GMAC halts foreclosures on possible document mishandling

September 21, 2010 by · Leave a Comment
Filed under: Real Estate News 

This could be interesting.  Ally & GMAC basically were sending documents to the court that were stated as verified when they actually were not.   In defense of GMAC, they most likely got the basic correct regardless like balance and time the borrower has been in default so they could be a non-issue once they straighten out their process and get corrective action in place.

The real question is when they have provide proof of the actual mortgage note that proved a legitimate claim on the home in the case of a default.  Because of the securitization of these mortgages and the breakneck pace that these loans were originated, this is a very valid question and some borrowers have challenged this and won their case because the person foreclosing didn’t actually have the note.

Read more

Foreclosed homes sell at 27% discount in U.S. as REO supply increases

July 2, 2010 by · 1 Comment
Filed under: REO News 

Almost a 30% discount is nothing to shake a stick at when purchasing a home from foreclosure.   Prices are still high for where the economy and market is at in 2010.   With unemployment guaranteed to rise higher and the market selling off because of the debt crisis and uncertainty, we should expect more foreclosures in the coming years.

Home prices will continue to fall and will most likely stabilize near the pre-bubble prices of 2002.  Too many jobs have been sent over seas and our industrial section has been reduced to a point where the broad portion of the real estate market is priced too high for most people who would be looking to own a home.  We should look at this continuing correction as a positive move for the future.   The quicker we let the market correct, the faster a durable recovery in the U.S. real estate market will take place.

We must remember that over the life of a 30 year mortgage, you are paying between 2.5-3 times the price of the home through interest charges to the bank.   A dollar saved on price will save you an additional $1-2 dollars in interest over the life of the loan and that last thing we need to do is pay more than we have too for borrowing money.

Bloomberg – Homes in the foreclosure process sold at an average 27 percent discount in the first quarter as almost a third of all U.S. transactions involved properties in some stage of mortgage distress, according to RealtyTrac Inc.

Read more

Bank of America boosts staff handling troubled loans by 2,000

June 24, 2010 by · Leave a Comment
Filed under: Real Estate News 

This is the reality for what is needed to handle this real estate crisis.  We have chosen not to let people default so home will be foreclosed on and that would bring prices down across the board.   We have chosen the path of modify home loans and re-writing principal balances.   I still support homeowners that actually have the means to support the mortgage and we should keep them in their homes.  If not then we need to face the fact that the home needs to be foreclosed and put back on the market at a fair value.

Hopefully the 18,000 employees that BofA has put in this division will help move through the massive backlog of defaulted homes they have on their books.   Currently interest rates are extremely low levels so if people can refinance out of their high interest rate loan, this is the time to take advantage of this opportunity.

Bloomberg – Bank of America Corp., the second- largest U.S. home lender, added 2,000 employees since April to work with borrowers having trouble paying their mortgages, a senior executive said.

Read more

San Francisco Home Prices Fall 41% on Foreclosures

May 21, 2009 by · Leave a Comment
Filed under: Real Estate News 

This headlines says it all.  Bottom line is that home prices are too expensive and until they come to a realistic level then we will continue to have turn-over in the real estate market through the foreclosure market.  Heck, if the S.F. price fall some more, I might even consider moving their (But I still am not happy with there state state setup, it really adds up).   

News (Bloomberg):

San Francisco Bay Area home prices fell 41 percent in April from a year earlier as foreclosures accounted for almost half of all sales, MDA DataQuick said.

Read more

Barney Frank wants to shift TARP funds for foreclosure aid

November 18, 2008 by · Leave a Comment
Filed under: Real Estate News 

After Hank Paulson released that he was going to change course and not use the bailout funds for bad assets or partial continued capitalization of the banking system, he was instead going to focus on credit card, auto and college loan debt to try and restart normal lending.  We now see what their purpose was and people are not happy at all.  Frank wants to see homeowners helped with our taxpayer monies.

 Personally, I don’t see why any money is needed to get lenders to modify their mortgage portfolios.  You would think if it was in their best interest to keep people in their homes to avoid foreclosure costs then they would do it regardless. My vote is if the borrower has an income that supports a normal fixed rate payment then they should stay and if not then they should be foreclosed on.


 The chairman of a key U.S. congressional committee said on Tuesday he expects a change in the Bush administration’s resistance to spending money from a $700-billion bank bailout fund on reducing foreclosures.

Read more

« Previous PageNext Page »