- Home owners who paid less than $75,000 for their home were the most satisfied at 77 percent.
- Home owners who paid more than $800,000 were least satisfied at 69 percent.
- Buyers who purchased a home via short sale had the highest satisfaction rate at 83 percent, followed by foreclosed home buyers at 79 percent.
- New-home buyers had a satisfaction rate of 73 percent, and existing-home buyers had a satisfaction rate of 71 percent.
- Home owners ages 55-65 were the most satisfied at 76 percent. Home owners between 18 and 25 had the lowest satisfaction rate at 45 percent.
Many states have laws on the books that make it difficult for home owners to avoid foreclosure, says a new report by the National Consumer Law Center.
The center identifies these state laws as some of the most antiquated and unfavorable to home owners.
- Fast track foreclosure. In 30 states and the District of Columbia, mortgage holders who allege that home owners have fallen behind on the payments can bypass the courts and move directly to auction off homes. To defend against the action, home owners must get a judge to review the claims and stop foreclosure.
- No direct notification of foreclosure proceedings. In 33 states and the District of Columbia, there is no requirement that home owners be personally served with a foreclosure notice.
- No requirement to find solutions other than foreclosure. In every state but California and Connecticut, mortgage holders can move directly to foreclosure without discussing the issue and other potential solutions with the home owner.
- Eleventh-hour payments can be ignored. In 29 states, a mortgage holder has no legal obligation to stop foreclosure even if the home owner comes up with enough money to bring the mortgage current, including paying penalties and fees.
- Big penalties are legal. In every state but Massachusetts, New Jersey and Pennsylvania, a mortgage holder who claims a home owner has fallen behind in payments can immediately impose default fees and costs that reduce the chances that the homeowner can catch up by making the payments owed.
“The bottom line is that most state laws are not part of the foreclosure crisis solution today; they are a big part of the problem,” say John Rao, attorney and co-author of the report.
Source: National Consumer Law Center
Among the losers in the housing downturn are Target discount department stores.
Target sells twice as much home-related goods as Wal-Mart and its sales, as well as its stock price, have been feeling the pinch.
Since the housing bubble burst in 2007, sales of home-goods at Target declined more than 20 percent.
“The fact that [home goods] were such a strong core and magnet department certainly had a powerful impact on customers and investors alike,” says Chris Ohlinger of Service Industry Research Systems, Inc.
He believes that housing has now hit bottom and Target will begin to recover–a process, he says, that will take two years.
Source: BusinessWeek.com, Damian Joseph
“In what may the biggest sign yet that banks are getting serious about attacking the nationwide wave of home foreclosures, giant JPMorgan Chase (JPM) announced on Oct. 31 that it is sharply ramping up its efforts to restructure the loans in its massive mortgage portfolio. For the next 90 days, JPMorgan will not place any new homes into foreclosure. “
See this BusinessWeek article HERE
Daily Real Estate News | March 13, 2008
Foreclosures in February were down 4 percent from January, but the rate of foreclosures remain high year-over-year. The February rate was up 57 percent from February 2007.
“The year-over-year increase this February was significantly higher than the 19 percent year-over-year increase in February 2007, indicating we have still not reached the peak of foreclosure activity in this cycle,” says James J. Saccacio, CEO of RealtyTrac, which markets foreclosed properties.
The 10 states with the highest foreclosure rates were, in order, Nevada, California, Florida, Arizona, Colorado, Michigan, Ohio, Georgia, Indiana, and Tennessee.
The 10 states with the most foreclosures were, in order, California, Florida, Texas, Michigan, Ohio, Arizona, Illinois, Georgia, Colorado, and Nevada.
Source: RealtyTrac (03/13/2008)