Foreclosed homeowners could still owe; Existing-Home Sales Improve; Loan Mods Often Damage Credit Scores
May 24, 2010 by Andy Kaufman · View Comments
In hopes of trying to balance my output with my input, I’m going to start summarizing what’s in some of my open tabs in my browser and sharing them with you. That way we can all be smarter 
/via Sacramento Business Journal: Foreclosed homeowners could owe ‘tens thousands of dollars’ to lenders.
You may not know it, but if you’ve refinanced from your original purchase loan and lose your home to foreclosure, you may be on the hook for the difference between the amount owed & the property’s value.
For example, if a homeowner has $200,000 outsanding for a refinanced mortgage and the lender forecloses on the house with the property valued at $150,000, the former homeowner could be liable for the remaining $50,000.
Senate Bill 1178 is trying to close that loophole.
/via REALTOR.org: Existing-Home Sales Continue to Improve in April
Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”
/via SF Gate: Loan modifications often damage credit scores
Lots of good info in this article from Carolyn Said, but if you’re looking into a possible loan modification, there’s a list of tips in the article that you should be aware of…
- If you’re requesting a loan modification, here are some steps you can take to try to protect your credit:
- Try to stay current on payments while requesting a trial modification.
- Try to get a loan mod under the federal Home Affordable Modification Plan (HAMP), which has less impact on credit.
- Request that the lender not report your trial loan payments as partial payments.
- Make your trial payments on time.
- Homeowners who believe that servicers are not treating them fairly or complying with program guidelines can contact the HOPE Hotline at (888) 995-4673.
Is Calfornia in the Eye of the Housing Market Hurricane?
November 4, 2009 by Andy Kaufman · View Comments
This post says we are.
Definitely recommended reading if you’re interested in future of the California housing market.
Bank of America and Wells Fargo Say Loan Mod Efforts Improving, but Frank Says It’s Not Good Enough
September 10, 2009 by Andy Kaufman · View Comments
The latest loan mod report card is in and it looks that B of A and Wells are heading up the rear of the class.
From Carolyn Said’s article in SFGate.
Also worth noting is that:
Rep. Barney Frank, D-Mass., chairman of the House Financial Service Committee, said he was disappointed with the program’s slow pace. According to news reports, he threatened to revive legislation that would allow bankruptcy judges to reduce principal balances on home loans, an idea fiercely opposed by the industry.
CNBC Sheds Some Light on the 'Shadow Inventory'
August 31, 2009 by Andy Kaufman · View Comments
I just came across a post from CNBC’s Diana Olick that sheds some light on whether banks are holding onto an inventory of homes that they’ve already foreclosed on instead of putting them on the market.
Here’s what Bank of America told her:
- Foreclosure sales have been abnormally low since we learned of the pending implementation of the administration’s Making Home Affordable program. From that point, we delayed the initiation of foreclosure proceedings and sales for customers that may eligible for a loan modification under MHA. As a result of this policy, our foreclosure sales in recent months have been as little as half the normal pace we experienced before.
- Until a foreclosure is completed, Bank of America continues to exhaust every possible option to qualify customers for modification or other solutions.
- Now that Making Home Affordable programs are operational, we do project an increase in foreclosures as we exhaust every available option to qualify customers for modifications and other solutions.
- While we have very strong loan modification programs now available, unfortunately, these foreclosure projections reflect the increasing number of customers who will not qualify for loan modification because they have suffered major life events servicers can’t solve…primarily unemployment and underemployment.
- We do not hold foreclosed properties off the market. The vast majority of mortgages serviced by Bank of America are owned by third-party investors. We have an obligation to them to prepare foreclosed properties for market and sell them as efficiently as possible.
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