Real Estate News Blog March Archive

Mortgage Trouble Clouds Homeownership Dream

By Art C Ryter at 03/22/07 18:14

Suggests that the subprime boom and bust that is leading to foreclosures across the country is a sign to the poor and many others that the American dream of homeownership might not be for everyone. The article also argues that the rise in foreclosures is due to government policies that favor homeownership over renting. Because of some lenders losing funding, foreclosure refinancing may be out of the question for many who need help to avoid forclosure.

Original source: The New York Times. Mortgage Trouble Clouds Homeownership Dream

Real estate can only fall 10% to 20%, right? Right?

Suggests that real estate values can drop further than 20% in many markets across the United States due to increasing foreclosures, rising interest rates, and stricter lending policies. The study takes into account five year averages and shows that even places like Los Angeles can experience real losses in value of over 20%. Much of the drop may depend on how people react to the bursting subprime mortgage bubble. If you do have cash available, the next few months may be a good time to buy.

Original source: CNN. Real estate can only fall 10% to 20%, right? Right?

Don't delay over debt woes

Suggests that it is better to talk to your mortgage lender sooner rather than later in order to avoid foreclosure. Tips offered to help homeowners facing foreclosure are to seek out assistance from HUD, refinance with another lender, and to seek counseling assistance from state or local government agencies that deal with mortgages. Just be sure to ask for help to avoid foreclosure as soon as possible; delay may mean losing your home.

Original source: The Los Angeles Times. [404 Check: was link to http:/ / www. latimes. com/ business/ investing/ bal -bz. ym. ambrose20mar20,1,1470824. column?coll=la -utilities -business -money, anchor: Don't delay over debt woes]

Don’t Forget Homeowners

Argues that homeowners should receive some relief from Congress and the states to help prevent forclosures. Congress has before it many policy options that would help avoid foreclosures in the future, including stricter lending guidelines, but that does little to help the 2.2 million families that may potentially be caught in the bursting subprime mortgage bubble. Among ideas the Center has it is to involve State and Local agencies, some of which have counseling available for homeowners facing foreclosure.

Original source: The Center for American Progress. Don’t Forget Homeowners

A hard fall for Irvine mortgage lender

Explains the incentives that mortgage brokers at New Century Financial Corporation had to boost subprime mortgage lending and why this company among others in the field are doomed by foreclosures and filing bankruptcy. Until 2006 many homebuyers could avoid foreclosure by refinancing or selling their appreciated properties. As the housing market stalled, however, these ways to help people in foreclosure vanished. Brokers at New Century Financial and other subprime lenders made money by overextending credit to unqualified homebuyers and were rewarded with trips to exotic locations like Costa Rica, the Caribbean or Europe.

Original source: The Los Angeles Times. [404 Check: was link to http:/ / www. latimes. com/ business/ la -fi -newcent18mar18,0,6538815,full. story?coll=la -home -business, anchor: A hard fall for Irvine mortgage lender]

Global liquidity may be hurt by mortgage meltdown, profit fall

Argues that global liquidity, the availability of money or credit, may be damaged by rising foreclosures and risk avoidance in the subprime mortgage lending market. As foreclosures rise, people and institutional investors would be less likely to underwrite more mortgages which would lead to less money available for other things such as asset or other equity purchases. All in all, it could be a great time for people with cash to help forclosure victims ease their debt obligations.

Original source: The Florida Herald Tribune. Global liquidity may be hurt by mortgage meltdown, profit fall

On the Yucatán Peninsula, a first attempt at an eco hideaway

Discusses the development of Los Arboles Tulum, an ecological and environmental real estate project in Mexico. The real estate market in on the Yucatan Peninsula is very dynamic on the coast, with Cancun and other resorts commanding high prices, while inland in Tulum, second home buyers or investors can purchase a two-hectare property for $55,000. The Mexican properties will be marketed to the environmentally conscious buyer and people interested in the complex ecosystem for which this area of the Yucatan Peninsula is internationally renowned.

Original source: International Herald Tribune. On the Yucatán Peninsula, a first attempt at an eco hideaway

Some subprime woes linked to hodgepodge of regulators

Suggests that the subprime mortgage market failure is partly the result of inability of a single agency to monitor the real estate lending market. Each state has different departments that manage real estate and lending practices. In order to avoid forclosure, some homeowners have turned to selling their homes at a loss. If there is going to be a bail out, many hope that it includes people who need foreclosure help.

Original source: USA Today. Some subprime woes linked to hodgepodge of regulators

Loan Defaults

If you live in California, this neat service will tell you the numbers and percentages of homes in foreclosure.

Original source: Los Angeles Times. Loan Defaults

Life on Mortgage Street

Tells the story of two brothers, one who purchased a home through a first time buyer assistance agency and the other who went to a private mortgage broker. The story highlights the predatory practices of some subprime mortgage lenders and their clients that now face forclosure. Foreclosure help, such as from community groups dedicated to fair lending practices, can help save some homeowners, but not all. Many try to avoid foreclosure by selling their house.

Original source: The Chicago Sun-Times. Life on Mortgage Street