The new-home sales numbers for February came out…[yesterday], and they are horrible.
The government estimates that 19,000 new single-family homes were sold during the month. That is the lowest figure for any month since the figures began to be compiled in 1963. At a seasonally adjusted annual rate, that works out to an annual pace of 250,000. That, too, is the lowest ever.
By 2006, most of the steel mills in Youngstown, Ohio, had been gone for decades. The population was shrinking year after year. So the city launched a bold plan to redeem itself.
The plan: Quit trying to redeem itself….Youngstown walked away from the most fundamental assumption of economic development and city planning: The idea that a city needs to grow.
“We needed as a city to recognize that we’re a smaller city,” says Bill D’Avignon, head of Youngstown city planning. “We’re not going to grow; we’re never going to be the Youngstown we thought we were going to be.”
Christians in south Punjab Province are accusing senior district officials of supporting local Muslims who allegedly demolished 150 Christian graves and desecrated holy relics ”“ and are now threatening Christians seeking legal redress.
In the Kot Addu area of Muzaffargarh district, Waseem Shakir told Compass by telephone that an influential Muslim group last Nov. 6 took illegal possession of a 1,210-square yard piece of land designated as a Christian cemetery and set up shops on it. Official records state that the portion of land was allotted as a Christian cemetery, he said.
“Local Muslims demolished 150 Christians’ graves and desecrated the cross and biblical inscriptions on the graves in a bid to construct shops on the property,” said Shakir, a resident of Chak (Village) 518, Peer Jaggi Morr, Kot Addu. “Only five marlas [151.25 square yards] are all that is left for the Christians to bury their dead now.”
When the Diocese realigned in November 2008, a small minority of our members elected to leave their churches to worship elsewhere. The following April, the Diocese was sued on behalf of those people, and two years later we are still in the midst of what will be a precedent-setting case to defend our property under Texas law.
In the weeks since our last court hearing, on Feb. 8, our lawyers have been conferring and negotiating with the plaintiffs’ attorneys over the terms surrounding Judge John Chupp’s Jan. 21 ruling, which favored the plaintiffs. Since the Jan. 21 ruling did not dispose of the case, the parties are engaged in a process of “discovery” which permits them to obtain and examine one another’s records. Some of the documents requested by the plaintiffs previously have been delivered to them for inspection, and other documents currently are being prepared.
In addition, lawyers for the parishes and missions of the Episcopal Diocese of Fort Worth and lawyers representing the minority breakaway faction (affiliated with the Protestant Episcopal Church in the United States of America) are making arrangements for the inspection, requested by attorneys and representatives of the minority faction, of all our property, including the Diocesan Center, Camp Crucis, and all our churches. This inspection is being arranged pursuant to a Request for Entry Upon Property filed by the minority faction pursuant to Rule 196.7(a)(1) of the Texas Rules of Civil Procedure.
This rule provides that any party to a lawsuit may request and obtain entry upon the property of another party to the lawsuit “to inspect, measure, survey, photograph, test, or sample the property or any designated object or operation thereon.” The Rule is customarily and routinely invoked whenever there is litigation between competing parties with respect to which party has a right to title or possession of property. This is nothing to be alarmed about, though the other side is attempting to use it for propaganda purposes, to promote the impression that they have prevailed in the litigation, when, in fact, it is far from over.
Previous rulings by the Trial Court in the litigation pending in Tarrant County ”“ including the interlocutory Declaratory Judgment ”“ have no effect on the right of the minority faction to inspect the properties. According to Rule 197(a), the right of a party to inspect property in the possession of the other party exists until “the earlier of 30 days before the end of the discovery period or 30 days before trial.”
The motivation that underlies the minority faction’s decision to incur the thousands of dollars in expense for the inspection of the property in the Diocese is unknown to the attorneys and officers of the Diocese. Unfortunately, however, the Diocese will incur substantial expense, because the inspections by the minority faction must be supervised by the attorneys representing the Diocese and its parishes and missions.
Attorneys representing both sides of the dispute are attempting to schedule the inspections so as to minimize disruption of regularly scheduled activities and events sponsored by the Diocese and its parishes and missions.
Only 1 American in 7 has faith a lasting economic recovery has taken hold and a plurality say they are personally worse off than they were two years ago.
Almost half of the respondents in a Bloomberg National Poll conducted March 4-7 believe the U.S. is in a “fragile” rebound and could fall back into recession. More than a third of the country believes the U.S. never emerged from recession.
Sixty-three percent of Americans say the nation is on the wrong track, compared with 66 percent who said so in December, which was the lowest in the national mood in the one and a half years the Bloomberg poll has been conducted.
Moody’s downgraded its credit rating on Spain Thursday, citing worries over the cost of the banking sector’s restructuring and the government’s ability to achieve its borrowing reduction targets.
The agency said it was reducing its rating by one notch to Aa2 and warned that a further downgrade could be in the offing if there are indications that Spain’s fiscal targets will be missed and if the public debt ratio increases more rapidly than currently expected, or if the funding requirements for the so-called savings banks””the cajas””are greater than anticipated.
Though noting the government’s resolve in dealing with its problems and that Spain’s debt sustainability is not under threat, Moody’s said that “Spain’s substantial funding requirements””not only those of the sovereign, but also those of the regional governments and the banks””make the country susceptible to further episodes of funding stress.”
Please note the above title is from the print edition–KSH.
How might home buying change if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac?
The 30-year fixed-rate mortgage loan, the steady favorite of American borrowers since the 1950s, could become a luxury product, housing experts on both sides of the political aisle say.
Interest rates would rise for most borrowers, but urban and rural residents could see sharper increases than the coveted customers in the suburbs.
Read it all from the front page of yesterday’s New York Times.
Out of a possible 100% what percentage do you think it is?
Northern Rock is poised to launch a range of mortgages offering up to 90 per cent of a property’s value, marking the nationalised bank’s return to riskier lending three years after its collapse and government bail-out….
Northern Rock’s aggressive boom-time lending practices, including the Together mortgage that offered borrowers up to 125 per cent of their property value, caused one of the most high-profile failures of the financial crisis.
1. There’s still a glut of houses on the market.
At the current pace, it would take about seven months to sell all of the newly built houses on the market, and eight months to sell all of the existing homes on the market. In an ordinary market, it would take about six months to sell all of the homes on the market. This excess supply tends to push prices down.
2. Distressed sales account for a huge chunk of all home sales.
The average U.S. borrower in the throes of foreclosure hasn’t made a mortgage payment in 17 months, up from nearly 11 months two years ago ”” and the time frame may get even longer.
Banks and mortgage servicers, who collect payments for lenders, are taking more time to complete foreclosures because of huge volumes of defaulted mortgages. Other factors include time-consuming reviews for loan modifications and additional delays that followed revelations late last year about improperly filed foreclosure documents in tens of thousands of cases.
Last year, the number of days that the average borrower in foreclosure went without making a payment stretched from 410 in January to 507 in December, says LPS Applied Analytics, which tracks 37 million mortgages. Before the foreclosure crisis, the norm was more like 250 days, says Herb Blecher, LPS senior vice president.
Q: How do you characterize the economy right now?
A: The economy is getting stronger every day, and I would say it’s rather broad-based, and hopefully this will continue. That’s true globally. It’s good for America when the rest of the world grows, because you can sell more to the rest of the world. Large corporations are in very good shape, have plenty of capital and are starting to expand. But we also see the same thing from middle market-sized companies and small businesses. Our small-business lending is up 37% this year. Other banks are also seeing more loan demand in middle markets and small business.
Q: What about foreclosures in the pipeline? How do you see that playing out, and why hasn’t the housing market participated in this recovery?
A: The mortgage pain is just a terrible story. Too many mortgages were badly done. I’m not talking about us. But foreclosures haven’t quite peaked yet. We’re probably halfway or two-thirds through the problem….
Despite severe losses during the recession, the majority of African Americans see the economy improving and are confident that their financial prospects will improve soon.
That optimism, shared to a lesser degree by Hispanics, stands in stark contrast to the deeper pessimism expressed by a majority of whites. In general, whites are more satisfied with their personal financial situations but also more sour about the nation’s economic prospects.
Before the real estate bust, Rob Paxton and Susan Schneider might have met at a networking event or through their home-buyer clients. Instead, they first crossed paths at a day shelter for the homeless in Falls Church.
Schneider, once a mortgage broker with plenty of disposable income, arrived one cold winter morning with her possessions in tow, looking for a hot meal.
In the kitchen, Paxton stirred a bubbling pot on the stove. He once pulled in more than $200,000 a year in Northern Virginia, but he had taken the part-time job as the shelter’s director when his commissions dwindled to almost nothing….
Fannie and Freddie are failed experiments in social policy. Their government charters allowed them to borrow for less than other companies, which gave them easy money and easy profits. And their odd status as government-chartered entities that were also publicly traded corporations set them up to profit by putting taxpayers at risk.
The Treasury Department presented three options. The first would simply wind down Fannie and Freddie as the housing market recovers, leaving nothing in their place. The second would create a government agency that would lend during crises when private credit died up. The third would put government in the reinsurance business, selling policies that would guarantee mortgages in case a primary guarantor from the private sector foundered.
The down payments demanded by banks to buy homes have ballooned since the housing bust, forcing many people to rethink what they can afford and potentially shrinking the pool of eligible buyers.
Last week, the Obama administration called for gradually raising down payments to a minimum of 10% on conventional loans, meaning those that can be bought or guaranteed by mortgage giants Fannie Mae and Freddie Mac. And mortgage data show that private lenders are already pushing sharply higher the required down payments, mainly to mitigate their risk as home prices continue to fall.
The median down payment in nine major U.S. cities rose to 22% last year on properties purchased through conventional mortgages, according to an analysis for The Wall Street Journal by real-estate portal Zillow.com. That percentage doubled in three years and represents the highest median down payment since the data were first tracked in 1997.
Business is picking up for retailer Renee Charlton in this small manufacturing city on Lake Michigan, but that may not be a good omen for residents. She sells secondhand clothes.
Residents who waved flags as President Obama sped through their eastern Wisconsin community last month have been shopping at consignment and thrift shops out of necessity, says Charlton, owner of On Second Thought, which sells women’s clothes, purses, shoes and jewelry. Her sales rose 20% in 2010.
She’s glad to have the business but concerned that middle-class folks in Manitowoc have yet to recover from the worst recession in decades, despite Obama’s efforts during his first two years. Her 27-year-old son, a computer whiz, is a prime example: Unable to find full-time work, he has enrolled in a two-year criminal justice program at a nearby technical college.
“People are still cutting back,” Charlton says. “They’re still watching what they spend.”
Few believed the housing market here [in Seattle] would ever collapse. Now they wonder if it will ever stop slumping.
The rolling real estate crash that ravaged Florida and the Southwest is delivering a new wave of distress to communities once thought to be immune ”” economically diversified cities where the boom was relatively restrained.
In the last year, home prices in Seattle had a bigger decline than in Las Vegas. Minneapolis dropped more than Miami, and Atlanta fared worse than Phoenix.
The bubble markets, where builders, buyers and banks ran wild, began falling first, economists say, so they are close to the end of the cycle and in some cases on their way back up. Nearly everyone else still has another season of pain.
(Merced, California) Life has changed in ways big and small in this central California county, which is still trapped in the wreckage of a housing boom that went bust five years ago.
The median home price, $116,000, is down 68% from its peak in 2006. Three of five homeowners with a mortgage here owe more on their loans than their houses are worth, compared with about one in five nationally.
Socked by a sharp loss of property and sales tax revenue, Merced County and its cities have slashed budgets, workers and services. The grass is being mowed less often in city parks. A senior center is open fewer hours.
The problems with the FCIC’s report, released at the end of January, stem from the Commission’s very inception: it was focused on the wrong topic. The FCIC investigated risky investments, lax regulation, excessive leverage. And it downplayed the more mundane, but vastly more important, collapse of the housing bubble.
The FCIC was set up to investigate a sidebar rather than the real story. Given the definition of its mission, the Commission did a reasonably good job. However, its 662-page report is a distraction from the real reasons why 25 million Americans are unemployed, underemployed, or have given up looking for work altogether. The real story doesn’t require 662 pages; it can easily be summed up in a few paragraphs.
Almost 1 in 4 of Nevada’s foreclosures involved a decision to walk away from the mortgage even though the homeowners could pay, according to a new study.
The practice is called a strategic default, and it’s at the heart of the ongoing foreclosure crisis in Nevada ”” the state that leads the nation in the number of foreclosures.
Nationwide, the number of Americans who are losing their homes due to foreclosure also continues to mount.
More concerning than the home ownership rate is the vacancy rate. The Census tables don’t tell the entire story, but they tell a lot of it. Of the nearly 131 million housing units in this country, 112.5 million are occupied. 74.8 million are owned, and that’s only dropped by about 30 thousand in the past year. 38 million are rented, but that’s up by over a million year over year. That means more new households are choosing to rent.
Now to vacancies. There were 18.4 million vacant homes in the U.S. in Q4 ’10 (11 percent of all housing units vacant all year round), which is actually an improvement of 427,000 from a year ago, but not for the reasons you’d think….
Residential and commercial real-estate owners aren’t the only ones losing their properties to foreclosure. The past few years have seen a rapid acceleration in the number of churches losing their sanctuaries because they can’t pay the mortgage.
Just as homeowners borrowed too much or built too big during boom times, many churches did the same and now are struggling as their congregations shrink and collections fall owing to rising unemployment and a weak economy….
“Churches are the next wave in this economic crisis,” says Rev. Jesse L. Jackson Sr., president and founder of the Rainbow PUSH Coalition, a non-profit civil-rights group, who works with pastors around the country to help churches negotiate better terms with their bankers.
Richard S. Carnell, an associate professor at Fordham University Law School who was an assistant secretary of the Treasury for financial institutions during the 1990s, questions why Mr. Raines, Mr. Howard and others, given their conduct detailed in the Housing Enterprise Oversight report, are being held harmless by the government and receiving payment of legal bills as a result.
“Their duty of loyalty required them to put shareholders’ interests ahead of their own personal interests,” Mr. Carnell said. “Had they cared about the shareholders, they would not have staked Fannie’s reputation on dubious accounting. They defied their duty of loyalty and served themselves. At a moral level, they don’t deserve indemnification, much less payment of such princely sums.”
A large West End church will soon be home to a 24-unit apartment complex that will ensure its survival.
St. Matthew’s Anglican Church on Maryland Street, which can seat more than 1,000 people, measures Sunday service attendance in the dozens.
For years, its congregation has been praying to turn the church into a multi-use building that would include a housing component. It appears those prayers have been answered.
Co-op and condo owners will pay sharply higher property taxes next year, under a preliminary assessment roll released Friday by the Bloomberg administration. The city attributed the rises, due to take effect in July, to higher market values placed on apartment buildings by tax assessors.
Taxes collections are expected to rise by 7.5% for co-op owners, and 9.6% for condo owners across the city, according to a summary report released by the Department of Finance….
Stuart M. Saft, a real-estate lawyer and chairman of the Council of New York Cooperatives and Condominiums, said he “absolutely” attributed the significant increases to city budget pressures, and said city finance officials were looking for ways to maximize city revenues.
Not a single Canadian bank failed during the Great Depression, and not a single one failed during the recent U.S. crisis now dubbed the Great Recession. Fewer than 1 percent of all Canadian mortgages are in arrears.
That’s notable given that the recent U.S. economic turmoil was triggered by a meltdown in mortgage finance, forcing an unprecedented government rescue of Wall Street investment banks and the collapse of more than 300 smaller banks as the housing sector went bust.
How’d Canada avoid all that?
“This sounds very simple, but one of our CEOs has said we are in the business of making loans to people who will pay them back,” said Terry Campbell, vice president of policy for the Canadian Bankers Association in Ottawa.
As our economic conditions continue to deteriorate, mentally disturbed people like Jared Loughner are the first to breakdown and lose it, but there will inevitably be many to follow. This tragedy is not an isolated incident. In just the past few days there have been two more incidents. A lobbyist, who was the wife of a White House adviser, was found dead in a burning car. A man upset over his Social Security benefits threatened to set fire to Senator Michael Bennet’s office and shoot his staff. There have been dozens of similar incidents over the past two years. From John Bedell, the man who opened fire on the Pentagon, to Joe Stack, the man who had a tax dispute and flew his plan into the Austin, Texas IRS building, an increasing number of Americans are beginning to resort to violence as a last desperate act of vengeance.
We can dismiss and write off all of this as just crazy people doing crazy things and go back to living with our heads in the sand, business as usual, or we can begin the urgent task of fixing a society that is severely out of balance.
The choice is ours.
I will take comments on this submitted by email only to at KSHarmon[at]mindspring[dot]com.
A new type of property is adding to neighborhood blight: the bank walkaway.
Research to be released Thursday, the first of its kind locally, identifies 1,896 “red flag” homes in Chicago ”” most of them are in distressed African-American neighborhoods ”” that appear to have been abandoned by mortgage servicers during the foreclosure process, the Woodstock Institute found.
Abandoned foreclosures are increasing as mortgage investors determine that, at sale, they can’t recoup the costs of foreclosing, securing, maintaining and marketing a home, and they sometimes aren’t completing foreclosure actions. The property, by then usually vacant, becomes another eyesore in limbo along blocks where faded signs still announce block clubs.