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Report: Short Sales Surpass Foreclosure Sales

April 20, 2012 By Foreclosure.com

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 Michelle Lenahan

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 [...]

Filed Under: Foreclosure, News Tagged With: avoid bankruptcy, avoid foreclosure, bankruptcy and foreclosure, Bankruptcy Attorney, bankruptcy lawer, Court, file bankruptcy, forceclosure help, stop foreclosure

The Foreclosure Report – March 2012

April 13, 2012 By Mike Daniel

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 Mike Daniel

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 Foreclosure.com

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.

Filed Under: Foreclosure, News Tagged With: avoid bankruptcy, bankruptcy and foreclosure, Bankruptcy Attorney, bankruptcy lawer, Court, file bankruptcy, stop foreclosure

Which Line is for the $2,000 Payment?

March 20, 2012 By Michelle Lenahan

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 [...]

Refinance Mortgage Underwater 2012 With HARP

March 19, 2012 By Foreclosure.com

The revamped Home Affordable Refinance Program (HARP) goes into effect today (March 19, 2012), which is designed to help homeowners in the United States refinance their “underwater” mortgages. The original initiative was introduced more than three years ago; however, it was ineffective because it only assisted homeowners with a 125 percent loan-to-value limit.

And with the collective real estate market and the value of most individual properties worth far less than that now when compared to five years ago, HARP was essentially designed to fail right out of the gate. Sure, it might have taken longer than it probably should to fix, but at least now HARP will likely have its intended effect and reward those who have continued to meet their monthly mortgage obligations despite the drastic downturn.

Better late than never.

Key HARP changes include, but are not limited to:

No “underwater” limits and/or ratios
No appraisals and/or underwriting
Eliminated or modified refinance fees
Application deadline extended until Dec. 31, 2012

So how do you find out if you are eligible to participate in HARP?

1. Your home loan must either owned or guaranteed by Fannie Mae or Freddie Mac. To find out if it is check these two websites:

Fannie Mae: www.fanniemae.com/loanlookup/
Freddie Mac: ww3.freddiemac.com/corporate/

2. Your home loan must have been originated on or before May 31, 2009.

3. You must not have made a late payment within the past six months.

4. You must not have had more than one late payment within the past 12 months.

5. Your home loan must fall under the current conforming loan limits (http://themortgagereports.com/loan-limits/)

If all else fails the best alternative plan of attack is to contact your mortgage lender, which should be able to provide you with additional assistance and direction.

Filed Under: Foreclosure, News Tagged With: avoid bankruptcy, bankruptcy and foreclosure, Bankruptcy Attorney, bankruptcy lawer, Court, file bankruptcy

Foreclosure Robo-Signing ‘Whistle-Blower’ To Pocket $18 Million

March 16, 2012 By Foreclosure.com

Lynn Szymoniak went from possibly losing her Palm Beach Gardens, Fla., home to foreclosure in 2008 to being awarded $18 million in 2012.

Talk about turning the tables.

That’s apparently Szymoniak’s massive reward for highlighting a major flaw in the foreclosure process that is now known as the “robo-signing” scandal that rocked the financial industry in 2011. Essentially, Szymoniak proved that major banks were rubber stamping certain foreclosure documents to expedite the process rather than giving them the mandatory due diligence and human attention.

In the wake of the discovery, major lending institutions nationwide halted their foreclosure operations to double-check their procedures. It was quickly determined that “abusive” and “fraudulent” practices were significantly more widespread and common, leading to a federal investigation and ultimately a landmark $25 billion settlement with five major banks just last month.

Szymoniak, a former insurance-fraud investigator, is now set to take home $18 million of a $228 million pot that was carved out of the settlement that will go toward resolving claims with other “whistle-blower” types. In fact, according to WashingtonPost.com, a group of six whistle-blowers, including Szymoniak, account for a $46.5 million haul out of that $228 million whistle-blower pot.

The remaining balance of the $25 billion settlement will be put toward:

compensating foreclosure victims of the “robo-signing” scandal
helping distressed homeowners avoid foreclosure
offering “underwater” homeowners principal loan modifications

For more on the 2012 national foreclosure settlement agreement click here.

Filed Under: Foreclosure, News Tagged With: avoid bankruptcy, bankruptcy and foreclosure, Bankruptcy Attorney, bankruptcy lawer, Court, file bankruptcy

The Foreclosure Report – February 2012

March 13, 2012 By Mike Daniel

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 Mike Daniel

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 [...]