Page 38 – Safeguard Properties

Kosciusko Street House Leveled by Land Bank

Posted on January 9, 2024January 31, 2024 by Safeguard

Industry Update
January 8, 2024

A long-vacant home in Manistee’s Maxwelltown neighborhood has been torn down.

Demolition by Swidorski Bros. Excavating LLC began Monday morning at the property, located at 1001 Kosciusko St.

The city of Manistee agreed to transfer ownership of the Kosciusko Street property to the Manistee County Land Bank Authority in early 2023.

The city had purchased the property with the intent to renovate the roughly 100-year-old building, but its condition precluded rehabilitation.

“It was over 60% that needed to be torn down. Typically 40% is kind of where you could still rehab it,” said Bill Gambill, city manager, during a January 2023 city council meeting.

A blight elimination grant, worth $54,648, was awarded to remove the building, along with others at 530 Davis St. and 616 Engelman St. in Manistee.

The grant program, administered by the State Land Bank Authority, provided $21.55 million in funding to address vacant, abandoned and deteriorated properties across Michigan. County land banks were eligible for a guaranteed minimum allocation of $200,000, as long as a completed application with eligible projects was submitted.

Demolition of the properties at Kosciusko and Davis streets could clear the way for future developments, according to Rachel Nelson, Manistee County Land Bank Authority chair.

“…With the two that the land bank owns, we would love to then look at maybe building new housing on those properties,” Nelson had said during a Jan. 17 city council meeting.

Should zoning ordinances preclude rebuilding on either of those two properties, Nelson had said the land bank would pursue other uses by “thinking outside the box.”

“If we can’t rebuild, what’s the most effective use of that property for the community then? Is it a community garden? Is it renting that to the neighbor?” she said. “We’re definitely not just going to let it sit and be nothing, although maybe that’s the best use. That could be, but we’d like to do something and make it a real community asset either way.

“… The land bank would retain ownership,” Nelson continued. “If we build then obviously it would be sold after that happens and then it would just be back to being privately owned at that point.”

For full report, please click the source link above.

New Orleans Considers Doubling Fines for Overgrown Lots in Fight Against Blight

Posted on January 9, 2024January 31, 2024 by Safeguard

Industry Update
January 8, 2024

Source: nola.com

New Orleans’ battle against blight could be ramping up in 2024 with harsher penalties and a streamlined enforcement process to curb properties with overgrown and trash-ridden lots.

Under a proposed new city ordinance, sponsored by Council member Oliver Thomas, property owners could face double the amount in fines — up to $1,000 per violation — for failing to cut the grass or remove debris and graffiti from lots across the city.

The changes follow a new state law that allows Orleans Parish to streamline code enforcement procedures, such as allowing public notices of violations, rather than relying on certified mail to reach property owners, who often live out of state and can be difficult to reach.

“We have to be able to tell people what’s acceptable and what’s not acceptable here in our city,” Thomas said in an interview.

After five days have passed from notifying the owner, the city can begin working on the blighted property, eliminating time-consuming steps such as inspections and obtaining a signed affidavit.

The newly established Code Enforcement Department, that began Jan. 1 with Director Anthony Davis at the helm, can then bill owners for property maintenance work completed by the city. Previously that responsibility fell under the city tax collection office. Voters approved the new department last year, allowing it to have its own budget to tackle blight and to take over enforcement tasks from other agencies.

For full report, please click the source link above.

30 US Cities with the Most Foreclosures in 2023

Posted on January 3, 2024 by Safeguard

Industry Update
December 28, 2023

Source: insidermonkey.com

In this article, we will take a look at the 30 US cities with the most foreclosures in 2023. If you want to skip our discussion on the trends in the real estate market, you can go directly to the 5 US Cities With the Most Foreclosures in 2023.

Following the expiration of the pandemic-related federal suspension on foreclosures in mid-2021, there has been a noticeable increase in the number of foreclosure filings. Around 2 million homeowners could not make their mortgage payments during the COVID-related lockdown. The challenges persist, particularly for low-income borrowers, as they struggle with the accumulated burden of mortgage payments. The impact of inflationary pressures on the US economy prompted the Federal Reserve to implement interest rate hikes, which also led to a rise in mortgage rates. While an official recession has not been declared, multiple factors indicate that the US economy is under strain. Persistent inflation, low employment rates, and an increase in household debt contribute to the economic stress. In addition to the rise in foreclosures, credit card delinquencies have also reached their highest levels since 2011.

The US foreclosure rate chart, released by property data provider ATTOM, indicated an overall increase in foreclosure filings during Q2 and Q3 as compared to 2022. In October 2023, one in every 4,051 housing units experienced a foreclosure filing. Among the states with the highest foreclosure rates, Delaware had one foreclosure filing in every 2,432 housing units, followed by Ohio with one in every 2,492 housing units, and New Jersey with one in every 2,550 housing units. With the average US home price ranging around $391,800, home ownership is becoming progressively difficult for both prospective and existing owners.

For full report, please click the source link above.

Fannie and Freddie Serious Delinquencies in November

Posted on January 3, 2024 by Safeguard

Industry Update
December 27, 2023

Source: Calculated Risk

Single-family serious delinquencies were mostly unchanged in November, however, multi-family serious delinquencies increased.

Freddie Mac reported that the Single-Family serious delinquency rate in November was 0.54%, unchanged from 0.54% October. Freddie’s rate is down year-over-year from 0.66% in November 2022. This is below the pre-pandemic lows. Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble and peaked at 3.17% in August 2020 during the pandemic.

Fannie Mae reported that the Single-Family Serious Delinquency increased to 0.54% in November from 0.54% in October. The serious delinquency rate is down from 0.64% in November 2022. This is below the pre-pandemic lows. The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.

For full report, please click the source link above.

ICE First Look at November Mortgage Performance: Delinquencies Historically Low Despite Seasonal Rise

Posted on January 3, 2024 by Safeguard

Industry Update
December 21, 2023

Source: Black Knight

Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, reports the following “first look” at November 2023 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

The national delinquency rate edged higher to 3.39% in November – down 10 basis points (bps) from the same time last year – but remains 64 bps below pre-pandemic levels

Likewise, early-stage delinquencies among VA loans hit their highest non-pandemic levels since 2009, as rising interest rates have begun to impact performance among recently originated loans

Serious delinquencies (90+ days past due) rose to 459K, but remain down 123K (-21%) from November 2022

Foreclosure starts decreased -12.2% in November to 29K with active foreclosure inventory falling to 216K, some 23% and 24% below 2019 levels respectively

Prepayment activity fell again under continued pressure from seasonal homebuying patterns along with the residual effects of 30-year rates climbing above 7.75% the month prior

For full report, please click the source link above.

FEMA Major Disaster Declaration – Utah Flooding

Posted on December 26, 2023January 4, 2024 by Safeguard

FEMA Alert
December 23, 2023

FEMA has issued a Major Disaster Declaration for areas of the state of Utah to supplement state, tribal and local recovery efforts in areas affected by flooding from May 1-27, 2023. The following counties have been approved for assistance:

Public Assistance:

Iron
Morgan
Sanpete
Utah
Wasatch

Utah Flooding (DR-4752-UT)

Map of Affected Area

List of Affected Zip Codes

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

Share of Mortgage Loans in Forbearance Decreases to .26% in November

Posted on December 19, 2023 by Safeguard

Industry Update
December 18, 2023

Source: Mortgage Bankers Association

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 3 basis points from 0.29% of servicers’ portfolio volume in the prior month to 0.26% as of November 30, 2023. According to MBA’s estimate, 130,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.1 million borrowers since March 2020.

In November 2023, the share of Fannie Mae and Freddie Mac loans in forbearance declined 2 basis points to 0.16%. Ginnie Mae loans in forbearance decreased 5 basis points to 0.47%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 2 basis points to 0.30%.

“Nearly 96 percent of all home mortgages are performing, which underscores how strong servicing portfolio performance is right now with the same resilience seen in the U.S. labor market,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Meanwhile, the performance of loan workouts is solid, but declined last month. Roughly 70 percent of loan workouts initiated since 2020 are current.”

Added Walsh, “MBA forecasts an economic downturn in 2024, and there are signs of early distress in other credit types such as car loans and credit cards. Those borrowers who struggled in making their mortgage payments in the past may find themselves in similar situations in a softening economy and rising unemployment.”

For full report, please click the source link above.

The City of Casey Addresses Blighted Properties

Posted on December 14, 2023 by Safeguard

Industry Update
December 4, 2023

Source: wthitv.com

The city of Casey, Illinois, is trying to clean up some blighted properties. It’s something many residents are eager to see.

News 10 spoke with several residents and visitors from out of town about these blighted properties. Most say these eyesores in the community don’t go unnoticed.

“Basically all throughout the United States, there’s just abandoned houses are in a little bit of rougher shape,” said Logan Elbers, one local visitor.

Mayor Mike Nichols has made it a priority to enhance neighborhoods by tearing down abandoned and neglected buildings. Nichols says some of these properties are unsafe. Whether they’re occupied or not, he says all of them are in desperate need of change.

“Porches that are partially collapsed, you’ve got yards that look more like a forest that are harboring animals that can create health problems also,” said Nichols.

The city is currently looking at 17 properties that need to be revamped. Nichols says he’s turned to the city attorney and local law enforcement for assistance. Depending on the size and material of the house, it can cost between $10,000 to $15,000 to tear one structure down.

Nichols says the city has already notified several property owners about this problem. The city will either purchase the property itself, or the owners will have to correct the situation.

“I don’t want to come off as heavy-handed to the folks on the property, but I want to come off as caring and trying to make things better for the people living in those homes, or people living around those homes, or the citizens in Casey,” said Nichols.

For full report, please click the source link above.

Council Hears Presentation on Abandoned Properties

Posted on December 14, 2023 by Safeguard

Industry Update
December 5, 2023

Source: hannibal.net

The Hannibal City Council heard an impassioned pitch Tuesday from two local property owners on the need to take action regarding abandoned and derelict properties across the city, but especially in the downtown and central neighborhood areas.

Bob Yapp and Andrew Wikstrom stated up front the issues they were concerned with are not with occupied homes that are not in great shape, a separate issue to the pair, but rather the homes and commercial buildings that are empty and unsecured from trespass or nature.

Wikstrom said he sees Hannibal “rising like a phoenix” with development that’s happened in the last 10 to 20 years, but that “we’re hitting a stopping point” because of absentee property owners.

Yapp said he understands the idea of buying properties in growing areas, taking advantage of lower values that are expected to go higher in coming years. But he said some of the property speculators out there are taking advantage of others who are actually putting in the work to improve surrounding properties.

Hannibal Mayor Barry Louderman agreed with the concerns and said he would task Wikstrom and Yapp with forming a citizen-based committee to make recommendations on actions to be taken on properties that might be saved as well as those that are beyond repair.

For full report, please click the source link above.

Dougherty Co. Leaders Want to Toughen Code Enforcement to Fight Blighted Buildings

Posted on December 14, 2023December 14, 2023 by Safeguard

Industry Update
December 11, 2023

Source: walb.com

On Monday, the Dougherty County Commission held a government affairs meeting to consider asking a Georgia law firm to help them update their code of ordinances.

Since the last meeting in October, they have compiled a list of ordinances that are top of mind for revision. Here’s why commissioners feel these updates are needed.

The county ordinances haven’t been updated since 1986. That is why Commissioner Chair for District 5 Gloria Gaines called this meeting.

According to Advancing Georgia’s Counties, best practices include updating the ordinances once every five to 10 years and keeping codes current with the times. The first two areas that Commissioner Gaines wants to tackle are zoning and vegetation control.

Several items on the agenda under the code of ordinances also include addressing blighted properties and animal control.

“How do we use our ordinances to create a better living environment for our citizens? And that call went out and we have a list that we will pass on to our legal consultants and they will have a look at it and try to help us try to codify some of the updates,” Gaines said.

County Attorney Alex Shalishali has been in contact with a few Georgia law firms that oversee local government, who could advise the county on how to best do this.

“For example, you have heard about code enforcement because blight is an issue that they want to address. And so we have gathered information from board staff and we are going to continue gathering information from other stakeholders. And we will likely engage a consultant,” Shalishali said.

City and county leaders have been frustrated with the slow process of cleaning up blighting properties. County leaders are trying to use ordinance changes to make the process faster.

Here’s how county leaders hope to address it:

To expedite the lien process for unpaid fines when property owners are not compliant.
To set new standards that require owners to maintain vacant properties.

“We have a lot of problems with maintaining properties around here, vacant properties around here, maintaining yards with animals that are out of control. With junk cards and that kind of stuff,” Gaines said.

The commission is also considering tougher fines for owners that allow weeds to grow out of control on their properties. And regulation on junk vehicles that are stored on front lawns.

For now, these are all just ideas and no timeline was given on when action might be taken.

For full report, please click the source link above.