More Mainers lose their homes to foreclosure
The Associated Press
PORTLAND — Data from Maine-chartered banks and credit unions shows another increase in the number of people losing their homes to completed foreclosures.
But the first quarter numbers released this week by Bureau of Financial Institutions Superintendent Lloyd LaFountain also contain some good news: The inventory of mortgage loans in foreclosure declined and the number of delinquent mortgage loans declined, as well.
LaFountain says Maine continues to be better off than most other states. He also says the foreclosure rate doesn't pose a threat to the stability of Maine-chartered financial institutions.
The Bureau of Financial Institutions has advice on preventing foreclosure.
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54 COMMENTS
Sam said...
Maine is in better shape in large part because state financial regulations made up for the shortcomings of the federal standards that had been relaxed. So much for business being "over regulated" and Maine being a "nanny state" ... if we had listened to the folks who routinely spout those catch phrases then we would be as bad off in this area as the rest of the country.
July 1, 2010 at 8:45 AM Report abuse
XPortlander said...
Sam It is ging to get worse much worse not as bad a FLA or Detroit but Obama keeps saying it is ging to get better but it is not even close to getting better.
July 1, 2010 at 8:47 AM Report abuse
crackhead said...
Hope and change. yes we can.
July 1, 2010 at 8:49 AM Report abuse
Iwatch said...
Maine is always last to feel any economical trends. After pricing real estate all throughout the Eastern USA, we found Maine homes among the highest with the least to offer in terms of amenities. Ditto to property taxes.
July 1, 2010 at 8:50 AM Report abuse
trisailer said...
Watch and see if it gets worse when the unemployment benefits run out. It will.
July 1, 2010 at 8:56 AM Report abuse
Native2Maine said...
How many of these homes were foreclosed on in part due to the high taxes on the property??
July 1, 2010 at 9:10 AM Report abuse
SteveCScharf said...
None, banks don't foreclose on property because of unpaid taxes. When you have a mortgage, the bank pays the taxes and includes it in the mortgage bill.
July 1, 2010 at 9:20 AM Report abuse
crackhead said...
Maybe mortgages would be paid if Mainers weren't taxed so high on everything....
July 1, 2010 at 9:41 AM Report abuse
MainenCrisis said...
Sorry sam we are way over regulated and way too much the nanny state. Local regs had nothing to do with thisits all the fedand their lack of regulation to put lower income folks and minorities in homes.
July 1, 2010 at 9:45 AM Report abuse
NH said...
Mortgages do NOT automatically include tax payments. People who make a substantial downpayment often have the option to waive escrow. I get Native2Maine's point. When you factor Maine's absurdly high property taxes (in many areas) into your monthly payment, you come up with a really scary number, even if you're buying a relatively inexpensive home. No other state in the Northeast slams you with $4,000-$6,000 taxes on houses costing less than $300,000 - heck, in some cases less than $250,000 or even $225,000!
July 1, 2010 at 9:47 AM Report abuse
Ym9ybmN5bmlj said...
No other state in the Northeast slams you with $4,000-$6,000 taxes on houses costing less than $300,000 -------- That's not entirely true. Check Long Island, NY, my friend.
July 1, 2010 at 9:57 AM Report abuse
TheSaint said...
SteveCScharf said... None, banks don't foreclose on property because of unpaid taxes. When you have a mortgage, the bank pays the taxes and includes it in the mortgage bill.__________Incorrect. Only if taxes are escrowed with the loan does the bank pay it. Also a bank has an absolute right by contract to foreclose on a property if either insurance or taxes go unpaid past the due date. The borrower has the option of escrowing taxes and insurance with the bank or paying that directly. Remember also what the Bible says. The borrower is slave to the lender.
July 1, 2010 at 9:59 AM Report abuse
2B said...
Poor money management is the main reason people lose their homes to foreclosure. They buy their toys, Cable TV, Iphones, snowmobiles, boats, ATVs, etc, etc and when it is time to make their house payments, they cry there is no money. Wake Up!! A mortgage payment is due every month until it is paid off. Taxes are due every year. Budget, Budget, Budget. Forget the toys and extras if there isn't enough money to pay the bills, there isn't enough for all those extras.
July 1, 2010 at 10:05 AM Report abuse
Roxieow said...
ym9.... um Long Island is not the Northeast. And look at the properties there. No comparison.
July 1, 2010 at 10:06 AM Report abuse
Appraiser said...
As a Real Estate Appraiser, I see the housing market up close. I study, follow and even attempt to predict market trends. Over the past couple years, my business has increased in the area of Foreclosures. They are all over the State, and all over the financial spectrum. It's truly sad to see someone who bought a home, and later couldn't afford it, and I could go on and on about what this banks rules are, or what Fannie/Freddie did or didn't do. When it comes down to it though, most of the time, it comes down to someone buying a home that they just couldn't afford. There are exceptions; unexpected medical bills, company closed, etc, but most of the cases I see involve a borrower trying to get as much home as possible (adjustable rate to boot!). Dave Ramsey has got it right, your house payment should be no more than 1/4 of your take home, or a 15 year fixed-rate note.
July 1, 2010 at 10:11 AM Report abuse
enuf-is-enuf said...
The taxes DO NOT have to be excrowed into the loan in order for the lender to pay the taxes/insurance. If YOU have not paid your taxes/insurance, the Town office will send notification to your lender and its up to the bank if they want to pay it. If they decide to (due to value of property, consistancy of your payments etc.) then they will make you pay it back in your monthly payments.
July 1, 2010 at 10:13 AM Report abuse
Hagimallis said...
I would suggest that the people that have had or are having their homes foreclosed and people who have their home devauled start a class action lawsuit against the banks for their irresponsible lending pratices. This is why I wrote a book. Mike Mallis
July 1, 2010 at 10:41 AM Report abuse
Native2Maine said...
I realize that banks dont forclose on homes if they dont pay taxes. It doesnt matter if banks dont include mortgages but if your tax payment is as high as a mortgage payment that can cause issues. Many towns have reevaluated homes and taxes are through the roof
July 1, 2010 at 10:45 AM Report abuse
fairisfair said...
I have to agree with XPortlander; it is getting, and is going to get, much worse. Having many friends and associates who are small business owners, I ask often, how their businesses are doing. Across the board, the sentiment is...."much worse than last year", despite all the media HYPE as to how the economy is "slowly improving." At least in Maine, it is NOT even close to "getting better." Just because people are not begging on street corners [yet] doesn't mean they aren't visiting their local food pantries in ever greater numbers.Visit any food pantry, and they will tell you, they are seeing ever increasing demand, and often by first-time users. When unemployment benefits run out, there will be a drastic downturn. The state will not be able to spin the "recession" talk....it is obvious even now...this is, and has been, a depression, all along.
July 1, 2010 at 11:19 AM Report abuse
paperbackwri said...
Steve, not all mortgages have taxes built in like you suggest. I have friends who pay their taxes separately. And I have also read that generational homesteads that are located on the coast of Maine can't keep their homes because of high taxes imposed on coastal property.
July 1, 2010 at 11:24 AM Report abuse
Roger said...
Its different in Falmouth
July 1, 2010 at 11:24 AM Report abuse
weatherfreak said...
Even if the property taxes are not included in the mortgage payment, you would still not foreclose for unpaid taxes. If you have unpaid taxes the city can sieze the property and sell it. That is distictly different than foreclosure.
July 1, 2010 at 12:34 PM Report abuse
henryelm said...
and the numbers are??? And why aren't they in this piece?? I agree it will get worse and it is likely that unemployment is the greatest cause. Watch what happens when unemployment benefits end!!! A new trickle down economics is on it's way!!!
July 1, 2010 at 12:50 PM Report abuse
98thret said...
Maybe Barry's summer of recovery tour will come to town.
July 1, 2010 at 12:58 PM Report abuse
notspot said...
"When you have a mortgage, the bank pays the taxes and includes it in the mortgage bill." Errrrrr, not really, Steve-o...If the bank requires you to escrow it will pay your taxes...But if you are not paying your mortgage how do you think the mortagge company will pay the taxes? And...Have you heard of a tax lien?
July 1, 2010 at 1:01 PM Report abuse
Mahogany said...
"Dave Ramsey has got it right, your house payment should be no more than 1/4 of your take home, or a 15 year fixed-rate note."..........Who will be buying the houses in this state then? 1/4 of your income AND a 15 year loan? Very few Mainers could afford those variables. And don't say "then they shouldn't own a home". That's not the answer. 30 year mortgages have been the norm for a very long time, and is not to blame for the issues people are experiencing right now. In fact, it's hard enough for people to find rent that is 1/4 of their income.
July 1, 2010 at 1:06 PM Report abuse
ValdezGreene said...
Keep electing Republicans like George W. Bush and this is what happens. Let's not forget that it was George W. Bush and Republicans that nearly brought America into another Great Depression. Thankfully we have a brilliant, hard working and intelligent President and Democratic Congress working to undo the disasters that Republicans created. Republican: We're worthless.
July 1, 2010 at 1:06 PM Report abuse
joe said...
Lets see lwatch, CT average home price 390K, Mass avg 269K, Maine avg is 157K. Where did you price your real estate, Florida?
July 1, 2010 at 1:20 PM Report abuse
null said...
MainenCrisis, Maine does have a sweeping set of regulations, implemented last year, that slow the foreclosure process and force banks to consider modifying the loan, accepting a short sale, taking back the keys, etc. These regulations are helping people who are in foreclosure to pursue options.
July 1, 2010 at 1:26 PM Report abuse
atvclub said...
STOP WHINNING! welfare gimmi-girls dont want to hear the non stop whinning about foreclosures,taxes,unemployment....just keep the checks coming
July 1, 2010 at 1:39 PM Report abuse
russellofnj said...
I am all for the five hundred year mortgage this way it will cost me aroung $100.00 a month. I will most likely die before then and the bank can keep the house and rent it or sell it to someone else for a hundred more years just put in new windows...
July 1, 2010 at 1:41 PM Report abuse
gowens said...
'No other state in the Northeast slams you with $4,000-$6,000 taxes on houses costing less than $300,000'-------------------check NH
July 1, 2010 at 2:31 PM Report abuse
s-doodle said...
THe banks do play a part in this but more so the mortgage broker industry. They make money only if the loan closes. The broker does not care if someone can make their mortgage payment, they get their commission, end of story. unpaid taxed is not the cause of foreclosures, tax liens or the mortgage co will pay to make sure they can eventually foreclose when the borrower cant pay their mortgage.
July 1, 2010 at 2:43 PM Report abuse
wingnut said...
Hope and change! Fundamental transformation of America! How's that working out for everyone????
July 1, 2010 at 3:34 PM Report abuse
notspot said...
Well, wingnut...I'm better off now than 2 years ago. Thanks for asking!
July 1, 2010 at 3:36 PM Report abuse
ValdezGreene said...
“Mommy, why do the republicans want Americans to lose their jobs?” “Well Dear, since the days of Joe McCarthy, through Nixon, and right on up to George Bush II, republicans have a tradition of punishing people who the republicans think are against them. So today, after the 2008 election, for the republicans that means all Americans.” “See, the republicans are desperately hoping for a long and painful economic collapse. The republicans are worried that if there is an improvement in the economy, then Americans will figure out there is someone who can lead the country better than the republicans can. And because the republicans cannot lead the country right now, they are trying hard to gum it up, and make it fall apart.” “But don’t worry dear. Americans are strong, and together, Americans are stronger than the republicans who worked to wreck the economy, and prevent it from getting fixed. America has faced worse problems than the republicans, and conquered them every time.”
July 1, 2010 at 4:02 PM Report abuse
ValdezGreene said...
Republicans out of power can't tolerate feeling helpless and self-hating for very long. It's too painful, too demoralizing and too frightening. They have to find an antidote. They have to make sense of it all in a way that restores their sense of meaning, their feeling of agency, their self-esteem, and their belief in the possibility of redemption. They have to. They have no choice. That's just the way the mind works. The paranoid strategy is to generate a narrative that finally "explains it all." A narrative -- a set of beliefs about the way the world is and is supposed to be -- helps make sense of chaos. It reduces guilt and self-blame by projecting it onto someone else. And it restores a sense of agency by offering up an enemy to fight. Finally, it offers hope that if "they" -- the enemy, the conspirators -- can be avoided or destroyed, the paranoid person's core feelings of helplessness and devaluation will go away. Republican: Ignorant. Angry. Paranoid.
July 1, 2010 at 4:03 PM Report abuse
slntmjrty said...
Well valdez ,from your responses sounds like you must be a republican,ignorant,angry,paranoid
July 1, 2010 at 4:25 PM Report abuse
MSH said...
hglgyggcf's wit is devastating.....isn't it...?
July 1, 2010 at 4:39 PM Report abuse
ValdezGreene said...
Republicans TRASHED U.S. Economy! We got trillions of dollars in debt BECAUSE of the deregulation and lack of oversight during Republican periods of control. The crash happened before Obama took office. The Democrats had only 50% of Congress, no "Control" like you guys keep lying. They were allowed to do absolutely nothing. This is pure Neocon chaos at work - and it's inevitable conclusion - huge unsustainable boom, followed by massive crash and punishing Recession. Just like always!!!! The Great Depression happened after two Republican terms.
July 1, 2010 at 6:02 PM Report abuse
ValdezGreene said...
REPUBLICANS TRASHED U.S. ECONOMY: We got trillions of dollars in debt BECAUSE of the deregulation and lack of oversight during Republican periods of control. The crash happened before Obama took office. The Democrats had only 50% of Congress, no "Control" like you guys keep lying. They were allowed to do absolutely nothing. This is pure Neocon chaos at work - and it's inevitable conclusion - huge unsustainable boom, followed by massive crash and punishing Recession. Just like always!!!! The Great Depression happened after two Republican terms.
July 1, 2010 at 6:06 PM Report abuse
MyVan said...
"To promote "affordable" housing, Bill Clinton had excused the two giant government-sponsored housing finance agencies, Fannie Mae and Freddie Mac, from normal banking rules, allowing them leverage ratios far in excess of the limits on ordinary lenders. Banks were forced to write risky mortgage loans, a large number of which were then folded into mortgage-backed securities that Fannie, Freddie and others sold internationally with triple-A ratings.
July 1, 2010 at 7:44 PM Report abuse
workingclass said...
Appraiser is right on this one. Republicans, Democrats, the Green Party, or the dinosaurs really don't have that much of an impact on whether you can pay your bills or not. If your job isn't a secure one, a 30 year loan commitment might not be for you. It's something that takes a great deal of planning and foresight. It's not for everyone. It's in no way, shape, or form a bank's job to make sure that you can pay your bills. They verify your income because they don't want to lose money, not because they're responsible for you. Like it or not, you're on your own.
July 1, 2010 at 7:45 PM Report abuse
MyVan said...
Democrats opposed the Federal Housing Enterprise Regulatory Reform Act of 2005, which would have established a single, independent regulatory body with jurisdiction over Fannie and Freddie – a move that the Government Accountability Office had recommended in a 2004 report. Current House Banking Committee chairman Rep. Barney Frank of Massachusetts opposed legislation to reorganize oversight in 2000 (when Clinton was still president), 2003 and 2004, saying of the 2000 legislation that concern about Fannie and Freddie was "overblown."
July 1, 2010 at 7:50 PM Report abuse
heyrube said...
conservatives wrong about the freddies--- Subprime lending offered high-cost loans to the weakest borrowers during the housing boom that lasted from 2001 to 2007. Subprime lending was at its height from 2004 to 2006. Federal Reserve Board data show that: More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions. Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year. Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that's being lambasted by conservative critics. But these loans, and those to low- and moderate-income families represent a small portion of overall lending. And at the height of the housing boom in 2005 and 2006, Republicans and their party's standard bearer, President Bush, didn't criticize any sort of lending, frequently boasting that they were presiding over the highest-ever rates of U.S. homeownership.
July 1, 2010 at 7:59 PM Report abuse
heyrube said...
Between 2004 and 2006, when subprime lending was exploding, Fannie and Freddie went from holding a high of 48 percent of the subprime loans that were sold into the secondary market to holding about 24 percent, according to data from Inside Mortgage Finance, a specialty publication. One reason is that Fannie and Freddie were subject to tougher standards than many of the unregulated players in the private sector who weakened lending standards, most of whom have gone bankrupt or are now in deep trouble. What's more, only commercial banks and thrifts must follow CRA rules. The investment banks don't, nor did the now-bankrupt non-bank lenders such as New Century Financial Corp. and Ameriquest that underwrote most of the subprime loans. . And mortgage brokers, who also weren't subject to federal regulation or the CRA, originated most of the subprime loans.
July 1, 2010 at 8:03 PM Report abuse
heyrube said...
anet Yellen, the president of the Federal Reserve Bank of San Francisco, debunked the notion that the push for affordable housing created today's problems. "Most of the loans made by depository institutions examined under the CRA have not been higher-priced loans," she said. "The CRA has increased the volume of responsible lending to low- and moderate-income households." he late Federal Reserve Governor Ed Gramlich wrote that only one-third of all CRA loans had interest rates high enough to be considered sub-prime and that to the pleasant surprise of commercial banks there were low default rates. Banks that participated in CRA lending had found, he wrote, "that this new lending is good business."
July 1, 2010 at 8:04 PM Report abuse
Patriotinme said...
Lets see the Democrats have controlled the executive branch for 18 months, the Legislative Branch for 3 1/2 years... Controlled all branches of Maine Government for eight years... it takes a mind thats plugged into MSNBC to somehow come to the conclusion that it's the Republican's fault... clearly Bush derangement syndrom... there is no cure, your blind and deaf to the truth...
July 1, 2010 at 8:56 PM Report abuse
TheSaint said...
George W Bush and Dick Cheney got us into both a financial and terrorists mess. Both should be brought to trial and executed in a public square as an example to other politicians. Anyone who supports people like Sarah Palin should be deported, even if they claim citizenship, or sent to rehabiltation camp until they can prove they can think normal. The above is the only way to clean up this mess Bush and Cheney brought us.
July 1, 2010 at 9:44 PM Report abuse
joe said...
I Love MSNBC
July 1, 2010 at 9:55 PM Report abuse
MyVan said...
Somebody has drank way too much Koolaid ! You would think after 18months,"Utopia" would be just around the corner......you've been had.
July 1, 2010 at 9:58 PM Report abuse
sandman21 said...
We are better off because we did not game the system like in other states. And yes real estat taxes are higher here and we do get less.
July 1, 2010 at 10:30 PM Report abuse
heyrube said...
why my van? how many years have we gotten screwed by the republicans? and your type want to keep hading the republicans the vaseline
July 1, 2010 at 10:30 PM Report abuse
sandman21 said...
Both parties were not looking out for us.
July 1, 2010 at 10:37 PM Report abuse