Foreclosures Up Sharply In Maine (Up 400%)

[MaineDem]

400% is horrendous!
Times are so tight for many Mainers. They are losing the money battle and their homes with it. Len Morley, an attorney who specializes in foreclosures, says cases are up 400% from this time last year.

"What I'm seeing mostly are relatively young loans," says Morley. "Loans that were closed in the past couple years. Either refinance transitions or acquisition transactions but loans that were closed in 2003, 4 or 5 are the ones going into default."

Morley cites a variety of factors for the sharp increase: people overextending in the last few go-go years of the real estate market, rising fuel costs, medical bills and general inflation at a time when most people's income is steady or falling. Another big culprit: Adjustable Rate Mortgages, or ARMs. Many come with a fixed rate for the first couple years, and then rise sharply for the duration of the loan, often increasing monthly mortgage payments by 300 or 400 dollars.

"If you're living with not much of a margin, then a couple hundred here a couple hundred dollars there a month is a lot of money," Morley says.

http://www.wcsh6.com/news/article.aspx?storyid=41286

[snappyturtle]

1. Is this what they call.....

tickle down economics?? :sarcasm:

[Imagine My Surprise]

9. No, it's what they call an ownership society

}(

[Gregorian]

14. As in, you just got owned.

Nice one, IMS!

Sort of like the Healhy Forests, and all of those other lies.

[struggle4progress]

26. Ownership society for them, temporary ownership society for the rest of us

[Kelvin Mace]

13. "Trickle down" means a corporation is

pissing on you.

[snappyturtle]

19. yeah...like banking corps and mortgage corps!

[girl gone mad]

18. More like...

meltdown.

[jpak]

2. I hope they pass this...

<snip>

When it returns to session, the State Legislature will consider the Predatory Mortgage Lending Practices Act, which aims to protect consumers from falling into foreclosure traps.

<snip>

[MaineDem]

3. Statement from the House Majority Leader:

August 8, 2006

AUGUSTA – Brent and Darlene Jellison never thought that they would be facing foreclosure on the home that they had lived in for 30 years. When medical problems sidelined their business and the bills began to pile up, they determined that refinancing their home in order to lower their payments was necessary. Months later, the Jellisons found themselves in the middle of a “living nightmare,” as the financing company they contracted with had boosted their rates, lost payments and moved to foreclose on their home. They had become victims of predatory lending.

Predatory lending is a growing and disturbing practice that affects nearly 1,000 Maine families each year, according to House Majority Leader Glenn Cummings, D-Portland. Cummings will join with Casey Family Services, and Coastal Enterprise, Inc. on Wednesday to bring attention to the growing problem of predatory lending in Maine, and to present the bill he is submitting to curb such lending practices.

“Predatory lending is a real, and serious threat to Maine families. When a family loses their home in Maine, we lose an important piece of our community, and that is something which should concern everyone,” said Cummings. “A few bad actors are taking advantage of the people who most need a hand in getting their finances in order, and it’s a practice that has no place in Maine.”

Cummings bill was drafted with the help of a report from CEI, a private, nonprofit Community Development Corporation and Community Development Financial Institution out of Wiscasset. His bill would lower the threshold that determines a loan as “high cost,” and require mandatory credit counseling to anyone taking out a high cost loan so they fully understand the risks. It would also prohibit penalizing customers for paying off high cost loans early, and block mandatory arbitration clauses that prevent consumers from having their day in court if their lender is treating them unfairly.

http://www.maine.gov/legis/housedems/news/cummings%20predatory%20lending.htm

[calimary]

4. Too bad that doesn't include this one place in Kennebunkport.

n/t

[sarcasmo]

5. 400% is a little more than sharply it's astronomical. Kick and NOM.

The foreclosure BOOM coming to your area soon.

[MaineDem]

10. "Astronomical" was the word I was going to use.

This is very sad.

Weren't foreclosures a warning of the Great Depression?

[sarcasmo]

17. Great minds flock together or something like that.

[happyslug]

24. No, the after affect.

Foreclosures take a while to finish. For example in my home state of Pennsylvania the Bank first have to give you a notice of their intention to foreclose along with the number of the State Mortgage Assistance Agency (Where if the causation of the Foreclosure is NOT the homeowners fault and he or she can be back on their feet within two years, the State will pay the Mortgage for that two year people and put a second mortgage on the property that the home owner has to pay back, this is often called the ACt 91 or Act 6 Notice).

If the Homeowner is unable to meet the requirements of the Mortgage Assistance Act (Or does not call Mortgage Assistance) after 30 days the Bank can file an Action in Foreclosure, that is generally entered as a default judgment no less than 30 days from the date the Action in Filed. Once the Judgment is entered, then and only then can the Sheriff Sale the home. Now The Sheriff LIST the property BEFORE the previous Sheriff sale. The Seller than has to wait till the next Sheriff Sale to sell the property. In my Home county the Sheriff sales are Three months Apart, In other Counties (Like Pittsburgh's County of Allegheny, it is done Monthly).

This in Allegheny County Foreclosures takes at least 90 days (30 days for the Act 91 Notice), 30 days between the Filing of the Complaint and the Entrance of Judgment and another 30 days between Sheriff Sales. In my Home county of Cambria County, the Sheriff sales are 90 days part so the minimum time if Five Months.

Now I use the term Minimum Time, it often takes longer. First if you Ask for Act 91 assistance and are denied you have the right to appeal that denial and during that appeal no action can commence (Provided to file the appeal within the required time period). This can add up to 90 days to the above.

Another delay can be done after the Filing of the Foreclosure Complaint, if you file an answer and demand a hearing on any dispute. If you have no basis to object to entrance of a Judgment you can delay it 30-60 days, if you have a real defense you an delay the action up to six months.

Once Judgment is entered timing is important. If the Judgment is entered the day AFTER the last Sheriff Sale, the property can not be listed till the Next Sheriff Sale to be sold and the Sheriff Sale after that date. This can add 30 days in Allegheny County and 3 months in Cambria County.

Finally you can file Chapter 13 Bankruptcy. If you can show you can make the monthly mortgage payments AND get catch up within 36 months (or 5 years with Court Permission) any foreclosure can be delayed or even stopped. Even if you can NOT make the payment the mere action of filing the Chapter 13 will delay any Sheriff sale at least another 30 days.

Thus in Cambria County a house may not be sold by the Sheriff for up to a year AFTER the bank decided to Foreclosure (Up to nine months in Allegheny County). Now that is if the Bank is diligent and most are not, thus you have additional delays that will occur, including the delays in the bank even deciding to Foreclosure. I have know banks want YEARS before starting the Foreclosure procedures (and others that start if you miss the payment by a day).

Most other states have similar policies and programs, it varies from state to state and you will have to check with an attorney form your home state for the exact procedure in your state, but as you can see it can take up to a year or longer to foreclosure, thus foreclosure is often an indication of how things were six months to a year ago, as opposes to what it is now or will be in the Future.

Thus in the Great Depression Foreclosure occurred as the Depression became worse NOT as the Depression started.

[lonestarnot]

6. So much for the ownership society under bushitler the unitary decider.

[MissB]

7. Sharply? Uh, 400% isn't sharp.

Wayyy more than sharp.

[newblewtoo]

8. Were do poor live in Maine?

I saw this article a few days ago. Wow, this is WORK FORCE housing in Maine?


<excerpt> YORK, Maine -- A final draft of what Town Planner Steve Burns calls "a pretty unworkable" work-force housing ordinance will be brought before the selectmen for a public hearing two weeks from today, Sept. 18.

The hearing will cap what has been a particularly gnarly selectmen's review of the ordinance. The ordinance would allow for higher density to make it affordable for its target audience, those earning between $59,000 and $95,000 for a family of four. Selectmen and members of the public have raised many concerns about it, causing the Housing Authority and Burns to go back to the drawing board several times. <excerpt>

Link: http://www.seacoastonline.com/news/09042006/mainenews-p...

York use to be a bedroom community for the Shipyard, no wonder people are going bust. What do they pay now a days?

[MaineDem]

11. Really good question

Affordable housing is a MAJOR issue around the state. Second-home owners both on the coast and in the Lakes/Mountain regions are causing the prices of homes to skyrocket. Local people, who have grown up in he towns, are becoming unable to afford to live in their towns. There's really no place to go. Towns are sadly lacking in affordable housing for working families.

In fact, one school superintendant told me he can't attract new teachers because there are no places for them to live in the district.

[newblewtoo]

12. Southern York County

I remember back in the '70's when several Southern York County towns modified their zoning to require between two and five acres lots for new single family housing. That greatly increased prices but reduced the number of new houses being built. (The goal).

Is there any affordable housing left south of Portland?

What does a new teacher make in Maine? How are rental prices?

[MaineDem]

15. Average is about $39,000

Maine's teachers' salaries will go to $30,000 by 2007 because of a bill our Governor proposed and signed.

Right now, the minimum salary (pathetic) is $15,000.

Average pay for Maine teachers is about $39,000 while beginning teachers' average salary is about $25,000.

I don't know about rents, especially in southern Maine. I don't think they're cheap.

[Maine-ah]

34. rent is just as much as a mortgage payment or more.

before MBNA came out of my area, you could pay upwards of $700 per month for an average 2 bedroom apartment. Rent was way cheaper before they moved in. After they left, rents have come down a little bit.

The poor areas, at least in my area, are pretty run down apartments that are just renovated victorian type houses. There are a few apartment condo-type "affordable" housing places in the area. Many towns try to fight these from coming in.

But this is all north of Portland. Doesn't really answer your question.

[girl gone mad]

20. It's a problem all up and down the coasts...

and even in resort areas away from the coasts. People have been buying up "vacation" homes as investment properties. This doesn't really make any economic sense for the buyers and it has had a devastating effect on the working class in these communities.

[newblewtoo]

23. When I left Maine in '86

things were getting bad tax wise. Last time I looked Maine had the second highest tax burden in the country.
Folk from away have always had vacation homes in Maine. I remember tourism as one of the biggest industries. I went back on vacation this summer and stopped for and ice cream at Perkins Cove in Oqunquit. The kids serving were here on visas, has even the tourism industry been contracted out!

[Maine-ah]

35. many of the restaurant that I service have "imported"

their cooks and dishwashers. But the tourism industry up here is slowly dying. It was a different generation that would come here every year. Now, people find better places to go than the places they were dragged to as a kid by their parents or grandparents.

As for purchasing a home, we are still way less expensive than the surrounding states. For example, my house would sell for well over 300k in Massachusetts. I bought it for 85k, and I pay less than 1k per year in taxes. It all depends on where you live up here too. If you live on the water, yeah, you're gonna pay a butt-load in taxes. If you live smack in the middle of town, yeah, you're still gonna pay a lot in taxes, but it's still less than in surrounding states.

[AnneD]

21. You see that in resort areas too....

folks making minimum ages or low wages and there is absolutly no affordable housing close by. I work as a nurse. Certainly what you would call an essential, educated worker, and an asset to any community. Yet I could not afford a home. Wages were so supressed compared to the cost of living that no amount of OT would help me. Trophy homes and apartments, that was it.

It is really a sad day when policemen, firemen, teachers, and nurses can't earn enough to afford a home.

[shrike]

31. What's even sadder

Is that when affordable housing is proposed for an area, people are afraid it'll bring "trash." Yeah, like the trash that saves your life, home and property.

[AnneD]

33. Some places with high housing costs...

have even been forced to help us 'trash' with housing subsidies like forgiven grants and loans just to get us to consider moving there. The shortage of key people is so bad and pay and cost of living are determining factors. There is already a nationwide shortage of all of these folks and it will get worse as the boomers retire and the younger folks are not going into these positions (and small wonder-they have big student loans to pay off and even tinier salaries in which to pay them off). Teacher, police, firefighters, and nurses are solid right in the middle middle class. What does that say about this country if the middle class cannot find an affordable house.

These speculative investors that buy and flip homes are going to get caught with their pants down and frankly I won't be shedding any tears. And these resort area home owners better wake up. It doesn't matter how pretty your view or how grand your house....when you are on your nice stone tile floor, clutching your chest with one hand and a phone in the other and 911 doesn't have a first responder to come to your house-you fucked yourself...too bad so sad.

[shrike]

38. Amen n/t

[Matariki]

28. People buying and selling houses as an 'investment'

as opposed to buying them for what they're meant to be - a place to live - are causing prices to skyrocket. We, as a society, really need to rethink this.

[LostinVA]

36. LIke the NC coast around Wilmington, the Florida Keys, etc.

I know Aspen buses in most of their workforce. Literally.

[ryanus]

16. POP!

It's already begun.

[goforit]

22. WOW!!! Hmmm...Poppy's house value going down? LOL!!!

[judaspriestess]

25. 100% financing is a big culprit

they have nothing invested into these homes. And you can buy again 2 years after a foreclosure

[Matariki]

29. GREED is a big culprit

I looked at a house tonight that the sellers bought just 2 years ago for $100k less than what they're trying to sell it for. You can tell their motive was purely 'investment' by the superficially nice Home Depot cabinets and 'designer' paint job.

I'm just baffled. I make 70k a year and I'm single, I have a 20% down-payment saved up, and yet anything I can afford (and by afford meaning HALF my take home pay) is a crappy little cinder-block 'ranch' house way outside the city limits. I don't understand how a family can afford to buy a house unless both people are working at high paying jobs. SOMETHING has got to give.

[humbled_opinion]

27. I think a lot of this has to do with...

The BRAC under the latest round of approved cuts all of the Maine Military bases are being shut down. Of course contractors and government employees at those bases that bought houses are recently being layed off.

[fasttense]

30. 400% increase in Foreclosures?

Sounds like the Great Depression. Things are going to get really ugly for the American Middle class. Should we start building Hoovervilles? Maybe a more apt name would be bushvilles.

[babylonsister]

32. With the (s)election in 2000, my then 72 year old dad predicted

poor houses would be making a comeback. I think I'll go ask him for some lottery numbers.
But the economy is just bustling along, doncha know.:eyes:

[AngryOldDem]

37. That is unbelievable

But I do believe it. I also think that ARMs are real-estate Russian roulette, but I'm neither a real-estate nor banking expert.