News digest: Teamed-up banks, foreclosure mix-up and "monster" discounts
The effort is intended to help SIVs that need to sell securities do so in an orderly manner. Bank and government officials are concerned that if these vehicles are forced to dump billions of dollars worth of debt in the coming weeks, it could cause a repeat of the crisis that rattled markets in August and sent the cost of mortgages and other loans soaring.
FORECLOSURES: The Atlanta Journal-Constitution reports that RealtyTrac, whose foreclosure reports are relied on across the country, showed an inaccurately high increase from June to July for Georgia. The newspaper found that the company's figure of 12,602 foreclosure actions in July counted more than 2,000 properties twice "and sometimes more":
There is little dispute that Georgia faces a foreclosure crisis, but the company's July report overstated the magnitude of the problem. After a preliminary investigation, the company said Friday that its data show foreclosure filings in July actually rose by 14 percent -- not by 75 percent.SALES: Lorraine Mirabella reported over the weekend (how did I miss this?) that Pulte Homes, hoping to attract buyers in a worsening market, is throwing a "monster" sale in local communities with incentives "that include selling at cost and guaranteeing the purchase of buyers' current dwellings."
"We figure this is an appropriate treat for homebuyers who may find market conditions a little spooky right now," wrote Melanie Hearsch, a spokeswoman in Pulte's corporate office in Bloomfield Hills, Mich., in an e-mail.