New Wave of Foreclosures by End of 2010 is Feared

New Wave of Foreclosures by End of 2010 is Feared
February16, 2010, Los Angeles Times

About 4 million U.S. homeowners are 90 days or more delinquent on their loans or in foreclosure proceedings, Moody's Economy.com says. A federal loan modification program is helping a relative few. Experts fear that a new wave of foreclosures will hit this year as prolonged unemployment makes it difficult for millions of homeowners to pay their mortgages -- and many of them aren't likely to get much help from a federal program aimed at keeping them in their houses. Banks participating in the Home Affordable Modification Program, announced a year ago this week by President Obama, have been slow to turn temporarily reduced mortgage payments into permanent ones.

Foreclosure ‘Overhang’ Will Cause Home-Price Decline, S&P Says
February16, 2010, Business Week

Foreclosures will cause U.S. home prices to fall this year as lenders buck federal pressure to modify loans, according to a report from Standard & Poor’s Financial Services. “The mortgage crisis may be far from over,” Diane Westerback, a managing director at the New York-based firm, wrote in today’s report. “The overhang of homes heading toward liquidation suggests more delinquencies and lower home prices are to come.”

U.S. Homebuilder Confidence Rises
February17, 2010, Business Week

Confidence among U.S. homebuilders rose in February to a three-month high, a sign that the housing market is stabilizing amid government support. The National Association of Home Builders/Wells Fargo index of builder confidence increased to 17, higher than anticipated, from 15 the prior month, the Washington-based group said today. Readings below 50 mean most respondents view conditions as poor.

Colorado Bill Would Let Foreclosure Bidders Buy Junior Liens
February16, 2010, Denver Business Journal

Senate Bill 93, a state measure related to Colorado foreclosure law, was to be heard in the Senate Business, Labor and Technology Committee on Monday. The bill, sponsored by Sen. Kevin Lundberg, R-Berthoud, would give the successful bidder for a home at foreclosure auction the right to buy out lesser holders of liens against the property, or junior lienholders, such as those with mechanic’s liens. The junior lienholders would have to accept the payment from the bidder and release the lien, according to the bill.