billion — of which 34 percent was earned by banks and financial companies.

In terms of income, the Bureau of Labor Statistics says the median wage of someone in the financial services field is $67,690 versus the general wage of $44,410. That’s a 52% premium.

Income, of course, is very important. The more you earn the more likely you are to get a good FHA, VA or conventional mortgage at a good rate — and the less likely you are to be foreclosed.

For the past few weeks the government has been debating the issue of whether to raise the payroll tax by 2 percent — but there has been little or no debate regarding an increase in effective corporate taxes. For all the yelling and screaming of those who claim that business is over-regulated and over-taxed, the plain fact is that while corporate revenues are rising corporate taxes are not — meaning Uncle Sam has less money from the very businesses it nurtures and protects until they are large enough to take jobs overseas, buy back their own stock and lay-off workers within our borders.

Today the top marginal tax rate is 35 percent for individuals. Under President Reagan the top marginal rate was 69% and it was 92% under President Eisenhower, 91% under Kennedy, 77% under Nixon and Johnson, and 39.6% under Clinton.

Deficit Interest

The real cost of the deficit lies ahead. Right now Uncle Sam has a mountain of debt but pays virtually no interest. As one example, Treasury inflation-protected securities, or TIPS, reached a record yield of minus 0.877% in mid-December.

Imagine the deficit if interest rates increase…and then try to imagine a world where interest rates will not go up at some point….

Happy New Year: Corporate Profits Up, Taxes Down is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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“It’s now been more than 150 years since Professor Charles Minnigerode decorated Williamsburg’s first Christmas tree,” says Robert C. Wilburn, president of the Colonial Williamsburg Foundation.

“A German native, the College of William and Mary professor brought the festive tradition with him to the United States. When Nathaniel Beverley Tucker invited Professor Minnigerode to celebrate the holiday season at the St. George Tucker House, he trimmed a tree with candles and fancy paper decoration as a present for Tucker’s children.”

Beverley Randolph Tucker, a descendant, says “regular sized candles were cut down and fastened on the tree, nuts were gilded, and other ornaments made. Presents were probably not distributed at this time, but there were songs, games, and refreshments.” (See: Tales of the Tuckers, Dietz Printing Co., Richmond, VA, 1942).

From that humble beginning (and no doubt similar celebrations with other immigrants), evolved what is now a tradition observed in millions of American homes.

The St. George Tucker House

As to the St. George Tucker house, it was donated to Williamsburg in 1993 after more than 200 years of family ownership. Used now as a donor hospitality center, the home is one of the most unusual examples of original colonial architecture to be found.

St. George Tucker was born in Bermuda in 1752 and came to the colonies to study law at William and Mary under George Wythe, whom he later succeeded. He was a member of the collegiate Flat Hat Society — a fraternity that evolved into what we today know as Phi Beta Kappa.

In 1788, Tucker bought three lots on the green in Williamsburg near the governor’s palace. This was once the site of the first theater in America (Levingstone’s) as well a small house. Tucker then built a home on the property which was expanded, wing after wing, until he decided to try something different: the house was pushed forward with the result that a visitor now finds parlors that have windows looking over the Williamsburg green as well as windows which look into the home’s central hallway. (Today there is actually a modern version designed in the style of original house.)

Such expansion was a necessity because Tucker had nine children and five stepchildren from two wives. While not all lived to adulthood, a family dinner could include Tucker as well as three children who served in the Congress at the same time: Beverley Tucker, Henry St. George Tucker and John Randolph (a stepson). His brother, Thomas T. Tucker, a physician, was appointed Treasurer of the United States by Jefferson and served from 1801 to 1828.

(A third brother, Henry Tucker, was President of the Bermuda Governor’s Council. Today the Tucker House in St. George’s Bermuda is a national museum while in Hamilton the famous Bermuda Underwater Exploration Institute was founded by a family descendant, Teddy Tucker. Teddy Tucker, in turn, was the basis for Peter Benchley’s book, The Deep.)

The Revolution

“When he was in his early twenties,” writes Beverly Randolph Tucker of St. George Tucker, “he happened to be in Richmond during the meeting of the Assembly at St. John’s Church and to have been sitting in the gallery when Patrick Henry made his famous ‘Give me Liberty or Give me Death‘ speech and immediately afterward St. George Tucker wrote what we know of the speech today.”

When the Revolution began, the British seized the Williamsburg magazine to deprive the colonialists of ammunition and powder. Believing that fair is fair, Tucker sailed to Bermuda, “liberated” the British magazine, and brought tons of arms and ammo back to the colonialists.

Legacy

After the revolution, Tucker taught law at William and Mary, became a judge, and in 1803 published an Americanized edition of Blackstone’s Commentaries. This five-volume set is one of the foundations of our legal system and today is still in print.

St. George Tucker held a number of opinions which are at the core of American law and custom.

On religion he wrote, “liberty of conscience in matters of religion consists in the absolute and unrestrained exercise of our religious opinions, and duties, in that mode which our own reason and conviction dictate, without the control or intervention of any human power or authority whatsoever.”

Tucker was also a strong believer in the concept of a free press.

“Liberty of speech and of discussion in all speculative matters, consists in the absolute and uncontrollable right of speaking, writing, and publishing, our opinions concerning any subject, whether religious, philosophical, or political….”

Perhaps most remarkably, in a state and a society where the ownership of slaves was equated with wealth and status, and where Tucker was among the wealthiest people in Virginia, he wrote in 1796 — more than 60 years before the start of the Civil War — an essay entitled A Dissertation on Slavery: With a Proposal for the Gradual Abolition of It in the State of Virginia.

“Whilst America hath been the land of promise to Europeans, and their descendants, it hath been the vale of death to millions of the wretched sons of Africa,” he wrote. “The genial light of liberty, which hath here shone with unrivalled lustre on the former, hath yielded no comfort to the latter, but to them hath proved a pillar of darkness, whilst it hath conducted the former to the most enviable state of human existence. Whilst we were offering up vows at the shrine of Liberty, and sacrificing hecatombs upon her altars; whilst we swore irreconcilable hostility to her enemies, and hurled defiance in their faces; whilst we adjured the God of Hosts to witness our resolution to live free, or die, and imprecated curses on their heads who refused to unite with us in establishing the empire of freedom; we were imposing upon our fellow men, who differ in complexion from us, a slavery, ten thousand times more cruel than the utmost extremity of those grievances and oppressions, of which we complained.”

Tucker died in 1827, and it was his son, Nathaniel Beverley Tucker, also a judge and professor of law at William and Mary, who hosted the famous tree in 1842.

No doubt if Mr. Tucker were with us today he would extend to one and all the very best wishes for this holiday season and the coming New Year.

————————
Published originally by Realty Times on December 25, 2005, posted with permission and expanded from the original. This post is re-published annually and with good wishes to all.

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The filing decline may seem like good news and surely it’s a welcome relief for many families, however behind the lower numbers is the reality that foreclosure activity has been delayed by the continuing inability of loan servicers to get their paperwork right. The robo-signing scandal which first slowed the market last winter continues to hobble foreclosure activity. This means recovery in the housing market will remain stalled until the inventory of distressed properties is substantially reduced.

Robo-signing — the practice of having clerks sign foreclosure affidavits without actual knowledge of loan ownership or borrower default — has been discovered nationwide. Some of the results include foreclosing on active-duty military personnel and at least one case where a homeowner faced foreclosure — even though the property had been bought for cash and was mortgage-free!

“Despite a seasonal slowdown similar to what we’ve seen in each of the past four years, November’s numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs or short sales sometime early next year,” said James Saccacio, co-founder of RealtyTrac. “Overall foreclosure activity is down 14 percent from a year ago, the smallest annual decrease over the past 12 months, and some bellwether states such as California, Arizona and Massachusetts actually posted year-over-year increases in foreclosure activity in November.

“Scheduled foreclosure auctions reached a nine-month high in November, corresponding to a recent surge in default notices that began back in August,” Saccacio continued. “Many of the new defaults that started the foreclosure process over the past few months are now being scheduled for public foreclosure auction.”

RealtyTrac also provided the following information

Nevada, California, Arizona post top state foreclosure rates

Nevada posted the nation’s highest foreclosure rate for the 59^th straight month in November despite artificially low foreclosure activity caused by a new state law passed in October (AB 284) that alters the foreclosure process in the state. A total of 6,512 Nevada properties received a foreclosure filing in November, up 3 percent from a 45-month low in October, but still down 43 percent from November 2010. One in every 175 Nevada housing units had a foreclosure filing in November, more than three times the national average.

Scheduled trustee’s sales in California hit a 10-month high in November, helping the state maintain the nation’s second highest foreclosure rate: one in every 211 properties with a foreclosure filing during the month. A total of 26,509 trustee’s sales were scheduled in California in November, up 14 percent from November 2010 — the first year-over-year increase in scheduled foreclosure auctions in California since March 2010.

Arizona foreclosure activity increased on a year-over-year basis in November for the first time since October 2010, and the state posted the nation’s third highest foreclosure rate for the fifth month in a row. One in every 256 Arizona properties had a foreclosure filing in November, more than twice the national average.

Substantial monthly increases in foreclosure activity in Utah and Georgia lifted those states’ foreclosure rates into the nation’s top five in November. Utah’s foreclosure rate of one in every 290 housing units with a foreclosure filing ranked No. 4 thanks to a 74 percent monthly increase in foreclosure activity, andGeorgia’s foreclosure rate of one in every 330 housing units with a foreclosure filing ranked No. 5 thanks to a 23 percent monthly increase in foreclosure activity.

Other states with foreclosure rates ranking among the top 10 were Michigan, Florida, Illinois, Ohio and South Carolina. South Carolina cracked the top 10 for the first time since RealtyTrac began issuing its report in 2005.

California, Florida, Michigan document highest foreclosure activity totals

There were a total of 63,689 California properties with foreclosure filings in November, the most of any state and 28 percent of the national total.

Florida foreclosure activity in November decreased 25 percent from a 13-month high in October, but the state still had 24,739 properties with foreclosure filings during the month — the nation’s second highest total.

There were total of 13,777 Michigan properties with foreclosure filings in November, the nation’s third highest state total despite a 14 percent decrease from October.

Illinois documented the fourth highest state foreclosure activity total in November, 12,398 properties with foreclosure filings, and Georgia documented the fifth highest state foreclosure activity total, 12,327 properties with foreclosure filings during the month.

California cities account for nine of top 10 metro foreclosure rates

Nine out of the nation’s 10 highest foreclosure rates among metropolitan areas with a population of 200,000 or more were in California. The only exception was Las Vegas, which ranked No. 6 with one in every 150 housing units with a foreclosure filing in November.

With one in every 120 housing units with a foreclosure filing during the month, Stockton, Calif., posted the nation’s highest metro foreclosure rate for the second month in a row. There were a total of 1,913 Stockton properties with a foreclosure filing in November, up 20 percent from the previous month and up 9 percent from November 2010. The increase in Stockton was driven largely by a 65 percent month-over-month increase in scheduled foreclosure auctions.

The eight other California cities with foreclosure rates ranking among the top 10 all posted double-digit percentage increases in scheduled foreclosure auctions in November, ranging from a 37 percent month-over-month increase in Modesto to a 100 percent month-over-month increase in Fresno.

Cities outside of California and Nevada with foreclosure rates ranking among the nation’s 20 highest metro foreclosure rates included Phoenix at No. 13 (one in every 209 housing units); Salt Lake City at No. 15 (one in every 223 housing units); Detroit at No. 17 (one in every 242 housing units); and Atlanta at No. 18 (one in every 244 housing units).

RealtyTrac: Foreclosure Activity Slumps 14% — But Rise Likely In 2012 is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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From tiny towns to the national electorate, voters have been clear about who they want in office — elected officials who see housing as an economic cornerstone critical to recovery.

More than 80 percent of Americans believe housing is critical to economic recovery and candidates’ positions on housing will be important to the decisions of nearly 70 percent of Americans when they go to the polls in the 2012 election, according to a national survey released today by Move, Inc., an online network of real estate web sites.

Growing Importance

The survey reveals deep national concern over the housing situation and the importance housing will play in next year’s national elections.

Nearly one in three of those surveyed think helping homeowners avoid foreclosure should be the next presidential priority in his or her first 100 days in office. Keeping interest rates low (26.4 percent) ranked second and making more affordable mortgage credit available (14 percent) placed third.

• Americans are not optimistic about change in the housing market.

  More than 73 percent of Americans believe conditions for buying a home a year from now will be the same or worse than today. Only 23.2 percent expect home buying conditions to improve.

• After four years of living in a housing downturn, American voters clearly want answers and are looking to our elected leaders for solutions,” said Errol Samuelson, chief revenue officer of Move, Inc.
• Americans are just as split as elected officials over government’s role in housing.
• Move reported 42 percent said the government’s role in housing should be reduced; 21.3 percent said it should be increased and 31 percent said the role of government in housing should remain the same.
• Americans find themselves in a Catch-22 quandary over housing.

While they believe housing is critical to economic recovery, only 2 percent of those surveyed plan to buy a home in the next 12 months.

Among those who won’t take the plunge for at least two years, 55.1 percent don’t have enough for the down payment and closing costs; 52.5 percent said they’re concerned about jobs or lack confidence in the economy; 53.1 percent are waiting for prices to stabilize or increase; and 34.6 percent said tight and expensive credit is an obstacle.

Affordability

Home prices are more affordable than they were a year ago and just about as affordable as they were before the big boom run up in prices, but American’s aren’t buying it.

In March 2010, 45.4 percent said they thought a median income family could afford more than half of the homes for sale in their neighborhood. Today, only 32 percent share that sentiment.

“Perceptions as much as the realities of homeownership are standing in the way of boosting demand for housing. Until these concerns are resolved, we expect both buyers and sellers to remain on the sidelines,” said Samuelson.

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Broderick Perkins is executive editor of DeadlineNews.Com, leading real estate, personal finance and consumer news portal.

Public to Politicians: End Foreclosure Mess is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

Technorati Tags: election, foreclosure, homeowners, housing, mortgage, November, politicians, polls, real estate, voters

“If somebody wants to buy a house,” he told CNN’s Piers Morgan, “it’s virtually impossible to get the money from a bank. And it’s — even if they have good credit. Even when mortgages are coming due, and people that have been paying a mortgage for 10 and 15 and 20 years, they can’t get money or they can’t get an extension from a bank. So the banks are really not behaving properly, that can I tell you.”

Really? I’d argue that mortgages today are widely available, as millions of people in just the past year can attest.

For instance, the National Association of Realtors says existing home sales were running at an annual rate of 4.97 million units in October — that’s up 13.5 percent from a year ago. If people can’t get mortgages then how are they buying homes? Yes, some buyers pay cash — 29 percent — but that means 71 percent got financing when they bought and 71 percent of 4.97 million existing home sales tells us that 3.5 million existing home transactions involved a mortgage.

Of course, people use mortgage money not only to buy real estate but also to refinance. The Veterans Administration, as one example, reports in fiscal 2011 that the government guaranteed 357,600 VA loans, including 186,600 purchase money mortgages and 171,000 refinances. Obviously, for these folks, mortgages were not “virtually impossible” to get, they are instead entirely accessible.

The same is true with FHA loans. In fiscal 2011 the government insured 777,521 purchase money mortgages and 420,561 loans to refinance, a total of 1,271,211 FHA loans.

Not everyone got an FHA loan. But roughly four out of five applicants did. There were 1,603,669 FHA mortgage applications in fiscal 2011, meaning 332,458 did not go through. But in any year some portion of all loans applications are declined or withdrawn, often for reasons which have nothing to do with the financing — think of a home with a structural problem or title issue.

And surely the mortgage business is not so bad for mortgage bankers. The Mortgage Bankers Association reports that “independent mortgage banks and subsidiaries made an average profit of $1,263 on each loan they originated in the third quarter of 2011, up from $575 per loan in the second quarter of 2011.”

In addition, said the MBA, “average production volume was $237 million per company (or 1,114 loans per company) in the third quarter of 2011, up from $174 million per company (or 866 loans per company) in the second quarter of 2011.”

You have to ask: If mortgages are “virtually impossible” to get then why have origination profits more than doubled? Why are originations up?

Loan Rates

It’s hardly a tough time to get a mortgage because home prices are about 19.1 percent lower nationwide than in April 2007 and mortgage rates are in the dumper. In recent weeks Freddie Mac has reported that both fixed rate mortgages and ARMs have been at record lows.

NAR says that as a result of falling home prices and low mortgage rates that affordability is at its highest and best level in years — something that could not happen without the ready availability of FHA, VA and conventional mortgage financing.

For background and more information, see Four Foreclosure Financing Myths on RealtyTrac.com.

Why Trump Is Wrong On Mortgages is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

Technorati Tags: affordability, applications, candidate, conventional, debate, Donald, election, FHA, loan, mortgage, Mortgage Bankers Association, National Association of Realtors, president, presidential, Trump, VA

At first it might seem as though higher premiums are in order given that the FHA reserve fund — the Mutual Mortgage Insurance Fund or MMI — is well below the 2 percent required reserve. While that may be true, one must also look at trends and directions.

HUD Secretary Shaun Donovan says his department is now looking at five potential changes in the FHA program — including higher mortgage loan premiums.

According to Donovan, the “FHA is constantly evaluating the appropriate level of premiums given the potential risks to the MMI Fund, and any action regarding premiums will be considered in the context of balancing access to credit in today’s economic environment with the need for added revenue generation to protect the Fund.”

The reserve fund gets its money from the up-front and annual mortgage insurance premiums (MIP) paid by FHA borrowers. The fund is reduced each time there’s a foreclosure claim — and given today’s market there have been a lot of lost homes.

Donovan points out that “FHA’s current premium levels are the highest they have ever been in the agency’s history” so can they really go higher?

That said, you have to wonder if there is any need for higher premiums to increase the MMI fund.

HUD says that without a premium increase the reserve fund will reach 2 percent (1.99 percent) by fiscal year 2014 — we are now in fiscal year 2012.

One of the central results of higher FHA premiums is that they will drive away prospective borrowers. Higher premiums will make the FHA program less attractive and less competitive.

The Mortgage Insurance Companies of America (MICA) — the trade association that represents the private mortgage insurance industry in Washington — says the “FHA should increase its premiums, raise its minimum borrower down payment to 5 percent, and change the way FHA area loan limits are calculated.”

One by-product of such proposals is that the FHA program will become more expensive and thus less attractive to borrowers.

The truth is that the FHA program has changed substantially during the past three years.

For instance, the Mortgage Bankers Association points out that “in 2008, Congress passed the Housing and Economic Recovery Act. That legislation terminated the failed seller-funded downpayment assistance programs that were responsible for a disproportionate level of FHA’s defaults.”

In addition, the down payment requirement has been increased to 3.5 percent and insurance premiums have grown.

Because the FHA program has changed under the Obama Administration the huge risks and losses run up from 2000 through 2008 have been replaced with a more stable and financially-positive system. There’s no need to raise premiums, no need to make the FHA program less attractive and no need to help special interests.

Why FHA Premiums Should Not Be Raised is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

Technorati Tags: annual, borrowers, FHA, HUD, lenders, loan, MIP, mortgage, mortgage insurance premium, private mortgage insurance, yearly

After years of dispute and conflict that was some of the most interesting — if painful — broadcasting on television, Paul Sr. and Paul Jr. seem fairly settled as rival bike builders who now churn out theme bikes and custom cycles. As well, Paul Sr. has somehow worked out his dispute with his lender, a dispute which at one point lead to mortgage loan foreclosure notices for his newly-built headquarters.

But with the end of a massive lawsuit between the son and father and with the headquarters property no longer distressed, the story of the battling Pauls has cooled and with it some fan ardor. One way to rev-up their long-running American Chopper series is to bring back Jessie James.

James, like the Teutuls, is a bike builder, TV personality and businessman. While Paul Sr. may yell and Paul Jr. may be collegial in the workplace, James is a different story. He is arguably the least vocal of the bunch, but plainly a shrewd planner and strategist, something which could be seen when he appeared on the second season of the Celebrity Apprentice and came in third under the watchful eye of Donald Trump.

Live and from Las Vegas

The build-off programs will run live on Discovery on December 5th and 6th and as I read the promo the end result will be three bikes. Viewers will then have a chance to vote for a winner, probably in the same way as viewers rated the two bikes built by the Tuetuls for Cadillac.

All three builders have strengths: Paul Sr. has a huge facility and is backed by a large number of mechanics, machines and craftsmen, most notably metalworker Rick Petco. Paul Jr. has a far-smaller shop and a much smaller crew but a vastly-better sense of design along with help from show regulars Vinnie, Brendan and Cody. As to Jessie James, he’s now centered in Austin and we’ll have to see what he can do.

So who will win? Viewers will likely enjoy the fireworks, bike building and verbal sparring among the three main rivals. Also, it will be interesting to see how much — if at all — Paul Sr. and Paul Jr. cooperate in the face of a common rival.

We don’t know at this writing who will win the bike build-off, but it’s certain that Discovery will have a huge ratings hit on its hands.

American Chopper Vs. Jesse James: Who Really Wins? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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