Foundation: Real Estate News and Thoughts

If this sentiment becomes more accepted (and dare I say it, mainstream), expect foreclosures to keep posting triple digit gains on top of the triple digit increases I've already mentioned here.  Here is a case in which someone who bought at the peak in '06 and is now faced with a home value about half of what he paid for it.  Of course it was bought with an ARM so he's facing a sizable reset.  Not only is this guy thinking about just letting the bank take it back, he's acting on it.

LA Times: A tipping point? "Foreclose me ... I'll save money"

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The fourth quarter of last year saw nearly 32,000 homes fall into foreclosure in California.  That number sharply contrasts the 6,000 that went to foreclosure the same time last year.  I think everyone is well aware of the issue by now, but when foreclosures more than quadruple, it shows that we're no where near the end of this problem.  As I've said, it's certainly distressing for the people losing their homes, but could be a great opportunity for those who've been sitting on the sidelines waiting the bubble out.

ABC News: California Foreclosures Hit 20 Year High in 4Q

Find foreclosed homes for sale

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People are angry.  And when people are angry over money matters, they look for someone to blame - and subsequently sue.  In this case, it's this couple's agent.  I'm not saying that the case is with or without merit, just saying that when you make one of the biggest financial decisions of your life, you might want to make sure you're armed with your own information and home values data before you sign on the dotted line and hand over that monster check.

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BusinessWeek published Sperling's list of Affordable Suburbs with an accompanying gallery (if you're so inclined to scroll through 50 states).

Hope it helps you find your little slice of heaven.

Tags: best places to live, real estate

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I mentioned yesterday that we might hear more of people burning down their houses to escape the nightmare of foreclosure.  Here's another trend we'll hear more of: municipalities suing banks.

Cleveland is the latest city to seek relief amidst the growing service costs and shrinking tax based caused by foreclosures.  Look for more to come as cities face huge revenue shortfalls.

AOL Money and Finance: Cleveland Sues Bank Over Foreclosures

See Cleveland foreclosures or search home foreclosures in your area.

Update Jan 14:  Mayors see foreclosures as one of their toughest issues and the number of cities facing the problem on a widespread scale are growing.  Reuters: Mayors Face Test of Spreading Foreclosures

Tags: foreclosures, lawsuits

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I was reminded of a pretty cool site called TurnHere that showcases user generated videos of the places that they call home.  The videos are short and present a great insider's view that only a local could give you.  You'll find not only cities, but the individual neighborhoods listed.  Even if you live there, it's worth checking out.

TurnHere

Tags: neighborhoods

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Sad that people would choose burning their home down as a way to get out from under foreclosure.  So what happens if someone in a condo decides this is the way out of their financial mess? 

From CNN Money:  Will Foreclosures Spark an Arson Boom?

Allstate spokesman Mike Siemienas says his company has seen an increase nationally in arsons among homes in foreclosure. In California, the state¹s insurance division reports that the number of questionable residential fires in 2007 increased 76 percent over 2006.

Tags: arson, foreclosure

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And I'm not talking about home values, where, with the exception of Seattle, values have been steadily retreating.  What I'm talking about here are property taxes and depending where you live, you might be seeing some big increases despite the recent declines in home values.

Washington Post: Assessment Shock: Know Your Rights

Amid all the crying over home prices and foreclosure fallout, my friend was giddy when he told me his assessment went down and he actually got money back from the escrow account because it was now overfunded.

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Even if you've no problem paying your mortgage and bills, you might still be collateral damage in the growing tide of foreclosures if you live in a large condo complex.  Miami is getting hit hard with foreclosures and neighboring residents are paying the price.  From special assessments to service stoppages to renters being forced to move when their unit is foreclosed upon, many more are feeling the pain than just the initial mortgage borrower who's in over his head.

From the Miami Herald:

Kovelman's rental was one of 80 in the luxury condominium at 1200 Brickell Bay Dr. that dropped into foreclosure in 2007. The Club at Brickell Bay ranked first among condominiums in Miami-Dade and Broward counties with the most units in foreclosure. Borrowers owe lenders more than $42 million.

and

Earlier this year, the Club at Brickell Bay lost its cable and Internet service because the condo association fell behind on payments.

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Only in New York.  And only from someone that works for Comedy Central's Colbert Report.  See Mark Malkoff living in the Paramus, NJ Ikea.

ABC News: Read why he did it here.

Visit his site for more info and videos.

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