Foreclosure Market Report

According to RealtyTrac's Midyear 2013 Foreclosure Market Report, there were a total of 801,359 properties across the U.S. that have foreclosure filings in the first half of 2013. That signifies a 19% decrease from the previous six months. It is also down by 23% from the first half of 2012.

While there are so many programs today geared toward helping Americans avoid foreclosure, the report shows that 0.61% of all housing units in the country has had at least one foreclosure filing between January and June 2013, which accounts for 1 in 164 homes.

“Halfway through 2013 it is becoming increasingly evident that while foreclosures are no longer a problem nationally they continue to be a thorn in the side of several state and local markets, particularly where a backlog of delayed distress has built up thanks to a lengthy foreclosure process,” said Daren Blomquist, vice president at RealtyTrac. “The increases in judicial foreclosure auctions demonstrate that these delayed foreclosure cases are now being moved more quickly through to foreclosure completion."

There were 127,790 properties with foreclosure filings in June. This is down by 14% from May and down 35% from June 2012 which is the lowest monthly level we've seen in six and a half years.

If you are facing foreclosure, contact us! We'd love to help you refinance your home. Perhaps all you need is a lower monthly mortgage payment. Or we can help you sell your home and get into a smaller, less-expensive place! There's always a way! 888-883-5252

Read More

Home Prices Continue to Increase!

We recently took at look at CoreLogic's HPI report for April. It showed that Home Prices nationwide, including distressed sales, have increased by 12.1 percent! This is on a year-over-year basis, comparing April 2013 to April 2012.  This is the biggest year-over-year increase since February 2006!

April was the 14th consecutive month to see an increase in home prices.  Over the past few years, because of the recession, home prices have dropped significantly. This is one of the reasons why so many have faced foreclosure. Their homes were suddenly worth much less than they owed on them and they were unable to sell them. Once the unemployment rates went up as well, people struggled!

We are thankful now that everything is stabilizing once again. We've helped so many people to refinance their mortgages which gives them better rates and a lower monthly mortgage payment. Many have avoided foreclosure because of this. Now that home prices are increasing, fewer people find themselves "underwater" and can sell their homes for a decent price.

If you find yourself struggling to make your payments, consider refinancing! Visit us at CrossCountryMortgages.com  or call 888-883-5252. We can help!

Read More

Making Home Affordable Program is now Extended Through 2015!

Good news to start off your week: the Obama Administration's Making Home Affordable program has now been extended through December 31, 2015!  This was just announced by the Department of the Treasury and the Department of Housing and Urban Development (HUD) in association with the Federal Housing Finance Agency (FHFA). The goal was to align the deadline with that of the Home Affordable Refinance Program (HARP) as well as the Streamlined Modification Initiative for those with loans with Fannie Mae and Freddie Mac.

The Obama Administration has been working hard to provide relief to families on the brink of foreclosure. The Making Home Affordable Program has been an integral part of the housing market recovery. This two year extension of the deadline should further aid those affected by the housing crisis.

“The housing market is gaining steam, but many homeowners are still struggling,” said Treasury Secretary Jacob J. Lew. “Helping responsible homeowners avoid foreclosure is part of our wide-ranging efforts to strengthen the middle class, and Making Home Affordable offers homeowners some of the deepest and most dependable assistance available to prevent foreclosure. Extending the program for two years will benefit many additional families while maintaining clear standards and accountability for an important part of the mortgage industry.”

Originally launched in March 2009, this program has been able to help nearly 1.3 million homeowners. Another part of the Making Home Affordable Program is the Home Affordable Modification Program (HAMP) which works much like a refinance. Homeowners are able to modify the terms of their current mortgage and reduce their monthly payment in the hopes of avoiding foreclosure. More than 1.1 million homeowners have taken advantage of HAMP. Because of these modifications, the median savings is $546 per month! Would you like to save 38% of your previous payment?

“The Making Home Affordable Program has provided help and hope to America’s homeowners," said HUD Secretary Shaun Donovan. "Families across the country have used its tools to reduce their principal, modify their mortgages, fight off foreclosure and stay in their homes - helping further stimulate our housing market recovery. And with this extension, we ensure that the program keeps supporting communities for years to come.”

In addition to saving money, there are also new standards set in motion for the mortgage servicing industry that protect homeowners. Better communication, more efficient timing, and superior assistance are now expected to be norm for all lenders.  With the recent crack down on mortgage fraud, qualifications for a loan are more strict and monitored, but this is good for the borrower.

Now that the deadline for this great program is extended, struggling borrowers will find it easier to pay their mortgage payments and the number of foreclosures should decrease over time. If you feel like you are unable to pay your mortgage, please learn more about these assistance programs! There is no need for anyone to lose their home!

Read More

HUD Will Sell Thousands of Delinquent Mortgage Loans

Although the economy is improving, there are still many severely delinquent mortgage loans. HUD plans to sell 20,000 distressed loans that are insured by the FHA in an effort to deepen the inventory and bring relief to areas hit hard by foreclosure.  Its Distressed Asset Stabilization Program (DASP) will help with the sale of these loans and help to stabilize the nation's communities.

HUD has sold delinquent loans before, and previously did so by conducting note sales. There are two auctions planned, one for June 26th that will handle the sale of 15,000 notes through "national pools" and another auction on July 10th that will offer 5,000 notes through Neighborhood Stabilization Outcome (NSO) pools. The NSO pools allow qualified bidders notes located in Southern California, Chicago, Southern Ohio, and North Carolina. In addition, HUD is expanding the use of single-family loan sales by including a competitive bidding process in which loan pools are sold to the highest bidder.

“We’ve seen a tremendous response to our note sales which allow us to support particular areas of our country hard-hit by foreclosures while improving outcomes for FHA,” said FHA Commissioner Carol Galante. “These auctions allow us to continue stabilizing hard-hit housing markets and to improve FHA’s overall financial position at the same time.”

HUD expects to sell more than 40,000 distressed loans this year. These sales will help to reduce the FHA's total claims costs and increase recovery on any loses the FHA may have experienced regarding their Mutual Mortgage Insurance Fund.  The severely delinquent FHA-insured loans will be sold competitively at a market-determined price. Generally, the price will be well below the outstanding principal balance. When the loan is purchased, foreclosure is delayed for six months and the new servicer has time to help the borrower find an affordable solution to avoid foreclosure.

Read More

Housing Market Outlook for 2013

After a rough few years, the housing market and the economy are finally on an upward trend! Housing starts, prices and confidence are showing better figures everyday. Of course there are always ups and downs, and while some investors are still being cautious about jumping into the market, 2013 is promising to bring a more competitive market for homebuyers.  With the housing inventory as low as it is, experts wouldn't be surprised if bidding wars break out among investors and homebuyers. It is expected that homes will sell fast in 2013 as long as they are priced right. It is a homesellers market!

When the market was experiencing buying dry spells during the recession, the Federal Reserve dropped interest rates to record-lows in order to lure buyers. Now that things are steadily improving, the rates may begin to slowly climb upward, however experts are not expecting significant jumps. Some banks have already vowed not to touch the interest rates until the unemployment rate drops.  Even if mortgage rates do inch upward, they are expected to remain around 4% which is still remarkably low compared to years past.

Mortgage rules are always being amended in order to prevent fraud and reckless lending to the underqualified. The Consumer Financial Protection Bureau recently issued new mortgage standards with new criteria for qualifying for a loan. Some of the new rules state that a qualified mortgage cannot include risky features like interest-only payments or negative-amortization payments. Loans cannot have fees and points above 3% of the total mortgage, and the total debt-to-income ratio must be limited to 43%. Some experts are concerned that these tighter rules may restrict credit and discourage lower-income homebuyers. Additionally, there are new rules designed to stop over-borrowing. Some fear that this could make the process longer for potential homebuyers or even prevent some from qualifying. Those looking to purchase a home should begin the mortgage lending process at least three months in advance since some of the new lending standards may cause time delays.

The new rules aside, 2013 is expected to remain in this upward trajectory. Home pricing indexes started to rise last year and promise that home prices will continue to increase. This will encourage homeowners to want to sell again, and cause homebuyers to jump in quickly before the prices rise too high. It is expected that home prices will jump 6% this year.

We already mentioned that housing inventories are low. They've been steadily falling since 2007. If the inventory remains at a below-normal level, some fear that this will hold back home sales and impede the market's recovery. However, rising home prices should help to increase inventories. Housing construction is up 60% in the last two years as well, however it is still far from where it should be. It is estimated that roughly 1.5 million units need to be built every year to keep up with housing demands. Last year, only 600,000 were built, and experts are expecting 750,000 to be constructed in 2013. With high building-material costs and a lack of skilled laborers, builders confidence is moderate, but there is potential for this to all improve this year.

As far as foreclosures go, there are still more than a million homes in the process but the overall crisis is nearly at an end. As the market improves, more and more people are taking advantage of foreclosures and short sales. Some investors are even buying homes at 50 cents on the dollar, renovating them, and putting them back out there which helps to stimulate the market.

2012 saw a refinancing boom because of low interest rates, but 2013 is expected to slow. Refinancing helps to boost the economy by reducing payments so homeowners have more money to throw toward consumerism. Refinancing will only continue booming as it did in 2012 if eligibility requirements expand or if rates drop further. However, borrowers looking to refinance should start the process now!

Overall, the complexities of the housing market are very reliant on a tug and pull system. Something increases and causes something else to decrease, but the balance is improving and 2013 is expected to be a strong year for all involved.

Read More

Aid for California's Foreclosed Homeowners

If you are one of the many Californians who were affected by the state's foreclosure crisis, help may be on the way! California Attorney General Kamala D. Harris has awarded $9.4 million to 21 different organizations that will assist homeowners through California's National Mortgage Settlement Grant Program. These grants will benefit the neediest homeowners by providing better access to free legal assistance and representation. Homeowners will also have access to foreclosure intervention aid, education and financial literacy clinics, employment support and more.

“The foreclosure crisis has inflicted wide-ranging and deep harm to California homeowners and communities,” said Attorney General Harris. “These grants will give homeowners and families the financial and legal tools they need to recover.”

Organizations that receive this grant will begin implementing programs immediately in more than a dozen languages that will focus on the under-served and disproportionately impacted populations.

As of March, Attorney General Harris also announced that there will be an additional $1 million grant implemented into the National Housing Law Project called the California Homeowner Bill of Rights. All these funds are secured through the National Mortgage Settlement.  It is believed that these grants and programs will greatly benefit hard-working families who need that extra push to get back on track financially.

We previously blogged about the Homeowner Bill of Rights here.

Read More

23% of Homes Sold in Q2 were Foreclosures

According to RealtyTrac's latest Foreclosure Sales Report for the second quarter of 2012, nearly a fourth of the homes sold in that period of time were foreclosures. This means that there is now a limited supply of foreclosed homes available for sale in some markets. However, the past three months have seen an increase in foreclosure starts which may help to ease the shortage in the coming months. Also, the average price for these foreclosure sales increased in Q2, bu they were sold at a price that is 32% lower than the average price of a non-foreclosed home. Some of these foreclosure starts are translating to short sales. The number of properties that are under short sale status are increasing because lenders are opting for that instead of entering the complicated foreclosure process. These are also known as pre-foreclosure homes. On average, these homes sold for an average price of $185,062 in Q2, which is up 5% from the prevous quarter's record low.

Read More

Mid-Year 2012 Foreclosure Market Report

According to RealtyTrac's Mid-Year 2012 Foreclosure Market Report, the number of foreclosures in the US has risen by 2% from January to June as compared to the previous six months. Compared to the first half of 2011, foreclosures were down 11%. This report indicates that a total of 1,045,801 properties that have foreclosure filings, which means that one in every 126 units have had at least one filing in the first six months of 2012. The federal government has been very focused on fixing the foreclosure problem by introducing aggressive foreclosure prevention programs. Lenders and servicers have also been pressed to be more strict about their policies and procedures.

Read More

Take Advantage of a Foreclosure Review

The Federal Reserve has offered homeowners a chance to have a foreclosure review. This basically investigates whether or not you were treated fairly if you had a foreclosure. It is a deal from the Fed and the Office of the Comptroller of the Currency that has been extended until September 30th. Many homeowners, though, are not taking advantage of this review: only 196,000 have. The participating mortgage servicers are expected to choose more cases to review on their own for a total of 338,400 reviews. However, that only accounts for 7.5% of the 4.5 million borrowers who are covered by this enforcement action. In order to qualify for a review, a borrower must have a loan that was serviced by a participating lender, and the house's loan must have been active in the foreclosure process between January 1, 2009 to December 31, 2010. There is no cost for a review. If you are eligible, you should have already been contacted. If not, get in touch with your servicer.

Read More

FHFA's 2012 Foreclosure Prevention Report

Since 2008, Fannie Mae and Freddie Mac have completed more than 2.3 million foreclosure prevention actions. This includes 1.1 million permanent loan modifications. All of their activities have been detailed in the FHFA's first quarter 2012 Foreclosure Prevention Report. It is known as the Federal Property Manager's Report and we'd like to share that with you. The report shows information about states with the biggest 5-year decline in house prices, as well as the states with the highest number of delinquent loans. Take a look at it for even more statistics and information.

Read More

Obama Adminstration's May Housing Scorecard

The May Housing Scorecard has been released, courtesy of HUD, the Department of the Treasury and the Obama Administration. It is a comprehensive report on the status of the nation's housing market. All indicators point to signs of stability. There's been an overall increase in the sale of existing homes across the nation. The inventory of newly constructed homes has also increased. The only slight hindrance right now comes in the form of delinquencies and underwater mortgages. However, the economy is continuing to recover. More than 180,000 borrowers have taken advantage of the Home Affordable Refinance Program to secure mortgage relief. This has helped foreclosure starts to decline.

The Obama Administration has many programs in place to aid homeowners with the woes of the housing market. So far, these programs have established some critical standards and accountability for mortgage servicers. These have forced the industry to provide struggling homeowners with more effective assistance than ever before. Millions of American homeowners have received relief from these foreclosure programs, and the Administration hopes to continue providing it. It is very important that the nation's housing market crisis can recover.

Read More

Sneak Peak at the April Mortgage Monitor Report

We have a sneak peak of the "April Mortgage Monitor" report from Lender Processing Services, Inc (LPS). The report is scheduled to be released in full at the end of the month, and takes its data from more than 40 million loans. According to our sources, the report states that the total U.S. delinquency rate (loans 30 or more days past due but not yet in foreclosure) is at 7.12%. That figure is up 0.4% from March but it is down by 10.6% compared to last year. Currently, there are 3,522,000 delinquent mortgages on residential homes, including 1,595,000 that are more than 90 days late.

We reported on the foreclosure pre-sale in the past. Its inventory is now made up of 2,048,000 properties. Combining that with the past-due mortgages gives us a total of 5,570,000 properties that are either delinquent or in foreclosure. The states that have the highest percentages of non-current loans include Florida, Mississippi, Nevada, Illinois and New Jersey.

Read More

Update on the Housing Market

The economy is working hard to recover. The housing market in particular needs the most help. Unfortunately, new home sales fell in February. However, there was an increase in the prices of these homes, putting it at the highest levels we've seen in 8 months. Despite this, new home sales were actually up 11.4% compared to February of last year. This does indeed confirm a boost to the economic recovery efforts.

The housing market is only being hindered right now by an oversupply of used homes on the market. And of course there still is the issue of foreclosures that are selling below their market value. The government is still putting forth efforts to contain and control the amount of foreclosures and hopefully help prevent many of them in the future so the economy can continue to heal.

Read More

Obama's Foreclosure Prevention Plan

How would you like to save $3,000 per year on your mortgage? That's exactly what President Obama is working to do for American Homeowners. He announced on February 1st that he has a plan to help homeowners like you to refinance your mortgage. Why? The goal is to help stabilize and boost the housing market again. Although, this plan is expected to cost between $5 billion and $10 billion to put into effect. Obama plans to get the funds for this by putting a fee on large banks.

The programs associated with this plan will give lenders and other stakeholders the tools they need to help borrowers with their mortgage woes and to ultimately increase the country's confidence in the real estate finance system.

The Obama Administration, Congress and the National Association of Home Builders will continue looking for ways to increase refinancing opportunities, to reduce the inventory of foreclosed homes and to hopefully prevent additional homes from falling into foreclosure.

Read More

FHFA's "Pilot Phase" for REO Initiative

Here is some more information about the Federal Housing Finance Agency's new REO Initiative regarding turning REO's into rentals. They are starting off simple with a "pilot phase" that is excepted to include 500 to 1000 homes provided by Fannie Mae. The GSEs have more than one million foreclosure properties in their possession.

The purpose of this pilot phase is to examine:

• Investor interest in various types of assets
• How investors can maximize the participation of experienced local firms and organizations that can provide the types of services and support needed for stabilization in the community
• The types of structures and financing that would improve returns to the sellers as well as the value of the homes
• The process that qualifies these investors and how they participate in sales transactions

There is no indication of a timetable for beginning bulk REO sales yet. The FHFA is hoping that this pilot phase will prove beneficial to investors, homeowners, GSEs and also to the economic status of the housing market and the country as a whole. Their focus is on the nation's hardest-hit areas first. They'd also like to improve REO sales for homeowners and small investors that will enhance the existing retail sales strategies of the GSEs.

Read More

REO Initiative to Rent Out Foreclosed Properties

The FHFA has announced the first step of an REO initiative that will aim to help the cities that got hit the hardest nationwide. Investors can pre-qualify to establish eligibility so they can bid on transactions during this initial phase. Qualified investors will be allowed to purchase foreclosed properties but they are required to rent these out for a specified number of years. The hope is that this rental period will provide relief for depressed housing markets that are overwhelmed by foreclosed properties, and will also provide more rental options. This should put the country one step closer to stabilizing communities and maximizing the value of homes.

This REO Initiative is partnered with the U.S. Department of the Treasury, the HUD, the FDIC, the Federal Reserve, Fannie Mae and Freddie Mac. They worked together to find options for selling single-family REO properties that are currently held by Fannie Mae, Freddie Mac and the FHA. During this first phase, Fannie Mae will offer pools of rental properties, vacant properties and non-performing loans focusing on the areas that were hit the hardest.

Those that have pre-qualified to receive more information about these properties must meet the following criteria: (a) financial wherewithal to acquire the assets; (b) sufficient experience and knowledge in financial and business matters to analyze and bear the risks of the investment opportunity; and (c) agreement to keep certain information about the REO and related matters confidential.

Investors can register at the FHFA's REO Initiative page.

Read More

Reported $25 Billion Deal Reached between Banks and AGs

As we mentioned yesterday, this $25 billion deal between the five largest banks in American and U.S. State Attorneys General nationwide will make it easier for those facing foreclosure to restructure their loans. The final draft of this agreement has been submitted for review.

This settlement would apply to privately-held mortgages that were issued between 2008-2011. It does not, however, apply to loans held by GSEs Fannie Mae or Freddie Mac. This means that nearly 750,000 homeowners could get the principal amount of their mortgages written down by $20,000.

Under the terms of this deal, $17 billion would be used toward reducing the principal that homeowners owe on their mortgages. Also, $5 billion would be placed in a reserve account for various state and federal programs. Part of that money would cover checks that will be sent to nearly 750,000 homeowners that were affected by deceptive foreclosure practices, amounting to $1,800 each. The final $3 billion would be dedicated toward the refinancing of homes nationwide at 5.25 percent. This proposal is expected to be adopted within a few weeks.

Read More

2011 Foreclosure Rate Down 34 Percent

We all know that housing foreclosures have been a big problem for Americans in the past few years. With the shaky economy and high unemployment rates, many people have had issues paying off their mortgages. In 2011, however, it looks as though Americans were given a bit of collective relief. Both the total U.S. foreclosure activity and the U.S. foreclosure rate were at their lowest annual level since 2007. That is good news.

According to RealtyTrac's Year-End 2011 U.S. Foreclosure Market Report, there were nearly 2.7 milliion foreclosure filings in 2011. This includes default notices, scheduled auctions and bank repossessions. These were reported on nearly 1.9 million properties, which is actually a decrease of 34 percent in total properties compared to 2010.

This means that approximately 1 in 69 houses had at least one foreclosure filing during 2011.

The reason for this decrease in the total number of foreclosures may have more to do with the dysfunctional foreclosure process than anything. Right now, many houses are hanging in limbo. It seems as though all the paperwork has been a problem, leaving delinquent mortgages at a standstill. However, lenders are finally starting to get some of these delayed foreclosures moving. This may boost foreclosure activity in 2012.

Read More