Loan Mods Battling Foreclosures

July 1, 2009

Second quarter numbers display another increase in loan delinquency rates, though not as dramatic as in the first quarter. The good news, though, is that loan modifications are up, and that may show dividends come next quarter.

http://www.mortgagenewsdaily.com/07012009_mortgage_performance_fighting_rising_rate_of_foreclosures_with_loan_modifications.asp

A Less Than Stimulated Residential Property Market

July 1, 2009

Increasingly, fingers are pointing at the banks for failing to loosen up credit lines as a cause for the housing market’s continued sluggishness. With over two million unoccupied homes on the market and residential home loans at a low not seen this millennium, banks remain tight with loan terms. Furthermore, unemployment data suggests there won’t be much improvement in third or fourth quarters, either.

http://www.propertywire.com/news/north-america/us-property-market-200907013279.html

Brief Q&A on REOs

July 1, 2009

Yes, REOs have been foreclosed, and yes, they can be good deals for the next buyer. Obtaining an REO at market value can be a good value in an adjusted market like we have currently.

http://www.sun-sentinel.com/orl-foreclosure-reo-experts,0,4325624.story

Freddie Mac Jacks Up LTV Ratio

July 1, 2009

HAR mortgages now have 125% LTV ratios (up from the previous 105%). The increase is expected to be especially helpful to those in areas where property values have declined the most. If more current homeowners find loans and terms that allow them to succeed, the sector will obtain greater (and sorely needed) stability.

http://www.freddiemac.com/news/archives/singlefamily/2009/20090701_relief-refi-125.html?camp_id=OTC-rssfmnc&attr=rssSFam&Sort=MostRecent

Forgiving Mortgages

July 1, 2009

The Milken Institute has rolled out a plan intended to keep those with the least stakes in their homes from completely walking away. The plan would reward homeowners for staying current on loans by forgiving portions that are currently underwater.

Source: Los Angeles Times, Tom Petruno (06/27/2009)

http://www.realtor.org/RMODaily.nsf/pages/News2009070106?OpenDocument&WT.cg_n=RMO&WT.cg_s=RSSDaily