The law recently signed by New York Governor David Paterson will strengthen the legal rights of homeowners in the state and will have some effect on the foreclosure condition of the area, housing market analysts have said. They added that the regulation might help lower the number of houses falling under foreclosed property auction listings in New York.
According to real estate experts, the law might help ease the problem caused by the expanding foreclosure listings in Bronx and in other key areas of New York. The regulation is said to be designed to provide a fairer ground for all parties involved in foreclosure cases.
The Access to Justice in Lending Act, analysts explain, provides homeowners with a legal right to recover lawyers' fees in lawsuits that involve New York home foreclosures. Analysts asserted that this law will put borrowers at an even footing with mortgage servicing firms.
They also added that the regulation comes at a good time since the issues of faulty foreclosure documentation and lender negligence have resulted in questions of whether borrowers' rights are being ignored in the foreclosure process. Proponents of the new law stated that this might help the state lower the levels of residences ending in foreclosed property auction listings.
Prior to the implementation of the law, lenders have the right to get back lawyer fees from the borrower if they were able to successfully bring or find home foreclosures actions against a borrower. Under the new regulation, homeowners or borrowers now also have similar rights. According to proponents of the regulation, this will make a lot of difference for troubled homeowners' causes.
They asserted that homeowners who have valid reasons to fight a foreclosure can now hire lawyers whose services they previously cannot afford. Supporters of the law also asserted that the law means that lenders will be forced to be more careful in processing foreclosures since most homeowners will now have the means to challenge them in courts.
Several nonprofit organizations in New York have supported the new regulation. They stated that this law will help lower the number of homes in foreclosed property auction listings since more homeowners will be encouraged to take their cases to court.
Analysts have stated that the continuous increase in the number of properties under bank foreclosure listings and list of Fannie Mae foreclosures is not only causing thousands of homeowners in Georgia to lose their properties, it is also affecting the banking industry.
Two rural banks in the state recently failed, taking the total number of bank failures in Georgia to 46 for 2008-2010. According to real estate market observers, the failure of the banks has a lot to do with the huge number of distressed properties in the region, including Decatur home foreclosures.
Both First National Bank and Gordon Bank, the two institutions that were recently taken over by other banks, have tie ups with real estate and are therefore affected by the crisis of Georgia home foreclosures. In 2010 alone, 16 banks have already been shut down in the state, with the year still not over.
First National was purchased by United Bank, while Gordon Bank was taken over by Morris Bank. List of Fannie Mae foreclosures and bank foreclosed listings continue to expand in the state and this factor has been largely blamed for the failure of local banks. According to industry observers, both Gordon and First National failed because they relied heavily on real estate.
Local reports reveal that around 75% of First National's loans are associated with real estate as of the end of June 2010. Over 30% of these property loans are past due or are tied up with properties under lists of foreclosures. It has been estimated that First National posted a loss of about $7 million in the first six months of the current year.
Meanwhile, over 40% of loans by Gordon Bank are reportedly either in default or in foreclosure. Morris Bank, which took over Gordon, will be acquiring over $11 million worth of assets that are mainly in the form of cash. The U.S. Federal Deposit Insurance Corp. (FDIC) is expected to lose around $9 million for Gordon's failure, while First National will cost FDIC over $33 million.
Since the growth of bank foreclosure listings and list of Fannie Mae foreclosures is showing no sign of a slow down, some industry observers in Georgia are predicting that more banks and other businesses that have real estate tie ups will end up failing in a few months time.
A few weeks ago, processing of certain residential foreclosures was put on hold as Bank of America implemented a moratorium on the sale of distressed homes under its books. Farm foreclosures and government foreclosed properties were not affected, but it seems that everything will resume as before in the real estate market of Wisconsin as the bank has announced that it has now decided to lift the suspension.
Residential properties facing foreclosures in the state, including Madison foreclosures, which are connected with the bank, will now continue to be processed, ending the brief respite given to the owners of these properties. Bank of America has announced that it has now lifted the moratorium on foreclosure sales in 23 U.S. states which include Wisconsin.
In an effort to somehow ease the problem, Bank of America and four other banks have promised to help in maintaining foreclosure homes in Wisconsin that have been left vacant and are currently boarded up and empty. The banks had pledged to work with the local group, Common Ground.
The state was hit hard by the foreclosure crisis, with distressed residential properties and farm foreclosures numbering by the thousands in most areas of Wisconsin. In Milwaukee alone, around 6,400 households are about to lose their homes to foreclosures. This has a detrimental effect on most neighborhoods in the city and the whole state.
This effect has prompted Common Ground to launch an initiative designed to encourage owners of foreclosed homes to exert efforts to maintain properties under their books. Bank of America, along with several other banks, have agreed to support the group's efforts and representatives from these companies have reportedly been sent to Milwaukee.
Aside from Common Ground and Bank of America, the Wisconsin Housing and Economic Development Authority also got involved in easing the effects of the foreclosure problem by helping troubled homeowners find alternative ways to foreclosures. The collaboration between state and private organizations and banks is being seen as a positive development by most residents of the state.
Although Wisconsin is still facing rising levels of foreclosures, including residential and farm foreclosures, local officials and advocacy groups are optimistic about the benefits that ongoing collaborations will provide to the area's housing market.
Aside from the huge supplies of foreclosed residential properties, like Freddie Mac foreclosures for sale, various areas of Pennsylvania is also facing worsening conditions in their commercial property sectors. Vacancies in office buildings and commercial centers are rising and values of structures are declining.
Foreclosure sales in Philadelphia are still weighing housing values down, but that is only part of the problem of the metro area's real estate market. Its office building market is faring even worse, with the downtown area recording a vacancy rate of 12.6% in the third quarter of the current year, according to figures released by Grubb and Ellis Co.
Just like bank foreclosures in Pennsylvania, the commercial real estate industry is getting worse mainly because of layoffs and business closures. The suburbs are getting hit the worst, with office buildings recording rising vacancy rates in the third quarter. As of the end of September, the overall vacancy rate in the suburbs of the state is pegged at 18.4%.
Along with huge supplies of bank and Freddie Mac foreclosures for sale, metros in Pennsylvania are also facing poor commercial property market condition mainly due to the continuous rise in the number of the unemployed. People who have lost their jobs and those who are expecting to be laid off are staying away from shopping centers and retail stores, prompting retailers to leave the area which consequently results in higher vacancy rates in commercial spaces.
The situation is the same in the multifamily commercial real estate market which includes condominiums and apartments, with these commercial residential units also suffering from vacancies. According to local market observers, aside from unemployment, apartments and condos are also losing out to cheaper real estate foreclosure properties for sale.
According to them, if it is a choice between renting or buying a regular apartment or purchasing foreclosed multifamily units, buyers will definitely go for the latter just because they can hardly afford the former. Vacancy rate for multifamily structures in the state is at 8%.
The negative impact of the high number of bank and Freddie Mac foreclosures for sale is expected to continue in most areas of Pennsylvania. For now though, it is the commercial property market that is getting the worst of it.
Housing statistics for the period January-September 2010 showed that St. Tammany Parish has the highest number of properties under foreclosure listings and pre foreclosure home listings in the whole state of Louisiana. The parish, which in the past has had the highest average household earning in the state, is now being hit by the housing market crisis.
According to nine-month housing market statistics, one household per 405 properties are in some phase of foreclosure in the area. This is higher than New Orleans home foreclosures which have previously recorded some of the highest distressed property totals. Analysts have reported that St. Tammany started having foreclosure problems in 2007, but it was not until 2010 that it made it to the top of the foreclosure rankings.
Despite the parish's climb to the top of Louisiana's ranking, overall housing situation in the state is still relatively good. Home foreclosures in Louisiana are still lower than most states, with the region ranking 35th nationwide in terms of foreclosure rates for the 2010 third quarter.
The growth of foreclosed property listings and pre foreclosure home listings in St. Tammany has been attributed by most economists to the huge number of Katrina victims who moved to the area after their homes were destroyed by the hurricane. After the disaster, south state residents moved in droves to the north, with St. Tammany being one of their favored destinations.
Along with the growing supplies of distressed homes, the parish also experienced rapid declines in home values, making the area a haven for people looking for cheap home foreclosure listings. Average prices of residential properties in the eastern ares of St. Tammany have declined to as low as a little over $150,000, while the western side of the parish recorded an average home price of over $220,000.
These price ranges are definitely lower than the prices of three years ago, when Katrina victims started moving to the parish. Eastern St. Tammany home prices during the early 2007 averaged $200,000, while western area homes were sold for over $300,000. The increase in the number of properties under foreclosure and pre foreclosure home listings has been attributed by analysts to home buyers who transferred to the area after Katrina and who are now unable to meet their monthly mortgage obligations.
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