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.
