Economic News
Wachovia Will No Longer Postpone A Foreclosure
In an effort to stop sellers facing foreclosure from gaming their system, Wachovia has completely stopped allowing any postponement of a foreclosure or Trustee’s Sale. I have long felt that Wachovia was not simply a good lender to deal with for a short sale – truth be told – they were the very best.
I’m being told that this new policy isn’t going to be a “bad” thing. I don’t see it that way. To penalize everyone because of the bad actions of a few is seldom good (even if common).
Here is a copy of a response from Wachovia that was sent to me via the title company:
**IF THERE IS A FORCLOSURE SALE DATE SET – WE WILL NO LONGER POSTPONE THAT DATE FOR ANY REASON – if there is an active foreclosure Sale Date we MUST RECEIVE funds no later than 5 DAYS before that Sale Date, also if there is a SALE DATE set we must receive the full package 10 business DAYS prior to that sale date (and again, we will not postpone that date)**
FOR EXAMPLE:
If you are SUBMITTING A SHORT SALE PACKAGE on a property that has a SALE DATE SET FOR AUGUST 30th, the SHORT SALE APPROVAL WILL BE ISSUED with an expiration date of AUGUST 25th and we will NOT EXTEND the Short Sale approval or SALE DATE.
Sandra Villalpando
Short Sales Manager
Wachovia, REO
I’m hoping that this new policy from Wachovia is reversed. I do understand that some lenders say they will postpone one and then go right ahead and foreclose anyway. I’ve just always expected much better from Wachovia. And rightly so!
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Is the real estate industry endorsing Carson’s nomination to HUD?
(BUSINESS NEWS) Ben Carson’s initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?
Economic News
Job openings hit 14-year high, signaling economic improvement
The volume of job openings is improving, but not across all industries. The overall economy is improving, but not evenly across all career paths.
Job openings hit a high point
To understand the overall business climate, the U.S. Labor Department studies employment, today releasing data specific to job vacancies. According to the department’s Job Openings and Labor Turnover Survey (JOLT) for April, job openings rose to 5.38 million, the highest seen since December 2000, and a significant jump from March’s 5.11 million vacancies. Although a lagging indicator, it shows strength in the labor market.
The Labor Department reports that the number of hires in April fell to 5 million, which indicates a weak point in the strong report, and although the volume remains near recent highs, this indicates a talent gap and highlights the number of people who have left the labor market and given up on looking for a job.
Good news, bad news, depending on your profession
That said, another recent Department report notes that employers added 221,000 jobs in April and 280,000 in May, but the additions are not evenly spread across industries. Construction jobs rose in April, but dipped in professional and business services, hospitality, trade, and transportation utilities. In other words, white collar jobs are down, blue collar jobs are up, which is good or bad news depending on your profession.
Additionally, the volume of people quitting their jobs was 2.7 million in April compared to the seven-year high of 2.8 million in March. Economists follow this number as a metric for gauging employee confidence in finding their next job.
What’s next
If you’re in the market for a job, there are an increasing number of openings, so your chance of getting hired is improving, but there is a caveat – not all industries are enjoying improvement.
If you’re hiring talent, you’ll still get endless resumes, but there appears to be a growing talent gap for non-labor jobs, so you’re not alone in struggling to find the right candidate.
Economists suspect the jobs market will continue to improve as a whole, but this data does not pertain to every industry.
#JobOpenings
Economic News
Gas prices are down, so are gas taxes about to go up?
Do low gas prices mean higher gas taxes are on the way? Budgeting for 2015 just got a bit more complicated, if some politicians have their way.
Gas taxes and your bottom line
Many industries rely heavily on time in their vehicle, not just truck drivers and delivery trucks. Sales professionals hop in their vehicles throughout the day, as do many other types of professionals (service providers like plumbers, and so forth). For that reason, gas prices and taxes are a relevant line item that must be budgeted for 2015, but with politicians making the rounds to push for higher gas taxes, budgeting becomes more complicated.
Gas prices are down roughly 50 cents per gallon compared to a year ago, which some analysts say have contributed to more money in consumers’ pockets. Some believe that this will improve holiday sales, but others believe the timing is just right to increase federal taxes on gas. The current tax on gas is 18.40 cents per gallon, and on diesel are 24.40 cents per gallon.
Supporters and opponents are polar opposites
Supporters argue as follows: gas prices are low, so it won’t hurt to increase federal gas taxes, in fact, those funds must go toward improving our infrastructure, which in the long run, saves Americans money because smoother roads mean better gas mileage and less congestion.
Gas taxes have long been a polarizing concept, and despite lowered gas prices, the controversial nature of the taxes have not diminished.
While some are pushing for complete abolition of federal gas taxes, others, like former Pennsylvania Governor, Ed Rendell (D) tell CNBC, “Say that cost the average driver $130 a year. They would get a return on that investment” in safer roads and increased quality of life, he added.
The Washington Post‘s Chris Mooney points out that federal gas taxes have been “stuck” at 18 cents for over 20 years, last raised when gas was barely a dollar a gallon and that the tax must increase not only to improve the infrastructure, but to “green” our behavior, and help our nation find tax reform compromise.
Is a gas tax politically plausible?
Mooney writes, “So, this is not an argument that a gas tax raise is politically plausible — any more than a economically efficient tax on carbon would be. It’s merely a suggestion that — ignoring politics — it might be a pretty good idea.”
Rendell noted, “The World Economic Forum, 10 years ago, rated us the best infrastructure in the world,” adding that we “need to do something for our infrastructure, not in a one or two year period, but over a decade.”
Others would note that this rating has not crumbled in just a few years, that despite many bridges and roads in need of repair, our infrastructure is still superior to even the most civilized nations.
Regardless of the reasons, most believe that Congress won’t touch this issue with a ten-foot pole, especially leading up to another Presidential campaign season starting next year.
“I think it’s too toxic and continues to be too toxic,” Steve LaTourette (the former Republican congressman best known for his close friendship with his fellow Ohioan, Speaker John Boehner) tells The Atlantic. “I see no political will to get this done.”
Whether the time is fortuitous or not, and regardless of the positive side effects, many point to a fear of voters’ retaliation against any politician siding with a gas hike, so this matter going any further than the proposal stage is unlikely.
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Property Marbella
August 10, 2010 at 1:51 am
It’s time to put down the foot. Glad the someone starting do this.
Joe Loomer
August 10, 2010 at 6:22 am
Russell,
I wonder if there isn’t some wiggle room here – the phrase “IF there is a foreclosure sale date set….” leads me to believe their way out is to not set that date, but instead kick the can down the road and still give those who are actively seeking to avoid the foreclosure or consumate a short sale the time to do so.
Our area – never one to be flush with foreclosures or short sales – should be minimally impacted, and there are an admittedly small number of true short sale agents, so I’ll defer to your expertise on this. Just seem they left it a little open to me. Was the emphasis yours or did they actually put those statements in all caps?
Navy Chief, Navy Pride
Russell Shaw
August 10, 2010 at 1:20 pm
Joe,
The person who wrote the email put the letters in caps in caps – I changed nothing but some spelling errors. Plus, my transaction manager has spoken with the short sale manager here and it is confirmed – once a date is set, it is NOT going to be changed.
Joe Loomer
August 11, 2010 at 6:23 am
Thanks for clarifying Russell – amazing what people will actually send before applying the 24-hour rule….
Navy Chief, Navy Pride
Dan Connolly
August 10, 2010 at 1:57 pm
I just wonder how a bank can say that they won’t accept funds unless they come 5 days before the foreclosure sale. I thought that the borrower has the right to payoff the note or bring it current any time before foreclosure. Can they really refuse to accept a payoff 4 days before a foreclosure?
Melissa Zavala
August 11, 2010 at 10:32 pm
Russell: My local fast track representative told me that if the seller qualifies for HAFA, they will postpone the sale. Obviously, we do not have that in writing, but this is what she told me when she called me to drop the bomb just the other day.
Russell Shaw
August 12, 2010 at 1:26 am
Melissa,
All banks – if doing the HAFA program must allow, per the federal program guidelines – a minimum time frame of 120 days to sell the home (with the option of extending up to one year). So any bank on a HAFA sale would not foreclose during that time.
What has set Wachovia apart from other lenders has been their fast track process that requires no documentation other than a hardship interview and you simply had to have a fully executed contract about 5-7 days before the foreclosure date to be granted an extension. It is what made them the best in the industry. So while I can appreciate their benevolence was met with some sellers exploiting the program, it is still the pendulum swinging too far in solving the problem of abusers.
Craig
August 30, 2010 at 2:01 am
Russell,
My sister’s realtor advised her to take all of her money out of the stock market and put it into cds because of the Wachovia news…he says his “friend” at Wachovia said that this new policy will put 60,000 homes on a foreclosure fast track and it will have a great effect on the economy. Since her husband passed away 6 months ago, she just got all of his assets into her name and invested almost all of her money through Schwab. She is meeting with Schwab this coming Friday. Is there any advise you could offer? Thank you so much.