I know that bank foreclosures are not the easiest thing for the average person to find great deals on. You have to know someone in the business, rely on an expensive Foreclosure Company on line that usually has old info, or scouring the newspaper every day.
I also know you are looking for a great deal in as much ease as possible, that’s a given, so why not take advantage of my free report that lists all the bank foreclosures, pre-foreclosures or short sales in any area that you may want to look in. Fill out this short form and give me a couple of hours and your list is on its way. This will save you tons of research and tons of gas trying to find them on your own.
Remember this is no cost to you, no obligation, just a simple free report that keeps you coming back to my page. Thanks so much!
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Fielding a Lowball Purchase Offer on Your Home
Consider before you ignore or outright refuse a very low purchase offer for your home. A counteroffer and negotiation could turn that low purchase offer into a sale. Read
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Keep Your Home Sale from Falling Apart
After finding a buyer, all you have to do to make it to closing is to avoid these five traps. Read
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6 Reasons to Reduce Your Home Price
While you’d like to get the best price for your home, consider our six reasons to reduce your home price.
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6 Tips for Choosing the Best Offer for Your Home
Have a plan for reviewing purchase offers so you don’t let the best slip through your fingers. Read
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7 Tips for a Profitable Home Closing
Be sure you’re walking away with all the money you’re entitled to from the sale of your home. Read
Visit houselogic.com for more articles like this.
Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
Are loan mods the solution….well, no.
Not if you consider the fact that its widely believed that up to 75% of all loan mods will re-default.
Agents who are speaking with potential short sale sellers, what is one of the top reasons sellers give for not listing their home?
“We want to try a loan modification”
Share this article with your howeowners. Let them know that statistically very few mortgage loan modifications actually work beyond the initial period.
What homeowners don’t understand is that they will often be required to forfeit many ‘rights’ they may have. For example, we have seen loan modifications that literally make it so if the homeowner misses (or is late)
on ONE payment during the trail mod their home is rushed into foreclosure, don’t stop at GO. Additionally, its a rare mod indeed that actually cancels out the negative equity. In other words, the mod may lower the payment temporarily but, the negative equity is still there.
Another fun fact, most mortgage loan modification are only for 3-5 years with a balloon payment often times including ALL that they still owed including their late fees, missed payments….etc
And don’t forget, homeowners have to qualify for a loan mod. Its treated like a fully documented loan application. Many homeowners won’t qualify for the home that they are currently living in!
Loan Modifications are clearly not what people think. Understand what mods are and aren’t…counsel your homeowners so they know what they are signing themselves up for.
Its no wonder why, up to 70% of all loan mods fail…..
Source: SNL.com
Economists and analysts predict redefaults will severely plague loan modifications, including one projection that 70% of all modifications will fail.
In a recent report projecting the level of shadow inventory in the housing market, Standard & Poor’s analysts noted that they assumed a 70% redefault rate on loan modifications in the study.
Diane Westerback, S&P’s managing director of global surveillance analytics, told SNL that the previously reported 30% to 40% redefault rates typically only count borrowers after two or three months of payments. A year after the modification, Westerback expects redefaults to hit between 60% and 70%.
See Above comments for just a few of the reasons why loan mods fail…
“I’ve always taken the position that if a guy pays for a year, he’s really made it. If he makes a few payments, you don’t really know,” she said.
Fitch Ratings on June 16 issued similar projections, albeit only for subprime and Alt-A loans in RMBS. The rating agency projects modifications on those product types to redefault at a 65% to 75% range, while prime loans in RMBS are expected to redefault at a rate of 55% to 65%.
Fitch said the government’s Home Affordable Modification Program appears to be “falling far short” of its stated goals, with Managing Director Diane Pendley noting in a news release that changes to the program mean “final determination of the program’s ultimate effectiveness will continue to be delayed.”
Where does all of this go….what happens to all of these failed loan modification? Millions of those homes will become short sale listings.
Agents, are you finally ready to learn the new ways to list and sell short sales? Chances are you have learned the very basics of how to do short sales…maybe, you have even successfully closed a few short sales. Its obvious that helping homeowners avoid foreclosure by selling their home as a short sale is one of this markets greatest opportunities.
The most recent mortgage metrics performance report released by the Office of the Comptroller of the Currency and the Office of Thrift Supervision showed stronger performance as of the 2009 fourth quarter than Fitch and S&P expect. Redefaults three months after modification have fallen to 14.7% for modifications completed in the 2009 third quarter from 35.1% for 2008 third-quarter modifications.
The report posted two redefault rates for a year after modification: 60.7% for 2008 third-quarter modifications and 57.9% for 2008 fourth-quarter ones.
A spokesman for the Office of Thrift Supervision told SNL that a new mortgage metrics report will be released in the next week or two, with the agency shooting for a June 23 release date.
A pair of economists told SNL that they do not consider a 70% redefault rate on loan modifications outlandish.
James Hamilton, a professor of economics at the University of California, San Diego, told SNL that concerted efforts to keep unsustainable loans out of foreclosure will translate to high redefault rates over the near term.
“I think I would rather err on the side of using too big a number,” Hamilton said.
In fact, Hamilton might be more pessimistic than Westerback, whose expectation of an up to 70% redefault rate is based on historical trends. “To the extent that we were modifying loans that historically you would have just given up on, that would make you suspect that the ultimate failure rate on those modifications would be higher than the historical rate,” Hamilton said.
Dean Baker, co-director of the Center for Economic and Policy Research, is not any sunnier on the outlook for loan modifications. On the 70% redefault projection, Baker told SNL that “it certainly doesn’t strike me as an absurd number. It’s certainly a very high number, but it’s not obviously unreasonable.”
Rather than historical trends, Baker attributes his pessimism on loan modifications to a naggingly high unemployment rate and chronic negative equity exacerbated by a renewal in falling prices.
Even on permanent HAMP modifications, Baker said, “I think you’re still going to be at a high redefault rate. Again, it’s both the weakness of the economy and you have so many people who are going to be underwater on their mortgages. You have limited incentive to struggle and pay your mortgage if you’re underwater. And that’s the situation a lot of people are going to be in.”
So if all this is true, where is Obama getting his information from?
Excerpts from a recent Mortgage Bankers Association Press Release….
Nearly 25% Of All Mortgages Delinquent, 230% Increase/ 2011 Real Estate Market Predictions
The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 10.06 percent of all loans outstanding as of the end of the first quarter of 2010, an increase of 59 basis points from the fourth quarter of 2009, and up 94 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate decreased 106 basis points from 10.44 percent in the fourth quarter of 2009 to 9.38 percent this quarter.
The percentage of loans on which foreclosure actions were started during the first quarter was 1.23 percent, up three basis points from last quarter but down 14 basis points from one year ago.
The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the first quarter was 4.63 percent, an increase of five basis points from the fourth quarter of 2009 and 78 basis points from one year ago. This represents another record high.
The combined percentage of loans in foreclosure or at least one payment past due was 14.01 percent on a non-seasonally adjusted basis, a decline from 15.02 percent last quarter.
The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 9.54 percent, a decrease of 13 basis points from last quarter, but an increase of 230 basis points from the first quarter of last year.
The seasonally adjusted delinquency rate increased for all loan types with the exception of FHA loans. On a seasonally adjusted basis, the delinquency rate stood at 6.17 percent for prime fixed loans, 13.52 percent for prime ARM loans, 25.69 percent for subprime fixed loans, 29.09 percent for subprime ARM loans, 13.15 percent for FHA loans, and 7.96 percent for VA loans. On a non-seasonally adjusted basis, the delinquency rate fell for all loan types.
The foreclosure starts rate increased for all loan types with the exception of subprime loans. The foreclosure starts rate increased six basis points for prime fixed loans to 0.69 percent, 17 basis points for prime ARM loans to 2.29 percent, 18 basis points for FHA loans to 1.46 percent, and eight basis points for VA loans to 0.89 percent. For subprime fixed loans, the rate decreased nine basis points to 2.64 percent and for subprime ARM loans the rate decreased 39 basis points to 4.32 percent.
Change from last year (first quarter of 2009)
Given the challenges in interpreting the true seasonal effects in these data when comparing quarter to quarter changes, it is important to highlight the year over year changes. The non-seasonally adjusted delinquency rate increased 151 basis points for prime fixed loans, 172 basis points for prime ARM loans, 343 basis points for subprime fixed loans, and 244 basis points for subprime ARM loans from the first quarter of 2009. The delinquency rate was 48 basis points lower for FHA loans and 12 basis points for VA loans relative to the same quarter a year ago.
The non-seasonally adjusted foreclosure starts rate increased eight basis points for prime fixed loans, 36 basis points for FHA loans and 17 basis points for VA loans compared to the first quarter of 2009. The rate decreased 22 basis points for prime ARM loans, 10 basis points for subprime fixed loans, and 259 basis points for subprime ARM loans on a year over year basis.
About half of the states saw increases in the rate of foreclosure starts on a year over year basis, with the largest increases coming in Oregon, North Carolina and Maryland. The largest decreases were in Florida, Rhode Island and California. Almost all of the states saw year-over year decreases in subprime ARM foreclosure starts while almost all had increases in prime fixed-rate and FHA foreclosure starts.
Submitted by Tim Harris on June 15, 2010 – 1:17 pm
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Q&A: Author Sarah Susanka Talks Budget-Smart Remodeling
HouseLogic sat down with author and architect Sarah Susanka to talk about remodeling that builds value and saves money. Read
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Green Kitchen Remodeling
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7 Smart Strategies for Kitchen Remodeling
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Smart Options: Kitchen Flooring
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10 Tips for Saving Energy in the Kitchen
Maintain your large kitchen appliances is part of a smart home energy efficiency plan. Read
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Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
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Save Money By Growing Fruit Trees
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Start a Compost Pile
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Save Money with Your Edible Garden
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Water-Saving Irrigation Strategies
Simple, low-cost watering systems help you save water and money but still have a great-looking yard. Read
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Plant Trees To Save Energy and Grow Value
Plant a tree to add value to your home and have a positive impact on the local environment. Read
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Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
