Page 75 – Safeguard Properties

Homeowners Find Ways to Overcome Delinquency – CoreLogic

Posted on January 11, 2024January 18, 2024 by Safeguard

Industry Update
January 8, 2024

Mortgage delinquency rates have remained “exceptionally solid” thanks to a rebound in home equity gains, according to CoreLogic.

About 2.8% of mortgage properties in October were in some stage of delinquency (30 days or more past due, including those in foreclosure), mirroring the figures from the same period last year and the preceding month.

The report dissected delinquency rates further: early-stage delinquencies saw a minor uptick to 1.4%, while adverse delinquencies stayed steady at 0.4%. More encouragingly, serious delinquencies decreased to 0.9%, continuing a downward trend from the pandemic-high of 4.3% in August 2020. Meanwhile, foreclosure and transition rates remained unchanged, indicating a stable mortgage environment.

“US mortgage delinquency rates remained healthy in October, with the overall delinquency rate unchanged from a year earlier and the serious delinquency rate remaining at a historic low,” said CoreLogic principal economist Molly Boesel.

“Most of the decline in the serious delinquency rate stems from a decrease in later-stage delinquencies. Importantly, there was no increase in the foreclosure rate, indicating that borrowers in later stages of delinquencies are finding alternatives to defaulting on their home loans.”

In a positive turn for homeowners, the report also highlighted a rebound in home equity gains. On average, borrowers saw an increase in their home equity, with a typical gain of $20,000 from the previous year, which could act as a buffer against foreclosure in the near term.

For full report, please click the source link above.

U.S. Foreclosure Activity Increases from 2022 but Still Below Pre-Pandemic Levels

Posted on January 11, 2024January 18, 2024 by Safeguard

Industry Update
January 11, 2024

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its Year-End 2023 U.S. Foreclosure Market Report, which shows foreclosure filings— default notices, scheduled auctions and bank repossessions — were reported on 357,062 U.S. properties in 2023, up 10 percent from 2022 and up 136 percent from 2021 but down 28 percent from 2019, before the pandemic shook up the market. Foreclosure filings in 2023 were also down 88 percent from a peak of nearly 2.9 million in 2010.

Those 357,062 properties with foreclosure filings in 2023 represented 0.26 percent of all U.S. housing units, up slightly from 0.23 percent in 2022, but down from 0.36 percent in 2019 and down from a peak of 2.23 percent in 2010.

“Reflecting on 2023, we see the recent rise in foreclosure activity as a market correction rather than a cause for alarm. It signals a return to more traditional patterns after years of volatility,” said Rob Barber, CEO at ATTOM. “Our data suggests that while foreclosure activity may fluctuate, it’s unlikely to approach the highs seen in the last decade. Instead, we foresee a market that is more reflective of broader economic trends, with foreclosure filings becoming a more predictable aspect of the housing landscape. This shift offers a silver lining — the opportunity for investors, homeowners, and industry professionals to plan and strategize with greater confidence and insight.”

ATTOM’s year-end foreclosure report provides a unique count of properties with a foreclosure filing during the year based on publicly recorded and published foreclosure filings collected in more than 3,000 counties nationwide, accounting for more than 99 percent of the U.S. population – also available for licensing or customized reporting. See full methodology below.

The report also includes new data for December 2023, showing there were 30,314 U.S. properties with foreclosure filings, down 6 percent from the previous month and down 2 percent from a year ago.

For full report, please click the source link above.

Owners of Vacant Property in Phoenix Must Now Register with the City

Posted on January 9, 2024January 18, 2024 by Safeguard

Industry Update
January 2, 2024

Source: kjzz.org

Some Phoenix property owners are now required to register with the city.

The Phoenix Neighborhood Services Department’s Vacant Property Registry officially opened online Jan. 1.

In December, the Phoenix City Council approved an ordinance creating the registry.

Owners of vacant lots over 10,000 square feet, along with commercial properties and residential properties with more than 50 units that are vacant more than 30 days must register online.

When owners register, the city will provide information and resources on crime prevention through environmental design and property maintenance standards. Owners will also be offered tools to prevent the most common complaints like graffiti and trespassing. For example, a graffiti removal waiver that allows city staff to access the property and a private property outreach waiver to allow Office of Homeless Solutions staff or contractors to access the property to provide outreach and offer services.

Enforcement will begin in February and could involve fines between $500 and $2,500 if violations are not corrected.

For full report, please click the source link above.

Organization Working to Clear Out Vacant Homes Across Montgomery County

Posted on January 9, 2024January 18, 2024 by Safeguard

Industry Update
January 4, 2024

Source: whio.com

Last year, the Montgomery County Land Bank tore down more than 200 vacant properties. People living in the county are glad to see them go and hope they prevent fires like the one that happened last night in Dayton.

Vacant house fires, like the one that happened Tuesday night on Xenia Avenue, are a major concern for people living around the county. Especially with the Dayton Fire Department saying that 35 percent of fires battled last year were from vacant properties.

“I don’t like it because you get a lot of homeless people breaking in and they set up shop there,” Bryan Bostick, of Dayton, said. “And before you know it, you got a drug problem, you got crime.”

People like Bostick want to see these properties gone as soon as possible. The Montgomery County Land Bank told News Center 7′s Kayla McDermott that they’re tearing down these properties as fast as they can.

“The application that we had submitted to our Department of Development, which is a countywide application (and) not just for the City of Dayton, although I would say the city of Dayton has the majority of the units, was 270 total units,” Mike Grauwelman, Executive Director of the Montgomery County Land Bank, said.

Grauwelman said he wants the vacancies gone as much as everyone else.

“It’s just not a good situation to have, and certainly has a huge negative impact on the value of homes in that neighborhood,” he said.

They have a goal of bringing up property values, boosting community morale, and keeping more people safe.

For full report, please click the source link above.

Kosciusko Street House Leveled by Land Bank

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

Industry Update
January 8, 2024

Source: lakecountystar.com

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: