Nearly One in Four Second-quarter Home Sales a Foreclosure

Nearly One in Four Second-quarter Home Sales a Foreclosure
September 30, 2010, Reuters

Nearly one in every four U.S. homes sold in the second quarter was a deeply discounted foreclosed house, putting the market on pace to work through distressed properties in about three years, RealtyTrac said. Wall Street Journal.  Bloomberg. Los Angeles Times. USA TODAY.


J.P. Morgan Chase to Freeze Foreclosures Over Flawed Paperwork
September 29, 2010, Washington Post

J.P. Morgan Chase, one of the nation's leading banks, announced Wednesday that it will freeze foreclosures in about half the country because of flawed paperwork, a move that Wall Street analysts said will pressure the rest of the industry to follow suit. If other banks adopt the same approach, the foreclosure process in many parts of the country will grind to a halt. The Associated Press said.


Banks Foreclose First, Ask Any Questions Later
September 28, 2010, Bloomberg (Opinion)

There was a time, not long ago, when having a home of your own signaled stability. It was a stake in a community, a place for individuals to come into their own or for families to grow. It was a solemn obligation to a financial institution, a statement of the bank’s faith in you, an investment for old age. So much for that. These days, millions of houses across the country sit empty or shelter owners who can’t or won’t make mortgage payments. The vacancies give lie to the notion of home ownership as a road to stability.


Fitch Begins Review of GMAC
September 29, 2010, Housing Wire

Fitch Ratings is contacting its rated servicers to review internal foreclosure processes after recent problems at GMAC Mortgage will cause higher losses on residential mortgage-backed securities. Last week, GMAC, now Ally Financial, admitted employees signed foreclosure affidavits in 23 states without knowledge of the documents or a notary present. Moody's Investors Service put its servicer rating and billions of dollars in affected RMBS up for review. Several state attorneys general offices have launched investigations.


No-Interest Mortgages? No Chance
September 29, 2010, Wall Street Journal

Imagine financing a home purchase with a no-interest mortgage. You probably never would want to move again. Granted, it is doubtful that you will ever have that luxury. But if rates continue to drop, as some in the mortgage industry suggest they may, mortgage rates could inch in the direction of 0%. The Federal Reserve's recent indication that it is willing to take extraordinary steps to keep the economy growing and continued concerns of deflation may also put pressure on mortgage rates.