KeNo's Housing and Economic Portal: Monday April 15 Housing and Economic stories

Sunday, April 14, 2013

Monday April 15 Housing and Economic stories

TOP STORIES:

More than 300,000 US homes are foreclosed 'zombies' - (www.businessinsider.com) A national survey found 301,874 "zombie" properties dotting the U.S. landscape in which homeowners in foreclosure have moved out, leaving vacant property susceptible to vandalism and degradation. Florida tops the list of zombie properties with 90,556 vacant homes in foreclosure, according to a foreclosure inventory released on Thursday by RealtyTrac, a real estate information company in Irvine, California. Illinois and California ranked a distant second and third with 31,668 and 28,821 zombie properties respectively on the list.

Successful loan modifications require increasing borrower entitlements - (www.ochousingnews.com) During the course of foreclosures when parties are discussing or attempting loss mitigation, borrowers submit financial records for lenders and servicers to review. Sometimes, these records show a borrower’s financial condition to be unhealthy – not due to hardship like loss of job, reduction in income, divorce, medical bills, or funeral expenses – but due to uncontrolled, undisciplined, and/or unnecessary personal discretionary spending. Review of some financial records have shown significant funds being spent on fast food, food deliveries, music downloads, lingerie, vacations, gambling at casinos and online, and even psychic advice instead of on existing financial obligations. A couple of years ago, I profiled the OC Housewife, Peggy Tanous in The real Ponzis and posers of Irvine. She got plastic surgery while she wasn’t paying her mortgage. “Orange County women are very big on up-keep. Some people go in for boob jobs has much has they go in for oil changes.” – Peggy Tanous commenting on her third boob job. “The Real Housewives of Orange County” Episode Five. Back when she was contemplating the boob job, did her and her husband look at their income and their obligations and decide it was better to have big tits than pay a mortgage? Lenders must love that kind of decision making. Entitlements trump financial obligations every time.

Fannie/Freddie worked so well, let's do it again! - (www.wcvarones.com) …The future of housing finance in this country seems to be coming down to two taxpayer-backed concepts. One is the status quo, with Fannie Mae and Freddie Mac continuing to back the vast majority of mortgages. The other is a newly conceived public guarantor with some of the same problems that got Fannie and Freddie into trouble. Let’s begin with the status quo. The taxpayer rescue of Fannie and Freddie in September 2008 has cost $137 billion so far. While this has been paid down from an initial $187.5 billion, taxpayers aren’t likely to get their money back anytime soon. Last fall, the regulator charged with overseeing Fannie and Freddie estimated that the taxpayer bill for the companies could be $200 billion by the end of 2015.

Cyprus bank controls to last a month, minister says - (www.reuters.com) Cyprus conceded on Thursday that tight capital controls would remain in force longer than expected as the island's banks reopened for the first time after the government was forced to accept a tough EU rescue package to avoid bankruptcy. Cypriots lined up calmly to withdraw limited amounts of cash, but there was no sign of a run on deposits, as had been feared. Banks were shut for nearly two weeks while the government negotiated a 10 billion euro ($13 billion) international bailout, the first in Europe's single currency zone to impose losses on bank depositors. Curbs on money movements imposed after the bailout would be phased out over about a month, Foreign Minister Ioannis Kasoulides said. "A number of restrictions will be lifted and gradually, probably over a period of about a month according to the estimates of the central bank, the restrictions will be fully lifted," he told reporters.

France's Hollande to shift 75 percent tax onto companies - (www.reuters.com) French President Francois Hollande said on Thursday that he planned to alter his election campaign proposal for a 75 percent tax on income above 1 million euros to put the burden on companies rather than individuals. Hollande said during an interview on France 2 television that he would redraft his original super-tax plan, which has been rejected by the constitutional council, so that companies would pay a 75 percent tax on salaries above 1 million euros ($1.28 million).

OTHER STORIES: