Foreclosure Madness Just Won't Stop

More pain is forecast in the housing market.

All you need to do is look at Broward County Property Appraiser records to see why. There are thousands of properties left over from the housing boom that have neither been foreclosed or short sold.

They're saying the bottom might hit in 2012, and the Wall Street Journal is reporting that the housing boom that began ten years ago has officially disappeared.  

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"I think foreclosures have set a record every year the last four years now, and I think 2011 will break last year's record," said our resident expert, Jack McCabe, who foresaw the bust and doesn't see it bottoming until next year minimum. "The problem right now is that half or more of the sales are foreclosure or short sales. Because of that, we're going to continue to see prices go down because half of the sales are distressed sales."

If you haven't been profoundly affected by this mess, you know someone who has. This is something that we need to go through as a nation. Where is Obama? Playing footsie with the banks, letting them stall and hem and haw before they lower the hammer on the upside-down homeowners who are left and truly want to save their house? I believe the president's greatest failure so far has been his inability to get ahead of this crisis.

You want to see something scary? Go do a Broward Property Appraiser's website search on Sailboat Pointe.

Sailboat Pointe was a massive apartment complex in Oakland Park that converted to condos in 2005, at the height of the boom. It did a great sales job, apparently, as two/twos went for the high hundreds well into the two hundreds. These are units that rent for around a grand. It was insane.

Those same condos today are selling for about $50,000. Just to get an idea of where we're at right now, click here on the appraiser's site and punch "Sailboat Pointe" in where it asks for the subdivision name. Then look at the first unit on the list. It's owned by a man named Terry who is maintaining his homestead exemption on the house. He's apparently making a go of it. He paid $190,900 for the property in June 2005. It's now assessed at $50,000. That's the first one. Now just start going down the line of properties and you'll see that

many are in Terry's position. While some of the units have been foreclosed or short-sold, more appear to be just sitting there, waiting for the pain.

Thumbnail image for sailboatpointe.jpg
Sailboat Pointe
And there are dozens of complexes and neighborhoods across South Florida and the nation in a similar position. Remember, the country hasn't seen anything like this since the Great Depression, and Broward County was ground zero for the madness.

Loan remodifications are the answer, you say? Well, not until the banks really start to play ball. The derelict banks are offering lower interest rates to some homeowners, but, as McCabe will tell you, only very rarely do they offer reductions in the principle owed. Until the banks actually start reducing the principle, most modifications are nothing more than staving off the inevitable. "In a lot of cases, the homeowners are going to die before the house will be worth what they paid for them. We're turning people into glorified renters who will never have equity in their house."

What's worse, the banks are often going after the hapless homeowners after the distressed sales for the unpaid principle of the doomed loan that was the product of a collective madness and greed that overtook the housing industry and the nation.

That's not just unethical -- it's immoral.

Somebody's got to get real, and it starts with the banks, which so far have been miserable during this interminably long crisis. I guess that would be predictable since they were the driving force behind it in the first place.

-- I got a quick congratulations to extend to Al Lamberti's public corruption unit. With the Cindi Hutchinson arrest, it finally has an arrest under its belt -- and it looks like a strong case.

The sheriff hired former FBI agent Al La Manna last year to head the unit, which has three deputies working full-time in it. We wondered if it would be a serious effort or just a political extension of the sheriff. At times, it has stumbled (see Gunzburger, Sue), but this case puts it back on the right track. Here's to a few more.


Follow The Daily Pulp on Twitter: @TheDailyPulp.

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41 comments
Las Vegas Foreclosures
Las Vegas Foreclosures

US is indeed one of the powerful country in the world when it comes to warfare and technologies as well, but why foreclosures infiltrating the Obama Administration? Because they're letting it happen? The government has to do something more efficient than the past programs, I'm into foreclosure business but I'm not happy with the rates the housing crisis has gone up..

Las Vegas Foreclosures
Las Vegas Foreclosures

The foreclosure rate in my hometown last month was the highest it's been since the current recession began,because the unemployment rate remains dangerously high. This will never stop if our government not paying attention on what people was struggling right now.

Cape Coral Properties
Cape Coral Properties

Relevant issue for today's investor. By the thanks you have a well written and informative blog specially for us.

Dave E
Dave E

Moody's has predicted the bottom of the market to be the summer of 2012 at this point, with 2034 returning to the prices of 2005. Forclosure/short-sale inventory must be depleted first before growth can be realized.

Doug
Doug

If I loan you money to start a business selling widgets and you pour that money into buying widgets - then a year later the price of widgets fall in half and you're left with a bunch of overpriced widgets, is it really the bank's responsibility to give you back some of the money it loaned you? The bank's didn't force people to purchase homes that were out of their league - it didn't force people to take out second mortgages to then pour into a second home with the hopes of flipping it. People who did this and now are crying to the government for help don't get sympathy from me.

Eduardo Especial
Eduardo Especial

I'm late weighing in here, but there is something that our Legislature can do to help, in a way that would put significant pressure on the banks and give underwater homeowners a shot at getting a fresh start in their lifetimes.

Unlike California and some other states, Florida law allows the banks to pursue a deficiency judgment against a homeowner who has been foreclosed upon, i.e., a judgment for the difference between what the property sold for at the foreclosure sale and the amount remaining on the mortgage note.

A bank has years to pursue such a judgment, and then has years after that to collect. It thus becomes a ticking time bomb in the life of someone whose home has been foreclosed upon for whatever reason (he or she walked away, could no longer afford to pay, etc.).

A nominally sensible person who bought a home for $400K at the height of the boom with 20% down now owes $100K more than his or her home is worth. That $80K the person put down -- which otherwise would have been equity -- is long gone. Such a person who then gives up his or her home should not be allowed to be persecuted further by the banks years later for a $100K judgment (and have wages garnished, etc.).

The Legislature needs to repeal section 702.06, Florida Statutes (which, it should be noted, was enacted in the 1920s). As Pulp says, allowing banks to collect on the deficiency after already taking the homeowner for his downpayment and for the house itself is immoral.

Adele
Adele

Home ownership will soon be a thing of the past. There will be more will be renters than homeowners in the future.

JSkool101
JSkool101

And Lobbyist Lovin' Lori announced the real estate market has bottomed out. Right.

jad
jad

WhiskeyForMyMenBeerForMyHorsses -- I went to that site and just finished watching the entirety of that lengthy (almost 2-hour) documentary. So, I thought that I would give you my opinion. When I heard Ron Paul’s brother, Wayne (right before Dennis Kucinich), speak about the true position of the federal reserve, my mind clicked on a like-kind State level entity. The portrayal of the federal reserve was that it is a private ownership corporation, with little involvement with or allegiance to (either our national or) our federal government -- which would seem to violate art. I, sec. 8, cl. 5 of the U.S. Constitution (although it seems to have been given a forced recognition of an untenable position under the aegis of art. I, sec. 8, cl. 2, U.S. Const.).

Back in 1996, the State of Florida dissolved the Department of Commerce. At that time, I had been arguing with some of those persons in that State of Florida Department, who were employed as our public servants. If I had not been fighting the giveaway of our money to erect a stadium or arena for a select few multimillionaires and for the benefit of a limited number of professional sports teams, rather than the benefit of the people, I would never have noticed the change-over (& may not have been able to see the correlation between the federal level federal reserve to the State level entity that took over the Department of Commerce). What I found out, after the takeover was that my argument could no longer be made in the way that the State Constitution allowed for petitioning the government (or in the case of the Executive Branch, through a remonstrance). There was no longer a public body that could provide public information about the moneys diverted by the State.

Now, what used to be the public’s Department of Commerce in Florida exists (in a quasi-state) as Enterprise Florida. (There is an Office of Tourism under the Enterprise -- yes, that’s “enterprise,” as in the entity that needs to be proven under “racketeering,” whether State or federal RICO laws. I wonder if the naming of that Enterprise in Florida is meant to be a joke -- on us?) Anyway -- This entity is a private-public partnership, that is in control and handles our public money, without accountability. So, I can understand the difference that Alex Jones has brought out about the banking system not really being what we, the people, assume it to be.

The problem seems to be more than one with semantics. For instance, there were some references to the people becoming slaves. I don’t think that “slave” would be the correct word. I believe the term (which had been used in the Old Testament) is that of “bond servant” (who were the enslaved people that Moses had to lead to freedom). As in days of old, it seems that we have been lead to believe that we have sold (for a pittance or traded away) most of our rights & freedoms, for a little bread in our bellies and a pharaoh-like person’s promises of safety & security (under the roofs of others, donating forced labor). We, the people, have permitted our officials to use our assets as collateral as the debt for which we, the people, have been told that we would become obligated. It does not matter that it is chicanery that has stripped us of our assets, and that our assets still do rightfully belong to us 100 %, under the law. We have been told lies by those who manipulate the truth. But, we, the people, take the easy way out & obey the deceivers, rather than fight against the unjust pronouncements.

We should know that we do not have to pay back any moneys on bonds that have been issued fraudulently. We should know better than to think that a debt is owed by the people when a private corporation makes the debt (even if in the people’s name, since that too would be a fraud). There has definitely been a misuse of our moneys at all levels of government. We’ve even propped up dictatorial leadership in countries that we say we are helping achieve a democracy. Maybe the ongoing crisis in Egypt will show us what our $1 billion per year into Mubarak’s pocket has achieved. Maybe we will learn more about the rest of American tax dollars that have gone into that region to enrich despots & dictators, and make corporate entities wealthy (from the sweat of our brow). Then again -- maybe not.

Patsy
Patsy

I know many people that are paying lawyers- they are negotiating, and are keeping their house. Some of these people refinanced their homes when the market hit high-cashed out , bought cars, vacations, etc, now they are playing games, and get to keep the house. THAT IS WRONG! I know someone who took out over 200,000 on a refi, slurged and now she does not have to pay it back.

WhiskeyForMyMenBeerForMyHorses
WhiskeyForMyMenBeerForMyHorses

Great documentary - The Obama Deception - this was released just after he took the puppet post and pretty much everything in it remains true to this day. http://www.youtube.com/watch?v... (ENJOY)

There was never going to be any freaking change not when he surrounded himself with wall street, CFR, Fed Reserve thugs!

Enos
Enos

Dirty words: personal responsibility, success, profit, business, capitalism

cindermaggi
cindermaggi

i cant imagine what man of what political party from anywhere could get ahead of the mess the greedy thief mortgage losers and banks made!!!!

Commander Zero
Commander Zero

Chase invited me to refinance, dropping my interest rate from about 5.9% down to 5.0%. This may be through the Federal HARP program, I'm not sure. I'm nowhere near underwater, in fact my loan to value is below 60%. The outstanding principle is the new basis, and the loan is for 30 years starting now. Most of the costs of refinancing are paid by Chase. This is a wonderful deal for one of the happy ones with a great credit rating. What I want to know is why isn't this good deal being given to those who really need it, folks who are under water. This is also a wonderful deal for Chase because I don't think it's costing them anything and they know it will be my last refinance, even if I live 30 years.

VirgilStarkwell
VirgilStarkwell

Pulp;You are talking out your ass. Obama is addressing the issue by trying to pass legislation. It was Bush that ruined the economy. It was the evil Cheney the devil himself that caused the housing collapse so he and he rich friends could turn us into slaves. Everyone with any brains knows that the tea party and Palin are idiots. The republicans are stooges of big insurance and oil lobbyists. They are the real reason the economy is down, unemployment is going up and people are losing their houses. Bush/Cheney/Palin/republicans/teapartiers/bigbusiness are all involved in a conspiracy to destroy this country and blame it on Obama by calling him a socialist. Rush Limbaugh and Glenn Beck are really racists and this is why they attack Obama. It's all a racist conspiracy. Only idiots don't know this.

Virgil Starkwell
Virgil Starkwell

Pulp says: "Where is Obama on this issue? "

Answer: Where he's been since day one, firmly in the pockets of the big banks. The biggest problem we have in this country right now is we cannot even begin to address these issues when half the nation--I call them the "yellow helmet crowd"--still think Obama is a socialist.

A true leader would have splintered the big banks into tiny pieces, temporarily nationalizing them in the process. Once they were broken up into smaller pieces and sold, they could have been re-privatized.

In addition, judges should have been granted the authority to do cramdowns. That is, forcing these blood sucking money lenders to substantially lower the principle for those homeowners that were victims of bad timing. I have a buddy who bought a townhome at the height of the market for twice what it is worth today. He did nothing wrong, works hard and pays his mortgage every month.

However, he is stuck in negative equity....maybe forever.

tester
tester

testing the waters

Local_Lawyer
Local_Lawyer

Keep in mind that many of the banks that claim to own the current notes and mortgages bought them at a reduced value, so they won't lose anything by reducing the principal.

nanook
nanook

if we're lucky we'll never have prices like 2005, because it means everyone is lying and stealing their asses off again.

DEEP CREEP
DEEP CREEP

When you have the Federal Reserve printing money out of thin air and start to flood the whole country with the printed money(which is devalued by the way) and then to withdraw all the money and access to credit what did you expect to happen?

The Federal Reserve created this mess just like they did during the Great Depression.

Why do you suppose so many have opposed a Central Bank through the years?

We need to take charge of our own currency and take it back out of the control of the moneychangers.

DEEP CREEP
DEEP CREEP

The Federal Reserve is no more Federal then Federal Express. It is well past the time to smash this whole Federal Reserve system and put control of our mony back to the U.S. Treasury and Congress. The great Andrew Jackson spent his whole political career denying a Central Bank in this country but these parasites are persistent and they found their weak link in Woodrow Wilson.

Its time for a revolution!!!

Virgil Starkwell
Virgil Starkwell

"I am a most unhappy man. I have unwittingly ruined my country.A great industrial nation is controlled by its system of credit.Our system of credit is concentrated. The growth of the nation,therefore, and all our activities are in the hands of a few men.We have come to be one of the worst ruled, one of the most completelycontrolled and dominated governments in the civilized world.No longer a government by free opinion, no longer a government byconviction and the vote of the majority, but a government bythe opinion and duress of a small group of dominant men."

Woodrow Wilson, 1913, after signing the Federal Reserve Act.

WhiskeyForMyMenBeerForMyHorses
WhiskeyForMyMenBeerForMyHorses

Hi jad - When I heard Ron Paul’s brother speak, it clicked for me as well. Its funny I never learned that in school or college - nor did my parents inform me. I think most points in this documentary are solid and irrefutable.

That’s interesting about Enterprise Florida.

I think your reference to Bond Servant is correct! Sometimes I wonder why the older generations ignored this take over by the federal reserve. The Fed Reserve is so arrogant & Ron Paul for maybe the third time just introduced another bill to have them audited. Some how it always manages to get blocked!

http://www.businessinsider.com...

cindermaggi
cindermaggi

I know a lot of people like that but i see them getting arrested daily!

casin
casin

Man,or whatever... you sometimes made sense in the past, but that you even suggest any of that crap makes any sense, is sad.... All this paranoia needs help and treatment....

Virgil Starkwell
Virgil Starkwell

Personal responsibility never applies to corporate interests. In the mind of a conservative, it only applies to a working class stiff.

skydove
skydove

That's the problem. When Obama became recognized as a serious candidate for nomination by the Democrats, the economic picture, though grim, was nothing like as disastrous as it was revealed to be during the fall campaign. By then it was clear that nobody in the race had the skill set required to get on top of the crisis immediately, nor the temperament to explain to the financial community that its participitation in draconian economy-saving measures (Virgil's or someone else's) could be enthusiastic or reluctant, but would be compelled. Such compulsion might have been achieved by a heroic FDR/LBJ figure who was willing to play against type for the sake of the national good. But no one fitting that description was on the ballot.

Neither Obama, despite his immense bandwidth and renowned quick-studyhood, nor McCain, burdened with connections to dubious elements of the financial community, presented convincing evidence that he could fix things any time soon. During the campaign, however, both men were obliged to focus on the very short-term goal of getting elected, and many Americans voted for Obama with enthusiasm, setting aside misgivings about his ability to handle the financial crisis. The alternatives were unthinkable. But the simple faith, expressed in 2008 by remarks such as "Let him just get in there and get his hands on the reins. If he can't figure it out, no one can," has yet to be rewarded.

Loan
Loan

It still might not be a good deal. How long have you had the original loan. Please keep in mind that on a home mortgage you pay all the interest up front. After a certain time all the payments go directly towards principal reduction.

Starkwell The Moron
Starkwell The Moron

So the reason we have record unemployment and housing foreclosures is because half the nation thinks Obama is a socialist.

Your logic or rather the lack thereof proves that you are a moron and an idiot.

Goldilocks
Goldilocks

If only the Citizens United (pathetic) ruling would make corporations into citizens for more than just the First Amendment issue (campaign finance). Perhaps then the responsibility gap might narrow just a tad. Alas.

Model Citizen
Model Citizen

"The fundamentals of our economy are strong."

- John Sidney McCain III, September 15, 2008

bystander
bystander

No - the interest on a home loan is repaid as "simple interest" - most of the payment goes to interest in the early years but, from day one, some of it goes to reduce principal. What you are describing is "add on" or "discounted" interest. Institutional federal home lenders like national banks can make that kind of loan but, they are then subject to state usury laws. If they stick to simple interest they are not subject to usury laws.

Virgil Starkwell
Virgil Starkwell

If you could comprehend what you read--which you cannot--you'd understand that I was stating the reason we cannot have a serious debate about these issues is half the country--the yellow helmet crowd--have been calling him a soclialist for the last two years.

They have been bamboozled by bullshit.

I guess I struck a nerve.

Genius
Genius

Save your breath. I have listened to this nonsense from Starkwell and his alter ego Model Citizen for months. Between the two of them they have half a brain. All their solutions involve more government takeover. Like it wasn't the government that helped cause all the nonsense to begin with.

nanook
nanook

the tea party USED to be about bailouts but dropped any mention of sticking it to the banks and used all their momentum on denying people healthcare coverage and other BS, now they're trying to UNDO FINANCIAL REFORM TOO so yes we'd have been better off by now without them

ura bozo
ura bozo

You sound like a real annoying idiot. I bet you speak with a nasal twang!

Virgil Starkwell
Virgil Starkwell

I was wondering where my alter ego was when these fucktards showed up.

Model Citizen
Model Citizen

There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, if you don't have anything nice to say, go fuck yourself *gently* with a chainsaw.

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