Alabama’s growth not for all

Low unemployment rates and lots of headlines on industries recruited to the state leave us with the sense that Alabama is in an economic upswing.

A report last week by the nonprofit Arise Citizens’ Policy Project is a harsh reminder that most citizens are not sharing in the largesse. The report was a compilation of statistics by the U.S. Census Bureau and other respected data-gathering agencies.

Despite the state’s successful efforts to attract industry, manufacturing jobs are down. Median hourly wages are flat and household income is falling. Tuition and health insurance are less reachable for most Alabamians than they have been in the past.

In 2005-06, Alabama’s median household income dropped to $38,160, about $10,000 less than the national average. It’s a decline that has held disturbingly steady since 1999. Median wages have remained essentially flat for several years.

The most alarming statistics in the Arise report make clear that workers are not among the beneficiaries of Alabama’s recent economic success.

Even as workers’ wages remain stagnant, their productivity has gone up. The state’s gross domestic product has jumped 18 percent since 2001. During the same period, median wages have increased only 7 cents per hour, to $13.44. Wages actually dropped 61 cents per hour between 2005 and 2006.

While household incomes are heading down in Alabama, the means to lift income in the future is increasingly out of reach. Tuition costs at four-year state schools have increased 78 percent in the last 10 years.

Between 2005 and 2006, the percentage of Alabama children (under 18) without access to health insurance skyrocketed by 64 percent, Arise reports, reversing advances in recent years.

The percentage of uninsured adults also climbed from 2005 to 2006. In 2006, according to the census figures relied upon by Arise, 15.2 percent of adult Alabamians had no health insurance.

Foreclosures

Another report issued last week, this one by the Mortgage Bankers Association, provided data to back up the widespread panic over home foreclosures. Alabama has plenty to worry about, the figures suggest, but generally is in better shape than other Southeastern states.

At 6.23 percent, Alabama is among the worst states in terms of the percentage of mortgage loans past due. Look at the seriously delinquent loans, however, and Alabama is in the middle of the pack with 2.42 percent. Seriously delinquent loans are those either in the midst of foreclosure or are more than 90 days overdue.

The numbers are predictably uglier for subprime loans. Almost one in 10 subprime loans in Alabama is seriously delinquent. Seventeen percent is past due.

The most frightening figure, both in Alabama and elsewhere, involves the delinquency rates for subprime adjustable rate mortgages. Even in a low-interest environment, 13 percent of Alabamians with this type mortgage are seriously delinquent and 22 percent are overdue in their payments.

If fears that interest rates will climb are valid, a troubling statistic could become a statewide crisis.

Contact Eric Fleischauer at eric@decaturdaily.com.

Alabama remains insulated from national housing woes

Though home sales in Alabama have experienced a modest decline, the state housing market remains ahead of national trends.

Though home sales in Alabama have experienced a modest decline, the state housing market remains ahead of national trends, according to a report by the Alabama Center for Real Estate.

As of July, national existing home sales had declined by 9 percent, according to the National Association of Realtors.

In contrast, year-to-date home sales in Alabama have dropped only 2.45 percent, according to the University of Alabama-based center.

Tuscaloosa was one of a handful of Alabama counties to post year-to-date gains in their local markets, with a 1.91 percent increase in existing home sales over 2006.

Grayson Glaze, director of the Alabama Center for Real Estate, attributed the statewide drop to heightened awareness of tightening credit markets, and growing residential foreclosures at the national level.

He said the heat and drought of recent months also played a role in the decline.

The center anticipates the Alabama housing market will continue to remain ahead of the national trend as the state continues to attract new industries like ThyssenKrupp Steel.

Reach Matt Hawk at matt.hawk@tuscaloosanews.com or 205-722-0213.

 

Special Web Section Unveiled for Homeowners Who Lose Homes; Foreclosure Tax Relief Available to Many

Friday, 07 September 2007

WASHINGTON — The Internal Revenue Service unveiled a special new section today on IRS.gov for people who have lost their homes due to foreclosure. The IRS also reassured homeowners that, although mortgage workouts and foreclosures can have tax consequences, special relief provisions can often reduce or eliminate the tax bite for financially strapped borrowers who lose their homes.

The new section of IRS.gov includes a variety of information, including a worksheet designed to help borrowers determine whether any of the foreclosure-related relief provisions apply to them. For those taxpayers who find they owe additional tax, it also includes a form they can use to request a payment agreement with the IRS. In some cases, eligible taxpayers may qualify to settle their tax debt for less than the full amount due using an offer-in-compromise.

The IRS urges struggling homeowners to consider their options carefully before giving up their homes through foreclosure.

Under the tax law, if the debt wiped out through foreclosure exceeds the value of the property, the difference is normally taxable income. But a special rule allows insolvent borrowers to offset that income to the extent their liabilities exceed their assets.

The IRS cautions that under the law, relief may be limited or unavailable in some situations where, for example, part or all of a home was ever used for business or rented out.

Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. By law, this form must show the amount of debt forgiven and the fair market value of property given up through foreclosure. Though the winning bid at a foreclosure auction is normally a property’s fair market value, it may not necessarily reflect its true value in some cases.

The IRS urges borrowers to check the Form 1099-C carefully. They should notify the lender immediately if any of the information shown on their form is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home (Box 7).

The IRS also reminds lenders of their obligation to provide accurate information on the Form 1099-C. By law, the lender must send a copy of this form to the IRS. IRS follow-up contacts with taxpayers involved in foreclosure are based largely on the information reported on this form, and whether it conflicts with information provided by the taxpayer on their federal income tax return.

The IRS normally initiates these follow-up contacts by sending the borrower a notice. The tax agency urges borrowers with questions to call the phone number shown on the notice. The IRS also urges borrowers who wind up owing additional tax and are unable to pay it in full to use the installment agreement form, normally included with the notice, to request a payment agreement with the agency.

Alabama foreclosures up 68 percent

RealtyTrac Inc. reported the number of properties in some form of foreclosure last month in the United States was the highest figure in a single month since the company began tracking them in early 2005.

The company said the country experienced a total of 243,947 properties in some form of foreclosure in August - a nearly 36 percent increase from the previous month and a more than 115 percent over August of last year. That's one foreclosure for every 510 households.

It was not quite as high in Alabama, but the numbers are still elevated for the month and year to rank it 40th in foreclosure filings in the country.

Alabama had a total of 636 properties in some form of foreclosure last month - a more than 27 percent increase over July and a nearly 68 percent over August 2006. That's one foreclosure for every 3,274 households.

"The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable rate loans are beginning to reset now," said James J. Saccacio, CEO of RealtyTrac.

Saccacio also said they've seen a "drastic" increase in bank repossessions, which means that a greater percentage of homes entering foreclosure are going back to the banks.

Nevada and California continued to have the highest rates of foreclosure in the country. Nevada had more than three times the national average in August with a total of 6,197 foreclosure filings or one for every 165 households. California had more than twice the national average with a total of 57,875, or one for every 224 households.

Other top 10 states included Florida, Georgia, Ohio, Michigan, Arizona, Colorado, Texas and Indiana, respectively.

Alabama Foreclosure Homes and Those Great Deals in Dixie

Friday, 07 September 2007

Make a choice between an urban or a rural setting for your proud purchase from among the jewels in Alabama Foreclosure Homes.

Alabama is blessed with economic growth, stable home prices, a low cost of living, and excellent value in very affordably priced homes. The rate of foreclosure filings, although up on last year, is well below the majority of other states, and finding the best of these discounted properties may take you a little time. Especially if you have a longing to move into one of those best cities to be-in the state according to some polls; Helena, Alabaster or Birmingham.

A dream home in Dixie is well within your reach. Average foreclosures sales price is around $67,000 right now, with best in the land savings recorded around 40%. Never has your first investment been so affordable, or so promising to profit!

The pre foreclosure period in Alabama is short, a foreclosure action through the courts rare, and will take between 2 to 3 months only until the sale at the courthouse. If you hanker for a property already under notice of auction sale, make sure your financing is in place before you talk to the seller, who at this stage is the borrower in default. If you don't have access to the cash, get the details of the default amount from the same excellent listings service that showed you the foreclosed property currently available in Alabama., check out other liens, and if there is some equity in that perfect place, consider assuming the loan in question.

Be aware of Alabama foreclosure law before you contemplate bidding at auction; the borrower has a right to redeem for up to 12 months.

Should you miss both opportunities by design or bad luck, cast your net a little further and seek out the big fish for southern frying in real estate owned Alabama foreclosed homes.  http://www.e-foreclosuresearch.com  Your Source of Alabama Foreclosure Homes online.

Alabama foreclosures 38th in nation

Mortgage defaults up, but not as much as other states Wednesday, August 22, 2007ROY L. WILLIAMSNews staff writer Foreclosure filings in Alabama have been rising in the past year, but the problem in the state isn't nearly as severe as in others.

RealtyTrac, a California firm that tracks mortgage defaults across the nation, on Tuesday pegged Alabama's July foreclosure rate at No. 38 among the states.

Arkansas, Florida, North Carolina and Tennessee all had worse rates, as measured by the number of households for each filing.

The situation is more dire in Georgia, which had the nation's second highest rate last month, according to RealtyTrac. Only Nevada's was higher.

Alabama has been somewhat shielded by its robust economy and stable housing prices, said Mickey Green, president of Coldwell Banker Green & Co., a Hoover real estate firm.

"Alabama is not losing jobs like many other states and our housing prices didn't fluctuate drastically like so many other areas," Green said. "Foreclosures are up so much in other states because when their mortgages readjusted upwards, their homes didn't appraise for what they paid for them."

RealtyTrac says the nation's foreclosure activity in July was concentrated in a handful of states.

"While 43 states experienced year-over-year increases in foreclosure activity, just five states - California, Florida, Michigan, Ohio and Georgia - accounted for more than half of the nation's total foreclosure filings," said RealtyTrac CEO James Saccacio.

That doesn't mean Alabama is not feeling the pinch.

Filings across Alabama jumped from the same month in 2006, with RealtyTrac saying 499 homes across the state entered some stage of the foreclosure process last month. That is 62.5 percent higher than the figure for July 2006.

Foreclosure Activity Decreases 7 Percent in June According to RealtyTrac(TM) U.S. Foreclosure Market Report

 RealtyTrac(R)
(http://www.realtytrac.com), the leading online marketplace for foreclosure
properties, today released its June 2007 U.S. Foreclosure Market Report,
which shows a total of 164,644 foreclosure filings -- default notices,
auction sale notices and bank repossessions -- were reported during the
month, down 7 percent from the previous month but still up 87 percent from
June 2006. The report also shows a national foreclosure rate of one
foreclosure filing for every 704 U.S. households for the month.


RealtyTrac publishes the largest and most comprehensive national
database of foreclosure and bank-owned properties, with over 1 million
properties from nearly 2,500 counties across the country, and is the
foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The
Wall Street Journal's Real Estate Journal.


"Foreclosure activity subsided somewhat in June after hitting a
30-month high in May," said James J. Saccacio, chief executive officer of
RealtyTrac. "And the drop in activity was fairly broad, with 33 states
reporting month- over-month decreases. Still, the foreclosure rates in most
states remained substantially above last year's levels."


Nevada, California, Colorado post top foreclosure rates
With one foreclosure filing for every 175 households in June, Nevada
documented a foreclosure rate more than four times the national average and
highest among the states for the sixth month in a row. The state reported
4,722 foreclosure filings during the month, a decrease of 10 percent from
the previous month but more than three times the number reported in June 2006.


Despite a 2 percent month-over-month dip in foreclosure activity,
California registered the nation's second highest state foreclosure rate,
one foreclosure filing for every 315 households -- up from third highest
the previous month and 2.2 times the national average. The state reported
38,801 foreclosure filings during the month, the most of any state for the
sixth month in a row and more than three times the number reported in June 2006.


Colorado's foreclosure rate dropped from second highest to third
highest thanks in part to a 10 percent month-over-month decrease in
foreclosure activity in June. The state reported 5,705 foreclosure filings
during the month, a foreclosure rate of one foreclosure filing for every
317 households -- still more than twice the national average.
Other states with foreclosure rates ranking among the nation's 10
highest in June were Florida, Arizona, Ohio, Michigan, Georgia, Connecticut and Indiana.


California, Florida, Ohio document largest foreclosure totals
Following California, Florida and Ohio registered the nation's second
and third highest state foreclosure filing totals in June. Florida reported
21,035 foreclosure filings during the month, a 3 percent decrease from the
previous month but still more than double the number reported in June 2006.
The state's foreclosure rate of one foreclosure filing for every 347
households was more than twice the national average and ranked fourth
highest among all the states.


Ohio reported 11,879 foreclosure filings in June, a 10 percent decrease
from the previous month but a 100 percent increase from June 2006. With one
foreclosure filing for every 403 households, the state's foreclosure rate
was 1.7 times the national average and ranked sixth highest among the
states.


Other states with foreclosure filing totals among the nation's 10
highest in June were Michigan, Texas, Georgia, Illinois, Arizona, Colorado
and New Jersey. California cities continue to dominate top metro foreclosure rates
California cities reported six of the nation's top 10 metropolitan
foreclosure rates in June, and the top four spots were occupied by
California cities: Stockton, Merced, Modesto and Riverside-San Bernardino.
All of the top four cities registered foreclosure rates that were more than
five times the national average. Other California cities in the top 10 were
Vallejo-Fairfield at No. 7 and Sacramento at No. 8.


Las Vegas documented a foreclosure rate of one foreclosure filing for
every 138 households, giving it the fifth highest metro foreclosure rate.
The foreclosure rate in Greeley, Colo., one foreclosure filing for every
146 households, ranked sixth highest.


Other cities in the top 10 were Detroit at No. 9 and Miami at No. 10.
The RealtyTrac Monthly U.S. Foreclosure Market Report provides the
total number of foreclosure filings -- both nationwide and by state -- over
the preceding month. Data is also available at the individual county level.
RealtyTrac's report includes documents filed in all three phases of
foreclosure: Default - Notice of Default (NOD) and Lis Pendens (LIS);
Auction - Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and
NFS); and Real Estate Owned, or REO properties (that have been foreclosed
on and repurchased by a bank).

No mortgage crisis here Decatur’s housing market unaffected by national increase in foreclosures

By Evan Belanger evanb@decaturdaily.com · 340-2442

As news of Wall Street’s mortgage crash stunts housing markets across the nation, Decatur’s local home market remains unscathed — at least for the moment.

Since late last year, the U.S. mortgage market has seen an alarming increase in foreclosures.

Analysts say lenders have invested too heavily in the high-yield, high-risk sub-prime mortgage market — a business that typically caters to those who can’t afford mortgages — and now they are paying the price.

As lower start-out interest rates expire, would-be homeowners are defaulting in unprecedented numbers. That means more foreclosed properties are hitting the open market than ever before. The increasing supply is pushing fair-market prices down; lenders are finding it difficult to get their money back from the repossessed homes.

More than two dozen sub-prime mortgage companies have called it quits or filed for bankruptcy, pulling more than $6.5 trillion from the marketplace.

Experts say the crash could stagnate the housing market, forcing an increase in interest rates and negatively impacting other parts of the economy.

Despite the ominous predictions, Decatur’s market was steady as July ended. Local foreclosures for the month were down 6 percent from the same month last year and down 29 percent from July 2005.

Kim Hallmark, president of the Morgan County Association of Realtors, said home values are also holding steady when compared to previous years.

Philip Shelton, president of the Greater Morgan County Home Builders Association, said available interest rates for qualified borrowers continue to be low, about 6.5 percent.

“It’s my impression that we’re not as affected here, and that’s usually the case,” he said. “Typically, Decatur is a very conservative building area.”

All those factors reflect well on the Decatur area, said Barry Morris, economics chairman for the University of North Alabama in Florence. It could mean that local lenders have been more responsible with their money, investing less in the sub-prime market, Morris said.

“My feeling is that the whole crisis, such as it is, is being overblown, and that it will simply work itself out over time,” he said.

Morris also pointed out that economically North Alabama is doing well compared to the rest of the country, which could be driving the local home market despite the crash.

In recent weeks, two foreign companies, Thailand-based Indorama Polymers Group and Canada-based National Steel Car Limited, announced they will build plants in North Alabama, spending $510 million and employing more than 1,900 people.

The incoming plants are expected to further increase the demand for local housing.

In addition, nearly 10,000 more people are expected to move into the Huntsville area by 2011, part of the government’s Base Realignment and Closure program

Morris said all of the factors will likely power the local economy through any slouch in the national economy.

“We happen to be in a part of the country that was in the economic doldrums with a high unemployment rate for a long time,” Morris said. “Now, our economy is starting to be healthy again.”

Despite the positive economic indicators, there is still one sign that Decatur’s housing market may be slowing.

According to the Decatur Building Department, permit applications for new homes and condominiums dropped 30 percent from 2004 to 2006. That compares to a 48 percent increase in permit applications in Huntsville for the same time period.

Much of that increase is attributed to BRAC.

 


BAMAHOUSE.COM IS FOR SALE

HOMES & PROPERTY MARKETPLACE

seized real estate your source for cheap homes

Real Estate Lead Generation Report
Real Estate Agents, Learn How I Generate Over $160,000.00 In Commissions Each Year By Generating Leads On The Internet.

The Ultimate Real Estate System
Buy Nothing Down, Realize Returns As High As 50% With Tax Lien Certificates And Discount Real Estate With Foreclosures.

SeizedRealEstate.com - Property Auctions
We Increased Our Commission And The Sign-up Fee - You Now Get $30/sign-up. Low Refunds, Real Searches!

The Real Estate Under Ground
Stop Screwing Around, And Make Money In Real Estate This Month Without Credit Checks!

RepoAutos.org - Car Auctions
We Increased Our Commission And The Sign-up Fee - You Now Get $30/sign-up. Low Refunds, Real Searches!

Zero Down Real Estate Investing
How To Invest In Real Estate With No Credit And No Down Payment. Simple Step-by-step Directions.

ForeclosurePASS - Seized Real Estate
Properties At 90% Off Market Value!

SPONSORS