Archive for the 'cities' Category

Homeowners are already burdened with finding ways to avoid Charlotte bank foreclosures. Now, they still have to be more vigilant as fraudulent foreclosure prevention schemes are spreading fast across North Carolina.

To help distressed homeowners avoid becoming victims of fraudulent foreclosure prevention schemes, Attorney General Roy Cooper suggested that both federal and state law enforcement should work together to prevent con artists from further victimizing financially-strapped homeowners.

Cooper met with US Attorney General Eric Holder, US Treasury Secretary Tim Geithner, Federal Trade Commission (FTC) Chairman Jon Leibowitz, Housing and Urban Development Secretary Shaun Donovan and 11 state attorneys general to discuss potential ways to prevent fraudulent foreclosure prevention and loan modification schemes.

Industry experts said that con artists have been victimizing many distressed homeowners who are desperate to save their properties from Charlotte bank foreclosures. They said that fraudulent rescue schemes are costing homeowners money and time which they could not afford to lose if they are struggling to save their properties from foreclosures.

Cooper told those in the meeting that in North Carolina, the government has intensified its efforts to go after con artists who ask for money from distressed homeowners in exchange for help in preventing foreclosures but do nothing or little to save them.

Many homeowners in North Carolina are concerned about losing their homes to foreclosures. Con artists are aware of this desperation and tried to take advantage of it. Foreclosure rescue fraud-related complaints received by Cooper’s office rose dramatically.

In 2007, about seven homeowners complained to the Consumer Protection Division of the Attorney General’s office about foreclosure prevention fraud.

The number of consumer complaints increased to 82 the following year and so far, totaled 353 this year.

In 2005, a law was implemented statewide making it illegal for companies providing foreclosure prevention assistance to ask for upfront fees. During the meeting, Cooper urged the FTC to implement a national ban on upfront fees for all foreclosure prevention services. He also called on the U.S. Department of Justice to intensify their criminal prosecutions of con artist.

The Attorney General’s office and its Consumer Protection group have used a state law to go after over 130 fraudulent foreclosure prevention schemes since January of last year. The results include recovery of over $100,000 which were refunded to victims and judgments of nearly $1 million.

Owners of the 25-story First National Building are under threat of Detroit bank foreclosures after they defaulted on their almost $22 million loan.

According to the Wayne County Circuit Court records, the historic building in Detroit, Michigan is facing foreclosure proceedings due to the failure of its owners to pay their bank loan. The building is located at Campus Martius Park near the Detroit River. Built in 1922, the building was originally designed neoclassical.

Court records showed that last month, owners Northern Group Inc. and FN Building LLC missed payment of their mortgage with National City Bank. As of August 25, the bank loan balance with National City amounted to $21.4 million.

According to industry experts, 66 percent of the building was leased. National City is planning to request the court to appoint a receiver who will take over the First National Building. A receiver appointed by the court has the authority over the building, including putting it on the market for sale.

Court records showed that FN Building and PBDM LLC Vice President Alex Dembitzer signed the bank loan amounting to $22 million which is now on default and facing Detroit bank foreclosures. Dembitzer is also the managing partner and principal of Northern Group.

Meanwhile, lender Capmark Bank and PBDM are embroiled in a legal squabble over a loan package totaling $25 million. The case involves PBDM’s Penobscot Building, a 47-story landmark property.

According to court records, owners of Penobscot building missed two months of mortgage payments, totaling $615,000, including late charges. Capmark has accused PBDM of diverting rents and misappropriating funds.

Penobscot owners argued that they have not misappropriated rents. They added that the money from rents was used to pay for improvements and operations. In its counter-claim filings, PBDM pointed out that Capmark’s own financial problems have resulted to a breach in the mortgage agreement.

Nationwide, industry analysts are concerned that the decline in commercial real estate market will continue. In fact, investors are already anticipating further commercial market deterioration for the remaining months of this year and into 2010.

Investors who are planning to purchase quality distressed properties at very low prices are hoping that defaults and scheduled due dates will boost buying opportunities.

Board associations have found a way to collect overdue payments from condominiums under Tampa bank foreclosures. Many condominium associations have filed for blanket receivership which requires tenants of foreclosed units to pay their rents to third-party receivers appointed by the court.

The foreclosure crisis in Florida has taken its toll on many condominium associations. Some delinquent landlords would continue to rent out their foreclosed units without paying dues to condominium associations. The loss of income greatly affected many services provided by associations such as maintenance and repair and security.

But this time, condominium associations have found a legal tool to force landlords to remit tenants’ rent payments to them. Industry experts said that many landlords are investors who have given up hope on their units and just wait to lose them to Tampa bank foreclosures. Meanwhile, their tenants continue to use the foreclosed units and the amenities while the associations are paying for their maintenance and repair.

So far, 25 condominium associations in the state have used the blanket receivership tool to collect overdue payments. And legal experts are expecting more associations, especially those that are owed thousands of dollars, to follow suit, adding that if a good idea started to work out, there is a tendency for others to follow.

In Charleston Place Townhomes, over 50 percent of the 84 units were delinquent in their $300 monthly fee payments. The dues are used to pay for various amenities such as water, electricity, lawn maintenance and cable.

To replace the unpaid dues, associations typically increase fees on unit owners who paid regularly or foreclosed on condominium units of those who do not pay. But, because the Florida court system is swamped with foreclosure-related cases, many condominium associations prefer not to pursue repossession.

Condominium associations that chose to pursue foreclosures have to wait for at least a year or more to collect the dues owed to them.

Under the method of blanket receivership, homeowners’ associations can file for a petition to cover each unit with overdue assessments if they had already filed for foreclosures. Experts said that many lawyers are not aware of the blanket receivership tool because in an ideal housing market, people who have equity on their properties would always make it a point to pay their dues to avoid going into foreclosures.

Los Angeles bank foreclosures continue to defy local, state and federal government prevention efforts. Recent market data showed that 73 percent of the total homes on the market for sale are foreclosure houses.

Market data showed that the number of Orlando bank foreclosures was among the top 10 highest in the country last month. The Orlando-Kissimmee area earned the number 8 position in the ranking of metropolitan areas across the country with the highest foreclosure rate. This means that one out of 87 homeowners received at least one foreclosure filing last month.

The Community Development Financial Institutions (CDFI) Fund of the U.S. Department of Treasury has awarded $576,000 grant to ShoreBank as part of its effort to prevent bank foreclosures in Chicago.

The Obama Administration’s $8,000 federal tax credit has made buying Houston bank foreclosures become easy for some first-time buyers in Texas.

Investors and first-time buyers should buy Brooklyn bank foreclosures right away to take advantage of the wide range of cheap properties on the market, suggested by industry experts.

A Miami bank foreclosures lawsuit has been filed against Fortune International and its president Edgardo Defortuna. The $67 million lawsuit against the Miami, Florida-based residential developer involves a hotel property which Defortuna plans to redevelop.

Dayton, Ohio has approved an agreement with Citywide Development Corporation to launch a program to purchase and rehabilitate vacant and foreclosed for sale homes. Under the agreement, CityWide will find vacant and newly foreclosed properties in stable neighborhoods to purchase, renovate and place on the market for sale.