Monday, November 16, 2009
Singer/Pianist Diana Jean Krall, OC, OBC born November 16, 1964 Nanaimo, British Columbia, Canada; top album: "All for You: A Dedication to the Nat King Cole Trio (1996)," has toured with Tony Bennett, her latest album, "Quiet Nights," her latest album.
######## surrounding the article denotes it is a “press release”
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Sheldon Player Caught w/$700,000 Cash in Duffle Bag
by Christopher Menkin
It is amazing how this can happen again, using the same procedure and similar business model that sent Sheldon Player to jail for 13 years ago. Several banks wanted to know if brokers or leasing companies were on our mailing list on May 2, 2007 because they should have been forewarned about Equipment Acquisition Resource business.
An insider told Leasing News about news learned at the bankruptcy creditors' meeting: "Sheldon Player, while traveling from Chicago to Jackson Hole via Denver on 9/15/09 was found to have a duffle bag containing $700,000 in CASH. He claimed, when greeted by the federal authorities in Denver, that the cash was gambling winnings. The money was confiscated, but go figure, returned to Sheldon when he "supposedly" produced gambling receipts (which I'd assume he fabricated too).
"We were told that the serial numbers on nearly every piece of equipment are fakes and in some cases the serial tags were attached with double sided tape for easy switching for bank, leasing co, etc. inspection. The total value of all the equipment is believed to be $3-$5 million covering $140MM in lease transactions. The bankruptcy court will likely pursue the accountants, appraisers, etc., but as you suggested . . . a lot of lawyers will earn a lot of money and we duped creditors will take it in the shorts (I can only hope that Sheldon does too . . . in prison!). "
The latest developments involve ICON Capital suit of $21,599,653 of a master lease in default and the collateral of real estate taken, that ICON is trying to have not included in the bankruptcy, but as part of collateral of their master lease.
In the document file there is evidence of Sheldon Player's role in the negotiations and the real estate involved is part of an alleged Wyoming family exemption by player as the real estate in question "is owned not only by Mr. Player and his wife, Donna Malone, but also by Mr. Player's son Dale Player and Mrs. Malone's daughter Dana Malone." It appears ICON received limited guarantees on the property as only two of the four signed the guarantee.
There also is the question of why the additional collateral, as ICON states it learned of Mr. Sheldon's Greyhound Leasing arrest and was requiring it, although records show that a background check was not requested until after the December, 2007 Master Lease was in effect, meaning the additional collateral was not required as part of the original transaction, and therefore may be interpreted that it was part of the lease until ICON Capital learned about Sheldon Players past (for whatever legal technically it brings forth.)
It is interesting to note that an email dated January 9, 2008 in regarding property owned by Player and Malone and possibly others, in going over the collateral for additional real estate came up with this list (much of it was not included in the ICON Capital lease requirements, as it appears only Wyoming property was used ):
"20 acres in Horse Creek…Jackson Hole (Teton County)
Leasing News is in the process of interviewing smaller and regional banks on how they got involved with Equipment Acquisition Resources, some through brokers, lessors, lease packagers, and others through banks selling their leases:
"We were told by ****** that EAR was an exceptionally strong company and we relied heavily on audited financials from Von Lehman as well as invoices from Machine Tool Direct, Inc. and appraisals from Gonia Consulting. Unfortunately, we were one of the later banks that was not told about Sheldon Player's checkered past. Had we been told that EAR's de facto principal was a convicted felon for lease fraud, we never would have done the deal."
Leasing News has been seeking an interview with Heather Fritz, listed by the Better Business Bureau as head of Leasing Innovations, Inc. 261 N. Coast Highway 101, Solana Beach, California. The company was involved in the Bank of Dixon County, Ponca, Nebraska $321,596 lease and current suit against Equipment Acquisition Resources.
It may be those involved in the referral process or acting as the lessor or seller may have financial responsibilities to the creditors involved in the bankruptcy. In addition to assignment guarantees, representations and warranties, there are precedents of those such involved having financial responsibility.
It is interesting that Leasing News could not find Leasing Innovations listed holding a California Finance Lenders License, required in the state, particularly since the company web site states, "LII's Investment Program can help individual Investors as well as banking institutions achieve their investment goals. LII's Investment Program allows an Investor to purchase a stream of monthly, annual, semi-annual, or quarterly payments after personally reviewing the credit information on a particular Entity."
A telephone call has not been returned to date. Leasing News looks forward to receiving any statement or comments from Leasing Innovations.
Several main news media, including Bloomberg, recently contacted Leasing News after the latest story appeared as they could not locate the original Greyhound indictment or story. It is provided here and confirmed in an interview with Sheldon Player also that appeared in Leasing News May 2, 2007.
1989 Greyhound Case (84 pages):
Sheldon Player 1986 Probation Case:
Icon response regarding real estate collateral (exhibits not attached):
Excel Leasing CEO pleads guilty $50MM Ponzi Scheme
Bennie Lee Judah taken into custody
On April 21, 2009 the SEC froze the assets of Excel Leasing, Lubbock Texas and took over the operation, formally charging the founder of the company Benny Lee Judah for defrauding investors. The technique was very similar to the operation of to HL Leasing, Fresno, California, operated by John Otto and his family. In this instance, the amount was much smaller as Judah was accused of selling only $50 million in unregistered securities to 240 investors between January 2006 and March 2009 and misusing the proceeds. In reality, it was a Ponzi scheme. He promised investors 10% on their investment in Excel Lease Fund, Inc.
He admitted to losing $50,161,707.
KCBD.COM (Channel 11) reporter Ann Wyatt Little wrote, "There are in excess of 250 victims nearly 300," says Federal Prosecutor Dick Baker who adds that many will forever be impacted by Judah's greed. "This is a substantial Ponzi scheme that involves $50 million. Based on my experience with Ponzi schemes the victims generally do not come out whole," he added.
It was not the first time. In 2001, he was ordered to pay a $50,000 civil penalty following allegations he and his company, Excel Leasing, sold $32 million in unregistered securities to investors nationwide between 1987 and 2000.
According to court records, at the time of the latest arrest he was not a registered securities broker.
Leasing brokers told Leasing News that they did sell him leases, and he paid a good commission and was easy to work with.
In pleading guilty, Judah got the maximum sentences, plus will pay a $500,000 fine and serve up to 25 years in prison; 20 years for money laundering and five years on the other charge. KCBD.com reports he "… agreed to pay more than $48 million in restitution as part of the plea negotiation. Receivers are working to find the missing money and track down all of his assets, but no one knows for sure what will be left after all is said and done."
$40 Million Fraud/Leasing Founder Assets Frozen
In Defense of Benny Judah/Excel Leasing
Letter to Editor: re Benny Judah
You Won't Believe Marlin's New Approval Form
What makes the Marlin Leasing, Mount Laurel, New Jersey new approval form quite different appears in the second paragraph, after the "Terms of Approval," third line:
"(ii) there being no adverse change in Marlin's ability to access the capital markets on acceptable terms,"
Marlin New Approval Form:
What's Happening at McCue-NetSol?
by Christopher Menkin
NetSol Technologies, Inc., Calabasas, California, reports a $264,000
GAAP loss for its first quarter, ending September 30, 2009. June 30, 2009. Full year GAAP net loss applicable to common shareholders of $8.2 million. Full year EBITDA loss of $2.5 million, or EBITDA loss of $0.09 per diluted share, versus EBITDA of $9.1 million, or $0.35 per diluted share, in the year ago period. NetSol reported EBITDA of $1.2 million for the first quarter of fiscal year 2010.
NetSol, a U.S. corporation provides global business services, is originally based out of Pakistan with many Pakistan officers.
Najeeb Ghauri, chairman and chief executive officer, said, "Overall, our revenue and profitability gains reflect our improved execution and the greater leverage we are achieving from our streamlined global operating model."
Reportedly making in roads in Asia, especially China, the United States operation has changed. For instance, after appointing Mitch Van Wye, COO of North America, and moving September 1, 2008 from its 9,000 square foot office in Burlingame, California, to a 10-year lease for the 23,908-square-foot 15th floor of the 16-story building at 2000 Powell St. in the Watergate Office Towers, Van Wye was let go a year later.
The operation then became under communications from Calabasas, according to a NetSol spokesperson, with appointment of Imran Haider, Senior Vice President of NetSol Global Sales, to lead the North American operations by the middle of November.
Also gone are SVP Development Doug Jones, LeasePak architect, VP Sales Todd Brinkmeier, VP Marketing me (champion and protector of the LeasePak brand), branding-marketing genius Andrew Lea (Leasing News Advisor) and then founder John McCue who sold the company for $8.5 million (50% cash with 50% stock) was on the board, then off the board of directors. Reportedly there is a bare minimum crew working out of the Emeryville office.
Insiders in the software business have told Leasing News NetSol has been trying to balance leasing versus other industries and general IT services in North America as well as balance the global Development Processes to lower costs, as the bay area is a very expensive base of operations. Several believe Mitch Van Wye was an interim step to diversify into other services and also to blend on shore and off shore development. Leasepak, the main produce of McCue before it became NetSol, has not been "emphasized."
Over this time period Over NetSol appears to be been cutting back the on shore component and augmenting it with more offshore. The difficult economy as well as the sluggish software expenditures throughout the Leasing and Finance industry have probably spurred aggressive steps in cost cutting. Perhaps the removal of Mitch Van Wye was part of a cost cutting measure and a continuing emphasis of moving more administration off shore.
Mr. McCue was not available for a comment today, basically saying he was retired.
In an interview with John McCue when he told Leasing News his "...vision in combining with NetSol was to have a global platform--- (actually integrating 3 regional products together). As we were the only company to actually have live leasing customers around the globe....and then benefit from the lower cost of production with off shore development."
One of the observations has been Oracle entering the finance and leasing market, originally just with the large, major institutions, but working their way in the other aspects. Their competitors say they now how to sell, cut costs to get a customer, but they don't deliver and support. It does appear with the recent acquisitions and development of software that it is in the long term profitable venture for Oracle to try to go into these specific verticals.
Once a recovery begins, there is going to be a voracious appetite for financing of capital equipment and probably some creative new packaging an delivery mechanisms (of the leasing service). Whoever is there to support that should be well ahead of the game and it will completely reshuffle the positioning of the service providers all over again.
"We are very optimistic of NetSol's short-term and long-term outlook as we see strong growth in Asia Pacific as well as the South East Asian emerging markets, while we envision unlimited scope for our niche solutions and services in the Americas from 2010 onwards," Ghauri said.
"We are noticing very positive trends of clients interested in acquiring our solutions and services as our turnaround began in the fiscal fourth quarter of 2009. With our new business pipeline for fiscal 2010 continuing to expand, with particular strength in our China, Asia Pacific and Kingdom of Saudi Arabia operations, we are creating new global opportunities as customers in those regions look for asset finance and lending software solutions to meet the various needs of their other international and local operations."
Full NetSol Press Release:
Classified Ads---Help Wanted
EverBank (Tygris/NetBank) reports 197% gain in earnings
Jacksonville, Florida -The merger of Tygris Commercial Finance, with a promise of a $65 million cash infusion, follows EverBank's purchase of NetBank Businesses in May 2007. NetBank Leasing was purchased from the OTS by Resource America's LEAF Corporation. EverBank® Financial Corp recently announced third-quarter net income of $15.7 million, a 197% increase from $5.3 million in the third quarter of 2008 and a 37% increase over the $11.5 million recorded in the second quarter of 2009. Earnings benefitted from strong mortgage banking results and attractive mortgage asset portfolio returns. Assets grew to $7.7 billion and deposits grew to $6.1 billion, representing 18% and 36% increases, respectively.
"Our third-quarter results reflect the full impact of our 2008-2009 capital deployment initiative while further demonstrating the benefit of our diversified business model," said Rob Clements, Chairman and CEO of EverBank Financial Corp.
"We look forward to continued growth as a result of our impending Tygris acquisition and the opportunity to deploy $535 million in capital towards lending and deposit expansion and additional acquisitions." Last week, EverBank announced it had reached a definitive agreement to acquire Tygris Commercial Finance Group, Inc., a stock-for-stock transaction that will increase EverBank's capital base by approximately $470 million, and is expected to have a positive impact on earnings.
"EverBank's capital position will be significantly enhanced upon consummation of the acquisition, resulting in expected Tier 1 (core) capital and risk based capital ratios of approximately 11% and 19%, respectively. The acquisition agreement also includes a $65 million pre-acquisition cash investment by Tygris into EverBank designed to provide EverBank with growth capital prior to the consummation of EverBank's acquisition of Tygris."
Look for EverBank to be more in the Leasing News.
Bank Beat---$986.5 million cost to FDIC
The FDIC board approved the plan to charge a three year fee to member banks, adding an estimated $45 billion to the FDIC's deposit insurance fund, which has fallen below mandated levels. The prepayments mark the second unscheduled assessment issued to banks this year by the FDIC. Banks paid a "special one-time assessment" in September. Last Friday is a good example why as three banks failed and the estimated cost to the FDIC is $986.5 million.
Also remember, all original investors, stock holders in the bank, lose everything, but depositors are insured to a certain level and assets/liabilities are born both by the FDIC and the purchasers of the bank.
Pacific Coast National Bank, San Clemente, California, founded May 16, 2005, with two branches and 28 full time employees was closed with Sunwest Bank, Tustin, California, to assume all of the deposits. They became the 123rd bank to fail this year, fifteenth in California.
In 2008, the bank was named "Business of the Year" by the Encinitas Chamber of Commerce.
As of August 31, 2009, Pacific Coast National Bank had total assets of $134.4 million and total deposits of approximately $130.9 million. June 30, 2009 Tier 1 risk-based capital ratio 3.73%. Net equity had dropped from $11.4 million June 30, 2008 to $4.7 million June 30, 2009, with net income in the same time period going from a loss of $1.1 million to $4.5 million with a charge off of $2.1 million.
January 6, 2009, Pacific Coast National Bank received $4,120,000 from the U.S. Treasury through the sale of 4,120 shares of the Company's newly authorized Fixed Rate Cumulative Perpetual Preferred Stock, Series A, as part of the federal government's TARP Capital Purchase Program.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $27.4 million.
The 23 branches of Orion Bank, Naples, Florida, are now open as IBERIABANK, Lafayette, Louisiana, who also assumed all the deposits.
IBERIABANK Corporation is the second largest bank holding company headquartered in Louisiana with 60 branches before the purchase of Orion Bank and Century Bank, Federal Savings Bank, Sarasota, Florida, now operating 96 branches with the two purchases.
Orion was the 11th bank to fail in Florida this year. Founded in February 28, 1977, the bank had 280 full time employees. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $615 million.
As of October 31, 2009, Orion Bank had total assets of $2.7 billion and total deposits of approximately $2.1 billion. Net equity had dropped only $8 million, going from $159.3 in June 30, 2008 to $151.3 June 30, 2009, but in the same period net income had gone from $8.3 million to a loss of $7.7 million, with $22.4 million charge off with a Tier 1 risk-based capital ratio 8.20% with a real problem of non-current loans going from $108.9 million June 30, 2008 to $216.2 million.
Part of the charge offs were attributed to Neil Mohammad Husani, who the HeraldTribune.com described as "the notorious Southwest Florida real estate flipper who has been indicted for loan fraud." According to the report, the regulators had been complaining about the lending practices of the bank.
The FDIC and IBERIABANK entered into a loss-share transaction on approximately $1.9 billion of Orion Bank's assets.
Century Bank, Federal Savings Bank, Sarasota, Florida, founded January 23, 1985 with 11 branches and 133 full time employees is now IBERIABANK, Lafayette, Louisiana, who assumed all the deposits.
As of October 31, 2009, Century Bank, FSB had total assets of $728 million and total deposits of approximately $631 million. The FDIC accepted a 1.5 percent discount on the deposits of the failed bank from IBERIABANK. Tier 1 risk-based capital ratio 2.89% June 30, 2009. Bank equity had dropped from $49.5 million June 30, 2008 to $13.2 million June 30, 2009 with net income going from a loss of $12.1 million in the same time period to $33.54 million, including a $23.1 million charge off.
The Pacific.bizjournal.com noted the bank had been under pressure from regulator: "Regulators said Century Bank in Sarasota made too many risky loans without having adequate policies in place to manage the risks presented by those loans and without setting aside enough reserves to cover loan losses. The bank relied too heavily on shorter-term certificates of deposits and brokered deposits and let its capital levels fall too low, OTS said. OTS also charged Century with violations of the Truth in Lending Act and National Flood Insurance Act."
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $344 million.
List of Bank Failures This year:
Previous Bank Beat columns:
by Mr. Terry Winders, CLP
Documentation – Folder Organization
I function as a procedure auditor for leasing companies that want to know how there back office operation stacks up and can it be improved? Sometimes the back office customer files scare me to death. One of the most common back office problems is lack of organized customer files. They contain many documents and it is imperative that they are separated into the proper sections and filed in a secure location. A messy customer or document file is a recipe for disaster.
The first question is how to organize the files and what need is there to "dig" into them over the life of the lease. The more people that have daily access to the files the more important that they be very organized internally.
I would start by presenting a warning that the legal agreements rule what happens, not your bookkeeping system! Make sure that what you book is exactly what the lease agreement calls for and if you purchase packaged business then make doubly sure grace periods, late charges, end of the lease options are placed in the accounting package correctly. Also if a request for early termination occurs make sure you reread the lease agreement and follow the terms presented there. Leases are not loans and are non-cancelable, a legal requirement you cannot ignore it to the determent of your agreement. If you do not follow the terms of your agreement then expect challenges on your portfolio, for both legal and tax, during audits and defaults.
A file should be created to contain all legal documents and stored in fire proof safe or at a secure off sight location. Because you need to follow the terms of the lease and you may want to refer to the lease agreements, plus other schedules, during the term there are many ways to accomplish it without tearing into the legal file. Make a copy and place in the customers file, or scan it into the computer, or create a lease summary sheet with all the important data (sometimes called a transaction summary) and place into the customer folder.
Some companies separate the credit file from the legal file but I like to have a customer file and a separate legal file. I like to separate the customer file into six sections with bendable tabs so each document can be secure in the folder. On many occasions I have had to go through a mountain of documents to find what I was looking for and noticed that because it had happened so many times that the papers were bent and lost. A strong six section folder that can stand the test of time is not cheap but a necessary tool.
The six section headings are: 1) Transaction summary including authority to lease, 2) Pricing and proposals, 3) Credit application, credit reports, and financials 4) insurance 5) Correspondence 6) Copy of lease agreements legal files. This list of subjects will change based on the type of leasing activities pursued however by creating separate sections you limit the number of documents you need to sift through to file the answer to your question. You can organize them anyway you want but based on your operation the more you separate the less time you lose finding something. Perhaps you need an eight or ten section folder.
Each lease should have its own customer folder or at least a separate section but I think only one legal folder is required. Occasionally a lessee has a lot of transactions, or a very large equipment list requiring inspections and reviews. This may require a separate equipment section to contain filings, vendor invoices, delivery documents and purchase orders. Remember complete descriptions and use an equipment use and description form and place it in this section.
A customer folder is one of the most important files in a leasing company and needs, however organized, to be capable of having many people dig through it and find answers to questions quickly without destroying the integrity of the file. I have seen lots of wasted hours as someone frets over a document they cannot find because it was lost or misfiled. The stronger the file the cheaper it is to run a back office.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at firstname.lastname@example.org or 502-327-8666.
He invites your questions and queries.
Previous #102 Columns:
(This ad is a "trade" for the writing of this column. Opinions contained in the column are those of Mr. Terry Winders, CLP)
Leasing News Top Stories-November 9-13
Here are the top ten stories opened by readers:
(1) Dash on his way Home
(2) Marlin Business Bank
(3) Loan Officers Say Q3 Credit Standards Tightened
(4) Approaching Banks with Leasing Programs
(5) Coston appointed in IFC Credit Bankruptcy
(6) ZRG Partners Leasing Employment Index
(7) Leasing 102 by Mr. Terry Winders, CLP
(8) New Development in EAR Law Suits
(9) Sales makes it Happen---by Christopher Menkin
(10) Bank Beat--- Five Failures Last Week
Aurora, Colorado -- Adopt-a-Pet
"Hi, I'm Cosmo. I'm a beautiful little boy who just loves to cuddle. I'm so happy to see my foster family every time I wake up. I'm learning how to play with my big sister. She is teaching me a lot. I love to go on walks and I'm really good on the leash!"
New Hope Cattle Dog Rescue of Colorado
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
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Global Franchise Market Anticipates Growth in 2010
World Franchise Leaders Gather in Brazil for World Franchise Council Meeting
WASHINGTON, —Delegates attending the World Franchise Council meeting in Bahia, Brazil recently reported the global franchising market was in strong health and anticipated growth in 2010, the International Franchise Association said today.
The WFC is comprised of franchise organizations from 41 countries each representing the franchising sector in their respective countries and represents 30,500 brands with over 2.5 million outlets. In the United States, franchising creates 21 million jobs at 900,000 locations nationwide and contributes $2.3 trillion in economic output.
"The franchising model is growing strongly in almost all regions of the globe, including the developing economies of central Asia, Eastern Europe, and South America," said IFA President & CEO Matthew Shay, who represented the United States at the meeting. "Leaders attending the meeting were optimistic that franchise companies would help lead the way to a global economic recovery, creating jobs and economic output in countries around the world."
Shay said that many member countries reported resilient franchise revenue and profitability in 2009, despite the global financial crisis. While some markets did experience some contraction, the majority of countries in Europe, Asia and the Americas reported better than expected results, and strong optimism for improved trading in 2010.
For example, Brazil, expects to close 2009 with a 14.5 percent increase in national franchising sales turnover – from $32.3 billion at the end of 2008 to $37.1 billion at the end of 2009. Brazil expects franchisee numbers to grow 6 percent by the close of the year, from 72,000 at the end of last year, to 76,000 at the end of 2009.
Australia also reported strong franchise business growth, with the number of systems in operation growing more than 10 percent from October 2008 to October 2009 (according to figures compiled by franchise trading and information website www.franchisebusiness.com.au) as well as resilient profitability in most market segments.
Shay reported that the U.S. franchise industry was projected to see modest declines in 2009 due to the credit crisis in the country. Despite the lack of access to credit, however, U.S. franchise businesses are expected to continue outpacing other U.S. business sectors in terms of job, unit and output growth. Preliminary predictions for 2010 expect the franchise industry to regain its growth trend. The U.S. has the largest franchise industry accounting for 20 million jobs and contributing $2.3 trillion to the annual U.S. economy.
During the meeting held Nov. 2-4, delegates also continued work on a new strategic plan for the WFC to outline how the organization will play a more proactive role in the development of franchising in 2010 and beyond, especially in assisting developing nations grow their franchise industries.
IFA will host the next meeting of the WFC during its 50th Annual Convention in San Antonio, Texas, Feb. 4-8, 2009. For more information and to register for the convention, click here.
About The International Franchise Association
#### Press Release #########################
### Press Release ##########################
October Foreclosure Activity Down 3 Percent From Previous Month, Up 19 Percent From October 2008
IRVINE, Calif. – RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its October 2009 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, scheduled foreclosure auctions and bank repossessions — were reported on 332,292 U.S. properties during the month, a decrease of 3 percent from the previous month but still up nearly 19 percent from October 2008. The report also shows one in every 385 U.S. housing units received a foreclosure filing in October.
"Three consecutive monthly declines is unprecedented for our report, and on first blush an indication that the foreclosure tide may be turning," said James J. Saccacio, chief executive officer of RealtyTrac. "However, the fundamental forces driving foreclosure activity in this housing downturn — high-risk mortgages, negative equity, and unemployment — continue to loom over any nascent recovery. And despite all the efforts and resources directed at helping homeowners avoid foreclosure, we continue to see foreclosure activity levels that are substantially higher than a year ago in most states."
Nevada, California, Florida post top state foreclosure rates
Despite a 26 percent decrease in foreclosure activity from the previous month, Nevada continued to document the nation's highest state foreclosure rate — one in every 80 housing units received a foreclosure filing in October. A total of 13,842 Nevada properties received a foreclosure filing during the month, a 4 percent decrease from October 2008 and the first ever year-over-year decrease in Nevada since RealtyTrac began tabulating the year-over-year change in January 2006. Nevada default notices were down 10 percent from October 2008, and scheduled foreclosure auctions were down 6 percent from October 2008, while bank repossessions were up 8 percent from October 2008. A new foreclosure mediation program implemented by state law (AB 149) in July may be slowing the inflow of distressed properties into the foreclosure pipeline.
With one in every 156 housing units receiving a foreclosure filing in October, California posted the nation's second highest state foreclosure rate for the second month in a row. A total of 85,420 California properties received a foreclosure filing during the month, a decrease of 1 percent from the previous month but still nearly 50 percent above the total reported in October 2008. The state's default notices and scheduled foreclosure auctions were up 120 percent and 73 percent respectively from October 2008, when California foreclosure activity was in the midst of a three-month trough after a law (SB 1137) requiring lenders to give distressed homeowners extra notification before initiating foreclosure took effect in September 2008.
Florida posted the third highest state foreclosure rate, with one in every 168 housing units receiving a foreclosure filing in October. A total of 51,911 Florida properties received a foreclosure filing during the month, a nearly 6 percent decrease from the previous month and a decrease of 4 percent from October 2008. It was the first year-over-year decrease in overall Florida foreclosure activity since July 2006.
Other states with foreclosure rates ranking among the nation's 10 highest were Arizona, Idaho, Illinois, Michigan, Georgia, Maryland and Utah.
Four states account for more than 50 percent of national total
Four states accounted for 52 percent of the nation's total foreclosure activity in October: California, Florida, Illinois and Michigan.
Illinois posted the third highest state total after California and Florida, with 19,946 properties receiving a foreclosure filing in October — a 56 percent spike from the previous month and the highest monthly total for Illinois since RealtyTrac began issuing its report in January 2005. The state's foreclosure rate jumped from No. 11 in September to No. 6 in October, and it was the only state with a foreclosure rate in the top 10 to post a monthly increase in foreclosure activity. A recent state law (SB 2513) that gives distressed homeowners an extra grace period to seek counseling to help avoid foreclosure may have created some pent-up foreclosure activity in the state. After the law went into effect in April, Illinois foreclosure activity decreased for three straight months before beginning to climb again.
Michigan registered the fourth highest state foreclosure activity total despite a nearly 2 percent decrease from the previous month. A total of 16,468 Michigan properties received a foreclosure filing in October, an increase of nearly 45 percent from October 2008.
Other states with totals among the 10 highest in the country were Nevada (13,842), Arizona (13,345), Georgia (12,468), Texas (11,798), Ohio (11,646) and New Jersey (7,435).
Three states account for all top 10 metro foreclosure rates
Despite a 27 percent decrease in foreclosure activity from the previous month, Las Vegas continued to document the nation's highest foreclosure rate among metropolitan areas with a population of at least 200,000. One in every 68 Las Vegas housing units received a foreclosure filing in October — more than five times the national average.
Seven of the top 10 metro foreclosure rates were in California, led by Vallejo-Fairfield at No. 2 and Modesto at No. 3, both with one in every 81 housing units receiving a foreclosure filing. Other California cities in the top 10 were Riverside-San Bernardino-Ontario at No. 4 (one in 83), Bakersfield at No. 6 (one in 97), Merced at No. 7 (one in 100), Stockton at No 8 (one in 116), and Sacramento-Arden-Arcade-Roseville at No. 10 (one in 130).
Metro areas in Florida accounted for the remaining two spots in the top 10: Cape Coral-Fort Myers at No. 5 (one in 92) and Orlando-Kissimmee at No. 9 (one in 117).
Full list of state by state at the end of the press release:
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Masters of Equipment Leasing Moving
Should Daley lease Chicago's Water System?
Bair calls U.S. bank bailout 'not a good thing'
FDIC Chairman Sheila Bair International Bankers Conf. remarks
TD Bank plans major move into Washington, DC area
KeyBank Offers $164 Million Bad-Debt Portfolio
Home-Purchase Index in U.S. Plunges to Lowest Level Since 2000
Jobless claims fall, but hiring gains seem far off
HP Pavilion Computers Crash, Class Claims
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Today’s Top Event in History
1920- The postage meter was officially set at Stamford, CT, by the Pitney-Bowes Postage Meter Company. Although the idea of metered mail originated in 1900, when the American Postage Meter Company was organized in Chicago, it was not until September 1, 1920, that the Post Office Department approved it. About $2 million was spent on research and development of the machine. Today they have a near monopoly on this device. You cannot purchase the meter, you must "rent" it.
This Day in American History
1620- Fifteen pilgrims lead by Captain Myles Standish, William Bradford, Stephen Hopkins and Edward Tiley discovered corn on the future site of Provincetown, MA. They named the place "Corn Hill." This vegetable would become a staple for the settlers. The Indians also taught them how to make pop corn, a very popular item even way back then.
Nick Ferguson: The Poet Has Found a Home
By Doug Collins
The poet has found himself
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
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