While you may have seen explosive fireworks on Wednesday night, there is not too much exploding in the distressed property arena (although there may be some brewing storms).
Here’s a recap of some of the interesting stuff that went on this past week in the distressed property arena:
Mortgage Forgiveness Law Set to Expire The Mortgage Forgiveness Debt Relief Act of 2007 is still set to expire at the end of the year. That being the case, it would be important for borrowers still considering short sale to get the ball rolling, since the transaction would need to close by the end of the year. This Miami Examiner article reviews the plan for the end of the year.
CitiGroup Saves According to this article, it is CitiGroup that actually saves the most money when opting for short sale versus foreclosure. We’ve got a fun one with Citi right now, and they are digging in their heels. So, I was surprised when I saw this article.
Principal Reduction Delays A government watchdog is criticizing FHFA for their delays in processing principal reductions. You do not need a crystal ball to know that the clock ticks very slowly, but it will be nice to hear that there are borrowers that are actually receiving those principal reductions.
There’s lots going on in the distressed property arena. And, if you are actively working with ‘distressed’ borrowers, it’s important to keep up with all of the changes in the industry. Sometimes that’s hard, which is why we’ve provided you with a weekly recap right here.