A foreclosure fix

A foreclosure fix
June 1, 2010 — Los Angeles Times

Banks foreclosed on almost 200,000 homes in California last year, and this year's toll is expected to be even higher. State lawmakers have tried to encourage banks to do more loan modifications that help both sides, keeping borrowers in their homes while cutting lenders' losses. Yet homeowner advocates say a serious problem remains. Overwhelmed and disorganized, lenders continue to foreclose on borrowers who are in the process of negotiating new loan terms. At a time when the market is flooded with repossessed properties, that's just inexcusable.

More Bank-Owned Homes Likely to Hit the Market
May 28, 2010 — Wall Street Journal

It’s a bit like guessing how many pennies are in a gallon jug at the state fair, but housing analysts keep trying to count how many foreclosed homes banks and mortgage investors own.

The 'Free Rent' Approach: When Homeowners Just Stop Paying their Mortgages
June 1, 2010 — TIME

Strategic mortgage default has "really been a blessing," says one Florida man, who stopped making payments last summer. His mother, who lives a few blocks away, has been in default since the spring of 2008, and says, "the longer I'm in foreclosure, the better." They both pay a lawyer not to actually help them keep their homes in the long run (who cares about that?), but simply to stall the proceedings and buy them more time to stay in their houses—rent- and also mortgage-free.

GSEs to Begin Accepting HAFA Short Sales
June 1, 2010 — DSNews

Fannie Mae and Freddie Mac both issued new guidelines to servicers Tuesday, which allow homeowners with GSE loans to pursue a short sale or deed-in-lieu of foreclosure if they are unable to secure a modification under the government’s foreclosure prevention program.

HAMP Modifications Have Just a 50% Success Rate: Moody's
May 28, 2010 — DSNews

The most recent Home Affordable Modification Program (HAMP) report released by the U.S. Treasury shows “extremely low conversion rates” from trial to permanent modifications, with success just a 50/50 gamble, according to commentary from Moody’s Investors Service.