Wednesday, November 14, 2012

Thursday November 15 Housing and Economic stories


TOP STORIES:

Why the Foreclosure Crisis is Getting Worse - (www.usnews.com) Although the housing market is showing signs of recovery, other indicators show the foreclosure crisis is getting worse. In a September interview with U.S. News, Austan Goolsbee, the former chairman of the Council of Economic Advisers, said, "I think there's a lot wrong in the housing market. If Fannie and Freddie would start enabling people to rent out the vacant homes, that would also help." Some foreclosure facts:
·         The mortgage loans which are currently under the foreclosure process, is amounting to almost $45 billion (that is mainly in terms with negative equity)  
·         More than almost 12 million homeowners are currently considered to be underwater, who are still making payments

Valley Real Estate Agent Pleads Guilty to $2M Ponzi Scheme - (www.patch.com) A North Hills real estate agent and self-described investor pleaded guilty Monday to a federal charge stemming from a Ponzi scheme that conned dozens of victims out of at least $2 million. Celia Gallardo, 42, entered her plea to a single count of wire fraud in Los Angeles federal court and is expected to be sentenced on March 11. She was arrested in July by FBI agents and charged in a 16-count federal indictment with wire and mail fraud. According to the U.S. Attorney's Office, Gallardo -- who is also known as Celia Zagha -- bilked investors who put money into her purported year-long real estate investment program. The defendant didn't speak at the hearing other than to respond to the judge's questions, including whether she understood the rights she was giving up. "Guilty," Gallardo replied when U.S. District Judge Dean D. Pregerson asked for her plea.

Japan real estate prices back down to 1981 levels - (www.japantimes.co.jp)  Jesper Koll, an economist who has lived in Japan for 26 years, says it's not easy for him to keep faith in a country that's shrinking, aging, stuck in protracted economic gloom and fast losing ground to China as the region's dominant power. "I am the last Japan optimist," Koll said in a recent speech in Tokyo. Indeed, the once-common species has been virtually wiped out. It was only two decades ago that Japan's boosters — mainly foreign diplomats and authors, economists and entrepreneurs — touted the nation as a global model for how to attain prosperity and power. But the group has turned gradually into nonbelievers, with several of the last holdouts losing faith only recently, as the country has failed to carry out meaningful reforms after the March 2011 disasters.

Building restrictions amplify housing bubble swings? - (www.capefearbusiness.com) As a specialist in housing policy, he realized that blending all the local housing trends into a single national average obscured what was really going on. It led analysts of all political persuasions to try to attribute the origins of the Great Recession entirely to the actions of clumsy congressmen, clueless regulators, greedy bankers, or the Federal Reserve’s easy-money policies. And it led them to ignore the fact that housing booms and busts had plagued many other economies around the world during the same period. In his new book American Nightmare: How Government Undermines the Dream of Homeownership, O’Toole set out to correct the record. After defining a housing bubble as prices growing by more than 50 percent and then falling by more than 10 percent from their peak, O’Toole examined home price data for all 50 states and 381 metropolitan areas.

Foreclosed family watches helplessly as craigslist crowds strip house bare - (www.11alive.com) A family in Woodstock, who just lost their home of 20 years to foreclosure and are preparing to move out, lost even more on Wednesday. And it was all because they inadvertently triggered what they now call "mayhem" when they posted a craigslist ad Tuesday night. Their online post was just a well-meaning ad for a giveaway of furniture and other household items in their driveway outside the small house, a giveaway scheduled to begin at 10 a.m. Wednesday. But big crowds showed up early, while the family was out, breaking into the house and taking practically everything inside, in part because the way that the craigslist ad was written gave them the idea that everything on the property was up for grabs. 





No comments: