Foreclosure Delays Reach New Records

Foreclosure Delays Reach New Records.

Foreclosure Delays Reach New Records

Delinquent home owners are living in their homes longer, rent-free. Home owners with a loan in foreclosure haven’t made a payment, on average, for 20 months or 599 days--a new record, according to new data by Lender Processing Services Inc. 

Of nearly 1.9 million loans that are 90 or more days delinquent--but not yet in foreclosure--42 percent of the home owners have not made a payment in more than a year, with an average delinquency of 397 days--another record, LPS reports. 

The slowdown in foreclosures was most evident in judicial foreclosure states.  At the current rate of foreclosure sales, judicial foreclosure states would require 111 months to work through inventories of loans that are 90 or more days delinquent or in foreclosure. On the other hand, non-judicial states would be able to clear inventories in about 32 months, according to LPS data.  [California = nearly 3 years to resolve PRESENT distressed inventory, NOT counting future distressed sales]

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Mortgage Debt Forgiveness Act – what is it, how does it work, and when is it over…

Mortgage Debt Forgiveness Act 2007 – 2012

Here is a PDF of the www.IRS.gov web site where I searched for information concerning the mortgage debt forgiveness act.  I don’t post this attachment to give tax or legal advice, but to help struggling homeowners ask better questions to their licensed/certified professionals when weighing the significant elements of a serious decision.  In my experience of closing 72 short sales in the last 2 1/2 years, one of the first things I ask all of my clients to do is consult with their CPA – things are not always so cut-and-dry; however, by doing this, I have found that many tax preparers and CPAs are not well versed with the particular IRS codes governing Short sales (pre-foreclosure sales) and foreclosures – if at all.  As a service to those professionals as a part of their consultation to their clients, I always include the financial analysis we compile to qualify a short sale along with a list of questions to review with their clients including the topics of: insolvency, state income tax, and federal income tax — not to mention whether the property in question was ever refinanced, and if so, what that money was used for (both because it plays into the actual short sale negotiation with the various lenders, but also can have SIGNIFCANT tax implications for the homeowner/property owner).

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Number of short sales on the rise – USATODAY.com

Number of short sales on the rise – USATODAY.com.

 

Bank of America, the largest home mortgage servicer, expects to complete more than 100,000 short sales this year — more than double what it did in 2009, the bank says.

Wells Fargo Senior Vice President J.K. Huey says short sales have been “steady to slightly” up in recent months, partly because there are fewer bank-owned houses for sale in some markets, and that has forced buyers to pursue more short-sale properties.

Short-sale homes, which often remain occupied until sold, tend to retain values better than those that go through foreclosure. That helps values of neighboring homes. …

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OC Register – “Despite turmoil, demand for O.C. homes rising”

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Teaming Up to Fight Short Sale Fraud – Freddie Mac

Teaming Up to Fight Short Sale Fraud – Freddie Mac.

 

In a short sale, Freddie Mac agrees to accept less than a full payoff of a mortgage when the borrower is unable to sell their home for enough to pay off their entire loan. Freddie Mac short sales have risen from about 4 percent of completed workouts in 2000 to nearly 14 percent in 2010….

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White House Weighs Mass Refinancing Plan

White House Weighs Mass Refinancing Plan.

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Chase bank to pay Short Seller $20,000 to complete Short Sale

Recently received our second short sale approval with Chase through a special program where we were able to get the seller a $20,000 bonus (on top of their moving cost assistance of $3,000) to successfully complete a short sale with us for one of the agents we negotiate on behalf of – service re-defined and problems solved.

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Protestors Storm Bank, Upset Over Foreclosures

Protestors Storm Bank, Upset Over Foreclosures.

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ForSalebyOwner.com Founder Uses Agent to Sell Home

ForSalebyOwner.com Founder Uses Agent to Sell Home.

I am a firm believer in hiring the best advocates / experts in a  given field to achieve the best results…

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Short Sale Resource Site by the California Association of Realtors

For anyone who wants factual information / resources for the short sale process in California, the CA Association of Realtors has put together a decent attempt at a short-sale resource website: http://www.shortsalescalifornia.org/consumers/tips  Of course, this is a very complicated situation with many tax/legal implications, and you may want to know what all of your options are.  Did you know there are more than 1 type of short sale? (e.g. Standard single-loan, purchase money short sale, vs. HAFA short sale — see: http://www.makinghomeaffordable.gov/pages/default.aspx )  Did you also know that in some situations, a seller’s lender may offer money to the seller to assist  with relocation expenses?  if you found this post helpful, or if you know of anyone it might benefit – even if it’s to just as a few great questions, please let us know and we’d be glad to assist.  I know it seems counter-intuitive since we make money selling homes, but we’d really prefer that homeowners keep their homes through any of the new up-side-down refinance programs (See: Fannie Mae 125%, FHA 115%, etc.), or loan modification programs (though you really need to know your stuff BEFORE contacting your lender on these) because it stabilizes our market, gives hope and peace to struggling homeowners, and allows buyers greater comfort in the future direction of the industry as a whole.  I will be attaching some forms for consideration – please take a look, and let me know your feedback.   Financial Worksheet1  Homeowner_Consequences_Short_Sale vs_Forclosure

CAR Foreclosure timeline 05112011 

CAR Short Sale FAQ 05112011

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