MI foreclosure rate leveling off. Post 117

MI foreclosure rate leveling off

FLINT News Flint, MI January 07, 2009

Officials see indications that foreclosures are starting to level off

GENESEE COUNTY, Michigan – Bank foreclosures in the county kept rising in 2008, but there were signs in those gloomy numbers that the sheriff’s sales are starting to level off.

The year-end figures reflected the lowest rate of increase in the Flint area in four years and the first time since 2004 that the rise was less than 19.4 percent.

The county issued 3,872 sheriff’s deeds last year, up 3.2 percent compared to 2007…Sheriff’s deeds go to the winning bidders at foreclosure sales.

… the Flint Area Association of Realtors, said the housing meltdown that hit Michigan before most of the rest of the country also might start to ease here first.

“It seems like it’s leveling off. We’re either at the bottom or really close,” he said. Home sales have increased year-to-date by about 19 percent, according to FAAR, but prices are down nearly 25 percent during that same period.

County Treasurer Daniel Kildee said…the rate of increase in mortgage foreclosures continues to look more favorable but said he expects a high number of people could lose homes and businesses due to tax foreclosure in 2009.

Kildee, chairman of the county Land Bank, … a high number of adjustable-rate mortgages are set to adjust higher in 2009. “I think the fear is the first wave has already hit but there’s a second wave coming,” he said.

Hoort said he believes there are two or three years of high mortgage foreclosures ahead even if double-digit, year-to-year increases are ending.

See entire article: http://www.mlive.com/news/flint/index.ssf/2009/01/officials_see_indications_that.html

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Coach Mitch’s REFLECTIONS™

 

Don’t believe everything you read

The reporter is making good news out of nothing. Lots of folks want to see the silver lining, including the Federal Reserve. According to many well known economists, if we believe the gloom and doom, then that is what we will have. Just talking about a depression could send us spiraling into one.

There might be something to it

People are funny. If it is in print, then we think it is true. If sales are down, and incomes are down and jobs are down, etc., then we might think that all is lost and just that thought tips us into a depression, because we stop spending.

Nonsense

People do what is in their own best interest – all the time. If your car dies and you need transportation then you look to see what the best deal is at the time, within your monetary constraints. If you can afford a new car, you buy one. If a used car makes sense, then that is what you purchase. No one is bashful about trying to get a good deal.

Fat profits give way

The 20% Rates Of Return that corporations want to achieve is what may be in jeopardy. Companies, mostly retail, are lowering prices to reflect the lower level of purchasing. Good. That is as it should be.

One of the big issues feeding into the lowered buying power of the American household is that the big corporations have been getting bigger and much less sensitive to customer needs. Their size allows them to dictate prices, policies, and posture.

Have you tried to work with a big company lately? It is a horror.

“Our policy is this … or that … and there is no supervisor available!” I have had a terrible time with 1 and 1, a very large internet domain registrar. Every time I tried to move my domains, they came up with a new policy, a new hoop to jump through, that stopped me. Fees added on top of fees, without end. It was very plain that the policy is to retain customers – at all cost. Hard feelings aside, cash is king. Extort the cash.

Banks are the worst

Banks have always been bad. Bankers are even worse than lawyers, who while conniving, at least have an ethical mandate to serve you. Not so with bankers. Their mandate is to serve themselves.

We had issues with Fleet bank, a large commercial bank, since bought up and disappeared. We just got tired of “our policy is.” We transferred everything to HSBC, one of the biggest commercial banks in the world. After a while, their policies became onerous. “Sorry, our rules are that …” We got tired of the HSBC nonsense and then we went to Key bank, another large commercial regional bank. Key was the worst of all. Their arbitrariness is abusive.

It became apparent that the banks understand that there is a revolving door. For every customer that the bank loses because of poor service, they also gain one customer; someone coming from one of the other banks, who left because of that banks poor service. The bank wins again!

Banks absorb other banks. The banks are bigger, but the number of banks are fewer. Therefore, people have fewer choices and bankers know it. Their posture, attitude, reflects that they know that they are increasingly in control.

An idea

Imagine if a law was passed that restricted the size of a company to no more than, say, 10% of a market? There would be much more competition. Regular people always benefit when they have more choices.

Foreclosure crises can be easily averted

Governments make laws; all sorts of laws. The Fed, Fannie Mae, and Freddie Mac can create rules that require the banks to do mortgage mitigation. In the exact same way a bankruptcy judge crams down debts, the bank can be required to cram down the mortgage.

Will this policy have repercussions? Of course. But, there will also be repercussions from the bailouts. Bankers have been bailed out. Regular people are being ravaged. It’s wrong.

Take advantage of the situation

We will be having at least two years of high foreclosure rates. People will be looking to pay less for their homes and mortgages are much more difficult to close.

Investing in tax delinquent property is a natural way to protect yourself because you can’t buy a property any cheaper than for its tax amount. Forty to fifty percent of tax delinquent property is Free and Clear! Tax delinquent owners can give the property away if they want.

Make Hay while the sun shines

Everyone knows that the best deals come when the times are toughest. There is no question that tax delinquent property offers the best deals. The biggest thing to overcome is FEAR. Coach Mitch offers a coaching program that holds your hand and guides you through the unknown patches so that you are safe.

Meanwhile, with this cold wave, put on a sweater, take care of yourself.

See Coach Mitch’s “Ridiculously Simple System…”™ for details.

Think the good thoughts.