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Kitsap Real Estate Market Report - April 2011
By Admin
You are invited to keep up with the latest market information and statistics for Kitsap County Real Estate. Our April Kitsap Real Estate Market Report has just been posted at
http://www.prowserealestate.com/Newsletter
Below is a portion of this month’s report.
Our national and state governments have enacted legislation and stepped up regulation of the foreclosure process. Washington has the 14th highest foreclosure rate nationally. RealtyTrac reports that Washington foreclosures have increased 64% in the past year. Now the Washington legislature has passed the Foreclosure Fairness Act to provide foreclosure mediation in some circumstances. Elements of the bill include:
(a) Encourage homeowners to utilize the skills and professional judgment of housing counselors as early as possible in the foreclosure process;
(b) Create a framework for homeowners and beneficiaries to communicate with each other to reach a resolution and avoid foreclosure whenever possible; and
(c) Provide a process for foreclosure mediation when a housing counselor or attorney determines that mediation is appropriate. For mediation to be effective, the parties should attend the mediation (in person, telephonically, through an agent, or otherwise), provide the necessary documentation in a timely manner, willingly share information, actively present, discuss, and explore options to avoid foreclosure, negotiate willingly and cooperatively, maintain a professional and cooperative demeanor, cooperate with the mediator, and keep any agreements made in mediation.
Also see this Seattle Times article on the bill, still awaiting the Governor’s signature.
Separately Washington Attorney General Rob McKenna’s office continues its six month investigation of foreclosure practices in our state. His office is contacting a handful of foreclosure trustees believed to be violation the law. We recommend that anyone with questions about Washington foreclosures read this article in the Kitsap Peninsula Business Journal, which contains ample information and resources for homeowners. Among other things, it reports that:
…the Washington Attorney General’s Office announced that it has uncovered an additional widespread problem that jeopardizes homeowners’ chances of stopping a foreclosure.
“Foreclosures run on strict timelines and homeowners need a human who they can talk with face to face when there’s a problem,” Attorney General Rob McKenna said. “They need an office where they can make last-minute payments or show documents that may prove reasons for stopping forced sales.”
“Washington law requires that foreclosure trustees maintain actual offices in our state and local phone numbers for this reason,” he continued. “But our investigation shows that some of the largest trustees are not in compliance and borrowers who have a legitimate reason to stop a foreclosure are having trouble reaching trustees.”
Also separately, Housing Wire reports that the Federal Reserve and Office of Comptroller of the Currency have sanctioned the 10 largest mortgage servicers and are requiring them to establish new foreclosure processes. See more in the Fed press release. We have certainly seen the aggressive tactics, poor record keeping, and lack of responsiveness on the part of mortgage servicers. We have seen a huge difference between dealing with local banks under pressure from FDIC versus large servicers under no apparent pressure or accountability to anyone. Regulatory action against the big servicers is most welcome. The down side for the market is that foreclosures will drag out longer, suppressing prices and delaying the recovery of the residential markets and home building industry for that much longer.
Lastly, there’s a bill in Congress to speed up short sales. At least we have pressure on all fronts now.
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