As published on Thursday, December 08, 2011, the Daily Real Estate News reports that a bill seeking a one (1) year cap on pursuing Foreclosure deficiencies has been proposed by Congressman Ed Towns, introducing the “Fairness In Foreclosure Act”, H.R. 3566.

The Bill introduced in the U.S. House of Representatives on Tuesday, aims to limit and standardize the time frame that a mortgage company can go after a home owner following a foreclosure for a deficiency judgment. The bill seeks a one-year cap on any deficiency judgment, except in states that already have shorter time limits already in place. The bill also proposes that mortgage lenders not be allowed to go after “low-income” borrowers for a deficiency judgment.

“A deficiency judgment after foreclosure seems to be one of the greatest injustices that occur to home owners after they have gone through the arduous foreclosure process,” Rep. Edolphus “Ed” Towns, D-N.Y., said in a release. “Not only are they behind by thousands of dollars on their mortgage payments and facing public auction of their houses, the ordeal may continue indefinitely.”

Source: “House Bill Proposes 1-Year Limit on Foreclosure Deficiencies,” HousingWire (Dec. 7, 2011) and Daily Real Estate News “Bill Seeks 1-Year Cap on Foreclosure Deficiencies” (Dec, 7, 2011).

This actions applies only to foreclosed occupied single-family 1-4 unit residences with Fannie Mae & Freddie Mac owned mortgages. The temporary suspension will be effective December 19, 2011 through January 2, 2012. During this period however, other pre- or post-foreclosure processes, legal and other administrative proceedings for evictions may continue, but families living in foreclosed properties will be permitted to remain in the home.

Terry Edwards, Executive VP of Credit Portfolio Management, Fannie Mae stated:

“The holidays are meant for families to spend time together, especially if they’ve gone through the stress of financial challenges and foreclosure”. “No family should have to give up their home during this holiday season. Fannie Mae is committed to helping borrowers avoid foreclosure whenever possible and we encourage any homeowner who is having difficulty making their payment to reach out for help.”

Homeowners with Fannie Mae backed loans can call 1-800-7FANNIE or visit www.knowyouroptions.com for information and resources on foreclosure prevention options, including contact information for the Fannie Mae Mortgage Help Center. Homeowners with Freddie Mac backed loans can call the U.S. Department of Housing & Urban Development (HUD) at (800) 569-4287 or visit its web site www.hud.gov/ for a list of approved foreclosure-prevention counseling services in your area that you can visit in-person or talk to over the phone. Or, call the Homeowners HOPETM hotline at (888) 995-HOPE to reach trained housing counselors – available 24 hours a day, seven days a week – who can provide advice and help you develop a plan.

If you are 30, 60, 90-days late on you mortgage payments; received mortgage default notice from your lender; received notification of scheduled foreclosure date or sheriff sale; we can help consult with you at no expense to you, the many options you have in trying to retain your home, or selling your home below the existing market value, known as a “Short Sale”. MetroHomesMarket.com has helped many homeowners to resolve the pain and anxiety experience in dealing with the many uncertainties the come along with a personal crisis through no fault of their own.

Help me…I’m one of 4.5 million that got a letter saying ‘I may be qualified for a mortgage adjustment, for my underwater home.  They say; the bank may have taken advantage of me?

So what’s the deal?  The govt. has told the banks they need to send a letter to 4.5 million owners who may have been financially harmed in the “Robo” signing process.  They may be entitled to compensation as well.  Nice, ‘eh? The banks have begun sending the letters out.  NOW we’ll see some action!  (Not!)

The WSJ/11/2/2011, reported that the reviews cover 14 of the nation’s largest banks and are being overseen by the Office of the Comptroller of the Currency and the Federal Reserve.  Lenders have hired hundreds of employees to conduct the labor-intensive reviews, so says the journal. Sounds good so far…or does it?

This will, no doubt, be much like the original approach the banks had to take, as they didn’t have enough help to handle the enormity of the problem…hire hundreds to thousands of new employees, employees not trained to do what they had to do = big time slow down in the process + lots of errors and corrections = more lost time, etc.!

To qualify, the home owner has to have suffered “financial harm.” And…who’s to prove harm; the home owner, of course.  And…how many documents will have to cross hands?  And…how long will this take?  Another very expensive attempt by the Govt. to solve the problem, and hey…they’re trying, but the plan is not carefully thought out and organized.  Where will they get the new employees who will understand all this and who’ll be qualified to decide who suffered “financial harm?”

What it will do and do well, is slow down the entry of more foreclosure homes, harming the traditional sellers, as prices will continue to drop.  Oh boy?!

(Check out Martin Hutchinson’s, take on this one.  Google him up and read what he has to say.)

By  the way, this only covers people who bought before 3/’09.

Last month, new home bldg was down for the 4th straight month. And, 16 Trillion of home equity has been lost since ‘06.  With the unemployment problem, and many people living in fear that they’ll be the next to get their walking papers, where are the buyers?

If you can buy Real Estate now, you’d better get busy…find what you’re looking for and buy it.  Do you know, some sources are predicting the high side chance of a housing shortage, in the next 10 years?  If you buy now, and that does happen, you will have made a smart choice…your equity will really climb!

Another reason to buy; % rates have to go up. Even if they go down, say a half point, from 3.99% to 3.49%, that will only reduce a mtge payment by about 30 cents per thousand of mtge.  So, a 200k mtge could be $60 per month less, if you did wait and that did happen.  But…what if the rates go back to the 6% level by the time you buy?  You’d pay $1.23 more per thousand = $ 246 more per month, than at the 3.99% rate.  BUY NOW!

The other side of the coin, selling a home…if I wanted to sell, I’d get it on the market pronto, before a rate change is the next thing that slows sales down. If you don’t sell asap, you may have to wait it out for another five to ten years to get anywhere near the price you want.

An article I read said, Citi bank sent out 346 million credit card offers in the 3rd Q, this year.  Can you believe it?  The banks have all the answers?  Very weird, when over 55 banks were shut down by regulators this year…so far!

What’s your opinion on all this, how’s the economy working for you or your business these days…and…do you have any Real Estate stories you care to share with us?  Good or bad, we’d love to hear what you have to say.  Hit the “comments” below and let’s hear from you!

Ed

Contrary to many recent reports Minneapolis-St. Paul-Bloomington, MN has topped Builder’s list as one of the healthiest housing markets in the country. Many of the housing markets projected to have the biggest gains into 2012 tend to be the home to major universities or have strong private sector employment. Builder Magazine teamed up with Hanley Wood Market Intelligence to compile its annual list of the healthiest housing markets in the country, factoring in housing projections from Moody’s Economy.com. The list was based on projected improving employment picture, price appreciation, population growth, income growth, projected housing permits in 2011 and 2012.

1. Minneapolis-St. Paul-Bloomington Minn.-Wis.

2011 Building Permit Forecast: 4,511
2012 Building Permit Forecast: 10,118

Home prices here are expected to rise 8 percent next year, the highest growth projected in the 100 cities analyzed. As a hub for medical technology and headquarters for several large companies, employment is expected to grow 2.5 percent in 2012.

Source(s):
Builder Magazine (2011) “Healthiest Housing Markets: Mid-2011 Update,” (Builder Magazine (2011))

Daily Real Estate News, November 07, 2011 (http://realtormag.realtor.org/daily-news/2011/11/07/8-healthiest-housing-markets)

RealtyTrac.com, the leading authority on tracking and analyzing foreclosures, reports for September 2011, that Minnesota is experiencing its share of foreclosures with 24,129 foreclosed homes across the State.

When breaking down Minnesota foreclosures by County, the 973 foreclosures in Hennepin County, are more than six times that of Ramsey County, experiencing 156 foreclosures. The Counties within the Twin Cities, account for nearly 8% of all foreclosures in State.

Within Ramsey County, the ranking of the top communities experiencing double digit foreclosures include: Phalen & Daytons Bluff, Battle Creek, Central St. Paul, West Side, West 7th, White Bear Lake, New Brighton and Mounds View.

In comparing foreclosure percentage rate of St. Paul, Ramsey County and Minnesota to that of the Nation, each fall below the National rate of .17%; .09%, .07% and .11% respectively.

Within Hennepin County, the ranking of top communities experiencing double digit foreclosures include: Brooklyn Park, Jordon, Folwell, Powderhorn, Longfellow, Brooklyn Center, Lind-Bohanon, New Hope, Crystal and Richfield.

In comparing foreclosure percentage rate of Minneapolis and Hennepin County to that of the Nation, each are above the National rate of .17%; .20% and .19% respectively.