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Foreclosed But Back to Homeownership
Sunday, May 20th, 2012 | Bank owned, Foreclosures, Real Estate Investing, Short Sales | No Comments
More and more, Americans aren’t letting a foreclosure, bankruptcy or short sale prevent them from becoming homeowners again, and quickly. In year’s past, the only option seemed to be renting. But today, as rental prices are on the rise, they want to take advantage of low home prices.
So where is the help coming from for these Americans? The government, in the form of FHA loans. “The number of FHA-insured home loans has soared in recent years as subprime loans have disappeared and fewer Americans have qualified for conventional mortgages backed by Fannie Mae and Freddie Mac, which were rescued in 2008 by the U.S. government after loan losses.” Even Ben Bernanke, Chairman of the Federal Reserve, agreed that banks have become so restrictive that many homebuyers are being squeezed out of the market. By the close of 2011, FHA-backed loans accounted for 30% of loans for home purchases. Critics argue that the FHA loans are putting people right back at risk for default, possibly leading their second chance to yet another loss.
For the full article, click here.
Mortgage Delinquencies at Lowest Since 2008
Sunday, May 20th, 2012 | Bank owned, Foreclosures, Pre-foreclosure | No Comments
Mortgage delinquencies have hit their lowest point in 4 years, according to the Mortgage Bankers Association, down from 7.58% to 7.4%. This includes mortgage payments that are at least one payment behind, but does not include loans already somewhere in the foreclosure process.
The peak number was over 10%, during the height of the housing crisis. This ease is reflected in mortgages that are one payment behind, as well as those that are more than 90 days behind, which is considered seriously delinquent.
Read the full article here.
Increase in Short Sales Helps Lower Foreclosures
Sunday, May 20th, 2012 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Short Sales | No Comments
For the first time since 2007, foreclosure filings were at their lowest for a month in April 2012. This includes default notices, auctions and bank repossessions. Any increases in foreclosure activity were masked by the decline in the three large, hardest hit states of California, Nevada and Arizona.
They were more efficient in processing their foreclosures, therefore have fewer waiting in the wings. The increase in short sales is also helping stem the tide of foreclosure filings. According to Brandon Moore, CEO of RealtyTrac, “Our preliminary first quarter sales data shows that pre-foreclosure sales – typically short sales – are on pace to outnumber sales of bank-owned properties during the quarter in California, Arizona and 10 other states.” Despite this, 26 states still saw an increase in foreclosure starts, while REO activity dropped in 37 states.
Read the full article here.
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.
Fannie Mae Avoids Q1 Bailout
Sunday, May 13th, 2012 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Taxpayers are getting a little breather as Fannie Mae turned a profit at $3.1 billion, passing the $2.8 billion required Treasury payment. This is the first time since going into conservatorship in 2008 that the GSE hasn’t required a draw.
Fannie’s CFO, Susan McFarland, is anticipating continued strong performance results. “Our credit performance is headed in the right direction with significant improvement since 2009, and we expect that the reserves we have built to cover future credit losses on the pre-2009 legacy book of business have reached their peak.” Fannie lowered their reserve for credit losses by $2.3 billion, and the rate of serious delinquencies continues to drop. As for new mortgages? Tighter restrictions such as a 763 FICO score and loan-to-value ratio of 70% ups the screening process.
Read the full article 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.
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