Lawmakers' failure to extend the Mortgage
Forgiveness Debt Relief Act by year-end will kill any momentum surrounding
the short sales process, real estate
economists say.
Several banking and real estate
organizations sent a warning letter about the expiring act and the immediate
need for an extension to Senate leaders
Wednesday.
Short sales in the past year have
become an attractive escape route for banks and borrowers when a homeowner
simply cannot repay a home loan.
But if the
mortgage debt relief act is allowed to expire on Dec. 31 without an extension,
distressed borrowers could end up paying taxes on mortgage debts forgiven
through principal reductions or short sales. The current law allows borrowers to
avoid tax liabilities for the extinction or sale of mortgage
debt.
"If Congress fails to act, the
possibility of receiving a tax bill would make it more difficult and expensive
for these struggling homeowners to accept short sales and many loan modification
offers," the associations wrote in a letter to the
Senate.
Doug Duncan, chief economist for
Fannie Mae, said turning debt forgiveness from a nontaxable
event to a taxable one could "encourage lenders to ramp up short sales in this
(current) period."
He added, "Then after Dec. 31, it may create an
incentive for the homeowner to simply let the process go to foreclosure because
in a foreclosure proceeding it is not a taxable event," Duncan told
HousingWire.
Organizations signing the letter
included the American Bankers Association, the American
Land Title Association, the Mortgage Bankers
Association, the National Association of Home Builders
and the National Association of Realtors.
Source:
Housingwire.com
Reported by By Kpanchuk
Thursday, December 13, 2012
Keller Williams names Mark Kunce 2013 Cultural Icon for Southern CA
Mark Kunce of San Diego My Home Team, Keller Williams San Diego Metro was recently named as the
2013 Cultural Icon for his contributions to KW Cares and many other local and
national charities. More commonly known as the WI4C2TS Award, it is given to the
agent who best exemplifies the Keller Williams culture. The Cultural Icon Award
is presented to an elite group of Associates who best live up to the Keller
Williams Realty "WI4C2TS" philosophy.
KW Cares is a 501(c) (3) public charity created to support Keller Williams Realty associates and their families with hardship as a result of a sudden emergency. Hardship is defined as a difficult circumstance that a person or family cannot handle without outside help.
The charity is the heart of Keller Williams Realty culture in action – finding and serving the higher purpose of business through charitable giving in the Market Centers and communities where Keller Williams associates live and work.
KW Cares is a 501(c) (3) public charity created to support Keller Williams Realty associates and their families with hardship as a result of a sudden emergency. Hardship is defined as a difficult circumstance that a person or family cannot handle without outside help.
The charity is the heart of Keller Williams Realty culture in action – finding and serving the higher purpose of business through charitable giving in the Market Centers and communities where Keller Williams associates live and work.
Wednesday, December 5, 2012
The Top 11 Reasons a Seller Should List During the Holidays
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11. By selling now, you may have an opportunity to be a non-contingent buyer during the spring, when many more houses are on the market for less money! This will allow you to sell high and buy low!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!
9. Even though your house will be on the market, you still have the option to restrict showings during the six or seven days around the Holidays!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until spring to buy, you need to be on the market during the Holidays to capture that market!
7. Some people must buy before the end of the year for tax reasons!
6. Buyers have more time to look for a home during the holidays than they do during a working week!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
4. Houses show better when decorated for the Holidays!
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home! Less demand means less money for you!
2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more
money for you!
And the Number One reason why a Seller should list during the Holidays…
1. People who look for homes during the Holidays are more serious buyers
If you are looking to sell your home, please contact San Diego My Home Team.
Friday, November 9, 2012
Tuesday, October 23, 2012
Video Blog: Wells Fargo Short Sale (ASC, Wachovia Short Sale) in San Diego
Short Sale News: Ratings Agency Forecasts a Stronger Year for Short Sales in 2013
Even though the number of
foreclosure filings has risen dramatically in recent months in some parts of the
country—specifically in judicial states—the ratings agency DBRS expects total
foreclosure filings to show evidence of a steady decline in 2013 when compared
to 2012.
This is due to “the record number of servicers that are using short sales as their primary loss mitigation tool to prevent delinquent loans from entering foreclosure,” the agency’s analysts said in a research note issued Monday.
The Office of the Comptroller of the Currency (OCC) found evidence of such a shift as early as 2012’s first quarter. With the release of its Q1 mortgage performance report, the federal regulator noted that the number of home retention actions implemented over the January-to-March timeframe was down 36.7 percent from a year earlier, while the number of short sales increased 19.7 percent.
New short sale actions completed during the first quarter of this year totaled 59,996, according to the OCC’s latest report covering about 60 percent of all first-lien mortgages in the United States. Over the second-quarter period, another 63,403 short sale actions were completed by the 60-percent subject population.
While it will be another two-and-a-half months before the OCC releases its third-quarter mortgage performance data and mitigation numbers, anecdotal evidence from those in the field suggests the increase in short sales is likely to carry forward.
Rudimentary projections based on the quarter-to-quarter increase seen earlier this year would mean another 138,000 completed short sales during the second half of 2012 among the 60-percent first-lien population analyzed by the OCC.
DBRS believes short sales will be an effective loss mitigation tool for curbing the industry’s shadow inventory backlog of unsold REO properties. Short sales are an effective way to get the home sold without having to incur the cost of foreclosure, preparing the home for sale, paying a listing agent, and maintaining the property, therefore lowering loss severity, the agency’s analysts noted.
As a result, DBRS expects short sales to be one of the key loss mitigation techniques used in 2013 with more servicers delegating or automating their acceptance and counter offer process in order to be more responsive to short sale bids on properties.
Source: DSnews.com
Reported by Carrie Bay
This is due to “the record number of servicers that are using short sales as their primary loss mitigation tool to prevent delinquent loans from entering foreclosure,” the agency’s analysts said in a research note issued Monday.
The Office of the Comptroller of the Currency (OCC) found evidence of such a shift as early as 2012’s first quarter. With the release of its Q1 mortgage performance report, the federal regulator noted that the number of home retention actions implemented over the January-to-March timeframe was down 36.7 percent from a year earlier, while the number of short sales increased 19.7 percent.
New short sale actions completed during the first quarter of this year totaled 59,996, according to the OCC’s latest report covering about 60 percent of all first-lien mortgages in the United States. Over the second-quarter period, another 63,403 short sale actions were completed by the 60-percent subject population.
While it will be another two-and-a-half months before the OCC releases its third-quarter mortgage performance data and mitigation numbers, anecdotal evidence from those in the field suggests the increase in short sales is likely to carry forward.
Rudimentary projections based on the quarter-to-quarter increase seen earlier this year would mean another 138,000 completed short sales during the second half of 2012 among the 60-percent first-lien population analyzed by the OCC.
DBRS believes short sales will be an effective loss mitigation tool for curbing the industry’s shadow inventory backlog of unsold REO properties. Short sales are an effective way to get the home sold without having to incur the cost of foreclosure, preparing the home for sale, paying a listing agent, and maintaining the property, therefore lowering loss severity, the agency’s analysts noted.
As a result, DBRS expects short sales to be one of the key loss mitigation techniques used in 2013 with more servicers delegating or automating their acceptance and counter offer process in order to be more responsive to short sale bids on properties.
Source: DSnews.com
Reported by Carrie Bay
Sunday, October 14, 2012
October San Diego Real Estate Market Update: Low Inventory, Good Time to Sell!
The number of active listings on the Multiple Listing Service continues to fall. There were about 9,900 available listings in the entire MLS (including some Riverside country properties such as Temecula). Right now, there are about 5,200 available listings in San Diego Country, the lowest number in at least three years.
What does that mean for sellers? It means their listings are experiencing extremely high activity, receiving multiple offers, and many times selling for more than the listing price.
San Diego is experiencing what many other cities around the country can only dream of having – a housing inventory shortage. If you are thinking about selling your home in San Diego, now is the best time to do so. Call me to get your house sold now. For more information, visit http://www.sdmyhome.com
What does that mean for sellers? It means their listings are experiencing extremely high activity, receiving multiple offers, and many times selling for more than the listing price.
San Diego is experiencing what many other cities around the country can only dream of having – a housing inventory shortage. If you are thinking about selling your home in San Diego, now is the best time to do so. Call me to get your house sold now. For more information, visit http://www.sdmyhome.com
Monday, October 8, 2012
Short Sale News: CoreLogic: Home Prices Sustain Recovery with 4.6% Yearly Gain
ome prices continued to trend upwards in August, posting both yearly and monthly gains for the sixth consecutive month, CoreLogic reported Tuesday.
When including distressed sales, home prices in August rose 4.6 percent from a year ago, marking the biggest yearly gain since July 2006. Month-over-month, prices were up 0.3 percent from July to August.
When excluding distressed sales, which are short sales and REO transactions, prices were up yearly and monthly by 4.9 percent and 1 percent, respectively.
CoreLogic’s Pending HPI points to further increases into September. Prices including distressed sales are expected to rise by 5 percent yearly and 0.3 percent monthly.
“Sustained economic recovery in the U.S. requires a healthy housing market. You cannot have a healthy housing market without price stabilization and ultimately home price appreciation,” said Anand Nallathambi, president and CEO of CoreLogic, in a release. “Improving pricing trends over the past few months and our forecast for continued gains in September bode well for a progressive rebound in the residential housing market.”
On a state-by-state basis, all but six states saw price gains.
Including distressed sales, the five states that appreciated the most over a one-year period were Arizona (+18.2 percent), Idaho (+10.4 percent), Nevada (+9.0 percent), Utah (+8.9 percent) and Hawaii (+8 percent).
Rhode Island led with the biggest decline, where prices fell 2.6 percent, followed by Illinois (-2.3 percent), New Jersey (-1.4 percent), Alabama (-0.7 percent) and Connecticut (-0.5 percent).
Phoenix continued to outshine other metros, rising 21.8 percent from August 2011. Houston ranked second, but was still far behind, gaining 6.3 percent during the same period. Washington D.C. (+4.8 percent), Dallas (+4.3 percent), and Los Angeles (4 percent) were also among the top five.
Source: DSnews.com
Reported by Esther Cho
When including distressed sales, home prices in August rose 4.6 percent from a year ago, marking the biggest yearly gain since July 2006. Month-over-month, prices were up 0.3 percent from July to August.
When excluding distressed sales, which are short sales and REO transactions, prices were up yearly and monthly by 4.9 percent and 1 percent, respectively.
CoreLogic’s Pending HPI points to further increases into September. Prices including distressed sales are expected to rise by 5 percent yearly and 0.3 percent monthly.
“Sustained economic recovery in the U.S. requires a healthy housing market. You cannot have a healthy housing market without price stabilization and ultimately home price appreciation,” said Anand Nallathambi, president and CEO of CoreLogic, in a release. “Improving pricing trends over the past few months and our forecast for continued gains in September bode well for a progressive rebound in the residential housing market.”
On a state-by-state basis, all but six states saw price gains.
Including distressed sales, the five states that appreciated the most over a one-year period were Arizona (+18.2 percent), Idaho (+10.4 percent), Nevada (+9.0 percent), Utah (+8.9 percent) and Hawaii (+8 percent).
Rhode Island led with the biggest decline, where prices fell 2.6 percent, followed by Illinois (-2.3 percent), New Jersey (-1.4 percent), Alabama (-0.7 percent) and Connecticut (-0.5 percent).
Phoenix continued to outshine other metros, rising 21.8 percent from August 2011. Houston ranked second, but was still far behind, gaining 6.3 percent during the same period. Washington D.C. (+4.8 percent), Dallas (+4.3 percent), and Los Angeles (4 percent) were also among the top five.
Source: DSnews.com
Reported by Esther Cho
Friday, October 5, 2012
Short Sale News: Shadow inventory declines by 1.2 million in 2012
Banks trimmed 1.2 million troubled mortgages or foreclosed homes out of the
massive shadow inventory hanging over the housing market in the first half of
2012, according to JPMorgan Chase ($41.71 -0.11%)
research.
The progress could double by the end of the year, though more than 4 million loans and properties would remain. Still, that would be down from a peak of 6 million in 2010.
The nearly 335,000 short sales completed in the first half neared the 420,000 modifications done. Another 470,000 in REO sold as well.
The $25 billion foreclosure settlement with the five largest mortgage servicers in March resulted in many more short sales than modifications.
Chase analysts expect the AG settlement could result in 100,000 principal reduction mods for an average of $100,000 reduced for each borrower. Servicers would have to rally in the back half of 2012 to get there. A total of just 7,000 were completed through June, but banks said they began ramping up offers over the last two months.
By the end of the year, servicers could sell more than 950,000 foreclosed homes and another 670,000 properties through short sale. Analysts expect 800,000 modifications total for 2012.
Estimates on the shadow inventory vary based on how delinquent a loan must be before researchers add it to the pile. Chase estimates include loans that have gone at least 60 days without a payment. Still, the consensus is that banks are making progress and with it, house prices will also improve.
This could then help solve the other major drag on housing: the amount of borrowers stuck making payments on a loan they owe more on than their house is worth.
Should prices increase another 10%, the 10.8 million underwater borrowers could drop to 9 million, Chase estimates.
"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," analysts said. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."
Source: Housingwire.com
Reported by Jon Prior
The progress could double by the end of the year, though more than 4 million loans and properties would remain. Still, that would be down from a peak of 6 million in 2010.
The nearly 335,000 short sales completed in the first half neared the 420,000 modifications done. Another 470,000 in REO sold as well.
The $25 billion foreclosure settlement with the five largest mortgage servicers in March resulted in many more short sales than modifications.
Chase analysts expect the AG settlement could result in 100,000 principal reduction mods for an average of $100,000 reduced for each borrower. Servicers would have to rally in the back half of 2012 to get there. A total of just 7,000 were completed through June, but banks said they began ramping up offers over the last two months.
By the end of the year, servicers could sell more than 950,000 foreclosed homes and another 670,000 properties through short sale. Analysts expect 800,000 modifications total for 2012.
Estimates on the shadow inventory vary based on how delinquent a loan must be before researchers add it to the pile. Chase estimates include loans that have gone at least 60 days without a payment. Still, the consensus is that banks are making progress and with it, house prices will also improve.
This could then help solve the other major drag on housing: the amount of borrowers stuck making payments on a loan they owe more on than their house is worth.
Should prices increase another 10%, the 10.8 million underwater borrowers could drop to 9 million, Chase estimates.
"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," analysts said. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."
Source: Housingwire.com
Reported by Jon Prior
Wednesday, September 26, 2012
Review: Bank of America New Short Sale Relocation Assistance Program
On August 22nd, 2012 we closed a short sale with Bank of America in El Cajon, CA.
The transaction moved along very smoothly.
We initiated short sale on May 23rd. It took about 20 days to receive a short sale approval (Short Sale Relocation Assistance Program).
We received the first offer just 4 days after listing the property on June 14th. The seller and I decided not to jump on the first offer and waited 10 days, received other offers and chose the most qualified.
Seller, buyer, escrow and Bank of America processed all the documents, and the property went into “Sale Pending” status on July 18th. FHA buyer and buyer’s agent were very cooperative, We just reminded them that this was an as-is sale, no termite clearance, and the transaction closed with no issues.
Lender credited the seller’s relocation fee, property tax, and buyer’s closing costs!
If you or someone you know is interested in doing a short sale, please contact Mark Kunce 619-663-7139.
The transaction moved along very smoothly.
We initiated short sale on May 23rd. It took about 20 days to receive a short sale approval (Short Sale Relocation Assistance Program).
We received the first offer just 4 days after listing the property on June 14th. The seller and I decided not to jump on the first offer and waited 10 days, received other offers and chose the most qualified.
Seller, buyer, escrow and Bank of America processed all the documents, and the property went into “Sale Pending” status on July 18th. FHA buyer and buyer’s agent were very cooperative, We just reminded them that this was an as-is sale, no termite clearance, and the transaction closed with no issues.
Lender credited the seller’s relocation fee, property tax, and buyer’s closing costs!
If you or someone you know is interested in doing a short sale, please contact Mark Kunce 619-663-7139.
Tuesday, September 18, 2012
Monday, August 27, 2012
Video Blog: Short Sale/Foreclosure Tax Exemption Set to Expire in 2012
San Diego Realtor Mark Kunce talks about Mortgage Forgiveness Debt Relief Act.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.
Fore more information, visit http://www.sdmyhome.com
Wednesday, August 22, 2012
Short Sale News: New Short Sale Guidelines for GSEs Will Make Process Easier
Starting November
1, 2012, Fannie Mae and Freddie Mac will implement new short sale guidelines to make the approval process
easier for eligible borrowers.
“These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities,” said
FHFA Acting Director Edward J. DeMarco in a statement. “The new standard short sale program will also provide relief to those underwater borrowers who need to relocate more than 50 miles for a job.”
The changes are part of the FHFA’s Servicing Alignment Initiative and will require a streamlined approach with documents, leading to a reduction in documentation requirements. For example, borrowers who are 90 days or more delinquent and have a credit score lower than 620 will no longer be required to provide documentation for their hardship.
The GSEs will also waive their right to pursue deficiency judgments. Borrowers with sufficient income or assets can make cash contributions or sign promissory notes instead.One major barrier that is also being addressed is the issue with second lien holders. To prevent second lien holders from stalling the short sale process, the GSEs will offer up to $6,000.
The new guidelines will also enable servicers to approve a short sale for borrowers who are not in default but face certain hardships including the death of a borrower or co-borrower, divorce or legal separation, illness or disability or a distant employment transfer.
In addition, all servicers will have the authority to approve and complete short sales that follow the requirements without first going to the GSEs for approval.
Provisions were also created for military personnel with Permanent Change of Station (PCS) orders. Servicemembers who are required to relocate will automatically be eligible for for short sales even if they are current. They also won’t be obligated to contribute funds to pay for the remaining deficiency.
“Short sales have become an increasingly important tool in preventing foreclosures and stabilizing communities,” said Leslie Peeler, SVP, National Servicing Organization, Fannie Mae. “We want to help as many homeowners avoid foreclosure as possible. It is vital that servicers, junior lien holders and mortgage insurers step up to the plate with us.”
Tracy Mooney, SVP of Single-Family Servicing and REO at Freddie Mac, said, “These changes will make it clear that Freddie Mac servicers have the authority to approve short sales for more borrowers facing the most frequently seen hardships. These changes will further empower the industry to minimize foreclosures and help Freddie Mac in its mission to minimize credit losses and fortify a national housing recovery.”
Fannie Mae will send the announcement for the new changes to servicers Wednesday. Freddie Mac sent their announcement Tuesday.
In April, the GSEs also announced they were setting requirements to have a decision on a short sale offer made within 30-60 days.
Source: DSnews.com
Reported by Esther Cho
“These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities,” said
FHFA Acting Director Edward J. DeMarco in a statement. “The new standard short sale program will also provide relief to those underwater borrowers who need to relocate more than 50 miles for a job.”
The changes are part of the FHFA’s Servicing Alignment Initiative and will require a streamlined approach with documents, leading to a reduction in documentation requirements. For example, borrowers who are 90 days or more delinquent and have a credit score lower than 620 will no longer be required to provide documentation for their hardship.
The GSEs will also waive their right to pursue deficiency judgments. Borrowers with sufficient income or assets can make cash contributions or sign promissory notes instead.One major barrier that is also being addressed is the issue with second lien holders. To prevent second lien holders from stalling the short sale process, the GSEs will offer up to $6,000.
The new guidelines will also enable servicers to approve a short sale for borrowers who are not in default but face certain hardships including the death of a borrower or co-borrower, divorce or legal separation, illness or disability or a distant employment transfer.
In addition, all servicers will have the authority to approve and complete short sales that follow the requirements without first going to the GSEs for approval.
Provisions were also created for military personnel with Permanent Change of Station (PCS) orders. Servicemembers who are required to relocate will automatically be eligible for for short sales even if they are current. They also won’t be obligated to contribute funds to pay for the remaining deficiency.
“Short sales have become an increasingly important tool in preventing foreclosures and stabilizing communities,” said Leslie Peeler, SVP, National Servicing Organization, Fannie Mae. “We want to help as many homeowners avoid foreclosure as possible. It is vital that servicers, junior lien holders and mortgage insurers step up to the plate with us.”
Tracy Mooney, SVP of Single-Family Servicing and REO at Freddie Mac, said, “These changes will make it clear that Freddie Mac servicers have the authority to approve short sales for more borrowers facing the most frequently seen hardships. These changes will further empower the industry to minimize foreclosures and help Freddie Mac in its mission to minimize credit losses and fortify a national housing recovery.”
Fannie Mae will send the announcement for the new changes to servicers Wednesday. Freddie Mac sent their announcement Tuesday.
In April, the GSEs also announced they were setting requirements to have a decision on a short sale offer made within 30-60 days.
Source: DSnews.com
Reported by Esther Cho
Thursday, August 9, 2012
Just Listed! Little Italy Aqua Vista 1BR unit with bay views
For information on short sales visit http://www.sdmyhome.com/short-sale.html
.
Wednesday, August 8, 2012
Monday, July 23, 2012
Short Sale News: Short Sale Bill Addresses Slow Approval from 2nd Lien Holders
Rep. Jerry McNerney (D-Stockton) recently introduced a bill to speed up the short sale process by requiring subordinate mortgage lien holders to make a decision on a short sale within 45 days.
McNerney’s bill proposes that if the lender does not make a decision within the given time period, the short sale will be approved on the 46th day.
The bill, titled Fast Help For Homeowners (FHFH) Act, received strong support from the National Association of Realtors (NAR).
“Second mortgage lien holders frequently hold up and cancel the short sale transaction while trying to collect the largest possible payout in exchange for releasing the homeowner’s lien, even though the secondary lien holder often gets nothing if the home ends up going into foreclosure,” said NAR President Moe Veissi, in a statement. “While efforts have been made to improve primary lien holders’ response times, issues still abound with second and subsequent lien holders, and this legislation is a step in the right direction.”
The NAR also stated that its members continue to report delays in completing short sale transactions due to drawn out response times for whether or not an offer was accepted.
In a recent DS News interview with RealtyTrac VP Daren Blomquist, issues with second liens was also noted as problem for servicers when attempting to complete a short sale transaction.
The bill is cosponsored by Reps. Dennis Cardoza (D-California), Tom Rooney (R-Florida), George Miller (D-California), Jim Costa (D-California), Barbara Lee (D-California), and Richard Nugent (R-Florida).
Source: DSNews.com
Reported by Esther Cho
McNerney’s bill proposes that if the lender does not make a decision within the given time period, the short sale will be approved on the 46th day.
The bill, titled Fast Help For Homeowners (FHFH) Act, received strong support from the National Association of Realtors (NAR).
“Second mortgage lien holders frequently hold up and cancel the short sale transaction while trying to collect the largest possible payout in exchange for releasing the homeowner’s lien, even though the secondary lien holder often gets nothing if the home ends up going into foreclosure,” said NAR President Moe Veissi, in a statement. “While efforts have been made to improve primary lien holders’ response times, issues still abound with second and subsequent lien holders, and this legislation is a step in the right direction.”
The NAR also stated that its members continue to report delays in completing short sale transactions due to drawn out response times for whether or not an offer was accepted.
In a recent DS News interview with RealtyTrac VP Daren Blomquist, issues with second liens was also noted as problem for servicers when attempting to complete a short sale transaction.
The bill is cosponsored by Reps. Dennis Cardoza (D-California), Tom Rooney (R-Florida), George Miller (D-California), Jim Costa (D-California), Barbara Lee (D-California), and Richard Nugent (R-Florida).
Source: DSNews.com
Reported by Esther Cho
Saturday, July 14, 2012
Short Sale News: RealtyTrac: 2Q foreclosure activity rises as some states see reboot
Foreclosure starts in the second quarter saw a 9% increase from the first quarter and rose 6% from 2Q 2011, marking the first year-over-year increase in quarterly foreclosure starts since the fourth quarter of 2009, according to RealtyTrac's Midyear 2012 Foreclosure Market Report.
"Foreclosure starts began boiling over in more markets in the first half of the year, particularly in the second quarter, when rising foreclosure starts spread from primarily judicial foreclosure states in the first quarter to more than half of all nonjudicial foreclosure states in the second quarter," said Brandon Moore, CEO of RealtyTrac.
A total of 31 states posted year-over-year increases in foreclosure starts in the second quarter — 17 judicial foreclosure states and 14 nonjudicial foreclosure states.
In California, June also brought a 18% year-over-year increase in foreclosure starts, boosting the state's foreclosure rate to the highest nationwide for the month, marking the first time California's monthly foreclosure rate ranked No. 1 since RealtyTrac began reporting the numbers in 2005.
Nevada's foreclosure starts were up 61% from the first quarter to the second, indicating lenders are beginning to adjust to an October 2011 law that required additional documentation to initiate the foreclosure process.
The report shows a total of 1.05 million properties with foreclosure filings, including default notices, auction sale notices and bank repossessions, in the first half of the year, up 2% from the previous six months, down 11% from the first half of 2011.
Nevada, Arizona and Georgia came in the top spots for foreclosure filings for the first half of the year.
Despite Nevada's 61% year-over-year drop in foreclosure activity, the state still ranked No. 1 on the list with one in every 57 homes having a foreclosures filing compared to 1 in 126 nationally.
Arizona, which had the second highest foreclosure-filing rate, saw first-half filings decrease 37% from the same time last year, but one in 53 homes still had a foreclosure filing.
Coming in third, Georgia's foreclosure starts in the second quarter increased 5% from the first quarter and were up 23% from the year-ago quarter.
Nationwide, overall foreclosure activity decreased in June on a year-over-year basis for the 21st straight month, while foreclosure starts for the month increased annually for the second consecutive month.
Brandon Moore, CEO of RealtyTrac, said the additional scrutiny on how lenders and mortgage servicers process foreclosures along with additional measures by the federal government and several state governments to prevent foreclosures kept foreclosures down on a national scale, but several states still saw dramatic rises.
The first six months of 2012 saw a 2% increase in foreclosure from the last half of 2011, but filings were still down 11% from the same time period last year.
First-half foreclosure activity increased from a year ago in 20 states, including Indiana (32%), Pennsylvania (24%), South Carolina (23%), Connecticut (23%), Florida (23%) and Illinois (22%). But even with those dramatic increases, Nevada, Arizona and Georgia posted the top state foreclosure rates in the first half of the year.
Foreclosure completion time was up in the second quarter, increasing to 378 days from the initial foreclosure notice to the completed foreclosure, compared to the first quarter's 378 days. The number is a record high going back to the first quarter of 2007.
A few states with some of the longest foreclosure timelines, however, saw their average foreclosure time decrease. The average time to foreclosure in New York was down from 1,056 days in the first quarter to 1,001 days in the second quarter — a 5% drop — though the state still has the longest foreclosure timeline nationwide.
It was also down 3% in New Jersey, the state with the second longest timeline, and was down 1% in Pennsylvania, which has the seventh longest timeline.
"Lenders and servicers are slowly but surely catching up with the backlog of delinquent loans that under normal circumstances would have started the foreclosure process last year, and that catching up is why the average time to complete the foreclosure process started to level off or decrease in some states in the second quarter," Moore said.
"The increases in foreclosure starts in the first half of the year will likely translate into more short sales and bank repossessions in the second half of the year and into next year."
Source: Housingwire.com
Reported by Kerri Ann Panchuk
"Foreclosure starts began boiling over in more markets in the first half of the year, particularly in the second quarter, when rising foreclosure starts spread from primarily judicial foreclosure states in the first quarter to more than half of all nonjudicial foreclosure states in the second quarter," said Brandon Moore, CEO of RealtyTrac.
A total of 31 states posted year-over-year increases in foreclosure starts in the second quarter — 17 judicial foreclosure states and 14 nonjudicial foreclosure states.
In California, June also brought a 18% year-over-year increase in foreclosure starts, boosting the state's foreclosure rate to the highest nationwide for the month, marking the first time California's monthly foreclosure rate ranked No. 1 since RealtyTrac began reporting the numbers in 2005.
Nevada's foreclosure starts were up 61% from the first quarter to the second, indicating lenders are beginning to adjust to an October 2011 law that required additional documentation to initiate the foreclosure process.
The report shows a total of 1.05 million properties with foreclosure filings, including default notices, auction sale notices and bank repossessions, in the first half of the year, up 2% from the previous six months, down 11% from the first half of 2011.
Nevada, Arizona and Georgia came in the top spots for foreclosure filings for the first half of the year.
Despite Nevada's 61% year-over-year drop in foreclosure activity, the state still ranked No. 1 on the list with one in every 57 homes having a foreclosures filing compared to 1 in 126 nationally.
Arizona, which had the second highest foreclosure-filing rate, saw first-half filings decrease 37% from the same time last year, but one in 53 homes still had a foreclosure filing.
Coming in third, Georgia's foreclosure starts in the second quarter increased 5% from the first quarter and were up 23% from the year-ago quarter.
Nationwide, overall foreclosure activity decreased in June on a year-over-year basis for the 21st straight month, while foreclosure starts for the month increased annually for the second consecutive month.
Brandon Moore, CEO of RealtyTrac, said the additional scrutiny on how lenders and mortgage servicers process foreclosures along with additional measures by the federal government and several state governments to prevent foreclosures kept foreclosures down on a national scale, but several states still saw dramatic rises.
The first six months of 2012 saw a 2% increase in foreclosure from the last half of 2011, but filings were still down 11% from the same time period last year.
First-half foreclosure activity increased from a year ago in 20 states, including Indiana (32%), Pennsylvania (24%), South Carolina (23%), Connecticut (23%), Florida (23%) and Illinois (22%). But even with those dramatic increases, Nevada, Arizona and Georgia posted the top state foreclosure rates in the first half of the year.
Foreclosure completion time was up in the second quarter, increasing to 378 days from the initial foreclosure notice to the completed foreclosure, compared to the first quarter's 378 days. The number is a record high going back to the first quarter of 2007.
A few states with some of the longest foreclosure timelines, however, saw their average foreclosure time decrease. The average time to foreclosure in New York was down from 1,056 days in the first quarter to 1,001 days in the second quarter — a 5% drop — though the state still has the longest foreclosure timeline nationwide.
It was also down 3% in New Jersey, the state with the second longest timeline, and was down 1% in Pennsylvania, which has the seventh longest timeline.
"Lenders and servicers are slowly but surely catching up with the backlog of delinquent loans that under normal circumstances would have started the foreclosure process last year, and that catching up is why the average time to complete the foreclosure process started to level off or decrease in some states in the second quarter," Moore said.
"The increases in foreclosure starts in the first half of the year will likely translate into more short sales and bank repossessions in the second half of the year and into next year."
Source: Housingwire.com
Reported by Kerri Ann Panchuk
Wednesday, July 11, 2012
Short Sale News: HOPE NOW Reports 38,000 Short Sales in May
HOPE NOW released its May loan modification data Monday, revealing that the month saw nearly 38,000 completed short sales.
The May short sale total brings the organization’s overall total (since December 2009) to nearly 906,000. Executive director Faith Schwartz said that short sales have contributed greatly to HOPE NOW’s foreclosure prevention efforts.
“We have been tracking short sales for almost two years, and we now have meaningful data that shows the impact of short sales on the housing market,” said Faith Schwartz, executive director of HOPE NOW. “Since 2007, the industry has completed 6.43 million permanent solutions, which includes short sales and loan modifications. This figure compares to 4.5 million foreclosure sales in the same period of time-and shows that real progress has been made by the industry, non-profits, and government on behalf of at-risk homeowners since the housing crisis began.”
In addition, HOPE NOW reported that an estimated 63,000 homeowners received permanent, affordable loan modifications during the month, 17,590 of which were completed under HAMP. Approximately 45,000 loan modifications were completed via proprietary programs.
An estimated 81 percent of all proprietary modifications were mods with reduced principal and interest payments-73 percent of proprietary modifications reduced principal and interest payments by 10 percent or more. Fixed-rate modifications accounted for 90 percent of all proprietary modifications.
May saw increases in both foreclosure starts and sales compared to April’s data. Foreclosure starts were up 15 percent to 204,000 in May (compared to 177,000 in April), and completed foreclosure sales were up 9 percent to 65,000 (from 60,000 in April).
Delinquencies of 60 days or more remained relatively flat at 2.53 million (from April’s 2.52 million).
HOPE NOW’s release reaffirmed the organization’s focus on aggressive borrower outreach and noted its commitment to maintaining a high profile at outreach events, including several at military bases in the second half of the year.
“Foreclosures still have a negative impact on communities across the country, and our highest priority remains proper education and implementation of alternatives to foreclosure,” said Schwartz.
The May short sale total brings the organization’s overall total (since December 2009) to nearly 906,000. Executive director Faith Schwartz said that short sales have contributed greatly to HOPE NOW’s foreclosure prevention efforts.
“We have been tracking short sales for almost two years, and we now have meaningful data that shows the impact of short sales on the housing market,” said Faith Schwartz, executive director of HOPE NOW. “Since 2007, the industry has completed 6.43 million permanent solutions, which includes short sales and loan modifications. This figure compares to 4.5 million foreclosure sales in the same period of time-and shows that real progress has been made by the industry, non-profits, and government on behalf of at-risk homeowners since the housing crisis began.”
In addition, HOPE NOW reported that an estimated 63,000 homeowners received permanent, affordable loan modifications during the month, 17,590 of which were completed under HAMP. Approximately 45,000 loan modifications were completed via proprietary programs.
An estimated 81 percent of all proprietary modifications were mods with reduced principal and interest payments-73 percent of proprietary modifications reduced principal and interest payments by 10 percent or more. Fixed-rate modifications accounted for 90 percent of all proprietary modifications.
May saw increases in both foreclosure starts and sales compared to April’s data. Foreclosure starts were up 15 percent to 204,000 in May (compared to 177,000 in April), and completed foreclosure sales were up 9 percent to 65,000 (from 60,000 in April).
Delinquencies of 60 days or more remained relatively flat at 2.53 million (from April’s 2.52 million).
HOPE NOW’s release reaffirmed the organization’s focus on aggressive borrower outreach and noted its commitment to maintaining a high profile at outreach events, including several at military bases in the second half of the year.
“Foreclosures still have a negative impact on communities across the country, and our highest priority remains proper education and implementation of alternatives to foreclosure,” said Schwartz.
Saturday, July 7, 2012
Short Sale News: California Homeowner Bill of Rights passes, sent to governor
Two central provisions of the California Homeowner Bill of Rights passed the California State Legislature Monday.
The bills will travel to Gov. Jerry Brown’s desk, where other provisions of the bill also await approval. Brown has not indicated whether he will sign or veto the legislation.
The Assembly, by a vote of 53 to 25, and Senate, 24 to 13, approved the Foreclosure Reduction Act, which restricts the process of dual-tracked foreclosures and the Due Process Rights Act, which guarantees a single point of contact for struggling homeowners to discuss their loan. The latter also imposes civil penalties on the practice of fraudulently signing foreclosure documents without verifying their accuracy.
The Foreclosure Reduction Act bars lenders from filing notices of default, notices of sale, or conducting trustees’ sales while also considering alternatives to foreclosures like loan modifications or short sales.
“These common-sense reforms will require banks to treat California homeowners more fairly and bring more transparency and accountability to their practices in our state,” said California Attorney General Kamala Harris. “Responsible homeowners will have a better shot to keep their homes.”
The bills' passage comes the day after the release of a study authored by research and consulting firm Beacon Economics on behalf of industry groups, concluding that if the Homeowner Bill of Rights were signed into law it would ultimately harm the vast majority of California homeowners.
The bills impose stricter rules on mortgage servicers seeking to nonjudicially foreclose on homes with mortgages in default and expose mortgage servicers to substantial new legal liability, according to Beacon.
Beacon argues the bills could add to the financial burden of distressed homeowners.
“The nonjudicial foreclosure process is more efficient compared to the judicial foreclosure process, and it comes with an important caveat," the study notes. "When using nonjudicial foreclosure, lenders … cannot seek compensation for their mortgage losses out of the borrower’s other assets. If the nonjudicial route is lengthened and made more costly, many lenders may decide to pursue a judicial foreclosure ... and thus pursue remedies like deficiency judgments, ultimately costing the borrower more in the long run,” the study said.
Calling the bills “monumental,” State Sen. Darrell Steinberg, D-Sacramento, said people came together from different points of views over the course of 20 hours.
“This is how the process should work,” Steinberg said. “We achieved a middle ground. Let this be the first of a number of things we get done this week.”
Source: housingwire.com
Reported by Justin T. Hilley
The bills will travel to Gov. Jerry Brown’s desk, where other provisions of the bill also await approval. Brown has not indicated whether he will sign or veto the legislation.
The Assembly, by a vote of 53 to 25, and Senate, 24 to 13, approved the Foreclosure Reduction Act, which restricts the process of dual-tracked foreclosures and the Due Process Rights Act, which guarantees a single point of contact for struggling homeowners to discuss their loan. The latter also imposes civil penalties on the practice of fraudulently signing foreclosure documents without verifying their accuracy.
The Foreclosure Reduction Act bars lenders from filing notices of default, notices of sale, or conducting trustees’ sales while also considering alternatives to foreclosures like loan modifications or short sales.
“These common-sense reforms will require banks to treat California homeowners more fairly and bring more transparency and accountability to their practices in our state,” said California Attorney General Kamala Harris. “Responsible homeowners will have a better shot to keep their homes.”
The bills' passage comes the day after the release of a study authored by research and consulting firm Beacon Economics on behalf of industry groups, concluding that if the Homeowner Bill of Rights were signed into law it would ultimately harm the vast majority of California homeowners.
The bills impose stricter rules on mortgage servicers seeking to nonjudicially foreclose on homes with mortgages in default and expose mortgage servicers to substantial new legal liability, according to Beacon.
Beacon argues the bills could add to the financial burden of distressed homeowners.
“The nonjudicial foreclosure process is more efficient compared to the judicial foreclosure process, and it comes with an important caveat," the study notes. "When using nonjudicial foreclosure, lenders … cannot seek compensation for their mortgage losses out of the borrower’s other assets. If the nonjudicial route is lengthened and made more costly, many lenders may decide to pursue a judicial foreclosure ... and thus pursue remedies like deficiency judgments, ultimately costing the borrower more in the long run,” the study said.
Calling the bills “monumental,” State Sen. Darrell Steinberg, D-Sacramento, said people came together from different points of views over the course of 20 hours.
“This is how the process should work,” Steinberg said. “We achieved a middle ground. Let this be the first of a number of things we get done this week.”
Source: housingwire.com
Reported by Justin T. Hilley
Friday, June 29, 2012
Video Blog: New Bank of America Short Sale Relocation Assistance Program
Monday, June 25, 2012
Tuesday, June 19, 2012
Short Sale News: New Guideline Will Make Short Sales Easier for Military Homeowners
Under a new guideline, military members with Fannie Mae or Freddie Mac loans will now have an easier time with short sales.
Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco announced in a release Thursday that military homeowners who receive Permanent Change of Station (PCS) orders can sell their homes via short sale without having to go into default first.
“It is in everyone’s interest for the men and women serving in our armed forces to focus on the important job they are doing defending our country, rather than worry about the maintenance and leasing of a property in another jurisdiction,” said DeMarco in a release. “These Fannie Mae and Freddie Mac policy changes, in combination with related guidance last fall, should now provide military homeowners with access to the immediate and automatic full range of foreclosure alternatives.”
Last year, Fannie Mae and Freddie Mac issued guidance to servicers to have PCS orders count as a hardship for military members seeking relief.
The new policy takes an even greater step forward and will allow military members with PCS orders to sell a primary residence purchased on or before June 30, 2012 for less than the balance on their mortgages even when current on their payments. Short sales transactions typically require homeowners to be delinquent on their mortgage.
The GSEs also won’t pursue a deficiency judgment or a contribution under the new policy. Typically, borrowers contribute to closing costs and can also be pursued for the remaining balance after a short sale is completed.
Since PCS orders require military members to relocate, they can create a hardship, especially at a time when millions are underwater and can’t sell their home due to negative equity. This led many service members to be stuck with two residences or to default on their mortgage.
In response to the new guideline, Freddie Mac’s Interim Head of Single Family Business and Information Technology Paul Mullings said, “We look forward to working with our servicers on this new short sale policy. Together we can help ease the challenge of relocation for military families when Permanent Change of Station orders are received.”
The guideline was issued by the Consumer Financial Protection Bureau, Fed’s board, FDIC, National Credit Union Administration, and the OCC.
The new rule is only applicable to military homeowners with a GSE-backed mortgage; this information can be checked by visiting Fannie Mae or Freddie Mac online.
Source: DSNews.com
Reported by Carrie Bay
Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco announced in a release Thursday that military homeowners who receive Permanent Change of Station (PCS) orders can sell their homes via short sale without having to go into default first.
“It is in everyone’s interest for the men and women serving in our armed forces to focus on the important job they are doing defending our country, rather than worry about the maintenance and leasing of a property in another jurisdiction,” said DeMarco in a release. “These Fannie Mae and Freddie Mac policy changes, in combination with related guidance last fall, should now provide military homeowners with access to the immediate and automatic full range of foreclosure alternatives.”
Last year, Fannie Mae and Freddie Mac issued guidance to servicers to have PCS orders count as a hardship for military members seeking relief.
The new policy takes an even greater step forward and will allow military members with PCS orders to sell a primary residence purchased on or before June 30, 2012 for less than the balance on their mortgages even when current on their payments. Short sales transactions typically require homeowners to be delinquent on their mortgage.
The GSEs also won’t pursue a deficiency judgment or a contribution under the new policy. Typically, borrowers contribute to closing costs and can also be pursued for the remaining balance after a short sale is completed.
Since PCS orders require military members to relocate, they can create a hardship, especially at a time when millions are underwater and can’t sell their home due to negative equity. This led many service members to be stuck with two residences or to default on their mortgage.
In response to the new guideline, Freddie Mac’s Interim Head of Single Family Business and Information Technology Paul Mullings said, “We look forward to working with our servicers on this new short sale policy. Together we can help ease the challenge of relocation for military families when Permanent Change of Station orders are received.”
The guideline was issued by the Consumer Financial Protection Bureau, Fed’s board, FDIC, National Credit Union Administration, and the OCC.
The new rule is only applicable to military homeowners with a GSE-backed mortgage; this information can be checked by visiting Fannie Mae or Freddie Mac online.
Source: DSNews.com
Reported by Carrie Bay
Saturday, June 16, 2012
Just Listed! El Cajon Bank of America Pre Approved Short Sale 4BR with Pool
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If you have recently had an interest rate adjustment, are behind on mortgage payments, have been contacted by your lender about a foreclosure, or are considering selling your home to avoid a foreclosure, please contact me.
Saturday, June 9, 2012
Wednesday, May 23, 2012
Video Blog: Can Lenders come after you after a short sale
Tuesday, May 15, 2012
Saturday, May 5, 2012
Video Blog: Short Sale and HOA Dues, San Diego Short Sale
Video blog about Short Sales and HOA Dues.
Monday, April 30, 2012
Video Blog: What are the qualifications for a short sale?
Today I discusses the qualifications for a Short Sale.
Friday, April 27, 2012
New Listing! Chula Vista 3BR Home $285000
Don't pass up this opportunity! This 3 bedrooms home features newer exterior paint, updated light fixtures, beautiful wood flooring, large master bedroom, separate dining room, breakfast nook in kitchen, patio, nice size backyard. Located in a quiet neighborhood and street near downtown Chula Vista.
Thursday, April 26, 2012
Friday, April 20, 2012
Short Sale News: Short Sales Surpass Foreclosures as Banks Agree to Deals
The number of U.S. home short sales surpassed foreclosure deals for the first time as banks became more agreeable to selling houses for less than the amount owed on their mortgages, according to Lender Processing Services Inc. (LPS)
Short sales accounted for 23.9 percent of home purchases in January, the most recent month available, compared with 19.7 percent for sales of foreclosed homes, data compiled by the Jacksonville, Florida-based company show. A year
earlier, 16.3 percent of transactions were short sales and 24.9 percent involved foreclosures.
“It’s a fairly recent phenomenon that short sales have been increasing,” Jonathon Weiner, a vice president in the applied analytics division of Lender Processing Services, said in a telephone interview. “Short sales should be the dominant way of disposing of assets” in distress, he said.
Lenders are catching up to short sales after being slow to provide the staffing and incentives necessary to complete the deals, Weiner said. The transactions typically fetch a higher price for banks than sales of homes that have gone through foreclosure. In January, foreclosed homes sold for an average of 29 percent less than comparable non-distressed properties, compared with a 23 percent discount for short sales, according to Lender Processing Services. The gap has narrowed as short sales become more common, Weiner said.
Short sales accounted for 23.9 percent of home purchases in January, the most recent month available, compared with 19.7 percent for sales of foreclosed homes, data compiled by the Jacksonville, Florida-based company show. A year
earlier, 16.3 percent of transactions were short sales and 24.9 percent involved foreclosures.
“It’s a fairly recent phenomenon that short sales have been increasing,” Jonathon Weiner, a vice president in the applied analytics division of Lender Processing Services, said in a telephone interview. “Short sales should be the dominant way of disposing of assets” in distress, he said.
Lenders are catching up to short sales after being slow to provide the staffing and incentives necessary to complete the deals, Weiner said. The transactions typically fetch a higher price for banks than sales of homes that have gone through foreclosure. In January, foreclosed homes sold for an average of 29 percent less than comparable non-distressed properties, compared with a 23 percent discount for short sales, according to Lender Processing Services. The gap has narrowed as short sales become more common, Weiner said.
Distressed-Property Inventory The growing percentage of short sales, which don’t require going through the drawn-out foreclosure process, is a sign that the U.S. is making progress in working through its inventory of distressed properties, Weiner said. The increase in short sales also may help values find a floor quicker.
“Our baseline scenario is that home prices will hit a bottom at the end of this year,” he said.
The Federal Housing Finance Agency ordered loan servicers to respond to all short-sale offers within 30 days, and approve or reject them within 60 days, in an effort to expedite a process that can take months longer than conventional home sales, the agency said in a statement today.
The FHFA, which oversees mortgage companies Fannie Mae andFreddie Mac, wants to improve the short-sale process “to prevent foreclosure, keep homes occupied and help maintain stable communities,” Edward J. DeMarco, the agency’s acting director, said in the statement. Freddie Mac and Fannie Mae completed 125,456 short sales last year, the most recent period for which figures are available.
Cash Incentives Banks including Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM)last year began giving cash inducements as high as $35,000 to selected homeowners who agreed to a short sale as a way of speeding up the process.
Bank of America Corp. paid $19.9 million in the first two months of this year for 22,534 homeowners to relocate after short sales and deeds in lieu of foreclosure, when borrowers agree to return the property deed in exchange for debt forgiveness, the Charlotte, North Carolina-based company said March 16. Its short sales rose 31 percent in January and February from a year earlier.
Banks have struggled to reduce losses from delinquent mortgages. Almost 4.4 percent of homes with loans had received a notice of foreclosure sale at the end of 2011, the 11th consecutive quarter the rate has been higher than 4 percent, according to the Mortgage Bankers Association.
Falling Foreclosures Foreclosure filings, including notices of defaults and bank repossessions, fell 16 percent in the first quarter from a year earlier after lenders under legal scrutiny slowed actions against delinquent homeowners, RealtyTrac Inc. reported April 12.
Lender Processing Services, a 2008 spinoff from title-insurance company Fidelity National Financial Inc. (FNF), counts short sales by tallying mortgage and property transfer documents filed with county recorders, Weiner said.
Other reports haven’t shown the same magnitude of short-sale growth. The National Association of Realtors reported that 13 percent of transactions were short sales and 22 percent were foreclosures in January. In February, short sales increased to 14 percent and foreclosure-related transactions declined to 20 percent, the group said March 21.
Showing an ‘Uptick’ The Realtors collect their data from transactions on the Multiple Listing Service, a database of homes on the market, and a survey of about 3,000 members, said Walter Molony, a spokesman for the association.
“The February data is showing a bit of an uptick,” he said in an e-mail from Washington. “We’re hearing the process is going a bit more smoothly now, so that comes as no surprise.”
The U.S. Department of Housing and Urban Development reported a preliminary 19,600 short sales in January, compared with the Lender Processing Services tally of 48,721. An April 6 HUD report showed that the number of short sales rose 4.3 percent from a year earlier as the number of real estate owned, or REO, sales -- another name for foreclosure sales -- fell 39 percent.
Before agreeing to accept a loss on a short sale, lenders usually require homeowners to show evidence of hardship, such as inability to afford their mortgage payments or the need to relocate for a job, said Weiner of Lender Processing Services.
California, Arizona Short sales outnumbered foreclosures in states with some of the largest shares of homes facing foreclosure, such as Arizona,California, Florida, Nevada and New Jersey, Lender Processing Services reported.
In New Jersey, short sales have exceeded REO deals every month since June 2010. In January, short sales accounted for more than 15 percent of the 3,033 New Jersey homes sold, compared with 3.9 percent for foreclosures. It took 966 days for banks to repossess a home in New Jersey, second only to New York, according to RealtyTrac. Both states require judicial hearings for foreclosure approval.
In New York, where it takes 1,056 days to repossess a home, 7.9 percent of purchases in January were short sales while 2.3 percent involved bank-owned properties.
“In general, markets where larger incentives are provided usually have extended foreclosure timelines, such as Florida,”Tom Goyda, a spokesman for Wells Fargo, said in an e-mail from Ellisville, Missouri. Wells Fargo, which doesn’t disclose its short-sale totals, offers homeowners as much as $20,000 to relocate, he said.
Florida Short Sales In Florida, the number of short sales has exceeded foreclosures since July, according to Lender Processing Services. That’s about nine months after banks imposed a moratorium on home seizures amid allegations they used improper documentation and forged paperwork to claim title to properties with delinquent mortgages. The five largest loan servicers, including Wells Fargo, Bank of America and JPMorgan, agreed in February to a $25 billion settlement of the
allegations.
In California, which has the largest number of homes facing foreclosure, short sales have outnumbered sales of bank-owned homes since August. In January, 37.2 percent of homes sold in the state were short sales compared with 25.8
percent for foreclosures, according to Lender Processing Services.
Banks have sped up the short-sale approval process, requiring less paperwork to prove hardship, especially for homeowners who haven’t made a mortgage payment for months on their primary residence, said Ethan Gregory, a broker with First Coast Realty Associates in Jacksonville, Florida. Banks have offered his clients as much as $13,000 to relocate, an incentive that gets the homeowners engaged in selling the home, he said.
Banks “embraced it before the settlement, but the settlement pushed them to do more streamlining,” said Gregory, whose firm handles about 50 short sales a year. “They understand it’s really the best exit for them.”
Source: bloomberg.com
Reported by John Gittelsohn
“Our baseline scenario is that home prices will hit a bottom at the end of this year,” he said.
The Federal Housing Finance Agency ordered loan servicers to respond to all short-sale offers within 30 days, and approve or reject them within 60 days, in an effort to expedite a process that can take months longer than conventional home sales, the agency said in a statement today.
The FHFA, which oversees mortgage companies Fannie Mae andFreddie Mac, wants to improve the short-sale process “to prevent foreclosure, keep homes occupied and help maintain stable communities,” Edward J. DeMarco, the agency’s acting director, said in the statement. Freddie Mac and Fannie Mae completed 125,456 short sales last year, the most recent period for which figures are available.
Cash Incentives Banks including Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM)last year began giving cash inducements as high as $35,000 to selected homeowners who agreed to a short sale as a way of speeding up the process.
Bank of America Corp. paid $19.9 million in the first two months of this year for 22,534 homeowners to relocate after short sales and deeds in lieu of foreclosure, when borrowers agree to return the property deed in exchange for debt forgiveness, the Charlotte, North Carolina-based company said March 16. Its short sales rose 31 percent in January and February from a year earlier.
Banks have struggled to reduce losses from delinquent mortgages. Almost 4.4 percent of homes with loans had received a notice of foreclosure sale at the end of 2011, the 11th consecutive quarter the rate has been higher than 4 percent, according to the Mortgage Bankers Association.
Falling Foreclosures Foreclosure filings, including notices of defaults and bank repossessions, fell 16 percent in the first quarter from a year earlier after lenders under legal scrutiny slowed actions against delinquent homeowners, RealtyTrac Inc. reported April 12.
Lender Processing Services, a 2008 spinoff from title-insurance company Fidelity National Financial Inc. (FNF), counts short sales by tallying mortgage and property transfer documents filed with county recorders, Weiner said.
Other reports haven’t shown the same magnitude of short-sale growth. The National Association of Realtors reported that 13 percent of transactions were short sales and 22 percent were foreclosures in January. In February, short sales increased to 14 percent and foreclosure-related transactions declined to 20 percent, the group said March 21.
Showing an ‘Uptick’ The Realtors collect their data from transactions on the Multiple Listing Service, a database of homes on the market, and a survey of about 3,000 members, said Walter Molony, a spokesman for the association.
“The February data is showing a bit of an uptick,” he said in an e-mail from Washington. “We’re hearing the process is going a bit more smoothly now, so that comes as no surprise.”
The U.S. Department of Housing and Urban Development reported a preliminary 19,600 short sales in January, compared with the Lender Processing Services tally of 48,721. An April 6 HUD report showed that the number of short sales rose 4.3 percent from a year earlier as the number of real estate owned, or REO, sales -- another name for foreclosure sales -- fell 39 percent.
Before agreeing to accept a loss on a short sale, lenders usually require homeowners to show evidence of hardship, such as inability to afford their mortgage payments or the need to relocate for a job, said Weiner of Lender Processing Services.
California, Arizona Short sales outnumbered foreclosures in states with some of the largest shares of homes facing foreclosure, such as Arizona,California, Florida, Nevada and New Jersey, Lender Processing Services reported.
In New Jersey, short sales have exceeded REO deals every month since June 2010. In January, short sales accounted for more than 15 percent of the 3,033 New Jersey homes sold, compared with 3.9 percent for foreclosures. It took 966 days for banks to repossess a home in New Jersey, second only to New York, according to RealtyTrac. Both states require judicial hearings for foreclosure approval.
In New York, where it takes 1,056 days to repossess a home, 7.9 percent of purchases in January were short sales while 2.3 percent involved bank-owned properties.
“In general, markets where larger incentives are provided usually have extended foreclosure timelines, such as Florida,”Tom Goyda, a spokesman for Wells Fargo, said in an e-mail from Ellisville, Missouri. Wells Fargo, which doesn’t disclose its short-sale totals, offers homeowners as much as $20,000 to relocate, he said.
Florida Short Sales In Florida, the number of short sales has exceeded foreclosures since July, according to Lender Processing Services. That’s about nine months after banks imposed a moratorium on home seizures amid allegations they used improper documentation and forged paperwork to claim title to properties with delinquent mortgages. The five largest loan servicers, including Wells Fargo, Bank of America and JPMorgan, agreed in February to a $25 billion settlement of the
allegations.
In California, which has the largest number of homes facing foreclosure, short sales have outnumbered sales of bank-owned homes since August. In January, 37.2 percent of homes sold in the state were short sales compared with 25.8
percent for foreclosures, according to Lender Processing Services.
Banks have sped up the short-sale approval process, requiring less paperwork to prove hardship, especially for homeowners who haven’t made a mortgage payment for months on their primary residence, said Ethan Gregory, a broker with First Coast Realty Associates in Jacksonville, Florida. Banks have offered his clients as much as $13,000 to relocate, an incentive that gets the homeowners engaged in selling the home, he said.
Banks “embraced it before the settlement, but the settlement pushed them to do more streamlining,” said Gregory, whose firm handles about 50 short sales a year. “They understand it’s really the best exit for them.”
Source: bloomberg.com
Reported by John Gittelsohn
Thursday, April 19, 2012
Short Sale News: Fannie and Freddie Set Timeline Requirements for Short Sales
Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.
The GSEs issued new guidelines Tuesday that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these
pre-foreclosure sales.
Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes
occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).
Addressing real estate practitioners’ No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to
establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions.
The GSEs’ new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies’ traditional short sale programs or a completed Borrower Response Package (BRP)
requesting short sale consideration, whether it’s through the federal government’s Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.
f more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the BRP or offer was received. According to the GSEs, this 30-day add-on will provide some leeway for servicers who may need more time to obtain a broker price opinion (BPO) or a private mortgage insurer’s approval for a short sale. All decisions must be made within 60 days.
In the event a servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower’s response. The GSEs plan to use the new short sale timelines to evaluate servicer compliance with the Servicing Alignment Initiative.
Edward DeMarco, acting director of the FHFA, says the GSEs new borrower communication and timeline requirements for short sales “set minimum standards and provide clear expectations regarding these important foreclosure
alternatives." GSE servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements
sooner.“ I applaud Fannie and Freddie for finally coming out with real guidance with real world timelines for their servicers,” commented Anthony Lamacchia, broker/owner of McGeough Lamacchia Realty Inc., which specializes in short sales. “There is no question that this will help short sales and the market as a whole.”
Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae’s short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.
Source: DSNews.com
Reported by Carrie Bay
The GSEs issued new guidelines Tuesday that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these
pre-foreclosure sales.
Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes
occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).
Addressing real estate practitioners’ No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to
establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions.
The GSEs’ new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies’ traditional short sale programs or a completed Borrower Response Package (BRP)
requesting short sale consideration, whether it’s through the federal government’s Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.
f more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the BRP or offer was received. According to the GSEs, this 30-day add-on will provide some leeway for servicers who may need more time to obtain a broker price opinion (BPO) or a private mortgage insurer’s approval for a short sale. All decisions must be made within 60 days.
In the event a servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower’s response. The GSEs plan to use the new short sale timelines to evaluate servicer compliance with the Servicing Alignment Initiative.
Edward DeMarco, acting director of the FHFA, says the GSEs new borrower communication and timeline requirements for short sales “set minimum standards and provide clear expectations regarding these important foreclosure
alternatives." GSE servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements
sooner.“ I applaud Fannie and Freddie for finally coming out with real guidance with real world timelines for their servicers,” commented Anthony Lamacchia, broker/owner of McGeough Lamacchia Realty Inc., which specializes in short sales. “There is no question that this will help short sales and the market as a whole.”
Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae’s short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.
Source: DSNews.com
Reported by Carrie Bay
Thursday, March 1, 2012
Welcome to San Diego Real Estate
I would like to welcome you to our blog. I say our blog because I plan to have many people who contribute to the blog as well as feedback from our readers. My name is Mark Kunce and I have been involved in Real Estate in one way or another most of my life . I am currently an agent with Keller Williams San Diego Metro in Hillcrest. Our offices are located just above the Landmark Theatres in the Uptown Complex. Stop by and see us sometime. I have spent the past four years mainly dealing with distressed properties; bank or investor owned properties known as REOs (Real Estate Owned), short sales, investment properties and investors. I am also a real estate investor.
Many people are experiencing personal negative impact as a result of an economy in turmoil. Many people look at this as a time of hardship and despair. However, I see it as one of the greatest opportunities in Real Estate investment there has ever been. It is a time when through short sale or foreclosure many will find themselves in a rebuilding period hopefully with the opportunity to start again, to start over in a real estate environment which makes more since than it has for many years. It will take time and effort but over the next few years there will be many opportunities emerge for everyone. Real Estate investors over the next three to five years are going to be able to take advantage of these opportunities like no time in the past 75 years.
I believe every real estate transaction should be thought of and analyzed as an investment. Whether it is a loft, condo, single family home, multiple unit complex, a warehouse-whatever it should be considered an investment. I often have people say to me “But, Mark, this is our home. We live here that’s different.” No it is not! It is property, real property, real estate. It is an investment and you have to treat it as an investment. We will discuss this more in depth next time as well as why the next three to five years are going to be the best time in our lifetime to invest in Real Estate. See you soon.
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| Landmark Theatres |
Many people are experiencing personal negative impact as a result of an economy in turmoil. Many people look at this as a time of hardship and despair. However, I see it as one of the greatest opportunities in Real Estate investment there has ever been. It is a time when through short sale or foreclosure many will find themselves in a rebuilding period hopefully with the opportunity to start again, to start over in a real estate environment which makes more since than it has for many years. It will take time and effort but over the next few years there will be many opportunities emerge for everyone. Real Estate investors over the next three to five years are going to be able to take advantage of these opportunities like no time in the past 75 years.
I believe every real estate transaction should be thought of and analyzed as an investment. Whether it is a loft, condo, single family home, multiple unit complex, a warehouse-whatever it should be considered an investment. I often have people say to me “But, Mark, this is our home. We live here that’s different.” No it is not! It is property, real property, real estate. It is an investment and you have to treat it as an investment. We will discuss this more in depth next time as well as why the next three to five years are going to be the best time in our lifetime to invest in Real Estate. See you soon.
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| Keller Williams San Diego Metro Office |
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