“Untold millions of dollars that banks could have recovered from the sale of distressed Florida homes have instead been pocketed as profits by a new breed of property flipper.

These flippers target houses on the verge of foreclosure and persuade banks and mortgage companies to accept lowball buyouts, sometimes by using questionable appraisals and not disclosing that a quick sale at a higher price has already been arranged, experts say.

No one knows how widespread the scheme has become. But a national glut of short sales — pre-foreclosure sales in which the lender agrees to let the house sell for less than the mortgage owed — has spawned a small industry of short-sale flippers, some of whom use these questionable tactics, experts say…”

Read the article: http://www.heraldtribune.com/article/20091115/ARTICLE/911151083/-1/NEWSSITEMAP?tc=autorefresh

“With a $165,000 price tag, the two-story, four-bedroom house for sale in Avondale was a steal.

Three years ago, when the house was new, a family paid $416,000 for it.

But its soaring living-room ceiling, whirlpool bath, three-car garage and pool with a slide and waterfall weren’t enough to make it much more than a handyman’s special.

Thieves made off with the home’s $30,000 custom-kitchen and other fixtures after it went into foreclosure…”

Read the article: http://www.azcentral.com/arizonarepublic/local/articles/2009/09/08/20090908junkyhomes0908.html

“You warn that the other shoe is about to drop when it comes to foreclosures in Arizona. What are you referring to?

Goddard: Billions of dollars of payment-option adjustable-rate mortgages(ARMs) were originated in Arizona, particularly near the end of the housing bubble. These loans allowed many consumers to buy homes and make a minimum payment that is only a fraction of the interest due on the mortgage. More than 120,000 payment-option ARMS are expected to reset in Arizona in the next 12 months. According to experts, a large percentage of payment-option ARMs could default once the reset is made…”

Read the article: http://www.azcentral.com/arizonarepublic/opinions/articles/2009/08/24/20090824aztalk-newsmaker24.html

“What’s keeping troubled homeowners from getting mortgage help? Start with the fax machine.

Most loan servicers taking part in the Obama administration’s mortgage modification initiative require that borrowers fax in their applications and supporting documents. And because faxes can be problematic, aid can be delayed or denied.

The fax isn’t the only source of complications. Borrowers and housing counselors complain of endless waits on hold, lost paperwork and incorrect information from customer service representatives.”

Read the article: http://money.cnn.com/2009/08/11/news/economy/dumb_reasons_no_mortgage_modification/index.htm?postversion=2009081110

“Even as Americans suffer rising unemployment, foreclosure rates in three states hit hardest by the housing bust — California, Arizona and Florida — stabilized in June, offering hope that the worst of the real estate crisis is over, according to The Associated Press’ monthly analysis of economic stress in more than 3,100 U.S. counties.

The latest results of AP’s Economic Stress Index show foreclosure and bankruptcy rates held steady from May in some states. Yet mounting unemployment is hampering an economic recovery in some regions, especially the Southeast and industrial Midwest.”

Read the article: bit.ly/11E1Xe

“The Obama administration, scrambling to get its main housing initiative on track, extracted a pledge from 25 mortgage company executives to improve their efforts to assist borrowers in danger of foreclosure.

In an all-day series of meetings Tuesday at the Treasury Department, government officials reached a verbal agreement with the executives for a new goal of about 500,000 loan modifications by Nov. 1 and stressed the program’s urgency.

The sessions came amid concerns that the Obama administration will fall far short of its original goal of helping up to 3 million to 4 million troubled borrowers with modified loans.”

Read the article: http://bit.ly/BM2yo

“Arizona legislators and real-estate advocates met Tuesday morning to try to work out a last-minute compromise on controversial changes to the state’s foreclosure laws.

Representatives from Gov. Jan Brewer’s office and the state banking industry were also part of the meeting. Other meetings continued throughout the day as real-estate lobbyists tried to explain the unintended harmful consequences of Senate Bill 1271. ”

Read the article: http://bit.ly/zURRa

by Michelle Lind, AAR General Counsel/Assistant CEO

Sen. Steve Pierce, sponsor of SB 1271, feels the bill needs to be fixed due to the unforeseen and unintended consequences of the legislation. He has asked the Legislature and the Governor’s office to repeal the bill so that legislators and industry stakeholder groups can work on a new bill to accomplish the original objective of 1271- to help small community banks in Arizona.

Pierce met with AAR and other stakeholders yesterday to discuss changes to the legislation. The consensus was that there is a more direct way to assist local Arizona banks, who were not eligible to receive any TARP funds, on the ever-growing foreclosure issue.

AAR will continue to work with the Legislature and the Governor’s office on this important homeowner issue.

We’d like to thank Sen. Pierce for all of the time and energy he has put into working on this complex issue as well as for being an open listener and participant in the discussions with all of the engaged stakeholder groups.

Please check www.rallinow.com for more information on this as it develops.

“SB 1271 dramatically alters well settled Arizona law on the relationship between Arizona residential real estate owners and their lenders. The bill has far reaching effects, well beyond those testified to in committee… We respectfully request that you amend your Call for Special Session to permit the Arizona Legislature to reconsider these amendments to our laws.”

Read the letter to the governor as well as practical and legal issues with SB 1271: http://www.aaronline.com/documents/GBrewer072209.pdf

One of over 200 bills pushed through the legislature in less than a month was a big change to an existing law that provided protection to borrowers in some cases against a deficiency judgment when their property went through foreclosure… AAR General Counsel Michelle Lind’s interpretation of the statute is that after September 30, 2009, properties sold at trustee’s sale likely will not qualify for the anti-deficiency exemption unless the trustor lived in the single one-family or single two-family dwelling for at least six consecutive months.

Read the full update from AAR CEO Tom Farley: http://www.rallinow.com/issues/show/60