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.
Wednesday, July 11, 2012
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
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