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States with highest foreclosure rates shift
Posted 02/17/2012
December, 2011 unemployment: 9.9% (6th highest)
Home price change (2006Q3-2011Q3): -49% (3rd largest decline)
Processing period: 135 days
2. New Jersey—
2011 foreclosure rate: 6.4%
December, 2011 unemployment: 9% (13th highest)
Home price change (2006Q3-2011Q3): -22.6% (14th largest decline)
Processing period: 270 days
3. Illinois—
2011 foreclosure rate: 5.4%
December, 2011 unemployment: 9.8% (7th highest)
Home price change (2006Q3-2011Q3): -29% (7th largest decline)
Processing period: 300 days
4. Nevada—
2011 foreclosure rate: 5.3%
December, 2011 unemployment: 12.6% (the highest)
Home price change (2006Q3-2011Q3): -59.3% (the largest decline)
Processing period: 116 days
5. New York—
2011 foreclosure rate: 4.6%
December, 2011 unemployment: 8% (23rd highest)
Home price change (2006Q3-2011Q3): -13.6% (23rd largest decline)
Processing period: 445 days
Related articles
- Foreclosure activity edges higher in January (usatoday.com)
- Foreclosures and a Small Sign of Housing Recovery (247wallst.com)
- Foreclosures climbed in January (money.cnn.com)
- Chicago Foreclosure Activity in 2011 Indicates Hot Foreclosure Market in 2012 (prweb.com)
From Bad To Worse: Nevada Foreclosures Only Half Way Done
Timothy Pratt – Timothy Pratt writes on employment, economic and immigration issues out of Las Vegas, Nevada,
January 31, 2012
Nearly 1 in 7 Nevadans who bought homes between 2004 and 2008 are at least 60 days behind in their mortgage payments or entering foreclosure, according to a new report. That’s almost the same amount that have already been foreclosed on, meaning the state may only be halfway through its housing crisis.
What’s more, only Florida has a higher share of mortgages that are “seriously delinquent” or in foreclosure, meaning Nevada’s unfortunate status as ground zero for the issue may last a while.
Due to the complex relationship between underwater and foreclosed homes and unemployment, this issue goes beyond homeownership itself and is a drag on the overall economy.
The report, “Lost Ground, 2011,” was prepared by the Center for Responsible Lending. It includes state-by-state analyses of mortgages taken on during the height of the nation’s real estate boom and not only looks at their current status, but breaks them down by race, ethnicity and income.
It concludes that “the nation is not even halfway through the foreclosure crisis,” considering that 2.7 million homes have been foreclosed on, but 4 million more are inches from the same end.
In that sense, Nevada is like the rest of the nation; the difference is in the share of mortgages.
According to the report’s interactive map, the top five states in their share of mortgages at risk of foreclosure, are Florida, with 17.4%; Nevada with 13.4%; New York with 9.8%; New Jersey with 9.7%; and Mississippi with 9.6%.
The map allows you to see where the problem might be heading, which isn’t necessarily where it’s been in all cases, as with Michigan, which has been near the top until now, but may fall into the middle in the near future. Nevada has led the nation in foreclosures for some time, so that may remain the case.
Other findings include:
– middle- to upper middle class homeowners are more affected by the housing crisis in boom areas like the Las Vegas Valley; and
– Hispanics and blacks, particularly the former, are more likely to fall behind in payments and face foreclosure.
The center also makes a series of policy recommendations aimed at regulating the mortgage industry and protecting consumers. It seems these ideas may be lost in the months leading up to the elections, as debt and jobs fight for the spotlight and members of Congress fight each other.
Timothy Pratt writes from Las Vegas, Nevada. This story was originally published in his blog, Back to Work. If you would like to contribute as a citizen journalist to The Huffington Post‘s coverage of American political life, please contact us at www.offthebus.org.
Related articles
- Nevada court enforces rule that lenders must have all foreclosure papers (alialawgroupforeclosurenews.com)
- Nevada Foreclosure Filings Drop After Anti-Fraud Law Takes Effect (huffingtonpost.com)
- California, Nevada form alliance to crack down on foreclosure fraud (cnn.com)
Payday Loans: They Just Won’t Go Away
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CIN Alert for October 4, 2011
The Community Investment Network
As the days of a stagnant economy drag on, some people who have run into personal credit issues — such as bankruptcy — are turning to payday lenders to solve an immediate financial need. That can be a slippery slope for many individuals. Granted, payday loans can help certain consumers with their short term cash flow problems. However, they can also lead them into an uncontrollable spiral of debt.
Payday loans are not legal everywhere. Many states — including New York, Connecticut, New Jersey, Maryland, and Massachusetts — have outlawed the practice. Even the states where they are permitted have adopted some laws to protect unsuspecting consumers, such as capping the amount of interest a lender can charge. The Federal government has also enacted laws to protect consumers from abusive lenders during attempts at collection.
Nevertheless, payday lenders are an ingenious group and they have developed ways around the law to take advantage of an unsuspecting consumer. For example, payday lenders have been known to capitalize on consumer ignorance by offering loans that are illegal in their state, or may contain onerous payback terms that require the consumer to keep rolling over their loans just to make ends meet.
Another frequent pitfall: high interest rates. Most payday lenders charge as much as they can according to state law. This means an individual could end up paying more in interest than in principal. That’s precisely how many people end up in serious financial difficulty. Payday lenders are also known to charge very high fees and assess outrageous penalty charges if the consumer gets behind on their payments. Unfortunately for many borrowers there are no state or federal regulations which limit the amount of these types of fees or charges.
The danger in payday loans has been recognized by personal finance experts for some time, and good faith efforts have been made to address the dangers. However, a lack of financial literacy among the public combined with the continued economic recession has resulted in a bumper crop of companies lining up to offer payday loans to the unsuspecting.
Here at CIN, we believe it is important to provide timely information about payday loans. CIN maintains a complete section with relevant information on all types of financial issues, good and negative, in our: Financial Literacy content section. Here you will find information of value to consumers and lenders; everyone interested in advancing personal financial literacy. Bankers and lenders, community advocates, civil rights leaders, educators, academics, and consumers, many of which already offer a menu of financial literacy programs and initiatives for consumers.
A wide range of financial literacy tools and resources is readily available to help individuals and families deal with their financial needs and concerns. CIN places all these tools ‘under one roof’ so our readers will be fully educated. We also include related news and commentary, updated daily. Here are some recent excerpts:
Law quashes local payday lenders
(Source: The Columbian) Payday lending offices in Clark County, Washington, have decreased since the state enacted a law curbing predatory lending, which a new report says has saved millions of dollars for Washington state residents. The law went into effect Jan. 1, 2010. It offers access to a strong repayment plan and an eight-loan limit that is only available in Washington.
Payday loans a debt trap for welfare recipients
(Source: Health Canal.com) Research shows welfare recipients are using payday lenders to meet regular living expenses and are then trapped in a debt spiral, continuously indebted to one or more loan companies for considerable periods.
Ark. AG files lawsuit against payday lender
(Source: Business Week) Arkansas Attorney General Dustin McDaniel is suing an online payday lending company that he says is breaking the law by charging customers 681 % annual interest rates.
Birmingham City Council delays vote on banning payday loan stores
(Source: Alabama’s 13.com) The Birmingham City Council has considered putting a moratorium on Payday lenders in the city, but delayed the matter as some council members were concerned it might be legally challenged or have unintended consequences.
FTC Action Halts Allegedly Illegal Tactics of Payday Lending Operation That Attempted to Garnish Consumers’ Paychecks
(Source: Federal Trade Commission)After the Federal Trade Commission filed an action in U.S. district court, a South Dakota payday lender that allegedly attempted to illegally garnish consumers’ wages has agreed to stop the challenged conduct pending trial.
Related articles
- Payday Lenders ‘Using Tribes as Fronts’ (indiancountrytodaymedianetwork.com)
- Have you taken out a payday loan? (blogs.confused.com)
- The Center for Public Integrity: In trouble from an online payday loan? You might not have to repay it (huffingtonpost.com)
- Payday Loan Business Booming in Wyoming, Payday Loan Trust Concurs (prweb.com)
- CFSA Payday Lenders Respond to WSJ, Forbid Tribal Partnerships (indiancountrytodaymedianetwork.com)
- Payday Lenders Question The Implications of House Bill 1351 in Colorado, Reports About Payday Loan (prweb.com)
- Low-income borrowers get options beyond payday loans (abcnews.go.com)
- Payday lenders prey on the poor, costing Americans billions. Will Washington act? (csmonitor.com)
- How “payday” lenders pull off crippling rates (cbsnews.com)
- SEC charges Wash. payday lender over “massive Ponzi scheme” (bizjournals.com)
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