Sunday, July 22, 2012

Monday July 23 Housing and Economic stories



TOP STORIES:

Workers on Federal 'Disability' Exceed Population of New York City - (www.cnsnews.com) A record of 8,733,461 workers took federal disability insurance payments in June 2012, according to the Social Security Administration. That was up from 8,707,185 in May. It also exceeds the entire population of New York City, which according to the Census Bureau's latest estimatehit 8,244,910 in July 2011. There has been a dramatic shrinkage in the United States over the past 20 years in the number of workers actually employed and earning paychecks per worker who is not employed and is taking federal disability insurance payments. In June 1992, according to the Bureau of Labor Statistics, there were 118,419,000 people employed in the United States, and, according to theSocial Security Administration, there were 3,334,333 workers taking federal disability payments. That equaled about 1 person taking disability payments for each 35.5 people actually working.

Realtor Pleads Guilty to Millon Dollar HUD Mortgage Fraud - (www.mortgagedaily.com) Barbara M. Diaz (37, Lehigh Acres) today pleaded guilty to conspiracy to commit wire fraud and nine counts of wire fraud. Diaz faces a maximum penalty of 30 years in federal prison for each offense. According to the plea agreement, by at least April, 2008 through October, 2008, Diaz conspired with others to defraud mortgage lenders by way of making false statements in HUD-1 settlement statements. As part of the scheme, Diaz, a licensed realtor, recruited home buyers to participate in the fraud. Lenders were led to believe that buyers made down payments at closing, when in fact, the buyers made no down payment and were paid money outside of closing for buying the home.  As a result of the scheme, Diaz and others caused the mortgage lenders to provide unqualified loan applicants in excess of $1,000,000, collectively, towards the purchase of nine residential properties in Lehigh Acres. Diaz received commissions for the sale of the properties in exchange for her participation. Most of the properties have been foreclosed upon, which resulted in losses to the mortgage lenders.

Millions being wasted on vacant government buildings - (news.yahoo.com) How much does it cost to maintain a vacant building? After rent and utility bills? Quite a lot. That's why most people who own real estate usually work hard to sell or fill up any vacant building with lease-paying tenants. But a recent study found that the government doesn't seem to be in the same kind of rush. Hundreds of millions of your tax payer dollars are being spent to hold onto vacant and unused buildings around the country. Exhibit A: A mammoth structure in Georgetown, right in the heart of the nation's capital. The rooftop view looks out over the Potomac River, the Kennedy Center for the Performing Arts, even the Washington Monument. This is some of the most valuable real estate in Washington, D.C., and yet the building has sat mostly unused for more than a decade. There are an estimated 14,000 vacant or nearly vacant buildings owned by the federal government that cost taxpayers some $190 million a year to maintain, according to a White House spokesperson. 

Detailed review of the new changes to California foreclosure law - (www.ochousingnews.com) Dual tracking has always been part of the foreclosure process. Foreclosure is supposed to be a threat to compel a borrower to either pay up or sell and move out. Foreclosure is a threat designed to compel action. Banks use the threat of foreclosure to ensure borrowers are dealing with them in good faith. If a lender senses the borrower is not cooperating, they pull the trigger on the foreclosure to boot them out. This provision came about because some borrowers were frustrated when they were negotiating with one division at the bank, and another foreclosed on them. There were instances where the left hand didn’t know what the right hand was doing. Was this widespread? Probably not, but many people who were denied short sales, often without explanations for the denial, were foreclosed on, and they felt the process needed clearer procedures. Perhaps they are right.

House prices in New England crashing - (www.ochousingnews.com) The amend-extend-pretend policy of America’s banks is most pronounced in New England, particularly New York where the lenders live. There have been very few foreclosures despite high default rates, partly because the judicial foreclosure process in these states is log-jammed, and partly because lenders don’t want to foreclose and recognize their losses. Of course, this policy has prompted a great deal of strategic default among loan owners who recognize they can live for free, but it has succeeded in making everyone else believe their neighborhoods are somehow immune to the housing bust, at least until the last year when prices because to fall precipitously.




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