The Foreclosure Report – April 2012
May 14, 2012 By
Foreclosure Activity Declines Hurting Investors April 2012 Foreclosure Starts declined across our coverage area wiping out the small gains in new foreclosure filings last month. In California, Notice of Default filings are down 69.8 percent from the peak in March 2009, and 15.8 percent from April 2011. Notice of Trustee Sale Filings, the start of [...]
Report: Short Sales Surpass Foreclosure Sales
April 20, 2012 By
More and more lenders are apparently looking to avoid the foreclosure process, opting instead to sell the distressed assets for less than their original loan amounts.
That’s the latest, at least, from Lender Processing Services Inc. (LPS), which revealed short sales accounted for nearly one-quarter (23.9 percent) of home purchases in Jan. 2012, which is more than the monthly foreclosure tally (19.7 percent). All told, based on these statistics, short sales and foreclosure sales accounted for more than 40 percent of all real estate purchases to start the New Year.
There are many reasons for the uptick, most notably the massive costs that lenders incur because of foreclosures, particularly at such a high volume. In fact, some lenders (Wells Fargo and JPMorgan Chase & Co.) are so eager to avoid the foreclosure process that they are offering distressed homeowners as much as $35,000 to accelerate their departures. In addition, streamlined short sale procedures have been introduced that compel loan servicers to respond to all short sale offers in 30 days or less.
So if a bank is willing to reduce the price on a desirable home, incentivize the homeowner who can no longer afford his or mortgage to relocate and get a “non-performing” asset of its books as soon as possible, it appears that everyone — all things considered — comes out a winner. Even neighborhoods, which have been scarred with the black marks of foreclosure and its deleterious effects, and in turn their collective property values, appear to benefit from short sales.
But you be the judge: Check out available short sale homes for sale in your neighborhood today at Foreclosure.com. Yes, we have short sales — along with many other distressed property listings — available on our site, many of which are 30 to 50 percent less than market value.
The housing crash was no accident; maybe it’s time to start assigning blame!
April 18, 2012 By
If you have ever been in an auto accident, you know that insurance adjusters from both sides examine the accident to determine the comparative negligence. If the fault was fifty percent yours, you are responsible for 50 percent of the damage. Having tracked hundreds of thousands of foreclosures, we have yet to see a single [...]
The Foreclosure Report – March 2012
April 13, 2012 By
For the second month in a row we’ve seen a dramatic drop in the number of properties sold at foreclosure, or “trustee sale”, auctions. Foreclosure sales in California are down 16.7 percent from February to March 2012 and down 53.1 percent from March a year ago. A total of 86,487 sales were scheduled to occur [...]
2012: The Year of the Short Sale?
April 10, 2012 By
As we mentioned in the February Foreclosure Report, government intervention into the foreclosure crisis has slowed the rate at which foreclosures go to trustee sale. As a result, there are fewer houses to buy, either at the auction, or from the banks as REOs. In fact, fewer auction properties went back to the bank in [...]
Bank Of America Offers Select Underwater Homeowners Mortgage To Lease Program
March 22, 2012 By
Bank of America (BofA), which is among the top five largest mortgage lenders in the United States, today announced an innovative test pilot program that will attempt to help about 1,000 distressed homeowners not only avoid foreclosure, but remain in their homes indefinitely.
But, of course, there is a catch.
The Mortgage to Lease Program will offer select underwater borrowers — those who can no longer afford to pay the mortgages on homes that have lost significant market value — in Arizona, Nevada and New York the option to transfer their property title back to the bank and have their debt/mortgage obligations wiped clean. In exchange, the borrowers will agree to remain in their homes as renters, paying BofA a monthly fee that is less than the mortgage payment.
It’s a forward-thinking initiative that BofA executives, according to a Reuters report, hope “evolves from a pilot into a more broadly based program, we also see potential benefits from helping to stabilize housing prices in the surrounding community.”
So who is, and who isn’t, eligible for the BofA Mortgage to Lease Program? MSN Money breaks it down to borrowers who:
- Have a mortgage owned by BofA (no securitized loans).
- Are at least two months in arrears and at significant risk of foreclosure.
- Live in the home (investment properties aren’t eligible).
- Have a first mortgage only (second mortgages or lines of credit aren’t allowed).
- Live in New York, Nevada or Arizona.
- Can afford the proposed rents.
- Have tried — or have not responded to efforts to get them to try — alternatives like loan modifications, short sales or deeds in lieu of foreclosure.
It’s important to point out that BofA apparently does not intend to become long-term landlords. After all, it’s in the money-lending — not house-renting — business. Therefore, the homes in the program are expected to be marketed and sold to investors in the near future, who will no doubt jump at the opportunity to pick up an investment property that comes with a steady monthly revenue stream.
At this time, distressed BofA homeowners cannot apply for the Mortgage to Lease program — it will be offered to them in the areas, and based on the criteria, mentioned above.
Which Line is for the $2,000 Payment?
March 20, 2012 By
In February, US Attorney General Eric Holder announced the unprecedented $25 billion national mortgage settlement with the five largest banks in the US. One of the provisions of the settlement is a $2,000 payment to homeowners who lost their homes to foreclosure. A month later, people are asking, “When am I going to get my [...]
The Foreclosure Report – February 2012
March 13, 2012 By
Foreclosure Activity Continues to Fall The “foreclosure wave” many predicted at the end of last year is beginning to look more like a drought, as foreclosure sales dropped significantly in February. Although sales to 3rd Parties, typically investors, were down month-over-month, as a percentage of all sales 3rd Parties purchased a record 37.6 percent of [...]
Head to Head: Home Price Index vs. Housing Affordability Index
March 9, 2012 By
Compare these two headlines: Case-Shiller Home Price Index Ends 2011 With New Lows (February 28, 2012) * Home Affordability Index Hits Record High (March 7, 2011) ** Throughout the housing crisis, the headlines have focused on the precipitous fall of prices and the resulting plight of homeowners who are underwater. There is no doubt that [...]
California to Enforce Overlooked Property Tax Law as a Source of Revenue
February 28, 2012 By
One of our real estate predictions will soon have an impact on your tax return. At the end of 2010, Sean O’Toole predicted that states would to look to property taxes to make up budget shortfalls. During 2011, the California Franchise Tax Board (FTB) proposed a change to Schedule CA to require the information necessary [...]
