The Federal Housing Administration will offer homeowners who owe more than their home is worth a new “short refinance” opportunity beginning Sept. 7, but there are several requirements that “underwater” borrowers must meet and lender participation is voluntary.The refinance option will be offered to certain non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage.

Those borrowers will have the opportunity to qualify for a new FHA-insured mortgage – but they must be current on their payments.

Initially announced in March, the short refinance program falls under the Obama Administration’s larger foreclosure rescue effort, Home Affordable Modification Program, HAMP.

Under fire by critics for not sufficiently addressing the vast number of borrowers in negative equity, HAMP has been plagued by borrowers defaulting from reduced-payment modification trials.

In a report last month, the watchdog that oversees the funding mechanism for HAMP urged the U.S. Treasury to make either discretionary or mandatory the program to rescue borrowers from foreclosure through mortgage principal reductions.

Treasury officials have maintained the voluntary nature of the program, citing concerns that such a move would spark more cases of strategic defaults, or borrowers “walking away” from their mortgages despite the ability to make the monthly payments.

“We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,” said FHA Commissioner David H. Stevens in a statement Friday. “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”

The FHA has published a mortgagee letter to provide guidelines to lenders on implementing the new short refinance option. Participation is voluntary and requires the consent of all lien holders.

Moreover, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent.

The FHA urges homeowners who might be interested in the program to contact their lenders to determine if they are eligible and whether the lender agrees to the write-down a portion of the unpaid principal.  ecreditdaily.com 8-8-10

I just found this article from Liz Pulliam Weston and thought it might be good to pass along.  You can walk away from your debt but it can still follow you.  And is bankruptcy really the answer to everything.  I think not but everyones situation is going to be different, so I am not going to judge.  And the people that I know that have filed BK recently find out it is not so easy either.          There is a website at the end of the story that I have logged into and want to check out further; www.debtcollectionanswers.com.        And I want to confirm but from what I have heard, Utah collectors can go after the debt six years after the fact. 

Is there a statute of limitations on debt?

There are 2 main time limits: How long debt stays in your credit reports and how long you can be sued for it. If you’re struggling, here’s what you need to know.

[Related content: credit rating, credit reports, debt, financial planning, Liz Pulliam Weston]

By Liz Pulliam Weston

MSN Money

Credit scores are plunging. Unemployment benefits are running out. Foreclosures are high. Many Americans are, for the first time in their lives, facing bills they can’t pay.

If you’re among them, you need to keep in mind that little in life, including debt, is truly permanent. Knowing something about the legal limitations on collecting and reporting debt can help you through your crisis and allow you to get back on your feet.

Debt statutes of limitations by state

There are two major types of limitations on debt that you need to know — and that many people confuse.

• The first has to do with how long debt problems can show up in your credit reports. Federal law typically requires credit bureaus to drop negative information after seven years. The clock usually starts ticking 180 days after the account first goes delinquent (in other words, when you miss your first payment). There are exceptions: Bankruptcies can remain on your credit reports for up to 10 years, and some debts, such as unpaid tax liens, can stay on your reports indefinitely.

The other curb on debt collection is the statute of limitations, which gives creditors a certain time period — in most states, three to six years — in which to sue you over a debt.

In either case, you’ll still owe the money, unless the debt has been forgiven or discharged in bankruptcy court. Lenders can try to collect it forever — and probably will — but they can’t sue once the statute of limitations period has passed.

How long? It depends

Statutes of limitations vary widely by state and by the type of debt. States often have different rules for oral and written contracts, as well as for so-called closed-end contracts, such as installment loans, and open-ended contracts, which typically (but not always) include credit card accounts.

California, for example, has fairly short statutes of limitations on most debts: two years for oral contracts and four years for written contracts, promissory notes and credit card debts. Kentucky, by contrast, says creditors can sue over written contracts for 15 years after the last payment was made and for five years on most other debts, including credit cards.

You can start your research at websites such as the Credit Info Center, which has a chart that includes links to relevant state laws.

Some other key points:

• The devil’s in the details. Not only do states have different statutes of limitations for different debts, but two states may treat the same debts differently. A credit card debt might be considered an open-ended account in one state and a written contract in another. The only way to know for sure is to check your state laws or consult an attorney.

• You can inadvertently restart the clock. Generally, the statute of limitations starts ticking from the “date of last activity” on the accounts, said Los Angeles bankruptcy attorney Scott Bovitz. (If the account is still listed in your credit reports, the date of last activity should be noted there.) On a credit card debt, that could be the last payment you made or the last purchase you charged. But in some states, making a payment on an old debt, agreeing to an extended repayment plan or even acknowledging that the debt is yours can extend the statute of limitations or restart the clock.

• A creditor may still sue you after the statute of limitations has run out. Suing or threatening to sue you after the statute of limitations has run out violates the Fair Debt Collection Practices Act, but that doesn’t mean it doesn’t happen. To prevent the creditor from winning a judgment against you, you’ll need to show up in court and point out that the statute has expired.

• The creditor may try to pick a better venue. If you sign a credit contract and move to a state with different limits, the creditor may try to sue you in the state that has the longer statute. If that’s not the state in which you now live, you should protest, because generally the state where you reside is the one whose statutes should apply.

• Debts can still exist even if the creditor can’t sue. Some people erroneously believe that debts are erased after the statute of limitations has run out. Although the creditor’s ability to sue you has been curtailed, it can still try other methods to persuade you to pay, including calls and letters. The debt can also be sold to another collector that can renew efforts to get you to pay. A legitimate debt is truly gone only when it’s paid or erased in bankruptcy court.

• Collectors can’t legally restart the seven-year clock by “re-aging” the debt (giving it a new delinquency date) or by selling it to another agency. The Federal Trade Commission shut down one large collection agency, Capital Acquisitions and Management, after charging the company repeatedly had re-aged debts in its attempts to collect.

Watch your step

If you can’t pay a debt, you’ll want to avoid saying anything that could restart the statute of limitations, including acknowledging the bill is yours or promising to make payments.

If you’re sure the debt is too old for a lawsuit, you could send the collector a letter via certified mail, return receipt requested. The letter should state that the statute of limitations has expired and that you want all collection efforts stopped.

Otherwise, check out the advice in “Don’t ignore that debt collector” for how to handle debts and reduce the chances of getting sued. Then read “How to not pay your bills” for advice on prioritizing what you pay in a crisis.

Two other resources to check are Debt Collection Answers, a website of consumer advocate Gerri Detweiler, and “Solve Your Money Troubles: Debt, Credit & Bankruptcy” by Robin Leonard and Margaret Reiter.

If a debt collector is particularly abusive or you get sued, you may want a lawyer’s help. The National Association of Consumer Advocates can provide referrals to attorneys familiar with fair credit laws

Just got the latest copy of Money magazine titled “America’s Best Places to Live” and Utah hit the list multiple times. 

Number 18 is South Jordan.  Orem is # 45  West Jordan came in at 61 and going down south, St. George #80. 

It is so nice to see the west side be acknowledged.  It is where I live and work with pride.  Rock on WEST SIDE.

Cumbersome short sales often the only route for a home seller in trouble By LESLEY MITCHELLThe Salt Lake TribuneUpdated Jun 22, 2010 10:02AM After years of strong sales and of owners using their homes as ATMs — only to see it all come falling down in the biggest housing crash in recent memory — it has come to this.If you want to get a home in trouble sold in today’s market, there’s a strong likelihood you’ll have to go through the complex, time-consuming short sale route to get it done.And if you’re a homebuyer, it’s almost impossible to avoid this growing portion of the homes listed for sale.It didn’t take Alesha Sumsion and her husband long after they started house hunting to notice just how much short sales have proliferated along the Wasatch Front.“Most of the homes we looked at ended up being short sales,” she said. Not surprisingly, the couple ended up buying their dream last month, a 6,000-square-foot home with all the bells and whistles, via a short sale at a sizeable discount in South Jordan.In Salt Lake County, for example, nearly one-quarter of all residential listings are short sales, which involve properties being offered by those who owe more than their properties are worth, known as being under water.Many sellers in this situation can’t keep up their monthly mortgage payments. Rather than let the properties fall into foreclosure, they try convince their lenders to accept less than they are owed in order to get the property sold.Short sales gain momentum in bad economic times and when home sales and prices begin to stagnate or fall. They often peak when the market bottoms, which most economists agree could happen by the end of this year or in early 2011.Just as with foreclosures, short sales and their causes can be traced to a variety of factors, as a recent tour of listings with Realtor Mary Olsen demonstrated. Olsen of Keller Williams South Valley Realty specializes in short sales and often is referred work by other Realtors. It’s all in the timing » Buying at the height of the market in 2006 and 2007 — and having to sell in a down market — is a big factor in a lot of today’s short sales. Just ask Jeremy Stroup of West Jordan, who purchased his three-bedroom, two-bath rambler in a new subdivision in 2007 for $362,000. He has watched it fall in value by more than $100,000, and after a divorce late last year, Stroup began to worry not only about how under water his home was, but about making mortgage payments over the long term on only his salary.After efforts to work with his lender on a loan modification failed, Stroup opted for the short sale route. Months later, the bank has approved a selling price of about $250,000, and he could be out and living with his mother by the end of the month. — Although there’s some relief he will soon move past his predicament, “there is definitely disappointment and stress in losing your home,” he said.Ill-gotten gains » Another generator of short sales is mortgage fraud, which has become a growing problem in recent years. A 2,000-square-foot starter home in a quiet West Jordan neighborhood illustrates some of the shady deals that have ended up badly.The owner of record claims his identity was stolen and that thieves purchased the home with his personal information. The scammers cashed out of equity gained during the housing boom by taking out a second mortgage and later rented the property before skipping town.But the victim, who found out a home was purchased in his name only when he was denied credit, is still on the hook for the fraudulent mortgage while authorities sort out the mess. Olsen has been hired and found a buyer willing to pay $199,900 for the fixer-upper with a weedy lawn, a missing stove and in need of a host of repairs.The weight of multiple loans » Olsen says she’s no longer surprised when a home has not one, but two or even three mortgages.A few years ago “everybody was using their homes as an ATM machine,” taking out home-equity loans to buy new cars, motor homes, new furniture.In Riverton, she shows a home that’s part of a deal complicated by the fact that two banks are involved. Although the owner is upside-down on her mortgage and wants out, and buyers have made offers, Olsen has yet to get both banks to agree on a selling price. So she waits.An owner in this situation often tries to unload properties via a short sale because they generally damage credit less than a foreclosure.But a bank has to figure out if a short sale is in its best interest. Such sales often can be beneficial to lenders because they typically result in losses of just under 20 percent of the loan amount, compared with losses of as much as 40 percent for homes sold after foreclosure, according to various estimates.That’s because the costs of foreclosure can include not only legal fees, but taxes, insurance and the expense of maintaining the home until the property is sold. Also, there could be costs for repairing property damage that sometimes occurs when a homeowner is kicked out in a foreclosure situation.— — But banks, though moving faster in short sale situations than they were just a year ago, still can take months to approve and complete one. That can dramatically stretch out the home-buying process to many months.Why does it take so long? Financial services companies are in the business to lend and service mortgages, not to dispose of real estate assets. Simply put, many aren’t very good at dealing with problem loans. And right now, banks are swamped with short sale requests.“They are buried,” said Lyman King with Security National Mortgage in Midvale.Plus, after mortgages are originated by a bank, they often are pooled and purchased by investors, which must sign off on short sales, as must companies that are servicing the loans. Much time also is spent analyzing a borrower’s financial status to determine whether they should even be allowed to walk away from part of their loan obligation. (If you have sufficient assets, a bank may require instead that you bring cash to closing.)Financial institutions, too, must analyze whether a short sale is in their best interest and that of investors. Will it result in less of a loss than if the property fell into foreclosure and was later sold?If a borrower has taken out a home-equity line of credit or loan, this adds even more time to the process because two companies and related investors must work together to sort out their losses.Once a short sale has been approved, an agent must be found to list the home and help determine an asking price. The lender also must decide whether to accept or decline offers.All this can add up to months of time, as was the case of South Jordan homebuyer Sumsion. She first saw the home she eventually purchased a year ago, but initially passed because the price was too high. As months passed and her search proved fruitless, around the holidays she and her husband noticed that the South Jordan property was still for sale.After a six-figure markdown, and a bank’s willingness to let the property go at a huge loss, the Sumsions finally closed on the property last month.“If we were going to buy a new home, it had to be something we really, really, liked,” she said. “And we liked this house. We feel lucky we were finally able to buy it.”lesley@sltrib.com  

FOR MORE INFORMATION, PLEASE VISIT:  www.MyRescueRealtor.com

Mary OlsenAssociate Broker/Realtor
SFR  Short Sale & Foreclosure Resource
CDPE Certified Distressed Property ExpertKeller Williams South Valley Realty
801-661-3175 mobile
801-676-5824 e-fax  « Previous Page   — Tips for sellers Trouble » If you’re in financial trouble, consider seeking a loan modification in which a lender might modify mortgage terms to lower payments. Call 211 to get a list of nonprofit agencies that can assist you. Modification » If you can’t get a modification, consider seeking a short sale, which involves asking your lender to accept less for a home than is owed. Document all calls, provide requested information and follow up. Short sale » If you try a short sale, remember that lenders nationally are overwhelmed. You’ll need to be persistent. Deed » Don’t sign over your deed to anyone who promises to help you with your mortgage. If you do, you would still be obligated to repay the loan but you would not have rights to your property. — Tips for home-buyers Market value » Find out the fair-market value of a property you’re interested in based on selling prices for similar homes in the area. Although you may get a discount of 20 percent or more on a home’s market value by buying through a short sale, banks aren’t in the business to give real estate away. Make too low of an offer, and it will be rejected. Inspection » Carefully inspect the property and consider hiring a professional home inspector to detect costly problems. Homes involved in a short sale are sold as-is. An inspection might be even more important in a short sale than with a traditional sale. Pre-approval » Get pre-approved for a loan. Lenders don’t like to see an offer contingent on the buyer getting a loan or selling an existing home. Patience » A short sale does not mean a short amount of time. It could take months before you know whether your offer is    FOR MORE INFORMATION, PLEASE VISIT:  www.MyRescueRealtor.com

Found this article in the Mpls. Star Tribune.  Where will it hit next.

http://www.startribune.com/investigators/95692619.html

in jail for being in debt

You committed no crime, but an officer is knocking on your door. More Minnesotans are surprised to find themselves being locked up over debts.

By CHRIS SERRES and GLENN HOWATT , Star Tribune staff writers

Last update: June 9, 2010 - 7:58 AM

THIS HAS BEEN EDITED.

It’s not a crime to owe money, and debtors’ prisons were abolished in the United States in the 19th century. But people are routinely being thrown in jail for failing to pay debts. In Minnesota, which has some of the most creditor-friendly laws in the country, the use of arrest warrants against debtors has jumped 60 percent over the past four years, with 845 cases in 2009, a Star Tribune analysis of state court data has found.

Not every warrant results in an arrest, but in Minnesota many debtors spend up to 48 hours in cells with criminals. Consumer attorneys say such arrests are increasing in many states, including Arkansas, Arizona and Washington, driven by a bad economy, high consumer debt and a growing industry that buys bad debts and employs every means available to collect.

Whether a debtor is locked up depends largely on where the person lives, because enforcement is inconsistent from state to state, and even county to county.

In Illinois and southwest Indiana, some judges jail debtors for missing court-ordered debt payments. In extreme cases, people stay in jail until they raise a minimum payment. In January, a judge sentenced a Kenney, Ill., man “to indefinite incarceration” until he came up with $300 toward a lumber yard debt.

“The law enforcement system has unwittingly become a tool of the debt collectors,” said Michael Kinkley, an attorney in Spokane, Wash., who has represented arrested debtors. “The debt collectors are abusing the system and intimidating people, and law enforcement is going along with it.”

How often are debtors arrested across the country? No one can say. No national statistics are kept, and the practice is largely unnoticed outside legal circles. “My suspicion is the debt collection industry does not want the world to know these arrests are happening, because the practice would be widely condemned,” said Robert Hobbs, deputy director of the National Consumer Law Center in Boston.

Debt collectors defend the practice, saying phone calls, letters and legal actions aren’t always enough to get people to pay.

“Admittedly, it’s a harsh sanction,” said Steven Rosso, a partner in the Como Law Firm of St. Paul, which does collections work. “But sometimes, it’s the only sanction we have.”

Taxpayers foot the bill for arresting and jailing debtors. In many cases, Minnesota judges set bail at the amount owed.

In Minnesota, judges have issued arrest warrants for people who owe as little as $85 — less than half the cost of housing an inmate overnight. Debtors targeted for arrest owed a median of $3,512 in 2009, up from $2,201 five years ago.

Those jailed for debts may be the least able to pay.

“It’s just one more blow for people who are already struggling,” said Beverly Yang, a Land of Lincoln Legal Assistance Foundation staff attorney who has represented three Illinois debtors arrested in the past two months. “They don’t like being in court. They don’t have cars. And if they had money to pay these collectors, they would.”

The debts — often five or six years old — are purchased from companies like cellphone providers and credit card issuers, and cost a few cents on the dollar. Using automated dialing equipment and teams of lawyers, the debt-buyer firms try to collect the debt, plus interest and fees. A firm aims to collect at least twice what it paid for the debt to cover costs. Anything beyond that is profit.

Nearly all of them had received court judgments for not paying a delinquent debt. One by one, they stepped forward to fill out a two-page financial disclosure form that gives creditors the information they need to garnish money from their paychecks or bank accounts.

This process happens several times a week in Hennepin County. Those who fail to appear can be held in contempt and an arrest warrant is issued if a collector seeks one. Arrested debtors aren’t officially charged with a crime, but their cases are heard in the same courtroom as drug users.

“I was surprised that the police would waste time on my petty debts,” said Williams, 45, of Minneapolis, who had a $5,773 judgment from a credit card debt. “Don’t they have real criminals to catch?”

Few debtors realize they can land in jail simply for ignoring debt-collection legal matters. Debtors also may not recognize the names of companies seeking to collect old debts. Some people are contacted by three or four firms as delinquent debts are bought and sold multiple times after the original creditor writes off the account.

“They may think it’s a mistake. They may think it’s a scam. They may not realize how important it is to respond,” said Mary Spector, a law professor at Southern Methodist University’s Dedman School of Law in Dallas.

A year ago, Legal Aid attorneys proposed a change in state law that would have required law enforcement officials to let debtors fill out financial disclosure forms when they are apprehended rather than book them into jail. No legislator introduced the measure.

Joy Uhlmeyer, who was arrested on her way home from spending Easter with her mother, said she defaulted on a $6,200 Chase credit card after a costly divorce in 2006. The firm seeking payment was Resurgence Financial, the Illinois debt buyer. Uhlmeyer said she didn’t recognize the name and ignored the notices

“The really maddening part of the whole experience was the complete lack of information,” she said. “I kept thinking, ‘If there was a warrant out for my arrest, then why in the world wasn’t I told about it?’”.

“If you talk to 15 different counties, you’ll find 15 different approaches to handling civil warrants,” said Sgt. Robert Shingledecker of the Dakota County Sheriff’s Office. “Everything is based on manpower.”

Local police also can enforce debt-related warrants, but small towns and some suburbs often don’t have enough officers.

The Star Tribune’s comparison of warrant and booking data suggests that at least 1 in 6 Minnesota debtors at risk for arrest actually lands in jail, typically for eight hours. The exact number of such arrests isn’t known because the government doesn’t consistently track what happens to debtor warrants.

“There are no standards here,” said Gail Hillebrand, a senior attorney with the Consumers Union in San Francisco. “A borrower who lives on one side of the river can be arrested while another one goes free. It breeds disrespect for the law.”

Many debtors get a second surprise after being arrested — their bail is exactly the amount of money owed.

Hennepin County automatically sets bail at the judgment amount or $2,500, whichever is less. This policy was adopted four years ago in response to the high volume of debtor default cases, say court officials.

Some judges say the practice distorts the purpose of bail, which is to make sure people show up in court.

“It’s certainly an efficient way to collect debts, but it’s also highly distasteful,” said Hennepin County District Judge Jack Nordby. “The amount of bail should have nothing to do with the amount of the debt.”

Judge Robert Blaeser, chief of the county court’s civil division, said linking bail to debt streamlines the process because judges needn’t spend time setting bail.

cserres@startribune.com • 612-673-4308 ghowatt@startribune.com • 612-673-7192

As seen in the Salt Lake Tribune this morning, Congrats to the attorney, the homeowner and the Judge.  Let’s see what happenings in what time frame.

Court order halts BofA foreclosure sales in Utah

Mortgages » Ruling over compliance with state law could impact other lenders.

By Tony Semerad The Salt Lake Tribune

Updated:06/07/2010 10:52:25 PM MDT

A St. George judge has temporarily halted all foreclosure sales in Utah by Bank of America, based on an attorney’s claim that the lending giant and related companies are not properly registered to do business in the state. The May 22 preliminary injunction against BofA’s foreclosure subsidiary ReconTrust and other companies has the potential to affect thousands of foreclosures in Utah. The two-page order, issued by 5th District Court Judge James L. Shumate in St. George, bars ReconTrust and others from conducting trustee sales in Utah until a determination is made whether ReconTrust is legally registered with the Utah Division of Corporations. The order was issued in connection with a foreclosure against homeowner Peni Cox of Washington County. In response, BofA has filed in federal court to have the injunction rescinded. The order comes amid a dramatic surge in foreclosures across the state, involving more than 22,000 homeowners who have fallen behind on their mortgage payments since mid-2008. Attorney J. Christian Barlow of St. George, who sought the injunction on Cox’s behalf, said if the order becomes permanent, BofA and other mortgage companies would be required to register in the state and have offices where homeowners can negotiate with them face-to-face. In a statement sent to news outlets, Barlow accused BofA and other big mortgage lenders of “arrogance and audacity'’ for taking billions of dollars in federal bank bailout cash, while “profiting by kicking people out of their homes without due process under the law of the State of Utah.” Barlow said the judge “felt so strongly'’ in the case, he issued the preliminary injunction without a hearing to halt the foreclosure process. Barlow did not respond to calls Monday seeking additional comment. A BofA spokeswoman said that as national institutions, ReconTrust and BofA are governed by federal laws and regulations, not state statutes, but that none of the defendants had a chance to make that argument before the Utah order was issued. Bank attorneys have filed an emergency motion in federal court to have the state judge’s order either dissolved, modified to apply only to ReconTrust or delayed in taking effect until bank officials can argue their position before a judge, Jumana Bauwens said. In the meantime, Bauwens said, BofA and its affiliates have halted residential foreclosure sales in Utah to comply with the injunction. The bank is committed to helping customers avoid foreclosure whenever possible, she said. “Foreclosure is a last resort and when it occurs, it is Bank of America and its related affiliates’ policy to handle foreclosures in compliance with applicable laws.'’ An online check by The Salt Lake Tribune confirmed that the Utah Department of Commerce’s corporations division has no record of ReconTrust being registered a business entity in Utah. Three corporate registration records for BofA companies are all listed as having expired. On its website, ReconTrust lists 977 foreclosures it is pursuing in 24 of Utah’s 29 counties, with 381 of those foreclosures in Salt Lake County, 213 in Utah County and 99 in Washington County. BofA, headquartered in Charlotte, N.C., is the nation’s second-largest bank based on market capitalization, with offices in 150 countries, including regional offices in South Jordan. Among other defendants named in the case is Mortgage Electronic Registration Systems, or MERS, a mortgage data-collection company based in Reston, Va. Created by the lending industry as a registry to track mortgages, MERS’ name is listed as the foreclosing party on thousands of delinquent mortgages in Utah, most of them in Salt Lake County, on behalf of dozens of the nation’s largest lenders, including BofA. It was unclear whether the order required MERS to halt Utah foreclosures filed under its name on behalf of lenders other than BofA. A MERS company spokeswoman said Monday she was not able to comment on the case. tsemerad@sltrib.com

Metro areas with highest foreclosure rates

1 » Las Vegas-Paradise, Nev.

2 » Modesto, Calif.

3 » Cape Coral-Fort Myers, Fla.

4 » Riverside-San Bernardino-Ontario, Calif.

5 » Stockton, Calif.

34 » Provo-Orem

As for the rate of foreclosures-related filings, one in every 77 of all housing units in the Salt Lake area, or 1.3 percent, received a notice in the first three months of the year, RealtyTrac said. That’s the 35th-highest rate of filings among all 206 metro areas in the RealtyTrac report, up from No. 62 in the first quarter 2009 and No. 107 in the first quarter 2008.

Provo-Orem was No. 34, while Ogden-Clearfield was No. 53.

RealtyTrac said Salt Lake’s growing foreclosure-filings rate demonstrates how the problem has spread in a big way from cities in California, Arizona and Nevada into other once-booming areas. Utah, which in the mid-2000s had one of the most robust economies and lowest foreclosure rates now has the fifth-highest rate of foreclosure filings of all states, behind only Nevada, Arizona, Florida and California.

Defaults and foreclosures in Utah first started to creep up in 2008, after the real estate market and state’s overall economy began to take a turn for the worse. As home sales and prices have fallen over the past two years, more and more homeowners are “underwater,” meaning they owe more than their homes are worth. Many of those in this situation are unable to sell their homes for enough money to cover their mortgages after they encounter financial trouble and can’t keep up with their payments.

That’s why Mark Knold, chief economist for the Utah Department of Workforce Services, isn’t surprised that Utah’s foreclosure rate is significantly higher than the national average. Nationally, only one in every 138 households have received a foreclosure filing, or 0.72 percent, compared with Utah’s much higher one-in-77 rate.

“We were late in to the housing bubble, we’ll be the last to get out,” he said. Knold believes Utah’s foreclosure problem will be at its worst this year and should begin to improve in 2011.

In some cases, homeowners can sell their homes via a short sale if lenders agree to accept less than they are owed. Some lenders also are willing to modify mortgages, which can lower a borrower’s monthly mortgage payment. But either method of avoiding foreclosure can be difficult and time-consuming to complete, and not all borrowers qualify for help.

Foreclosures: Salt Lake hardest hit in mortgage crisis

By Lesley Mitchell

Updated: 04/29/2010 07:52:17 AM MDT  source:  http://www.sltrib.com/news/ci_14980974

35 » Salt Lake City

53 » Ogden-Clearfield

Source: RealtyTrac

Buying may be better than renting in Salt Lake

Last week the New York Times analyzed the rent vs. buy decision and concluded that in some markets, including Salt Lake City, buying may make more sense than renting. In the article, the newspaper analyzed the costs of buying a home compared to renting a similar one. The New York Times did the comparison by looking at the rent ratio, the purchase price of a typical house divided by the annual rent of a similar house. According to the Times, a number above 20 means you should consider renting and one below makes the case for buying stronger.

At 17.6, the rent ratio for Salt Lake City may make a case for buying. Although it is not as low as in some metro areas, the fourth quarter 2009 ratio falls below 20 and is lower than the 19.3 recorded during the same period in 2005. In comparison, areas that had the lowest ratios in the Times analysis were Cleveland (12.6), Detroit (12.1) and Pittsburgh (11.7). Areas with the highest ratios were Oakland, Calif. (36.3), Honolulu (34.8) and San Jose, Calif. (32.3).

Watch your back and your pocket book.  This article was brought up to me yesterday morning and then it was brought up again in sales meeting.  There is always a scam it seems in real estate and this is just the lastest one. 

Long story short, if your home is in a newer development, I would say anything since 2001, check and read your CC&R, Convenents, Conditions and Restrictions. 

There are master plan developments that do charge a similar fee, but that is on the up and up.  Those moneys do go back into the community.  These other fees go right into someones else bank account, that might not have any concern in the property except to make a buck for his own self interest.

This was taken in full from KSL TV. 

 http://www.ksl.com/?nid=148&sid=7146374

Hidden transfer fees tied to real estate; payout lasts 99 years

July 13th, 2009 @ 10:18pm

By Lori Prichard

SALT LAKE CITY — If you plan on buying or selling a house, industry experts warn there’s a new hidden fee out there that could cost you thousands of dollars; and not just you, but the person who eventually buys the house from you in the future.

It’s no secret the housing industry is in crisis. Land developers and home builders are sitting with excess supply and little demand, but there is a way to make more money off of you.

We’ve uncovered hundreds of these documents filed on property throughout Salt Lake and Utah counties, most filed in the last year. Already, some are sounding the alarm.

“It wasn’t passing the smell test,” Salt Lake County Recorder Gary Ott said. “Is it legal? Yeah.”

“We’re unanimously opposed to these types of transfer fees,” said Cort Ashton, president of the Utah Land and Title Association.

Transfer fees tacked on to subdivisions, condominiums, even single homes. Buyer beware: You could have these fees tied to your property.  

If you do, when you go to sell you will owe someone — either the developer, Builder, or the most recent homeowner - 1 percent of your gross sale price.

“Is it legal? Yeah,” said Satl Lake County Recorder Gary Ott. “If it’s a $400,000 house, 1 percent makes a difference.”

But that’s not all, there’s also a 99-year payout. KSL saw hundreds of documents filed on thousands of acres of property across the Wasatch Front: all span 99 years. That means not only will you owe 1 percent of the gross sale price, but so will the person you sell to and the next, and the next for 99 years.

We took what we found to State Rep. Curt Webb, who also owns a title company.

“There’s no way. I was really surprised that the concept would even fly,” Webb said.

But Webb agrees it has “flown” well. He argues those who buy today, 50 years, 75 years down the road are just paying more for a house, and developers and builders stand to make millions.

“There’s something inequitable about this,” Webb said.

But Salt Lake attorney David Steffensen disagrees.

“What the developer can do is say: ‘I created value that will last for years. I will create an income stream that will last for years,’” Steffensen said.

Steffensen is an agent for Texas-based company Freehold Licensing. Freehold trademarked this concept.

“After all, it’s just 1 percent,” Steffensen said.

But others argue 1 percent could mean thousands, and many believe buyers don’t even know about these fees.

“I think it is fair because these are recorded instruments. They are put in place — in the front door, out the front door. A buyer is on notice that this is in place,” Steffensen said.

We went knocking on doors to find out what homebuyers did or didn’t know about transfer fees.

“We had never heard of it until you knocked on the door,” recent homebuyer Dan Keiser said.

Rebecca Dupaix, who also recently bought her home, said, “It’s ridiculous, I think. They should at least tell us what’s going on.”  

There’s an interesting twist to the story: These homeowners have had transfer fees filed against their Silver Lake property in Utah County, but the developer told us these buyers didn’t know about the transfer fees because he removed them.

DAI wouldn’t talk to us on camera but said the transfer fees were taken off because, at this point, they’re not sure how buyers will react.

“There is going to be somebody really, really mad when they have to pay that,” Ott said.

Mad because many believe buyers who aren’t lucky enough to get the fees removed simply aren’t being told up front about the fees they will eventually have to pay.

“Joe Buyer isn’t used to looking and reading the CC&Rs. They’re something that most people don’t pay that much attention to some of those details at the time of closing,” Ashton said.

CC&Rs are Covenants, Conditions and Restrictions. If you’re buying property, read carefully.

“There should be better disclosure. Like you said, screaming disclosure is a good word for it. Otherwise, it will slip by,” Webb said.

Two years ago, California’s legislature made sure there was better disclosure to the buyer. Recently, Texas, Missouri and Florida have limited the use of private transfer fees. Here in Utah, we fully expect this issue to come to a head in the next legislative session.

Bottom line: If you plan on buying a home, insist that your title company provide you with a copy of all the Covenants, Conditions and Restrictions tied to the house. Comb through those documents. If you see a transfer fee on the home you want to buy, either negotiate to buy the house for less, demand that the transfer fee be removed or walk away.

Tax Credit for Homebuyers

First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.  Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.  Buyers will have to repay the credit if they sell their homes within three years.