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| Everything Old Is New Again (Part Two) ?
February 07, 2007
Foreclosures are heating up...
You've probably seen stories in recent weeks about how foreclosures are starting to rise in the subprime mortgage market. Barry Ritholtz, a Wall Street research guru, has come across a "heat map" created by RealtyTrac that lets you visualize where the biggest foreclosure problems are, state by state. Not surprisingly, it's often in the states that had the most real estate speculation...
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My sister lives in Colorado--the foreclosure rate is unbelieveable there.
Here are some more realestate insights:
Posted by: Nagel at February 7, 2007 07:32 PM
I am a realtor in Florida (West Coast) and work foreclosures and short sales, the rise here is unbelievable, I get calls on a regular basis for short sales. This is a great time for investing. Liz
Posted by: Liz at March 19, 2007 07:59 AM
I agree with Liz.. Great time to invest...
Here is another example...A record number of San Diego County homes in March has been repossessed by Mortgage lenders, because of the fears that the region's housing slump is worsening. 433 homes lost in foreclosure represented a more-than six-fold increase over the previous March, when there were only 66 such repossessions. Previous record was 389 homes in October 1996.The month's foreclosure rate mirrored the statistics for the entire first quarter of the year: A record 1,183 homes were lost in foreclosure in the first three months of 2007, edging past the previous peak of 1,059 in the third quarter of 1996, emerging from a recession cost in the region.
Posted by: Caesar Esteban - Reator at April 17, 2007 10:06 PM
Recent news that JPMorgan Chase is driving the foreclosure crisis in Ohio’s capital raises serious questions about what the financial giant may be doing to communities elsewhere in the state and around the country.
As The Columbus Dispatch writes:
“JPMorgan Chase is drawing attention for the number of its mortgage loans that end up in foreclosure. Chase mortgages accounted for a larger share of foreclosures in Franklin County than those made by other local banks…”
Research by the Service Employees International shows JPMorgan Chase JPMorgan Chase accounts for 1 in 12 home mortgage foreclosures in Franklin County, Ohio—home to the state capital of Columbus—more than twice the bank’s share of home loans in the market (www.chasemonitor.org). Although defaults on sub-prime mortgage loans are fueling a foreclosure crisis from coast to coast, Ohio leads the nation with the highest rate of foreclosures overall. In Franklin County, the foreclosure rate is twice the state average, and JPMorgan Chase’s foreclosure rate is twice as bad as the countywide average—indicating that JPMorgan Chase is a major contributor to the worst foreclosure crisis in the country.
The same study finds that foreclosures by JPMorgan Chase also have a broader “spillover” impact on homeowners who do not default on their loans. In 2006, JPMorgan Chase cost Franklin County homeowners $15.7 million due to depreciation in the value of houses surrounding properties foreclosed by the bank. Meanwhile, the spillover effect from home value depreciation had a disproportionate impact on communities of color, as homeowners in areas most affected by JPMorgan Chase’s foreclosures were low-income and people of color.
With JPMorgan Chase in the running for lucrative underwriting work on $120 million in public bonds for construction of a new county courthouse, workers and community leaders have taken these issues to county commissioners—with great reception as The Columbus Dispatch reports:
“Franklin County has yet to dig a hole for its new courthouse, but foreclosure is already a concern.
“Union and community leaders asked commissioners yesterday to use their weight to force JPMorgan Chase, chosen last month to help the county borrow money for its new Hall of Justice, to change its practices.
“Otherwise, the leaders said, taxpayers will be doing business with one of the region's foreclosure kings.
… ‘You've raised some very troubling issues about foreclosures,’ Commissioner Mary Jo Kilroy told the group. ‘They (Chase) should be asked to respond.’”
As the third largest bank in the nation, the real question for consumers and homeowners from coast to coast is: Where else is this happening?
Posted by: tranl at April 18, 2007 06:12 PM