Archive for November, 2009

Increasing Volume of Foreclosures In Pipeline

Monday, November 23rd, 2009

An additional seven million properties are headed for foreclosure, according to a study in September by Amherst Securities Group.

Mark Zandi, chief economist at Moody’s Economy.com, concurs with high estimates of potential foreclosures, anticipating 2.4 million homes in foreclosure in 2010, compared with 2 million in 2009.

Experts say the onslaught is the result of moratoriums lifting, banks overwhelmed by the demand for modifications, and the sheer volume of late payers. Banks also are trying to spread asset write-downs over several reporting periods to maintain a better profit picture.

Source: USA Today, Stephanie Armour (11/19/2009)

My take on this is that it is not surprizing that the volume of foreclosures is increasing.  What is still unknown is how large is the blockage in the pipeline.  The amound of completed foreclosures in our markets, being placed into the market for resale, has significantly decreased…while the notices of defaults reported continue to increase.  I believe that is what is truly being reported here..notices of default are the properties being reported.  In the new world order, a notice of default seems to be what starts the ball of options for a homeowner rolling.  The last thing any servicer wants to do today is complete a foreclosure and have to bring a home to market.  The only ones getting past the stage noted in this story are the ones where the borrower truly has given up.   JWW

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Another Vacant Home Registration Requirement As Local Government Increases Revenue Sources

Friday, November 6th, 2009


unincorporated areas of Hillsborough.jpgHillsborough County (Tampa) has joined 13 local governments in Florida that have a new foreclosed Property Registration Ordinance.  The Hillsborough ordinance became effective on Mon November 2.

The new ordinance requires lending institutions to register all vacant, abandoned and foreclosed properties with Hillsborough County Code Enforcement, and provide periodic inspections of the property. Additionally, the registrant must designate a local agent responsible for the security and maintenance of the property.  Each registration cost the lending company $100 per property. The ordinance applies only to properties in the unincorporated areas of Hillsborough County.   Follow this link to identify specific areas and zips included.  The image above is an aerial image of the county with the grey areas reflecting the unincorporated areas affected.

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Chinese Drywall-Where Do We Go From Here?

Monday, November 2nd, 2009

From News-Press.com

A state agency’s test results on the health effects of defective Chinese drywall differ with results of testing by a federal interagency task force.

The state department of health results do not suggest chemical compounds emitted by the drywall are harmful, state toxicologist David Krause said Thursday.

Results from federal testing are inconclusive.

The results from an interagency task force, led by the Consumer Product Safety Commission, backpedaled from making any connection between drywall and reported health and corrosion issues.

One by one Thursday, the CPSC, the Centers for Disease Control and Prevention, Department of Housing and Urban Development and the EPA shied away from conclusions.

“Although no connections have been made yet, we are working hard to look closer at this issue,” said Lori Saltzman, director of the division of health sciences at the commission.

The CPSC is working with the Department of Homeland Security to see if the drywall can be banned. There are “hundreds of thousands” of sheets now stockpiled in warehouses, Wolfson said.

But he admitted there is no law that forbids a builder from using it. Ports are being notified to watch for it, but there is no way to stop it from coming into the country.

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How disappointng for the many people who are suffering health affects like headaches and nose bleeds while living in their homes.  How difficult is this news for people who are looking for help with their corroded wiring after six months of living in their new home?  Or the replacement of an air conditioner condenser after the same period?
 
Senator Bill Nelson of Orlando is the only political advocate for homeowners I am hearing about getting involved.  Like me, he has visited these homes with the “defective drywall” and recognizes something is not right.  “Anybody that is sensitive to allergies like I am cannot live in a house like that.  Otherwise you get sick.”
 
Nelson is putting on the political pressure.  This is one case where government involvement is needed.  All private contractors, whether it is the builders or the insurance companies, are not about to admit any liability.  In addition, the banks left to foreclose on these properties are left with information like the above and no clear direction on what is supposed to be disclosed to possible home buyers.  The government is the place a solution can be crafted.  Isn’t this one of the real purposes of government?  To protect its constituents while crafting solutions that are financially sound?  Bringing all the different parties together to find a solution is what is needed instead of millions spent on continued testing.  OK..keep testing, but lets acknowledge a problem exists and get to work on a solution. 
 
Our lawsuit happy society is not going to allow any of the private players to make a significant first move.  Time for government leaders to step to the plate and bring these parties together by offering immunity to lawsuits in return for a solution signed off  on as acceptable by representatives of all stakeholders.
 
Not to mention this article states there is nothing stopping more of this drywall to be imported and used in homes.  Lets start with using some standards for drywall content and make sure no new homes are constructed with this defective material! 

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