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Buy Foreclosures Now……
Before it is too late. I have mentioned this before but the article below really hits on the important points. Come with your best offer and come fast. This is especially true in South Florida.
“You’ve heard of speed dating? It’s got nothin’ on foreclosure buying these days. In many places, anyone who wants to buy a foreclosure better act fast, or they’re going to come away with bupkus.”
http://money.cnn.com/2009/08/05/real_estate/buy_foreclosures_now/index.htm?section=money_realestate
Loan Modification Update
Will the government really get banks to give more help? I guess we will see starting November 1st.
“ A government loan refinancing program is on pace to offer help to three to four million homeowners over the next three years, the Treasury Department reported on Tuesday. U.S. loan servicers have begun modifying more than 230,000 loans for troubled homeowners on the verge of foreclosure, according to the report. More than 400,000 modification offers have been extended by loan servicers. The government in March launched a program to provide $75 billion in funds to loan servicers to assist them in modifying loans. The Treasury department hopes to have 500,000 loan modifications started by Nov. 1. The Treasury in March said it had hoped to modify three to four million home loans within the next three years, the amount the department says it is on track to meet.”
Servicers That Are Modifying Loans……Or Not
This morning on CNBC they said that the names of the mortgage servicers that are or aren’t doing a good job modifying mortgages were being named to publicly shame those that aren’t helping.
The article below is from CNN. “Performance was very uneven. Saxon Mortgage Services, a subsidiary of Morgan Stanley (MS, Fortune 500), led the pack, putting 25% of its delinquent loans into trial modifications, followed by Aurora Loan Services, a subsidiary of Lehman Brothers Bank, with 21%.
GMAC Mortgage, which is partly owned by the federal government, put 20% of its delinquent loans into trial modifications.
Among the major banks, JPMorgan Chase (JPM, Fortune 500) came in first with 20% of late loans in trial modifications, followed by Citigroup (C, Fortune 500) with 15%. Wells Fargo (WFC, Fortune 500) and Bank of America (BAC, Fortune 500) lagged with 6% and 5%, respectively.”
Fees Preventing Mortgage Companies From Modifying Loans
I can’t seem to grasp what they are talking about here. Maybe you can. “Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services.”
http://www.msnbc.msn.com/id/32214198/ns/business-the_new_york_times/
Loan Modifications To Pick Up?
That is what is being reported and not to be a pessimist but I know I won’t believe it until I see it. Especially when this article is posted the same day the article about banks preferring foreclosures came out.
“Loan servicers will “significantly” increase the pace of mortgage modifications under the Obama foreclosure prevention program, the Treasury Department said Tuesday.”
Do Banks Prefer Foreclosure?
Apparently they do and I don’t just say that because of the article below. This has been very apparent by their actions throughout this housing crisis. I understand why the article states this but banks lack common sense and I could go on for days as to why I say this. The part that they leave out is that 60% or so of the modified loans end up in default again because the modified payment is higher. See, that makes no sense.
“Policymakers often say it’s a good deal for lenders to cut borrowers a break on mortgage payments to keep them in their homes. But, according to researchers and industry experts, foreclosing can be more profitable.”
http://www.msnbc.msn.com/id/32181495/ns/business-washington_post/
Foreclosure Stats
There are a lot of good statistics in this. It should come as no surprise that Florida is the main focus of the article.
Foreclosure Buying Tips
For South Floridians, this is a must read article. We all know the attractions of buying a foreclosure but the pitfalls are the big part. This part is the most important in my mind:
“Before making a buy, investors need to do their homework carefully—that means hiring a contractor to complete a home inspection for big-ticket problems, like structural damage or costly mold.”
Foreclosure Bidding Wars
We are seeing this at an extreme here in South Florida. I know someone who offered $38,000 above the asking price, all cash, and didn’t get it. If you want to buy you better start looking now because it will probably only get worse.
“After months of looking at homes and being outbid at least 15 times, first-time home buyers Lance Thorson, middle, and Kelli Thorson, right, with 2-year-old daughter Mia, are now making offers on houses before they even see them.”
http://www.msnbc.msn.com/id/32011159/ns/business-real_estate/
Foreclosure Prevention Is Failing, What Is Being Done About It?
That is a good question and I know the Senate is asking for answers to this but it might just be the same end result, a lot of talk and no action.
I guess if I were to blame anyone it would be the banks, not the Obama Administration. There is no rhyme or reason as to who the banks help with regards to helping those in foreclosure, approving a short sale, or accepting offers on their REO’s (foreclosed properties). I have heard so many stories of those who aren’t being helped and then very few of those who should not have been helped getting a HUGE bailout.
“”If you can’t tell us what you’re headed to — what you’re goal is in terms of the number of properties you’re going to deal with each month — we’ll be flailing around with this two years from now,” Sen. Mike Johanns (R., Neb.) said. “It will be regarded as a failed program — a costly failed program.”
Senate Banking Chairman Christopher Dodd (D., Conn.) called it “disgraceful” that so many borrowers were still losing their homes despite the urgency of stabilizing the housing market for healing the broader economy.”
MillerOnMortgages
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Miller on Mortgages 