repogate: Is the real estate market awakening from its extended slumber? - 03/20/12 10:17 AM
The news is a source of information that is frequently mis-interpreted.  But in conversations with a few real estate agents around Indiana, it seems like everybody is busier.  Showings are up.  More offers are being made and accepted.  And I even heard one agent talking about how there might not be enough inventory for the recent increase in demand.
So what kind of headlines might we be reading in a few months?  If what we are seeing in Indiana is typical of much of the country, those headlines might be about the market rebounding from its lows, about increased sales and … (0 comments)

repogate: A Tale of Two Tweets - No wonder the news is confusing - 04/14/11 05:57 AM
This morning on Twitter I saw a tweet saying that foreclosures have decreased quite a bit over prior data.  But the tweet right next to it was about how defaults have increased.  Most of us in the industry are aware of trends and realize that there are several factors at work that make both of these seemingly-contradictory items true.
But depending on how each story is presented, it could be perceived as encouraging news or discouraging news for the real estate market.  So almost any news item about the state of real estate needs to be read carefully.  It might contain only … (5 comments)

repogate: 60 Minutes takes Repogate foreclosure fiasco mainstream - 04/04/11 03:49 AM
60 Minutes ran a story about the foreclosure fiasco and robo-signing scandal.  Most of us in the real estate business have been aware of some of these issues.  Several banks had foreclosure freezes last September.  Some tried to dismiss these issues as technical problems or paperwork glitches.
Anybody in the real estate industry should take a look at the 60 Minutes segment.  Since ths was aired by a major network, expect questions about this as you run into people.  High school students were hired to sign their name on piles of documents as Linda Green, supposedly vice president of several different … (6 comments)

repogate: Massachusetts court throws out two foreclosures where assignments were not recorded - 01/10/11 01:22 AM
The decision was unanimous, 6-0.  Assignments of these mortgages were not properly recorded.  Even though the homeowners were behind in their payments, the court said that the foreclosing lenders did not have the legal right to foreclose.  And the  foreclosure actions (the sale has already taken place) were voided.
DS News has featured this decision in its most recent issue, saying that it can have far-reaching implications because it was applied to an already completed foreclosure.
Here is a link to the DS News article about the Massachusetts Supreme Court decision.
While this decision only applies to Massachusetts, it will create … (47 comments)

repogate: Congress starts hearings on mortgage servicing issues - 11/19/10 02:18 AM
On Thursday, the House had hours of hearings on robo-signing, chain of title and other mortgage servicing issues.  Recordings of these hearings can be watched online.  No longer is it necessary to just settle for some media 30 second summary comment about what these hearings were about.  It is possible to go online to the CSPAN website and watch for yourself.
Here is the link to the House Financial Services Commitee Hearings on Issues related to Mortgage Servicing.
 
… (1 comments)

repogate: Banks - bring along the note if you want to foreclose in Kentucky - 10/26/10 04:50 AM
As we look for changes that might result from the Repogate foreclosure fiasco, there are actions being taken by courts might give some indication of the future.  Kenton County, Kentucky will start requiring that foreclosure filings be accompanied by a copy of the note, as well as recorded mortgage and assignments.
According to an article in DS News, these requirments will be effecitve with new filings starting November 15.
As courts around the country review their own procedures, it would not be surprising if requirments similar to those in Kenton County, Kentucky will be considered.
… (5 comments)

repogate: Fidelity's new policy on title insurance for bank-owned foreclosures - 10/26/10 04:03 AM
Fidelity National made a move that might help resolve title insurance issues related to bank-owned REO's, According to an article in DS News, Fidelity National will start requiring lenders to have an agreement where the lender will reimburse the title company for any losses and court costs related to flawed foreclosure procedures. 
Numerous bank-owned REO properties have been withdrawn from the market.  Some REO closings have been postponed. If other title insurance companies follow suit, this might allow REO properties to be returned to the market.  Several days ago, Fidelity and Bank of America came to an agreement for the bank … (7 comments)

repogate: Secret foreclosure freezes - 10/24/10 04:34 AM
I was talking to a friend about an REO closing that kept getting delayed.  Now the listing agent has received a letter that the closing is being postponed indefinitely while the bank evaluates their files.  They offered my friend's buyer a refund of earnest money or an extension for the time to close for an indefinite time period.  The bank that was selling the home was NOT one of the banks that has a widely publicized foreclosure freeze.
Around the beginning of October, there was a highly publicized news release where ONE title company would not be issuing title insurance on … (5 comments)

repogate: Could REO sales resume with this agreement as a pattern? - 10/19/10 01:51 AM
Fidelity National will write title insurance for Bank of America foreclosed properties.  Bank of America has agreed to be responsible for settlements and costs related to court actions. This news was reported in an article in DS News.
Perhaps this will be a pattern agreement that will allow REO sales by many lenders to resume.  In my market area there were 140 REO's withdrawn from the market during the first half of October.  This trend could certainly affect the supply and demand balance.  But even if some of these properties return to the market, the number of new foreclosure listings in … (2 comments)

repogate: So what are we or the press going to name this foreclosure fiasco? - 10/08/10 12:17 PM
Every scandal or crisis needs a name.  And as part of time-honored American tradition, that name should end in "gate" out of respect to the Watergate scandal of the early 1970's.  Watergate was so much more than a break-in at an office.  It extended to the cover-up, dirty tricks, and a string of related issues.
So to name this crisis it should be short and easy to remember.  In my part of the country foreclosures are often referred to as "repos" or "bank repos."  And the way the process works, banks often take possession of the property months before the actual … (5 comments)

repogate: Foreclosure Fiasco spreads - Bank of America extends freeze to 50 states - 10/08/10 08:37 AM
If you keep up with the news, Bank of America's announcent extending their foreclosure freeze to all 50 stateshas been spreading with people wondering what is next?  The "Repogate" foreclosure fiasco has taken several turns. Here are some observations as I have seen it.
I attended a Sheriff Sale yesterday and the sheriff remarked that 17 minutes was a record for the quickest sale since he has been sheriff.  The vast majority of properties were canceled from the sale. There are normally a certain percentage canceled, but this seemed to be an unusually high percentage.
Our area's listings include bank-owned properties, as … (7 comments)

repogate: Short Sales Have Just Become WAY More Attractive Than Foreclosures! - 10/06/10 11:08 PM
So let's get this straight.  Some banks have been accused of using fraudulent foreclosure documents in court.  Some have now frozen foreclosure actions.  Title companies are starting to question whether they can insure title. This situation is being heavily scrutinized by judges, title insurance companies and people who have been foreclosed.  The banks have an easy way out: the short sale.  Maybe they will have a new attitude very quickly.
Unless there is a way for a major entity to assume the risk and guarantee title, this "Repogate" crisis may be with us for a while. It is had to say where it might … (7 comments)

repogate: Banks Worst Nightmare - Federal Investigation of Repogate - 10/06/10 02:03 AM
Complaints about practices of the banks have not fallen on deaf ears.  Several members of Congress are calling for federal investigation of numerous questionable bank practices.  The California Democratic Congressional Delegation has assembled a 20 page PDF document outlining numerous irregularities and alleged abuse reported by California constituents.
These members of Congress have called on Attorney General Eric Holder, Federal Reserve Chairman Ben Bernanke and Comptroller John Dugan to launch an investigation of foreclosure practices to determine if federal laws or regulations have been violated.  More details about this call for a federal investigation can be found in an article on DS News.
As agents, it … (5 comments)

repogate: What states are affected by the RepGate foreclosure freezes? - 10/05/10 01:43 AM
There has been quite a bit of news over the last week about the RepoGate crisis.  There have been accounts that foreclosure actions by some lenders have been frozen in 23 states which are mostly judicial foreclosure states.  (In addition title companies are appearing to review their policies on writing title insurance for foreclosed properties from certain lenders.)
So what states are affected by this?  DS News has gone to several lenders and come up with a list of states.  Because there are some variations by different lenders, I will just provide a link to the DS News article.
This is … (2 comments)

repogate: If your niche is foreclosures or REO's, what is your Plan B? - 10/04/10 11:04 PM
When the dust settles on the Repogate crisis with the foreclosure processing irregularities, we will probably have an idea what its impact might end up being on the real estate market.  For now it is early to tell.  If other title companies take the lead from Old Republic and refuse to offer title insurance on a large number of foreclosed properties, the impact could be huge.
FORECLOSURE/REO NICHES
There are some agents who specialize in niches like finding foreclosures for buyers.  Some specialize in listing REO's.  There are others who have a niche of working with HUD Homes, VA Properties or … (4 comments)

repogate: TITLE INSURANCE STOPPED ON REO AND FORECLOSURE SALES - 10/04/10 12:04 PM
 
Anybody who is involved in the sale of foreclosures needs to understand what is written below here.  This "REPOGATE" has grown.  We are no longer just talking about a few thousand foreclosure actions being delayed.  With the possibility of title insurance NOT being available for some foreclosured properties, buyers, sellers and agents of REO properties could be affected.
The important question of the day is how widespread some of these practices were.  If foreclosures are part of your business, then you need to pay attention to this Repogate crisis as it develops in the coming days.  Thank you Richard Zaretsky … (3 comments)

repogate: How will title insurance companies respond to the Repogate Crisis? - 10/04/10 02:27 AM
Over the weekend Old Republic National Title Insurance has announced they will no longer issue title insurance for bank-owned properties for certain banks until some issues are resolved.  This REPOGATE crisis has the potential to spread as other title insurers evaluate their position.  There have been revelations of flawed paperwork by several banks.  In some cases, individuals who were responsible for reviewing the accuracy of documents were reported to have signed documents in foreclosure cases at a rate of about two documents per minute.
If your business involves listing or sale of REO's this could be extremely important news.  This could … (3 comments)

repogate: What will be the impact of RepoGate? Is it the tip of the iceberg? - 10/03/10 02:54 PM
During the last week three major lenders have announced that they are freezng numerous foreclosures in process in 23 states.  And one title company has said they will not issue title insurance on foreclosures from certain lenders with suspect processing methods.  Some bank-owned REO sales will be suspended while cases are being evaluated.  There is at least one person employed by a lender who is alleged to have signed forms as part of the foreclosure process at the rate which figures to about two forms per minute.
Will this spread to more lenders and title companies?  Will more lenders freeze foreclosures?  … (16 comments)