Foreclosures may be making some people sick, according to recent research published by the National Bureau of Economic Research. In markets hit hard by foreclosures, such as, Arizona, California, Florida, and New Jersey, the number of reported visits to emergency rooms and doctor’s offices also has risen.
The study finds that an increase of 100 foreclosures corresponded to a 7.2% increase in reported cases of hypertension and an 8.2% increase in diabetes among people age 20 – 49. A rise of 100 foreclosures was associated with a 12% increase in doctor visits for anxiety and a 39% increase in visits for suicide attempts, though these figures still represent a small number of patients.
from CRS magazine Nov./Dec. 2011
There are many homes on the market today – which is ideal for people who are looking to buy. With more to choose from, there’s more opportunity to find a good deal.
Fixer-uppers can be found in most communities, even wealthier neighborhoods. Fixer-uppers can be a great deal for someone who doesn’t mind investing a little sweat equity; however, you want to be sure that the house you buy doesn’t have major issues, like structural problems, so a home inspection is essential.
You may want to look at homes that merely need some cosmetic work, like adding new appliances or a fresh coat of paint. In fact, in some instances sellers may offer an allowance to cover all or part of the repair as an incentive to buy.
Whether you are looking for a fixer-upper, new construction, or anything in between, when looking for a home, the best place to start is always with a trusted real estate professional.
Borrowers who consider walking away from their mortgages have yet another reason to think twice. Fannie Mae has implemented a new policy that penalizes borrowers who walk away even though they had the ability to pay, or who did not complete a workout arrangement. Such borrowers now will be ineligible to obtain a Fannie Mae-backed mortgage loan for seven years. However, borrowers who experience extenuating circumstances may be eligible for a new mortgage loan within two to three years, depending on the situation.
Fannie Mae is also considering legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. The company plans to instruct its servicers to monitor delinquent loans facing foreclosure and recommend cases that might warrant the pursuit of deficiency judgments.
Fannie Mae has launched a new website to help homeowners who are behind on their mortgage payments or are facing foreclosure.
Knowyouroptions.com features practical information and resources homeowners need to avoid foreclosure and either stay in their home or sell it. Resources include a list of local foreclosure prevention events, housing counselors, Fannie Mae resources, credit score information, forms, videos, calculators and more. The site also provides important tips for recognizing and avoiding foreclosure scams. For more information, visit www.knowyouroptions.com.
from CRS Member Connect on-line newsletter.
Facing the possibility of foreclosure, California homeowners may be hit with more than just losing their homes. Due to a loophole in state law, they also can be sued by their lender. To prevent this, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) is sponsoring Senate Bill 1178 by State Sen. Ellen Corbett (D-San Leandro), which will extend anti-deficiency protection for consumers who have refinanced their original mortgage loans and now are facing foreclosure.
KEEP THIS IN MIND
• Currently, if a homeowner defaults on a mortgage used to purchase his or her home — known as a “purchase money mortgage” — the homeowner’s liability on the mortgage is limited to the property itself. Unfortunately, the original law did not extend the purchase money protection to loans that refinance the original purchase debt, even if the refinance only was to obtain a lower interest rate.
• Californians who refinance a property currently do not have protection if they default on a mortgage greater than the property’s value. Called a “deficiency” liability, under current California law, the lender can sue the former homeowner for the amount of the deficiency even after taking back the property.
• Recent years of low interest rates and aggressive marketing campaigns by lenders have induced tens of thousands to refinance mortgages. Few homeowners realized that by refinancing their mortgage, they were forfeiting their protections and now are personally liable.
• C.A.R. created a video detailing Senate Bill 1178. The video can be viewed here.
from CAR’s Market Matters e-mail update.
Foreclosure filings, including default notices, scheduled auctions and bank repossessions, were reported on 315,716 U.S. properties during January, a 10 percent decrease from December but still 15 percent higher than January 2009, according to the latest RealtyTrac figures released today. One in every 409 U.S. homes received a foreclosure filing during the month.
REO activity fell 5 percent from the previous month, but was up 31 percent from a year ago. Default notices were down 12 percent in January, but were up 4 percent from January 2009, while scheduled auctions were down 11 percent for the month but were 15 percent higher than a year ago.
RealtyTrac’s CEO James J. Saccacio says the January foreclosure data is similar to a year ago, when a double-digit jump in foreclosure activity in December 2008 was followed by a 10 percent drop in January 2009. “If history repeats itself, we will see a surge in the numbers over the next few months as lenders foreclose on delinquent loans where neither the existing loan modification programs or the new short sale and deed-in-lieu of foreclosure alternatives works,” Saccacio says.
Nevada continues to lead the country in foreclosure activity with one in every 95 households receiving a foreclosure filing during January, more than four times the national average. Arizona was second with one in every 129 households receiving a foreclosure filing.
Las Vegas had the highest metro foreclosure rate in the country, with one in every 82 households receiving a foreclosure filing during the month, despite a decrease of 2 percent in foreclosure activity from the previous month and 21 percent drop in activity from a year ago. Phoenix was the only metro area among the top 10 to post a month-over-month increase (4 percent) in foreclosure activity.
Brian Ripp, CRS
info from; CRS connect e-mail update
Fannie Mae and Freddie Mac will suspend foreclosure evictions from December 19, 2009 through January 3, 2010. To help struggling families over the holidays, both owner-occupants and tenants living in properties foreclosed upon by Fannie Mae will not be evicted. Freddie Mac’s suspension of evictions will be limited to properties up to four units.
In a similar move, Citigroup Inc. will suspend foreclosure sales and evictions for 30 days through January 17, 2010 for loans it owns. Citigroup’s foreclosure moratorium, however, does not extend to loans it services on behalf of other investors. Given these developments, other lenders may follow suit, so check with the lender if appropriate.
Foreclosures may be making some people sick, according to recent research published by the National Bureau of Economic Research. In markets hit hard by foreclosures, such as, Arizona, California, Florida, and New Jersey, the number of reported visits to emergency rooms and doctor’s offices also has risen.
