More prime mortgages default in 3rd quarter
Los Angeles Times
Reporting from Washington - Troubled home loans continued to mount in the nation's banks in the third quarter as even once-solid borrowers increasingly fell behind on their mortgage payments.
For the first quarter ever, the number of homes in foreclosure with mortgages serviced by U.S. national banks and savings and loans topped the 1-million mark, according to figures released Monday by the Office of Thrift Supervision and the Office of the Comptroller of the Currency.
Distressed Short Sellers Locked out of FHA Loans
Short sales are becoming increasingly popular as a means to avoid foreclosure. Even the administration is encouraging both homeowners and servicers to pursue a short sale when loan modifications aren’t a viable optionby offering cash incentives for a short sale transaction under the Making Home Affordable program. But HUD doesn’t look as favorably on short sales for distressed homeowners.
HUD has issued a mortgagee letter to lenders and underwriters explaining that effective immediately, borrowers in default on their mortgage at the time of a short sale or pre-foreclosure sale will not be eligible for a new Federal Housing Administration (FHA) -insured mortgage for three years.
Major Lenders Institute Holiday Foreclosure Moratoriums
As DSNews.com previously reported, Fannie Mae, Freddie Mac, and Citigroup said last week that they were all suspending foreclosure actions during the holidays.
And as expected, other major lenders have followed suit, including Bank of America, JPMorgan Chase, and Wells Fargo.
Bank of America is halting all foreclosure sales and evictions from December 21, 2009 to January 3, 2010. The company explained that the suspension will apply to
mortgages in Bank of America’s held for investment portfolio, as well as for investors that concede to allow BofA to proceed with the moratorium. The institution said it will also comply with other moratoriums from investors who have requested foreclosure holds for a different period of time.
C.A.R. extends its Mortgage Protection Program through December 2010
LOS ANGELES — The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today announced it is extending its Mortgage Protection Program (MPP) for first-time home buyers through Dec. 31, 2010. To date, C.A.R. has approved benefits for 3,122 first-time home buyers at no cost to the consumer.
“We are thrilled to be spending the holidays in a home of our own”
Offered by C.A.R.’s Housing Affordability Fund (C.A.R.H.A.F.), MPP provides up to $1,500 per month, for up to six months, to eligible first-time home buyers who lose their jobs due to layoffs. The funds are intended to help consumers meet their mortgage payment obligations. Qualified co-buyers also can participate in the program, and receive monthly benefits of $750 per month for up to six months.
Homebuilder sentiment index dips in December
LOS ANGELES — Even a holiday gift from Uncle Sam couldn't brighten the homebuilders' outlook in December.
The National Association of Home Builders said Tuesday its housing market index fell by one point to 16 this month, reflecting concern that job losses and a slow economic recovery will continue to stifle demand for new homes despite the extension of a federal tax credit for buyers.