Bank owned
200 Banks at Risk to Fail in 2012
Sunday, May 13th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
According to a recent report released by Trepp, there are more than 200 banks earmarked for likely failure in 2012. Three have already failed. Georgia has the largest concentration of those identified (41), followed by Florida (32), Illinois (24), and Minnesota (12).
The stats represent a slowdown from this same time last year, with 22 at the end of April 2012, compared to 39 at the end of April 2011. Why the slowdown? Struggling banks are being given more time to course correct, raise capital and improve performance. But, that could mean closures filtering over into next year. Bad commercial real estate loans account for over 70% of non-performing loans at the failing banks, followed closely by residential real estate loans with 25% of the total.
For the full article, click here.
Anger Taken Out on Houses, Neighborhoods Lose
Saturday, May 5th, 2012 | Bank owned, Foreclosures | No Comments
Unfortunately, this is something that’s happening all too frequently. Homeowners who are in foreclosure and are being forced from their homes are not going quietly. Just the opposite – they are ransacking the place before they o.
Cabinets are being ripped out, light fixtures removed, appliances taken. Anger takes over and the homeowners don’t want to leave anything behind for the banks. The problem is this syndrome just succeeds in dragging down property values in a neighborhood even more than a standard foreclosure would. According to RealtyTrac, one in every 336 houses in Florida alone is in foreclosure. To give you a sense of the burden this places on neighborhoods, according to ABC, we as taxpayers will spend $40 million alone in cutting the lawns of foreclosed homes. No one wins.
Click here to read more.
Wells Fargo Employees Facing Pressure to Sign
Saturday, May 5th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
Employees at the Wells Fargo office in Charlotte, NC, are citing increased pressure to met a daily quota of signed, sworn foreclosure documents. According to several employees who wished to remain anonymous because of feared repercussions to their jobs, these “Vice Presidents of Loan Documentation,” as the entry-level processors are titled, are being pressured to complete up to 11 foreclosures each day.
At that rate, things are being overlooked or missed, which could have serious implications for the homeowners facing foreclosure. The penalty of falling short of the quota? First a verbal warning, followed by a written one. If a second written warning is received, they lose a paycheck. Despite sweeping changes enacted after the robo-signing scandal, mistakes are likely still getting through. This gives little assurance that their files are being carefully examined before being sent to foreclosure.
Read the complete article here.
2012 Could Be a Record Year for Short Sales
Sunday, April 29th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Real estate short sales, Short Sales | No Comments
Short sales are on the rise. Compared to a year ago, the number of short sales being done increased 33%, according to RealtyTrac. In fact, short sales beat out REO sales in 12 states. In all, 32 states saw an increase in pre-foreclosure sales, typically short sales.
There are also signs that lenders are more willing to accept aggressively priced short sales, as evidenced by the decline in pre-foreclosure home prices. In January, a short sale sold at an average 21% discount, as compared to the price of a non-foreclosure home sale. While the average time it took to complete a short sale actually tripled since 2007 when the average was 113 days, recent efforts have been made to streamline the process. Beginning in June, the GSEs will require servicers to reach a short sale decision within 30 days of receiving an offer.
For the complete article, click here.
Which Lenders are the Fastest for Short Sales?
Sunday, April 29th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Short Sales | No Comments
RealtyTrac recently put together a list outlining which lenders/servicers move through the short sale process the fastest and the cheapest. The frontrunners? Freddie Mac, Fannie Mae and FHA have the shortest timelines with 193 days, followed by Ally Financial at 321 days and PNC Financial at 353 days.
The short sale timeline being used as a measure starts as soon as the property begins the foreclosure process to the date it is sold as a pre-foreclosure. The new guidelines instituted by the GSEs, which call for a decision within 30 days, will surely change the game. BOA followed quickly by implementing a 20-day short sale decision timeline. As far as pricing goes, the GSEs again lead the way, selling homes for the least amount, averaging just over $128,000.
Read the complete article here.
Foreclosures Bring Profits for Many Market Sectors
Sunday, April 22nd, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
You’ve heard me say it before – there’s big money to be made in this very difficult housing market. Foreclosures are aplenty, with an equally high number of people ready to buy or rent the property on the other side, once you figure out your exit strategy. My home town of Cleveland is one of those markets where the opportunity is ripe. Home prices are low, but rental rates remain high. In fact, investors can quickly recoup their money, often in well under a year.
The biggest challenge can be making sure you have enough investment capital to fund your foreclosure purchases (which is something I can help you with, too). In addition to helping build the profits for investors, buying and fixing up foreclosures boost many different segments including cleanup and repair of the properties, as well as maintenance and property management.
To read more, click here.
Short Sale Timeline Requirements Set By GSEs
Sunday, April 22nd, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
This is big news for real estate investors, specifically anyone who does short sales. As of June 15, real estate agents working on short sale offers with loans backed by Freddie Mac or Fannie Mae should expect to receive a decision on the short sale within 15-30 days. This is part of the overall process to incorporate more transparency in the short sale process and speed things up.
If more than 30 days will be necessary, the servicers must provide weekly status updates, and reach a decision within 60 days from the offer. In turn, the borrower has some timelines to contend with, too. If the servicer provides a counteroffer, they will need to respond within five days.
Read the complete article here.
Foreclosure Starts Down, Loan Performance Up
Sunday, April 15th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
According to a report released by LPS Applied Analytics, loan performance was up and foreclosure starts down compared to the previous month. Despite this, foreclosure rates are near historic high rates but delinquency rates are at the lowest point since August 2008.
Foreclosure starts are down over 15%, with foreclosure inventory at 4%. That may seem low, but compare it to December 2005, when the rate was only .5%. “The national pipeline ratios – 90-plus delinquencies and foreclosures divided by the 6-month average of foreclosure sales – continued to decline.” These rations are higher in the Northeast, specifically New York and New Jersey. Foreclosure sales dropped in both judicial and non-judicial states. The average foreclosure pipeline in judicial states is 84 months, while New York is 846 months and New Jersey 772 months. “Cure rates for all types of loans, including one-month delinquencies to foreclosure initiated loans, were higher. Additionally, repeat foreclosures decreased 8%on a month-over-month basis.”
To read more, click here.
Single Family Rental Investments Thrive
Sunday, April 15th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
If you’re a real estate investor in northeast Ohio, then this is great news for you. If you’re in a market in Florida or the Midwest, the news is equally as good. According to CoreLogic’s MarketPulse report, these markets yield the highest single-family rental cap rates.
In the last five years, 3 million former homeowners have been turned into renters due to foreclosures. Right now, single-family rental investing is a $3 trillion market, with single-family rental units accounting for 52% of the residential rental market. So where are the most attractive markets for single-family rental investing? West Palm Beach, FL tops the list with 12.4%, followed closely by Cleveland with 12.3%, Ft. Lauderdale at 12%, Chicago with 11.6%, and Las Vegas with 11.4%. During the recession, single-family rents actually increased during the recession, while home values still decreased, making a perfect situation for investors.
For the complete article, click here.
FHFA Director Supports HAMP Principal Reductions
Sunday, April 15th, 2012 | Bank owned, Foreclosures, Real Estate Investing | No Comments
Acting Director of the Federal Housing Finance Agency Edward DeMarco released preliminary findings from an FHFA analysis earlier this week, and stated, “principal reductions done under large incentive payments from the Treasury Department would save Fannie Mae and Freddie Mac enough money to begin an umbrella write-down program,” – up to $1.7 billion.
Despite this, DeMarco stressed that strategic defaults could quickly erase any benefit. When looking at 700,000 borrowers, it’s predicted that Freddie and Fannie could lose $63.7 billion if the loans aren’t modified. “With the tripled incentive payments to reduce principal under HAMP, the losses would be $53.7 billion if some principal is forgiven.” Reducing the principal would save the GSE’s $1.7 billion, at a cost of $2.1 billion to taxpayers for the program.
Read the complete article here.
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