The Exchange Commission and Security filed fraud charges against the promoters of a real estate investment scheme that operated a fraudulent foreclosure reinstatement scheme. The scheme started in 2005 and got around $18 million in only two years. More than 600 people were caught by the scheme with the promise that they could get returns of 50% of their investment within 30 days.
According to some of the recent reports, Miami foreclosures have completely overshadowed the South Florida real estate and housing market. As a result of high number of foreclosures in 2008, Miami is ranked second in the country where foreclosures are concerned and Brickell condos have the highest foreclosure rate locally.
According to one of the new reports that has been taken out by Condo Vultures, the 3 condominium towers of Brickell condos has recorded the highest number of foreclosure homes that were filed in the Miami-Dade County in the first 3 quarters of 2007 and continue to do so in the first quarter of 2008 as well.
Brickell condos have recorded 54 foreclosed homes with The Club at Brickell Bay situated at 1200 Brickell Bay Drive leading the pack. This is the highest number of foreclosures by state for any particular building in the Broward and Miami-Dade counties. The number two spot goes to the The Vue at Brickell, situated at 1250 S Miami Ave., as it has recorded 49 foreclosures. The Jade at Brickell Bay situated at 1331 Brickell Bay Drive has recorded the third highest number of home foreclosures.
All the three Brickell towers together accounts for almost 37% of the foreclosure actions that have been filed by the top 10 buildings in Miami and entire of South Florida according to a report by Condo Vultures. This accounts for almost $113 million in mortgages as well as fees that homeowners owe the lenders.
As a result of this high number of foreclosure homes in these 3 buildings, Brickell Avenue as well as Downtown Miami can expect a high influx of discount buyers and investors in the near future.
Troubled borrowers who were ravaged by Hurricane Ike will be glad to know that they need not worry about their mortgage problems in the mean time. Instead of thinking of ways to stop foreclosure, these homeowners can focus on recovering from the losses they incurred when the said hurricane passed through their cities.
For the Department of Housing and Urban Development Secretary Steve Preston, distressed homeowners living along the coast of Texas deserve to be given some break from the collection efforts of their lenders. In fact, HUD is urging private lenders to consider the situations of these distressed homeowners.
As for the federally-insured mortgages, the HUD has already issued a moratorium against foreclosure effective for 90 days.
In cases like this, troubled borrowers should take advantage of the extra time given to them. True, they need to pick up the pieces after suffering from Ike but they should also use this time to find a long-term solution to their mortgage woes.
Negotiating with lenders is usually the first option explored to address foreclosure fears. A loan modification agreement or repayment plan can be drafted if the homeowners are able to prove that they can still afford the mortgage.
If this does not work out, homeowners should probably consider selling the property. There are actually a lot of investors and homebuyers who prefer pre-foreclosures over foreclosures at auctions and bank foreclosed homes.
As a last resort, homeowners might want to consider a deed in lieu of foreclosure, a short sale or even a bankruptcy in order to avoid foreclosure.
For homeowners who are confused about what to do, there are foreclosure counselors who will offer their services for free. These foreclosure counselors can even act as mediators between the troubled homeowner and mortgage lender or servicer.
Nationwide, numerous housing advocacy groups have been organizing foreclosure prevention workshops and seminars in order to help these unfortunate homeowners.
Senator Carl Levin of Michigan said that many people across the nation have gone through the anxiety that being involved in a foreclosed home would produce. He said that the increase in numbers of foreclosures was having an adverse effect on the values of homes, involved in foreclosure or not.
He also said that with Michigan having the fifth highest rate of foreclosures in the country in June, 2008, the State has been affected very severely.
He does hope that the recently passed Housing and Economic Recovery Act of 2008 will turn the tables and undo the damage that the mortgage crisis has caused.
This bill, according to him, will offer solutions to a lot of the current problems and will also offer safeguards against similar situations arising in the future.
He said that the bill has authorized the Federal Housing Administration to provide $300 billion in insuring mortgages. This move could have a positive effect on around 400,000 home owners across the nation by helping them to convert their existing ARM loans to fixed rate mortgages with a 30 years time period. This move, he said, would help households avoid foreclosure and keep neighborhoods together.
The bill is to also provide funds to local communities suffering from a large number of foreclosures. This money is to be used to rehabilitate badly affected neighborhoods.
Talking about how the bill would affect Michigan, he said that the State is to receive $170 million in order to help local neighborhoods. He said that these funds could restore close to 6,000 homes and protect local communities from the values of their homes going down.
He also discussed how the provision of first time home buyers receiving a loan of up to $7,500 as tax credits, would have a positive effect. Not only will it give people wanting to buy their first home a chance, it would also end up reducing the influx of unsold homes, he said.
He also said that it was clear that the current crisis was not just about values of homes going down or the high mortgage costs, but also about the people who stood to loose homes where lives were spent and memories were made.
The UK has been hit by a similar housing crisis that it is affecting the US. Specialists have predicted that if the crisis is not stopped at the beginning it could be far worse than the US foreclosure crisis, as the British economy is more reliable on the real estate industry.
The whole crisis in the US is giving hope to India. America is the number one outsourcer of India´s IT/ITeS business, and recent reports are showing that due to the cheap labour in India and the economy crisis that has hit the US by the high oil prices and the foreclosures recession, American companies are now moving whole sectors and operations to India.
America is facing one of the biggest real estate foreclosure crisis ever and some have even compared the crisis to the great recession. The auto industry, builders, homeowners, lenders and students got hit by the crisis, and yet no resolution seems to be taken by the government. It looks as if the government is waiting for something to act, and why is that? Elections of course!!
The foreclosure crisis has affected thousands of homeowners, lenders, builders, as well as students who cannot qualify for student loans due to the high standards posed by mortgage companies. It seems that now its time for the auto industry to be affected by the real estate foreclosure crisis. With banks and auto lenders tightening their loans and worried of getting caught by the recession, hundreds of American consumers are not being able to get the desired loans.
As a result of the current real estate foreclosure crisis many lenders have repossessed more homes that they could afford, and as a result many homes are abandoned and vacant. The average rate of vacancy in the US is now at 3 percent and the problem is not only affecting lenders but are affecting the health of thousands of neighborhoods across the country. Recent reports show that many vacant homes are presenting health risks including many abandoned green-pool that are a handy nest for mosquitoes.
The current real estate crisis in America is far from over and it is affecting thousands of lenders, neighborhoods, the building industry and especially home owners. But the effects of the crisis are even worse the present problems. Homeowners that are going through foreclosure today will suffer even more in the future by the bad credit, and most of them will have to wait five years to be able to get a new mortgage. The current foreclosure crisis is becoming the future credit crisis and it will have innumerous consequences to many sectors of our economy in a near future.
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