Posts Tagged ‘foreclosure’

Dysfunctional Home Loan System Stacked In Favor of Servicers

In Legal on March 8, 2011 at 6:18 am

Huffingtonpost reports about a proposed “settlement agreement” between Federal and state regulators and the top home loan servicers in the country.

Whether any of the largely common sense “reforms” end up in a final agreement or otherwise get adopted by the industry in any meaningful way remains to be seen. In the meantime the reporting and attention on the abuses in the system are welcomed and deserve more attention.

For years we have been told that the foreclosures are the fault of greedy borrowers who overextended themselves. Instead banks have been acting in their own best interest pushing homeowners toward default and even in many cases requiring default as a precondition to loan modification consideration. The result has been perverse:

servicers are instead forcing through foreclosures, racking up fees through prolonged foreclosure proceedings, and effectively disregarding the rights of investors and borrowers in pursuit of their own profit.

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AZ to make lenders prove chain of title

In Legal on February 26, 2011 at 8:08 am

Famed mortgage meltdown maverick commentator Martin Mandelman has an indepth report (rant?) on the recently passed AZ Senate Bill 1259 which if signed into law, would among other things, require that the foreclosing lender record a chain of title summary document showing the original and current note holders and all transfers in between.

Speaking directly to Paul Hickman, chief executive officer of the Arizona Bankers Association, who is against the passage of this bill, Mandelman properly points out:

And by the way, Mr. Hickman… the whole chain of title thing is already the law in Arizona and elsewhere. This new law just requires your membership to follow the existing laws and actually make sure the chain of title is not destroyed by banker incompetence or blatant disregard for the law.

Yes, chain of title is required. As a basic element of the foreclosure action only the true party in interest may bring the action and for too long MERS and thirds party loan servicers were able to get away with cutting out a fundamental step in the process – to identify the plaintiff.

Mind boggling.

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Homeowners stay in home 17 months after default

In Data on February 21, 2011 at 7:23 am

Many news sources are reporting on the latest figures from LPS Applied Analytics a real estate database company who owns the industry’s largest database of mortgages covering more than 39 million active first and second mortgage loans, including portfolios serviced by nine of the top 10 mortgage servicers in the nation.

According to LPS:

“the number of days that the average borrower in foreclosure went without making a payment stretched from 410 in January to 507 in December, … before the foreclosure crisis, the norm was more like 250 days, says Herb Blecher, LPS senior vice president.”

There is no doubt that with this type of lag time built into the system there will continue to be downward pressure on home prices throughout 2011.

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Foreclosures up in 2011

In Data on February 14, 2011 at 6:26 am

Following the report that a Record 2.9 Million U.S. Properties Receive Foreclosure Filings in 2010 the impact of those foreclosures is working its way through through the system.

RealtyTrac reports that foreclosure activity is up 1% in January. According to the report lenders foreclosed on 78,133 U.S. properties in January, up 12 percent from December.

Among the leaders is Nevada, of course:

Nevada bank repossessions increased 16 percent from the previous month, helping the state maintain the nation’s highest state foreclosure rate for the 49th straight month — despite month-over-month decreases in default notices and scheduled auctions. One in every 93 Nevada housing units received a foreclosure filing in January — more than five times the national average.

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JPMorgan says ‘Sorry’ for breaking the law and Foreclosing on Soldiers

In News on February 10, 2011 at 9:09 am

JP Morgan failed to comply with key provisions of the Service Members Civil Relief Act, including honoring a 6 percent cap on mortgage interest rates and a prohibition of imposing other fees while a service member is on active duty and for one year after they are discharged.

Instead, JP Morgan completely ignored the law, continued with illegal fees, forced American heroes into foreclosure and required them to file lawsuits to defend themselves and enforce the law. The big banks keep getting away with these reprehensible bully tactics and destroy American’s lives in the process.

Ask your Congressman where are the charges, penalties and punishments for these flagrant violations of the law designed to protect homeowners?

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Home prices to fall more in 2011

In News on February 9, 2011 at 7:41 pm

The Economist reports thet the complete failure of Obama administration policies designed to combat the housing crisis means that there will be more foreclosures in 2011 than in 2010. Not exactly a record we want to set.

The HAMP program anticipated to permanently modify 3-5 million mortgages has only helped a little more than five hundred thousand. The problem seems to be that the administration completely misunderstood the characteristics of the “at risk” homeowner and designed policies that excluded anyone earning a decent income despite being hundreds of thousands of dollars underwater.

The continuing high level of foreclosures is expected to continue to put downward pressure on home prices.

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America’s housing market: Suspended animation | The Economist

51% of homes in Vegas Purchased with Cash

In Data on February 9, 2011 at 6:14 am

Why do property values continue to drop in Las Vegas? Channel 12 Action News Las Vegas reports on the latest stats released by the Greater Las Vegas Association of Realtors (GLVAR) indicating that cash buyers dominate the Las Vegas home buying market. Cash buyers are so prominent in the Las Vegas housing market because only a tiny percentage of all home sales of homes result from traditional arms length buyer financed transactions. January 2011 saw 49.8% bank owned transactions and an additional 26.6% short sales.

Recovery is not going to happen in the Las Vegas area until foreclosures make up a smaller and smaller percentage of the housing market.

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UNDERWATER – 71% of mortgages in Clark County, NV

In Data, News on February 8, 2011 at 2:41 pm

Chilling stats reported by USAToday show that more than 50% of residential mortgages in more than 17 counties are underwater.

Topping the list is Las Vegas.  As of September 2010, in Clark County, Nevada, home of Las Vegas, North Las Vegas and Henderson, 71% of mortgages are underwater.

Thats 71% of all remaining mortgages after the foreclosure crisis has already wiped out 10s of 1,000s of mortgages from 2007 through today.

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