hamp: Report says loan modifications are experiencing large re-default numbers
- 07/05/10 07:50 AM
Fitch Ratings released a dismal report on the status of the government's Home Affordable Modification Program (HAMP). The report revealed what many of us have already feared and known, loans that were modified are re-defaulting. In what Fitch calls "conservative" estimates, the report states that within 12 months, 55 to 65 percent of the prime loans modified under HAMP guidelines will likely re-default. The numbers get staggeringly higher for modification on subprime and Alt-A loans with a re-default projection of 65 to 75 percent! The report also states, "Fitch continues to believe that, when properly done, modifications can benefit both homeowners … (1 comments)
hamp: California's Foreclosure Activity Drops Across the Board: Report
- 06/30/10 03:29 PM
DSNEWS.COMBY: CARRIE BAY Foreclosure activity in California is beginning to trend downward. The locally-based tracking firm ForeclosureRadar says its statistics dropped last month for every stage of the foreclosure process – with new defaults falling more than 17 percent. It’s the second straight month that the company has recorded across-the-board declines. Filings at each step of foreclosure – default, sale, repossession – also posted sharp drops from year-ago levels. While the numbers appear to paint a clear picture of improvement, ForeclosureRadar remains cautious in its analysis. “Given the staggering number of delinquent home loans, foreclosure activity should be rising not falling … (0 comments)
hamp: House of Representatives passes provision to stop "strategic default"
- 06/28/10 05:42 AM
On Thursday June 10, 2010, the Democratic controlled House of Representatives passed the Federal Housing Administration Reform Act of 2010 also known as H.R.5072. The bill mainly helps to replenish the funds FHA uses to insure mortgages against default. It accomplishes this by moving some of the upfront costs to spread them over the life of the mortgage and raising the premium cap by as much as 300%! FHA also estimates is will generate $300,000,000 a month in additional funds, but at a cost of $42 a month more to borrowers. The most intriguing part of the bill though came at … (5 comments)
hamp: Ever wondered why loan modifications don't work?
- 06/24/10 05:24 PM
When most people hear the phrase "loan modification" there are a multitude of images and emotions that flood the brain; skepticism, hope, desperation, lonely, gamble, fear and maybe even "yeah right"! Using a loan modification to avoid foreclosure has gotten a lot of bad press lately and maybe rightfully so. Look at the chart below:
The numbers just don't lie! But when I look at these numbers, I share the same serious questions that homeowners ask me all the time "Why don't they work?" and "What is the bank looking for? What is the secret formula?" So I went … (12 comments)
hamp: Denied for Federal Mortgage Aid, Homeowners Seek Alternatives
- 06/18/10 05:33 PM
By Stella M. HopkinsRISMEDIA, June 18, 2010--(MCT)--Allison Rinehart's best hope for saving her home isn't the massive federal effort to stem foreclosures.She's been denied, possibly in error, for that plan so she's banking on an alternative mortgage modification to keep her Charlotte townhouse."This is the only thing my daughter and I have," said Rinehart, who is 45. "I am a single parent, no child support, working as many jobs as I can take on."The taxpayer-funded Home Affordable Modification Program, or HAMP, is the centerpiece of the nation's foreclosure prevention effort. But it doesn't work for many people.For example, Bank of America … (2 comments)
hamp: California State Senate bill passes to help homeowners avoid foreclosure
- 06/10/10 04:21 AM
California State Senators Mark Leno and Tem Darrell Steinberg authored SB 1275 which will help prevent loan servicers from foreclosing on homeowners who have requested loan modifications until a decision has been made about the mod and the homeowner has been notified. As many of us have heard the horror stories, loan servicers have been initiating foreclosures on homeowners even when they have been actively trying to get a loan modification or even when they are in the middle of making payments on a trial loan modification. This bill also helps the homeowner to seek limited damages against the servicer if … (1 comments)
Communication is key - One of the biggest ways to make your short sale successful is to stay in constant communication with your Realtor and bank. So many short sales fail to help you avoid foreclosure because the homeowner does not convey important information to the Realtor from the bank! Some typical examples include Notice of Default, Notice of Trustee Sale and other various forms of communication to you the homeowner from the lien holder(s). Don't worry - One of the important things we learned during our short sale was … (1 comments)
hamp: SHaring my personal short sale story - Part 3
- 05/17/10 05:07 AM
Today I wanted to share a very important part of my personal short sale story and that is: The top 6 lessons learned before the short sale listing.
"Cut the cord" - Simply put, before a short sale can even work you have to be mentally prepared and ready for what you are about to embark upon. The short sale process can be a lengthy one but it can also be fast. With so many variables in a short sale, the uncertainty can become very unnerving. My advice to anyone thinking about a short sale to avoid foreclosure is to … (2 comments)
hamp: Sharing my personal short sale story – Part 2
- 05/15/10 05:37 PM
Like I stated yesterday, I wanted to spend the next few days or so telling you my personal short sale story. Like everyone else, it all starts with a financial hardship. In our case it was a job loss. With the loss of income, we knew we needed to sell our home. Our problem was that we bought at the peek for $330,000 and now our house was worth only $260,000 realistically, but like most homeowners in denial we thought our home was still worth at least $300,000 so we tried to sell it ourselves. That was the first mistake … (0 comments)
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