Large Percentage of Houses in San Diego Underwater…

Trying to catch up on the information out there.  Here is the SD UT article about San Diego’s situation:

On Aug. 5, Deutsche Bank raised eyebrows across the country when it said 48 percent of all Americans holding mortgages — 25 million households — could be underwater by early 2011. The San Diego metro area was projected to hit the 51 percent underwater mark.

But First American CoreLogic said last week that the problem is improving, not worsening, nationally. The proportion of properties likely to be underwater dropped from 32.5 percent in March to 32.2 percent in June.

The San Diego-area figure was placed at 42.6 percent, 39th-highest among 207 metro areas studied and 12th among the 51 areas in the study with population over 1 million people.

The company estimated the aggregate value of underwater homes in the San Diego area at $91.8 billion. Los Angeles ranked first with more than $310 billion in underwater home values.

Negative Home Equity

Click here for the story

Brace for a Wave of Foreclosures, the Dam is About to Break

32-37% Of All Mortgage Holders Are Stuck, Unable To Sell

“ California has $2.4 trillion in mortgages debt. 42.0% of the properties have negative equity. Think Wells Fargo (WFC) sitting on its massive share of California pay-option-arms is “Well Capitalized”? If so, think again.

Now take a look at that last line again. Nationwide there is $10.1 trillion in mortgage debt. 32.2% of the properties have negative equity, another 5.4% are nearly underwater. Counting real estate commissions of 5% or so, 37.6% are effectively underwater right now.

Unless those people bring equity to the table at closing, those mortgage holders are stuck in their houses, unable to sell.

And the situation is about to get worse. It will only take a small drop in the Case-Shiller home price index to put a whopping 50% of mortgage holders underwater, stuck in their houses, unable to sell.”

Read more here: http://globaleconomicanalysis.blogspot.com/2009/08/brace-for-wave-of-foreclosures-dam-is.html

Homeowners 4 Hope 1st Press Release

Homeowners 4 Hope Foundation has been formed to Combat Bank’s lack of Commitment to Loan Modifications

Two Years into the Foreclosure Crisis only 9% of Effected Homeowners have been helped.  Banks have been given $120 Billion in relief and little has benefited the homeowner in crisis.  Homeowners need to organize for their benefit.  First Rally will be August 14^th at 11am in front of Chase Bank (101 W. Broadway, Suite 100 San Diego, CA 92101)

San Diego, CA  - August 12^th, 2009 – The Obama administration on last week released what it said will be a monthly report card on efforts to keep Americans from losing their homes to foreclosure. What it shows is that things are off to a slow start.  Under the administration’s Making Home Affordable loan modification program, just 9 percent of borrowers, or 230,000 trial modifications, have begun out of the 400,000 loan modification offers that have been extended.  The administration is far, far off from its goal of helping 7+ million families avoid foreclosure and banks are finding that it is better to foreclose than extend the trial loan modifications.  It is time for individuals to organize and bring collective pressure on Banks and our government.

Homeowners for Hope Foundation was formed last month by Dave Van Waldick, Dave Callender and Troy Huerta, to voice the frustrations, anger, and fear of the millions of Americans in foreclosure at risk of losing they homes in the next 6-12 months, while the big 4 banks (Band of America, Wells Fargo, Chase, and Citi) do nothing meaningful to modify loans or stop foreclosures.

Dave Callender, homeowner said, “We are gathering under our First Amendment Rights next Friday morning at 11:00, down town San Diego on Broadway to organize and protest in support of homeowners. We are expecting between 20-100 people. “

“We are tired of the stalling, stupidity, intimidation nasty calls and posting notices on our doors, and throwing families out of their homes. We are fed up with the arrogance of the major banks who we have given $120 BILLION to, and the sheer ineptness of government to force them to act swiftly and with a community mindset. “ says Dave Van Waldick, homeowner and 25 year Mortgage and Real Estate industry professional.  “Our goals are simple: Create enough public awareness and media attention to get the major banks and state and federal government to sit up and take notice of our frustrations.

Homeowners 4 Hope Foundation has two simple goals:

1. Bank and the government should create immediate procedures that to stop foreclosures, and provide meaningful homeowner Loan Modifications in a reasonable time frame like 90 days or less. (See our web site at www.homeowners4hope.org )
2. Restore homeowners mortgage related credit to zero lates and re-run credit scores immediately to improve their ability to get normal credit or buy a home.

Troy Huerta, Real Estate Consultant said, “ I have become an expert in Short Sales, but a stable, healthy real estate market is in the best interest for all.  I will be happy when I am not helping a single homeowner avoid foreclosure with a negotiated Short Sale.”

Homeowners 4 Hope Foundation and its website (homeowners4hope.org ) has been formed to bring a voice to all homeowners who are seeking support for their Loan Modification efforts.  Our goal is for us to ally, organize, and pressure banks to provide the Loan Modification relief that they have committed to by receiving Federal Funding during this difficult times.

Contact info:

Dave Van Waldick

701 Palomar Airport Road
Suite 300
Carlsbad, CA 92011

Phone: 888.930.4223
Email : info@homeowners4hope.org
Website: http://homeowners4hope.org
Twitter: http://twitter.com/homeowners4hope

Do you have to Sue to move Forward with Loan Modifications?

It was busy yesterday at the Boston Globe.  It seems that the only way to get the attention of Banks is to sue them.  Let us hope we don’t have to go to this extent.

The suits are being watched locally and nationally because, if successful, they would provide strength to advocates and litigators struggling to make lenders accountable for “toxic’’ mortgage loans that have pushed millions of Americans into foreclosure.

Guy Cecala, publisher of the Maryland-based industry newsletter Inside Mortgage Finance, said a growing number of lawsuits against lenders are like those filed by smokers who claimed cigarette companies knew their products were cancerous.

Click here for the Article

New wave of defaults on horizon, experts say

“Four years after the housing downturn began, prices in San Diego County and much of the rest of the country are beginning to inch up again. And, locally, at least, there are fewer foreclosures than there were last year.

So are we finally hitting bottom in the housing market? Don’t bet on it. So far, the nation’s banks, which have been given billions of dollars over the past year under the idea that they’ll use the money to help stabilize the economy, still seem to be reluctant to modify the terms of the loans they’ve made.

A report last week by the Government Accountability Office showed that the nation may be little more than halfway through the foreclosures emanating from the housing bubble.  And now, real estate experts say, we’re about to be hit with another wave of foreclosures, because many homeowners who have been laid off or furloughed during the recession can no longer pay their bills.

“There will be absolutely no shortage of foreclosures going forward,” said Bruce Norris, head of the Norris Group, a real estate investment firm in Riverside.  As of March 31, the GAO says, 1.6 million of the homes that were purchased with risky subprime or Alt-A loans between 2000 and 2007 have been foreclosed upon.

About 1 million more of those mortgages are either “seriously delinquent,” meaning more than 90 days past due, or already in the foreclosure process. An additional 4 million or so have not yet been refinanced or paid off.

“As a result, hundreds of thousands of additional nonprime borrowers are at risk of losing their homes in the near future,” the report warned.  And that doesn’t take into account the foreclosures that will likely take place as a result of layoffs and furloughs.”

Read more: http://www3.signonsandiego.com/stories/2009/aug/02/1b2dean212044-new-wave-defaults-horizon-experts-sa/

A Picture says a 1,000 words – More on Sad State of Loan Modifications

Today’s Boston Globe had the best graph of the success of major banks efforts to move forward with Loan Modifications.. And the sh

In March, the government launched the $50 billion program to help up to 4 million financially troubled borrowers, those who can’t afford to pay their mortgages because their interest rates spiked or they have lost income. The Treasury’s report card analyzed eligible loans that were delinquent for at least 60 days. It showed that only 235,247 of those borrowers, or 9 percent of the total, have been given a three-month trial modification, which becomes permanent if the borrower pays on time.

Click here for the full article

Federal Reserve Recommends Consumers Contact an Attorney to Resolve Contract Disputes With Banks

“The Federal Reserve, on its Website, says that although it does regulate banks, and will look into every complaint it receives from consumers regarding the banks it regulates, it does not have the authority to resolve every type of problem.

Disputes over contracts, undocumented factual disputes between a consumer and a bank, matters that are the subject of a pending law suit, complaints about customer service, or disagreements over a specific bank policy or procedure not addressed by federal law or regulation… as examples, are all outside the Fed’s authority as far as obtaining a resolution is concerned.

In those instances, where the Fed’s authority does not allow it to resolve matters, the Federal Reserve recommends that consumers contact an attorney.”
Read more:  http://mandelman.ml-implode.com/2009/08/federal-reserve-recommends-consumers-contact-an-attorney-to-resolve-contract-disputes-with-banks/

Foreclosure wave gathers momentum

August 6th, 2009, 2:00 am · 108 Comments · posted by Mathew Padilla

“There is no second foreclosure wave coming, says Sam Khater, senior economist, First American CoreLogic.

“To say there is a second wave implies the (current) wave has receded,” Khater told me. “I don’t see that the wave has receded.”

Khater shared his historical data of 90-day delinquency rates for Orange County, as well as the foreclosure-in-process rates and rates of REOs, or foreclosures on banks’ books. The 90-day rate includes all outstanding first mortgages at least three months late but not yet foreclosed. The foreclosure rate is just first mortgages with a notice of default or trustee’s sale filing. (Previously the person who distributes the report for First American told me the two rates did not overlap, but Khater, who compiles the data, said they do.)

If you look at the 90-day rate it has been heading straight up — it has not receded.”

Read more: http://mortgage.freedomblogging.com/2009/08/06/foreclosure-wave-gets-bigger/15037/

Suits Filed Against Sleazy Servicers – Treasury Knew

“AP News reported today that mortgage servicers, the same mortgage servicers that have received and continue to receive hundreds of millions in federal funds to modify mortgages as part of President Obama’s Making Home Affordable program, are engaging in practices that would make the worst loan modification company in history look like the Boy Scouts of America.

According to the AP’s report, which came out today:

• At least 30 servicers are being sued for charging illegally high fees, using illegal collection practices, and foreclosing on homes prematurely.
• At least 14 have been accused lying to homeowners about whether they would qualify for loan modifications or how low their payments would be if they did receive a modification.  And in many cases, the servicers are accused of telling borrowers not to make payments because their applications for modification were being reviewed… and then moving to foreclosure anyway. ”

  Read more: http://mandelman.ml-implode.com/2009/08/suits-filed-against-sleazy-servicers-treasury-knew/

The Progress on Loan Modifications Isn’t Quite What It Seems

“The Treasury Department’s report on the progress — or lack of it — among servicers doing loan modifications makes it seem like the Obama administration is keeping a close eye on its Making Home Affordable Program. But Felix Salmon at Reuters takes a second look at Treasury report, and raises some important questions. Salmon notes that the purpose of the report is “to document the number of struggling homeowners already helped under the program, provide information on servicer performance and expand transparency around the initiative.” Treasury officials told The Wall Street Journal they were encouraged by the program’s early results, even though only about 9 percent of eligible borrowers have received trial loan modifications so far.

The bigger problem, Salmon writes, is that the Treasury’s report “seems to have more spin than transparency.” How so? Well, the graph accompanying the report refers to “cumulative” progress made on loan modifications.”

Read more: http://washingtonindependent.com/53808/the-progress-on-loan-modifications-isnt-quite-what-it-seems