http://www.komonews.com/news/local/64645512.html?video=YHI&t=a
SEATTLE -- If there is a canary in the coal mine for real estate, it may be found at the weekly foreclosure auction in each county.
Just six months ago, the auctions were dead.
"The banks were not discounting anywhere near where they are, which didn't entice investors to come down here," said professional investor Will Heaton.
"And also the retail market was horrible. Nobody could qualify for a loan. There really was no incentive. Everyone was afraid to buy."
But the number of homes going into foreclosure increased dramatically in the past weeks, and banks who want them off their books are willing to deal.
Heaton managed to get a steal at an auction on Friday.
He won a house that sold two years ago for $650,000. Its current market value is roughly $500,000. The owners owe the bank $479,000.
At the auction, the bank got $150,000 from Heaton.
The bank lost out on big money in the deal, but they're still willing to deal. As for the reason why, here's where the taxpayers come into the equation.
Remember those billions of dollars congress gave the banks - the TARP bailout program? It has filtered down and we, the taxpayers, are covering the bank losses.
"The government money has run its course," said Jim Milgard. "And so they have their TARP funds; they've actually got this properties paid for by the government. So its given them the ability to sell the property at a discount."
So the taxpayers have a hand in generating some great deals at the weekly foreclosure auction, and you can find some great deals if you can pay cash on the spot.
And as the unemployment rate continues to climb, the number of homes going to auction is expected to go up as well.
Next week, more than 800 homes are on the slate to be auctioned off in King County alone.
Sunday, October 18, 2009
Tuesday, July 7, 2009
June home sales are highest in King County since Oct. 2007
People who have sold their homes to first-time buyers move up to more expensive homes, Northwest MLS statistics for June show. Low interest rates help spur sales.
A new report provides the strongest evidence yet that buyers are starting to return to the local real-estate market.
The number of closed sales of single-family homes in King County in June was up 4 percent over June 2008 — the first year-over-year increase since the market peaked nearly two years ago, the Northwest Multiple Listing Service said Monday.
The county hasn't recorded that many sales in a month since October 2007.
The statistics also suggest — and agents in the field confirm — that the new buyers aren't just first-timers searching for homes at the lowest end of the price spectrum.
Total sales in Southwest and Southeast King County — the most affordable areas — were actually down from a year ago. Sales in Seattle, in contrast, rose nearly 11 percent, with neighborhoods north of the Ship Canal leading the way.
On the Eastside, sales were up almost 4 percent overall. In the Juanita-Woodinville-Duvall area, they surged nearly 31 percent.
Will Bruce, owner/broker in Windermere Real Estate's Woodinville office, said first-time buyers dominated the market earlier this year. And now?
"Those people that sold to the first-time buyers have to move somewhere," he said. He calls the new clientele "trickle-up" buyers.
June's increase in closed sales came after two months in which pending sales — offers accepted by owners but not yet closed — were up compared with the same months a year earlier.
Real-estate professionals said closed sales eventually would follow suit, and that they were lagging because the large number of "short sales" — sales for less than what owners owe on their homes — were taking longer to process.
Pending house sales were up again in June, nearly 25 percent ahead of June 2008.
Last month's median single-family-home sale price in King County, $395,000, was down more than 12 percent year-over-year.
In prepared statements, industry leaders noted that prices have increased slightly since January, but that may be a seasonal phenomenon — median prices also rose between January and June of last year.
June condo sales in King County were less robust, with closed sales down 23 percent year-over-year. The median sale price slid to $249,000, down more than 15 percent from a year ago.
Snohomish County recorded two fewer closed single-family home sales in June than in June 2008. But sales in the Edmonds area rose 38 percent. Sales also were up in the Marysville-Arlington-Stanwood area.
Tim Ellis, who edits the bearish Seattle Bubble real-estate blog, said he's been waiting for months for the number of closed house sales in King County to increase as mortgage interest rates dropped and first-time buyers took advantage of the new $8,000 federal tax credit.
"But sales in June were actually better in higher-priced areas," he added, noting that closings increased year-over-year in eight of the 12 areas whose median sales price was higher than the countywide median.
In two of those areas, Northeast Seattle and Northwest Seattle, the number of sales jumped 26 and 16 percent, respectively, compared with June 2008. Alida Fretz, office manager of the John L. Scott office in Green Lake, said people with relatively secure jobs are starting to take advantage of lower prices.
"As the first-time buyers come back into the market, people are selling to them and looking to move on to something else," she said. But most houses in the city's North End that are selling still go for between $300,000 and $450,000, she added.
In Woodinville, Bruce said he's starting to get more clients relocating to the Seattle area for new jobs, a healthy sign.
He said the number of sales his office negotiated doubled between last spring and this spring — but still doesn't come close to the boom years.
"It tells you how bad things were a year ago," Bruce said. "That was survival of the fittest."
Despite June's surge, real-estate observers aren't ready to proclaim the market has turned. Many of the sales that closed probably were negotiated in April and May, when interest rates were at record 40-year lows, Ellis said.
Rising rates, while still relatively low, could discourage some buyers, he added.
But Bruce said rising rates actually tend to spur sales: Buyers want to act before rates climb even higher.
It's also unclear how many of the large number of pending sales eventually will close. Historically, the number of closed sales in a month has been about 90 percent of the preceding month's pending sales.
June's closings in King County were about 74 percent of April's pendings.
If short sales are responsible for the gap, as most real-estate professionals say, many may not close at all. Even if lenders approve them, buyers may get tired of the long waits or not qualify for financing.
Regional statistics on short sales are not readily available; the listing service just began tracking them in April.
But nationally, just 20 percent close, said Alex Charfen, CEO of the Distressed Property Institute, a Texas-based organization that trains and certifies real-estate agents to handle short sales.
A new report provides the strongest evidence yet that buyers are starting to return to the local real-estate market.
The number of closed sales of single-family homes in King County in June was up 4 percent over June 2008 — the first year-over-year increase since the market peaked nearly two years ago, the Northwest Multiple Listing Service said Monday.
The county hasn't recorded that many sales in a month since October 2007.
The statistics also suggest — and agents in the field confirm — that the new buyers aren't just first-timers searching for homes at the lowest end of the price spectrum.
Total sales in Southwest and Southeast King County — the most affordable areas — were actually down from a year ago. Sales in Seattle, in contrast, rose nearly 11 percent, with neighborhoods north of the Ship Canal leading the way.
On the Eastside, sales were up almost 4 percent overall. In the Juanita-Woodinville-Duvall area, they surged nearly 31 percent.
Will Bruce, owner/broker in Windermere Real Estate's Woodinville office, said first-time buyers dominated the market earlier this year. And now?
"Those people that sold to the first-time buyers have to move somewhere," he said. He calls the new clientele "trickle-up" buyers.
June's increase in closed sales came after two months in which pending sales — offers accepted by owners but not yet closed — were up compared with the same months a year earlier.
Real-estate professionals said closed sales eventually would follow suit, and that they were lagging because the large number of "short sales" — sales for less than what owners owe on their homes — were taking longer to process.
Pending house sales were up again in June, nearly 25 percent ahead of June 2008.
Last month's median single-family-home sale price in King County, $395,000, was down more than 12 percent year-over-year.
In prepared statements, industry leaders noted that prices have increased slightly since January, but that may be a seasonal phenomenon — median prices also rose between January and June of last year.
June condo sales in King County were less robust, with closed sales down 23 percent year-over-year. The median sale price slid to $249,000, down more than 15 percent from a year ago.
Snohomish County recorded two fewer closed single-family home sales in June than in June 2008. But sales in the Edmonds area rose 38 percent. Sales also were up in the Marysville-Arlington-Stanwood area.
Tim Ellis, who edits the bearish Seattle Bubble real-estate blog, said he's been waiting for months for the number of closed house sales in King County to increase as mortgage interest rates dropped and first-time buyers took advantage of the new $8,000 federal tax credit.
"But sales in June were actually better in higher-priced areas," he added, noting that closings increased year-over-year in eight of the 12 areas whose median sales price was higher than the countywide median.
In two of those areas, Northeast Seattle and Northwest Seattle, the number of sales jumped 26 and 16 percent, respectively, compared with June 2008. Alida Fretz, office manager of the John L. Scott office in Green Lake, said people with relatively secure jobs are starting to take advantage of lower prices.
"As the first-time buyers come back into the market, people are selling to them and looking to move on to something else," she said. But most houses in the city's North End that are selling still go for between $300,000 and $450,000, she added.
In Woodinville, Bruce said he's starting to get more clients relocating to the Seattle area for new jobs, a healthy sign.
He said the number of sales his office negotiated doubled between last spring and this spring — but still doesn't come close to the boom years.
"It tells you how bad things were a year ago," Bruce said. "That was survival of the fittest."
Despite June's surge, real-estate observers aren't ready to proclaim the market has turned. Many of the sales that closed probably were negotiated in April and May, when interest rates were at record 40-year lows, Ellis said.
Rising rates, while still relatively low, could discourage some buyers, he added.
But Bruce said rising rates actually tend to spur sales: Buyers want to act before rates climb even higher.
It's also unclear how many of the large number of pending sales eventually will close. Historically, the number of closed sales in a month has been about 90 percent of the preceding month's pending sales.
June's closings in King County were about 74 percent of April's pendings.
If short sales are responsible for the gap, as most real-estate professionals say, many may not close at all. Even if lenders approve them, buyers may get tired of the long waits or not qualify for financing.
Regional statistics on short sales are not readily available; the listing service just began tracking them in April.
But nationally, just 20 percent close, said Alex Charfen, CEO of the Distressed Property Institute, a Texas-based organization that trains and certifies real-estate agents to handle short sales.
Tuesday, June 16, 2009
Lenders 'doing everything possible to delay foreclosure'
ForeclosureRadar, the online seller of mortgage default data, has more evidence of a foreclosure backlog in its monthly data, released today:
In May, a record 111,824 California homes were scheduled for foreclosure sales, but just 16% were auctioned. By comparison, last May, sales were held for 49% of homes slated for foreclosure.
Of last month's postponed foreclosures, 40% were delayed at the request of the lender; an additional 33% were postponed by agreement between the lender and borrower.
ForeclosureRadar CEO Sean O'Toole's take on this: “The data actually shows that lenders are doing everything possible to delay foreclosure. The reality is that we have very few homeowners being foreclosed on when viewed as a percentage of those scheduled to be foreclosed on, in default, delinquent, or upside down in their mortgage."
Notices of default -- the first stage in foreclosure, which occurs when a borrower has missed several payments -- were down 4% in May from April and down 3% from the same month a year ago, to 40,870 filings statewide.
Foreclosures taken to auction were down 30% in May from a year ago, to 17,871. Of those homes, 84% had opening bids set below the outstanding loan amount. The average opening bid for these properties was 59% of the loan amount. For instance, if a house with a $100,000 mortgage went to auction, the average opening bid would have been $59,000.
Of homes going to auction in May, 88% were taken back by the lender. When a home is not sold to a third-party bidder at auction, the lender takes it back, typically to sell on the open market or through private auctions.
The top 10 counties in foreclosures, per capita: Merced, Stanislaus, Yuba, Riverside, San Joaquin, Solano, Kern, Madera, San Bernardino, Sacramento. San Diego ranked 27th, Ventura 38th, Los Angeles 44th and Orange 46th.
San Francisco had the fewest foreclosures, per capita.
In May, a record 111,824 California homes were scheduled for foreclosure sales, but just 16% were auctioned. By comparison, last May, sales were held for 49% of homes slated for foreclosure.
Of last month's postponed foreclosures, 40% were delayed at the request of the lender; an additional 33% were postponed by agreement between the lender and borrower.
ForeclosureRadar CEO Sean O'Toole's take on this: “The data actually shows that lenders are doing everything possible to delay foreclosure. The reality is that we have very few homeowners being foreclosed on when viewed as a percentage of those scheduled to be foreclosed on, in default, delinquent, or upside down in their mortgage."
Notices of default -- the first stage in foreclosure, which occurs when a borrower has missed several payments -- were down 4% in May from April and down 3% from the same month a year ago, to 40,870 filings statewide.
Foreclosures taken to auction were down 30% in May from a year ago, to 17,871. Of those homes, 84% had opening bids set below the outstanding loan amount. The average opening bid for these properties was 59% of the loan amount. For instance, if a house with a $100,000 mortgage went to auction, the average opening bid would have been $59,000.
Of homes going to auction in May, 88% were taken back by the lender. When a home is not sold to a third-party bidder at auction, the lender takes it back, typically to sell on the open market or through private auctions.
The top 10 counties in foreclosures, per capita: Merced, Stanislaus, Yuba, Riverside, San Joaquin, Solano, Kern, Madera, San Bernardino, Sacramento. San Diego ranked 27th, Ventura 38th, Los Angeles 44th and Orange 46th.
San Francisco had the fewest foreclosures, per capita.
Mortgage industry changes throw new hurdles in borrowers' way
Reporting from Washington -- Mortgage rates and house prices are down -- which sounds great for buyers and refinancers. But mortgage industry underwriting and appraisal changes taking effect this month are putting new hurdles in the way of borrowers and loan officers.
Take Fannie Mae's and Freddie Mac's add-on fees for loans purchased after April 1. In some cases, applicants are being hit with extra fees of 3% to 5% because of the type of property they want to buy or refinance, their credit scores or the size of their down payment.
Some major lenders who sell loans to Fannie and Freddie are going further -- tightening underwriting rules beyond what either corporation requires. For example, as of April 6, Wells Fargo, one of the country's largest mortgage originators, imposed a new minimum FICO credit score of 720 -- up from the previous 620 -- on all conventional loans purchased through its wholesale system that have less than a 20% down payment. It also began requiring a total debt-to-income ratio maximum of 41% -- down from the previous 45%.
Fannie Mae now has a mandatory fee of three-quarters of a percentage point on all condominium loans, no matter how high the applicant's credit score. For a once-popular interest-only condo loan with a 20% down payment and a borrower credit score of 690, Fannie imposes the following ratcheted sequence of add-ons: one-quarter of a percentage point as an "adverse market" fee; 1.5% for the below-optimal credit score; three-quarters of a percentage point for the interest-only payment feature; and the same because the property is a condo. The total comes to 3.25% extra, which can be paid upfront or rolled into the loan.
On top of these extra fees, borrowers are now starting to get hit with two sets of cost-raising appraisal rule changes. Fannie and Freddie have begun requiring all appraisers to complete an extra "market condition" report that includes detailed statistical analyses of local sales and pricing trends -- above and beyond the regular appraisal data. Many appraisers are charging an extra $45 to $50 for the time required to complete the form. Home buyers and refinancers can expect to pay the higher fees.
On top of that, beginning May 1, Fannie and Freddie are refusing to fund loans with appraisals that do not follow a set of new rules known as the Home Valuation Code of Conduct. Among the procedural changes: Mortgage brokers no longer can order appraisals directly, but instead must allow lenders or investors to use third-party "appraisal management companies" to assign the job to appraisers in their networks.
How does that affect the consumer? Consider the notification one Connecticut brokerage firm recently received from a major lending partner: Starting April 15, all good faith estimates provided to applicants must indicate a flat $455 charge for appraisals arranged through the appraisal management company. The broker previously charged $325. Consumers will now have to pay the appraisal fee upfront -- before any inspection or valuation is completed -- using a credit card, debit card or electronic fund transfer.
What happens if the appraisal comes in low and the applicants can't qualify for the refi or purchase program they sought? Tough luck: They'll have just two choices: Pay another $455 for a second appraisal -- with no assurance that it will solve the problem -- or cancel the application.
Jeff Lipes, president of Family Choice Mortgage Corp., which serves the Hartford, Conn., area, said the net effect of the underwriting, credit score and pricing changes was to "squeeze some people who are creditworthy by any reasonable standard out of the market."
For instance, as a result of the restrictions on condos, Lipes says "whenever we hear the word 'condo' [from an applicant], we shiver" because the deck is stacked against them. Even for prime borrowers with 800 FICO scores and 50% down payments, Lipes said, "I can't tell them that we're certain we can get you a mortgage."
A welter of recent rule changes from Fannie Mae has made some condo units in projects with commercial tenants or high percentages of investor units almost impossible to refinance.
In Naples, Fla., John Calabria, president of Bancmortgage Corp., said, "It has become such a nightmare to lend money" because of the layers of add-on fees, higher mandatory down payments and FICO scores. One high-income client sought to put down 25% ($200,000) to buy an $800,000 condo as a second home but couldn't because the minimum down payment on such a unit is now 30%.
"That's ridiculous," Calabria said. "Some of this just doesn't make sense."
Take Fannie Mae's and Freddie Mac's add-on fees for loans purchased after April 1. In some cases, applicants are being hit with extra fees of 3% to 5% because of the type of property they want to buy or refinance, their credit scores or the size of their down payment.
Some major lenders who sell loans to Fannie and Freddie are going further -- tightening underwriting rules beyond what either corporation requires. For example, as of April 6, Wells Fargo, one of the country's largest mortgage originators, imposed a new minimum FICO credit score of 720 -- up from the previous 620 -- on all conventional loans purchased through its wholesale system that have less than a 20% down payment. It also began requiring a total debt-to-income ratio maximum of 41% -- down from the previous 45%.
Fannie Mae now has a mandatory fee of three-quarters of a percentage point on all condominium loans, no matter how high the applicant's credit score. For a once-popular interest-only condo loan with a 20% down payment and a borrower credit score of 690, Fannie imposes the following ratcheted sequence of add-ons: one-quarter of a percentage point as an "adverse market" fee; 1.5% for the below-optimal credit score; three-quarters of a percentage point for the interest-only payment feature; and the same because the property is a condo. The total comes to 3.25% extra, which can be paid upfront or rolled into the loan.
On top of these extra fees, borrowers are now starting to get hit with two sets of cost-raising appraisal rule changes. Fannie and Freddie have begun requiring all appraisers to complete an extra "market condition" report that includes detailed statistical analyses of local sales and pricing trends -- above and beyond the regular appraisal data. Many appraisers are charging an extra $45 to $50 for the time required to complete the form. Home buyers and refinancers can expect to pay the higher fees.
On top of that, beginning May 1, Fannie and Freddie are refusing to fund loans with appraisals that do not follow a set of new rules known as the Home Valuation Code of Conduct. Among the procedural changes: Mortgage brokers no longer can order appraisals directly, but instead must allow lenders or investors to use third-party "appraisal management companies" to assign the job to appraisers in their networks.
How does that affect the consumer? Consider the notification one Connecticut brokerage firm recently received from a major lending partner: Starting April 15, all good faith estimates provided to applicants must indicate a flat $455 charge for appraisals arranged through the appraisal management company. The broker previously charged $325. Consumers will now have to pay the appraisal fee upfront -- before any inspection or valuation is completed -- using a credit card, debit card or electronic fund transfer.
What happens if the appraisal comes in low and the applicants can't qualify for the refi or purchase program they sought? Tough luck: They'll have just two choices: Pay another $455 for a second appraisal -- with no assurance that it will solve the problem -- or cancel the application.
Jeff Lipes, president of Family Choice Mortgage Corp., which serves the Hartford, Conn., area, said the net effect of the underwriting, credit score and pricing changes was to "squeeze some people who are creditworthy by any reasonable standard out of the market."
For instance, as a result of the restrictions on condos, Lipes says "whenever we hear the word 'condo' [from an applicant], we shiver" because the deck is stacked against them. Even for prime borrowers with 800 FICO scores and 50% down payments, Lipes said, "I can't tell them that we're certain we can get you a mortgage."
A welter of recent rule changes from Fannie Mae has made some condo units in projects with commercial tenants or high percentages of investor units almost impossible to refinance.
In Naples, Fla., John Calabria, president of Bancmortgage Corp., said, "It has become such a nightmare to lend money" because of the layers of add-on fees, higher mandatory down payments and FICO scores. One high-income client sought to put down 25% ($200,000) to buy an $800,000 condo as a second home but couldn't because the minimum down payment on such a unit is now 30%.
"That's ridiculous," Calabria said. "Some of this just doesn't make sense."
Is Obama's foreclosure rescue plan working?
Richmond could afford his $1,600 monthly mortgage payment when he was making $63,000 as an accountant for Bank of America. But after his position was outsourced to India in 2006, the only work he could find was as a customer service representative at Wachovia for less than $12 an hour.
Desperate, he called SunTrust Bank in January to see if he could get a loan modification. He was turned down because he hadn't yet missed a payment. So the father of five didn't make his January payment and called back in February to start the modification process. A month later, an agent told him that all modifications were being scrapped in favor of the new Obama foreclosure prevention plan.
In April, he sent in his tax and income documents, as well as a hardship letter. Richmond calls every two weeks, only to be told that the application is still being processed. In early June, an agent said a supervisor would call him back within 48 hours. He's still waiting.
Richmond thinks the Obama plan would be a blessing for him and his family.
"I can get back on my feet again and make my payments and afford my house," said Richmond, 43. "But the banks are not making it easy to get the process done. I've been waiting all these months."
A SunTrust spokesman said bank representatives "work diligently" to discuss modifications with clients in a timely manner.
Desperate, he called SunTrust Bank in January to see if he could get a loan modification. He was turned down because he hadn't yet missed a payment. So the father of five didn't make his January payment and called back in February to start the modification process. A month later, an agent told him that all modifications were being scrapped in favor of the new Obama foreclosure prevention plan.
In April, he sent in his tax and income documents, as well as a hardship letter. Richmond calls every two weeks, only to be told that the application is still being processed. In early June, an agent said a supervisor would call him back within 48 hours. He's still waiting.
Richmond thinks the Obama plan would be a blessing for him and his family.
"I can get back on my feet again and make my payments and afford my house," said Richmond, 43. "But the banks are not making it easy to get the process done. I've been waiting all these months."
A SunTrust spokesman said bank representatives "work diligently" to discuss modifications with clients in a timely manner.
Saturday, May 9, 2009
Man facing foreclosure campaigns for patience
Link
www.komonews.com/news/local/44627492.html?video=YHI&t=a
TACOMA, Wash. -- Banks have lifted their temporary moratorium on foreclosures, which means more properties are being auctioned off every Friday on the courthouse steps of every county in the state.
Amid the busy transactions is a man who's leading a protest for patience.
Craig Wuest is trying to find out if his home will indeed be auctioned off the courthouse steps. It's on the list.
"Don't have any information yet, none yet. What's that telling me?" he said.
Wuest, who was injured 18 months ago, can no longer work. His wife works, but her monthly income doesn't cover the mortgage.
"If they lower it, I can afford it. But at this point in time, I can't afford it," he said.
Wuest is four months behind, owes more than his house is worth and has an interest only loan at 10.5 percent.
With mortgage rates at 5 percent, Wuest wants a new deal with his lender but says the lender won't deal.
"I even sent them new financials, so they can see what the financials looked like. It doesn't seem to work with them. I don't know what does, because they don't want to talk to you," he said.
Right now, banks want cash and want borrowers like Wuest off their books. So Wuest got ACORN, a national housing group, to hold a protest for patience.
"This foreclosure rate is just horrendous. I've got five houses in my neighborhood today that are in foreclosure," said Wuest.
The latest monthly figures show the highest rate of foreclosures tends to be in counties with lower household incomes. The worst figures are in Cowlitz County where one out of every 300 homes was in foreclosure during the month of March. Cowlitz County is followed by Pierce, Thurston, Snohomish and Clallam counties.
But someone's pain is someone else's gain.
"The banks are giving more discounts down here so we are purchasing several more properties every week," said Cindy Hornbuckle of Vestus Foreclosure Group.
Auction regulars say the banks are in the mood to sell quick on the courthouse steps. Wuest wishes they'd just make a long-term deal with him.
www.komonews.com/news/local/44627492.html?video=YHI&t=a
TACOMA, Wash. -- Banks have lifted their temporary moratorium on foreclosures, which means more properties are being auctioned off every Friday on the courthouse steps of every county in the state.
Amid the busy transactions is a man who's leading a protest for patience.
Craig Wuest is trying to find out if his home will indeed be auctioned off the courthouse steps. It's on the list.
"Don't have any information yet, none yet. What's that telling me?" he said.
Wuest, who was injured 18 months ago, can no longer work. His wife works, but her monthly income doesn't cover the mortgage.
"If they lower it, I can afford it. But at this point in time, I can't afford it," he said.
Wuest is four months behind, owes more than his house is worth and has an interest only loan at 10.5 percent.
With mortgage rates at 5 percent, Wuest wants a new deal with his lender but says the lender won't deal.
"I even sent them new financials, so they can see what the financials looked like. It doesn't seem to work with them. I don't know what does, because they don't want to talk to you," he said.
Right now, banks want cash and want borrowers like Wuest off their books. So Wuest got ACORN, a national housing group, to hold a protest for patience.
"This foreclosure rate is just horrendous. I've got five houses in my neighborhood today that are in foreclosure," said Wuest.
The latest monthly figures show the highest rate of foreclosures tends to be in counties with lower household incomes. The worst figures are in Cowlitz County where one out of every 300 homes was in foreclosure during the month of March. Cowlitz County is followed by Pierce, Thurston, Snohomish and Clallam counties.
But someone's pain is someone else's gain.
"The banks are giving more discounts down here so we are purchasing several more properties every week," said Cindy Hornbuckle of Vestus Foreclosure Group.
Auction regulars say the banks are in the mood to sell quick on the courthouse steps. Wuest wishes they'd just make a long-term deal with him.
Tuesday, April 28, 2009
Important changes to foreclosure law headed to governor’s desk
Important changes to foreclosure law headed to governor’s desk
April 9, 2009
OLYMPIA – A bill that aims to increase consumer protection in the area of housing, as well as protection of tenants and homeowners, has passed the Legislature and is now on its way to Gov. Gregoire for her signature.
The legislation (ESB 5810) would give owners and tenants more notice with foreclosures on deeds of trust; it would require lenders to contact homeowners prior to issuing a notice of default; and it would also give tenants more time to move after a foreclosure sale.
“One component critical to helping the economy is to stabilize the housing market. Washington state is still struggling as housing prices and home sales have declined along with an 83 percent rise in foreclosures,” said Rep. Tina Orwall (D-Normandy Park) who sponsored the companion bill in the House. “But we can help the housing market by addressing the issue of foreclosure and making sure that families with the ability to receive assistance to keep their homes do, in fact, get the help they need.”
Deeds of trust are security interests in real property. The Deeds of Trust Act establishes procedures for non-judicial foreclosure in which the homeowner grants a deed creating a lien on the real property for an obligation due to the lender.
Most foreclosures in Washington state are known as non-judicial foreclosures because they don't involve the courts. When homeowners fall behind in their mortgage payments, they receive a notice of default informing them that the foreclosure process has begun.
The bill puts in place a meet and confer requirement, which essentially involves the mortgagee contacting the borrower, assessing his or her financial situation and exploring alternatives to foreclosure, all before issuing a notice of default. This requirement does not apply when the beneficiary is a homeowners or condominium association.
Renters benefit as well under this bill. Additional sections of the bill provide them with notice regarding the foreclosure process, which is not currently required because they do not own the property where they live. Not only do they now get notice, but they also get a 60-day notice of eviction, instead of the 20 days required by current law. This allows them to have greater success in finding a new place to live, and also prevents an eviction notice on their record, which could hinder their finding future rental housing.
“A lot of work was put into this legislation to include important consumer protections so that families actually have the time and resources they need to remain in their homes when possible, and renters –who are often victims in these situations-- have more time to find housing if their homes are foreclosed,” added Orwall.
ESB 5810 also provides that a homeowner can bring an action after the foreclosure sale if there were irregularities in the process, such as fraud or misrepresentation. That section of the bill also:
adds to the list of nonwaived claims a violation of Title 19 RCW (regulations of businesses, including the Consumer Protection Act);
clarifies that the relief is for money damages; and
clarifies that the nonwaived claims must be brought within two years of the foreclosure sale or within the applicable statute of limitation for the claim, whichever is earlier.
April 9, 2009
OLYMPIA – A bill that aims to increase consumer protection in the area of housing, as well as protection of tenants and homeowners, has passed the Legislature and is now on its way to Gov. Gregoire for her signature.
The legislation (ESB 5810) would give owners and tenants more notice with foreclosures on deeds of trust; it would require lenders to contact homeowners prior to issuing a notice of default; and it would also give tenants more time to move after a foreclosure sale.
“One component critical to helping the economy is to stabilize the housing market. Washington state is still struggling as housing prices and home sales have declined along with an 83 percent rise in foreclosures,” said Rep. Tina Orwall (D-Normandy Park) who sponsored the companion bill in the House. “But we can help the housing market by addressing the issue of foreclosure and making sure that families with the ability to receive assistance to keep their homes do, in fact, get the help they need.”
Deeds of trust are security interests in real property. The Deeds of Trust Act establishes procedures for non-judicial foreclosure in which the homeowner grants a deed creating a lien on the real property for an obligation due to the lender.
Most foreclosures in Washington state are known as non-judicial foreclosures because they don't involve the courts. When homeowners fall behind in their mortgage payments, they receive a notice of default informing them that the foreclosure process has begun.
The bill puts in place a meet and confer requirement, which essentially involves the mortgagee contacting the borrower, assessing his or her financial situation and exploring alternatives to foreclosure, all before issuing a notice of default. This requirement does not apply when the beneficiary is a homeowners or condominium association.
Renters benefit as well under this bill. Additional sections of the bill provide them with notice regarding the foreclosure process, which is not currently required because they do not own the property where they live. Not only do they now get notice, but they also get a 60-day notice of eviction, instead of the 20 days required by current law. This allows them to have greater success in finding a new place to live, and also prevents an eviction notice on their record, which could hinder their finding future rental housing.
“A lot of work was put into this legislation to include important consumer protections so that families actually have the time and resources they need to remain in their homes when possible, and renters –who are often victims in these situations-- have more time to find housing if their homes are foreclosed,” added Orwall.
ESB 5810 also provides that a homeowner can bring an action after the foreclosure sale if there were irregularities in the process, such as fraud or misrepresentation. That section of the bill also:
adds to the list of nonwaived claims a violation of Title 19 RCW (regulations of businesses, including the Consumer Protection Act);
clarifies that the relief is for money damages; and
clarifies that the nonwaived claims must be brought within two years of the foreclosure sale or within the applicable statute of limitation for the claim, whichever is earlier.
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