Utah & NW Ohio Real Estate Blog

Bank of America pushes Shortsales over REO's

Mon, 19 Jul 2010 12:17:00 GMT

http://www.reo-insider.com/news/bank-of-americ-puts-short-sales-ahead-of-reo

RE/MAX 7 Short Sale Tips from Top Agents

Thu, 15 Jul 2010 11:53:00 GMT

http://public.remax.net/public-News/Pages/CDPEMarketingTips0710.aspx

Loan Modification Alternatives

Mon, 21 Jun 2010 14:45:00 GMT

Denied for Federal Mortgage Aid, Homeowners Seek Alternatives

By Stella M. Hopkins

RISMEDIA, June 18, 2010--(MCT)--Allison Rinehart's best hope for saving her home isn't the massive federal effort to stem foreclosures.

She's been denied, possibly in error, for that plan so she's banking on an alternative mortgage modification to keep her Charlotte townhouse.

"This is the only thing my daughter and I have," said Rinehart, who is 45. "I am a single parent, no child support, working as many jobs as I can take on."

The taxpayer-funded Home Affordable Modification Program, or HAMP, is the centerpiece of the nation's foreclosure prevention effort. But it doesn't work for many people.

For example, Bank of America estimated in April that more than half its 1.44 million delinquent mortgage customers weren't eligible for HAMP. Wells Fargo says about 80 percent of its roughly 500,000 modifications are non-HAMP. Combined, the two banks serve nearly 40 percent of U.S. mortgages.

HAMP also has seen a surge in homeowners failing the three-month trial period, and a decline in new trial enrollments. Critics blame servicers for the declines, saying they're doing a poor job and unfairly bouncing people from the program. Servicers acknowledge there were problems, especially early on. They also say homeowners aren't complying with payment agreements or document requirements.

Whatever the reason, the problem isn't going away. The number of struggling homeowners nationwide is expected to remain high because job growth remains sluggish and millions of people are out of work. That means alternative modifications are likely to become even more important tools for preventing foreclosure.

"The goal is just to get to affordability ... whether that happens through a modification through HAMP or outside of HAMP," said Tom Goyda, a Wells Fargo spokesman.

There are many reasons property owners can't qualify for the federal program.

For example, they might have refinanced or bought after HAMP's Jan. 1, 2009, cutoff. They might not meet income or debt requirements. HAMP modifications, subsidized by taxpayer dollars, also aren't available for investment property, vacation homes and high-end homes.

In April, Bank of America finalized more than 23,000 HAMP modifications and had more than 210,000 in the pipeline. The Charlotte bank also has been averaging about 13,000 alternative modifications a month this year, said spokesman Dan Frahm. Most are for customers with mortgages issued after the cutoff or above the HAMP limit or on properties that aren't their principal residence.

"HAMP is at the center of our modification efforts at Bank of America," Frahm said. "It's also important to recognize that no one solution or program can address the ... issues facing homeowners, who are experiencing hardship as a result of prolonged recessionary impacts."

President Barack Obama announced the HAMP program in February 2009, well into the financial crisis. Prior to that, lenders and mortgage servicers were already doing modifications so it's natural there are more of those. Many HAMP applicants also are still working through the slow, cumbersome process.

Servicers participating in HAMP must first consider homeowners for loan aid under that program. If that doesn't work for customers, servicers can consider them for their own programs.

Goyda said Wells is doing alternative modifications for about 60 percent of customers who reach HAMP's trial phase but don't ultimately qualify. About 10 percent find other solutions, and the balance are probably headed for foreclosure.

Of HAMP, he said: "It's only one part of our overall efforts to help customers find affordability."

Consumer advocates, while sharply critical of mortgage servicers for poor modification service, generally endorse HAMP's intent and its standardized approach.

"It's a useful template," said Julia Gordon, senior policy counsel with the Center for Responsible Lending in Washington. "It's by no means some kind of gold standard."

For example, a recent HAMP change eliminates unemployment benefits as a qualifying source of income for modifications.

"That's just crazy," she said.

Gordon cautiously welcomes alternative plans because they can potentially help more people. She's concerned homeowners won't have a consistent way to know what's available and how to qualify. She and others have seen instances where payments are actually higher under non-HAMP plans — not a workable solution for a struggling borrower.

She also frets about the lack of federal oversight for in-house plans. The U.S. Treasury oversees HAMP, but has been criticized for not penalizing servicers for mistakes.

Gordon urges people to review any modification offer carefully. What's the new payment? Has the principal been reduced if the loan balance exceeds the value of the house? How long does the modification last?

"It is conceivable you could have a proprietary product that's better," she said.

Under HAMP, the government pays servicers and homeowners for successful modifications. For homeowners who make all their payments on time, that can amount to $5,000 paid toward their loans.

Those incentives aren't available under alternative plans.

Al Ripley, with the nonprofit N.C. Justice Center, has been critical of HAMP's cumbersome nature. He's also concerned about the lack of consistency and transparency in alternative plans. He says all servicers should be required to disclose their guidelines and processes for all modifications.

"It would be very helpful for homeowners to have more predictability when applying for a modification," Ripley said.

Allison Rinehart's budget was tight in late 2004 when she paid about $136,000 for her Charlotte townhome.

She put $4,000 down on the home and took a 30-year mortgage at nearly 9 percent. Her monthly payments were $1,111. Rinehart and her daughter, Sydnea, now 15, got by on the roughly $30,000 a year Rinehart made as a longtime, self-employed hairdresser and middle-school coach.

Last spring, she noticed business dropping off more sharply as her clientele struggled in the downturn. In July, she asked for a modification from Select Portfolio Servicing, the Utah firm handling her mortgage. She received an unusually speedy offer of a trial plan, which is supposed to last three months.

Rinehart was told to make the first payment on Sept. 1 at her original amount. Subsequent trial payments were cut to $685. She made those payments through March, when she received a letter saying she was denied a HAMP modification. Soon after, she contacted McClatchy Newspapers.

"This has caused me sleepless nights, depression and anxiety," said Rinehart, who also works in her church's office and has been a nanny. "My 15-year-old doesn't know whether or not she will have her home the next day or not because of this."

SPS offered another trial, with monthly payments at an even lower $456. Rinehart started the payments in April but worried it was a delaying tactic and she'd be denied again. Meanwhile, she received notices from SPS saying that to keep her house she had to repay the thousands of dollars that hadn't been paid during the trials.

"It really scared me," she said. And angered her. If she had the money, she wouldn't have asked for help.

"It was a slap in the face."

In May, McClatchy Newspapers began contacting SPS, asking about Rinehart's case. After several weeks of messages and e-mails, the company said it would send Rinehart a response.

In that letter, SPS said Rinehart didn't qualify for HAMP because she failed to send documents by a certain date. Rinehart said that's not true, that she has copies and certified mail receipts proving she sent everything requested, on time.

The May 27 letter, which Rinehart provided the newspaper, confirmed Rinehart made the first two trial payments. The letter said once she made the third payment, due last week, "SPS will complete the modification process and you will receive the final modification agreement which requires your signature.

"Once this is received, SPS will permanently modify the terms of your note and bring your account current."

Her June payment cleared her bank shortly after the 1st of the month. On June 10, she arrived home to find the promised paperwork. She believes that happened only because she went public.

Last week, she was reviewing the papers and reflecting on what sustained her.

"I relied on my faith."

(c) 2010, The Charlotte Observer (Charlotte, N.C.).
Distributed by McClatchy-Tribune Information Service

Avoid Mortgage Modification Scams

Sun, 20 Jun 2010 17:07:00 GMT

As a real estate agent, I devote extra attention to issues facing struggling homeowners. But any homeowner should know that the FBI has reported a 400 percent increase in mortgage fraud cases from five years ago. Sadly, some people are praying on those who need help the most.

If you or anyone you know is going through a mortgage-related transaction, there are some "red flags" to be aware of. I created a report on my website that gives examples of what fraud cases the FBI has been noticing.

Please send anyone here who needs this free information:

http://www.utahforeclosurereliefteam.com/

If you have any questions about mortgage scams, or if anyone you know needs legitimate, professional help with avoiding foreclosure, please don't hesitate to contact me.

I'm here to help.

Cindy Keil

801-779-4967

Foreclosure Update May 2010

Sun, 13 Jun 2010 01:00:00 GMT

http://www.housingwire.com/2010/06/09/foreclosures-drop-3-in-may-as-lenders-tackle-backlog-realtytrac

Ohio Realtors Helping Struggling Homeowners

Fri, 28 May 2010 01:00:00 GMT

http://www.wtol.com/global/story.asp?s=12529326

Shadow Inventory

Thu, 13 May 2010 15:49:00 GMT

The shadow inventory of foreclosures should peak in the summer of 2010 before falling gradually in the later months, according to a new report from Barclays Capital.

Barclays defines the shadow inventory of foreclosures as loans in 90-plus day delinquency or already in the foreclosure process. According to the report, there are currently 2.4m loans in 90-plus day delinquency and another 2.1m in foreclosure, totaling 4.5m in the shadow inventory.

Analysts measured these loans in reports from Fannie Mae and Freddie Mac, their regulator the Federal Housing Finance Agency (FHFA), the Federal Deposit Insurance Corp. (FDIC), the US Department of Housing and Urban Development (HUD), the Mortgage Bankers Association (MBA) and its own resources.

The shadow inventory should reach its height in the summer in 2010 before falling gradually as the market absorbs 130,000 distressed properties per month, according to the report. Over the next three years, analysts forecast 4.7m distressed sales with 1.6m in 2010, another 1.6m in 2011 and 1.5m in 2012.

Barclays reported more than 478,000 loans in REO status. At the current rate the banks are trickling loans from foreclosure into REO, that number could grow to 536,000 by late 2011. If that rate increases, Barclays analysts said that number could reach 640,000 by the summer of 2012. Still, analysts said the market is unlikely to revisit the “extreme levels” of REO seen in late 2008.

Utah Housing Market Update April 2010

Sun, 25 Apr 2010 01:00:00 GMT

Utah’s foreclosure activity increased 75 percent from the first quarter of 2009, the highest annual rise among top-10 states, giving it the nation’s fifth highest foreclosure rate. Foreclosure filings were reported on 10,756 Utah properties, a rate of one in every 88 housing units and an increase of 21 percent from the previous quarter.

It is imperative that we let everyone know family, friends, co-workers that there are options available. My team consists of Attorney's, Hud Counselors, Title Company, Lenders, and other professionals ready to assist struggling Utah families facing Foreclosure.

For more information go to: www.UtahForeclosureReliefTeam.com

Sunami of Distressed Homes Coming!

Tue, 16 Feb 2010 12:08:00 GMT

Are you ready? Educated to help homeowners? Better be! Short sales are here for a long............... time.

http://feedproxy.google.com/~r/CalculatedRisk/~3/VsyPEWahlkA/housing-reports-another-wave-of.html?utm_source=feedburner&utm_medium=email

Citi Rolls Pilot Program 6 mos free rent!

Fri, 12 Feb 2010 10:35:00 GMT

What are your thoughts? After 6 mos then what! Sunami here we come!

http://housingwire.us1.list-manage.com/track/click?u=cc93871141bf519e78859e3b1&id=8b60131ba6&e=7393aea7c3

It's not a Pinkslip- It's a Blank Page

Wed, 03 Feb 2010 02:00:00 GMT

This is pretty powerful! Makes you look at Losing your Job as an opportunity!

http://www.feedblitz.com/t2.asp?/198516/18719214/3400450/http://feedproxy.google.com/~r/typepad/sethsmainblog/~3/plfexkSytrM/bonus-inspiration-and-insight.html

FHA Raising Fees for Buyers

Wed, 20 Jan 2010 02:00:00 GMT

Buyers Need to Buy NOW!

http://www.housingwire.com/2010/01/20/fha-raising-insurance-fees-and-certain-down-payments/

Ohio Market Update 12/09

Mon, 18 Jan 2010 16:29:00 GMT

Ohio's Foreclosure filings down 9% from 11/09.

December 2009 Foreclosure Rate Heat Map

Foreclosure Rate Heat Map
What are new foreclosures as a percentage of the housing market?
More info

1 in every 431
housing units received a foreclosure filing in December 2009

Foreclosure Activity Counts - OH

Compare Areas

New Foreclosures
What areas have the highest amount of new foreclosure activity?
More info

Total New Foreclosure Activity

Utah Market Update 12/09

Mon, 18 Jan 2010 02:00:00 GMT

Currently Utah is ranked #6 in the nation in Foreclosure Filings. 12/09 Utah had 1712 Notice of Default Filings up 73% from 11/09 and 146% from 12/08, 1636 Notice of Trustee Sales are currently scheduled, and 1267 REO Properties, 4618 Total. This will continue to increase due as the Option Arms are adjusting and some homeowner mortgages will double or triple! 1 in every 45 in US households have received a NOD.

December 2009 Foreclosure Rate Heat Map

1 in every 200
housing units received a foreclosure filing in December 2009

Foreclosure Activity Counts - UT

Compare Areas

Should you Walk Away from your Home?

Sat, 09 Jan 2010 13:29:00 GMT

http://feedproxy.google.com/~r/LoanModificationHomeLoanNews/~3/VUjJKaw9SKw/?utm_source=feedburner&utm_medium=email

The Long Road to Loan Mods

Sat, 09 Jan 2010 13:26:00 GMT

http://feedproxy.google.com/~r/LoanModificationHomeLoanNews/~3/Y6wqJmmE0SY/?utm_source=feedburner&utm_medium=email

Home Sales Slower than Expected

Thu, 07 Jan 2010 11:33:00 GMT

http://housingwire.us1.list-manage.com/track/click?u=cc93871141bf519e78859e3b1&id=0d5ce50d63&e=7393aea7c3

Lenders Can't Keep Up Shortsales

Thu, 07 Jan 2010 02:00:00 GMT

http://housingwire.us1.list-manage.com/track/click?u=cc93871141bf519e78859e3b1&id=a86fe43d93&e=7393aea7c3

Loan Mods Rank # 4 in Scams

Wed, 06 Jan 2010 13:34:00 GMT

http://feedproxy.google.com/~r/LoanModificationHomeLoanNews/~3/oD1RwOmW0M4/?utm_source=feedburner&utm_medium=email

Foreclosure Sunami 2010

Wed, 06 Jan 2010 13:32:00 GMT

Click the link

http://feedproxy.google.com/~r/LoanModificationHomeLoanNews/~3/nevYR6WjwNY/?utm_source=feedburner&utm_medium=email

Utah & NW Ohio Real Estate Blog

Bank of America pushes Shortsales over REO's

RE/MAX 7 Short Sale Tips from Top Agents

Loan Modification Alternatives

Denied for Federal Mortgage Aid, Homeowners Seek Alternatives

Avoid Mortgage Modification Scams

Foreclosure Update May 2010

Ohio Realtors Helping Struggling Homeowners

Shadow Inventory

Utah Housing Market Update April 2010

Sunami of Distressed Homes Coming!

Citi Rolls Pilot Program 6 mos free rent!

It's not a Pinkslip- It's a Blank Page

FHA Raising Fees for Buyers

Ohio Market Update 12/09

Ohio's Foreclosure filings down 9% from 11/09.

December 2009 Foreclosure Rate Heat Map

Foreclosure Savings Heat Map

Foreclosure Activity Counts - OH

Utah Market Update 12/09

December 2009 Foreclosure Rate Heat Map

Foreclosure Savings Heat Map

Foreclosure Activity Counts - UT

Should you Walk Away from your Home?

The Long Road to Loan Mods

Home Sales Slower than Expected

Lenders Can't Keep Up Shortsales

Loan Mods Rank # 4 in Scams

Foreclosure Sunami 2010