Monday, November 11, 2013

Tuesday November 12 Housing and Economic stories

TOP STORIES:

Half of foreclosed houses are still occupied - (www.money.cnn.com) Foreclosure sounds like the end of the line, but actual eviction can take months or years -- even after the bank has repossessed a home. RealtyTrac estimates that 47% of the nation's foreclosed homes are currently occupied. The percentage actually tops 60% in some hot housing markets, like Miami and Los Angeles. Those still living in repossessed homes include both former owners and renters. Either way, their time in the homes is mortgage and rent free. To arrive at its estimate, RealtyTrac compared its database of foreclosed homes with postal records showing whether mail was still being collected and whether change-of-address forms had been filed. Even when occupants leave voluntarily, old owners typically take about two months to vacate. With renters, it can take a year or more. "If someone has a bona fide rental agreement, we have to abide by that," said Amy Bonitatibus, a spokeswoman for JP Morgan Chase.

500K Californians could lose health coverage - (www.sfgate.com)  This Kaiser Health News story has been reverberating across the Internet because it starts to put together the numbers of private health-plan insureds who are receiving cancellations. (This is a small group of Californians; a majority get their health care through employer plans, Medicare or MediCal.) I’ve written about the issue here and here. From the story: Florida Blue, for example, is terminating about 300,000 policies, about 80 percent of its individual policies in the state. Kaiser Permanente in California has sent notices to 160,000 people – about half of its individual business in the state. Insurer Highmark in Pittsburgh is dropping about 20 percent of its individual market customers, while Independence Blue Cross, the major insurer in Philadelphia, is dropping about 45 percent. On Forbes’ Avik Roy’s blog, Josh Archambault crunched the numbers and concluded, “More Americans in 3 States Have Had Their Insurance Canceled Under Obamacare than have filed an exchange account in all 50.”

Detroit banker: Pension cuts go without saying - (www.cnbc.com) Cuts to Detroit's public pensions and retiree healthcare were inevitable given the city'ssagging finances, a top consultant for the city testified on Friday during the third day of a trial to determine whether the city is eligible for bankruptcy. Money owed to Detroit workers and retirees is a key factor in the case, which will also hear testimony by Kevyn Orr, Detroit's state-appointed emergency manager. Orr is expected to explain efforts to negotiate with the city's numerous creditors, including retirees and pension funds, before deciding to file for the largest-ever Chapter 9 municipal bankruptcy on July 18.

Bankrupt Detroit needs to cut red tape: Kid Rock – (www.cnbc.com) Home regulations need to be relaxed in Detroit as the city fights back from financial ruin, said Michigan-native Kid Rock, the voice of "The Opportunity Made in Detroit" television ad campaign. The musician owns a waterfront home in Detroit on the same block as the mayor's mansion. "I have a nice neighborhood, and with a historic home and I understand that there's got to be some things in place, … but it's been a bit of red tape" to make upgrades, he told CNBC's "Squawk Box" on Wednesday—the day a federal judge will begin hearing arguments on whether the city's largest public bankruptcy in U.S. history can go forward. "From being here all these years, I know one thing: There's no place on Earth that I've been—and I'm not just saying this because I have a love affair with Detroit … with more style," Kid said. "The next five years to me looks like it's going to be the people. I don't think it's going to be the government."

Former real estate broker pleads guilty in $7 million mortgage fraud scam - (www.centralvalleybusinesstimes.com) James Lee Lankford, 74, formerly a Modesto-based real estate broker, has pleaded guilty to seven counts of mail fraud in connection with a mortgage fraud scam that looted elderly homeowners and lending institutions of millions of dollars, says U.S. Attorney Benjamin Wagner. Mr. Lankford’s husband, Jon Vance Lankford (formerly Jon Vance McDade), 49, also formerly of Modesto, pleaded guilty in September to one count of bank fraud in connection with the same mortgage fraud scam. According to his plea agreement, Mr. Lankford, who operated Century 21-Apollo Realty as a real estate agent and broker, fraudulently induced elderly property owners to sell their homes to him and to provide financing for his purchases. In return, he agreed to make interest-only payments and to pay the principal amount at a future date.





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