Lender "Hijacks" House In Foreclosure Despite Court Order To The Contrary; Judge Orders BofA To Turn Over Keys To Homeowner & Pay Her Legal Fees
In Kissimmee, Florida, WFTV Channel 9 reports:
Eyewitness News found an Osceola County homeowner won her battle in court to save her home from foreclosure, but the bank wouldn't listen. Ana Chavez used to live on Killamanjaro Drive until the Bank of America changed her door locks in violation of a court ruling.
A judge told the bank that if Chavez does not get her keys by noon Thursday, he's is dismissing the foreclosure lawsuit and the bank will face more penalties. In the meantime, the bank couldn't explain why it took over a house it did not own.
Homeowner Ana Chavez is fighting to save her home from going into foreclosure. She is hoping to modify her loan and Chavez thought she was one step closer when a judge ruled in her favor last month. Bank of America asked the judge to set a foreclosure sale date on her Kissimmee home, but the judge denied the request. Despite the judge's ruling, the bank decided to take over Chavez's home. [...] Ana Chavez had been away from her home for a couple of days. When she came home she tried to get into her house, but all the locks had been changed. The bank hired a locksmith, changed the locks and refused to give Chavez access to her home. The bank's attorney even called the bank and said there was a mistake, but those calls were ignored too.
***
Attorney Adam Sudbury says he hopes the punishment sends a message to the banks. "These banks and these attorneys they steam roll over people like there is no tomorrow and unfortunately for them sometimes they run into a road block," said Sudbury. Judge James Stroker wasn't happy with the bank's actions and has now ordered Bank of America to turn over the keys to her within 24 hours, pay for Chavez's attorney's fees and the bank may also have to pay for her living expenses
Friday, June 26, 2009
LENDER SUES FOR JUDGEMENT
First Mortgage Lender Sues For Deficiency Judgment
As a general rule, mortgage lenders have not been pursuing deficiency judgments during the real estate recession. Second mortgage lenders have sued borrowers individually in cases. Until this week I have not spoken with any client who had been sued for a deficiency claim by a first mortgage lender after or as part of a foreclosure. I have spoke to many attorneys who defend mortgage foreclosures none of whom have reported seeing a deficiency claim by a first mortgage lender in any of the cases they are handling. This week, I saw my first deficiency judgment by a first mortgage lender. Whether this is an isolated incident by one bank in one real estate development, or an indication of changing bank policy and greater risk for mortgage borrowers is unclear.
The particular client retained me to file Chapter 7 bankruptcy because of large amounts of unsecured credit card debt. The mortgage deficiency was just one of his credit problems and was not the main problem behind the bankruptcy. The client had borrowed money to buy an investment lot in a Ginn community from Branch Banking and Trust ("BBT") secured by a first mortgage. There was no second mortgage. The lot was unimproved. BBT filed a Motion for Deficiency including a purported property value supported by a copy of an appraisal attached as an appendix to the complaint. The debtor did not respond to the Motion so BBT did not have to prove property value at an evidentiary hearing; the court entered a judgment based on the values alleged in the Motion.
Many of my clients over the past two or three years have been fearful of mortgage deficiency judgments because they had non-exempt assets with equity. These people believed that their relative wealth made them a target for a deficiency judgment. The BBT judgment does not support the theory that mortgage lenders will pick deficiency targets based on whom they believe own collectable assets. This particular debtor is insolvent; he has no non-exempt assets which makes bankruptcy the preferred solution to all his debt problems. This debtor was not targeted based on his net worth.
This case is significant because it shows that at least some lenders involved in some investment projects may pursue investors for individual liability. Whether mortgage lenders will begin pursuing mortgage deficiencies for loans made for primary residences, as opposed to investments, remains to be seen.
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida
As a general rule, mortgage lenders have not been pursuing deficiency judgments during the real estate recession. Second mortgage lenders have sued borrowers individually in cases. Until this week I have not spoken with any client who had been sued for a deficiency claim by a first mortgage lender after or as part of a foreclosure. I have spoke to many attorneys who defend mortgage foreclosures none of whom have reported seeing a deficiency claim by a first mortgage lender in any of the cases they are handling. This week, I saw my first deficiency judgment by a first mortgage lender. Whether this is an isolated incident by one bank in one real estate development, or an indication of changing bank policy and greater risk for mortgage borrowers is unclear.
The particular client retained me to file Chapter 7 bankruptcy because of large amounts of unsecured credit card debt. The mortgage deficiency was just one of his credit problems and was not the main problem behind the bankruptcy. The client had borrowed money to buy an investment lot in a Ginn community from Branch Banking and Trust ("BBT") secured by a first mortgage. There was no second mortgage. The lot was unimproved. BBT filed a Motion for Deficiency including a purported property value supported by a copy of an appraisal attached as an appendix to the complaint. The debtor did not respond to the Motion so BBT did not have to prove property value at an evidentiary hearing; the court entered a judgment based on the values alleged in the Motion.
Many of my clients over the past two or three years have been fearful of mortgage deficiency judgments because they had non-exempt assets with equity. These people believed that their relative wealth made them a target for a deficiency judgment. The BBT judgment does not support the theory that mortgage lenders will pick deficiency targets based on whom they believe own collectable assets. This particular debtor is insolvent; he has no non-exempt assets which makes bankruptcy the preferred solution to all his debt problems. This debtor was not targeted based on his net worth.
This case is significant because it shows that at least some lenders involved in some investment projects may pursue investors for individual liability. Whether mortgage lenders will begin pursuing mortgage deficiencies for loans made for primary residences, as opposed to investments, remains to be seen.
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida
NBA STAR ON FORECLOSURES
HOLLYWOOD, Fla. – June 26, 2008 – Frances Rodriguez, 66, who lost around $2,000 in a scam to renegotiate her mortgage, says she wishes she had known there was free help around to get her through the housing meltdown.
“You just grab for every straw, and I never knew there was something that was free,” said Rodriguez, who lives in Hollywood.
To make sure others don’t end up in Rodriguez’s shoes and to raise awareness of free foreclosure assistance, Miami Heat star Dwyane Wade and retired Heat luminary Alonzo Mourning put their celebrity to work Thursday, joining nonprofit and government organizations on a bus tour to raise awareness of free foreclosure assistance.
“It hurts my heart. I know it hurts everyone’s heart in here,” said Wade about the plight of homeowners facing the loss of their homes. “I’m here to help bring awareness to this and to let everyone know that there is an opportunity for them, and that there is hope.”
The bus tour highlighted the existence of nonprofits such as the HOPE NOW Alliance, sponsor of the event, that help homeowners facing foreclosure renegotiate the terms of their loans.
Rodriguez said after she was scammed she sought help from Neighborhood Housing Services of South Florida, which aided her in renegotiating the mortgage payments on her home in Broward County, even though she had fallen 24 months behind.
But many of the 250,000 people that Hope Now has reached out to have refused to respond, often out of embarrassment or mistrust, said Alliance Director Larry Gilmore.
“They’re not responding to mail. They’re not responding to telephone calls,” Gilmore said. “Our goal is to identify trusted advisors in the community [like Mourning and Wade] to encourage them to take action.”
Hit hard by the crash in housing prices and rising unemployment, the metropolitan area that includes Broward, Miami-Dade and Palm Beach counties had the 10th highest metropolitan foreclosure rate in the country last month, according to RealtyTrac, a private foreclosure tracking firm.
The rapid rise in foreclosures has gone hand in hand with a proliferation in loan scams.
Marietta Rodriguez, a director at the nonprofit NeighborWorks America, said schemes run the gamut from guarantees against foreclosure to criminals who pretend to own a property and steal deposits and months of rent from people looking for a place to live.
Warning signs, she said, include demands for payment upfront and absolute guarantees. “They morph everyday.” Rodriguez said. “They’re preying on people’s fears and vulnerabilities and making a buck off that ,” she said.
The Florida attorney general’s office had opened 50 investigations of suspicious loan modification or foreclosure rescue companies as of April 2009 and filed 12 lawsuits, six of those under a new law that took effect in October and aims to protect distressed homeowners. It is also developing a new complaint intake system and a consumer education initiative that warns consumers about the firms’ tactics.
Earlier this year, the office sued four South Florida-based companies, including Lincoln Lending Services, Keep Your Property, Outreach Housing, and Mortgage Crisis Solutions Association for allegedly bilking customers.
After a roundtable discussion Thursday, Mourning and Wade climbed on a bus that took them to the Opa-locka home of James Wilson, a 92-year-old veteran who nearly lost his house to foreclosure. He managed to hang on to it after his daughter, Flora Johnson, sought help from Neighborhood Housing Services of South Florida.
As neighbors gathered outside to catch a glimpse of the basketball stars, Johnson told them what had happened to her father, who is paralyzed and unable to speak.
Between illnesses and an adjustable rate mortgage that climbed steadily higher, Johnson said the family fell behind on payments.
“We both fell ill. In the meantime, the mortgage company gave me a threatening letter. I sent the money in, and I was short two dollars and they didn’t apply it to my account. They held it,” Johnson said. “When I sent the next money order, they took the whole thing [with] late fees and all of that.”
She sought help, and eventually found her way to Neighborhood Housing Services of South Florida.
While her neighbors clamored to have Mourning and Wade sign basketballs or jerseys, Johnson asked the athletes to sign the flier that led her to help at Neighborhood Housing Services.
“You just grab for every straw, and I never knew there was something that was free,” said Rodriguez, who lives in Hollywood.
To make sure others don’t end up in Rodriguez’s shoes and to raise awareness of free foreclosure assistance, Miami Heat star Dwyane Wade and retired Heat luminary Alonzo Mourning put their celebrity to work Thursday, joining nonprofit and government organizations on a bus tour to raise awareness of free foreclosure assistance.
“It hurts my heart. I know it hurts everyone’s heart in here,” said Wade about the plight of homeowners facing the loss of their homes. “I’m here to help bring awareness to this and to let everyone know that there is an opportunity for them, and that there is hope.”
The bus tour highlighted the existence of nonprofits such as the HOPE NOW Alliance, sponsor of the event, that help homeowners facing foreclosure renegotiate the terms of their loans.
Rodriguez said after she was scammed she sought help from Neighborhood Housing Services of South Florida, which aided her in renegotiating the mortgage payments on her home in Broward County, even though she had fallen 24 months behind.
But many of the 250,000 people that Hope Now has reached out to have refused to respond, often out of embarrassment or mistrust, said Alliance Director Larry Gilmore.
“They’re not responding to mail. They’re not responding to telephone calls,” Gilmore said. “Our goal is to identify trusted advisors in the community [like Mourning and Wade] to encourage them to take action.”
Hit hard by the crash in housing prices and rising unemployment, the metropolitan area that includes Broward, Miami-Dade and Palm Beach counties had the 10th highest metropolitan foreclosure rate in the country last month, according to RealtyTrac, a private foreclosure tracking firm.
The rapid rise in foreclosures has gone hand in hand with a proliferation in loan scams.
Marietta Rodriguez, a director at the nonprofit NeighborWorks America, said schemes run the gamut from guarantees against foreclosure to criminals who pretend to own a property and steal deposits and months of rent from people looking for a place to live.
Warning signs, she said, include demands for payment upfront and absolute guarantees. “They morph everyday.” Rodriguez said. “They’re preying on people’s fears and vulnerabilities and making a buck off that ,” she said.
The Florida attorney general’s office had opened 50 investigations of suspicious loan modification or foreclosure rescue companies as of April 2009 and filed 12 lawsuits, six of those under a new law that took effect in October and aims to protect distressed homeowners. It is also developing a new complaint intake system and a consumer education initiative that warns consumers about the firms’ tactics.
Earlier this year, the office sued four South Florida-based companies, including Lincoln Lending Services, Keep Your Property, Outreach Housing, and Mortgage Crisis Solutions Association for allegedly bilking customers.
After a roundtable discussion Thursday, Mourning and Wade climbed on a bus that took them to the Opa-locka home of James Wilson, a 92-year-old veteran who nearly lost his house to foreclosure. He managed to hang on to it after his daughter, Flora Johnson, sought help from Neighborhood Housing Services of South Florida.
As neighbors gathered outside to catch a glimpse of the basketball stars, Johnson told them what had happened to her father, who is paralyzed and unable to speak.
Between illnesses and an adjustable rate mortgage that climbed steadily higher, Johnson said the family fell behind on payments.
“We both fell ill. In the meantime, the mortgage company gave me a threatening letter. I sent the money in, and I was short two dollars and they didn’t apply it to my account. They held it,” Johnson said. “When I sent the next money order, they took the whole thing [with] late fees and all of that.”
She sought help, and eventually found her way to Neighborhood Housing Services of South Florida.
While her neighbors clamored to have Mourning and Wade sign basketballs or jerseys, Johnson asked the athletes to sign the flier that led her to help at Neighborhood Housing Services.
Saturday, June 6, 2009
Wednesday, June 3, 2009
Round two of the foreclosure fight..from Arizona to FLA
By LARRY LOCKHART, Dispatch News Editor June 02, 2009
Brace yourselves. A silver lining to the cloud of bad news surrounding the housing market may be just a mirage. Realtors and lenders are preparing for two more waves of foreclosed homes flooding the market within the next year.
Economists expect any recovery from the nation's economic downturn to be delayed until the foreclosures that helped spark the recession can be cleared out. And the folks at Fannie Mae and Freddie Mac, the federal mortgage agencies, are telling Realtors that we aren't done yet.
Recent reports show that in Casa Grande and western Pinal County, as in much of the state and nation, home sales are rising, but prices continue to fall. The number of foreclosed properties on the market now, and expected on the market soon, seems to be the driving force.
"We've been told [by Fannie Mae and Freddie Mac] that there are thousands and thousands of foreclosures in the pipeline," said Darrah Dremler, an agent with Coldwell Banker Excel Realty who specializes in foreclosure sales. "Banks are starting to price things a lot lower to clean out their inventory before this big rush hits."
Moratorium's effect
Dremler said people have overlooked the fact that lenders essentially had a moratorium on foreclosures the last several months. That allowed bargain-hunters to snap up some of the foreclosed properties on the market, reducing inventory and giving the impression that things were improving as sales numbers rose. But it also built a backlog of foreclosed properties about to inundate the market, and the apparent good news probably was fueled by worries over that next wave of foreclosures. Although sales rose, she said it's false hope given the number of foreclosures in the pipeline.
"What we're hearing is that it will be August, September when they would hit the market," Dremler said.
And that's just the first wave, she said. Another wave is likely by early next year.
"There were a lot of adjustable-rate mortgages sold," Dremler said of the period from 2003 to 2005. "They've hit the three years [before the interest rate could be raised]. They think it will start again when the five years [many ARMs had five-year terms] is up, and that starts this year. It takes about six to eight months of not being able to make payments before they get foreclosed on."
Programs' aid
Federal and state programs to stimulate sales are helping, but only to a point.
"They're definitely making it very enticing for people, it's just difficult to actually qualify for that loan," Dremler explained. "We see a lot of multiple offers, but we see a lot of fallout because buyers can't qualify."
The federal incentive is being offered as an $8,000 tax credit through the Federal Housing Administration under the Federal Recovery and Reinvestment Act. It's aimed at people who haven't owned a home in the last three years. The FHA program is really a tax-free loan, since it must be repaid eventually, and is the lesser of 10 percent of the home's purchase price or $8,000. A recent change allows it to be applied to the down payment through a bridge loan, rather than the homebuyer's having to wait months to receive the credit.
As many as half of all would-be first-time buyers do not have enough cash for a down payment and closing costs, according to building and real estate industry estimates. By advancing prospective buyers as much as $8,000 at closing, many more would be able to afford the purchase. Officials at the National Association of Home Builders say the bridge loan feature could double the total number of home purchases stimulated by the tax credit program to more than 300,000, depending on how many private lenders and state housing agencies participate.
Critics fear the down payment option will attract buyers who really can't afford the homes they are purchasing, prompting another wave of foreclosures later by repeating the process that caused the current problem.
The Arizona Department of Housing also offers help for first-time homebuyers through its Your Way Home AZ program, which provides 22 percent of the purchase price for select foreclosed homes. The assistance is in the form of a second mortgage loan with no interest, no monthly payment and the opportunity to be forgivable after a period of time. Factors for eligibility include median income, current debt-to-income ratio, using the home as a primary residence and attending a homebuyer education class.
Funding for the program is through more than $20 million made available by the U.S. Housing and Urban Development Neighborhood Stabilization Program to help stabilize the state's hardest-hit neighborhoods.
For more information on the state program, visit its Web site at http://yourwayhomeaz.com/index.html. The FHA site for the federal program is http://portal.hud.gov.
Construction slow
The market for new homes continues to lag, locally and nationally. Permits for new homes in Casa Grande are well behind year-ago levels, with only 73 permits for new homes issued during the first four months of this year. That compares to 206 in the same period last year.
Nationally, the Commerce Department said construction of homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units. That's the lowest pace on record going back a half-century. Applications for new building permits nationally dropped 3.3 percent to an annual rate of 494,000, also a record low.
Commercial building permits in Casa Grande also are well behind 2008 levels, with 28 permits through April 2009 for a total valuation of nearly $5.4 million. That compares with 66 commercial permits in the first four months of 2008 with a combined valuation of just over $21 million.
Total home sales in Casa Grande and other western Pinal County communities this April were close to April 2008 levels, according to figures from Melissa Data Corp., but prices were running well below year-ago levels. For example, 94 homes sold in the 85222 ZIP Code in Casa Grande this April, compared to 113 in April 2008, but the average price dropped from $166,000 last year to $116,000 this year.
First-quarter home sales figures compiled by Arizona State University's Realty Studies give the same mixed message for all of Pinal County for the first three months of this year compared to 2008: Sales of existing homes are nearly double the previous year, but foreclosed properties continue to make up nearly half of the sales and the median price has dropped precipitously since last year.
Of the 2,960 homes sold in the county in this year's first quarter, 1,260 were foreclosures. That compares with 1,680 sales in the first quarter of 2008, 785 of them foreclosures. The median price of homes sold in the first quarter of 2008 was $156,160, compared to $105,000 in the first quarter this year.
Nearly half of the homes sold in each Pinal County municipality in the first quarter of both years were foreclosures, though total sales roughly doubled over the last year. Prices declined in every city since last year, by thousands of dollars in most cases. Casa Grande's median selling price of an existing home fell from $146,000 to $111,900, the ASU figures showed, Arizona City from $114,500 to $65,450, Coolidge from $119,950 to $77,520, Eloy from $95,939 to $91,290, Florence from $141,660 to $80,000 and Maricopa from $170,000 to $113,250.
Currently, 2,692 homes are in the Multiple Listing Service in the Casa Grande, Maricopa, Stanfield, Arizona City, Eloy, Coolidge and Florence area. Of those, 797 are foreclosures and another 956 are short sales (pre-foreclosures). That means that homes that have been foreclosed, or will be in the next few months, make up 65 percent of the current listings in western Pinal County.
The supply of unsold existing homes nationally at the end of March fell 1.6 percent from a month earlier to 3.7 million, according to the National Association of Realtors, but still remained at elevated levels. With sales sluggish, it would take nearly 10 months to rid the market of those properties, compared with about 6.5 months in 2006, according to the Realtors' data. And that doesn't take into account the two waves of new foreclosures that are projected.
Still looking for a silver lining? It sounds as if we have to look further into the future, but there is hope.
"It will definitely be a cleansing of sorts," Dremler said of what the market is going through now. Not just in getting rid of a lot of bad loans, but also weeding out some lenders and others "who weren't doing the right thing."
©
Brace yourselves. A silver lining to the cloud of bad news surrounding the housing market may be just a mirage. Realtors and lenders are preparing for two more waves of foreclosed homes flooding the market within the next year.
Economists expect any recovery from the nation's economic downturn to be delayed until the foreclosures that helped spark the recession can be cleared out. And the folks at Fannie Mae and Freddie Mac, the federal mortgage agencies, are telling Realtors that we aren't done yet.
Recent reports show that in Casa Grande and western Pinal County, as in much of the state and nation, home sales are rising, but prices continue to fall. The number of foreclosed properties on the market now, and expected on the market soon, seems to be the driving force.
"We've been told [by Fannie Mae and Freddie Mac] that there are thousands and thousands of foreclosures in the pipeline," said Darrah Dremler, an agent with Coldwell Banker Excel Realty who specializes in foreclosure sales. "Banks are starting to price things a lot lower to clean out their inventory before this big rush hits."
Moratorium's effect
Dremler said people have overlooked the fact that lenders essentially had a moratorium on foreclosures the last several months. That allowed bargain-hunters to snap up some of the foreclosed properties on the market, reducing inventory and giving the impression that things were improving as sales numbers rose. But it also built a backlog of foreclosed properties about to inundate the market, and the apparent good news probably was fueled by worries over that next wave of foreclosures. Although sales rose, she said it's false hope given the number of foreclosures in the pipeline.
"What we're hearing is that it will be August, September when they would hit the market," Dremler said.
And that's just the first wave, she said. Another wave is likely by early next year.
"There were a lot of adjustable-rate mortgages sold," Dremler said of the period from 2003 to 2005. "They've hit the three years [before the interest rate could be raised]. They think it will start again when the five years [many ARMs had five-year terms] is up, and that starts this year. It takes about six to eight months of not being able to make payments before they get foreclosed on."
Programs' aid
Federal and state programs to stimulate sales are helping, but only to a point.
"They're definitely making it very enticing for people, it's just difficult to actually qualify for that loan," Dremler explained. "We see a lot of multiple offers, but we see a lot of fallout because buyers can't qualify."
The federal incentive is being offered as an $8,000 tax credit through the Federal Housing Administration under the Federal Recovery and Reinvestment Act. It's aimed at people who haven't owned a home in the last three years. The FHA program is really a tax-free loan, since it must be repaid eventually, and is the lesser of 10 percent of the home's purchase price or $8,000. A recent change allows it to be applied to the down payment through a bridge loan, rather than the homebuyer's having to wait months to receive the credit.
As many as half of all would-be first-time buyers do not have enough cash for a down payment and closing costs, according to building and real estate industry estimates. By advancing prospective buyers as much as $8,000 at closing, many more would be able to afford the purchase. Officials at the National Association of Home Builders say the bridge loan feature could double the total number of home purchases stimulated by the tax credit program to more than 300,000, depending on how many private lenders and state housing agencies participate.
Critics fear the down payment option will attract buyers who really can't afford the homes they are purchasing, prompting another wave of foreclosures later by repeating the process that caused the current problem.
The Arizona Department of Housing also offers help for first-time homebuyers through its Your Way Home AZ program, which provides 22 percent of the purchase price for select foreclosed homes. The assistance is in the form of a second mortgage loan with no interest, no monthly payment and the opportunity to be forgivable after a period of time. Factors for eligibility include median income, current debt-to-income ratio, using the home as a primary residence and attending a homebuyer education class.
Funding for the program is through more than $20 million made available by the U.S. Housing and Urban Development Neighborhood Stabilization Program to help stabilize the state's hardest-hit neighborhoods.
For more information on the state program, visit its Web site at http://yourwayhomeaz.com/index.html. The FHA site for the federal program is http://portal.hud.gov.
Construction slow
The market for new homes continues to lag, locally and nationally. Permits for new homes in Casa Grande are well behind year-ago levels, with only 73 permits for new homes issued during the first four months of this year. That compares to 206 in the same period last year.
Nationally, the Commerce Department said construction of homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units. That's the lowest pace on record going back a half-century. Applications for new building permits nationally dropped 3.3 percent to an annual rate of 494,000, also a record low.
Commercial building permits in Casa Grande also are well behind 2008 levels, with 28 permits through April 2009 for a total valuation of nearly $5.4 million. That compares with 66 commercial permits in the first four months of 2008 with a combined valuation of just over $21 million.
Total home sales in Casa Grande and other western Pinal County communities this April were close to April 2008 levels, according to figures from Melissa Data Corp., but prices were running well below year-ago levels. For example, 94 homes sold in the 85222 ZIP Code in Casa Grande this April, compared to 113 in April 2008, but the average price dropped from $166,000 last year to $116,000 this year.
First-quarter home sales figures compiled by Arizona State University's Realty Studies give the same mixed message for all of Pinal County for the first three months of this year compared to 2008: Sales of existing homes are nearly double the previous year, but foreclosed properties continue to make up nearly half of the sales and the median price has dropped precipitously since last year.
Of the 2,960 homes sold in the county in this year's first quarter, 1,260 were foreclosures. That compares with 1,680 sales in the first quarter of 2008, 785 of them foreclosures. The median price of homes sold in the first quarter of 2008 was $156,160, compared to $105,000 in the first quarter this year.
Nearly half of the homes sold in each Pinal County municipality in the first quarter of both years were foreclosures, though total sales roughly doubled over the last year. Prices declined in every city since last year, by thousands of dollars in most cases. Casa Grande's median selling price of an existing home fell from $146,000 to $111,900, the ASU figures showed, Arizona City from $114,500 to $65,450, Coolidge from $119,950 to $77,520, Eloy from $95,939 to $91,290, Florence from $141,660 to $80,000 and Maricopa from $170,000 to $113,250.
Currently, 2,692 homes are in the Multiple Listing Service in the Casa Grande, Maricopa, Stanfield, Arizona City, Eloy, Coolidge and Florence area. Of those, 797 are foreclosures and another 956 are short sales (pre-foreclosures). That means that homes that have been foreclosed, or will be in the next few months, make up 65 percent of the current listings in western Pinal County.
The supply of unsold existing homes nationally at the end of March fell 1.6 percent from a month earlier to 3.7 million, according to the National Association of Realtors, but still remained at elevated levels. With sales sluggish, it would take nearly 10 months to rid the market of those properties, compared with about 6.5 months in 2006, according to the Realtors' data. And that doesn't take into account the two waves of new foreclosures that are projected.
Still looking for a silver lining? It sounds as if we have to look further into the future, but there is hope.
"It will definitely be a cleansing of sorts," Dremler said of what the market is going through now. Not just in getting rid of a lot of bad loans, but also weeding out some lenders and others "who weren't doing the right thing."
©
Tuesday, April 21, 2009
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