Boca Raton Real Estate

Florida #2 in Foreclosures

New Numbers: Foreclosures Soar, Florida Second in US

Experts: National Foreclosures Down in August, but Florida Up

October 23, 2008 - 7:26AM Lindsay Cohen

The numbers are out and the outlook is grim: the amount of homeowners rocked by nation's the foreclosure crisis grew by more than 70 percent in the third quarter of this year, compared with last.

New statistics released Thursday morning by California-based RealtyTrac propel Florida into the second-highest spot in the country when it comes to foreclosure filings. One in every 178 housing units in Florida received a foreclosure filing in September, the company said.

Records show foreclosure filings on 47,956 Florida properties during the month. That's a 44 percent increase compared to September 2007.

The numbers push Florida into the second-highest position nationally. Nevada remains tops in foreclosure filings. California, Arizona, and Georgia round out the top five.

There is some good news in the numbers. RealtyTrac reports a 12 percent decline in forcelosures nationally. The company attributes this to new laws that impact the market, especially in California.

"Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures," said James J. Saccacio, chief executive officer of RealtyTrac, in a statement.

South Florida does not stack up well in the new rankings, although Palm Beach appears to be doing better than other metropolitan areas in the state. The Palm Beach metro area ranks 19th in foreclosure filings nationally, while Miami is 13th and Ft. Lauderdale ranks fifth.

RealtyTrac is based in Irvine, CA. The company uses default notices, auction sale notices, and bank repossessions to calculate foreclosure filings in its reports.

4- Point Housing Stimulus Plan

NAR urges passage of 4-point housing stimulus plan

WASHINGTON, D.C. - Oct. 16, 2008 - The National Association of Realtors® (NAR) unveiled a four-point legislative plan to reinvigorate the housing market, and is calling on Congress to act during a lame-duck session. NAR believes the plan will boost the economy and help calm jittery potential homebuyers.

"Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible," says NAR President Richard F. Gaylord. "It is vital to the economy that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans. We are asking Congress to act right away."

Gaylord says NAR, as the leading advocate for homeownership and private property rights, believes it's important for Congress to address the concerns and fears of America's families, much in the way it has addressed Wall Street turbulence. "Housing is and has always been a good, long-term investment, and a family's primary step towards accumulating wealth," Gaylord says.

NAR recommends Congress pass legislation that includes the following priorities:

1. Remove the requirement in the current law that first-time homebuyers repay the $7,500 tax credit, and expand the tax credit to apply not only to first-time buyers but also to all buyers of a primary residence.

2. Revise the FHA, Fannie Mae and Freddie Mac 2008 stimulus loan limit increases to make them permanent. The Economic Stabilization Act, enacted in February, made loan limit increases temporary, and subsequent legislation reduced the loan limits and made them permanent.

3. Urge government to use a portion of the allotted $700 billion rescue package to purchase mortgage-backed securities from banks, which will provide price stabilization for housing. The Treasury department should be required to use the newly enacted Troubled Assets Relief Program to push banks to:

Extend credit down to Main Street, making credit more available to consumers and small businesses
Expedite the process for short sales
Expedite the resolution of banks' real estate owned (REOs) properties

4. Make permanent the prohibition against banks entering real estate brokerage and management, further protecting consumers and the economy.

Gaylord says that NAR will strongly pursue those proposals and is calling on Congress to return to enact housing stimulus legislation in a lame-duck session after the national elections in November.

© 2008 FLORIDA ASSOCIATION OF REALTORS®

Mortgage Inquiries Focusing on Florida

Mortgage inquiries focusing on Florida

WASHINGTON - Oct. 20, 2008 - New data from the Justice Department shows that federal prosecutors and investigators have launched 151 criminal investigations of potential mortgage fraud at financial institutions since October 2007.

Federal prosecutors appear to have trained their focus geographically, as nearly half of the cases, or 69, were opened in South Florida, followed by 24 in the Pittsburgh area; and an average of 10 cases are underway in southern and central California, northern Georgia, and southern New York. Only a fraction of the major cases have been completed and triggered convictions or settlements.

The FBI is also assisting federal, state and local agencies on about 1,400 mortgage fraud investigations involving smaller companies and individuals.

Source:
New York Times (10/16/08) P. B10; Browning, Lynnley

© Copyright 2008 INFORMATION, INC. Bethesda, MD (301) 215-4688

Home Sales Slide

Existing-Home Sales Slide on Tight Mortgage Availability

Existing-home sales were down in August following a healthy gain in July as tight mortgage credit curtailed activity, according to the National Association of Realtors^®. Sales rose in the Midwest and South but fell in the Northeast and West.

Nationally, existing-home sales - including single-family, townhomes, condominiums and co-ops -declined 2.2 percent to a seasonally adjusted annual rate1 of 4.91 million units in August from an upwardly revised pace of 5.02 million in July, but are 10.7 percent below the 5.50 million-unit pace in August 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the pendulum in the mortgage market has swung too far. "The difficulty in obtaining a mortgage increased over past couple months, making it more challenging for creditworthy borrowers to find financing," he said. "Our hope is that overly tight lending criteria can be loosened with reasonable standards and credit so that sales activity can catch up with demand. Interest rates have already declined, but there is a serious question as to whether a cash infusion by the U.S. Treasury into Wall Street would help consumers by improving mortgage funding.

"We urge Congress to restore access to sound mortgage credit so people have the ability to make and keep a long-term investment in the American dream of homeownership. Congress needs to take care of Main Street and not just bail out Wall Street."

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.48 percent in August from 6.43 percent in July; the rate was 6.57 percent in August 2007. However, last week the 30-year fixed had dropped to 5.78 percent.

Lawrence Yun, NAR chief economist, said the recent drop in interest rates is an immediate impact of recent government action. "August sales reflect higher interest rates before the government takeover of Freddie Mac and Fannie Mae, and the sudden drop in mortgage interest rates over the past couple weeks is improving housing affordability," he said. "With higher loan limits and a beefing up of the FHA program, all the mechanisms have been falling into place to increase mortgage availability.

"However, home sales will be constrained without a freer flow of credit into the mortgage market. The faster that happens, the sooner we'll see a broad stabilization in home prices that in turn will help the economy recover," Yun said. "Historically, housing has led the nation out of economic doldrums - there will not be an economic recovery without a housing recovery."

The national median existing-home price2 for all housing types was $203,100 in August, down 9.5 percent from a year ago when the median was $224,400.

"The median home price reflects more transactions related to subprime loans," Yun said. "Fewer than 10 percent of homeowners have subprime loans, but these mortgages are accounting for a disproportionately high share of sales in the current market. On the other hand, areas that have had sharp price cuts are seeing a turnaround in sales, which are rising very fast now in parts of California, Florida and Nevada."

Total housing inventory at the end of August fell 7.0 percent to 4.26 million existing homes available for sale, which represents a 10.4-month supply3 at the current sales pace, down from a revised 10.9-month supply in July.

Single-family home sales slipped 1.4 percent to a seasonally adjusted annual rate of 4.35 million in August from an upwardly revised pace of 4.41 million in July, but are 9.6 percent below the 4.81 million-unit level a year ago. The median existing single-family home price was $201,900 in August, down 9.7 percent from August 2007.

Existing condominium and co-op sales dropped 8.2 percent to a seasonally adjusted annual rate of 560,000 units in August from an upwardly revised level of 610,000 in July, and are 19.0 percent below the 691,000-unit pace in August 2007. The median existing condo price4 was $212,600 in August, which is 7.2 percent below a year ago.

Regionally, existing-home sales in the Midwest rose 0.9 percent in August to a pace of 1.14 million but are 12.3 percent below August 2007. The median price in the Midwest was $168,000, down 5.6 percent from a year ago.

In the South, existing-home sales increased 0.5 percent to an annual pace of 1.86 million in August, but are 15.1 percent below a year ago. The median price in the South was $176,500, which is 3.4 percent lower than August 2007.

Existing-home sales in the West fell 5.3 percent to an annual rate of 1.07 million in August, but are 4.9 percent higher than August 2007. The median price in the West was $251,600, down 23.9 percent from a year ago. "The highest concentration of foreclosures is in the West, which is weighing down the median price because many buyers are taking advantage of deeply discounted prices," Yun said.

In the Northeast, existing-home sales dropped 6.6 percent to an annual pace of 850,000 in August, and are 15.0 percent below a year ago. The median price in the Northeast was $271,000, down 3.8 percent from August 2007.

Mortgage Fraud

Another Argent Exec Sent to Federal Prison For Fraud

The number of former mortgage executives entering the federal penitentiary system expanded once more with the entrance of Samuel Green, an ex-manager for Argent Mortgage Co., who began his nine-year prison sentence for a $13 million fraud scheme which already has one of his old colleagues serving an 18-year sentence.

The 61-year-old was sentenced to nine years in federal prison after being convicted of operating a multi-million dollar fraud scheme through the submission of more than ten dozen loans to his own company.

Charged with racketeering and conspiracy to commit racketeering, Green was found guilty by a Polk County, Florida jury on Aug. 28 for a mortgage fraud operation across four counties in Florida.

The charges were the result of a three-year investigation which began when a number of complaints were filed about incomplete or substandard construction work being performed by construction companies affiliated with Scott Almeida.

According to investigators, the group passed out fliers in low-income neighborhoods to target poor and uneducated minorities living in ramshackle homes in need of repair.

Almeida and the others allegedly convinced their victims on fixed incomes to a home loan to finance home improvement projects.

Most of the projects were never started, and very few of them were ever completed, say investigators.

Almeida and others secured mortgages for the homeowners by submitting fraudulent documents to Argent Mortgage Company.

As a manager for Argent, Green approved or oversaw the approval of the fraudulent loan applications, as did former Argent Vice President Orson Benn.

Investigators say the organized criminal operation submitted nearly 130 loans to Argent that were funded for approximately $13 million.

In October 2007, Almeida was sentenced to 10 years in prison after pleaded guilty on charges of racketeering, conspiracy to commit racketeering, seven counts of grand theft and six counts of obtaining a mortgage by false representation.

Benn was convicted by a jury in July and sentenced in September to 18 years in prison.

Argent Mortgage, which was acquired by Citigroup Inc. in August 2007, cooperated with investigators and provided information and documents to support the investigation.

Courtesy of MortgageLedger