Category Archives for "Loan Modification"

News and information relating to Loan Modifications

Homeowners of distressed properties may have some relief in sight

“Treasury is currently reviewing a proposal to aid distressed homeowners by allowing a short sale of mortgage notes from mortgage-backed securities (MBS) trusts to new investors.” (DSNews.com)

Jordan D. Dorchuck of American Home Mortgage Servicing, Inc. developed the proposal in hopes of making the lives of distressed homeowners much easier with the use of principal reduction modifications. He believes that the plan will reduce the losses and increase benefits for both the investors and the borrowers, as long as it refrains from being driven by consumer demand.

Administration Considering New Housing Policies

Talking Short Sales with The Mecklenburg Times

About a week ago, The Mecklenburg Times turned its focus from the devastation of homeowners in today’s market, to the success of the real estate agents behind the scenes, working their hardest to sell these homes and get their clients the best deals out there. Click on the article below to continue reading. 

Struggling Homeoweners Get Rewarded!

Just when you thought that owning a home in this current market wasn’t the best decision, the Homeowner Reward Co., of PMI Group, Inc. wants to remind you that you did the right thing!

PMI realizes that it’s not the homeowner’s fault that their market was hit harder than most others, so it is now offering the RH Reward to help those who owe more on their mortgage than their home is worth.

Read the article below for more information on the program!

PMI Group, Inc. Launches Reward Program for Homeowners

HAMP Stats Increase in November with Permanent Mods Topping 500K (DSNews)

The following article is from DSNews.com regarding HAMP Stats Increasing, Published December 22, 2010:

The federal government’s principal foreclosure prevention program has put 504,648 distressed homeowners into permanently modified loans since it was launched in March 2009. Treasury released new numbers for the Home Affordable Modification Program (HAMP) Wednesday, and in addition to crossing the 500K threshold, the data show that servicers stepped up their use of the program last month.

Permanent modifications were granted to 30,000 borrowers in November, 26 percent more than in October. The number of trial modifications started also rose. In November, 31,300 new trial plans were initiated, up about 20 percent from the previous month.

Treasury says servicers are continuing to work through the backlog of HAMP trials that have lasted six months or more. The number of these aged trials has no fallen below 50,000.

According to Treasury’s report, for those borrowers in active permanent modifications, the median monthly savings is $524.41, or 37 percent of the median payment before modification. Aggregate reductions in monthly mortgage payments for borrowers who received permanent modifications are estimated to total $4.1 billion.
Critics of the program, though, point to the fact that at its current pace, HAMP will fall far short of the administration’s goal of helping 3 to 4 million homeowners save their homes from foreclosure. The Congressional Oversight Panel warned last week that “absent a dramatic and unexpected increase in HAMP enrollment…an untold number of borrowers may go without help.” The watchdog group estimates that the program will ultimately help only 700,000 homeowners.

The program has also been plagued with large fallouts, as homeowners in trial plans were unable to stay current on their modified payments or failed to meet program requirements for transitioning to permanent status. Of the 1.43 million trial plans extended, over half have been cancelled. In addition, 45,000 permanent mods have been terminated from the program.

Still, federal officials assert that HAMP has laid the groundwork for more sustainable modifications through servicers’ own proprietary programs and other constructive foreclosure alternative options.

For the full article, click here.
To speak with a professional about assistance with selling or purchasing a short sale home, contact us.

Worried foreclosure is coming?

LPS Data Shows GSE Foreclosure Starts Are Accelerating

Fannie Mae and Freddie Mac are beginning to initiate foreclosures at a faster pace.

According to a new study from Lender Processing Services (LPS), GSE foreclosure starts have been accelerating and are currently at all-time highs. From May to June, foreclosures initiated by Fannie and Freddie jumped 21 percent.

The GSEs’ prime borrowers are performing the worst. Foreclosure rates among the agencies’ prime loans have soared nearly 400 percent since January 2008, with a notable hastening tracked over the last two months, LPS reports. That increase is second only to the swell seen in non-agency “jumbo” mortgages, for more than $729,750.

LPS says the recent momentum in GSE foreclosure starts coincides with Home Affordable Modification Program (HAMP) cancellations, with most of the volume concentrated in the very late stages of delinquency (six-plus months).

The latest HAMP statistics from the Treasury showed an extremely elevated number of cancellations from trial plans, as many borrowers who received temporary modifications have not been able to verify their income or have missed trial payments.

As of the end of June, 520,814 HAMP trials had been cancelled – more than have been converted to permanent status. In addition, 8,823 permanent modifications have been cancelled under the federal program.

In contrast, LPS says foreclosure starts have remained relatively stable over the last several months for the rest of the industry. The company puts the overall foreclosure rate as of the end of June at 3.65 percent, but notes that foreclosure inventories are still elevated.

According to LPS’ market data, total foreclosure starts for 2010 are at 1,456,000. That stat is lower than 1,682,000 for the same period in 2009, but up from 1,245,000 in the first half of 2008.

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