Feds Meet With Bank Heads About Foreclosure Prevention

Banks Seek To Avoid Some Mods
July 28, 2009

It is difficult to blame a bank for not wanting to modify a loan from one unpayable amount to another. For some homeowners, no mod will be sweet enough to allow them to keep their homes. Furthermore, according to a Boston Federal Reserve Bank report, one third of those who are two payments behind on their mortgages would be able to catch up on their own, given the chance, another factor giving banks pause before engaging in loan modifications.

Kentucky Takeaway: Banks are in the business of making money, and (now that they have lost so much money) they are really in the business of making money. Expect their self-sacrificial participation in curbing the foreclosure crisis to be done while kicking and screaming.
http://www.timesoftheinternet.com/95940.html


Foreclosure Prevention Hitting Snags
July 28, 2009

Evidence appears undeniable that the Obama administration’s plan to prevent foreclosures has hit numerous obstacles along the way. Banks are either unwilling or lack the infrastructure to process the number of loans they need to process in such a short amount of time. Though some banks are just now implementing the full plan, some strides have been made, and many more could be in the future, especially as pressure increases on the lenders.

Kentucky Takeaway: The bottom line for Kentuckians (as with everyone else) is to stay current on mortgage payments whenever possible. It is possible to receive assistance without falling into jeopardy, so no one should intentionally fall behind on loan payments.
http://online.wsj.com/article/SB124873920406585271.html?mod=googlenews_wsj


Federal Housing Leaders Meet Bank Heads
July 27, 2009

Federal officials and leaders of 25 mortgage companies are meeting today in hopes of improving the foreclosure crisis system. The banks are expected to agree to up their support behind federal programs designed to help families refinance and stay in their homes.

Kentucky Takeaway: For those families who are depending on the Obama administration’s programs to remain in their homes and avoid foreclosure, this meeting is a sign that banks will be held accountable for adhering to federal demands.
http://www.reuters.com/article/ousiv/idUSTRE56Q5JC20090728

Bank-Owned Properties Are Selling
July 27, 2009

This article delves into Florida and how the foreclosure properties are shaking out in that area. Banks certainly do not want the responsibility of owning these homes, so they are being offered to the highest cash bidders.

Kentucky Takeaway: With lower (but not drastically so) housing prices, buyers will be tempted further to enter the market. As credit loosens, more of the $250k+ will begin to move, as well.
http://features.csmonitor.com/economyrebuild/2009/07/27/what-the-housing-turnaround-will-look-like/


Foreclosures Affect Property Values
July 27, 2009

According to a study performed by the University of Connecticut, homeowners within 300 feet of a foreclosed home experienced decreased property values by 1.3%. Those who live in condos are burdened, as well, as maintenance fees are absorbed by the group whenever one fails to pay.

Kentucky Takeaway: Kentuckians with recently foreclosed neighbors may already know what those with struggling neighbors fear: people simply cannot maintain properties when they cannot even afford mortgage payments. The effects will snowball throughout the state until new owners are found or current owners reacquire stable income levels.
http://www.myfoxny.com/dpp/your_money/housing/090727_Foreclosures_Your_Property