A Polk in the Eye for Iowa Homeowners: Foreclosure Rises

The rate of housing foreclosure filings nationally jumped dramatically in February. According to Realty Trac

Foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 290,631 U.S. properties during the month, an increase of nearly 6 percent from the previous month and an increase of nearly 30 percent from February 2008. The report also shows one in every 440 U.S. housing units received a foreclosure filing in February.

With one in every 70 housing units receiving a foreclosure filing in February, Nevada continued to document the nation’s top state foreclosure rate. Foreclosure filings were reported on 15,783 Nevada properties during the month, a 9 percent increase from the previous month and a 156 percent increase from February 2008.

Arizona posted the third highest state total in February, with 18,119 properties receiving a foreclosure filing during the month — a 23 percent increase from the previous month and an 88 percent increase from February 2008.

Nevada, Illinois, Michigan, Ohio, Texas, Georgia and Virginia also reported foreclosure totals that were among the nation’s 10 highest.

In Iowa, things are not as bleak as the national picture, but in several key counties, things could be better. Polk County has the highest foreclosure rate where 1 in every 518 housing units is in foreclosure. Rounding out the top six are:

Scott - 1 in 1192
Pottawatamie - 1 in 1276
Harrison - 1 in 1391
Clinton - 1 in 1487
Linn - 1 in 1911

Johnson County is 9th on the list with 1 in 3644 homes in foreclosure.

Reid Sees Red on Housing Foreclosure Bill

With his state leading the nation for the percentage of houses in foreclosure, is it any wonder that Senate majority leader Harry Reid is talking tough about trying to win passage of a bill to curb rising home foreclosures by changing bankruptcy law.

U.S. Senate Majority Leader Harry Reid said on Wednesday he planned to ignore a threatened White House veto and attempt to pass the bill stating, "I have no expectation of reaching any agreement with the White House," said Reid a day after the administration warned the bill would need changes to get President George W. Bush's signature.

"I have tried for seven years" to reach agreements with Bush on a variety of issues, but have repeatedly failed, said Reid. "So we are going to do what we think is best for the country," Reid said. "If we get 67 votes (in the 100-member Senate to override a possible Bush veto), that's great."

The Senate must first overcome a probable Republican-induced hurdle that would take 60 votes to clear. "I think we are going to get more than 60 votes," said Reid, whose fellow Democrats control the Senate, 51-49.

What's the Legislature Doing About Foreclosures?

Iowa's foreclosure lawsuits echo a third quarter report from the Mortgage Bankers Association that shows Iowa has the 14th highest foreclosure rate in the nation. Iowa ranks seventh nationally in percentage of subprime loans in foreclosure.

While smoking bans and pop bottle bills are important, the number of lawsuits that seek to foreclose on homeowners is climbing across Iowa. Records show the lawsuits nearly doubling last year, to almost 10,000. In Iowa, foreclosure lawsuits usually begin the process of seizing homes and end with sheriff's sales if no other resolutions are found.

Surely there must be a legal remedy that can be applied to keep homeowners in their homes?

Buddy Can You Voluntarily Spare a Dime?

Not one to interfere with the free market, President Bush via Treasury Secretary Henry Paulson has come up with a scheme that looks good on paper, but rewards mortgage lenders for poor past behavior while leaving 2 million consumers at risk.

While lenders may voluntarily keep adjustable rates in place for 5 years, they do not have to convert them to fixed rate mortgages that would provide stability to the consumer in the long run. What this means is that the consumer's mortgage may not be raised (if the mortgage lender voluntarily agrees and the person have never missed a payment), but after 5 years their mortgages may balloon anyway.

From the AP

The Bush administration has come up with a plan to help strapped homeowners facing a daunting jump in their monthly mortgage payments.

The proposal, reached in negotiations led by Treasury Secretary Henry Paulson with the mortgage industry, would freeze introductory "teaser" rates on subprime mortgages, preventing them from resetting to higher rates for five years. White House deputy press secretary Tony Fratto said it would help "potentially a little more than a million" people who can afford payments with their introductory rates, but not if they jump to higher rates.

He said it was voluntary, and did not represent federal intrusion into the private market.
President Bush, who was to announce the agreement after a meeting with industry leaders at the White House on Thursday, has stressed that the deal is not a bailout because no government money is involved.

The effort is aimed at stemming a threatened wave of foreclosures in coming years as 2 million subprime mortgages _ loans provided to borrowers with spotty credit histories _ reset from their introductory rates of around 7 percent to 8 percent to levels as high as 11 percent, adding hundreds of dollars to the typical monthly payment.

The mortgage companies will offer to freeze the loans at the lower introductory rates as long as the borrowers did not miss any payments at the lower rate.

The program is the biggest effort yet to deal with a tidal wave of mortgage defaults, which have piled up billions of dollars in losses for big banks, hedge funds and other investors while roiling financial markets around the globe. The defaults are the latest economic blow from the worst housing slump in more than two decades. Some economists think the housing bust may become severe enough to push the country into recession.

Two Democratic presidential contenders, Hillary Rodham Clinton and John Edwards, complained Wednesday that, given the risks to the economy, Bush's proposal did not go far enough. They proposed their own plans that would not only freeze mortgage payment rates but also declare moratoriums on further foreclosures to add pressure on lenders to reach at-risk homeowners.

The financial services industry applauded the administration for negotiating a plan that will allow free-market forces to operate. The hope is that the five-year freeze will buy time for the housing industry to work down record levels of unsold homes and for sales and prices to start rising again.

A housing rebound would enable homeowners to refinance their current adjustable rate mortgages into fixed-rate loans with more affordable monthly payments.

More from the NY Times

Stunning Conclusion: Solution for Homelessness? Affordable Housing, Employment, Health Care

According to a new Gallup poll released by Fannie Mae (FNM/NYSE) today, more than nine in ten Americans (92%) believe more effort is needed across the nation to address the issue of homelessness, and nearly a third (28%) of Americans indicate they were at one point concerned that they may not have a place to live.

The survey also reveals that 48% of Americans indicate lack of affordable housing is a major cause contributing to homelessness, and 45% believe home foreclosures are a major factor. Also, nearly two-thirds (65%) of Americans believe job loss/unemployment is a major factor contributing to homelessness, while more than half (51%) think that the inability to pay medical expenses is a major contributor.

"It is clear from this poll that Americans are very concerned about homelessness and do not feel enough is being done to address this critical issue." said Stacey D. Stewart, Senior Vice President of the Office of Community and Charitable Giving at Fannie Mae. "There needs to be greater attention directed towards preventing and ending homelessness. Fannie Mae is committed to providing real solutions through permanent supportive housing and has invested more than $4 million in grant funding this year."

Other key findings include:

* A strong majority (58%) of Americans think the number of homeless people is increasing compared to ten years ago and only 6% of Americans believe the nation is doing a very good job in dealing this issue.
* 71% agree that many homeless people could get back on their feet and become self sufficient with proper housing.
* 44% of Americans indicate they have taken in a friend or relative who was facing homelessness had shelter not been provided.

"In our nation's capital, we know all too well the challenges that face our homeless neighbors and have been working hard to provide solutions," said District of Columbia Mayor Adrian M. Fenty. "We applaud Fannie Mae for raising awareness about the issue of homelessness and their commitment to helping solve the problem."

Through Gallup, Fannie Mae also polled people in the eight cities that partnered with the Fannie Mae Foundation to raise awareness and funds through the Foundation's 20th Annual Help the Homeless Walkathon on November 17. This year, the Fannie Mae Foundation's Help the Homeless Program has expanded to include Atlanta, Boston, Charlotte, Dallas, Denver, Los Angeles, Seattle, and Washington, D.C. Each of these cities has engaged organizations and civic leaders to help address the unique issues surrounding homelessness in their local communities.

Some key city specific findings include:

* 71% of Seattle respondents believe homelessness in the nation is increasing compared to ten years ago, the most in any of the seven cities.
* 50% of the respondents in the cities believe the inability to find affordable housing is a major factor people might be homeless.
* Over 75% of all the respondents in the cities agree that communities should construct more affordable housing to serve all its citizens.
* 70% of the respondents in Denver and 68% in Boston believe their community is doing at least a good job in addressing homeless issue.

"Homelessness is one of the major challenges facing our nation and we need to do all we can to support the solution of permanent housing," said Boston Mayor Thomas M. Menino. "I was pleased to see that Bostonians are personally committed to this cause as 84% of those polled in the city said they would be willing to make a donation to an organization working with homeless people. It is with community involvement, increased federal support, and committed organizations like Fannie Mae that we can make a difference in addressing the issue of homelessness."

The general population survey of 1002 adults was conducted from September 4 through October 17, 2007 with a margin of error of plus or minus three percentage points. The city specific survey of 3216 adults (approximately 400 in each metropolitan statistical area for each of 8 cities) was conducted from September 4 through October 17, 2007 with a margin of error of plus or minus five percentage points.

For more information including the full poll reports, please visit www.fanniemae.com.

Homeland Insecurity: Foreclosure Rate Continues Ascent

According to the AP

A soaring number of U.S. homeowners struggled to make mortgage payments in the third quarter, with properties in some stage of foreclosure more than doubling from the same time last year, a mortgage data company said Thursday.

A total of 446,726 homes nationwide were targeted by some sort of foreclosure activity from July to September, up 100.1 percent from 223,233 properties in the year-ago period, according to Irvine-based RealtyTrac Inc.

The current figure was 33.9 percent higher than the 333,731 properties in foreclosure in the second quarter of this year.

There was one foreclosure filing for every 196 households in the nation during the most recent quarter, RealtyTrac said.

This year in Iowa, according to the RealtyTrac website, 6,377 homes are currently in foreclosure.