Tag Archives: foreclosures

In Some Parts of US Foreclosures are Still High

Chicago/Naperville/Joliet, Illinois

Yes, its true that the overall foreclosure rate in the US has declined, down by 28 percent for the year and 7 percent lower in January 2013 as compared to the year before. However, much of this reduction can be attributed to the new law passed in California which went into effect on January 1st.

"The U.S. foreclosure landscape in January was profoundly altered by the effects of new legislation that took effect in California on the first of the year,” said Daren Blomquist, vice president at RealtyTrac.

“Dubbed the Homeowners Bill of Rights, this legislation extends many of the principles in the national mortgage settlement — including a prohibition on so-called dual tracking and requiring a single point of contact for borrowers facing foreclosure — to all mortgage servicers operating in California. …As a result, the downward foreclosure trend in California accelerated into hyper speed in January, decisively shifting the balance of power when it comes to the nation’s foreclosure activity."

Yet many other areas of the country are still suffering the ill-effects of foreclosures. The following is a list of the 17 worst rates of foreclosure in the country, by city, according to RealtyTrac.

1.    Ocala, Florida: 1 out of 223 homes
2.    Miami-Fort Lauderdale-Pompano Beach, Florida: 1 in every 228 homes
3.    Orlando-Kissimmee, Florida: 1 out of 241 homes foreclosed
4.    Rockford, Illinois: 1 out of every 265 homes
5.    Stockton, California: 1 out to 277 homes
6.    Las Vegas-Paradise, Nevada: 1 in every 283 homes
7.    Chicago-Naperville-Joliet, Illinois: 1 in every 293 homes
8.    Jacksonville, Florida: 1 out of 301 homes
9.    Tampa-St. Petersburg-Clearwater, Florida: 1 in 307 homes
10.    Lakeland, Florida: 1 in every 332 homes
11.    Cape Coral-Fort Myers, Florida: 1 out of 336 homes foreclosed
12.    Palm Bay-Melbourne-Titusville, Florida: 1 in every 339 homes
13.    Port St. Lucie, Florida: 1 out of every 341 homes foreclosed
14.    Canton-Massillon, Ohio: 1 in 366 homes
15.    Atlanta-Sandy Srpings-Marietta, Georgia: 1 in 390
16.    Sarasota-Bradenton-Venice, Florida: 1 out of 391 homes
17.    Modesto, California: 1 out of 415 homes received foreclosure filing in January 2013.
 

Controversial Ads on Homes Helping Pay Mortgage

Billboard Homes Pay the Mortgage

On an otherwise quiet, ordinary street in a suburb of Los Angeles one house seems to have gone crazy. Painted in neon bright colors with several ads is the house of Scott and Beth Hostetler, a couple who are otherwise good neighbors, say their neighbors.

Tacky Look in Exchange for Bucks

Some neighbors were so shocked at the Hostetler’s home’s new look that they even considered calling the police; others were merely angry and confused, but the explanation, given the state of the country’s economy is really quite simple. In exchange for turning their house into a giant billboard the Hostetlers will receive $2,000 per month from the marketing company behind the scheme, Brainiacs From Mars.

Romeo Mendoza, the CEO and founder of Brainiacs explained that his goal is to turn at least 1,000 homes across America into gigantic ads for his marketing firm. For every one of his endeavors he will pay the mortgage, for up to one year.

"If we roll it out to scale and impact the foreclosure crisis, that would be amazing," Mendoza, 42, said.

Overwhelming Repsonse

In April 2011 Mendoza floated his idea on his website. Since that date ten months ago he has gotten 38,000 applications to participate, from even places as far away as Japan and Russia.

Mendoza says he picked the Hostetlers because they are nice people, and he decided to choose the most deserving families, even if their homes are not on the busiest streets. Mendoza checks all relevant zoning laws to be sure advertisements and brightly painted homes do not violate any local codes of law before he puts up his ads.

The majority of applicants are from Nevada, California and Florida, the three states in the US hardest hit by the housing crisis. Mendoza says his idea can help people who are struggling to keep their homes.

"The response has been overwhelming," Mendoza says. "People are hurting, and struggling to stay in their homes. If we can help some of them, that would be great."

Attracting Attention

Mendoza says his plan is to advertise his company’s name and social media marketing tools in front of people’s homes in the hopes of getting the attention of some big companies, who he hopes will hire him based on the originality and quirkiness of his scheme. Brainiacs, says Mendoza is indeed already negotiating with some large companies to run their ad campaigns.

The neighbors however are not happy. One neighbor is willing to put up with the new look of the house for one month, even though the Holstetlers want to keep the ads there for six. Another neighbor, 80-year-old Bob Pancoast, said: "All the neighbors were a little upset at first. We thought they had gone off their rocker. But I guess it's a good idea for them."

"I don't think the program will be a success. It will be akin to graffiti – that's how people are going to look at it. They are going to run into zoning problems everywhere," said housing industry finance expert Charles Mclaughlin.

Mendoza answers:

"There are definitely zoning issues in some cities, and we realize that. But we have really hit a nerve, and we can't let that stop us. Once people start seeing how it works, once they get it, the moment they realize it is paying people's mortgages, they are always on our side, because of this economy."