Housing News

Housing News

Cook County Accuses Wells Fargo of Predatory Lending

Cook County Accuses Wells Fargo of Predatory Lending

Cook County Accuses Wells Fargo of Predatory Lending

By Brena Swanson

Cook County, Illinois accused Wells Fargo (WFC) of targeting black and Latino borrowers for more costly home loans than their white counterparts in the Chicago area. Per Bloomberg:

The bank’s tactics start at home-loan origination and continue through refinancing and foreclosure, the country said, a process its lawyers summarized in the complaint as “equity stripping.” The process may have involved as many as 26,000 loans, the county said.

Wells Fargo Predatory Lending

“Equity stripping is an abusive form of ‘asset based lending’ that maximizes lender profits based on the value of the underlying asset and onerous loan terms, while in disregard for a borrower’s ability to repay,” according to the complaint.

In response, the article included a statement from Wells Fargo’s Tom Goyda, a spokesman for the San Francisco-based bank, calling the county’s case “baseless” and stating that Wells Fargo would vigorously defend itself.

“It’s disappointing they chose to pursue a lawsuit against Wells Fargo rather than collaborate together to help borrowers and home owners in the county,’’ Goyda said. “We stand behind our record as a fair and responsible lender.”

Other sources: Bloomberg

Posted by Red Pill Reports in Housing News
Chinese Investors Snap Up Property in Bankrupt Detroit

Chinese Investors Snap Up Property in Bankrupt Detroit

Chinese Investors Snap Up Property in Bankrupt Detroit

By Eric Baculinao

The new 10-year visas for the Chinese announced by Obama was another selling point

BEIJING — Bankrupt Detroit’s thousands of empty buildings are being flogged at rock-bottom prices — and Chinese investors are answering the siren call of unbeatable deals.

With family homes regularly selling for around $10,000, the beleaguered Motor City is now the number-four destination for Chinese housing investors in the U.S. Bigger spenders have already snapped up some of Detroit’s most iconic commercial buildings.

Chinese Investors Snap Up Property in Bankrupt Detroit

Foreclosure $14,840 – 9067 Grandville Ave, Detroit, MI 48228 – Source: Zillow

“There are factories, commercial real estate and upscale areas around Detroit with proximity to good schools that are worth investing in,” said Wang Ning, deputy manager in charge of international business at China online real estate agency SouFun.

The firm, which lists hundreds of photos of abandoned Detroit homes on its website, says it received more than 1,000 telephone inquiries the week after the city claimed the dubious distinction of having filed the country’s largest municipal bankruptcy in July 2013.

Chinese interest picked up steam after a TV report claimed that homes in Detroit could be bought for the price of a pair of shoes.

After the program one user posted on Twitter-like Weibo: “700,000 people, quiet, clean air, no pollution, democracy — what are you waiting for?” The comment generated millions of responses.

“We believe that Detroit will be back”

The influx of cash is welcome in Detroit. Earlier this month, a bankruptcy court ruling approved a complex restructuring of the city’s $18 billion in accumulated debt to end a costly and contentious chapter of the city’s long-running financial decline. Once among the greatest manufacturing cities in the world with the highest per capita income in the United States, many of its homes and office buildings now sit empty and derelict. Its officials are looking to China help salvage the gutted city.

Read more

Posted by Red Pill Reports in Housing News
Learn If Your Mortgage Is Compromised

Learn If Your Mortgage Is Compromised

Learn If Your Mortgage Is Compromised

By Greg Morse

How To Determine If Your Mortgage Is Compromised

The following Checklist is intended to assist you in making an initial determination as to whether or not your mortgage has been controlled, manipulated, compromised or destroyed.

If you are like me and millions of other Americans, you (1) have been made an involuntarily indentured servant (2) are a serf on what you think is your property (3) are a renter and not a purchaser and (4) will never be able to legally and securely own your home with a clear and legally perfectible Deed after you have made the last mortgage payment on what you THINK is the debt you owe on your Promissory Note.

Learn If Your Mortgage Is Compromised

Image credit: Veronidae (Own work) [CC-BY-SA-3.0], via Wikimedia Commons

This condition exists because your property’s Chain of Title is likely Broken and you, many years from now when you ultimately realize you have a serious problem, will be unable legally or otherwise, to obtain the documents required to attempt to perfect your position in the property from the True Lender and Mortgagee because that entity will likely have long since been declared “dead” by a Federal Bankruptcy Court as is currently taking place in the RESCAP Bankruptcy being adjudicated in the U. S. Federal Bankruptcy Court, Southern District of New York.

This initial review is just that, Initial. However, it is highly indicative that you may be the unknowing victim of illegal activity and fraud that has taken place during the course of your home ownership which likely began at, or prior to, loan closing.

It has been shown that this initial review has been very accurately indicative in pinpointing broken Chains of Title in thousands of individual mortgages and has been continually corroborated by the complete analyses of many individual’s mortgage documents after having undergone subsequent in-depth reviews.

This initial review must be accomplished by all mortgage holding homeowners as this is the first step and cannot be circumvented. Once the initial result is determined, the next required step is to do an in-depth analysis of all mortgage documents in your possession to investigate and identify many other areas that are likely to further pinpoint and corroborate issues of illegality and fraud of which you likely are a victim.

This process is not fun, however, it is educational and gratifying to be able to identify, with specificity, the true nature and scope of your problem.

As you go through this process, document your results for future reference as accurately and completely as possible.

Once you get started and decide to become involved with our effort described on the website, we will provide for your use and benefit many forms, procedures and processes developed and used in my own six (6) year effort, to help you minimize effort and stress and to assist you in organizing the documents that, at first, seem insurmountably massive and uncontrollable.

Take solace in the fact that you are doing what many will not do for their own benefit. You are taking positive steps to become educated and informed.

Getting Prepared

Sit at your internet-connected computer with your Mortgage or Deed of Trust (depending on how the document is termed in your State).

Have pen and paper available to write down your notes and thoughts as you go through the process.

Write down everything you think of. Don’t overlook or neglect anything. Your thoughts, ideas and memories of your mortgage transaction are very important.

During the process, you will be instructed to refer to two (2) separate MERS Member OrgID listings. The OrgID is thoroughly described below.

This is one of the most important steps in the process, so pay close attention to detail.

The most complete listing of all MERS Member OrgID’s we have ever been able to acquire is the 2009 listing that was privately posted on the MERS website for a short period after the bubble burst in late 2008. We obtained this listing prior to MERS removing it from their website. To access this list, Click Here: http://mortgageendgame.com/MERSmemberNum.php

To insure you accomplish as thorough a review as possible, you will also need to review the currently re-posted listing of all MERS Member OrgID’s once again shown on the MERS website. To access this list, Click Here: http://mersinc.org/about-us/member-search

Let’s Get Started

1. Refer to your Mortgage or Deed of Trust.

2. “MERS” refers to “Mortgage Electronic Registration Systems, Inc.”

3. “MIN” refers to “MERS Identification Number.”

This number is of the utmost import and is the controlling number for your Mortgage or Deed of Trust and Promissory Note from the date of closing through the expiration of the loan term. There is no more important factual indicator that your Mortgage or Deed of Trust has been compromised.

4. Look for a MIN on the first page of your Mortgage or Deed of Trust. This is an eighteen (18) digit number and is styled MIN XXXXXXXXXXXXXXXXXX.

Digits 1 thru 7 identify the OrgID of the lender registered with MERS as a MERS Member. These seven (7) digits are referred to as the MERS Member OrgID.

Digits 8 thru 17 identify your loan contract number.

Digit 18 is a single check digit. You need not be concerned with this check digit at this point. It may
come into play upon further review and analysis.
5. The first section of the Mortgage or Deed of Trust is the Definitions section. Locate the Paragraph that
discusses the definition of Lender.

6. If your Mortgage or Deed of Trust is a MERS Mortgage, there will be a definition either immediately before or after the definition of Lender which gives a definition for MERS. The definition generally begins with the statement MERS is Mortgage Electronic Registration Systems, Inc.

7. Refer to digits 1 thru 7 in the MIN Number. Now refer to the two (2) lists of MERS Members and their OrgID’s as discussed above.

You are looking to determine if the name of the mortgage company you think you have dealt with is listed as a MERS Member on either of the two (2) lists and additionally, if the first seven (7) digits in the MIN Number shown on your Mortgage or Deed of Trust match the seven (7) digit MERS Member OrgID shown on either of the two (2) lists.

In many instances, these numbers do not match. This means that the mortgage company you think you borrowed the money from was not the true lender and was simply sitting at the closing table as a Table Funder. This is a MAJOR PROBLEM.

8. Check the section in Definitions that explains the Note. In most cases, the loan number for the Promissory Note will be listed in this section. If the loan contract number is not the same as digits 8 through 17 in the MIN Number, your mortgage has been compromised and likely was sold Prior To filing with the County Recorder’s Office.

9. If your loan contract number begins with one or more zeros (0’s), there likely is a major problem.

10. If, on the first page or so of your Mortgage or Deed of Trust is the statement “(Your State Name) – Single – Family – Fannie Mae/Freddie Mac” this means that both your Mortgage or Deed of Trust and Promissory Note have been prepared in accordance with guidelines specified by Fannie Mae or Freddie Mac to streamline the securitization and sale of the Promissory Note by turning your Promissory Note into Bearer Paper.

11. If the phrase Uniform Instrument With MERS or MERS Modified Form follows the statement in #10 above, the Mortgage or Deed of Trust and Promissory Note have been prepared in accordance with guidelines specifically dictated for MERS by Fannie Mae or Freddie Mac to facilitate the securitization and sale of the Promissory Note as Bearer Paper.

12. Next, go to the MERS website at https://www.mers-servicerid.org/sis/index.jsp to see if the Mortgage or Deed of Trust is a MERS Mortgage. MERS Members have the option internally to purchase Non- MERS Promissory Notes and integrate them into the MERS System without you knowing this is being done.
13. Type in the CAPTCHA code on the screen to gain entry. The letters are case sensitive.

14. Single left click on the logon button.

15. On the next screen, single left click on the radio button to the left of the phrase Search Property Address/Borrower Details.

16. Next, single left click on the radio button to the left of the phrase Borrower Name, SSN and Property Zip Code.

17. Next, single left click on the radio button to the left of the phrase Search by Individual Borrower, SSN and Property Zip Code.

18. In the form box that appears, enter the first and last name of the primary borrower, his or her Social Security Number and the property Zip Code.

19. Next, single left click on the Search button.

20. After receiving the search results, read the screen carefully and either print this Page or make a screen shot of it. It should tell you how to identify the current investor.

21. There is an extraordinarily high percentage of mistakes on the MERS Database, so this information must be further corroborated to assure the highest degree of probability as to its accuracy.

22. Next, look at your Monthly Mortgage Billing Statement.

23. If your account number is a ten (10) digit number, you may be a MERS Controlled Customer.

24. If your account number is a ten (10) digit number with one (1) or more leading digits being zeros (0’s), you are either a MERS Controlled Customer or are highly likely the victim of an in-house securitization and sale by your mortgage servicer.

25. Next, refer to your cancelled checks used to make your monthly mortgage payments.

26. If the name of the business to which you have been paying your monthly mortgage bills changes from one name to another, your Mortgage or Deed of Trust has been securitized and sold unless the change can be verified as having been due to a corporate merger.

27. Review the front and back of all your mortgage payment checks to identify the ABA Routing Number, the Account Number and/or the ACH Routing/Transit Number of the account depositing your payments.

28. If any of these three (3) numbers periodically change, you are a victim of securitization and your property’s Chain of Title is likely destroyed. This destruction means you will not own your home after you make your last mortgage payment. All monies invested in the property have been rent payments and NOT purchase payments used to develop equity in the property.

Conclusions and Thoughts

Bank of America, Wells Fargo, Citibank, JP Morgan Chase and many other lenders are Shareholders in MERSCORP, Inc. and its wholly-owned subsidiary, Mortgage Electronic Registration Systems, Inc. (MERS).

Important: These Shareholders control the Boards of Directors of both MERSCORP, Inc. and Mortgage Electronic Registration Systems, Inc. (MERS) and are the very same Shareholders who initially funded and formed these two organizations for the purpose of administratively providing the Shareholders with the privately owned and controlled ability to secretly carry out the massive fraudulent securitization programs that have destroyed the Chains of Title and subsequently the values of millions of residential mortgages.

These entities, in some cases, have separate internal residential mortgage securitization divisions which do not deal directly with MERS. As with MERS, these securitization divisions keep their activities privately internalized.

These entities have proven to be especially adept at circumventing the legal requirements of making statutorily required filings at the County Recorder’s Office.

Failing to accomplish these filings have Broken the Chains of Title on millions of residential mortgages.

Although being the most numerically predominant participant, MERS is not the only entity securitizing and selling Promissory Notes and Breaking Chains of Title.

Although unlikely to be the case, even if it is determined that MERS is not obviously involved in your mortgage, you are not free of risk as many mortgages were privately, without the knowledge of the homeowner, moved into the totally destructive MERS System, AFTER your loan closing had taken place. If this proves to be the situation, we will lead you through an in-depth analysis once you have become involved with our effort.

For a thorough explanation of how the MERS’ operation may have affected you and your family, download and review Sections 18 thru 18-15 in my Whistleblower Jurat Affidavit located in the Documents For Download section at Save Our Family and Home.com.

After Completing The Checklist

Go to Save Our Family and Home.com, carefully review the entire site, then go to the section entitled What To Do Next. http://saveourfamilyandhome.com

Posted by Red Pill Reports in Housing News
For Sale: Renovated Luxury Condo; Can Survive Nuclear Attack

For Sale: Renovated Luxury Condo; Can Survive Nuclear Attack

For Sale: Renovated Luxury Condo; Can Survive Nuclear Attack

By Liz Moyer

Affluent buyers worried about doomsday are snapping up well-appointed bunkers built in a former missile silo.

When Tyler Allen agreed to fork over $3 million in cash for a luxury condominium near Concordia, Kan., he wasn’t attracted by the indoor swimming pool, 17-seat movie theater, or hydroponic vegetable garden.

The real selling point of the 1,820-square-foot apartment: It will be buried 174 feet underground in a decommissioned missile silo sturdy enough to withstand a nuclear attack.

Renovated Luxury Condo

Image credit: http://survivalcondo.com

Mr. Allen, a 45-year-old Orlando, Fla., sports bar and nightclub owner, insists he isn’t a “tinfoil hat-wearing” type preparing for the end of the world.

Rather, he cites growing security threats—such as a global health pandemic, cataclysmic weather and terror attacks.

“There’s a Camp David for the president,” he says. “If you’re at a certain level where you can afford it, you can get that, too.”

The so-called Survival Condo complex boasts full and half-floor units that cost $1.5 million to $3 million each. The building can accommodate up to 75 people, and buyers include doctors, scientists and entrepreneurs, says developer Larry Hall.

Mr. Hall, who lives in a Denver suburb, bought his first missile-silo site in Kansas in 2008 and completed construction in December 2012. A year later, he says, the development had sold out. Work on the second security compound—the one where Mr. Allen bought a unit—is under way, and Mr. Hall says he is considering additional sites in Texas and elsewhere.

As former nuclear missile sites built under the supervision of the Army Corps of Engineers, the structures were originally designed to withstand a direct hit by a nuclear bomb. At ground level, they can be sealed up by two armored doors weighing 16,000 pounds each. Mr. Hall added sophisticated water and air-treatment facilities, state-of-the-art computer network technology and several alternate power generation capabilities.

Read more

Posted by Red Pill Reports in Housing News
The $9 Billion Witness: Meet JPMorgan Chase’s Worst Nightmare

The $9 Billion Witness: Meet JPMorgan Chase’s Worst Nightmare

The $9 Billion Witness: Meet JPMorgan Chase’s Worst Nightmare

By Matt Taibbi | Rolling Stone

Meet the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking

Alayne Fleischmann - The $9 Billion Witness: Meet JPMorgan Chase’s Worst NightmareShe tried to stay quiet, she really did. But after eight years of keeping a heavy secret, the day came when Alayne Fleischmann couldn’t take it anymore.

“It was like watching an old lady get mugged on the street,” she says. “I thought, ‘I can’t sit by any longer.’”

Fleischmann is a tall, thin, quick-witted securities lawyer in her late thirties, with long blond hair, pale-blue eyes and an infectious sense of humor that has survived some very tough times. She’s had to struggle to find work despite some striking skills and qualifications, a common symptom of a not-so-common condition called being a whistle-blower.

Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing.

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Video: A year ago this month the U.S. Department of Justice announced that the banking giant JPMorgan Chase would avoid criminal charges by agreeing to pay $13 billion to settle claims that it had routinely overstated the quality of mortgages it was selling to investors. But how did the bank avoid prosecution for committing fraud that helped cause the 2008 financial crisis? Today we speak to JPMorgan Chase whistleblower Alayne Fleischmann in her first televised interview discussing how she witnessed “massive criminal securities fraud” in the bank’s mortgage operations. She is profiled in Matt Taibbi’s new Rolling Stone investigation, “The $9 Billion Witness: Meet the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking.”

Watch the full 40-minute interview on Democracy Now! with Matt Taibbi and Alayne Fleischmann in our archive: http://www.democracynow.org/appearances/matt_taibbi

Posted by Red Pill Reports in Housing News
Dangerous Housing Market-Manipulated Ponzi Style Boom-Fabian Calvo

Dangerous Housing Market-Manipulated Ponzi Style Boom-Fabian Calvo

Dangerous Housing Market-Manipulated Ponzi Style Boom-Fabian Calvo

By Greg Hunter

Real Estate expert Fabian Calvo says boom bust housing crisis is on the way.  Calvo explains, “There are a lot of outlier indicators that show the run-up to another big boom in housing prices.  If you look back and consider my theory of the ‘pump and dump’ in March of 2012, when I said housing prices would shoot through the roof, housing prices are up over 26%.

Housing Market-Manipulated Ponzi Style Boom-Fabian CalvoWe are entering one of the most dangerous periods of the housing market with the manipulated, Ponzi style booms similar to what we say in Dow Jones and the stock market.” Calvo goes on to say, “I am often surprised that the real estate market is not talked about more.  It is a central key component of the overall Wall Street Ponzi scheme that they are running in the West, and really globally, when it comes to propping up the dollar and propping up financial markets.” Calvo contends there are signs the power players are getting ready to dump real estate.  Calvo says, “John Paulson, we know he made billions of dollars betting against subprime; he knew the handwriting was on the wall.   What’s he betting on now?  He just put in a half billion dollars to buy a big company called Realogy.

Realogy happens to own Coldwell Banker, Century 21, ERA, Sotheby’s; so you see what he’s doing.  We also know Warren Buffett bought Prudential. They are buying up these real estate brokerage houses because they know this new wave of real estate is going to be anyone who can fog up a mirror will be able to get a loan, including the millions of illegal aliens that are flowing over the border.  They are going to be giving loans to them as well to buy up these homes.” Calvo, whose company buys and sells $100 million worth of real estate annually, also points out, “You have these housing companies who own millions of properties, and they are already starting to sell mortgage-backed securities and securitizing these bundles.”  Calvo thinks it’s deja vu all over again, and what will happen?  Calvo says, “Soon enough, the same thing that crashed the market in 2007 and 2008.

Read more


Posted by Red Pill Reports in Housing News
A Tale of Two Green Homes

A Tale of Two Green Homes

A Tale of Two Green Homes

By Leigha Dickens

If you spend enough time in the environmental movement, you’ll undoubtedly get wrapped up in the philosophical discussions of what is the most “green.” Paper, or plastic? Off-grid, or grid-tied? Such debates are naturally going to arise in a movement whose goal is to improve the way people live on this planet, because the act of living affects our natural world many varied ways. Sometimes, improvement in one aspect of environmental impact has unintended consequences in another.

A Tale of Two Green Homes

Image credit: NIST

Green building is not without its own debates of this ilk. Should a new insulation product capable of drastically dropping energy consumption be used, even if it is manufactured with chemicals whose toxicity is not well studied? Should I stay in my existing energy hog of a home here in town, or build a new green home in a location that requires me to drive many miles each day to work and the nearest grocery store? Any project that successfully transforms from dream to reality is going to have to accept some compromises between competing environmental concerns. I work with customers every day who must contemplate these trade-offs, and have observed that green home projects are often guided by one of two very different general philsophies, each with their separate focus on what it means to be a truly green residence.

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Posted by Red Pill Reports in Housing News
Does This Look Like A Housing Recovery To You?

Does This Look Like A Housing Recovery To You?

Does This Look Like A Housing Recovery To You?

By Michael Snyder

We just learned that the home ownership rate in the United States has fallen to the lowest level in 19 years. But of course this is not a new trend. As you will see in this article, the home ownership rate in the United States has been in a continual decline for more than 7 years. Obviously this is not a sign of a healthy economy. Traditionally, home ownership has been one of the key indicators that you belong to the middle class. When people define “the American Dream”, it is usually one of the first things mentioned. So if the percentage of Americans that own a home has been steadily going down for 7 years in a row, what does that tell us about the health of the middle class in this country?

The chart that you are about to view is clear evidence that we are in the midst of a long-term economic decline. It shows what has happened to the home ownership rate in the U.S. since the year 2000, and as you can see it has been collapsing since the peak of the housing market back in 2007. Does this look like a housing recovery to you?…

Homeownership Rate 2014

So many people get caught up in what is happening on Wall Street, but this is the “real economy” that affects people on a day to day basis.

Most Americans just want to be able to buy a home and provide a solid middle class living for their families.

The fact that the percentage of people that are able to achieve this “American Dream” is falling rapidly is very troubling.

There are some that blame this stunning decline in the homeownership rate on the Millennials.

And without a doubt, they are a significant part of the story.  They are moving back home with their parents at record rates, and many that are striking out on their own are renting apartments in the big cities.

This is one area where the decline of marriage in America is really hitting the economy.  Back in 1968, well over 50 percent of Americans in the 18 to 31-year-old age bracket were already married and living on their own.  Today, that number is below 25 percent.

But that is not all there is to this story.

In fact, the homeownership rate for Americans in the 35 to 44-year-old age bracket has been falling even faster than it has for Millennials…

In the first quarter of 2008, nearly 67% of people aged 35-44 owned homes. Now the number is barely above 59%. The percentage of people under 35 owning homes only fell five percentage points, to 36% from 41%.

So why is this happening?

Well, it is fairly simple actually.

Read more

Posted by Red Pill Reports in Housing News
21-count Complaint against MERSCORP Holdings, Inc.

21-count Complaint against MERSCORP Holdings, Inc.

21-count Complaint against MERSCORP Holdings, Inc.

By Dave Krieger

LOS ANGELES — In a timely counterpunch, the Robinson’s new counsel has launched a 21-count Complaint against MERSCORP Holdings, Inc. and MERS, accusing it of concealing its trademark name from Daniel and Darla Robinson in violation of the Lanham Act.   The “Act” is supposed to allow consumers to buy products and services in confidence, but the way this author sees it … how can you buy from someone you don’t know is present at the closing table?   You can read the Complaint (with attached exhibits) in .pdf format below.  It was filed Friday, October 24, 2014 and we are awaiting on the case number.  If I get it before you do, I’ll post it so you can track the case!

Complaint-Final 10-24-14

Image credit: Brendel CC-BY-SA-3.0 via Wikimedia Commons

Image credit: Brendel CC-BY-SA-3.0 via Wikimedia Commons

The Robinsons finally decided they’d had enough of their former federal counsel Susan Murphy, who was relieved of her duties and replaced with Long Beach trial attorney J. Owen Murrin.   Discovery is pending in the case.  There is an April 7, 2015 trial date set in the U. S. District Court in Los Angeles before Hon. Philip Gutierrez, who wrote the Cervantes v. Countrywide opinion.  Hopefully, this Complaint will give you a few new ideas.

The Robinson’s Complaint was filed against Nationstar Mortgage LLC, who has failed to communicate with them, in addition to MERS and MERSCORP in retaliation for their attempts to get a federal judge to vacate their quiet title action and expungement in State Court.

No need to explain any of this further.   The Complaint says what it says.  Food for thought … the inside scoop!



Posted by Red Pill Reports in Housing News
Is This a Triple-Dip for U.S. Home Prices?

Is This a Triple-Dip for U.S. Home Prices?

Is This a Triple-Dip for U.S. Home Prices?

By Jay Jenkins

Seven years ago, the real estate market in the U.S. collapsed from underneath itself. Seven years is a long time. For the average American today, that’s about 10% of your life.

After all that time, though, the real estate market still hasn’t fully recovered. The Case-Shiller Home Price Index Composite 10 remains about 20% below its 2006 highs.

Even worse, home prices have turned downward once again so far in 2014. Is this the beginning of a triple dip, or is there something else at work? To figure it out, let’s break down the fundamentals driving the market.

Where’s the bottom?
We thought we hit the bottom of the market in 2009. That turned out to be premature, as the market rebounded only slightly before falling to a new low in early in 2012. Today the market has rebounded strongly from that low but has once again turned south.

The broader economy
The real estate collapse in 2007 was exacerbated by a fundamentally weak economy. Unemployment spiked, GDP fell into a tailspin, and the stock market collapsed around the financial crisis.

Today, though, the economy is stronger than it has been since the recession ended. Second-quarter GDP was recently revised upward to a 4.6% annualized growth rate, the unemployment rate is below 6% and declining, and consumer spending data continues to improve.

In some locales around the country — including Austin, Texas; Nashville; and Charlotte, N.C. — local economic strength is translating to a strong real estate market.

Read more

Posted by Red Pill Reports in Housing News
Mortgage Rate Seen Hitting 17-month Low

Mortgage Rate Seen Hitting 17-month Low

30-Year-Mortgage Rate Seen Hitting 17-month Low of 3.8%

By RuthMantell

WASHINGTON (MarketWatch) — Fresh worries over economic growth may lead to rates for the popular 30-year fixed-rate mortgage tumbling to a 17-month low, a drop that could spur additional refinancing, experts said Wednesday morning after data rattled investors.

The National Association of Realtors, which tracks sales of used homes (the largest part of the market) tweeted Wednesday morning:

If the rate hits 3.8% today or Thursday, that would be the lowest reading since May 2013, according to a weekly gauge from federally controlled mortgage-finance giant Freddie Mac FMCC, -12.02% In Freddie’s latest reading, for the week that ended Oct. 9, the rate was 4.12%, one of the lowest results for 2014.

Mortgage Rate Seen Hitting 17-month LowHere’s what’s happening: Changes in the rate for the popular 30-year fixed-rate mortgage closely track movements for the 10-year Treasury yield, which tumbled Wednesday morning on weakness in economic data.

“It suggests a deceleration in terms of momentum,” said Ken Fears, an economist with NAR.

The recent drop in rates may spur more homes sales, though the labor market is much a larger factor when it comes to these big-ticket items. Meanwhile, experts said there could be another wave of refinancing applications.

Posted by Red Pill Reports in Housing News
Sell Woman’s Home after Property Tax Mistake

Sell Woman’s Home after Property Tax Mistake

Judge gives Kalamazoo County Green Light to Sell Woman’s Home after Property Tax Mistake

KALAMAZOO COUNTY, Mich. — A Kalamazoo County judge has sided with county officials in a dispute where a Richland woman says her home is being seized over a property tax mistake.

FOX 17 first talked with Deborah Calley in mid-September, when she told us she lost her home after she accidentally missed a property tax payment of roughly $2,000 in 2011. She paid $164,000 in cash for the home in 2010.

Having no mortgage on the home, Calley says she simply forgot to make the payment. She also claims she wasn’t properly notified about it.

Judge gives Kalamazoo County Green Light to Sell Woman’s Home after Property Tax Mistake“When I paid the taxes in 2012 right there in Richland, no one said, ‘Oh, well, you still owe money for 2011,’”Calley said in September. “So I didn’t really have a clue. I thought I was right on time.”

Kalamazoo County Circuit Court Judge Gary Giguere, Jr.’s ruling agrees with what county officials told FOX 17 from the beginning: that the county was only following the law: “…the Court finds that the numerous and varied forms of notice the Petitioner used to notify Defendant [Calley] pursuant to the GPTA [General Property Tax Act] were reasonably calculated to apprise her of the foreclosure proceedings,” Giguere’s court ruling reads.

Other documents obtained by FOX 17 showed that several notices were sent out from the county treasurer’s office over the last year, but Calley said she didn’t see a single one.

FOX 17’s Jessica McMaster reported that 10 certified notices were sent out. However, only one was addressed to Calley. The others were sent to banks.

Calley says she never received the letter addressed to her home. County officials claim they also sent standard letters in the mail notifying her of the missed payment, but she said she didn’t receive those either.

Read more

Posted by Red Pill Reports in Housing News