Category Archives for "REO/Foreclosures"

News and information relating to REO’s/Foreclosures

Fannie Mae Unveils an Interactive Video to Prevent Foreclosure!

In efforts to help Homeowners avoid foreclosure, Fannie Mae has developed an interactive video that people can use to gain more knowledge about the situation. Read this DSNews.com article about this new aid with homeowning below:

“The Air Force uses visual flight simulators to train its pilots on proper procedures and prepare them for the actual experience. Virtual reality simulation models are used as therapeutic techniques to help people overcome their fears or uneasiness about certain real-life situations.

By personally interacting with a replicated environment, individuals become more at ease when they actually encounter the event and feel better prepared to make the right decisions. Fannie Mae is applying this same idea to foreclosure prevention.

The GSE has unveiled an interactive multi-media tool called WaysHome, designed to educate distressed homeowners about their options to avoid foreclosure, help them to make informed decisions, and motivate them to take action and seek assistance.

‘In 2011, an estimated four million homes will be at imminent risk of foreclosure,” said Jeff Hayward, Fannie Mae SVP. “As we enter a new year, the company is expanding its efforts to help struggling homeowners avoid foreclosure — WaysHome is an innovative tool to help achieve this goal.’

The interactive WaysHome video goes live on Thursday on Fannie Mae’s KnowYourOptions Web site and is free to use. The innovative technology allows homeowners to put themselves in real-life situations that they can identify with, make financial choices, and immediately see the outcomes of those actions.

The video is set in a neighborhood that’s been hit hard by the housing downturn. Real actors play three residents of the neighborhood, each in financial distress: one is struggling to keep up with her mortgage payments and is at risk of default; one has fallen behind on his mortgage and is thinking of walking away; and one has seen the equity of his home erode and now owes more on the loan than the property is worth.

Homeowners select to play one of the residents and, as their stories unfold, make important financial decisions for them and see how the consequences of these decisions play out. Fannie Mae provides helpful tips, tools, and links during the process, and users have the ability to go back and revise their decisions should their choices lead to a negative outcome.

‘With a variety of financial hardships and other circumstances affecting homeowners across the country, making educated decisions is more important than ever,’ Hayward said.

‘It’s a travesty when people lose their homes because they don’t know or understand their options,’ he added. ‘Homeowners who are proactive about working with their mortgage company, housing counselors, or using consumer tools like WaysHome have a significantly better chance of finding a solution that allows them to avoid foreclosure.’

Through video reenactment, WaysHome allows homeowners to experience scenarios that address a range of options for averting foreclosure that include repayment plans, forbearances, modifications, deeds-in-lieu, and short sales, with the ultimate goal of empowering borrowers to find the right housing solution for their situation.

In an effort to connect with homeowners who have not yet reached out for help, Fannie Mae will be promoting WaysHome on its corporate Web site, through the KnowYourOptions consumer website, and at a series of events in partnership with local faith-based organizations, non-profits, and industry groups in metro regions. Collateral materials and Web site content will be made available at no cost through Fannie Mae’s mortgage servicing and community partners.

Meg Simeone, Fannie Mae’s VP of marketing, commented, ‘We’ve got to try as many options as we can to reach as many borrowers as we can.'”

December 14, 2010

2010 Analysis of Foreclosure Inventory by State

2010 Analysis of Foreclosure Inventory by State

Data covers about 46 million first-lien mortgages on 1-4 unit residential properties. The subprime sample of the survey totaled about 6 million loans. Using Census Bureau and other industrey data, the NDS is estimated to cover around 80 to 85 percent of the approximate 50 million loans outstanding in the market.

From the National Association of Realtors

First HUD Home Workshop: A SUCCESS!

Yesterday evening, December 8, 2010, Showcase Realty held the first of monthly workshops to inform the local agents and community about buying and selling distressed properties. The workshop was titled, “Success in Distress”. It was a free event, but donations for the Boys & Girls Club were taken up.

There were 50 people in attendance, including keynote speakers, and we raised almost $800 for the Boys and Girls Club. This exceeded our expectations of the first workshop and we are looking forward to bigger and better workshops in the future!

We want to say thank you again to our wonderful sponsors, Wells Fargo Home Mortgage, RJR Insurance Agency and K&T Construction Company, and speakers. Without these very special people the workshop would not have been possible!

Our next workshop will be January 24th, 2011, 2 p.m. – 5 p.m. at the Marsh Road Boys & Girls Club in Charlotte, NC.

To register for this workshop go to http://hudworkshop.eventbrite.com

For more information regarding Showcase Realty or to speak with a CDPE about finding a home or getting help with your current situation, www.CharlotteREOBroker.com

Distressed Homes 25% of Third-Quarter Sales: RealtyTrac

The following is an excerpt from an article written by Carrie Bay for DSNews:

New data released by RealtyTrac Thursday shows that distressed homes – including those in default, scheduled for foreclosure auction, and REO – accounted for 25 percent of all U.S. residential sales in the third quarter.

These properties sold at an average of 32 percent below the price of their non-distressed counterparts. RealtyTrac says that’s the highest distressed-property discount it’s seen since the fourth quarter of 2005.

According to RealtyTrac’s data, the average sales price of homes in the process of foreclosure or bank-owned was $169,523 in Q3, down 2.46 percent from the previous quarter. By comparison, the tracking company says the average sales price of non-distressed properties was $249,721, up 6.42 percent from the second quarter.

RealtyTrac reported that 113,933 REO homes sold to third parties during the July to September period. That’s 26 percent fewer than were sold in the previous quarter and down nearly 35 percent from the third quarter of 2009. REOs sold for an average discount of about 41 percent.
A total of 74,815 pre-foreclosure, typically short sale, transactions were completed in the third quarter, down 24 percent from both the previous quarter and year-ago levels, based on RealtyTrac’s findings. Pre-foreclosure sales went at an average discount of 19 percent.

All in all, 188,748 U.S. properties in default, scheduled for auction, or bank-owned sold to third parties last quarter. RealtyTrac says that figure represents a decrease of 25 percent from the previous quarter and is 31 percent below the third quarter of 2009.

Read More

To speak with a certified agent who deals with foreclosures, short sales and distressed properties, click here.

Foreclosure Freeze is Thawing! Important news for buyers & sellers

According to Fannie Mae, they are lifting some of the holds on eviction actions and REO closings that were put in place in September 2010. The holds were placed in response to the issues of possible defects with affidavits submitted in foreclosure actions. This means the homes that were removed from the market will be placed back on the market and closings will be able to proceed over the next week as Fannie Mae works through lifting the holds.

The following are instructions for brokerages Fannie Mae has issued to inform them of the current situation and how to proceed.

“Effective November 24, 2010, Fannie Mae is issuing the following instructions for REO properties relating to all loans which were formerly serviced by GMAC, Bank of America, PNC Mortgage Corporation, JP Morgan Chase, One West Bank and Sovereign Bank in all states previously on hold:

1. Our prior guidance with respect to evictions and lockouts for each of the affected servicers remains in effect at this time.

2. Proceed with scheduling and holding the closings of Fannie Mae REO property as agreed between the parties. If a title issue arises with respect to the potential defect of an affidavit used in the underlying foreclosure, the Closing entity will identify the issue in AMN as they would any other title issue and will work with their title representative for further instructions.

3. Please reach out to all buyers that have been awaiting closing to ensure that they can now move forward. They may reschedule to an earlier date if needed. It is possible that their loan and/or closing files will need to be updated before their closing can be scheduled.

4. Please reach out to those buyers that elected to terminate their contracts to determine if still interested in purchasing the property. All details of the contact and response must be noted in AMN. We require response/update in comments within 72 hours of this notice if the buyer associated with the terminated contract wishes to re-engage.

Over the next week, impacted properties will be removed from their current “Unable to Market” status in AMN and will again be available to market.”

For more information regarding the foreclosure freeze or for help buying a home that was taken off the market due to a title defect, please click here.