Countrywide Foreclosures Blog

5,959 Homes Offered For Sale on Bank of America (Countrywide) Website

2009-10-07T02:13:00.006-05:00

Total REO Asking Price: $941,083,901
(As of October 7, 2009)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	12	2,244,800	187,067
AL	127	18,947,870	149,196
AR	37	4,064,200	109,843
AZ	190	28,948,999	152,363
CA	1,278	299,602,269	234,431
CO	116	21,000,599	181,040
CT	34	8,576,499	252,250
DC	15	3,437,500	229,167
DE	09	967,200	107,467
FL	400	51,611,056	129,028
GA	283	29,506,982	104,265
HI	40	16,958,536	423,963
IA	20	1,977,500	98,875
ID	58	10,395,700	179,236
IL	245	32,827,196	133,989
IN	119	7,972,696	66,997
KS	47	3,374,499	71,798
KY	45	3,183,615	70,747
LA	37	4,856,992	131,270
MA	64	9,128,301	142,630
MD	127	25,665,531	202,091
ME	18	1,182,699	65,706
MI	345	21,712,506	62,935
MN	180	25,092,899	139,405
MO	109	11,415,399	104,728
MS	52	5,170,200	99,427
MT	21	6,781,300	322,919
NC	135	19,967,988	147,911
ND	04	277,600	69,400
NE	11	1,225,900	111,445
NH	31	4,836,700	156,023
NJ	79	14,208,300	179,852
NM	12	2,017,451	168,121
NV	134	20,626,300	153,928
NY	140	27,183,599	194,169
OH	125	8,506,714	68,054
OK	62	6,440,301	103,876
OR	78	18,313,600	234,790
PA	82	7,529,949	91,829
RI	20	2,055,000	102,750
SC	60	6,222,893	103,715
SD	08	1,262,100	157,763
TN	132	18,531,845	140,393
TX	381	45,514,298	119,460
UT	45	10,947,471	243,277
VA	172	29,993,799	174,383
VT	02	553,800	276,900
WA	120	27,653,550	230,446
WI	67	7,292,600	108,845
WV	29	3,120,800	107,614
WY	02	197,800	98,900
Total	5,959	941,083,901	150,915

View more charts

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Bush: 'An Extraordinary Period For America's Economy'

2008-09-28T14:11:00.006-05:00

And if you watched the clip... be sure to read Roubini's latest for a better definition of 'extraordinary': Is Purchasing $700 billion of Toxic Assets the Best Way to Recapitalize the Financial System? No! It is Rather a Disgrace and Rip-Off Benefitting only the Shareholders and Unsecured Creditors of Banks

"So this rescue plan is a huge and massive bailout of the shareholders and the unsecured creditors of the financial firms (not just banks but also other non bank financial institutions); with $700 billion of taxpayer money the pockets of reckless bankers and investors have been made fatter under the fake argument that bailing out Wall Street was necessary to rescue Main Street from a severe recession. Instead, the restoration of the financial health of distressed financial firms could have been achieved with a cheaper and better use of public money."

emphasis added

And a video clip below of Jim Rogers calling Paulson's Plan 'Welfare for the Rich':

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BIS Warns on Global Economy: A Deeper and More Protracted Downturn.

2008-06-30T05:27:00.004-05:00

The BIS, also known as the Central Bank of Central Banks, is one of the most respected economic institutions. Prior to the start of the subprime crisis, I had posted an article where the BIS warned and in essence, predicted this current crisis. Now, the BIS is warning again. This time, with the threat of deflation!

BIS:

"The eventual global slowdown could prove to be much greater and longer lasting than would be required to keep inflation under control. This could potentially even lead to deflation, which would evidently be less welcome."

"In the aftermath of a long credit-driven boom, it would not be surprising to see turmoil in financial markets, slowing real growth and temporarily rising inflation."

The Fed also believes that inflationary pressures will eventually come down as growth slows. The only difference being that a rebound in growth seems unlikely as this recession could last well over a year. Professor Shiller is not kidding when he says more stimulus will be needed. See: One Rebate Isn't Enough - New York Times

Inflation will probably still be the main theme this month, as the oil bubble (a.k.a. "oil crisis") continues to dominate. The price of a barrel of oil could easily spike to $200 if the conflict with Iran escalates within the next few weeks. If this be the case, then Professor Roubini deserves some serious credit for making the call. See: Rising Risk of a Military Confrontation between Israel and Iran? - Nouriel Roubini

It seems quite possible that a coordinated effort among central banks could be in the cards. See: BIS slams central banks, warns of worse crunch to come - UK Telegraph

About BIS
The Bank for International Settlements (or BIS) is an international organization of central banks which exists to foster cooperation among central banks and other agencies in pursuit of monetary and financial stability. It carries out its work through subcommittees, the secretariats it hosts, and through its annual General Meeting of all members. The BIS also provides banking services, but only to central banks, or to international organizations like itself. Based in Basel, Switzerland, the BIS was established by the Hague agreement of 1930

BIS 78th Annual Report (30 June 2008)

Over One Million Homes In Foreclosure

2008-06-05T10:12:00.007-05:00

A grim first quarter report from the Mortgage Bankers Association's shows the housing crisis is getting worse. Mortgage delinquencies rose in the first quarter to 6.35%.

From CNN:

The Mortgage Bankers Association's first quarter report showed that a record 2.5% of all home loans being serviced by its members are now in foreclosure, which works out to about 1.1 million homes. That's up from the 2% of loans, or about 938,000 homes, that were in foreclosure at the end of 2007.

The report also showed that 448,000 homes, or about 1% of loans being serviced, began the foreclosure process during the first quarter. That's up from about 382,000 homes, or 0.83%, that entered foreclosure in the last three months of 2007.

This marks the sixth straight quarter in which a record percentage of loans went into foreclosure. The trend has led to widespread declines in home prices, as well as huge losses for banks and other financial firms that issued or invested in the loans.

Read full article >>

The problems in California and Florida are extraordinary and they are the main drivers of the national trend. The quarterly rate of foreclosure starts on subprime ARM loans in California was 9.24 percent. This rate, combined with Florida’s rate of 8.25 percent, drove up the national average foreclosure start rate to the point where 43 states were below the national average of 6.32 percent. California saw a total of approximately 109,000 foreclosure starts and Florida 77,000. The next highest states were Texas, Michigan and Ohio with between 24,000 and 20,000 each.

Here's a direct link to latest MBA National Delinquency Survey.

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It ‘Makes No Sense’ To Continue Paying The Mortgage When The Value Of Your Home Stops Going Up.

2008-01-28T20:11:00.000-05:00

60 Minutes On The New Logic Behind Foreclosures.

Okay, I'm kidding but Stephanie Valdez is not. Matt and Stephanie Valdez are a couple who can afford to continue paying their mortgage payments but see no point in making them. Is it really worth it to continue making payments on an underwater mortgage and at 11% [usury] interest rate? “There is a certain cold logic to just walking away”, says Steve Kroft.

But Matt and Stephanie Valdez say they knew exactly what they were doing when they bought a small two-bedroom for $355,000. They could afford the initial payments and planned to refinance the mortgage before the interest rate jumped to 11 percent. But they couldn't do it because the value of the house had fallen below what they owed on the mortgage. They say they can afford the higher payments, but see no point in making them.

"The house keeps going down, payments keep going up. Where's the logic in that? And how can we fix it? I mean, that's what this whole thing's about for us is how can we fix this? And if we can't fix it, then what do we do?" Matt Valdez asks.

"Why pay a $3,200 payment on a 1200-square-foot home? It makes no sense," Stephanie Valdez adds.

"That's what you agreed to do when you bought the house," Kroft points out.

"Fine. If the value is going up. But we're not going anywhere. The price or the value is going down. It makes no sense because we will never be able to refinance and get a lower payment. There's no way," Stephanie Valdez replies.

"You're saying, essentially, that you're going to stop making payments on it? You're just gonna let it go into foreclosure?" Kroft asks.

"You know, that's the only advice we've gotten so far is walk away from the home. We don't want to do that to our credit. Why can't our mortgage company work with us?" she says.

The full video does a nice job at explaining the whole ponzi scheme. Also from Mish's Global Economic Trend Analysis: Does 60 Minutes Legitimize Walking Away?

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Over 2,000 bank owned homes to be auctioned off in California starting this weekend (Jan 26 - Feb 24)

2008-01-24T03:17:00.000-05:00

It appears that REDC (US Home Auctions) is going to be quite busy this month and earning some nice commissions (5% “Buyers Premium”). If you visit their site and click on an area, there is a detailed break down on all the homes being offered and an option to download them to an excel file. REDC also lists what the previous REO asking prices were. Adding up that column comes up to about $650 million worth of REO that "MUST BE SOLD" in one month (11 auctions). Lenders are now in liquidation mode as foreclosures continue to climb. (Dataquick: California Foreclosure Activity Still Rising)

While obvious that we still haven't hit the "bottom" yet as far as home prices are concerned, and according to a Merrill Lynch report, home prices will drop another 15 percent this year, and declines will continue in 2009. The unknown is just how serious will the upcoming recession be? The FED is in full battle now in fighting against a monstrous deflationary force caused from the collapse of the housing bubble.

Should I buy yet? It really depends on your area. Real estate is local to a greater extent, just make sure you get a good deal, and by that I mean a very good deal. If you can negotiate a good price and intend to live there, I'm guessing you should be okay (yes, i did say guessing). Mortgage rates are at a 2 year low and expected to come down even further. This will make a difference and will bring in a lot of people who were on the sidelines back into the market. Okay, I'm starting to sound like a Realtor(TM) now. Simply put, I don't believe you should put your life on hold waiting for the absolute bottom and in some areas it may not turn out as you expect.

Be sure to do your homework and figure out what a property would rent for and and compare that to what your monthly mortgage payments would be. Here's a calculator from the New York Times and another one from the Center for Economic and Policy Research (2005). If you are looking to buy and flip a house, then be sure to check out one of my favorite sites on flipping houses. Good Luck to all those attending the auctions and be very careful on how you bid.

Update: (And thanks Bubble Sitter for posting this)

“US Home Auctions allow SHILL BIDDING. The quote below is right out if their brochure (and this is the second time I have posted this quote on your web site):”

“On page 122 paragraph 3, I quote verbatim: ‘Except where prohibited by law, the Auctioneer may open bidding on any property by placing a bid on behalf of the Seller and may further bid on behalf of the Seller, up to the amount of the reserve price, by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders.’”

“Your advice to be very careful is right on the mark. US Home Auctions wants to get the bidding going and get people invested in time and effort, then PUMP THEM UP!”

“BE CAREFUL INDEED.”

15,905 Homes Offered For Sale on Countrywide Financial's Website

2008-01-23T11:28:00.000-05:00

Total REO Asking Price: $2,547,478,845
(As of 2/18/2008)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	36	7,955,499	220,986
AL	183	24,714,277	135,051
AR	72	6,566,077	91,196
AZ	956	136,108,198	142,373
CA	4,240	961,105,871	226,676
CO	241	45,855,294	190,271
CT	113	20,450,963	180,982
DC	34	6,545,590	192,517
DE	24	4,101,800	170,908
FL	1,459	193,116,117	132,362
GA	818	94,784,411	115,873
HI	57	20,347,800	356,979
IA	57	5,227,014	91,702
ID	82	20,267,900	247,170
IL	588	74,681,105	127,009
IN	263	18,277,998	69,498
KS	59	6,609,250	112,021
KY	105	8,930,485	85,052
LA	56	5,833,482	104,169
MA	210	34,256,084	163,124
MD	268	57,284,698	213,749
ME	39	3,122,190	80,056
MI	876	60,464,073	69,023
MN	425	61,016,587	143,568
MO	217	19,047,519	87,777
MS	97	10,641,054	109,702
MT	17	3,981,299	234,194
NC	277	38,019,489	137,254
ND	02	59,800	29,900
NE	23	2,196,800	95,513
NH	79	12,577,098	159,204
NJ	201	38,036,992	189,239
NM	38	5,502,099	144,792
NV	950	147,176,146	154,922
NY	203	45,590,398	224,583
OH	369	23,110,259	62,629
OK	108	9,780,890	90,564
OR	122	26,406,100	216,443
PA	174	18,132,394	104,209
RI	90	10,121,496	112,461
SC	139	21,198,270	152,506
SD	12	1,542,800	128,567
TN	262	25,615,547	97,769
TX	531	73,038,152	137,548
UT	63	20,237,900	321,237
VA	317	56,355,686	177,778
VT	05	661,501	132,300
WA	210	48,759,099	232,186
WI	103	8,488,799	82,416
WV	27	2,531,295	93,752
WY	08	1,047,200	130,900
Total	15,905	2,547,478,845	147,111

View more charts.

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11,453 Homes Offered For Sale on Countrywide Financial's Website

2008-01-21T08:40:00.000-05:00

Total REO Asking Price: 1,845,595,537
(As of April 6, 2009)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	29	5,376,700	185,403
AL	162	22,914,886	141,450
AR	57	5,687,299	99,777
AZ	658	97,732,200	148,529
CA	2,694	637,381,149	236,593
CO	161	26,520,897	164,726
CT	90	15,674,666	174,163
DC	27	5,769,198	213,674
DE	22	3,490,800	158,673
FL	985	125,282,569	127,190
GA	533	64,780,416	121,539
HI	66	23,392,900	354,438
IA	33	2,595,500	78,652
ID	79	19,587,000	247,937
IL	432	53,450,741	123,729
IN	192	11,592,292	60,377
KS	39	3,943,000	101,103
KY	84	8,095,699	96,377
LA	47	6,065,393	129,051
MA	127	21,500,197	169,293
MD	219	44,804,972	204,589
ME	21	1,374,896	65,471
MI	688	48,810,794	70,946
MN	323	47,278,294	146,372
MO	133	11,883,100	89,347
MS	80	7,761,294	97,016
MT	16	5,410,400	338,150
NC	217	32,126,696	148,049
ND	04	489,600	122,400
NE	26	2,525,300	97,127
NH	34	5,565,599	163,694
NJ	160	32,604,992	203,781
NM	35	4,788,298	136,809
NV	809	120,744,634	149,252
NY	176	36,756,195	208,842
OH	256	16,796,590	65,612
OK	90	10,011,999	111,244
OR	107	21,609,317	201,956
PA	116	11,867,598	102,307
RI	63	6,692,201	106,225
SC	107	20,075,698	187,623
SD	09	947,099	105,233
TN	188	22,213,550	118,157
TX	443	59,721,445	134,811
UT	69	20,980,999	304,072
VA	281	47,952,881	170,651
VT	04	405,600	101,400
WA	159	33,147,199	208,473
WI	80	7,223,100	90,289
WV	19	1,799,095	94,689
WY	04	392,600	98,150
Total	11,453	1,845,595,537	148,537

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Note: California Average REO Asking Prices have increased +4.2% from last month, and are down -41% from their peak of $400,000.

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Bank of America in talks to acquire Countrywide Financial

2008-01-10T14:57:00.000-05:00

From the Wall Street Journal:

“Bank of America Corp. is in advanced talks to acquire struggling Countrywide Financial Corp., according to people familiar with the situation.”

“It isn't clear how quickly a deal might be struck, but two people familiar with the matter said it could occur very soon. It also is possible that an agreement could be delayed or fall apart altogether.”

“The market value of Countrywide has plunged to about $3 billion, which represents about two months' profit for Bank of America. The Charlotte, N.C., bank paid ...”

Read full article [WSJ subscription needed]

Countrywide has been struggling with the U.S. housing slump, and on Wednesday said foreclosures and late payments among home loans for which it collects payments rose to the highest levels on record in December.

"‘Somebody is going to have to absorb the massive losses in right-positioning Countrywide,’ said Sean Egan, managing director of credit-rating firm Egan-Jones Ratings Co. ‘It can be done, but the cost is going to be exorbitant. From Countrywide's perspective, it is their best chance for salvation.’"

Shares of Countrywide Financial (CFC) surged 51% to 7.77.

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20,255 Homes Offered For Sale on Countrywide Financial's Website

2008-01-08T15:45:00.000-05:00

Total REO Asking Price: $3,270,467,911
(As of January 15, 2009)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	29	7,053,100	243,210
AL	222	31,587,987	142,288
AR	81	7,407,299	91,448
AZ	1,194	177,853,550	148,956
CA	5,595	1,258,408,604	224,917
CO	318	57,334,897	180,298
CT	146	26,356,293	180,523
DC	36	7,555,495	209,875
DE	21	3,518,099	167,529
FL	1,764	250,986,059	142,282
GA	1,061	121,468,800	114,485
HI	68	24,009,300	353,078
IA	70	6,349,101	90,701
ID	98	24,770,200	252,757
IL	773	103,479,869	133,868
IN	309	18,962,045	61,366
KS	71	7,417,800	104,476
KY	131	9,830,884	75,045
LA	71	7,410,797	104,377
MA	245	41,349,387	168,773
MD	297	67,720,914	228,017
ME	42	3,597,796	85,662
MI	1,147	75,918,719	66,189
MN	473	65,697,562	138,895
MO	307	28,433,998	92,619
MS	121	12,875,994	106,413
MT	25	5,404,500	216,180
NC	344	46,268,692	134,502
ND	02	137,800	68,900
NE	32	2,523,800	78,869
NH	116	19,004,796	163,834
NJ	250	49,741,987	198,968
NM	53	7,194,500	135,745
NV	1,174	194,092,405	165,326
NY	239	51,102,494	213,818
OH	483	27,411,686	56,753
OK	120	10,545,414	87,878
OR	154	32,842,700	213,264
PA	224	23,134,342	103,278
RI	112	13,282,194	118,591
SC	160	24,699,397	154,371
SD	10	1,094,000	109,400
TN	329	33,137,087	100,721
TX	742	97,021,370	130,757
UT	68	23,757,200	349,371
VA	460	83,483,501	181,486
VT	05	711,500	142,300
WA	240	56,847,300	236,864
WI	172	14,699,700	85,463
WV	40	3,665,097	91,627
WY	11	1,309,900	119,082
Total	20,255	3,270,467,911	148,341

View more charts.

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Crisis may make 1929 look like a 'walk in the park'

2007-12-23T18:27:00.000-05:00

From the UK Telegraph:

“As central banks continue to splash their cash over the system, so far to little effect, Ambrose Evans-Pritchard argues things are rapidly spiralling out of their control.”

“Twenty billion dollars here, $20bn there, and a lush half-trillion from the European Central Bank at give-away rates for Christmas. Buckets of liquidity are being splashed over the North Atlantic banking system, so far with meagre or fleeting effects.”

“As the credit paralysis stretches through its fifth month, a chorus of economists has begun to warn that the world's central banks are fighting the wrong war, and perhaps risk a policy error of epochal proportions.”

“‘Liquidity doesn't do anything in this situation," says Anna Schwartz, the doyenne of US monetarism and life-time student (with Milton Friedman) of the Great Depression.’”

“‘It cannot deal with the underlying fear that lots of firms are going bankrupt. The banks and the hedge funds have not fully acknowledged who is in trouble. That is the critical issue," she adds.’”

“Lenders are hoarding the cash, shunning peers as if all were sub-prime lepers. Spreads on three-month Euribor and Libor - the interbank rates used to price contracts and Club Med mortgages - are stuck at 80 basis points even after the latest blitz. The monetary screw has tightened by default.”

read full article >>

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The Mortgage Lender Implode-O-Meter reaches 200!

2007-12-10T17:39:00.001-05:00

200 Major U.S. Lenders Have ‘Imploded’

From Implode-O-Meter (A popular web site that tracks failing or "imploded" lenders):

"Imploded" lenders: The "imploded" status is somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or a "firesale" acquisition. The Companies include all types (prime, subprime, or a mix of both; retail or wholesale; subsidiaries and entire companies). Note: Companies listed here may still be operating in some capacity; check with them before making assumptions.

Ailing lenders haven't shut down, but they're significantly scaling back or are (or recently have been) in manifest financial, legal, or operational distress. Unfortunately, most of the industry now falls under this description, so we are forced to reserve this list for the more glaring cases or those which we happen to have more specific info about.

Click here for the whole list of imploded lenders and for the latest news and commentary on the mortgage industry.

21,397 Homes Offered For Sale on Countrywide Financial's Website

2007-11-12T09:23:00.000-05:00

Total REO Asking Price: $3,588,051,552
(As of November 12, 2008)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	18	4,272,300	237,350
AL	229	28,656,184	125,136
AR	75	6,166,100	82,215
AZ	1,224	192,541,650	157,305
CA	5,965	1,403,126,403	235,227
CO	309	58,667,987	189,864
CT	150	27,248,298	181,655
DC	29	6,985,098	240,865
DE	23	3,613,696	157,117
FL	2,216	319,508,440	144,183
GA	1,086	123,665,956	113,873
HI	55	20,864,000	379,345
IA	65	6,264,500	96,377
ID	91	21,915,900	240,834
IL	781	111,028,162	142,162
IN	335	20,624,593	61,566
KS	69	8,166,100	118,349
KY	140	12,133,897	86,671
LA	68	8,306,998	122,162
MA	282	46,664,052	165,475
MD	284	70,108,452	246,861
ME	47	4,555,897	96,934
MI	1,172	77,242,733	65,907
MN	450	64,222,218	142,716
MO	328	31,248,200	95,269
MS	109	11,495,885	105,467
MT	14	3,148,200	224,871
NC	397	56,862,539	143,231
ND	03	161,700	53,900
NE	35	3,052,500	87,214
NH	120	21,350,494	177,921
NJ	245	52,755,296	215,328
NM	44	5,894,399	133,964
NV	1,161	214,850,790	185,057
NY	225	45,574,830	202,555
OH	495	31,549,878	63,737
OK	112	8,982,098	80,197
OR	123	26,739,001	217,390
PA	207	22,766,595	109,984
RI	112	17,590,881	157,061
SC	165	22,252,495	134,864
SD	10	1,079,000	107,900
TN	375	37,393,261	99,715
TX	892	114,247,717	128,080
UT	63	21,893,400	347,514
VA	560	115,700,181	206,607
VT	03	479,700	159,900
WA	227	54,149,400	238,544
WI	160	14,129,400	88,309
WV	39	4,595,098	117,823
WY	10	1,559,000	155,900
Total	21,397	3,588,051,552	154,283

View more charts.

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Over 1000 bank owned homes to be auctioned off in Southern California (Nov 3 - 11)

2007-10-30T13:46:00.000-05:00

November 3, 2007 - November 4, 2007.

The party starts this Saturday at the Fairplex in Pomona. Here's the link to the 400 REO's that "MUST BE SOLD" from REDC (USHomeAuction.com)

November 07, 2007 - November 11, 2007

Hudson & Marshall: Nearly 600 Southern California Foreclosed Homes Totaling $198 Million Up For Auction

"A souring housing market brimming over with foreclosures and falling home prices translates into sweet news for buyers in search of deals. As property values continue their spiral downward, more owner occupant buyers are turning to foreclosed property auctions to find even greater price reductions. America's largest foreclosed real estate auction firm, Hudson & Marshall will auction nearly 600 foreclosed homes located throughout Los Angeles and the San Bernardino Valley area on November 6-11."

Lenders are now aggressively cutting down on prices but that still doesn't mean you're going to find a bargain. All indicators showing plenty of "growth potential" in California's "As Is" home sales industry, and increased competition in REO's is always a good sign for the consumer - just take a look at California's recent record foreclosure activity.

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Countrywide Financial: It Was A Technical Glitch

2007-10-25T02:10:00.000-05:00

The other day Countrywide Financial posted over 195,000 properties for sale on their REO/Foreclosure website. It was a complete shocker to many of us - as we didn't know what to make of this.

Thanks to Peter Villes from the L.A. Times who contacted Countrywide's PR and received the following email response:

"There was a technical glitch. I'm trying to get you the accurate number but it probably won't happen until tomorrow."

A reader from the L.A. Times Blog asked:

‘MattJ wrote, " I'm sure it is a technical glitch, too, but the real question is what is that list of 190,000 houses a list of? Some speculation at Calculated Risk include that it is a list of homes in the foreclosure process but not yet REOs, or that it is a list of all REO houses that Countrywide services. Whatever it is, it sure would be nice to learn what that larger list contains and how it ended up in their list of Countrywide REOs."’

The question from MattJ's post was forwarded by email to Countrywide by Peter and the response from Countrywide was as follows:

"There was an omission in the logic that didn't filter out any properties so it was including all historical REO properties in the database. This has been rectified and new logic has been added."

From Peter Villes:

"To answer gman's question ("Is it possible that Countrywide has 196,000 of these and they've just been holding back?"), we think that is highly unlikely, and we take Countrywide at its word on this one: a technical glitch."

I believe this explains a lot, and we should take Countrywide at its word on this one as well.

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Breaking News: Countrywide Financial REO's Off The Charts!

2007-10-23T08:35:00.000-05:00

Update: See Below
Source: http://www.countrywide.com/purchase/f_reo.asp

89,030 REO's have "NO BROKER ASSIGNED" as contact name.
More data soon to come. No Asking Prices listed on CFC site for all these homes.

Click on State below for detailed listings.
(Note: These properties are no longer posted on Countrywide's website .)

State	Count
AK	245
AL	2799
AR	985
AZ	3544
CA	28136
CO	8322
CT	1201
DC	323
DE	183
FL	8728
GA	10227
HI	811
IA	975
ID	1319
IL	5793
IN	7327
KS	1897
KY	2939
LA	1637
MA	2405
MD	2010
ME	204
MI	17319
MN	3559
MO	6069
MS	1414
MT	325
NC	7294
ND	93
NE	561
NH	613
NJ	1895
NM	1132
NV	3488
NY	3298
OH	10269
OK	3043
OR	1837
PA	5224
RI	353
SC	2798
SD	156
TN	5292
TX	15138
UT	2462
VA	3369
WA	3342
WI	2446
WV	453
WY	181
Total	195,433

Update:

There were 195,433 properties published for sale (click on state links above to see the properties) by Countrywide Financial all through last night and this morning (probably up until noon time I'm guessing). Countrywide no longer has all these properties on their site as being offered for sale and the number of REO's currently listed are back to the 13k range. This huge number of listed properties is just too huge to figure out what is going on. I truly thought those numbers were going to stay published on their site. I cannot say what Countrywide's intentions were for publishing 195,433 properties. Perhaps it was a mistake? I have no clue. The current properties offered for sale can be found here. All data on this blog is AS IS.

19,618 Homes Offered For Sale on Countrywide Financial's Website

2007-10-17T11:19:00.000-05:00

Total REO Asking Price: $3,308,329,521
(As of October 17, 2008)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	25	6,720,500	268,820
AL	207	26,304,996	127,077
AR	85	7,393,400	86,981
AZ	796	131,416,250	165,096
CA	5,334	1,280,894,200	240,138
CO	293	56,856,297	194,049
CT	158	28,129,187	178,033
DC	26	6,726,397	258,708
DE	26	3,803,399	146,285
FL	2,067	310,620,129	150,276
GA	995	114,184,224	114,758
HI	45	16,195,900	359,909
IA	68	5,498,199	80,856
ID	78	19,325,850	247,767
IL	763	106,199,721	139,187
IN	365	22,572,244	61,842
KS	82	7,340,052	89,513
KY	131	10,699,745	81,677
LA	63	7,240,300	114,925
MA	248	41,947,253	169,142
MD	287	75,088,285	261,632
ME	44	4,090,201	92,959
MI	1,228	79,788,489	64,974
MN	470	65,877,036	140,164
MO	320	29,765,675	93,018
MS	101	11,085,497	109,757
MT	16	3,517,300	219,831
NC	386	57,997,051	150,251
ND	01	32,900	32,900
NE	30	2,565,000	85,500
NH	113	19,786,874	175,105
NJ	222	48,041,990	216,405
NM	35	5,779,500	165,129
NV	908	170,383,405	187,647
NY	219	44,943,769	205,223
OH	492	29,316,412	59,586
OK	92	7,315,799	79,520
OR	118	26,621,001	225,602
PA	187	18,736,100	100,193
RI	99	16,598,195	167,659
SC	160	20,256,900	126,606
SD	09	1,027,200	114,133
TN	369	36,042,995	97,677
TX	801	101,284,242	126,447
UT	52	20,151,600	387,531
VA	581	127,079,755	218,726
VT	03	469,700	156,567
WA	219	54,086,700	246,971
WI	154	14,689,309	95,385
WV	38	4,339,198	114,189
WY	09	1,503,200	167,022
Total	19,618	3,308,329,521	156,066

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Comptroller Dugan Urges Improved Underwriting Standards on Third Party Loans

2007-10-09T10:46:00.000-05:00

News Release from the Comptroller of the Currency: Comptroller of the Currency John C. Dugan said today that banks need to strengthen their underwriting standards, particularly on loans sold to third party investors.

“I am here to say that bank underwriting standards for these products, in many cases, moved too far away from what they would have been if the bank had held those loans on its own books,” Mr. Dugan said in a speech to the American Bankers Association’s Annual Convention.

Mr. Dugan noted the many positive aspects of the “originate-to distribute” model, but said there can be negative effects on underwriting standards, including relaxing significantly the incentives to use caution and prudence in underwriting loans sold to third parties.

“When a bank makes a loan that it plans to hold, the fundamental standard it uses to underwrite the loan is that most basic of credit standards that I’ve already talked about: the underwriting must be strong enough to create a reasonable expectation that the loan will be repaid,” the Comptroller said. “But when a bank makes a loan that it plans to sell, then the credit evaluation shifts in an important way: the underwriting must be strong enough to create a reasonable expectation that the loan can be sold—or put another way, the bank will underwrite to whatever standard the market will bear.”

Comptroller Dugan outlined what needs to be done. “I am here to say that banks need to strengthen their underwriting standards so that they move back towards the fundamental principle of maintaining a reasonable expectation that loans will be repaid, even if the loans are to be sold to third parties – and that goes for mortgage loans, leveraged loans, or any other syndicated credit,” Mr. Dugan said. read more >>

17,211 Homes Offered For Sale on Countrywide Financial's Website

2007-09-28T15:54:00.000-05:00

Total REO Asking Price: $2,950,530,922
(As of Sept. 28, 2008)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	21	5,591,900	266,281
AL	189	22,877,100	121,043
AR	63	5,851,600	92,883
AZ	703	124,513,072	177,117
CA	4,486	1,066,465,781	237,732
CO	241	44,339,388	183,981
CT	149	25,356,898	170,181
DC	25	6,405,499	256,220
DE	22	3,445,800	156,627
FL	2,029	323,035,762	159,209
GA	826	97,178,579	117,650
HI	43	16,186,900	376,440
IA	51	4,148,500	81,343
ID	61	16,503,000	270,541
IL	712	99,452,862	139,681
IN	349	21,952,432	62,901
KS	63	6,341,290	100,655
KY	110	9,263,899	84,217
LA	55	6,454,199	117,349
MA	240	40,061,493	166,923
MD	316	81,977,594	259,423
ME	32	2,890,800	90,338
MI	1,211	81,633,543	67,410
MN	466	68,757,540	147,548
MO	286	29,858,180	104,399
MS	91	10,702,201	117,607
MT	14	2,645,600	188,971
NC	329	54,122,899	164,507
ND	01	124,900	124,900
NE	35	3,303,100	94,374
NH	89	16,720,500	187,871
NJ	198	41,865,916	211,444
NM	23	3,485,700	151,552
NV	663	126,450,105	190,724
NY	178	40,272,877	226,252
OH	407	25,940,661	63,736
OK	66	5,878,400	89,067
OR	86	21,060,500	244,890
PA	137	16,597,650	121,151
RI	81	13,330,998	164,580
SC	146	19,179,600	131,367
SD	07	908,400	129,771
TN	325	34,209,691	105,261
TX	572	77,822,818	136,054
UT	50	19,524,400	390,488
VA	649	147,017,136	226,529
VT	02	269,800	134,900
WA	156	42,009,700	269,293
WI	120	11,753,459	97,945
WV	30	3,888,000	129,600
WY	07	902,300	128,900
Total	17,211	2,950,530,922	161,369

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15,551 Homes Offered For Sale on Countrywide Financial's Website

2007-09-01T10:43:00.000-05:00

Total REO Asking Price: $2,771,220,382
(As of September 1, 2008)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	12	3,204,400	267,033
AL	141	17,901,500	126,961
AR	38	3,737,000	98,342
AZ	614	109,740,100	178,730
CA	4,185	1,014,611,985	242,440
CO	215	40,813,508	189,830
CT	151	23,939,547	158,540
DC	28	7,607,299	271,689
DE	25	3,888,599	155,544
FL	1,939	325,750,967	167,999
GA	749	90,600,150	120,961
HI	40	15,349,900	383,748
IA	35	3,533,600	100,960
ID	51	15,931,100	312,375
IL	686	99,058,318	144,400
IN	269	17,208,583	63,972
KS	55	5,748,700	104,522
KY	72	5,966,820	82,873
LA	39	5,132,100	131,592
MA	250	42,441,765	169,767
MD	299	78,777,999	263,472
ME	23	2,393,900	104,083
MI	1,109	82,623,890	74,503
MN	438	64,974,859	148,344
MO	207	19,790,310	95,605
MS	79	9,538,100	120,735
MT	10	1,888,000	188,800
NC	194	37,504,773	193,324
ND	01	59,900	59,900
NE	11	1,534,900	139,536
NH	87	15,963,100	183,484
NJ	198	43,066,572	217,508
NM	25	3,367,500	134,700
NV	593	115,635,760	195,001
NY	178	41,875,148	235,254
OH	348	22,597,839	64,936
OK	55	6,391,700	116,213
OR	75	18,819,100	250,921
PA	133	16,585,182	124,701
RI	94	15,433,849	164,190
SC	112	14,388,400	128,468
SD	06	844,500	140,750
TN	240	25,703,992	107,100
TX	514	71,925,013	139,932
UT	41	15,312,038	373,464
VA	615	142,258,917	231,315
VT	01	112,900	112,900
WA	131	34,364,053	262,321
WI	109	10,774,714	98,851
WV	28	4,117,833	147,065
WY	03	429,700	143,233
Total	15,551	2,771,220,382	165,351

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15,108 Homes Offered For Sale on Countrywide Financial's Website

2007-08-11T06:36:00.000-05:00

Total REO Asking Price: $2,707,749,339
(As of August 11, 2008)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	07	1,470,300	210,043
AL	143	16,982,348	118,758
AR	38	3,399,900	89,471
AZ	722	131,961,160	182,772
CA	3,738	916,042,431	245,062
CO	209	41,664,784	199,353
CT	156	26,734,199	171,373
DC	21	5,929,899	282,376
DE	23	3,659,900	159,126
FL	1,839	340,637,706	185,230
GA	694	84,196,986	121,321
HI	40	15,085,700	377,143
IA	39	4,554,700	116,787
ID	51	14,928,850	292,723
IL	709	103,819,667	146,431
IN	287	17,334,302	60,398
KS	48	5,233,767	109,037
KY	88	7,388,648	83,962
LA	47	5,571,300	118,538
MA	251	41,081,675	163,672
MD	280	74,116,611	264,702
ME	17	1,782,300	104,841
MI	1,102	89,247,755	80,987
MN	464	70,613,256	152,184
MO	220	20,631,720	93,781
MS	90	10,899,762	121,108
MT	08	1,775,200	221,900
NC	161	28,851,798	179,204
ND	02	159,800	79,900
NE	15	2,068,500	137,900
NH	81	14,693,549	181,402
NJ	190	42,138,261	221,780
NM	26	4,192,500	161,250
NV	488	101,698,800	208,399
NY	169	39,944,291	236,357
OH	397	25,314,925	63,766
OK	54	4,812,600	89,122
OR	72	18,353,500	254,910
PA	133	17,313,336	130,175
RI	91	15,052,199	165,409
SC	95	13,913,563	146,459
SD	08	848,300	106,038
TN	260	26,718,111	102,762
TX	592	82,695,449	139,688
UT	48	17,368,200	361,838
VA	631	147,276,989	233,403
WA	117	31,779,300	271,618
WI	116	11,177,456	96,357
WV	29	4,323,286	149,079
WY	02	309,800	154,900
Total	15,108	2,707,749,339	166,896

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Experian: Fifty Percent of Consumers Are Uncomfortable Making a Major Purchase in the Next Three Months

2007-08-08T14:36:00.000-05:00

According to the latest Experian-Gallup Personal Credit Index consumers don't plan on making any significant purchases (homes, cars, plasma TV's, granite countertops, etc...) any time soon. What's interesting to note about this survey is that consumer credit perceptions have been negatively impacted by the subprime mortgage fallout along with rising foreclosures, and the recent spike in long-term interest rates.

From Experian: “Key results on consumer attitudes toward the mortgage market include:

* 58 percent believe the problems in the subprime mortgage market will affect the overall mortgage market, while 24 percent feel the problems will be contained.
* 61 percent of consumers who are very familiar with subprime mortgage loans believe the problems in the subprime mortgage market will spill over into the overall mortgage market.
* 55 percent believe the federal government should pass new legislation helping subprime borrowers keep their homes and avoid foreclosure.

Overall, about 52 percent of consumers surveyed feel the average price of homes in their area will increase over the next year, while 29 percent believe prices will remain about the same. Eighteen percent of consumers expect that prices in their area will decrease.

Among homeowners, 50 percent believe that average prices will increase, while 32 percent feel they will stay about the same.” read full article >>

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13,878 Homes Offered For Sale on Countrywide Financial's Website

2007-07-22T09:27:00.000-05:00

Total REO Asking Price: $2,469,313,620
(As of July 22, 2008)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	08	1,916,200	239,525
AL	130	14,507,099	111,593
AR	29	2,401,000	82,793
AZ	611	114,579,346	187,528
CA	3,378	832,280,975	246,383
CO	194	39,233,200	202,233
CT	151	26,446,099	175,140
DC	20	5,468,290	273,415
DE	18	2,776,200	154,233
FL	1,741	312,350,100	179,408
GA	662	79,139,438	119,546
HI	29	10,470,400	361,048
IA	31	3,956,850	127,640
ID	42	10,926,400	260,152
IL	604	87,811,655	145,384
IN	283	16,663,586	58,882
KS	49	5,222,450	106,581
KY	91	7,846,850	86,229
LA	37	4,714,300	127,414
MA	275	44,928,405	163,376
MD	271	74,060,549	273,286
ME	17	1,726,300	101,547
MI	1,035	81,133,412	78,390
MN	448	68,998,000	154,013
MO	194	18,355,230	94,615
MS	82	10,376,747	126,546
MT	08	1,878,200	234,775
NC	134	23,730,572	177,094
ND	03	249,700	83,233
NE	11	2,037,900	185,264
NH	77	13,879,850	180,258
NJ	162	37,254,462	229,966
NM	22	3,381,800	153,718
NV	503	104,757,941	208,266
NY	154	35,979,561	233,634
OH	417	25,514,823	61,187
OK	41	4,629,000	112,902
OR	57	14,182,400	248,814
PA	114	14,210,120	124,650
RI	89	15,466,299	173,779
SC	84	10,701,700	127,401
SD	08	922,300	115,288
TN	215	21,245,644	98,817
TX	507	69,923,906	137,917
UT	35	12,732,701	363,791
VA	570	135,546,373	237,801
WA	99	26,501,800	267,695
WI	100	10,051,287	100,513
WV	35	5,621,500	160,614
WY	03	624,700	208,233
Total	13,878	2,469,313,620	169,250

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The Mortgage Lender Implode-O-Meter reaches 100!

2007-07-18T12:49:00.000-05:00

~~100~~ 173 Major U.S. Lenders Have ‘Imploded’

From Implode-O-Meter (A popular web site that tracks failing or "imploded" lenders): “This is our list of lending operations that have ‘imploded’ (see also ailing lenders). ‘Imploded’ is somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or ‘firesale’ acquisition. Important: All information here is provisional. If you are planning on doing business with any of these companies you should inquire with them on whether they can still meet your needs. Many are still operating in some capacity.

“The Companies include all types (prime, subprime, or a mix of both; retail or wholesale; subsidiaries and entire companies). The list, with links to stories and whatever details we have available (most recent first) follows:”

Number 100: CIT Home Lending

“CIT Group, a major conglomerate lending and investment shop, is exiting the home lending business entirely, after taking an ‘unexpected’ (hah!) loss of $127 million in the second quarter.” read more >>

Update: 173

Bear Stearns hedge funds worthless

2007-07-18T11:35:00.000-05:00

The Telegraph reports: “Two struggling Bear Stearns hedge funds that ran into difficulties after making large bets on the troubled US sub-prime mortgage market now contain ‘very little’ or ‘effectively no value’ for investors, according to the Wall Street firm.”

“In a letter to clients, Bear Stearns, which had to pump $1.6bn (£800m) into the funds last month to stop them collapsing, said that it was seeking ‘an orderly wind-down of the funds over time’.”

“In what it described as ‘a difficult development for investors’, the bank said ‘there is effectively no value left’ for investors in its Enhanced Leverage Fund and ‘very little value left’ for investors in its High-Grade Fund.” read more >>

Letter sent to investors: Dear Client of Bear, Stearns & Co. Inc, ... read letter >>

Bear Stearns shifted the blame from subprime mortgage to “unprecedented declines in the valuations of highly-rated securities.” The two funds have been in the news for weeks after suffering heavy losses. Bear sent the letter to investors yesterday.

Two-Thirds of Americans Believe Mortgage Product Advertising and Marketing Lacks Credibility

2007-07-16T09:11:00.000-05:00

A report from Harris Interactive: “Given all the negativity surrounding the sub-prime mortgage marketplace, it is no surprise that consumers have questioned the credibility of the current marketing and advertising for mortgage products. Just one-third of US adults (34%) view the advertising and marketing of mortgage products as credible, with the majority (66%) viewing it as not credible. In fact, one in five adults (22%) report that they view the advertising and marketing of these products as ‘not at all credible.’”

“These numbers have significant implications for the type of trust the American public has in financial institutions. When probed further about their perceptions of the financial institutions that provide mortgages, only one-quarter (27%) of U.S. adults report favorable perceptions, with just three percent saying their perceptions are very favorable. ‘Given the large proportion of consumers who are riding the fence, now more than ever would be a good time for these institutions to examine their mortgage product advertising and marketing messages,’ says Sanford Brumley, Vice President of Client Development for the Harris Interactive Financial Services Group.” read more >>

About:
“Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides innovative research, insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods.”

GE bails out of subprime market

2007-07-13T08:11:00.000-05:00

GE confirmed today that it is selling WMC Mortgage as the subprime sector is at a near collapse from massive increases in defaults . GE bought WMC just three years ago, and since then has gone from 1,200 to 700 employees.

From Bloomberg: “‘The mortgage industry has greatly changed since the purchase of WMC,’ Laurent Bossard, chief executive officer of the division, said in an e-mail to employees yesterday. ‘The current subprime market environment has made a significant negative impact on the business.’”

“GE's decision to divest WMC comes as more than 60 mortgage companies have halted operations, gone bankrupt or sought buyers since the start of 2006, according to Bloomberg data. The contraction in the subprime industry caused the near- collapse last month of two hedge funds run by Bear Stearns Cos. and the downgrading of almost $12 billion of mortgage securities by ratings companies.”

“‘GE's been in and out of the mortgage business before,’ said Angelo Mozilo, chief executive officer of Countrywide Financial Corp. His Calabasas, California-based company, the country's largest home lender, has said it expects to benefit as weaker rivals or competitors less dedicated to mortgages disappear during a difficult period for the cyclical business.” read more >>

NAACP Sues 14 Subprime Mortgage Lenders

2007-07-12T09:26:00.000-05:00

The Lenders: Ameriquest, Wells Fargo, Fremont, Option One, WMC Mortgage, Countrywide, Long Beach Mortgage, CitiGroup, BNC Mortgage, Accredited Home Lenders, Encore, First Franklin, HSBC, Washington Mutual

* This lawsuit is designed to stop these lenders from engaging in systematic, institutionalized racism in making home mortgage loans.
* In a 2006 study, the Center for Responsible Lending found that when creditworthiness and credit risk were equal, African-Americans were still 31 percent to 34 percent more likely to receive higher rate, more expensive subprime loans than Caucasians.
* The National Community Reinvestment Coalition revealed that lenders on average made high-cost subprime loans to higher-qualified African-Americans 54% of the time, compared to 23% of the time for Caucasians, even when the Caucasian applicants were less qualified.
* These and other studies demonstrate that African-American homeowners are paying higher mortgage interest rates than their Caucasian counterparts.

read more >>

RealtyTrac: Foreclosures up 87% from June 2006

2007-07-12T07:50:00.000-05:00

A report from RealtyTrac. “ A total of 164,644 foreclosure filings -- default notices, auction sale notices and bank repossessions -- were reported during the month, down 7 percent from the previous month but still up 87 percent from June 2006. The report also shows a national foreclosure rate of one foreclosure filing for every 704 U.S. households for the month.”

“‘Foreclosure activity subsided somewhat in June after hitting a 30-month high in May,’ said James J. Saccacio, chief executive officer of RealtyTrac. ‘And the drop in activity was fairly broad, with 33 states reporting month- over-month decreases. Still, the foreclosure rates in most states remained substantially above last year's levels.’” read more >>

The top 5 by rank according to RealtyTrac:

Rank	State	1 for every #HH	%Change from May 07	%Change from June 06
1	Nevada	175	-9.80	279.58
2	California	315	-2.16	286.81
3	Colorado	317	-9.75	54.40
4	Florida	347	-3.08	144.45
5	Arizona	383	-3.50	168.00

12,799 Homes Offered For Sale on Countrywide Financial's Website

2007-07-10T10:52:00.000-05:00

Total REO Asking Price: $2,286,683,889
(As of July 10, 2008)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	05	1,091,500	218,300
AL	130	14,474,098	111,339
AR	27	2,415,300	89,456
AZ	538	103,676,161	192,707
CA	3,196	789,450,858	247,012
CO	175	38,099,810	217,713
CT	141	23,757,300	168,491
DC	20	6,064,000	303,200
DE	18	2,781,200	154,511
FL	1,521	278,409,012	183,043
GA	610	70,656,793	115,831
HI	20	6,912,200	345,610
IA	34	3,851,766	113,287
ID	37	9,330,250	252,169
IL	534	79,535,197	148,942
IN	246	15,432,430	62,733
KS	37	4,621,300	124,900
KY	72	6,200,300	86,115
LA	32	3,347,800	104,619
MA	262	42,868,799	163,621
MD	253	69,896,747	276,272
ME	12	1,046,800	87,233
MI	1,078	85,800,804	79,593
MN	429	63,140,328	147,180
MO	187	17,281,283	92,413
MS	76	9,246,347	121,662
MT	07	1,338,300	191,186
NC	115	21,585,473	187,700
ND	03	294,700	98,233
NE	11	1,796,900	163,355
NH	62	11,584,200	186,842
NJ	145	34,260,701	236,281
NM	15	1,817,500	121,167
NV	449	95,033,410	211,656
NY	139	34,042,698	244,911
OH	406	24,175,171	59,545
OK	27	2,701,300	100,048
OR	63	15,086,050	239,461
PA	115	14,230,106	123,740
RI	78	13,555,300	173,786
SC	66	7,945,600	120,388
SD	07	771,500	110,214
TN	191	16,970,548	88,851
TX	422	62,191,794	147,374
UT	32	12,433,000	388,531
VA	539	125,699,830	233,209
WA	85	24,271,400	285,546
WI	94	10,077,825	107,211
WV	35	4,864,500	138,986
WY	03	567,700	189,233
Total	12,799	2,286,683,889	167,108

View more charts

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Foreclosures up 41% percent in first half of 2007

2007-07-09T09:12:00.000-05:00

A press release from Foreclosures.com: “The foreclosure pox continues to spread unchecked across the country despite efforts by government and industry to stop it.”

“3 out of every 1,000 homeowners in the United States lost their homes to foreclosure in the first half of the year. That’s up 41 percent compared to the same period last year, according to the latest numbers from ForeclosureS.com, a California-based real estate investment advisory firm and longtime publisher of foreclosure and property information.”

“These per capita numbers translate to almost a quarter-million residential properties (247,907) that ended up in the hands of banks or lenders this year because homeowners couldn’t get their mortgage default problems solved, according to ForeclosureS.com, which tracks and analyzes foreclosure filing through its database of more than 3.2 million listings nationwide. Per capita reflects the number of filings as a percent of the number of households in an area.”

“‘Hundreds of thousands of more homeowners won’t be able to escape foreclosure for most of the rest of the year either unless stagnating housing prices and markets pick up, and the nation’s economy rebounds, too,’ says Alexis McGee.”

read more >>

--In other words, hundreds of thousands more will be losing their homes to foreclosure.
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Credit Suisse: CDO Losses, A $52 Billion Problem For Investors

2007-07-09T08:41:00.000-05:00

From Bloomberg: “Credit Suisse Group said losses on bonds backed by U.S. subprime mortgages will total as much as $52 billion, less than estimates of the fallout from Deutsche Bank and Pacific Investment Management Co.”

“Subprime defaults are ‘clearly a huge problem’ for investors in collateralized debt obligations, Credit Suisse analysts led by Ivan Vatchkov in London wrote in a report. ‘But we do not think that they are a systemic one.”

“No one knows how much money is at risk from subprime defaults because CDOs made up of the loans aren't required to publicly disclose holdings. Deutsche Bank AG says losses from subprime mortgages issued last year may reach $90 billion. Pacific Investment Management Co. in Newport Beach, California, in April estimated the fallout at as much as $75 billion.”

“‘Investment banks operate in this market day and night and they know it better than most,’ Vatchkov said in an interview today. ‘The market's been turning for the past 12 months, so I think they saw it coming.’” read article >>

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Hudson & Marshall To Auction Off 400+ Homes In Northern California

2007-07-07T07:48:00.000-05:00

From Hudson & Marshall. “Dallas based Hudson & Marshall will auction the northern California homes in various cities on the following days: July 17 in Fresno; July 18 in Salinas; July 19 in Modesto; July 21 in San Francisco; and July 22 in Sacramento. Valued from $100,000 to more than $800,000, the homes come with guaranteed title insurance paid by the seller, ensuring all properties are free of any back taxes or liens.”

“All properties are sold ‘as is’ and potential buyers should inspect homes prior to auction, so they know what they are bidding on. Interested buyers can visit properties during open house events scheduled for July 14th and 15th from 1:00pm-3:00pm. Winning bidders will be required to make a down payment of 5% of the selling price or $2500, whichever is greater, in the form of cash or check.”

“Real estate auctions are gaining popularity among sellers as a quick way to dispose of property in a slow housing market. According to the National Auctioneers Association, the fastest growing sector of the $257.2 billion auction industry is residential real estate auctions, which jumped 12.5% in 2006, generating $16 billion.”

Ohio A.G. building a case to investigate credit-rating agencies like Moody's

2007-07-05T12:21:00.000-05:00

Fortune via CNN: “While Bear Stearns is the most recent financial institution to find itself caught up in the subprime-mortgage quagmire, the three credit-rating agencies - Standard & Poor's, Moody's (Charts), and Fitch - may be the next ones to see their good names dragged through the mud.”

“The reason? Ohio attorney general Marc Dann is building a case against them based on the role he believes their ratings played in the marketing of risky mortgage-related securities.”

“The ratings agencies cashed a check every time one of these subprime pools was created and an offering was made,’ Dann told Fortune, referring to the way the bond issuers paid to get their asset-backed securities (ABSs) and collateralized debt obligations (CDOs) rated by the agencies. These ratings run from AAA for debt with the lowest risk of default all the way down to noninvestment- grade bonds, which many pension funds are prohibited from purchasing in their charters. ‘[The agencies] continued to rate these things AAA . [So they are] among the people who aided and abetted this continuing fraud," adds Dann.’”

“Ohio has the third-largest group of public pensions in the United States, and they've got exposure: The Ohio Police & Fire Pension Fund has nearly 7 percent of its portfolio in mortgage- and asset-backed obligations.”

“Moody's says that Dann's accusations are nonsense. ‘We perform a very significant but extremely limited role in the credit markets. We issue reasoned, forward-looking opinions about credit risk,’ says Fran Laserson, vice president of corporate communications at Moody's. ‘Our opinions are objective and not tied to any recommendations to buy and sell.’ She further points out that while some securities have lost significant value, none have actually defaulted. (S&P and Fitch declined to comment.) ” read more >>

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Defaults To Keep Rising As Consumers Struggle With Debt

2007-07-05T08:41:00.000-05:00

Bloomberg: “Delinquencies and defaults on U.S. subprime mortgages will keep rising as problems in the housing market persist, said Robert Parker, vice chairman of Credit Suisse Asset Management.”

“The share of U.S. subprime mortgages entering default in the first quarter was the highest in almost five years, according to the U.S. Mortgage Bankers Association, as the country suffers its worst house-price decline since the 1930s.”

“‘It's naïve to assume the worst is past us in the U.S. subprime market,’ Parker said at a bond market conference today in Hong Kong. ‘At least over the balance of this year, the subprime default rate will rise.’” read more >>

MarketWatch: The signs of stress are all around:
“Prices are rising, but incomes and wealth aren't. With most households already overburdened with debt, consumers are being squeezed. There's only one thing to do, even though it goes against every fiber of their being: Cut back on expenses.

“Realtors are feeling it, retailers are feeling it, and so are automakers and bankers.”

- Sales at retail chain stores continued to weaken in the last week of June. The International Council of Shopping Centers index barely grew week-over-week, while the Redbook index fell to a cyclical low, with same-store sales up just 1.2% compared with a year earlier.
- Vehicle sales declined for the sixth straight month in June. In the past six years, sales have been weaker on only two occasions. At the same time, the automakers have stepped up their production, setting up the industry for another round of layoffs and production cutbacks.
- Home sales fell again in May. The National Association of Realtors said the number of contracts signed on previously owned homes fell 3.5% to the lowest level since the recession.
- More consumers fell behind on their debt payments in the first quarter. The percentage of loans that were 30-days past due rose to the highest level since the recession of 2001. read more >>

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A ‘Perfect Storm’ in Massachusetts

2007-07-02T23:55:00.000-05:00

Foreclosure Filings Hit Record High in Massachusetts for Eighth Consecutive Month

From ForeclosuresMass.com: “The report shows that 2,136 foreclosures were initiated statewide during the month of May 2007, 32.34% higher than the number recorded in May 2006. Over the past 12 months, lenders initiated foreclosure proceedings against 23,638 homeowners, representing a 74.14% increase over the same period a year earlier. May 2007 posted high foreclosure numbers indicating that some homeowners continue to struggle making their mortgage payments.”

“‘May continues to be a record month for foreclosures affecting Massachusetts homeowners and the trends suggest that we may continue experiencing these historical numbers throughout 2007,’ said Jeremy Shapiro, president and co-founder of ForeclosuresMass.com. ‘The fact that the housing market has remained relatively flat means it’s still difficult for homeowners to refinance or sell their property contributing to the high number of foreclosures.’”

“ ForeclosuresMass.com attributed the increase to a ‘perfect storm’ of factors. The pressures put on property owners include rising interest rates over the past few years, an increase in sub-prime and other ‘exotic’ loans, the affect of adjustable rate mortgages, rising home heating costs, substantially increased gasoline prices, and the slumping Massachusetts housing market, which leaves homeowners trapped in houses they cannot afford.” read more >>

“Founded in 2003, ForeclosuresMass.com is the industry leader in providing online Massachusetts foreclosure data to investors, consumer homebuyers, bankruptcy and real estate counsel, mortgage originators, real estate agents and lenders.”

Be sure to check out BostonBubble.com for up-to-date news on the housing meltdown in Massachusetts .

Federal banking regulators set guidelines to limit subprime mortgage lending

2007-07-01T08:12:00.000-05:00

Federal banking regulators issued a final Statement on Subprime Mortgage Lending [PDF] on Friday, turning aside banking industry efforts to weaken them. The most important change is that financial institutions are advised that adjustable-rate mortgages should only be given to borrowers who qualify to meet the loan terms even after the rate resets higher.

“The statement describes the prudent safety and soundness and consumer protection standards that institutions should follow to ensure borrowers obtain loans they can afford to repay. These standards include a fully indexed, fully amortized qualification for borrowers and cautions on risk-layering features, including an expectation that stated income and reduced documentation should be accepted only if there are documented mitigating factors that clearly minimize the need for verification of a borrower’s repayment capacity. Consumer protection standards include clear and balanced product disclosures to customers and limits on prepayment penalties that allow for a reasonable period of time, typically at least 60 days, for customers to refinance prior to the expiration of the initial fixed interest rate period without penalty.” read more >>

The L.A. Times. “In a statement Friday, Federal Reserve Gov. Randall S. Kroszner said the guidelines were designed to ensure that borrowers could afford their mortgages after the low-cost period expired. "It's only good business sense for the lenders, and it's the right thing to do for the borrowers' sake,’ he said.”

“Members of Congress and consumer advocates have criticized U.S. bank regulators for lax oversight as problems emerged in the industry of marketing high-cost, sub-prime loans to borrowers with weak credit.”

“Nonetheless, lenders cautioned that regulatory overreaction would have a chilling effect that could make credit unavailable to deserving borrowers.”

“A representative of the mortgage-banking industry suggested Friday that regulators might have gone overboard with the latest standards. ‘This is a strong statement that will help curb abuses but will likely also constrain consumer credit choices,’ John M. Robbins, chairman of the Mortgage Bankers Assn., said in a statement.”

From Bloomberg: “‘We clearly have a profound problem,’ FDIC Chairman Sheila Bair said in an interview today. ‘It is going to get worse before it gets better, and decisive action was required,’ she added. ‘Everybody was asleep at the switch.’”

“The guidelines come too late to repair the growing crisis in subprime mortgages. The effort also didn't satisfy lawmakers, who want regulators to complement the guidelines with enforceable rules. While bank examiners can strong-arm banks with the recommendations, consumers can't file lawsuits based on them because they aren't laws.”

“Focus now turns to the Fed, which is reviewing whether there's a need to codify the standards. While central bank policy makers have preferred to rely on guidance and disclosures, Fed Governor Randall Kroszner said they will ‘seriously consider’ using its rule-making authority to prevent abuses.” read article >>

From the Housing Bubble Blog,
Will These New Standards Have Any Teeth?

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13,304 Homes Offered For Sale on Countrywide Financial's Website

2007-06-30T05:29:00.000-05:00

Total REO Asking Price: $2,395,057,581
(As of June 29, 2008)

Source: http://www.countrywide.com/purchase/f_reo.asp

Click on state below for detailed listings.

State	Count	Total Asking Price($)	Average Asking Price($)
AK	04	978,600	244,650
AL	122	13,888,699	113,842
AR	29	2,860,100	98,624
AZ	615	118,897,703	193,330
CA	3,331	831,035,880	249,485
CO	210	40,710,079	193,858
CT	143	24,309,199	169,994
DC	20	6,103,000	305,150
DE	19	3,061,100	161,111
FL	1,548	285,801,708	184,626
GA	631	74,487,894	118,047
HI	22	8,080,000	367,273
IA	42	4,382,288	104,340
ID	34	8,993,950	264,528
IL	515	79,615,743	154,594
IN	258	15,037,893	58,286
KS	36	4,519,400	125,539
KY	83	6,724,400	81,017
LA	32	2,662,800	83,213
MA	270	44,299,190	164,071
MD	251	68,399,198	272,507
ME	13	1,276,700	98,208
MI	1,069	87,788,503	82,122
MN	448	66,706,006	148,897
MO	211	19,354,923	91,729
MS	79	9,416,065	119,191
MT	07	1,529,300	218,471
NC	120	22,725,797	189,382
ND	03	314,700	104,900
NE	17	2,189,300	128,782
NH	66	12,738,899	193,014
NJ	162	38,416,784	237,141
NM	16	2,015,400	125,963
NV	462	97,989,890	212,099
NY	139	33,729,497	242,658
OH	414	23,333,198	56,360
OK	26	2,443,600	93,985
OR	73	17,437,700	238,873
PA	120	13,745,406	114,545
RI	83	14,520,800	174,949
SC	64	7,669,399	119,834
SD	05	472,600	94,520
TN	212	19,225,998	90,689
TX	441	63,707,250	144,461
UT	39	14,364,200	368,313
VA	585	140,286,633	239,806
WA	79	20,760,000	262,785
WI	94	10,135,410	107,824
WV	37	5,250,299	141,900
WY	05	664,500	132,900
Total	13,304	2,395,057,581	165,648

View more charts
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LSR: U.S. Faces Severe Credit Crunch

2007-06-26T05:34:00.000-05:00

The Telegraph Reports: “The United States faces a severe credit crunch as mounting losses on risky forms of debt catch up with the banks and force them to curb lending and call in existing loans, according to a report by Lombard Street Research.”

“The group said the fast-moving crisis at two Bear Stearns hedge funds had exposed the underlying rot in the US sub-prime mortgage market, and the vast nexus of collateralised debt obligations known as CDOs.”

“‘Excess liquidity in the global system will be slashed,’ it said. ‘Banks’ capital is about to be decimated, which will require calling in a swathe of loans. This is going to aggravate the US hard landing.”

“Charles Dumas, the group's global strategist, said the failed auction of assets seized from one of the Bear Stearns funds by Merrill Lynch had revealed the dark secret of the CDO debt market. The sale had to be called off after buyers took just $200m of the $850m mix.”

“Lombard Street said the Bear Stearns fiasco was the tip of the iceberg. The greatest risk lies in the ‘toxic tranches’ of lower grade securities held by the banks.”

“The worst of the US property crisis has yet to hit since there is an overhang of $2,000bn of mortgages with adjustable rates which have yet to be reset. Many borrowers could see payments jump by half, or even double.”

“At the same time, a spike in 10-year US bond yields by 0.65 percentage points over the last six weeks has drastically repriced the cost of fixed mortgages, knocking away a key prop for the US housing market.” read more >>

About LSR
Lombard Street Research was founded in 1989 by Tim Congdon CBE and quickly established its reputation as a leading provider of independent macroeconomic research. "Our consistent aim has been to provide accurate economic forecasts in order to improve the investment thinking and strategic decisions of financial institutions, banks and corporations worldwide."

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BIS: Years of loose monetary policy has fueled a dangerous credit bubble

2007-06-25T05:28:00.000-05:00

A report from the Telegraph. “The Bank for International Settlements, the world's most prestigious financial body, has warned that years of loose monetary policy has fueled a dangerous credit bubble, leaving the global economy more vulnerable to another 1930s-style slump than generally understood.”

“Virtually nobody foresaw the Great Depression of the 1930s, or the crises which affected Japan and Southeast Asia in the early and late 1990s. In fact, each downturn was preceded by a period of non-inflationary growth exuberant enough to lead many commentators to suggest that a 'new era' had arrived", said the bank.”

“In a thinly-veiled rebuke to the US Federal Reserve, the BIS said central banks were starting to doubt the wisdom of letting asset bubbles build up on the assumption that they could safely be ‘cleaned up’ afterwards - which was more or less the strategy pursued by former Fed chief Alan Greenspan after the dotcom bust.”

“It said this approach had failed in the US in 1930 and in Japan in 1991 because excess debt and investment build up in the boom years had suffocating effects.”

“The bank said it was far from clear whether the US would be able to shrug off the consequences of its latest imbalances, citing a current account deficit running at 6.5pc of GDP, a rise in US external liabilities by over $4 trillion from 2001 to 2005, and an unprecedented drop in the savings rate. ‘The dollar clearly remains vulnerable to a sudden loss of private sector confidence,’ it said.” read article >>

From Bloomberg: “Other risks facing banks include the potential for a ‘weakening in household spending,’ the report said. The possibility of a slump in real estate markets remains ‘a significant risk to financial stability,’ while the growth in securitization has spread ‘direct and indirect’ risk across the financial system, the BIS said.”

“‘Who now holds these risks, and can they manage them adequately?’ the report asked. ‘The honest answer is that we do not know.’”

“‘Hedge funds might be most exposed, since many have tended to specialize in purchases of the riskiest sorts of these instruments,’ the report said.”

“The BIS said it was unclear whether the collapse in U.S. subprime mortgages would spill over into other markets. Investors are increasingly concerned about how the decline will affect the values of collateralized debt obligations, securities that package other debt such as subprime loans, the bank said.”

“‘Exactly where in the CDO market the risks posed by subprime and Alt-A mortgages are concentrated is difficult to measure,’ the bank said...” read article >>

About BIS
The Bank for International Settlements (or BIS) is an international organization of central banks which exists to foster cooperation among central banks and other agencies in pursuit of monetary and financial stability. It carries out its work through subcommittees, the secretariats it hosts, and through its annual General Meeting of all members. The BIS also provides banking services, but only to central banks, or to international organizations like itself. Based in Basel, Switzerland, the BIS was established by the Hague agreement of 1930

BIS 77th Annual Report (24 June 2007)

240+ Homes Up For Auction In Northern California

2007-06-23T14:08:00.000-05:00

From News 10. “More than 240 homes repossessed by the lenders in the Central Valley and Bay Area will be sold in a three-day auction beginning Saturday in Sacramento.”

“At first glance, the foreclosure auction appears to be a bargain hunter’s dream. In some cases, the opening bid starts at well under half the price of the property’s recent market value.”

“For example, the starting bid for a one-year-old home at 10216 Shoech Way in Elk Grove is $279,000. Property records show the house sold new last year for $620,000.”

“Foreclosure specialist Alexis McGee says…the buyer must be careful. The excitement and competition at the event can drive the price beyond the fair market value, she said.”

“‘Create a maximum bid sheet for every property,’ McGee advises. ‘Walk when it goes over your top price. Do not get personally connected to any house. There is no reason to get caught up in a bidding frenzy.’”

“Buyers need a $5,000 cashier’s check to register, and properties can be financed with as little as 5 percent down. But some of the homes in poorer condition require a 30 percent down payment.” read more >>

From Ben's Blog: At What Point Will It Be Worth Looking At An Auction? for some great comments and opinions. There is also a video from channel 13 covering this story.

If you are considering buying a house at an auction, be sure to see this YouTube video on How Not To Bid.

REDC sold more than 265 properties in San Diego, Los Angeles and Riverside during two weekends in May, and is planning to hold another auction in Atlanta on July 7.

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Credit cards of higher importance over mortgages to subprime borrowers

2007-06-21T06:00:00.000-05:00

Experian Subprime Lending Study Shows Consumers Are More Likely to Pay Bankcard Debt Before Mortgage Debt

“According to the latest Experian study on the subprime lending market, subprime consumers -- those with an Experian credit score of 620 or lower -- are more likely to be 30 days or more late on their mortgage payments than on their unsecured bankcard obligations. As consumers have historically paid mortgage debt over bankcard debt, this finding represents a significant departure from conventional behavior.”

From Businessweek: “The significance? One explanation could be that many recent subprime homebuyers simply aren't that worried about losing their homes because they don't have much to lose. Most put down small or zero down payments. If prices have fallen since they bought, they may actually owe more than the house is worth, making it an easy choice to walk away.’”

“At the same time, keeping access to their credit cards has become more important than ever, says Stan Oliai, vice-president of decision sciences for Experian Decision Analytics. ‘People are using credit cards for everyday items like gasoline and groceries, and to tide themselves over from paycheck to paycheck,’ says Oliai.”

“According to Experian's research, prime borrowers have exhibited more conventional behavior than subprime ones, perhaps because they have more to lose from a home foreclosure and aren't quite as reliant on credit cards to get them through the month. Experian's study shows that they remain less likely to be late on their mortgages than on their credit cards.”

“Many subprime mortgage borrowers ‘don't have much skin in the game," says Douglas Duncan, chief economist of the Mortgage Bankers Assn. Subprime loans that originated in 2004 and 2005—which account for a big share of those now entering delinquency—involved extremely small down payments, Duncan says. ‘Some people said, 'Let's roll the dice and see if we can get a house. And if it doesn't stick, we've still got to have the credit card to keep going and we've got to have the car to get to work.’” read more >>

About Experian
Experian(R) is a global leader in providing analytical and information services to organizations and consumers to help manage the risk and reward of commercial and financial decisions.

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‘Substantial Discounts’ at Condo Auction—St. Petersburg, FL

2007-06-19T19:57:00.000-05:00

Fifty condos went up for auction this Saturday in St. Petersburg, Florida. Twenty were offered at absolute price (sold to highest bidder regardless of price). Out of the fifty that were being offered, twenty sold, and at 'substantial discounts'.

Tampa Bay Business Journal. “The Enclave at Sabal Point sold at least $1.7 million worth of inventory during the two-hour auction June 16 that attracted 39 registered bidders, some from as far away as Arizona and Canada.”

“The converted apartments, which included one- to three-bedroom units in five floor plans, sold for an average of $86,000 each. Their previous asking prices ranged between $95,000 and $190,000.”

“‘Most of the units were occupied so we had a number of investors seeking to buy them as income properties,’ Craig King, president of J.P. King Auction Co., stated in a release. A few Enclave residents bought their own units, he said.” read more >>

From J.P. King Auction Co.

“‘This was a good turnout in a market where condominium sales have been slow at all levels. Because these were entry-level condominiums, our target market was very different than it would be for new or renovated units. We succeeded in reducing the seller’s inventory by 20 units, and the auction marketing program has also led to negotiations that could lead to sales of quite a few more units in the very near future,’ said Craig King, president of J.P. King.”

“‘Most of the units were occupied, so we had a number of investors seeking to buy them as income properties. But we also had some individuals buying units for their own personal use,’ said King.”

Have these 'investors seeking income properties' read the latest post titled A Renter’s Paradise In Florida from Ben's Blog?
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Developer to auction off 40 condos on Sunday—Jersey City

2007-06-18T15:42:00.000-05:00

The Jersey Journal. “Traditionally, when developers have problems selling the last of their units and run out of rabbits to pull out of their hats, they turn to an auction to unload the properties quickly.”

“But now one Hoboken-based developer, Erik Kaiser, of REMI Companies, is flipping the script by holding an auction on the front end of sales, on June 24, at the Hyatt Regency in Jersey City, where he hopes to unload 40 units within several hours.”

“Is it a sign of a slump?”

“Are the units a tough sell in the one area of Hoboken that has yet to be touched by the real estate boom?”

“The answer appears to be no to both questions.”

“The project was met with "unexpected" delays that brought construction to a screeching halt for months, forcing the developer to rip up a number of pre-construction contracts and bringing pressure from the project's financier.”

“‘We wanted to have one year worth of marketing efforts wrapped up in one day,’ said Kaiser, adding that he expects to sell all 40 units at the auction.” read more >>

Auction Information:
The condos are open for inspection at 600 Jackson St., Hoboken.
The auction will be held at 1 p.m. next Sunday at the Hyatt Regency, 2 Exchange Place, Jersey City. Bidders must register before the auction and present a cashier's check or money order in the amount of $10,000, as part of the required 10 percent deposit.
For more information: 201-963-9010 or velocityhoboken.com
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Take your pick...50 condos to be auctioned off this Saturday in St. Petersburg, FL

2007-06-14T03:22:00.000-05:00

St. Petersburg, Florida

A report and video from Fox 13: “50 south St. Petersburg condos are on the block this Saturday, including 20 that will be sold at absolute auction.”

“‘It sells regardless of price,’ says J.P. King Auction Company spokesman Carl Carter.”

“‘No minimum bid, no reserve. The high bidder gets it,’ he said.”

“The number of condos for sale in Pinellas County has mushroomed from 1,450 in May of 2005 to more than 9,000 units last month. But prices are dropping: The average condo price was $200,000 in January and was $170,000 last month.”

From Auctioneer J.P. King:

Enclave at Sabal Pointe Condominiums
50 garden-style condominiums -- 20 selling absolute!

Take your pick of these 50 garden-style condominiums and buy one at your price. These units come in five different floor plans, but they all have a lot in common – the Enclave amenities, the beautiful courtyard, balconies/patios and more floor space than you’ll find in comparable condos.

• Clubhouse with flat-screen TV and bar
• Two pools
• Fitness center
• Playgrounds
• Picnic areas
• Lush tropical landscaping
• Pet-friendly

Ideally located, for work or play
• Only 15 minutes to downtown St. Petersburg offices via nearby Interstate 275
• Five minutes to St. Pete Beach, one of the nation’s most popular beaches, with Pinellas County’s longest undeveloped stretch of public beach
• 20 minutes to Tampa Airport

Any ideas on the possible outcome of this auction?
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RealtyTrac: Foreclosure filings in May—Up 90% percent

2007-06-12T19:02:00.000-05:00

May foreclosure numbers from RealtyTrac: Nevada secures the No.1 spot at an unbelievably high percentage of foreclosure filings: One filing for every 166 households. Second place goes to Colorado: One filing for every 290 households. Third and fourth places go to California and Florida, who lead the nation by number of foreclosure filings (CA: 39,659 , FL: 21,704).

From Bloomberg: “U.S. foreclosure filings surged 90 percent in May from a year earlier as more homeowners fell behind on their monthly mortgage payments, RealtyTrac Inc. said.”

“There were 176,137 notices of default, scheduled auctions and bank repossessions last month, led by California, Florida and Ohio, the Irvine, California-based seller of foreclosure data said in a report today. The median price for a U.S. home slid 1.8 percent the first three months of 2007 as the housing slump entered its second year, according to the National Association of Realtors. The filings rose 19 percent from April.”

“A jump in foreclosures at a time of year that traditionally is the busiest for home sales means the slide in prices probably isn't over, said James Saccacio, chief executive officer of RealtyTrac. Typically, more than half of all home sales occur in the April to June period, according to Freddie Mac, the No. 2 mortgage buyer.”

“‘Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year,’ Saccacio said in the report. That will add ‘to the downward pressure on home prices in many areas.’”

Full article can be found here.

I'm amazed at how the National Association of Realtors managed to call a bottom in the housing market just a few short weeks ago, “...but according to Yun, foreclosures, ‘will be a rather minor impact in terms of sales and home pricing.’”

A related video from CNBC featuring First Trust Advisors Chief Economist Brian Wesbury calling bottom and Professor Nouriel Roubini in disagreement. “‘I think the worst is behind us,’ Wesbury said. However, RGEMonitor.com chairman Nouriel Roubini thinks the worst is actually ahead of us.”

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Townhouses sold at 50% discount in Fort Myers, FL. - local area homeowners outraged.

2007-06-11T02:20:00.000-05:00

Fort Myers, Florida

Homebuilder Levitt and Sons auctioned off 50 townhouses in Fort Myers on Thursday night. Fisher Auction Co handled the red-hot bidding process selling homes at 50% less than what they sold for between 2003-2006. San Simeon-area homeowners who purchased similar townhouses at nearly double prices just a few years ago were outraged.

A report and video from Wink News: “The two and three bedroom townhouses in the San Simeon development, which is off of Winkler Avenue, were selling for prices we haven't seen in Southwest Florida in quite some time. And that was the whole point. Marketing reps with the developer, Levitt and Sons, say they're trying to quickly unload the fifty homes. Most of them were left over after people and investors backed out of deals when the housing market changed. Levitt and Son's Jama Shaw said, ‘This is our aggressive approach in moving onto our next phases and new floor plans.’”

“Greg Toher was outraged when he heard the prices some of the homes were going for. Walking out of the auction room, he told us, ‘$145,000! Unbelievable! We paid $300,000! They just got rid of at least four for $145,000!’ He says he closed on his three bedroom San Simeon townhome in December, ‘You've got to be kidding me, that's not fair.’”

“New buyers may be getting a steal, but current San Simeon homeowners, like Greg, tell WINK News they feel like they've been ripped off. Tara Gionpalo said, ‘I feel really mad, really sad, hurt.’”

“Victoria Toher said the developer went back on their word, ‘They promised us they were not going to go below market value.’ A Levitt and Sons representative told WINK News on Thursday night that the homes did go for fair market value...as determined by the hundreds of bidders at the auction.”

Full article can be found here.