FINALLY! The Attorneys General of New York and Delaware a are investigating the part large Wall Street investment bankers played in creating the mortgage melt down. California Attorney General, Kamala Harris, may join in this investigation. The investigations may result in criminal charges if past illegal activities are uncovered.
Select this link to view the entire Los Angeles Times story:
The big banks seem to think that they are above the law. Perhaps those large campaign contributions make them feel immune. It is obvious that their quest for larger profits blinds them to banking laws and regulations. Occasionally, their arrogance costs them a nice chunk of change. This week two of the big boys had their hides nailed to the barn door but the Feds.
The FTC nailed Countrywide Home Loans for overcharging distressed homeowners during the foreclosure process. The Federal Trade Commission is mailing out 450,000 checks to homeowners who had been overcharged for numerous fees. Bank of America, who purchased Countrywide in 2008, has agreed to pay out $ 108, million dollars for the past illegal activity. There is no mention of any member of Countrywide management going to jail.
Select this link for the full Wall Street Journal Story:
(Of course, the Wall Street Journal is owned by Rupert Merdoch.)
In another story, Wells Fargo was hit with an $ 85 million dollar fine by the Federal Reserve for pushing well-qualified borrowers into less desirable, higher interest rate loans. Again, there is no indication that anyone from Wells Fargo Management went to jail!
Select this link to see the complete CNN Money story:
If you rob a bank, you go to jail. If you work for a bank and rob the customers, you get off Scott free!
Mortgage servicing companies were called to task last fall when it was discovered that the companies handling the documents for the many thousands of foreclosures were not even reading the documents. Employees were just signing them to expedite the foreclosures and move the mountains of paperwork down the pipeline. The big banks suspended foreclosures while they investigated the “robo signing” process and committed to fixing their systems.
Apparently, that was all an exercise in public relations. Various county clerk offices around the country are reporting that documents continue to come in with questionable signatures. Families are losing their homes to foreclosure through fraudulent processes and nothing has been done to correct the problem. The Attorneys General have not stepped in to investigate these CRIMES, perpetrators are not being arrested and the banks continue to operate with impunity. WHEN IS IT ALL GOING TO STOP?
Select this link to view the alarming Associated Press Story:
This is the latest monthly report of a nearly four-year study of bank owned home sales in El Dorado Hills, CA. This report covers June 2011.
There were 19 REO homes sold in El Dorado Hills in June, two more than sold the previous month.
The average days on market increased from 66 in May to 72 in June. Three of the homes had been on the market for over 100 days, one for 367 days. However, 32% of the homes that sold were on the market for two weeks or less. Well-priced homes in good condition are still selling quickly.
The 19 REO homes that sold represent 24% of ALL homes sold this month.
The available inventory of REO homes in El Dorado Hills decreased from a 1.2-month supply the previous month to a .9-month supply in June. The available inventory for ALL homes decreased from a 4.0-month supply the previous month to a 3.1-month supply in June, the lowest level in fourteen months. Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills.The average cost-per-square-foot for REO homes was $ 128 in June, down from $ 130 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in June dropped to $ 149, down from $ 155 the previous month.
The overall sales price for REO homes was 99.1% of the final asking price and 94.6% of the original asking price. Yet 53% of the buyers paid the full asking price or more for their REO homes in June. Apparently, these homes were well priced and buyers decided to take advantage of low prices and excellent mortgage interest rates.
REO buyers paid 86% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for all homes sold in June. That is a $ 21 pre-square-foot savings. When applied to a 2500 square foot home that represents a savings of $ 52,500, a considerable sum. Most buyers would consider that sufficient reason to accept the fact that REO buyers must relinquish some of the rights the have when buying a home in a normal sale.
If you have any questions about purchasing an El Dorado Hills REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
This is the latest monthly report of a nearly four-year study of bank owned (REO) home sales in Folsom, CA. This report covers June 2011.
There were 23 REO homes sold in Folsom in June, a 26% increase over the previous month.
The average days on market dropped from 53 for two months in a row to 49 in June. Two of the homes had been on the market for over 100 days and one had been on the market for 244 days, skewing this statistic slightly. However, 22% of the homes that sold were on the market for two weeks or less. Well-priced homes in good condition are still selling quickly.
The 23 REO homes that sold represent only 25% of all homes sold this month, on the lower end of the normal range. REO inventory is very low.
The available inventory of REO homes in Folsom dropped to a 1.3-month supply, the lowest inventory level in the past fourteen months. The available inventory for ALL homes available declined from a 2.6-month supply the previous month to a 2-month supply in June, also the lowest inventory level in the past 14 months. Pundits advise that a 6-month supply is a neutral market, so we are still looking at a strong seller’s market in Folsom.
The average cost-per-square-foot for REO homes was $ 142 in June, the same as in the previous month. The average cost-per-square-foot for all homes sold in Folsom in June dropped to $ 153, down from $ 156 the previous month.
The overall sales price for REO homes was 103.71 % of the final asking price. In addition, a full 31% of the buyers paid the asking price, or more, for their REO homes in June.
REO buyers paid 93% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in June. When applied to a 2500 square foot home, that represents a savings of $ 22,500: a considerable savings.
Note that the first home on the attached spreadsheet was a one bedroom, one bath home built in 1911 with a total of 653 square feet. The asking price was $ 31,500 and a buyer decided that the true value was $ 82,000! One would guess that an investor has major renovation plans in mind.
If you have any questions about purchasing a Folsom REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.
The data Follows: