short sale: Excess Housing Inventory- What Does it Mean?
- 05/25/10 07:53 AM
In Morgan Stanley's new finance report, Housing Market Insights, the investment bank estimates that at the rate of current home sales, it would take 47 months for us to clear the "shadow inventory" of houses. What exactly is the shadow inventory? Morgan Stanley's method of calculating the shadow inventory includes all loans 90 days or more behind on their payments, most loans that are 30-60 days behind, and properties that are already foreclosure. In short, unless they go through a successful loan modification or short sale, there is a strong possibility of the house going into foreclosure and ending up on … (7 comments)
Today Fannie Mae announced the decision to shorten the time a borrower has to wait before they can qualify for a mortgage after a short sale or foreclosure. These new guidelines come a week after the government’s Home Affordable Foreclosure Alternatives (HAFA) program hit the market, and Fannie Mae hopes the new guidelines and HAFA program will work together in an effort to get borrowers back in homes as soon as possible. Normally, borrowers are required to wait four years after a foreclosure before they can apply for a mortgage again, and at least two years after a deed … (7 comments)
short sale: Second Lien Modification Program Still in the Works
- 04/07/10 05:22 AM
Despite the hullabaloo surrounding the Second Lien Modification Program, or 2MP, the program still has a lot of uncertainty surrounding it. With only four major loan servicers signing on with the federal program designed to coordinate first and second lien modifications, the future success of the program is still in doubt. So far, JPMorgan Chase, Wells Fargo, Bank of America and Citigroup have signed onto the program. Problems with the program include the fact that the first and second lien modifications do not occur simultaneously or automatically. Involvement in the 2MP program requires the consent of the borrower, and gives … (2 comments)
short sale: Home Affordable Foreclosure Alternatives Set to Debut
- 03/10/10 11:22 AM
Early next month, the federal Home Affordable Foreclosure Alternatives program is set to launch. The purpose of this program is to help homeowners who have been denied loan modifications negotiate a short sale or deed in lieu of foreclosure with their banks. The federal program is offering incentives to lenders who approve these measures in the hope that it will stem the tide of foreclosures, which may increase this year because of continued unemployment and low home values.
This program has met a little skepticism since its announcement however. Some lenders have had homeowners sell their houses to family members, … (0 comments)
short sale: Obama Opens More Options to Struggling Homeowners
- 12/02/09 04:43 AM
Obama Opens More Options to Struggling HomeownersDuring President Obama’s speech this last Monday, he outlined new guidelines for homeowners who are in trouble with their banks due to late mortgage payments. While the federal programs Making Home Affordable (MHA) and the Home Affordable Modification Program (HAMP) have been able to keep some homeowners in their homes through loan modifications, the programs only cover loans backed by Fannie Mae or Freddie Mac, and have additional guidelines following that. Also, some borrowers have been unable to keep up with their trial loan modification payments and so have been denied a permanent modification.Foreclosures are … (2 comments)
Bank foreclosure real estate, also referred to as REOs (Real Estate Owned), is foreclosed real estate that is owned by the bank due to an unsuccessful foreclosure auction. There are several reasons the home may have not sold at the auction. The most common reason is negative equity, when the value of the property is worth less than the amount owed to the bank. The bank tries to get the closest amount to the original balance on the loan so they lose the least amount of money, and so the price of the property is often based … (0 comments)
If you are in a position where you are forced to move, say because of a job transfer, health reasons, or pending foreclosure, and you can’t sell your home, what are your options?
In reality, you probably can sell your home, just not for the amount you would like to. In the current market, you could sell the home for below market value and take a loss, but in some cases home values have dropped so much that the current value is less than what you may owe on the home! … (0 comments)
short sale: How A Short Sale Can Benefit the Seller
- 11/04/09 07:07 AM
How Can A Short Sale Benefit The Seller? How would it feel to lose your dream home for no fault of your own? Financial problems due to loss of job, health problems, divorce, and taking care of family members all characterize each of our lives and none of us really know what will affect us when. We cherish our dreams and make enormous efforts towards realizing them, some of which come true and some do not and some we miss reaching almost the threshold of acquiring. A breathing reality that is so common in all of our lives is the threat … (1 comments)
In Morgan Stanley's new finance report, Housing Market Insights, the investment bank estimates that at the rate of current home sales, it would take 47 months for us to clear the "shadow inventory" of houses. What exactly is the shadow inventory? Morgan Stanley's method of calculating the shadow inventory includes all loans 90 days or more behind on their payments, most loans that are 30-60 days behind, and properties that are already foreclosure. In short, unless they go through a successful loan modification or short sale, there is a strong possibility of the house going into foreclosure and ending up on … (7 comments)
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