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News Briefs

Americans face post-foreclosure hell as wages garnished, assets seized Reuters By Michelle Conlin Here’s something I found on Reuters News Service. It’s sad to think that so many Americans have faced, are are facing foreclosure. It’s an opportunity for those who know how to capitalize on it, but for those who don’t, it can be a living nightmare. By Michelle Conlin NEW YORK (Reuters) - Many thousands of Americans who lost their homes in the housing bust, but have since begun to rebuild their finances, are suddenly facing a new foreclosure nightmare: debt collectors are chasing them down for the money they still owe by freezing their bank accounts, garnishing their wages and seizing their assets. By now, banks have usually sold the houses. But the proceeds of those sales were often not enough to cover the amount of the loan, plus penalties, legal bills and fees. The two big government-controlled housing finance companies, Fannie Mae and Freddie Mac, as well as other mortgage players, are increasingly pressing borrowers to pay whatever they still owe on mortgages they defaulted on years ago. Using a legal tool known as a "deficiency judgment," lenders can ensure that borrowers are haunted by these zombie-like debts for years, and sometimes decades, to come. Before the housing bubble, banks often refrained from seeking deficiency judgments, which were seen as costly and an invitation for bad publicity. Some of the biggest banks still feel that way. But the housing crisis saddled lenders with more than $1 trillion of foreclosed loans, leading to unprecedented losses. Now, at least some large lenders want their money back, and they figure it’s the perfect time to pursue borrowers: many of those who went through foreclosure have gotten new jobs, paid off old debts and even, in some cases, bought new homes. "Just because they don't have the money to pay the entire mortgage, doesn't mean they don't have enough for a deficiency judgment," said Florida foreclosure defense attorney Michael Wayslik. Used Car Prices Are Plummeting. Here’s Why Time.com by Brad Tuttle Good news for those of us who are in the market to buy a used car. Thanks to people buying new cars and selling their old ones, there’s now a glut of previously owned cars on the market just waiting to be purchased. When the market for new car sales is hot, smart buyers know to look instead at the overflowing inventory of used cars—a supply that's cheap and getting cheaper. Drive Your Dream Car This Summer Without Spending a Fortune It’s a great time to be in the market for a used car. The Wall Street Journal recently cited data indicating that used-car prices declined for the four consecutive months through August. USA Today noted that the average used car purchased at a franchised auto dealership sold for $10,883 in August, down 1.6% from the previous year and 2.4% versus July 2014. Edmunds.com predicted that used car prices would dip around 2% overall this year, and that some used vehicles—in particular, large crossover SUVs like the Chevy Traverse—would drop in price by upwards of 8%. What’s more, the forecast calls for used-car prices to stay on a downward trend for the foreseeable future. AutoTrader.com, the Atlanta-based online marketplace for new and used vehicles, says that its inventory of certified pre-owned vehicles has risen 6% since March, and that by year’s end buyers can expect a handful of top “pre-loved” car models—including the 2011 versions of the Ford Fusion, Toyota Corolla, and Honda CR-V—to be priced at roughly 5% less than what dealers were asking just six months ago. What accounts for the sudden price dip? A quick review of what has happened in the new and used car markets over the past few years sheds some light. In 2011, used vehicle prices hit a 16-year high in the wake of the Great Recession, when relatively few consumers were purchasing or leasing new cars because money was tight and credit was less available. That meant a shrinking supply of used cars, as there were fewer trade-ins or vehicles coming off lease. The “Cash for Clunkers” stimulus program also removed millions of used vehicles from the market, further tightening supply.
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Americans face post-foreclosure hell as wages garnished, assets seized Reuters By Michelle Conlin Here’s something I found on Reuters News Service. It’s sad to think that so many Americans have faced, are are facing foreclosure. It’s an opportunity for those who know how to capitalize on it, but for those who don’t, it can be a living nightmare. By Michelle Conlin NEW YORK (Reuters) - Many thousands of Americans who lost their homes in the housing bust, but have since begun to rebuild their finances, are suddenly facing a new foreclosure nightmare: debt collectors are chasing them down for the money they still owe by freezing their bank accounts, garnishing their wages and seizing their assets. By now, banks have usually sold the houses. But the proceeds of those sales were often not enough to cover the amount of the loan, plus penalties, legal bills and fees. The two big government-controlled housing finance companies, Fannie Mae and Freddie Mac, as well as other mortgage players, are increasingly pressing borrowers to pay whatever they still owe on mortgages they defaulted on years ago. Using a legal tool known as a "deficiency judgment," lenders can ensure that borrowers are haunted by these zombie-like debts for years, and sometimes decades, to come. Before the housing bubble, banks often refrained from seeking deficiency judgments, which were seen as costly and an invitation for bad publicity. Some of the biggest banks still feel that way. But the housing crisis saddled lenders with more than $1 trillion of foreclosed loans, leading to unprecedented losses. Now, at least some large lenders want their money back, and they figure it’s the perfect time to pursue borrowers: many of those who went through foreclosure have gotten new jobs, paid off old debts and even, in some cases, bought new homes. "Just because they don't have the money to pay the entire mortgage, doesn't mean they don't have enough for a deficiency judgment," said Florida foreclosure defense attorney Michael Wayslik. Used Car Prices Are Plummeting. Here’s Why Time.com by Brad Tuttle Good news for those of us who are in the market to buy a used car. Thanks to people buying new cars and selling their old ones, there’s now a glut of previously owned cars on the market just waiting to be purchased. When the market for new car sales is hot, smart buyers know to look instead at the overflowing inventory of used cars—a supply that's cheap and getting cheaper. Drive Your Dream Car This Summer Without Spending a Fortune It’s a great time to be in the market for a used car. The Wall Street Journal recently cited data indicating that used-car prices declined for the four consecutive months through August. USA Today noted that the average used car purchased at a franchised auto dealership sold for $10,883 in August, down 1.6% from the previous year and 2.4% versus July 2014. Edmunds.com predicted that used car prices would dip around 2% overall this year, and that some used vehicles—in particular, large crossover SUVs like the Chevy Traverse—would drop in price by upwards of 8%. What’s more, the forecast calls for used-car prices to stay on a downward trend for the foreseeable future. AutoTrader.com, the Atlanta-based online marketplace for new and used vehicles, says that its inventory of certified pre-owned vehicles has risen 6% since March, and that by year’s end buyers can expect a handful of top “pre-loved” car models—including the 2011 versions of the Ford Fusion, Toyota Corolla, and Honda CR-V—to be priced at roughly 5% less than what dealers were asking just six months ago. What accounts for the sudden price dip? A quick review of what has happened in the new and used car markets over the past few years sheds some light. In 2011, used vehicle prices hit a 16-year high in the wake of the Great Recession, when relatively few consumers were purchasing or leasing new cars because money was tight and credit was less available. That meant a shrinking supply of used cars, as there were fewer trade-ins or vehicles coming off lease. The “Cash for Clunkers” stimulus program also removed millions of used vehicles from the market, further tightening supply.

News Briefs