Posts Tagged ‘foreclosures’

The National Groups, the parent company of the National Default Servicing LLC suite of mortgage service operations, announced that Mitchell Oringer and Richard T. Fikani have joined the firm, filling two new leadership positions. In response to the increased volume of distressed borrowers and the growing number of foreclosed and REO properties nationwide, The National Groups has been expanding its efforts to help reduce the exposure of both “At Risk” borrowers and "Value Challenged" collateral.Read more

The delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 9.47 percent of all loans outstanding as of the end of the fourth quarter of 2009, down 17 basis points from the third quarter of 2009, and up 159 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 50 basis points from 9.94 percent in the third quarter of 2009 to 10.44 percent this quarter.Read more

In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, U.S. Department of Housing & Urban Development (HUD) Secretary Shaun Donovan has announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure.Read more

The latest foreclosure figures from First American CoreLogic show a growing divergence in what’s happening to problematic mortgages in Orange County.

The ratio of bank-owned houses and condos, known as REO, against all outstanding first mortgages declined for the 13th straight month to just 0.26% in September — the lowest in 26 months. That sounds like a good thing for the housing market and economy.

But the number of bad loans in limbo continues to escalate.

In fact, the proportion of 90-day late loans has increased each month for more than three years (beginning in April 2006) and hit 6.96% in September.

The chart below shows REOs, 90-day lates, and properties with some kind of foreclosure filing. (Note: 90-day lates include the other two categories.)

The chart reflects a number of trends. For one thing, more troubled properties are selling at auctions, known as trustee’s sales, and thus are not going back to the bank as REO.

Sam Khater, senior economist with First American CoreLogic, said in an email:

The reason REOs have declined is that flow of distressed properties into REO has been artificially restricted due to local, state and GSE foreclosure moratoria, loan modifications and servicer backlogs. This has led to a drop in the supply of REO properties, while at the same time sales (including REO sales) increased due to the artificially low rates and first-time homebuyer tax credits, which further depleted the supply of REOs. This dynamic has led to the rapid improvement in home prices over the last six to eight months.

However, the mortgage distress is high and rising as is evident by the 90+ day category, which means the pending supply is building up due to high levels of negative equity and rising unemployment. So we have a situation where at the back end (ie REOs) it appears as if it’s getting better, but it’s really a mirage as we know that the pending supply pipeline default (ie 90+ day DQs) is looming larger.

Yup, at some point, we should see more short sales and foreclosures. Maybe early next year?

More from this blog…

• Is an interest-only loan safe these days?
• These homes are about to be foreclosed
• FHA’s finances are still a mystery
• How about a tax credit for ‘responsible’ homeowners?
• Refi demand up, purchase down on drop in rates
• Price rebound parallels foreclosure drop
• Foreclosures just 4% of homes for sale
• Cash-out refis at 6-year low
• Minorities get fewer mortgages. But is that bad?
• Loan aid firms skirt ban on advance fees

Post from: Mortgage Insider

Steve Thomas at Altera Real Estate in Aliso Viejo reports that the number of O.C. distressed properties (homes listed by agents as foreclosures or short sales) was 2,616 last week, -150 vs. two weeks earlier or a -5% change. Some more facts:

• As a percent of all listed homes for sale, distressed properties were 29% of the market last week vs. 31% two weeks earlier and 40% one year ago.
• There were just 331 foreclosures on the market, down 11% from two weeks earlier and less than a third of the peak 1,249 foreclosures for sale in early August 2008. Demand, the number of new pending sales within the last month, for foreclosures was 614 last week.
• “The problem right now is that there is tremendous demand for foreclosures, just not enough new foreclosures hitting the market,” Thomas said. He estimates at the current pace of sales it would take just two weeks to sell all the foreclosures for sale, compared to 1.42 months last year.

Here’s a look at various slices of the O.C. market as of last Thursday: total inventory listings; distressed property listings; and the share distressed listings have of total inventory supply on a percentage basis in each niche …

More from this blog…

• Option ARM threat already here?
• Lending still depressed. Bad sign for economy?
• Should loan-broker pay be limited?
• Loan broker pay under fire
• D.A. raids Ladera homes in loan-aid scam probe
• These O.C. homes are about to be repo’d
• Democrats renew push for Consumer Finance Agency
• District Attorney steps up real-estate fraud investigations
• O.C. foreclosure starts climb as inland may be hitting bottom
• Foreclosure flip

Post from: Mortgage Insider