mortgage: Why Loan Modifications Are Not A Financially Sound Solution
- 07/23/13 04:16 PM
Why Loan Modifications Are Not A Financially Sound Solution Why Applying For A Loan Modification Is Not Worth The Effort and Cost In Time And Money Many financially distressed homeowners and investment property owners who are facing foreclosure put all their hope in getting a loan modification from their bank or mortgage company. Unfortunately, as this McSweeney's article - Could It Be That the Best Chance to Save a Young Family From Foreclosure is a 28-Year-Old Pakistani American Playright-slash-Attorney who Learned Bankruptcy Law on the Internet? depicts, the loan modification application process can be exhausting, time consuming, frustrating and expensive. In this … (7 comments)
mortgage: Government Settles Foreclosure Lawsuits With Major Banks
- 02/09/12 09:18 AM
Government Settles Foreclosure Lawsuits With Major Banks US Government and States Reach $25 Billion Foreclosure Case Settlement With National Mortgage Companies According to this Bloomberg Business Week article, Banks Agree to $25 Billion Deal to End Foreclosure Probe, the federal government and state AG's agreed to settle lawsuits stemming from the illegal and unethical foreclosure practices of the large national banks (Ally/GMAC, Bank of America, CitiMortgage, JPMorgan Chase and Wells Fargo ). Under the foreclosure settlement, the banks agreed to follow new servicing guidelines when dealing with borrowers who are in default or facing foreclosure. The new mortgage servicing guidelines, which … (0 comments)
mortgage: Mortgage Banking Official Says Loan Modifications Virtually Impossible
- 03/07/11 11:45 AM
Mortgage Banking Official Says Loan Modifications Virtually ImpossibleHomeowners Facing Foreclosure Have Almost No Chance of Getting Their Payment Lowered According to this article in The Salt Lake Tribune, Bankers: Modifying Utah mortgages unrealistic, Howard Headlee, president of the Utah Bankers Association, said "It is virtually impossible for homeowners trapped in a foreclosure process to try to renegotiate the terms of their loans." The article goes on to say that Mr. Headlee described the loan modification process for homeowners and borrowers facing foreclosure with the statement "It’s kind of like unscrambling an egg." as a result of the fact that most mortgage … (0 comments)
mortgage: Foreclosures Continue to Increase
- 04/26/10 08:53 AM
Foreclosures Continue to Increase According to this Diana Olick article on CNBC.com, Foreclosures Are Rising, foreclosures continue to increase (i.e. more properties are going to foreclosure auctions) due to the failure of the various loan modification programs (many borrowers do not end up qualifying for permanent modifications and many borrowers default on modifications even if they are granted) and the huge backlog of seriously delinquent loans (over 5 million), which are now making their way toward becoming foreclosures. Basically, foreclosures are going to remain extremely high for the next few years, and, as a result, seriously stress the banks' asset managers. … (3 comments)
mortgage: Short Sales Will Increase
- 04/22/10 03:56 PM
Short Sales Will Increase According to this Diana Olick CNBC article, Let the Short Sales Begin, the Obama Administration's Home Affordable Foreclosure Alternatives Plan (aka HAFA) (effective April 5, 2010), which is offering financial "incentives to borrowers, servicers, investors and second lien holders" to encourage short sales, plus the coming wave of foreclosures (shadow foreclosures, Option ARM and related foreclosures) will result in a substantial increase in the number of short sales. I absolutely agree. The question is whether the increase will be enough. The article goes on to state that the "Administration increased the incentives such as "doubling the amount … (3 comments)
mortgage: How To Stop Foreclosure
- 04/05/10 04:26 AM
How To Stop Foreclosure Homeowners and real estate owners who are in foreclosure, or who have received a letter from their mortgage lender's attorney stating that the foreclosure process will begin, or have received a notice of default frequently ask me how they can stop the foreclosure. Therefore, I listed the best ways to stop a foreclosure action below depending on whether you want to keep your home or investment property. Options if you want to keep your home or investment property: Mortgage Refinance - If you have not missed a payment yet you still may be able to refinance into … (1 comments)
mortgage: Housing Headed For Trouble
- 04/05/10 03:13 AM
Housing Headed For Trouble As a short sale specialist, my listings usually sell very quickly. However, since March 2010 began my short sale listings are selling more slowly than they did previously. I attribute this to the first-time home buyer tax credit since those buyers were the primary buyer pool in my market Middle Tennessee. I think this is particularly true for most markets in the US where the tax credit had a substantial short term impact (particularly in lower priced markets where the $8,000 tax credit is a fairly substantial percentage of the sale prices). Now that the first time … (1 comments)
mortgage: White House Admits Housing Will Not Recover Anytime Soon
- 04/02/10 08:13 AM
White House Admits Housing Will Not Recover Anytime Soon I read this Economy Watch article about the March 2010 US Unemployment Rate in which the White House basically admits (at least in a round about way) that the US housing market cannot rebound to anywhere near peak 2005-2007 (depending on the market) price levels until at least 2017. The article doesn't actually say this, but it states "The White House does not expect the rate to return to its healthy-economy level of 5 percent until at least 2017." Based on the fact that a healthy (i.e. low) unemployment rate is required … (0 comments)
mortgage: 7.2 Million Delinquent Mortgages As Of December 2009
- 02/08/10 06:10 AM
7.2 Million Delinquent Mortgages As Of December 20097.2 Million Mortgage Loans In Default With An Estimated 1.0 Million REO's According to this LPS Mortgage Monitor (a mortgage industry performance report provided by LPS Applied Analytics), LPS Mortgage Monitor: January 2010 Mortgage Performance Observations: Data as of December 31, 2009 Month-end and the Executive Summary, in December 2009 mortgage loan delinquencies and defaults increased significantly and foreclosures (REO's or bank owned properties) reached the one million mark. The Executive Summary noted the following: Delinquency rates have surpassed the 10% level; factoring in foreclosures, the total non-current rate sits at 13.3%. Industry extrapolations … (2 comments)
mortgage: FHA has lifted the 90-day seasoning requirement!
- 01/17/10 07:38 AM
This is good news for foreclosed, distressed and fixer upper property flippers, rehabbers and investors. However, be aware that the FHA is basically bankrupt. It is likely that FHA loan underwriting standards will continue to tighten.
The news is spreading fast... As reported out from FHA on January 15, 2010 - HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS Measure to help bring stability to home values and accelerate sale of vacant properties WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun … (0 comments)
mortgage: Homeowners Walking Away: Right or Wrong?
- 10/29/09 06:36 AM
Homeowners Walking Away: Right or Wrong? In my previous blog post, Underwater Homeowners Walking Away From Their Homes, I covered the issue of homeowners who "walk away" from their homes and mortgages (even though they can afford to pay their mortgages) due to the mortgage debt on their homes far exceeding the market value of their homes (in other words, they are "underwater"). "Walking away" is also called a "Strategic Default". That post briefly covered the fact that most homeowners view "strategic default" as being morally wrong, but despite that many homeowners would still "walk away" from their homes and mortgages … (8 comments)
mortgage: Effects of a Loan Modification, Short Sale, Foreclosure, Bankruptcy and Walking Away/Doing Nothing on Your Credit Score
- 09/25/09 06:30 AM
Effects of a Loan Modification, Short Sale, Foreclosure, Bankruptcy and Walking Away/Doing Nothing on Your Credit Score There seems to be a lot of conflicting information out there regarding the negative effects of a Loan Modification, Short Sale, Foreclosure, Bankruptcy and Walking Away/Doing Nothing on a person's credit score. I would like to try to clear some of that confusion up. According to this Los Angeles Times article, Mortgage problems are walloping Americans' credit scores, loan modifications, short sales, foreclosures, bankruptcies and walking away/doing nothing effect your credit score differently. Below is a brief summary of the different options. Loan Modification … (2 comments)
Why Loan Modifications Are Not A Financially Sound Solution
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