Subprime Mortgages, Foreclosures and Short Sales

Subprime Mortgage Companies Speak Out
July 29, 2009

The Independent Mortgage Servicers Coalition, which is involved in $700 billion of the riskiest loans in America, is warning federal officials that the foreclosure prevention effort is essentially an unfounded government mandate that requires them to pay out far more to bond investors than the government subsidies will cover. The result is that financing costs are increasing, according to the group.

Kentucky Takeaway: The road to market stability is fraught with perils on all sides, and it remains anyone’s guess as to when it all will shake out, bottom out, and begin to resolve itself.
http://www.reuters.com/article/businessNews/idUSTRE56R6UH20090728


In Favor Of Foreclosure
July 29, 2009

This article weighs the idea that foreclosure is a more expensive option for the lender than working out a modification. While this is true regarding borrowers who could catch up on their payments following a modification, lenders understandably would prefer not to modify loans for borrowers who could catch up on their own or borrowers who will continue to default even after a modification is in place.

Kentucky Takeaway: Ultimately, homeowners need to be able to afford their homes. For people within a certain range, modification makes sense; however, some Kentuckians will need to come to terms with their new personal realities of what an affordable home is for them.
http://www.examiner.com/x-612-Residential-Real-Estate-Examiner~y2009m7d29-Lenders-sometimes-favor-foreclosure-over-helping-owners


Putting The Short In Short Sales
July 29, 2009

This is an Inman interview with Re/Max’s CEO Margaret M. Kelly. She expects the foreclosure rate to be reduced this fall after the Treasury department releases its plans for streamlining the short sale process. This is good news to Kelly, who has been frustrated by a short sale process that has left out good buyers and disappointed motivated sellers.

Kentucky Takeaway: A streamlined short sale process would facilitate more positive action in the investment property marketplace.
http://www.inman.com/news/2009/07/29/remax-ceo-expect-shorter-short-sales


Foreclosure Hotline for Kentucky
July 28, 2009

The Kentucky Homeownership Protection Center expects 1,000 foreclosures in Covington, Ky this year. The state has housing counselors available on a free and confidential basis.

Kentucky Takeaway: If you feel like you could be slipping toward foreclosure, the state of Kentucky (Kentucky Homeownership Protection Center) has a hotline number where you can receive help: (866) 830-7868.
http://www.examiner.com/x-14932-Cincinnati-Business-Insight-Examiner~y2009m7d28-Fearing-foreclosure--hotlines-for-help-in-Kentucky--Ohio


Foreclosure Prevention To Accelerate
July 28, 2009

With over 200,000 loan modifications already started, federal officials set a goal of 300,000 more by November 1st with mortgage industry executives. Meanwhile, the Mortgage Bankers Association is complaining that the Obama administration is continuing to announce plans prior to the planning of implementation details and prior to when lenders can fulfill the plans, resulting in confusion and frustration from homeowners to lenders.

Kentucky Takeaway: More struggling Kentuckians should be eligible for loan modifications and should try to take advantage of it in the next few months.
http://www.bloomberg.com/apps/news?pid=20601103&sid=awumbnAlF4NA