Posts filed under “Foreclosures”
A whopping 28.6 percent of homeowners with mortgages owe more on their loans than their homes could sell for, according to quarterly data released Tuesday by Zillow, a real estate website. That’s up from 26.8 percent in the second quarter. Home values declined only 0.2 percent from the second quarter but were down 4.4 percent year over year. The rising percentage of homes with “negative equity” or “underwater” status is due largely to how long the foreclosure sale process takes rather than home value fluctuations, said Zillow chief economist Stan Humphries. Prior to the “robo-signing” scandal around foreclosures that came to light in 2010, the negative equity rate hovered in the 21 to 23 percent range, but has been in the 26 to 28 range since due to added delays in foreclosure sales. While the rate of foreclosures is dropping, the time required for foreclosures to sell has lengthened. “We’re in uncharted waters,” Humphries said in an interview. “More than one in four homes underwater and about 9 percent unemployment is a recipe for more foreclosures.”
Foreclosure sales are moving so slowly in half the states that at the current pace, it will take more than eight years on average to clear the 2.1 million homes in foreclosure or with seriously delinquent mortgages, new research shows. That’s about twice as long as a year ago in the states where foreclosures go through courts — before the mortgage industry was upended by last fall’s disclosures that court papers in many foreclosure cases were improperly prepared. Since then, new checks have slowed the process. The backlogs suggest that the fallout from the nation’s worst housing-market collapse is likely to weigh on real estate prices in many markets for years to come, and on some markets for longer than on others.
Comment: According to Census data, a total of 76.428 million owner occupied units existed in the U.S. as of 2009. Of those, 50.3 million currently had a mortgage on their property.
Recently, Core Logic estimated that 22.5% of all homes in the U.S. were underwater and another 5% had near negative equity. Additionally, JP Morgan has estimated that 27% of all foreclosures are walkaways.
Zillow’s estimates offer another data point on mortgages, suggesting nearly a third of all homes are now underwater.
HARBINGER ANALYTICS GROUP REAL ESTATE FRAUD EXPERTS:
David E. Woolley is the author of the attached white paper. Mr. Woolley is a California Licensed
Land Surveyor and Certified Fraud Examiner with over 24 years of experience and is the
principal in Harbinger Analytics Group:
“Thanks to the Mortgage Electronic Registry System’s (“MERS”) failure to accurately complete and/or publically record property conveyances in the frenzy of banks securitizing home loans and in subsequent foreclosure actions,1 neighbors to a foreclosed property (with a sequential conveyance) as well as the foreclosed property itself will have unclear boundaries and clouded/unmarketable titles making it difficult, if not impossible, for these homeowners to sell their properties and for subsequent purchasers to obtain title insurance on that property. MERS now keeps electronic records on about half of the home mortgages in the United States.
Many problems with MERS and the home loan securitization process have been reported in print media (countless articles), in movies (the Inside Job) and on television (most recently on the April 3, 2011 edition of 60 Minutes). Academic professors such as Christopher L. Peterson of the University of Utah, S.J. Quincy College of Law, have written extensively on what is wrong with MERS.
Courts have ruled against MERS’ standing to foreclose and have criticized the MERS model as being flawed, wholly inaccurate and not allowing homeowners to fight foreclosures because it shields the true owner of a mortgage in public records.5 States Attorneys’ General and federal bank regulators are investigating MERS practices including fraudulently robo-signing and back dating missing documents. A few County Registrars of Deeds are claiming that they are owed millions of dollars in lost revenue from mortgage assignment transfers that were not recorded because MERS was listed as the mortgagee in public land records.
Full PDF after the jump . . .
Richard Vetstein is a nationally recognized real estate attorney, frequently quoted in the media. He was recently named one of Inman News’ 100 Most Influential in Real Estate. Mr. Vetstein is the founder of the Vetstein Law Group and TitleHub Closing Services LLC. The former outside claims counsel for a national title company, he has…Read More
Over the past 2 years, I have warned repeatedly about the dangers to American property rights caused by massive bank fraud, A deadly combination of MERS, robo-signing, and illegal shortcuts have created a horrific situation. A bedrock of our society — the ability for the owner of a piece of real estate to confidently convey…Read More
Last year, we noted the fantastic report issued at of the Florida Attorney General’s office that detailed the rampant fraud in the foreclosure operations of major loan servicers and banks (Florida Attorney General Report on Fraudclosure). It was put together by June Clarkson and Theresa Edwards. That was before the AG’s office was sold to…Read More
“This is a big new front. This case is scary because if Dallas wins then there are a lot of other counties around the country that are going to follow.” -Christopher L. Peterson, associate dean and professor at the University of Utah S.J. Quinney College of Law. > In all of the market mayhem of…Read More
As hard as it may seem to believe, the largest mortgage servicers are still fabricating documents for use in foreclosures. That’s according to an article in American Banker, titled Robo-Signing Redux: Servicers Still Fabricating Foreclosure Documents. Key points: • The practice continues a year after the companies were caught in the robo-signing scandal, even as…Read More
click for ginormous graphic > Today’s WTF data point is how long it will take to work through the backlog of foreclosures at the current pace: “In New York State, it would take lenders 62 years at their current pace, the longest time frame in the nation, to repossess the 213,000 houses now in severe…Read More