Foreclosure mystery: Why can’t conservative Utahns afford their mortgage?

Foreclosure mystery: Why can’t conservative Utahns afford their mortgage?

During the housing bubble, they led the nation in bankruptcies. Now that the bubble is bust, they’re among the top states in foreclosures. A RealtyTrac report released Thursday showed they had the fifth-highest foreclosure rate among the states, with 1 in 231 homes receiving a foreclosure notice in January. That’s nearly double the national rate and not far from No. 4 Florida’s rate of 1 in 187.

The US foreclosure rate actually fell 10 percent from December’s level – and Utah was down nearly 12 percent – but RealtyTrac suggested they could surge again in coming months if last year’s pattern holds true.

How to Compete Against Foreclosures

How to Compete Against Foreclosures

Want to know the big secret to selling a home quickly?

Make it look pretty.

Patrick McAllister and his wife Lisa Cox had an edge in that regard. Their 1917 Craftsman house was beautifully renovated with hardwood floors and bright, airy rooms. Carefully chosen artwork hangs on the walls. In the master bedroom a balcony overlooks the Seattle neighborhood of Wallingford.

Mortgage meltdown: Orlando-area minorities likelier to take credit hit in distress sales of homes [Central Florida]

Mortgage meltdown: Orlando-area minorities likelier to take credit hit in distress sales of homes [Central Florida]

Distress sales now define Orlando’s still-slumping home market: Two-thirds of all resale closings in the metro area’s core market these days are either bank-owned foreclosures or lender-approved short sales.

But the proportion of foreclosures to short sales varies drastically between affluent and low-income neighborhoods.

In desirable areas, such as Windermere and Baldwin Park, homeowners are much more likely to salvage their credit record by getting their bank to approve a short sale, which allows them to sell their house for less than they owe on the mortgage. In high-poverty areas that attract fewer buyers, most financially strapped owners have no such option, so when banks foreclose on them, their credit is damaged for years.

“When you fill out an application for credit, you have to answer if you have had a foreclosure in the last seven years,” said Orlando real-estate agent Shaina Markulin, who has completed more than 200 short sales. “There are no questions on the applications, at least at this time, about whether you have had a short sale. … A short sale is absolutely a better option than a foreclosure, 100 percent.”

Struggle with bank drags on past a year

Struggle with bank drags on past a year

Joe and Dee Setzer, embroiled in a long battle with their lender to modify their mortgage, also narrowly avoided spending thousands with what state prosecutors say appear to be illegal foreclosure assistance firms.

The Iredell County couple considered paying $1,290 last September to a Florida firm advertising help with mortgage modifications. At the last minute, they backed out because she felt uneasy about the service.

More months passed as they implored Bank of America to lower their payments because their income had fallen. Their desperation grew. Last month, they almost signed a $1,500 contract with a man who recently relocated to North Carolina from New York and pitches help with mortgages.

Apartment foreclosure to spike rents

Apartment foreclosure to spike rents

Tenants at a low-income apartment complex will see their rents increase by as much as 22 percent now that a Bank of America subsidiary has bought it out of foreclosure.

Base rents at Riley Chase apartments, a 312-unit complex off Toledo Blade Boulevard near Interstate 75, had been $475 for a one-bedroom unit, $535 for a two-bedroom unit and $650 for three bedrooms. Those rents are scheduled to increase to $520, $650 and $750 a month respectively, according to documents filed by the new owners with North Port.