Foreclosure Case Analysis

Statistics shows that due to foreclosure murder rates, homelessness, and vacant properties has increased dramatically this year alone. The financial crisis is affecting the health of the economy and is fueling in recession.. This has created much problems

In the United States, the lending industry’s lack of aggressive monitoring was a big part of the housing market crash of 2006. The Las Vegas housing market, once a booming industry in 2003 to 2005, is now one of the top 3 cities in foreclosure properties. I sat with Suzanne Pashnick to get her take on what happened, who is to be blamed and what can be done for the city to recover. Suzanne has been in the real estate field since 1995 and began her career in Michigan. In 2005, she moved to Las Vegas and continued her career in real estate and is currently an agent for CENTURY 21 MoneyWorld and remains licensed in Nevada.

In conclusion, homeownership in the United States have decline over the past years even being the lowest it has ever been, but has had an improving and strong market beginning in 2012 after a 27% decline from the 2006 peak, and the increasing homeownership rate is a worthwhile policy to allow the United State economy to

Post-housing/financial crisis of 2007-2009, the housing market seems to be showing signs of improvement after great downturn. With the downturn in housing prices, many homeowners did not have enough equity to avoid taking a loss on the sale of their homes so they are sitting with home loans based off of higher-than-current mortgages. However, in November the National Association of Home Builders’ sentiment index jumped to 20, which is the highest reading in over a year. Demand for mortgages has also seemed to pick up a bit according to the Fed’s 4th quarter loan survey. Construction remains at historically low levels but has increased as of late, and the number of

Jan, Tracy. “America's Affordable-Housing Stock Dropped by 60 Percent from 2010 to 2016.” Chicagotribune.com, Chicago Tribune, 24 Oct. 2017,

Which city has a greater percentage of homes with real estate values between $55,000 and $85,000?

Foreclosure has become an outbreak affecting the entire United States of America. Realtytrac just reported in the month of April 2011 that one in every 593 housing units received a foreclosure filing. (N1) That statistic is for just one month! Some states such as Arizona, California, Florida, Michigan and Nevada continue to be plagued with an influx of homes falling victim to foreclosure or some other form of default. Each home that is a casualty to a foreclosure, short sale or even bankruptcy was collateral for the lender holding the promissory note. The consequences tend to come at a cost for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the

Meanwhile, yearly house price inflation rates in the top 20 cities are running in line with the national trend. The cities with the highest rates of increase are Seattle (+12%), Portland (+10%) and Dallas (+9%). Lower tier property prices appear to be more volatile than their high end counterparts in both Seattle and Portland. Meanwhile, the three cities with the lowest rates of house price inflation are New York (+3%), Washington (+4%) and Cleveland (+5%). Furthermore, rising house prices appear to be having an adverse impact on affordability. According to the National Association of Realtors, rising prices are offsetting higher disposable incomes and stable mortgage rates, and affordability has consequently been declining since January 2015. Partly driving the increase in prices is a lack of available supply of existing single family homes for sale. The number of months’ of unsold inventory was just below 4 in March and availability has been gradually falling since 2014. Additionally, there is a relatively tight supply situation for new single family homes for sale, which is also helping to support prices.

As of December 2015 more single family homes entered the marketplace for sale and with sales volumes increasing as these properties appreciate in value. Today’s trend has recovered more than 50% when comparing the previous real estate market peak year prior to

In 2007, there were over 1.28 million foreclosure filings. The number of foreclosure filings remained above historical national averages for eight years, growing every year until 2010, when levels capped at 2.87 million. According to RealtyTrac’s 2014 Year-End U.S. Foreclosure Market Report, national foreclosure filings--including bank repossessions, default notices, and scheduled auctions--saw an 18 percent decrease from 2013 to 2014, but still had not reached pre-recession levels. In 2015, nearly 700,000 of boomerang buyers will be eligible for new homes, according to TransUnion. Over the next five years, 2.2 million borrowers will again be eligible for mortgage credit as their seasoning periods expire.

Miami was hit very hard by the sub-prime mortgage crisis of 2008-2009, but according to recent housing data, Miami’s housing market is recovering rapidly. Average housing prices, both condominiums and single-family homes, have increased greatly from the bottom that occurred after the crisis. Data from the last quarter of 2013 reported by the Economic Development Division of Miami-Dade County showed an increasingly strong real estate market, as single-family median home prices were up approximately 16% year-over-year and foreclosures down 6% year-over-year (Cruz and Hesler).

Foreclosure is a dreadful aspect of home-owning. The American foreclosure crisis, and its subsequent economic recession, was caused by lateral misguidance on part of private banks, the federal government, and by the millions of people who purchased their homes on credit. Over 900,000 foreclosures have occurred in California alone, making its foreclosure rate the largest and most formidable; as a result of the housing downturn, private banks like JP Morgan and Wells Fargo succumbed to bankruptcy, as the toxic assets they possessed lie curdled and menacing. Stocks tumbled as confidence in our financial system crashed; millions of people lost their jobs in the course of one petrifying year. The lending process was halted, effectively stalling

“Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000…”

The United States economy has been in trouble for the past couple of years. The foreclosure crisis is a condition that began due to the inability of homeowners to pay their mortgages. Foreclosure is a legal proceeding whereby a lender obtains a legal termination of a debtor’s right to redemption. The foreclosure rates have been increasing for a considerable period and certain steps have been put into place to solve the problem. While the government, financial institutions and the general public are highly aware of the crisis, the steps taken to combat the problem are still not sufficient as the foreclosure rates are still increasing.

Around 2006 the price of houses began to fall substantially fast. “The oversupply of houses and lack of buyers pushed the house prices down until they really plunged in the late 2006 and early 2007” (The Subprime Mortgage Crisis Explained). These actions threw investors into a big dilemma. In the beginning they believed buying the mortgages would bring them a profit, but quickly realized that the mortgages would cost them more financial damage than reselling the homes. “Nationwide, home vales have declined about 16% since the summer of 2006 and experts project that the drop will continue until homes have lost about 25% of their value” (Biroonak, 2008). In other words mortgage homes are “underwater”, that is, the mortgage owed equals or exceeds the value of the house (Biroonak, 2008). Investors and homeowners started to go more in debt trying to pay off their original debts.