DS News - Digital Archives

August, 2012

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IN THE NEWS Arkansas California 90+ Day Foreclosure Unemployment Delinquency Rate RateRate may 2012 90+ Day Foreclosure Unemployment Delinquency Rate RateRate may 2012 rank: 42 4.43%1.88% 7.3% rank: 31 3.32%2.76% 10.8% year ago year ago 3.12%2.00% 8.1% 5.01%3.10% 11.9% percent point change percent point change 41.9%-6.1% -9.9% -33.7%-11.2% -9.2% Top County Top County BRADLEY COUNTY 90+ Day Delinquency Rate may 2012 LAKE COUNTY Foreclosure Rate 90+ Day Delinquency Rate Foreclosure Rate may 2012 3.03%4.35% 3.83%4.53% year ago year ago 3.43%3.19% 5.09%3.91% percent point change percent point change -11.7%36.5% -24.7%15.9% Top Core-Based Statistical Area Top Core-Based Statistical Area MEMPHIS, TN-MS-AR may 2012 RIVERSIDE-SAN BERNARDINO-ONTARIO, CA 90+ Day Foreclosure Delinquency Rate Rate may 2012 6.70%3.28% 4.65%3.87% 90+ Day Delinquency Rate Foreclosure Rate year ago year ago 5.72%2.64% 7.08%4.37% percent point change percent point change 17.0%24.5% -34.3%-11.5% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. STAT INSIGHT 495 Number of homes added to Arkansas' REO inventory during the second quarter of this year, giving it a foreclosure rate among the 10 lowest in the country. Source: RealtyTrac 76 MASTERS Offering an award-winning track record of customer care excellence within Mid-volume environments that include… » Web Optimizers » 24 Hour Sales/Marketing » Immediate Field Response Team » 95% Cash for keys success rate » BPO Turn Time: 48 hours » 99% Sales price to BPO » Average DOM: 60 days » 34 average days to close » 2% fallout rate GENA LEE CENTURY 21 MASTERS 20803 Valley Blvd. Suite 206 Walnut, CA 91789 866-988-6689 direct genaleec21@aol.com County Considers Using Eminent Domain to Tackle Negative Equity In San Bernardino County, an idea is being explored that would apply the concept of eminent domain to solve the problem of underwater homes in the area. Through eminent domain, the government can take private property from an owner if it can be argued that a greater public interest would be served by doing so. The property owner does receive "just compensation" for the seizure, but the owner does not get to negotiate the amount. Instances of this have been more commonly seen in cases where highways or public facilities need to be built. The use of eminent domain proposed in San Bernardino County, and supported by the cities of Ontario and Fontana, differs from more familiar applications in that it involves the forced purchase of homes from underwater borrowers at "fair" market value. This use of eminent domain was first presented by Robert C. Hockett, a Cornell University law professor. Dubbed the Homeownership Protection Program (HPP), the potential solution proposes to have the local government purchase private label loans from current, underwater borrowers by using financing from Mortgage Resolution Partners. The program would have the original homeowner stay in his or her home, but with a new mortgage and a lower principal balance. Mortgage Resolution Partners first approached San Bernardino County with the idea. In order to further consider the program, the board of supervisors in San Bernardino County approved a resolution to establish a Joint Powers Agreement (JPA) with Ontario and Fontana and other cities that decide to join the initiative. Amherst Securities explained in a report that when the loans are refinanced, proceeds would be used to pay back investors who helped finance the program. Many argue that something needs to be done to help underwater homeowners, and Amherst is one of the biggest proponents of such relief. The mortgage securities brokerage, however, says it disagrees with the approach the California county is considering. "We believe this use of eminent domain sets a troubling precedent by targeting performing

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