Talking about thinking about acting
An interesting map of January foreclosures in Boston, from John Keith's Boston Real Estate Blog. The map underscores that foreclosures tend to cluster. When they do, the surrounding neighborhood tends to suffer. Hendry Street in Dorchester is so far the worst-case example.
I mention this apropos of two stories in the news this morning. First, the Wall Street Journal reports that several major philanthropies are considering how to help stabilize neighborhoods. Proposals include spending money on counseling, on refinancing loans and on buying foreclosed homes.
Second, the executive branch is voicing its opposition to the various bailout plans for mortgage lenders circulating in the legislative branch. Senior Democrats are talking with industry groups about the possibility of buying large numbers of loans, which would limit lenders losses and preserve borrowers from foreclosure. Treasury Secretary Henry Paulson panned the idea yesterday. Today, Paulson's boss chimed in.
The plan, said President Bush, would "do more to bail out lenders and speculators than to help American families keep their homes."
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Has anyone done an analysis of the types of properties being foreclosed in the Boston area? In my mind, there is a big difference between a foreclosure of a homeowner who is going to lose the house they are living in vs. a speculator who purchased a house in order to do a flip. An investor who is losing a rental property to foreclosure is in a different boat also.
The folks who we really have need to watch out for are straw-buyers who bought a home simply to bail out a crooked developer. The developer basically pays these "buyers" money from the sales proceeds to have their credit records ruined.
Also how many mortgages that are being foreclosed on never had payments made to them? (Yes it happens!)
When you refinance your home, who gets the check?
By definition, all refinancing efforts bail out banks. Not borrowers. So Paulson is correct on this one, at least. Stopped clock and all that.
Also, the map is interesting, but actual foreclosures are backward-looking. By the time a foreclosure is reported, the borrower got into trouble many moons ago. That's why we are still seeing so much foreclosure activity in subprime areas, because those were the first hit.
I find it interesting search the Registry's database of orders of notice, which are the first public step in the foreclosure process. Now, you are beginning to see orders of notice on houses in tony neighborhoods. Look for the trend to continue.
Marcus, how can I search Registry's database of orders of notice? I am trying to buy a house and what to search for a good town for my kids, that data may help. Thanks.
I use the Middlesex registry of deeds; I don't know how the other databases work.
You simply go to the Document Search tab, select Order of Notice from the pull down menu, pick your town and date range, and go.
This blogger might want to review your comment before posting it.
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