Housing Market Recovery Dependent On Reduction Of “Oversupply Of Distressed Homes” (Video)
10 09 2011Comments : Leave a Comment »
Tags: Bank-Owned, Distressed, Foreclosures, Home Sales, Homes, Videos
Categories : Bank-Owned, Defaults, Delinquencies, Financing, Foreclosures, Housing Market, Investors, Mortgage Industry, Purchases
Short Sales Process Has Been Aided By 45-Day Requirement For Banks To Respond To Short Sale Requests; Sellers Eligible For Up To $3,000 In Aid (Video)
22 08 2011The short sale system has been simplified by the Obama Administration. The Treasury Department unveiled rules requiring banks to respond to homeowner short sale requests within 45 days. Short sale sellers are also eligible for up to $3,000 in aid to move. By some estimates up to 275,000 foreclosures could be prevented by these efforts.
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Tags: Banks, Foreclosures, Obama Administration, Selling Homes, Short Sales
Categories : Bank-Owned, Delinquencies, Economic Statistics, Federal Government, Foreclosures, Housing Market, Mortgage Industry, Purchases, Short Sales, Videos
Homebuyers Should Not Avoid Short Sales But Have Patience And Few Contingencies With Purchase Financing
19 08 2011
http://renovationlendinginstitute.com/
- Typically with a short sale, the homeowner is underwater and has experienced a financial hardship such as a job loss. To limit the damage to his credit rating, a homeowner may attempt to work with his lender to negotiate a short sale. Not only must the bank approve of the short sale itself, it also must agree to the price, since the bank will accept the difference as a loss.
- Unlike foreclosures, in which the owner has walked away and the bank is looking to unload a vacant – and sometimes vandalized – property, a short sale isn’t a distressed home that will sell at an extremely low price. According to data from RealtyTrac, short sales typically sold for nearly 10 percent less than the market price in the first quarter of 2011, whereas foreclosures sold at an average discount of 35 percent.
- Home buyers wanting to purchase a short sale must have patience. In most cases, when a buyer makes an offer on a house, he receives a response from the seller within a few days, or even hours. With a short sale, the bank must approve of the sale and bank representatives are overloaded with cases. It may take 30 days or longer for a buyer to receive a response from the bank.
- In a traditional real estate transaction, it is common for a home buyer who currently owns his home to make his offer contingent on selling his current home. In short sales, most banks will not approve an offer that is contingent on the buyer selling his current home, as too many things can go wrong.
- Banks also typically won’t consider short-sale offers that have inspection contingencies in them, so buyers can either do an inspection prior to making an offer or forego an inspection altogether.
- Even with the challenges associated with short sales, buyers should not avoid these transactions.
For more: http://realestate.aol.com/blog/2011/08/11/short-sales-are-they-worth-the-trouble/
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Tags: Banks, First-Time Homebuyers, Homes, Purchases, Short Sales
Categories : Financing, Foreclosures, Housing Market, Mortgage Industry, Purchases, REO's, Short Sales, Statistics
Fannie Mae, Freddie Mac And FHA Now Own Half Of All Foreclosed Properties And Obama Administration Is Seeking Proposals On How Best To Shrink Inventory
10 08 2011
The Federal Housing Finance Agency, which regulates Fannie and Freddie, will issue the formal "request for information" with the administration to solicit proposals that shrink the glut of foreclosed properties weighing on the residential market.
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Tags: Bank-Owned, Fannie Mae, FHA, Foreclosures, Freddie Mac, HUD
Categories : Bank-Owned, Defaults, Delinquencies, Fannie Mae, Federal Government, FHA, Foreclosures, Freddie Mac, Housing Market, HUD, Statistics
Foreclosure Update: Fannie Mae Disposed Of 13.3% More REO’s In 2nd Quarter 2011 But Believes Delays In Foreclosure Process Will “Delay The Recovery Of The Housing Market”
5 08 2011
- http://renovationlendinginstitute.com/
- Fannie Mae acquired 53,697 single-family real-estate owned (REO) properties, primarily through foreclosure, in the second quarter of 2011
- This compared with 53,549 in the first quarter of 2011
- Fannie Mae disposed of 71,202 single-family REO in the second quarter of 2011
- This was a 13,3% increase over the 62,814 REO in the first quarter of 2011
- As of June 30, 2011, the company’s inventory of single-family REO properties was 135,719
- This represented a 11.4% decrease from the 153,224 REO as of March 31, 2011
- The carrying value of the company’s single-family REO was $12.5 billion, compared with $14.1 billion as of March 31, 2011.
The changing foreclosure environment has significantly lengthened the time it takes to foreclose on a mortgage loan in many states, which has slowed the pace of Fannie Mae’s REO property acquisitions. The increase in foreclosure timelines also has increased Fannie Mae’s credit-related expenses and negatively affected its single-family serious delinquency rates. Fannie Mae believes these changes in the foreclosure environment will continue to negatively affect its foreclosure timelines, credit-related expenses, and single-family serious delinquency rates. Moreover, Fannie Mae believes these changes in the foreclosure environment will delay the recovery of the housing market because it will take longer to clear the housing market’s supply of distressed homes, which typically sell at a discount to non-distressed homes and therefore negatively affect overall home prices.
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Tags: Bank-Owned, Fannie Mae, Foreclosures, REOS
Categories : Fannie Mae, Foreclosures, Home Sales, Housing Market, Mortgage Industry, REO Insider, REO's, Statistics
Mortgage Loan Underwriting: Research Demonstrates That “Sound Underwriting And Dcoumentation”, Not Higher Down Payments, Is Key To Lower Foreclosure Rates
4 08 2011
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Tags: Guidelines, Loan-To-Value, Mortgage Loans, Qualified Residential Mortgage, Underwriting
Categories : Economic Statistics, Fannie Mae, Federal Government, FHA, Financing, Foreclosures, Freddie Mac, Housing Market, Mortgage Industry, Mortgage Insurance, Statistics, Underwriting
A New Study By Pew Research Center Finds “Housing Bust” Has Reduced “Household Wealth” Of Black And Hispanic Americans More Than White Americans (Video)
27 07 2011As the economy struggles to rebound, a new analysis of Census data shows a widening wealth gap among white, black and Hispanic Americans. Gwen Ifill discusses the results of a new study with the Pew Research Center’s Paul Taylor and Howard University’s Roderick Harrison.
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Tags: Home Values, Housing Market, Housing Studies, Reports, Videos
Categories : Economic Statistics, Federal Government, Foreclosures, Home Values, Housing Market, Reports, Statistics, Surveys
Skip Schenker Of The “Renovation Lending Institute” Presented At The “2011 REO Expo” In Ft. Worth, TX
27 07 2011
Skip Schenker poses with Mr. Christopher Gardner, author of “The Pursuit of Happyness” and the subject of the successful movie starring Will Smith. Both Gardner and Schenker were presenters at the 2011 REO Expo, hosted by “HousingWire” magazine, held last month in Ft. Worth Texas. Nearly 2,000 Default Industry Professionals gathered for education, motivation and networking. Magic Johnson was also one of the guest speakers.
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Tags: Conventions, REO, REO Expo, Skip Schenker
Categories : Foreclosures, Home Sales, Housing Market, Mortgage Industry, REO's, The 203k Guy
U.S. Housing Market: “Shadow Inventory” In April 2011 Declines To 1.7 Million Homes From Peak Of 2 Million In January 2010; Homes That Are “50% Underwater” With Negative Amortization Loans Climbs To 2 Million Representing Future Defaults
29 06 2011- http://renovationlendinginstitute.com/
- Shadow inventory for residential properties declined to 1.7 million units in April according to CoreLogic
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This five months’ worth of supply is down from 1.9 million units compared to April 2010.
- Shadow inventory has gone down because there are fewer delinquencies and more distressed sales
- It will probably take several years for the shadow inventory to be absorbed given the long timelines in processing and completing foreclosures
- Out of all the shadow inventory supply, 790,000 units are seriously delinquent, 440,000 are in some stage of foreclosure and 440,000 are REO properties
- Shadow inventory, also known as pending supply, is calculated by determining the number of distressed properties not listed on multiple listing services where the mortgage is 90 days or more late, in foreclosure already, or REO on the books of a financial institution
- Shadow inventory peaked in January 2010 at two million units, which is eight and a half months’ supply
- However, there are two million negative equity loans that are more than 50% or $150,000 “upside down.”
- This would severely restrict the owners’ ability to refinace or sell the home
- “This is another layer that is sitting behind the shadow,” said Sam Khater, senior economist at CoreLogic
- How many of those will default is difficult to predict but negative equity of 50% or more increases the likelihood of default
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Tags: Foreclosures, Negative Amortization, Negative Equity, REOS, Shadow Inventory, Statistics
Categories : Federal Government, Financing, Foreclosures, Home Sales, Housing Market, Mortgage Industry, REO's, Shadow Inventory
“Stabilization Of Home Prices” Will Be Dependent On The Ability Of FHA, Fannie Mae And Freddie Mac Holding Properties “Off The Market”
22 06 2011http://renovationlendinginstitute.com/
- The FHA, Fannie Mae and Freddie Mac will begin to take on a larger share of seriously delinquent loans and foreclosed properties
- Policymakers will be an important factor for home prices, since these entities could in theory be used to hold supply off of the market in an effort to support prices
- The chart below shows how distressed property sales appear to be weighing on home prices:
- The FHA, Fannie Mae and Freddie Mac do not appear to be holding properties back from the market
- FHA is constrained by costs and it has been trying to raise its capital level after concerns last year that it would fall below required minimums
- The Treasury is providing temporarily open-ended financial support to Fannie Mae and Freddie Mac
- Despite federal support, the GSEs have not made any significant new attempts to hold supply off the market.
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Tags: Charts, Fannie Mae, FHA, Foreclosures, Freddie Mac, Statistics
Categories : Federal Government, FHA, Foreclosures, Freddie Mac, Statistics
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