http://www.nytimes.com/2010/10/04/business/04mortgage.html?_r=1&hp
There is a big difference between flawed and fraud because you don't own the title.
As some of the nation’s largest lenders have conceded that their foreclosure procedures might have been improperly handled, lawsuits have revealed myriad missteps in crucial documents.
The flawed practices that GMAC Mortgage, JPMorgan Chase and Bank of America have recently begun investigating are so prevalent, lawyers and legal experts say, that additional lenders and loan servicers are likely to halt foreclosure proceedings and may have to reconsider past evictions.
Problems emerging in courts across the nation are varied but all involve documents that must be submitted before foreclosures can proceed legally. Homeowners, lawyers and analysts have been citing such problems for the last few years, but it appears to have reached such intensity recently that banks are beginning to re-examine whether all of the foreclosure papers were prepared properly
Showing posts with label Foreclosures. Show all posts
Showing posts with label Foreclosures. Show all posts
Monday, October 4, 2010
Saturday, October 2, 2010
State Moratorium regarding the 23 states issue
http://docs.google.com/viewer?a=v&q=cache:PAiAxgzKOXAJ:research.stlouisfed.org/publications/review/08/11/Wheelock.pdf+Individual+State+yearly+forclosure+totals+for+the+United+States&hl=en&gl=us&pid=bl&srcid=ADGEESjAqUKra_Bw7Zrc58pjD76wtJCk90a7NgbYER6V-HuUB80bE16iT8YhBR0b4qW7Cs4lRPmrFKW3J9UMb-H2Kl7kniHPCd6wVBTmNrA1rNTwSD8dQioz7PpUhSeCtzAMFu5ZsnKn&sig=AHIEtbQ0Zx3WkSwGy-r4GxKfh18fBU5hHg
This is an outstanding read and answers my question of why only the banks only stopped foreclosures in 23 states, which I think is wrong by the way. According to this paper it's 27.
During the depression the states tried to help the farmers out. They had a very high foreclosure rate.
Note the bold, the you need the FED's permission to read what they had to say, consequently they are blurred out.
I put it off to just another one of those national security secrets that everything falls under.
In other words you don't need to know the information
Check your state to see which category you fall in
Judicial or non-Judicial
The past and present look like they were created from the same template .
David C. Wheelock is an assistant vice president and economist at the Federal Reserve Bank of St. Louis. The author thanks Lee Alston,
Carlos Garriga, and Rajdeep Sengupta for comments on an earlier version of this article. Craig P. Aubuchon provided research assistance.
© 2008, The Federal Reserve Bank of St. Louis. The views expressed in this article are those of the author(s) and do not necessarily reflect the
views of the Federal Reserve System, the Board of Governors, or the regional Federal Reserve Banks. Articles may be reprinted, reproduced,
published, distributed, displayed, and transmitted in their entirety if copyright notice, author name(s), and full citation are included. Abstracts,
synopses, and other derivative works may be made only with prior written permission of the Federal Reserve Bank of St. Louis.
Changing the Rules: State Mortgage Foreclosure Moratoria During the Great Depression
ECONOMIC IMPACT OF
FORECLOSURE MORATORIA
Governments cause both immediate and
long-term effects when they rewrite the terms of
contracts between private parties. The immediate
impact is redistribution of wealth between the
parties of the affected contracts. The temporary
foreclosure moratoria and most other changes in
state mortgage laws enacted during the 1930s
favored borrowers over lenders. These actions
interfered with the rights of lenders to seize col-
lateral pledged by borrowers to guarantee payment
of their mortgages. Several states also enhanced
the rights of borrowers to redeem foreclosed
property and limited the rights of lenders to sue
for deficiency judgments.
One immediate effect of mortgage relief legis-
lation during the Depression was reduced farm
foreclosure rates (Rucker and Alston, 1987).21
This is an outstanding read and answers my question of why only the banks only stopped foreclosures in 23 states, which I think is wrong by the way. According to this paper it's 27.
During the depression the states tried to help the farmers out. They had a very high foreclosure rate.
Note the bold, the you need the FED's permission to read what they had to say, consequently they are blurred out.
I put it off to just another one of those national security secrets that everything falls under.
In other words you don't need to know the information
Check your state to see which category you fall in
Judicial or non-Judicial
The past and present look like they were created from the same template .
David C. Wheelock is an assistant vice president and economist at the Federal Reserve Bank of St. Louis. The author thanks Lee Alston,
Carlos Garriga, and Rajdeep Sengupta for comments on an earlier version of this article. Craig P. Aubuchon provided research assistance.
© 2008, The Federal Reserve Bank of St. Louis. The views expressed in this article are those of the author(s) and do not necessarily reflect the
views of the Federal Reserve System, the Board of Governors, or the regional Federal Reserve Banks. Articles may be reprinted, reproduced,
published, distributed, displayed, and transmitted in their entirety if copyright notice, author name(s), and full citation are included. Abstracts,
synopses, and other derivative works may be made only with prior written permission of the Federal Reserve Bank of St. Louis.
Changing the Rules: State Mortgage Foreclosure Moratoria During the Great Depression
ECONOMIC IMPACT OF
FORECLOSURE MORATORIA
Governments cause both immediate and
long-term effects when they rewrite the terms of
contracts between private parties. The immediate
impact is redistribution of wealth between the
parties of the affected contracts. The temporary
foreclosure moratoria and most other changes in
state mortgage laws enacted during the 1930s
favored borrowers over lenders. These actions
interfered with the rights of lenders to seize col-
lateral pledged by borrowers to guarantee payment
of their mortgages. Several states also enhanced
the rights of borrowers to redeem foreclosed
property and limited the rights of lenders to sue
for deficiency judgments.
One immediate effect of mortgage relief legis-
lation during the Depression was reduced farm
foreclosure rates (Rucker and Alston, 1987).21
Friday, October 1, 2010
APNewsBreak: BofA delays foreclosures in 23 states
http://finance.yahoo.com/news/APNewsBreak-BofA-delays-apf-3343207402.html?x=0&sec=topStories&pos=main&asset=&ccode=
And so, now Bank of America stops their foreclosure is 23 states.
And it's commonly know that MER was standard practice.
So all those millions of foreclosures are now null and void.
Whether your in foreclosure or not if you have bought a house or refinanced your house your Title to, is now involved, unless it's mortgage free.
This has nothing to do with whether you can make the payments or not.
It has to do with the bank you pay your payments to, they don't own your title to the property. They sold it in a CDO and millions of pensions cet... around the world bought them. So the bank doesn't legally own it and what you don't own ,you can't take. It's against the law and punishable by imprisonment.
Freddie and Frannie are also part of this. The government has guaranteed their loans and now the banks are going to be forced to take them back.
The FED is filled to capacity with this very same problem.
A lawyer for the homeowner in the case, James O'Connor of Fitchburg, Mass., said such problems are rampant throughout the industry.
"We have had thousands, maybe hundreds of thousands of foreclosures around the country by entities that did not have the right to foreclose," O'Connor said.
The disclosure comes two days after JPMorgan said it would temporarily stop foreclosing on more than 50,000 homes so it could review documents that might contain errors. Last week, GMAC halted certain evictions and sales of foreclosed homes in 23 states to review those cases after finding procedural errors in some foreclosure affidavits.
Consumer advocates say the problems are widespread across the lending industry.
"The general level of sloppiness is pervasive around the industry," said Diane Thompson, counsel at the National Consumer Law Center.
And so, now Bank of America stops their foreclosure is 23 states.
And it's commonly know that MER was standard practice.
So all those millions of foreclosures are now null and void.
Whether your in foreclosure or not if you have bought a house or refinanced your house your Title to, is now involved, unless it's mortgage free.
This has nothing to do with whether you can make the payments or not.
It has to do with the bank you pay your payments to, they don't own your title to the property. They sold it in a CDO and millions of pensions cet... around the world bought them. So the bank doesn't legally own it and what you don't own ,you can't take. It's against the law and punishable by imprisonment.
Freddie and Frannie are also part of this. The government has guaranteed their loans and now the banks are going to be forced to take them back.
The FED is filled to capacity with this very same problem.
A lawyer for the homeowner in the case, James O'Connor of Fitchburg, Mass., said such problems are rampant throughout the industry.
"We have had thousands, maybe hundreds of thousands of foreclosures around the country by entities that did not have the right to foreclose," O'Connor said.
The disclosure comes two days after JPMorgan said it would temporarily stop foreclosing on more than 50,000 homes so it could review documents that might contain errors. Last week, GMAC halted certain evictions and sales of foreclosed homes in 23 states to review those cases after finding procedural errors in some foreclosure affidavits.
Consumer advocates say the problems are widespread across the lending industry.
"The general level of sloppiness is pervasive around the industry," said Diane Thompson, counsel at the National Consumer Law Center.
Wednesday, August 4, 2010
Foreclosed On—By the U.S.
http://online.wsj.com/article/SB10001424052748704499604575407584128526218.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsForth
Lets all remember what the FED actually is, and that would be a private institution
The Federal Reserve System (12 Fed Res banks) is a private entity - according to the 1913 Federal Reserve Bank Act - owned by its shareholders (national banks). The Chairman is appointed by the US President,and confirmed by the US Senate to give it the sense of being a federal agency, but it most certainly is not.
So who my friends is foreclosing on the trash called assets that Bear Stearns died owning or owing upon as the case actually now presents itself to be?
The Federal Reserve is, NOT the US Government.
That's a point I feel should be made very clear now that the monthly 30 million dollar payments loom large for the acceptance of the responsibility of Bear's blowout.
The FED owes and is responsible for the repayment of the money, which they borrowed supposedly in good faith,from the American taxpayer.
Those CDS's are going to be an extremely hard swallow since they are now seen for what they are, absolutely worthless.
James Currell is struggling to prevent his Minnesota home from being foreclosed. But his lender isn't a bank. It is the U.S. government.
The Federal Reserve Bank of New York is facing the prospect of foreclosing on a number of properties in the coming months, from homes to commercial buildings, a result of a souring mortgage portfolio it took over when it helped bail out Bear Stearns in 2008.
As it deals with delinquent borrowers, a team of New York Fed officials and outside advisers are trying to avoid having the U.S. government, along with local sheriff's departments, seize commercial properties and homes as it copes with falling real-estate values. In the process, the New York Fed is getting a hard lesson in the challenges of mortgage lending.
It is an unprecedented test for the most powerful of 12 regional branches of the Federal Reserve System. In its 96-year history, the Fed hasn't made or controlled loans to U.S. citizens and businesses outside of banking since the 1930s, when it was done on a much smaller scale. Now, under the watchful eye of Congress, the New York Fed must recoup a $29 billion loan secured by the Bear assets.
"For the Fed to come in and foreclose on properties puts it at some reputational and political risk," said Vincent Reinhart, a former senior Fed staffer who is now an economist
Lets all remember what the FED actually is, and that would be a private institution
The Federal Reserve System (12 Fed Res banks) is a private entity - according to the 1913 Federal Reserve Bank Act - owned by its shareholders (national banks). The Chairman is appointed by the US President,and confirmed by the US Senate to give it the sense of being a federal agency, but it most certainly is not.
So who my friends is foreclosing on the trash called assets that Bear Stearns died owning or owing upon as the case actually now presents itself to be?
The Federal Reserve is, NOT the US Government.
That's a point I feel should be made very clear now that the monthly 30 million dollar payments loom large for the acceptance of the responsibility of Bear's blowout.
The FED owes and is responsible for the repayment of the money, which they borrowed supposedly in good faith,from the American taxpayer.
Those CDS's are going to be an extremely hard swallow since they are now seen for what they are, absolutely worthless.
James Currell is struggling to prevent his Minnesota home from being foreclosed. But his lender isn't a bank. It is the U.S. government.
The Federal Reserve Bank of New York is facing the prospect of foreclosing on a number of properties in the coming months, from homes to commercial buildings, a result of a souring mortgage portfolio it took over when it helped bail out Bear Stearns in 2008.
As it deals with delinquent borrowers, a team of New York Fed officials and outside advisers are trying to avoid having the U.S. government, along with local sheriff's departments, seize commercial properties and homes as it copes with falling real-estate values. In the process, the New York Fed is getting a hard lesson in the challenges of mortgage lending.
It is an unprecedented test for the most powerful of 12 regional branches of the Federal Reserve System. In its 96-year history, the Fed hasn't made or controlled loans to U.S. citizens and businesses outside of banking since the 1930s, when it was done on a much smaller scale. Now, under the watchful eye of Congress, the New York Fed must recoup a $29 billion loan secured by the Bear assets.
"For the Fed to come in and foreclose on properties puts it at some reputational and political risk," said Vincent Reinhart, a former senior Fed staffer who is now an economist
Wednesday, July 28, 2010
Supply of Homes Set to Grow
http://online.wsj.com/article/SB10001424052748704700404575391582687553008.html?mod=WSJ_hpp_sections_realestate
Check out the graph on the bottom of the page, there in lies the truth of America's troubles.
It ain't getting any better
Sales of new homes are near 47-year lows, yet the supply of new and existing homes is expected to grow in the months ahead as construction ramps up and a wave of foreclosed homes hits the market.
In June, new-home sales were running at a seasonally adjusted annual rate of 330,000 units, the Commerce Department said Monday. While that was up 23.6% from the all-time low of 267,000 in May, the June figures were the second lowest on record.
LPS Applied Analytics, a firm that tracks mortgage data, said Monday that there were 4.56 million loans in default or in some stage of foreclosure in June, down slightly from May. But the number of new foreclosures initiated on properties backed by Fannie Mae and Freddie Mac increased sharply, rising 21% in June from May.
The rise in foreclosures on Fannie and Freddie properties reflects the failure of many troubled borrowers to receive permanent loan modifications plans, analysts said. Having exhausted all options to rescue their homes, many troubled borrowers may now be giving up.
."Looking at the numbers you're seeing about this pickup in foreclosure starts, it's hard to see how it's not going to translate into elevated levels of [properties taken over by banks] down the road," said Herb Blecher, an analyst at LPS.
Check out the graph on the bottom of the page, there in lies the truth of America's troubles.
It ain't getting any better
Sales of new homes are near 47-year lows, yet the supply of new and existing homes is expected to grow in the months ahead as construction ramps up and a wave of foreclosed homes hits the market.
In June, new-home sales were running at a seasonally adjusted annual rate of 330,000 units, the Commerce Department said Monday. While that was up 23.6% from the all-time low of 267,000 in May, the June figures were the second lowest on record.
LPS Applied Analytics, a firm that tracks mortgage data, said Monday that there were 4.56 million loans in default or in some stage of foreclosure in June, down slightly from May. But the number of new foreclosures initiated on properties backed by Fannie Mae and Freddie Mac increased sharply, rising 21% in June from May.
The rise in foreclosures on Fannie and Freddie properties reflects the failure of many troubled borrowers to receive permanent loan modifications plans, analysts said. Having exhausted all options to rescue their homes, many troubled borrowers may now be giving up.
."Looking at the numbers you're seeing about this pickup in foreclosure starts, it's hard to see how it's not going to translate into elevated levels of [properties taken over by banks] down the road," said Herb Blecher, an analyst at LPS.
Thursday, April 15, 2010
Foreclosure rates surge, biggest jump in 5 years
http://finance.yahoo.com/news/Foreclosure-rates-surge-apf-35024429.html?x=0&sec=topStories&pos=2&asset=&ccode=
Aren't you glad we saved the banks though? What slays me is we gave them all that money and never even looked into their books to see if they qualified for the loan and had the capacity to pay it back. You know that little perk that wasn't afforded to the homeowners.
A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.
RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.
More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when RealtyTrac began reporting the data, the firm said.
"We're right now on pace to see more than 1 million bank repossessions this year," said Rick Sharga, a RealtyTrac senior vice president.
Foreclosures began to ease last year as banks came under pressure from the Obama administration to modify home loans for troubled borrowers. In addition, some states enacted foreclosure moratoriums in hopes of giving homeowners behind in payments time to catch up. And in many cases, banks have had trouble coping with how to handle the glut of problem loans.
Aren't you glad we saved the banks though? What slays me is we gave them all that money and never even looked into their books to see if they qualified for the loan and had the capacity to pay it back. You know that little perk that wasn't afforded to the homeowners.
A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.
RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.
More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when RealtyTrac began reporting the data, the firm said.
"We're right now on pace to see more than 1 million bank repossessions this year," said Rick Sharga, a RealtyTrac senior vice president.
Foreclosures began to ease last year as banks came under pressure from the Obama administration to modify home loans for troubled borrowers. In addition, some states enacted foreclosure moratoriums in hopes of giving homeowners behind in payments time to catch up. And in many cases, banks have had trouble coping with how to handle the glut of problem loans.
Thursday, March 11, 2010
Foreclosure rates up by smallest amount in 4 years
http://finance.yahoo.com/news/Foreclosure-rates-up-by-apf-1830270269.html?x=0&sec=topStories&pos=2&asset=&ccode=
The foreclosure crisis isn't over, but the pace of growth may finally be slowing down.
RealtyTrac Inc. said Thursday that the number of U.S. households facing foreclosure in February grew 6 percent from the year-ago level, the smallest annual increase in four years.
More than 308,000 households, or one in every 418 homes, received a foreclosure-related notice, the Irvine, Calif.-based foreclosure listings company reported. That was down more than 2 percent from January
Still, fears remain about the hundreds of thousands of homeowners who are still being evaluated for help under loan modification programs. Many analysts say most of those borrowers will eventually lose their homes, sparking a new round of foreclosures later this year.
It's premature to declare victory just yet," said Rick Sharga, a RealtyTrac senior vice president for RealtyTrac. He did, however, allow that, "If this is the beginning of a slowdown in growth rates, that would be a good thing."
,
Banks repossessed nearly 79,000 homes last month, down 10 percent from January but still up 6 percent from February 2009.
The foreclosure crisis isn't over, but the pace of growth may finally be slowing down.
RealtyTrac Inc. said Thursday that the number of U.S. households facing foreclosure in February grew 6 percent from the year-ago level, the smallest annual increase in four years.
More than 308,000 households, or one in every 418 homes, received a foreclosure-related notice, the Irvine, Calif.-based foreclosure listings company reported. That was down more than 2 percent from January
Still, fears remain about the hundreds of thousands of homeowners who are still being evaluated for help under loan modification programs. Many analysts say most of those borrowers will eventually lose their homes, sparking a new round of foreclosures later this year.
It's premature to declare victory just yet," said Rick Sharga, a RealtyTrac senior vice president for RealtyTrac. He did, however, allow that, "If this is the beginning of a slowdown in growth rates, that would be a good thing."
,
Banks repossessed nearly 79,000 homes last month, down 10 percent from January but still up 6 percent from February 2009.
Monday, January 4, 2010
HAFA-foreclosure warning dead ahead
http://market-ticker.denninger.net/archives/1811-HAFA-Foreclosure-Warning-Dead-Ahead!.html
This is how your government works for you......By sticking a knife in your back.
Under the Radar - a bit - came this ditty at the end of November. Coupled with the "unlimited" Fannie and Freddie "credit line", this may presage a veritable collapse in house prices this coming spring and summer - along with a massive "dump" of inventory.
"HAMP", the Treasury's program to "prevent" foreclosures, did not originally appear to have a "stick." Well, here's the stick folks - for those who cannot qualify for a modification, or who "blow it" while on a trial program and simply don't get a permanent change servicers are in fact required to offer short sale or "deed in lieu" alternatives when they make sense.
Got that? Servicers participating in HAMP must follow the guidelines set forth in this Supplemental Directive.
No choices here folks - if you're part of HAMP, you are required to offer expedited and unified procedures for short sales and, optionally, "deed in lieu" programs.
This goes into effect in April, although servicers can start offering these programs earlier.
Come the spring selling season you're going to see the inventory of homes that were "HAMPd" and failed for whatever reason hit the market.
This is not a trivial number of houses - there are close to 750,000 homes currently under trial modifications, and only a tiny number of them - something like 30,000 - have converted to permanent payment changes.
This is how your government works for you......By sticking a knife in your back.
Under the Radar - a bit - came this ditty at the end of November. Coupled with the "unlimited" Fannie and Freddie "credit line", this may presage a veritable collapse in house prices this coming spring and summer - along with a massive "dump" of inventory.
"HAMP", the Treasury's program to "prevent" foreclosures, did not originally appear to have a "stick." Well, here's the stick folks - for those who cannot qualify for a modification, or who "blow it" while on a trial program and simply don't get a permanent change servicers are in fact required to offer short sale or "deed in lieu" alternatives when they make sense.
Got that? Servicers participating in HAMP must follow the guidelines set forth in this Supplemental Directive.
No choices here folks - if you're part of HAMP, you are required to offer expedited and unified procedures for short sales and, optionally, "deed in lieu" programs.
This goes into effect in April, although servicers can start offering these programs earlier.
Come the spring selling season you're going to see the inventory of homes that were "HAMPd" and failed for whatever reason hit the market.
This is not a trivial number of houses - there are close to 750,000 homes currently under trial modifications, and only a tiny number of them - something like 30,000 - have converted to permanent payment changes.
Wednesday, December 16, 2009
Citi to suspend foreclosures for 30 days
http://finance.yahoo.com/news/Citi-to-suspend-foreclosures-apf-548845306.html?x=0&sec=topStories&pos=1&asset=&ccode=
That's real white of them isn't it?
Citigroup Inc. will suspend foreclosures and evictions for 30 days in a temporary break for about 4,000 borrowers during the holiday season.
The New York-based bank said Thursday the suspension will run from Friday through Jan. 17. It applies only to borrowers whose loans are owned by Citi. Borrowers who make payments to Citi but whose loans are owned by other investors are out of luck.
"We want our borrowers to have a much less stressful time, to spend their time with their families during the holidays as opposed to worrying about their homes," Sanjiv Das, head of the company's mortgage division, said in an interview.
http://market-ticker.denninger.net/archives/1747-Citibank-Dissembling-Again-Foreclosures.html
Citigroup said the suspension will affect about 2,000 borrowers scheduled for foreclosure and another 2,000 that were to receive foreclosure notifications in the next 30 days.
"We hope that with this suspension we can make the holidays a little less stressful for our customers who are going through a very difficult time We are doing this so as to avoid having to recognize the loss on properties that are deeply underwater, thereby cooking our books until the quarter is reported so we don't have to declare insolvency," said Sanjiv Das, president and CEO of Citigroup's mortgage division, in a statement.
There - fixed it for 'ya.
That's real white of them isn't it?
Citigroup Inc. will suspend foreclosures and evictions for 30 days in a temporary break for about 4,000 borrowers during the holiday season.
The New York-based bank said Thursday the suspension will run from Friday through Jan. 17. It applies only to borrowers whose loans are owned by Citi. Borrowers who make payments to Citi but whose loans are owned by other investors are out of luck.
"We want our borrowers to have a much less stressful time, to spend their time with their families during the holidays as opposed to worrying about their homes," Sanjiv Das, head of the company's mortgage division, said in an interview.
http://market-ticker.denninger.net/archives/1747-Citibank-Dissembling-Again-Foreclosures.html
Citigroup said the suspension will affect about 2,000 borrowers scheduled for foreclosure and another 2,000 that were to receive foreclosure notifications in the next 30 days.
"We hope that with this suspension we can make the holidays a little less stressful for our customers who are going through a very difficult time We are doing this so as to avoid having to recognize the loss on properties that are deeply underwater, thereby cooking our books until the quarter is reported so we don't have to declare insolvency," said Sanjiv Das, president and CEO of Citigroup's mortgage division, in a statement.
There - fixed it for 'ya.
Thursday, November 5, 2009
Fannie Mae to Rent Foreclosed Homes Back to Borrowers
Fannie Mae to Rent Foreclosed Homes Back to Borrowers
--------------------------------------------------------------------------------
http://online.wsj.com/article/SB1257...DLTopStor ies
How to hide the evidence of an over saturated housing market and make the lie to the people that things are turning for the better seem credible in easy lesson. Hey there might be a bright side to this though. Fannie will generate a little income and might not have to have that taxpayer handout it so desperately needs.
Fannie Mae plans to allow homeowners facing foreclosure to stay in their homes and rent them for up to one year as part of the latest effort to help troubled borrowers while keeping a glut of foreclosed properties from hitting the housing market.
The Deed for Lease Program, which Fannie plans to roll out on Thursday, will offer borrowers who fail to complete or don't qualify for a loan modification or other workout to deed their property to the lender in exchange for a lease. Borrowers-turned-tenants will be able to sign leases of up to 12 months and will pay market rents, which in most cases are lower than the cost of mortgage payments.
Fannie Mae wouldn't say how many homeowners it expects will take advantage of the program. The company acquired 57,000 properties through foreclosure during the first half of the year, bringing its total real-estate owned inventory to 63,000 properties valued at $6 billion. The rental program will allow Fannie to hold inventory off of already saturated housing markets and makes a bet that the housing market will be stronger one year from now.
--------------------------------------------------------------------------------
http://online.wsj.com/article/SB1257...DLTopStor ies
How to hide the evidence of an over saturated housing market and make the lie to the people that things are turning for the better seem credible in easy lesson. Hey there might be a bright side to this though. Fannie will generate a little income and might not have to have that taxpayer handout it so desperately needs.
Fannie Mae plans to allow homeowners facing foreclosure to stay in their homes and rent them for up to one year as part of the latest effort to help troubled borrowers while keeping a glut of foreclosed properties from hitting the housing market.
The Deed for Lease Program, which Fannie plans to roll out on Thursday, will offer borrowers who fail to complete or don't qualify for a loan modification or other workout to deed their property to the lender in exchange for a lease. Borrowers-turned-tenants will be able to sign leases of up to 12 months and will pay market rents, which in most cases are lower than the cost of mortgage payments.
Fannie Mae wouldn't say how many homeowners it expects will take advantage of the program. The company acquired 57,000 properties through foreclosure during the first half of the year, bringing its total real-estate owned inventory to 63,000 properties valued at $6 billion. The rental program will allow Fannie to hold inventory off of already saturated housing markets and makes a bet that the housing market will be stronger one year from now.
Thursday, October 15, 2009
Foreclosures: 'Worst three months of all time'
http://money.cnn.com/2009/10/15/real_estate/foreclosure_crisis_deepens/?postversion=2009101507
Despite signs of broader economic recovery, number of foreclosure filings hit a record high in the third quarter - a sign the plague is still spreading
Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.
"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.
During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.
Despite signs of broader economic recovery, number of foreclosure filings hit a record high in the third quarter - a sign the plague is still spreading
Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter, according to a report issued Thursday.
"They were the worst three months of all time," said Rick Sharga, spokesman for RealtyTrac, an online marketer of foreclosed homes.
During that time, 937,840 homes received a foreclosure letter -- whether a default notice, auction notice or bank repossession, the RealtyTrac report said. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the third quarter of 2008.
Thursday, September 24, 2009
LANDMARK DECISION PROMISES MASSIVE RELIEF FOR HOMEOWNERS AND TROUBLE FOR BANKS
http://www.webofdebt.com/articles/mers.php
A landmark ruling in a recent Kansas Supreme Court case may have given millions of distressed homeowners the legal wedge they need to avoid foreclosure. In Landmark National Bank v. Kesler, 2009 Kan. LEXIS 834, the Kansas Supreme Court held that a nominee company called MERS has no right or standing to bring an action for foreclosure. MERS is an acronym for Mortgage Electronic Registration Systems, a private company that registers mortgages electronically and tracks changes in ownership. The significance of the holding is that if MERS has no standing to foreclose, then nobody has standing to foreclose – on 60 million mortgages. That is the number of American mortgages currently reported to be held by MERS. Over half of all new U.S. residential mortgage loans are registered with MERS and recorded in its name. Holdings of the Kansas Supreme Court are not binding on the rest of the country, but they are dicta of which other courts take note; and the reasoning behind the decision is sound.
Eliminating the “Straw Man” Shielding Lenders and Investors from Liability
The development of “electronic” mortgages managed by MERS went hand in hand with the “securitization” of mortgage loans – chopping them into pieces and selling them off to investors. In the heyday of mortgage securitizations, before investors got wise to their risks, lenders would slice up loans, bundle them into “financial products” called “collateralized debt obligations” (CDOs), ostensibly insure them against default by wrapping them in derivatives called “credit default swaps,” and sell them to pension funds, municipal funds, foreign investment funds, and so forth. There were many secured parties, and the pieces kept changing hands; but MERS supposedly kept track of all these changes electronically. MERS would register and record mortgage loans in its name, and it would bring foreclosure actions in its name. MERS not only facilitated the rapid turnover of mortgages and mortgage-backed securities, but it has served as a sort of “corporate shield” that protects investors from claims by borrowers concerning predatory lending practices. California attorney Timothy McCandless describes the problem like this:
“[MERS] has reduced transparency
A landmark ruling in a recent Kansas Supreme Court case may have given millions of distressed homeowners the legal wedge they need to avoid foreclosure. In Landmark National Bank v. Kesler, 2009 Kan. LEXIS 834, the Kansas Supreme Court held that a nominee company called MERS has no right or standing to bring an action for foreclosure. MERS is an acronym for Mortgage Electronic Registration Systems, a private company that registers mortgages electronically and tracks changes in ownership. The significance of the holding is that if MERS has no standing to foreclose, then nobody has standing to foreclose – on 60 million mortgages. That is the number of American mortgages currently reported to be held by MERS. Over half of all new U.S. residential mortgage loans are registered with MERS and recorded in its name. Holdings of the Kansas Supreme Court are not binding on the rest of the country, but they are dicta of which other courts take note; and the reasoning behind the decision is sound.
Eliminating the “Straw Man” Shielding Lenders and Investors from Liability
The development of “electronic” mortgages managed by MERS went hand in hand with the “securitization” of mortgage loans – chopping them into pieces and selling them off to investors. In the heyday of mortgage securitizations, before investors got wise to their risks, lenders would slice up loans, bundle them into “financial products” called “collateralized debt obligations” (CDOs), ostensibly insure them against default by wrapping them in derivatives called “credit default swaps,” and sell them to pension funds, municipal funds, foreign investment funds, and so forth. There were many secured parties, and the pieces kept changing hands; but MERS supposedly kept track of all these changes electronically. MERS would register and record mortgage loans in its name, and it would bring foreclosure actions in its name. MERS not only facilitated the rapid turnover of mortgages and mortgage-backed securities, but it has served as a sort of “corporate shield” that protects investors from claims by borrowers concerning predatory lending practices. California attorney Timothy McCandless describes the problem like this:
“[MERS] has reduced transparency
Thursday, August 20, 2009
What rebound? Foreclosures rise as jobs and income drop
http://www.mcclatchydc.com/100/story/74106.html?storylink=omni_popular
"The rise in prime delinquencies . . . is a clear indication that employment is the driver of mortgage performance, with the worst performance coming in those areas that are combining jobs losses with large drops in home values like California and Florida," Jay Brinkmann, the group's chief economist, told McClatchy. "We won't see a turnaround in delinquencies until we see improvements in employment, most likely the middle of next year."
Forty-one states notched a rise in their foreclosure rate for prime fixed-rate mortgages in the second quarter, and prime fixed-rate loans accounted for one in three foreclosure starts. A year ago they were one in five starts.
Prime fixed-rate loans are 65 percent of all U.S. mortgages outstanding, but more than 32 percent of foreclosure starts from April to June. They also constitute 27 percent of all U.S. loans now in foreclosure, up from 17 percent in the comparable 2008 period.
The rising delinquency and foreclosure rate for prime loans creates new problems for the Obama administration
"The rise in prime delinquencies . . . is a clear indication that employment is the driver of mortgage performance, with the worst performance coming in those areas that are combining jobs losses with large drops in home values like California and Florida," Jay Brinkmann, the group's chief economist, told McClatchy. "We won't see a turnaround in delinquencies until we see improvements in employment, most likely the middle of next year."
Forty-one states notched a rise in their foreclosure rate for prime fixed-rate mortgages in the second quarter, and prime fixed-rate loans accounted for one in three foreclosure starts. A year ago they were one in five starts.
Prime fixed-rate loans are 65 percent of all U.S. mortgages outstanding, but more than 32 percent of foreclosure starts from April to June. They also constitute 27 percent of all U.S. loans now in foreclosure, up from 17 percent in the comparable 2008 period.
The rising delinquency and foreclosure rate for prime loans creates new problems for the Obama administration
Monday, June 29, 2009
Paper Avalanche Buries Plan to Stem Foreclosures
http://finance.yahoo.com/loans/article/107247/paper-avalanche-buries-plan-to-stem-foreclosures.html?mod=loans-home&sec=topStories&pos=8&asset=&ccode=
See it for what it is just another scam to appease public reaction for their outrage
on what can only be seen as a massive manipulation scheme created by the financial banking system and their cronies to satiate their need to feed their greed.
Paper Avalanche Buries Plan to Stem Foreclosures
by Peter S. Goodman
Monday, June 29, 2009
provided by
Somewhere on earth, there must be a more difficult task than this: persuading American mortgage companies to lower payments for homeowners who can no longer afford their loans. But as Karina Montenegro struggles to accomplish this feat for a troubled borrower, she strains to imagine a more futile pursuit.
Ms. Montenegro, an intern at a local company that seeks loan modifications, dials Washington Mutual to check on the status of an application for a homeowner whose income has plummeted. She endures a Muzak-scored purgatory while on hold. Syrupy-voiced customer service representatives chide her for landing in the wrong department. She learns that the documents her company sent in have simply vanished — for the third time since November.
"I don't know what happened," says a customer service officer who identifies himself as Chris. "I don't know if there was a glitch in the system, whether it was transferred from one call center to the other."
Think of the documents as being part of a pile massing inside the bank, Chris suggests. "This pile is not going to be moved forward at any point in time."
Ms. Montenegro and her colleagues suffer these sorts of excruciating exchanges all day long. It is a potent indication of the difficulties afflicting the $75 billion taxpayer-financed program created by the Obama administration in an effort to avoid foreclosure for as many as four million distressed homeowners.
Under the plan, the government offers mortgage companies $1,000 for each loan they agree to modify, then another $1,000 a year for up to three years.
Hanging in the balance is more than the fate of individual homeowners. The administration portrays its mortgage program as a crucial piece of its broader effort to restore vigor to the economy. If the effort fails, foreclosures will continue to surge and home prices will probably keep falling, sowing fresh losses in the financial system and threatening to crimp credit anew for businesses and households.
Yet in the four months since the Treasury Department announced the program, millions of new homeowners have slipped into delinquency and foreclosure. For now, progress is constrained by the limited capacities of mortgage servicing companies, said Michael S. Barr, the assistant Treasury secretary for financial institutions. He offered the first signs of the administration's impatience with the institutions that control home loans.
"They need to do a much better job on the basic management
See it for what it is just another scam to appease public reaction for their outrage
on what can only be seen as a massive manipulation scheme created by the financial banking system and their cronies to satiate their need to feed their greed.
Paper Avalanche Buries Plan to Stem Foreclosures
by Peter S. Goodman
Monday, June 29, 2009
provided by
Somewhere on earth, there must be a more difficult task than this: persuading American mortgage companies to lower payments for homeowners who can no longer afford their loans. But as Karina Montenegro struggles to accomplish this feat for a troubled borrower, she strains to imagine a more futile pursuit.
Ms. Montenegro, an intern at a local company that seeks loan modifications, dials Washington Mutual to check on the status of an application for a homeowner whose income has plummeted. She endures a Muzak-scored purgatory while on hold. Syrupy-voiced customer service representatives chide her for landing in the wrong department. She learns that the documents her company sent in have simply vanished — for the third time since November.
"I don't know what happened," says a customer service officer who identifies himself as Chris. "I don't know if there was a glitch in the system, whether it was transferred from one call center to the other."
Think of the documents as being part of a pile massing inside the bank, Chris suggests. "This pile is not going to be moved forward at any point in time."
Ms. Montenegro and her colleagues suffer these sorts of excruciating exchanges all day long. It is a potent indication of the difficulties afflicting the $75 billion taxpayer-financed program created by the Obama administration in an effort to avoid foreclosure for as many as four million distressed homeowners.
Under the plan, the government offers mortgage companies $1,000 for each loan they agree to modify, then another $1,000 a year for up to three years.
Hanging in the balance is more than the fate of individual homeowners. The administration portrays its mortgage program as a crucial piece of its broader effort to restore vigor to the economy. If the effort fails, foreclosures will continue to surge and home prices will probably keep falling, sowing fresh losses in the financial system and threatening to crimp credit anew for businesses and households.
Yet in the four months since the Treasury Department announced the program, millions of new homeowners have slipped into delinquency and foreclosure. For now, progress is constrained by the limited capacities of mortgage servicing companies, said Michael S. Barr, the assistant Treasury secretary for financial institutions. He offered the first signs of the administration's impatience with the institutions that control home loans.
"They need to do a much better job on the basic management
Wednesday, May 13, 2009
RealtyTrac: April foreclosures rise 32 percent
http://finance.yahoo.com/news/RealtyTrac-April-foreclosures-apf-15227840.html?sec=topStories&pos=5&asset=&ccode=
The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year, with Nevada, Florida and California showing the highest rates, according to data released Wednesday. Ohio was in the top 10.
More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac Inc. said. That means one in every 374 U.S. housing units received a foreclosure filing last month, the highest monthly rate since the Irvine, Calif.-based foreclosure listing firm began its report in January 2005.
April was the second straight month with more than 300,000 households receiving a foreclosure filing, as the number of borrowers with mortgage troubles failed to abate.
The
The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year, with Nevada, Florida and California showing the highest rates, according to data released Wednesday. Ohio was in the top 10.
More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac Inc. said. That means one in every 374 U.S. housing units received a foreclosure filing last month, the highest monthly rate since the Irvine, Calif.-based foreclosure listing firm began its report in January 2005.
April was the second straight month with more than 300,000 households receiving a foreclosure filing, as the number of borrowers with mortgage troubles failed to abate.
The
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