Top 12 states with healthiest foreclosure markets

Eric McWhinnie, Wall St. Cheat Sheet6:30 a.m. EST February 2, 2014

2013 was a transitional year for residential property in the USA as the housing market recovery gains steam.

Millions of homeowners are still dealing with the side effects of the housing bubble and credit meltdown of yesteryear, but the home foreclosure market is slowly showing signs of progress.

The number of completed foreclosures dropped to 45,000 units in December, representing a 14% decline from 52,000 units a year earlier, according to a new analysis by CoreLogic. However, completed foreclosures averaged only 21,000 per month nationwide between 2000 and 2006. Since the beginning of the financial crisis in September 2008, approximately 4.8 million foreclosures have been completed.

"Clearly, 2013 was a transitional year for residential property in the United States. Higher home prices and lower shadow inventory levels, together with a slowly improving economy, are hopeful signals that we are turning a long-awaited corner," explains Anand Nallathambi, president and chief executive officer of CoreLogic, in a press release. "The housing market should continue to heal in 2014, but we expect progress to remain very slow."

The national foreclosure inventory — which contains homes in some stage of the foreclosure process — plunged 31% year over year to about 837,000 units in December. In fact, foreclosure inventory has declined for 12 consecutive months by at least 20% on a year-over-year basis. Florida, New Jersey, and New York have the highest foreclosure inventory as a percentage of mortgaged homes, but 36 states have an inventory level below the national rate.

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Bill would require refunds of overpaid foreclosure costs in Colorado

By David Migoya
The Denver Post

Lawyers who pass on to homeowners the court costs of filing a foreclosure lawsuit against them would have to prove they incurred the expenses, under a legislative bill — but only if someone asks.

Additionally, foreclosure lawyers would be required under the bill proposed by Rep. Beth McCann, D-Denver, to keep receipts and other proof that the expenses they say a homeowner must pay to end the foreclosure process are real.

The legislation, HB-1130, unanimously passed a House subcommittee Wednesday and will be heard by the entire assembly. If it passes the House, it will move to the Senate for hearings.

"It's really a common-sense bill," said McCann, who has failed several times to bring legislative changes to the state's foreclosure process.

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Several Hedge Funds to Sue Big Banks for Role in Tom Petters Ponzi Scheme

By Albert Samaha Wed., Feb. 5 2014 at 7:00 AM

Six hedge funds are seeking to sue JP Morgan Chase, Bank of America, Wells Fargo, and other banks for their role in a $3.65 billion Ponzi scheme.

The hedge funds claim that they lost a combined $177 million to Tom Petters, the Minnesota-based CEO who was convicted for the fraud and sentenced to 50-years in prison in 2010. The banks, the hedge funds allege, aided and abetted Petters's crimes by allowing him to establish "suspicious accounts." UBS, the CIT Group, and PNC Bank are also among the defendants.

According to the complaint, filed in New York County Supreme Court and first reported on Tuesday by Courthouse News Service, Petters repaid the banks' loans with money from his scheme's victims even after the banks "knew that Petters and his entities, including Polaroid, were insolvent and/or not able to pay their debts."

Petters ran his Ponzi scheme from 1998 to 2008. His investors, including the hedge funds, believed they were funding a wholesale retail business, mainly electronics that Petters Company Inc. supposedly resold to big-box stores like Costco and Sam's Club. But Petters had been faking the product orders.

Federal agents arrested him in September 2008. The following December a jury found him guilty of 20 counts of money laundering, mail fraud, wire fraud, and conspiracy.

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RealtyTrac: Number of Foreclosures May Increase as Housing Market Recovers

Monday, 06 Jan 2014 06:51 AM

By Michael Kling

As the housing market recovers, the number of foreclosures may increase. 

That's because lenders will speed up the foreclosure process and move homes to the auction block as home prices rise and more buyers line up for sales. 

"Lenders know there's now a much better chance they can get those properties sold,
 so they're moving to do that," Daren Blomquist at RealtyTrac, a real estate data firm, tellsCNBC.

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After the collapse of the housing market, mortgage credit was scarce, prices were
 falling, and lenders were swamped by mortgage defaults. In many instances,
foreclosure proceedings were stuck in a quagmire of legal problems, missing
 documents and unclear title chains.

Lenders often opted to let deadbeat borrowers remain in their homes rather than
 seize a home they might not be able to sell. 

Read Latest Breaking News from Newsmax.com http://www.moneynews.com/Economy
/RealtyTrac-Blomquist-foreclosure-lender/2014/01/06/id/545362#ixzz2pgMJEbwJ
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The New York Times

By LISA PREVOST

Published: January 2, 2014

The long foreclosure timelines in New York, New Jersey and Connecticut may translate into slightly higher borrowing costs for consumers in those states.

The Federal Housing Finance Agency announced last month that, because the stress in housing markets has eased,

it was eliminating the across-the-board adverse-market fee instituted in 2008 to help cover the costs of high rates of delinquencies. The fee, applicable to all mortgages bought by Fannie Mae or Freddie Mac, is 25 basis points, or 0.25 percent of the mortgage loan amount.

But the agency, citing the “significantly greater costs” associated with much longer foreclosure timelines in the tristate area and in Florida, said the fee would remain in place in these four states.

The fee isn’t onerous — an added $5.95 a month, for example, on a 30-year loan of $200,000 at a rate of 4.5 percent. And it isn’t a closing cost, noted Jordan Roth, the senior branch manager of the Manhattan office of GFI Mortgage Bankers. “It is a fee that gets added into the rate or, as we like to say, baked into the rate,” he said.

Still, the singling out of states that take a long time to process foreclosures through their judicial systems does represent a shift in regulatory thinking. “It’s effectively a recognition that the cost to lend in a market that has long judicial foreclosure timelines needs to be accounted for,” said Mark Fleming, the chief economist for CoreLogic, a real estate data service. “If it takes two years to get through a foreclosure, time is money.”

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Big Banks Dip Despite Rising Home Sales (Volcker Update)

BY Philip van Doorn|12/30/13 - 07:47 PM EST

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NEW YORK (TheStreet) -- Many large-cap bank stocks pulled back on Monday,
despite some good economic news.

PNC Financial Services Group  (PNC_) led the sector down, with shares sliding
0.9% to close at $77.51. Bank of America  (BAC_) was down 0.8% to close at $15.54 and Morgan Stanley (MS_) was down 0.7% to close at $30.85.

The broad indices ended mixed, with one more day to cap off the best year for the
S&P 500 since 1997.  The index was down very slightly on Monday and has risen 
29% this year, following a 13% gain during 2012.

The KBW Bank Index (I:BKX) on Monday pulled back 0.2% to 68.97, with the 24
 index components split between winners and losers.  But the banks are looking at 
another banner year, with the index rising 34%, after a gain of 30% during 2012.

In economic news on Monday, the National Association of Realtors said pending 
sales of previously owned homes in the U.S. rose 0.2% during November to a
 Home Sales Index reading of 102.1, from a downwardly revised reading of 101.5 for
 October. Pending sales during November were down 1.6% from a year earlier.
 Economists polled by Reuters on average estimated the November figure would 
rise by 1.5%.

While the pending home sales figure for November was disappointing to many 
economists, this was the first increase in six months.  

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Why Real Estate is a Better Investment Than Stocks

SATURDAY, 28 DECEMBER 2013 18:31 SUZY RODONI SILVERBERG

By Suzy Rodoni, Real Estate Eight Three One

A recent article from FortuneBuilders, a premier real estate investment education company, said,  “Given that the U.S. market as a whole is just getting warmed up for a new boom, virtually every property sector is set to take off. Analysts are predicting great real estate investing opportunities from coast to coast.”  If you are debating about how to invest your money in 2014, real estate is definitely something to consider. Investing in real estate is largely considered, in general, to be safer than investing than stocks. Below are some of the benefits of investing in real estate:

You have the ability to leverage your purchase: When buying real estate, you have the ability to purchase a $500,000 investment with a 20% down payment.  That allows you to control a $500,000 property with $100,000 while buying $100,000 of stock requires you to invest $100,000. 

You can write off depreciation for investment real estate: One major benefit to investment property owners comes in the form of depreciation write-off.  The IRS allows owners to take a “paper” or tax loss every year based on the loss of value due to physical deterioration.  This allows the property owner to reduce their taxable income by thousands of dollars each year.  In most cases, your asset is increasing in value as you write off those losses.

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