Thursday, February 25, 2010

New wave of foreclosures by end of 2010 is feared -

  • Most reports are showing that the foreclosure crisis isn't going to get better any time soon. Another new wave is expected as unemployment is taking its toll.

  • tags: foreclosures, wave

    • About 4 million U.S. homeowners are 90 days or more delinquent on their loans or in foreclosure proceedings, Moody's says. A federal loan modification program is helping a relative few.
    • BofA holds about 1 million mortgages that are at least 60 days delinquent.
    • About 4 million homeowners nationwide are 90 days or more delinquent on their mortgages or in foreclosure proceedings, according to Moody's
    • Trial modifications and other delays have kept many of those mortgages out of foreclosure, but by the end of this year, 2.4 million borrowers are expected to lose their homes, said Celia Chen, a housing economist at
    • That would be up from 2.1 million foreclosures and short sales last year and five times the annual numbers earlier in the decade.
    • their large numbers are likely to push home prices back down this year, to a bottom in the fourth quarter, Chen said. And that would make things worse for the 25% of homeowners who already owe more on their mortgages than their houses are worth.
    • 11.4% of California homeowners were 90 days or more late on their loans, according to First American CoreLogic, a Santa Ana real estate data firm. That compares with a delinquency rate of 8.4% nationwide.

I've decided that the forclosure situation is officially unreal. Nearly 1 in every nine California Homes is behind on payments! That's crazy. The sad thing is that as values continue to decline it's going to put even more people underwater. Home values are going to be even less than they were before the boom happened. Just think how much better off the housing market and economy would have been if the housing bubble never happened.

Monday, February 22, 2010

Home Home Affordable Foreclosure Alternatives Program « Logan Utah Real Estate Blog

  • "There is another new Federal Government program out their designed to reduce the consequences and liability of people trying to avoid foreclosure by selling their homes as short sales, or else voluntarily giving up their homes with a Deed in Lieu of Foreclosure. This program is called the Home Affordable Foreclosure Alternatives Program. Say that five times fast.

  • This program will be implemented on April 5th. It is supposed to “streamline” the short sale process, and remove the ability for banks to seek a deficiency judgement for the amounts they are actually owed from the borrowers. According to the official HMPadmin website: The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower. HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation. More details are available at this the official site: HMPadmin: Foreclosure Alternatives."

    tags: foreclosure prevention, short sales

Foreclosure Prevention Has Aided 116,000

  • It looks like the Federal government Foreclosure prevention programs actually have done some good things. It has prevented more than 100,000 additional homes from being on the market as foreclosures. The interesting thing will be seeing how long it actually lasts, how many of these people who saw their loans modified will be able to make their payments and stay in their homes for extended periods of time.

    tags: foreclosures, foreclosure, prevention

    • The federal foreclosure prevention program has helped about 12 percent of borrowers who applied for help since the plans were announced a year ago, the Treasury Department says.

      About 1 million borrowers initiated the application process, and as of January, about 116,000 home owners--12 percent--had their loans modified. But administration officials say another 76,000 applications have been approved and are awaiting signatures.

      Another 830,500 home owners are currently in a trial modification review period during which banks make sure payments are feasible for the borrower and ensure the qualifications of the assistance program are met.

      For those who qualify, the Home Affordable Modification Program brings monthly loan payments down to 31 percent of home owners' pre-tax income.

      Nearly 60,500 people have been denied permanent modifications.

      Source: CNNMoney, Tami Luhby (02/17/2010) and USA TODAY, Stephanie Armour (02/17/2010)

Posted from Diigo. The rest of my favorite links are here.

Wednesday, February 17, 2010

Is Foreclosure Dam breaking?

  • More and more people who can afford to make their mortgage payments are defaulting anyways because it economically makes sense. Foreclosures will likely continue to get worse before they get better.

    tags: foreclosures

    • RealtyTrac senior Vice president Rick Sharga said, “The real spike was in bank repossessions. And that suggests to me that some of the processing delays that we saw keeping numbers down may be ending.” More and more borrowers are defaulting strategically – seriously delinquent and walking away from their mortgages even if they can afford the payments.

      Las  Vegas posted the nation’s highest metro foreclosure rate for the year, with  more than 12 percent of its housing units receiving a foreclosure notice in  2009 — more than five times the national average. Las Vegas reported a quarter-over-quarter decline in foreclosure activity in the fourth quarter — as did all the other metro areas with foreclosure rates ranking among the top 10 for 2009.

      With 11.87 percent of its housing units receiving a foreclosure notice in 2009, Cape Coral-Fort Myers, Fla., documented the second highest metro foreclosure rate. Other Florida cities in the top 10 were Orlando-Kissimmee at No. 7 (8.17 percent), Port St.  Lucie at No. 9 (7.58 percent), and Miami-Fort   Lauderdale-Pompano Beach at No. 10 (7.16 percent).

Posted from Diigo. The rest of my favorite links are here.