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Only 4% of Loan Modifications Work!
Posted on December 11, 2009
Loan Modifications Coming Up Short
Only about 4 percent of the home owners who signed up for loan modifications—fewer than 31,000—had received them by the end of November, according to figures released Thursday by the U.S. Treasury Department.
Of the largest lenders, Bank of America Corp. had the worst results. It completed a total of 98 modifications. With 7,100, GMAC Mortgage completed the most.
Lenders have blamed their lack of success in part on the failure of borrowers to complete the paperwork necessary for the process.
The government says it will expedite its efforts to push through as many modifications as possible.
Source: Associated Press, Alan Zibel (12/10/2009)
Post a Comment : Author: Veronica Hicks
Evaluate the Risks of Buying Into an HOA
Posted on October 19, 2009
Buyers who are considering the purchase of a condominium should inspect the health of the home owner�s association before they close.
The seller should provide the buyer all financial documents relating to the association in time for an attorney for the buyer to review them before closing. MORE >>
Post a Comment : Author: Veronica Hicks
Economist expects California existing-home sales to fall in 2010
Posted on October 12, 2009
I definately believe that this could be the case with the Condo Market ... especially those on the higher end. There are several unknowns about some of the communities in and around the Irvine market that make this a tough call .. Definately a good read ..
Sales of existing homes will fall slightly next year in California as people lose more jobs and cheap foreclosed homes become a smaller part of the market, California Association of Realtors economists predicted Wednesday.
Post a Comment : Author: Veronica Hicks
Deciding to Sell Short is a Business Decisions
Posted on October 2, 2009
When talking to clients I am seeing more and more that people are making decisions to sell a property short more like a business decision. With home values in California SO far below loan values the way many of my clients are starting to think is "Hey .. My condo is valued $200,000 below what I owe on it! It might take me 10 years to make that up! If the value will even come back! And there is no guarantee!"
When funds are limited and jobs are lossed .. clients are deciding that it is worth it to take a hit on their credit scores for a year or two, to get out from under the debt ..
Guess Who's Ditching Their Mortgages
A study of 24 million credit files by national credit bureau Experian and consulting company Oliver Wyman has shown that home owners with high credit scores are 50 percent more likely to deliberately walk away from a mortgage than lower-scoring borrowers.
The industry calls these “strategic defaults” and their numbers grew to 588,000 in 2008, double the total in 2007, and well beyond most earlier estimates.
The study determined:
When funds are limited and jobs are lossed .. clients are deciding that it is worth it to take a hit on their credit scores for a year or two, to get out from under the debt ..
Apparantly the short sale process is becoming more and more of a viable option .. especially with the favorable tax consequences
Guess Who's Ditching Their Mortgages
A study of 24 million credit files by national credit bureau Experian and consulting company Oliver Wyman has shown that home owners with high credit scores are 50 percent more likely to deliberately walk away from a mortgage than lower-scoring borrowers.
The industry calls these “strategic defaults” and their numbers grew to 588,000 in 2008, double the total in 2007, and well beyond most earlier estimates.
The study determined:
- Strategic defaulters tend to go straight from paying their mortgages dependably to not paying at all.
- Strategic defaulters are heavily concentrated in negative-equity markets like California and Florida.
- Two-thirds of strategic defaulters have only one mortgage.
- Most likely to default are home owners with large balances and the highest credit ratings.
Piyush Tantia, an Oliver Wyman partner and a principal researcher on the study, said strategic defaulters "are clearly sophisticated” and look on the decision to default as a business strategy. "Well, I'm $200,000 in the hole on my house, and yes, I'll damage my credit," Tantia says of defaulters.
Source: Washington Post Writers Group, Kenneth R. Harney (09/27/2009)
Post a Comment : Author: Veronica Hicks
Rental Rates are Still in Decline and Landlords Need to Be Creative
Posted on September 29, 2009
Second-quarter apartment stats from rent tracker Axiometrics show that Orange County landlords are aggressively competing for business by essentially doubling the value of concessions -- various freebies including months of rent; cable TV and Internet; to club memberships ..For Details by local city ..
Post a Comment : Author: Veronica Hicks
FHA Approval Requirements NOT Helping Condo Sales
Posted on September 24, 2009
There is a new FHA rule putting an end to "spot approvals" for home loans may make it much more difficult to qualify for a loan for a condo. That same rule may also mean more bad news for condo sellers, already suffering through a bad economy which has sent property values into the Dumpster, since it impedes buyers' ability to purchase. Read More >>
Post a Comment : Author: Veronica Hicks
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